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1 – 4 of 4Raj S. Dhankar and Devesh Shankar
The purpose of this paper is to discuss the relevance and evolution of adaptive markets hypothesis (AMH) that has gained traction in the recent years, as it provides a dynamic…
Abstract
Purpose
The purpose of this paper is to discuss the relevance and evolution of adaptive markets hypothesis (AMH) that has gained traction in the recent years, as it provides a dynamic perspective to the concept of informational efficiency.
Design/methodology/approach
This paper discusses several issues related to the concept of informationally efficient markets that have indicated efficient market hypothesis to be an incomplete portrayal of stock market behavior.
Findings
The authors find that a strict and perpetual adherence to informational efficiency is highly unlikely, and AMH provides a much more plausible description of the behavior of stock markets.
Originality/value
The authors provide a description of studies that examine the testable implications of AMH.
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Paulo Vitor Souza de Souza, César Augusto Tibúrcio Silva and Fabiano Guasti Lima
The authors aim to verify the indicators that influence the efficiency reported by Brazilian listed financial companies.
Abstract
Purpose
The authors aim to verify the indicators that influence the efficiency reported by Brazilian listed financial companies.
Design/methodology/approach
The sample consists of companies in the financial segment that have shares traded in B3, comprising nine institutions from 2000 to 2018 were selected. The authors adopted the regression model with unbalanced panel data to analyze the data. The dependent is the efficiency, which the authors calculated using Hurst Exponent. As independent variables, we used the sector-specific indicators: earnings management, banking resilience, management efficiency, and profitability. The authors controlled the models by size and type of control.
Findings
The findings indicate that the efficiency of financial companies' securities is affected by aspects related to management, resilience, and efficiency in administration. The lower the earnings management, the greater the banking resilience, the efficiency in the management of resources, and the efficiency of stock prices of these companies. These results show that efficiency is affected by intrinsic factors of the entities, corroborating the hypothesis that markets adapt, among others, to institutional factors.
Originality/value
Many users of financial institutions understand whether their stock prices reflect the information provided by accounting. The findings are original because they provide evidence that institutional factors affect the efficiency of companies in the Brazilian financial segment.
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The purpose of this study is to estimate an empirical model for new office space development starts, based on the theoretical treatment of urban growth. The study introduces a new…
Abstract
Purpose
The purpose of this study is to estimate an empirical model for new office space development starts, based on the theoretical treatment of urban growth. The study introduces a new parameter, namely, office space-usage pattern, to the office space development equation and tests whether developers respond to non-price measures in deciding to commence new developments.
Design/methodology/approach
The study first introduces a co-integration approach based on an error correction model to test for long-run relations and short-run dynamics of new office space development. A multivariate regression model is then introduced to identify significant determinants that influence office development starts. The study uses annual data over a time span of 30 years.
Findings
Estimated results provide strong evidence that the newly introduced parameter exerts a positive impact on new office space development. It suggests that if the average floor space per employee changes by one percentage point, new office development starts would change by 1.5 percentage point, indicating even a marginal change in floor-space usage per employee (SPE) would have a significant impact on new office space development. Empirical estimates also suggest a strong response of office development starts to the lagged land supply and office space stock.
Research limitations/implications
The paper raises the concern about the importance of non-price measures of the supply-side of the office market. There is scope to address the research questions using better data sets. It is also possible to model the supply adjustment process more dynamically in an error correction framework.
Practical implications
The findings would suggest that non-price measures, such as space-usage pattern, need to be taken into account when planning and estimating future office space needs. This finding provides valuable insight for our current knowledge on factors affecting new office supply.
Originality/value
This is the first study to introduce office floor space usage as a determinant of office development starts in an urban growth conceptual framework for the Hong Kong office market.
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Peter J. Murray and Philip J. Kitchen
This paper provides an introduction to three key concepts derived from chaos theory, with practical examples of each, which the authors believe can offer marketers an enriched…
Abstract
This paper provides an introduction to three key concepts derived from chaos theory, with practical examples of each, which the authors believe can offer marketers an enriched understanding of the process by which they set out to construct an alternative future. A central tenet of chaos theory is that the future is inherently unpredictable in detail, but can be predicted in broad terms: what appears to be random (e.g. the unexpected results of a new marketing strategy) may turn out to be determined by a phenomenon known as an attractor. Marketing managers are setting out to “construct a future”. The broad outcomes of their actions may be predictable in general terms, but the path by which their organisations reach those outcomes, and the detailed stages through which they pass, are not – however sound their conventional marketing planning may be. Practising marketing managers may understandably have reservations about transferring concepts which have not yet been fully tested in the natural sciences, where they have their origin, into marketing planning. Nevertheless, many are not in fact unique to chaos theory. Therefore, they are used here as a metaphor, to encourage managers to take a different view of the strategic issues facing their organisations, and to question the conventional wisdom that executive action can be taken on the basis of extensive rational analysis, in the expectation that it will achieve predetermined objectives. This paper thereby offers novel insights into the process of redefining markets and the opportunities that they provide. The attractor metaphor holds out a number of challenges for innovative marketers, as well as some cautionary lessons.
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