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The closed‐end fund puzzle is one of the most famous unsolved issues in financial economics and as such, over time, it has raised the interest of many authors also in the real estate field. The aim of this paper is both to determine whether the effect of leverage on net asset value (NAV) discount is biased by an accounting effect as well as to investigate the determinants of NAV discount by means of the “rational” approach.

The hypotheses are tested by using both the traditional formula as well as a new, unlevered one to calculate the NAV discount. A best subset analysis is carried out to ascertain the better set of determinants.

The main result of the analysis is that the influence of leverage on the NAV discount is biased by an accounting effect while other factors are highly significant.

This paper is a starting point for additional research on some of the identified factors as well as on similar samples for which a wider set of data is available.

The homogeneity of the Italian real estate investment funds sample, which is not biased by any fiscal effect, and the use of an unlevered formula to calculate NAV discount are important factors when trying to understand the determinants of NAV discount.

Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.

Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.

Parallel imports are authentic products that challenge those sold through authorized dealers. Such imports are fast becoming popular, especially in Asia. Authorized dealers need to find ways to combat against parallel imports. One such means is to first understand consumer perceptions of parallel imports. A survey among respondents from an Asian country, Singapore, showed that perception and not demography or past product experience influence purchase intention of parallel imports. Perception of beneficial and image properties, more so than perception of physical properties, influenced purchase intention. The factors influencing the magnitude of discount expected from parallel importers were different from those for purchase intention. Women expected higher discounts than men, while an inverse relationship was observed for income. The unique properties for each product category also influenced purchase intention and expected discount. Managerial implications are discussed together with directions for future research.

Using administrative, longitudinal data on felony arrests in Florida, we exploit the discontinuous increase in the punitiveness of criminal sanctions at 18 to estimate the deterrence effect of incarceration. Our analysis suggests a 2% decline in the log-odds of offending at 18, with standard errors ruling out declines of 11% or more. We interpret these magnitudes using a stochastic dynamic extension of Becker’s (1968) model of criminal behavior. Calibrating the model to match key empirical moments, we conclude that deterrence elasticities with respect to sentence lengths are no more negative than − 0 . 13 for young offenders.

The purpose of this chapter is to outline new methodological developments in business valuation, with particular attention to how those developments are being used in litigation involving lost profits and the value of operating businesses. In addition to methodological developments, the chapter also includes a discussion of recent legal developments, particularly selected cases that affect the use and standards for business valuation techniques within litigation settings. Finally, the chapter includes a mathematical appendix.

This paper aims to use a mixed method (qualitative and quantitative) approach to exploring the effectiveness of price bundling.

The study is based on a concurrent, two‐studies design where quantitative and qualitative data are both collected (concurrently or sequentially) and analyzed separately. The first study is based on a nested experimental design, and the second study is based on in‐depth interviews. The setting for the study is frequently purchased products, specifically teeth‐whitening products. The bundled items are: teeth whitener, toothpaste, mouthwash, toothbrush and dental floss. Various forms of discounts are tested to assess the effectiveness of bundles. While bundling has been investigated in marketing settings, the focus has been limited to consumer durables using quantitative scales. The experimental study is followed by a qualitative investigation in order to add further insight into the consumer's choice of a bundle. This mixed method approach provides rich narrative that adds important insights about the decision process and offers suggestions for advertising development.

The findings do not support a bundling approach. Although the consumers perceive higher value of the bundle, the attitudes, intentions and narratives support promoting these items individually rather than as a bundle.

Caution is advised in extrapolating the results beyond the issues investigated in the study.

The findings suggest caution for marketers in designing product bundles, positioning, and promotion strategies.

There are three major contributions of this study. First, the current literature suggests price bundling is an effective strategy. This study suggests that for certain products bundling may not be effective. Second, the past literature has not investigated the influence of type of discount on effectiveness of a bundle. Third, most studies in price bundling are quantitative in nature. This study uses a mixed method approach. The quantitative study is followed by a qualitative study to add further insights that will help understand consumer motivations behind the preferences.

This paper focuses upon the role of factoring in small business finance and the profile of firms using it. The analysis refers to a comprehensive survey of UK providers of factoring services. This identifies the relatively focused provision of factoring in terms of size, age, sector and stage of growth of the client base (ie businesses) using this financial service. For those using factoring, the service may provide a valuable improvement to cash flow and working capital position and can possibly contribute to small business growth and development. In its present format, however, factoring is not the potential financial solution for all firms across all industries.

Are share markets too volatile? While it is difficult to ignore share market volatility it is important to determine whether volatility is excessive. This paper replicates the Shiller (1981) test as well as applying standard time series analysis to annual Australian stock market data for the period 1883 to 1999. While Shiller’s test suggests the possibility of excess volatility, time series analysis identifies a long‐run relationship between share market value and dividends, consistent with the share market reverting to its fundamental discounted cash flow value over time.

The purpose of this paper is to examine what the significant contributions to the intergenerational equity and social discount rate (SDR) literature have been over recent decades and presents what policy progress has been made as a result.

The approach has been that of a literature survey.

The paper observes that only when academics agree, however, they can influence policy, as one major policy change for SDR demonstrates.

Further research can analyse the application of SDRs in other jurisdictions.

A formal process of demonstrating academic consensus and its application to policy is recommended.

SDRs are extremely important for government decision making. Spreading knowledge about how SDRs are created and used is therefore of great social importance.

This paper could usefully be read by government officials, as well as academics, worldwide. It is a contribution to knowledge not just in its subject matter but also in analysing the frontier between academic knowledge and progress on the one hand, and government decision making on the other.