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1 – 10 of over 6000This paper provides a quantitative review of the literature on the repercussions of idiosyncratic information on firms’ cost of equity (CoE) capital. In total, I review the…
Abstract
This paper provides a quantitative review of the literature on the repercussions of idiosyncratic information on firms’ cost of equity (CoE) capital. In total, I review the results of 113 unique studies examining the CoE effects of information Quantity, Precision and Asymmetry. My results suggest that the association between firm-specific information and CoE is subject to moderate effects. First, the link between Quantity and CoE is moderated by disclosure types and country-level factors in that firms in comparatively weakly regulated countries tend to enjoy up to four times greater CoE benefits from more expansive disclosure—depending on the type of disclosure—than firms in strongly regulated markets. Second, a negative relationship between Precision and CoE is only significant in studies using non-accrual quality proxies for Precision and risk factor-based (RFB)/valuation model-based (VMB) proxies for CoE. Third, almost all VMB studies confirm the positive association between Asymmetry and CoE, but there is notable variation in the conclusions reached when ex post CoE measurers are used.
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Yan He, Ruixiang Jiang, Yanchu Wang and Hongquan Zhu
We form portfolios based on return and liquidity and examine the effects of liquidity and other risk factors on asset pricing in the Chinese stock market. Our results show that…
Abstract
We form portfolios based on return and liquidity and examine the effects of liquidity and other risk factors on asset pricing in the Chinese stock market. Our results show that the past loser-and-illiquid stock portfolios tend to outperform the past winner-and-liquid stock portfolios in the 1–12 months holding period. The excess return is significantly associated with the market-wide liquidity factor even when we control the three Fama-French and momentum factors. Cross-sectionally, the liquidity beta significantly affects the excess return even with control of other risk betas and other traditional liquidity proxies.
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This chapter presents the survey of selected linear and mixed integer programming multi-objective portfolio optimization. The definitions of selected percentile risk measures are…
Abstract
This chapter presents the survey of selected linear and mixed integer programming multi-objective portfolio optimization. The definitions of selected percentile risk measures are presented. Some contrasts and similarities of the different types of portfolio formulations are drawn out. The survey of multi-criteria methods devoted to portfolio optimization such as weighting approach, lexicographic approach, and reference point method is also presented. This survey presents the nature of the multi-objective portfolio problems focuses on a compromise between the construction of objectives, constraints, and decision variables in a portfolio and the problem complexity of the implemented mathematical models. There is always a trade-off between computational time and the size of an input data, as well as the type of mathematical programming formulation with linear and/or mixed integer variables.
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A reconsideration of some Austrian work in public finance analysisthat is based on a positive theory of the state and its relationshipwith the market economy is offered. The…
Abstract
A reconsideration of some Austrian work in public finance analysis that is based on a positive theory of the state and its relationship with the market economy is offered. The contributions of some prominent Austrian economists are considered, and how they relate to contemporary thinking in public finance. The two central paradigms of the tax state and entrepreneurship are explored.
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John Tsalikis, Marta Ortiz‐Buonafina and Michael S. LaTour
Assesses the effect of an international business person′s accent onGuatemalan subjects′ perception of the business person′s effectiveness,credibility, competence, friendliness, as…
Abstract
Assesses the effect of an international business person′s accent on Guatemalan subjects′ perception of the business person′s effectiveness, credibility, competence, friendliness, as well as the Guatemalan subject′s intentions to buy. Graduate students at a Guatemalan university listened to tape recordings of three presenters speaking Guatemalan Spanish and three presenters speaking Spanish with a foreign accent. The findings suggest that, for the Guatemalan audience, a sales pitch in Guatemalan Spanish evoked more favourable judgements on all measured dimensions than the same sales pitch in foreign accented Spanish. Females, however, evaluated the Guatemalan Spanish presenters more positively and evaluated the foreign accented presenters more negatively than their male counterparts.
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Wayne Ferson, Darren Kisgen and Tyler Henry
We evaluate the performance of fixed income mutual funds using stochastic discount factors motivated by continuous-time term structure models. Time-aggregation of these models for…
Abstract
We evaluate the performance of fixed income mutual funds using stochastic discount factors motivated by continuous-time term structure models. Time-aggregation of these models for discrete returns generates new empirical “factors,” and these factors contribute significant explanatory power to the models. We provide a conditional performance evaluation for US fixed income mutual funds, conditioning on a variety of discrete ex-ante characterizations of the states of the economy. During 1985–1999 we find that fixed income funds return less on average than passive benchmarks that do not pay expenses, but not in all economic states. Fixed income funds typically do poorly when short-term interest rates or industrial capacity utilization rates are high, and offer higher returns when quality-related credit spreads are high. We find more heterogeneity across fund styles than across characteristics-based fund groups. Mortgage funds underperform a GNMA index in all economic states. These excess returns are reduced, and typically become insignificant, when we adjust for risk using the models.
Jasmina Ilicic and Stacey M. Brennan
Consumers often use various cues such as health stars and nutrition claims on product packaging to draw inferences regarding healthfulness. However, much less is known regarding…
Abstract
Purpose
Consumers often use various cues such as health stars and nutrition claims on product packaging to draw inferences regarding healthfulness. However, much less is known regarding the role of brand names in consumer decisions around healthfulness. The purpose of this study is to introduce angelic branding as a brand naming strategy that may act as a supernatural agent benevolence (i.e. loving, kind and merciful) prime that leads consumers to perceive that the brand’s products are healthful.
Design/methodology/approach
Study 1 examines the effect of angelic brand names on brand healthfulness perceptions. Study 2 investigates the mediating role of brand virtuousness perceptions on the relationship between angelic branding and brand healthfulness perceptions and the downstream consequences on purchase intention. Study 3 explores the moderating role of authoritarian supernatural agent belief (i.e. angry, vindictive and punishing) on the relationship between angelic branding and brand virtuousness perceptions, and subsequent brand healthfulness perceptions and purchase intention.
Findings
The results of this study demonstrate that angelic branding results in healthfulness perceptions for a healthy product (i.e. vitamins; Study 1a), an unhealthy product (i.e. cookies; Study 1b; eliminating perceptual fluency as a potential alternative explanation for the phenomenon) and across different product categories (i.e. surface spray; Study 1c). The results from Study 2 find that angelic brand names prime brand healthfulness perceptions because of the activation of brand virtuousness perceptions (not brand quality perceptions; eliminating a general halo effect as a potential alternative explanation for the phenomenon). The results of Study 3 show that strong belief in authoritarian supernatural agents attenuates the angelic brand name–brand healthfulness priming effect.
Research limitations/implications
This research is limited, as it only considers angelic brand naming and not any other benevolence cues in brand logos, such as halos and angel wings. This research is also limited in that it only considers healthfulness perceptions drawn from English angelic brand name cues and from participants within the USA and the UK.
Practical implications
This study has important implications for brand managers in the development of new brand names. Angelic brand naming is suggested as a strategy for brand managers to prime perceptions of brand virtuousness and brand healthfulness and to influence consumer behavior. However, brand managers are cautioned against the use of this brand naming strategy if it is intended to mislead or deceive consumers, resulting in detrimental effects on their health.
Originality/value
This research makes a unique and novel contribution to the literature in brand names on consumer decision-making. Angelic branding is introduced as a brand naming strategy that can act as a supernatural agent religious prime to influence perceptions of brand virtuousness, brand healthfulness and consumer behavioral intentions (i.e. purchase intention).
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