Guest editorial

Citation

Yu, S. and Lord, R. (2010), "Guest editorial", Managerial Finance, Vol. 36 No. 8. https://doi.org/10.1108/mf.2010.00936haa.001

Guest editorial

Article Type: Guest editorial From: Managerial Finance, Volume 36, Issue 8.

Dear Readers,

Federation of Business Disciples (FED) consists of ten professional associations. These associations are in the field of accounting, business communication, business information, case research, decision science, economics, finance, international business, management, and marketing. Southwestern Finance Association (SWFA) is one of these organizations under the umbrella of FED. It is also affiliated with the prestigious finance journal – Journal of Financial Research.

The program chair of the 2009 Annual Meeting of the Southern Finance Association (Dr Lalatendu Misra) organized numerous presentation sessions, panel discussions, and workshops. This meeting was held between February 22 and February 28 in Oklahoma City, Oklahoma. This meeting offered McGraw-Hill distinguished paper in Finance, AAII Best Paper Award, SWFA Best Paper in Corporate Finance, SWFA Best Paper in International Finance, SWFA Best Paper in Investment, and Outstanding Educator Award.

More than 150 papers were presented at the 2009 Annual Meeting of the SWFA. Of these, 25 finalists were selected for consideration for this publication. Out of these 25 papers, four were selected for publication in this special issue of Managerial Finance. The final selection was made in a double-blind peer-review process, and each paper was reviewed by at least two referees.

Our issue opens with the letter from the President of SWFA. Lalatendu provides the historical aspect of the organization. This is followed by the AAII Best Paper by Kubota and Takehara. They investigate the best conditional asset pricing model to explain the abnormal returns for the firms listed in Tokyo Stock Exchange. They find that the five-factor model is a better model than the Fama and French model and other alternative models. Furthermore, they conclude that the turnover ratio and the size can consistently predict Jensen's alphas in the conditional five-factor model.

Whitworth and Zhang show how the recent capital gains affect ex-dividend stock pricing. They confirm that accrued gains reduce the magnitude of the ex-day effect, increasing the price drop ratio (P/D) and reducing ex-day returns. The observed effect of recent price performance is stronger for higher-yield stocks, and that share turnover is usually lower for stocks with greater gains.

Hull, Kwak and Walker assess the impact of insider ownership decreases on stock returns for firms undergoing seasoned equity offerings (SEOs). Their result is in contrary to the signaling theory. They discover a superior market response for both short-run and long-run post-SEO tests after a significant decrease in insider ownership.

We conclude this issue with Williams' and Tse's study. Their research examines the impact of the 2008 Securities and Exchange Commission short-selling ban on financial firms. They find considerable evidence that this ban will have negative impact on the private information provision in these short-restricted equities.

We hope that these articles contribute significantly to research in their respective areas, and that they lead to the formulation of productive new avenues of research. Last but not least, we would like to take this opportunity to express our sincere gratitude to the referees who spent enormous amount of time to make this issue possible. Their in-depth and unbiased reviews have greatly enhanced the quality of this issue.

Sincerely,

Susana Yu and Richard LordSchool of Business, Montclair State University, Montclair, New Jersey, USA