Recently added articles from Journal of Economics and Finance:
The J-Curve: Evidence from commodity trade between Canada and the U.S.
Jul 01, 2008; ... Abstract Several studies in the literature have tried to assess the impact of real depreciation of the Canadian dollar on the Canadian trade balance. They have either relied on the trade data between Canada and the rest of the world or between Canada and her major trading partners. In ...
The retention of CEOs that make poor acquisitions
Jul 01, 2008; ... Abstract Does the failure to replace CEOs following a bad takeover represent a cost-effective strategy or a failure of boards of directors and the market? We study 104 white knight contests to examine why poorly performing firms retain their CEOs. We find the majority are poor performers ...
Applying intervention analysis to financial performance data: The case of US airlines and September 11th
Jul 01, 2008; ... Abstract Using intervention analysis I assess the effect of the September 11 terrorist attack on the performance of the US airline industry. The estimated initial effect supports the US federal government decision to provide a $5 billion cash compensation to the airlines. However, the ...
Short-cuts in issuance decisions and subsequent small firm performance
Jul 01, 2008; ... Abstract This paper examines the subsequent change in performance characteristics of companies that make security issuance choices consistent with "following the herd." It extends the literature on decision heuristics (i.e., decision short-cuts) by exploring the outcome of mimicking ...
Noise trading and autocorrelation interactions in the foreign exchange market: Evidence from developed and emerging economies
Jul 01, 2008; ... Abstract This paper seeks to empirically determine whether feedback trading strategies result in stabilization or destabilization in the foreign exchange market and if such strategies are a distinctive characteristic of an emerging economy or they are a common element to both developed ...
The long-run performance of diversifying firms
Jul 01, 2008; ... Abstract The corporate diversification literature presents a puzzle. Short-horizon event studies report positive abnormal returns around the announcement of a diversifying event, while studies that examine diversified firms find evidence that diversified firms are worth less than ...
Interest rate and bank stock returns asymmetry: Evidence from U.S. banks
Apr 01, 2008; ... Abstract We use the multivariate extension of Exponential Generalized Autoregressive Conditionally Heteroscedastic (EGARCH) of Nelson, Econometrica, 59: 347-370, 1991 to test for spillover effects and examine the extent of asymmetries between short- and long-term interest rates and ...
A macroeconomic analysis of foreign assets and foreign liabilities
Apr 01, 2008; ... Abstract Although an increase in foreign assets and a decrease in foreign liabilities both increase a nation's net foreign assets (NFA), they have alternative macroeconomic transmission mechanisms: while an increase in foreign assets is expansionary, the effect of a decrease in foreign ...
Incorporating correlation regimes in an integrated stressed risk modeling process
Apr 01, 2008; ... Abstract The practice of using stress tests to complement Value at Risk (VaR) estimates suffers from some limitations such as the lack of coherence between a statistical risk measure and a subjective one. On the other hand there is a wide consensus that using the same correlation matrix ...
Potential targets: An analysis of stock price reactions to acquisition program announcements
Apr 01, 2008; ... Abstract Stockholders of potential targets experience a statistically significant wealth gain of 0.59% over the 3-day window surrounding the acquisition program announcement. Potential targets are defined as those firms that subsequently receive bids. Using alternative definitions, such ...
The determinants and survival of reverse mergers vs IPOs
Apr 01, 2008; ... Abstract This study examines the motivation for using a reverse merger (RM) rather than an IPO to take a private firm public and analyzes the survival of RMs and IPOs in the aftermarket. Private firms using the RM technique are smaller, younger, and have poorer ex ante performance on ...
Smoking prevalence in the United States: Differences across socioeconomic groups
Apr 01, 2008; ... Abstract This paper uses recent US state-level data to examine smoking behavior across four population groups divided by age, literacy, income and ethnicity. Another contribution lies in the consideration of various smoking control policies and the full costs of smoking. Overall, the ...
Pricing behavior of exchange traded funds
Jan 01, 2008; ... Abstract We attempt to determine whether characteristics found to be effective indicators of individual stock price performance are effective indicators of exchange traded fund (ETF) price performance. Specifically, we test the performance of investing strategies based on separately ...
Duration dependence in US business cycles: An analysis using the modulated power law process
Jan 01, 2008; ... Abstract The modulated power law process is used to analyze the duration dependence in US business cycles. The model makes less restricting assumptions than traditional models do and measures both the local and global performance of business cycles. The results indicate evidence of ...
Day trading and stock price volatility
Jan 01, 2008; ... Abstract When an investor buys and sells the same stock on the same day, he is said to have made a day trade. Using the trading records of Finnish traders, this paper examines whether day trading is related to volatility of stock prices. I find a strong positive time-series relation ...
HOW USEFUL ARE SIGNALS? A MICRO-STRUCTURE ANALYSIS
Oct 01, 2007; ... Abstract We analyze how the market processes a signaling event by studying a sample of self-tender offers, events often viewed as signals of firm value. By examining changes in the degree of informed trading, we find asymmetric information costs fall at announcement, remain low ...
ENHANCING MANAGERIAL INCENTIVES AND VALUE CREATION: EVIDENCE FROM CORPORATE SPINOFFS
Oct 01, 2007; ... Abstract We study corporate spinoffs with changes in CEO compensation to examine how spinoffs affect managerial incentive compensation and whether the changes in managerial compensation can explain the value enhancement and operating performance improvements that occur following ...
WHY DO COMPANIES CHOOSE TO GO IPOS? NEW RESULTS USING DATA FROM TAIWAN
Oct 01, 2007; ... Abstract We examine the determinants of IPOs in Taiwan for the period 1989 to 2000. The regulations in Taiwan permit us to identify firms that met IPO requirements but chose not to go public, allowing for comparisons of firms that choose IPOs and those do not. We find strong evidence ...
OWNERSHIP STRUCTURE AND GOLDEN PARACHUTES: EVIDENCE OF CREDIBLE COMMITMENT OR INCENTIVE ALIGNMENT?
Oct 01, 2007; ... Abstract Using a sample of S & P 500 firms, we find that golden parachutes are associated with concentrated external ownership, less concentrated internal ownership, and non-Delaware incorporation. We find little support that concentrated external owners use golden parachutes as ...
RECENT PERSPECTIVES IN THE ECONOMICS OF THE ARTS
Oct 01, 2007; ... This special section of the Journal of Economics and Finance focuses on current research in the economics of the arts and culture. Humankind has been engaged in the production of art and cultural artifacts for thousands of years, as a short visit to any museum of natural history will readily ...