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1 – 10 of over 51000Laleh Samarbakhsh and Meet Shah
This research aims to examine hedge funds’ performance, risk and flow before and after the implementation of the Stop Trading on Congressional Knowledge (STOCK) Act.
Abstract
Purpose
This research aims to examine hedge funds’ performance, risk and flow before and after the implementation of the Stop Trading on Congressional Knowledge (STOCK) Act.
Design/methodology/approach
This paper includes the use of different factor models to highlight the performance and risk of hedge funds before and after the implementation of the STOCK Act. Hedge fund holdings are retrieved from Thomson Reuters Lipper Hedge Fund Database (TASS).
Findings
This study finds significant differences before and after the implementation of the STOCK Act. The results for the entire sample period indicate that hedge funds suffered lower-alpha, standard deviation and idiosyncratic risk after the implementation of the STOCK Act.
Originality/value
The paper’s originality and value lie in addressing the relationship gap between the STOCK Act and hedge fund performance.
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Hyacinth Eme Ichoku, John E. Ataguba and William M. Fonta
The subsidization of artemisinin combination therapy (ACT) at supranational level to avoid undermining the private distribution system in sub‐Saharan Africa and elsewhere, as…
Abstract
Purpose
The subsidization of artemisinin combination therapy (ACT) at supranational level to avoid undermining the private distribution system in sub‐Saharan Africa and elsewhere, as advocated by Committee on the Economics of Antimalarial Drugs board on Global Health, requires the appraisal of the economic behaviour of relevant private agents in these regions, in order to assess their potential influence on access to ACT. The purpose of this paper is to analyze the economic behaviour of informal medicine retailers and how this effects access to ACT, using data generated from a primary survey in southeast Nigeria.
Design/methodology/approach
A field survey was carried out which included health providers and households. A market price survey was undertaken to generate primary data, using closed and semi‐open questionnaires, and there were focus group discussions in two south‐eastern states in Nigeria. A standard two‐stage method was used for the design of the survey.
Findings
The study demonstrates that the economic behaviour of informal medicine affects market prices of ACT, facilitates information diffusion, improves availability and acceptability dimensions of access to ACT. However, their clinical practices are weak and require policy interventions.
Originality/value
This paper brings to the fore the influence of economic behaviour of retail agents in the medical market, which needs to be taken into account when considering alternative distributional channels for ACT, if the WHO goal of universal access in malaria‐endemic regions is to be achieved.
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This paper surveys the historical development of financial services regulations in the UK, especially the social conditions and power relations that have shaped the evolution of…
Abstract
This paper surveys the historical development of financial services regulations in the UK, especially the social conditions and power relations that have shaped the evolution of British financial markets. The analysis specifically focuses upon the role of special interest groups and how they have influenced regulatory innovation.
Lixiang Wang, Wendi Hou and Weian Li
The aim of this study is to investigate the role of Corporate Social Responsibility (CSR) in assisting firms in their response to public emergency crises under the integrated view…
Abstract
Purpose
The aim of this study is to investigate the role of Corporate Social Responsibility (CSR) in assisting firms in their response to public emergency crises under the integrated view of government emergency response.
Design/methodology/approach
Using event study and survival analysis method, the authors examine whether CSR can act as a stock price stabilizer for companies from China by splitting the stock price fluctuations into two phases – CSR price insurance, which decrease the shock on stock prices during the emergency crisis, and CSR price recovery, which helps stock prices rebound faster during the postcrisis phase.
Findings
The authors’ empirical results confirm the stabilizer role of CSR during crisis and that effective government response can strengthen such effect. Furthermore, the authors examine the different aspects of the government’s response and the impact of multiple waves of public emergency.
Originality/value
This study provides empirical evidence on the topic of CSR and the government’s response to public emergency under the emerging context.
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Rebecca Abraham and Charles W. Harrington
The purpose of the study was to provide empirical support for the Miller model. The paper proposes the use of the ratio of individual to institutional holdings as a proxy for…
Abstract
Purpose
The purpose of the study was to provide empirical support for the Miller model. The paper proposes the use of the ratio of individual to institutional holdings as a proxy for heterogeneous expectations of security returns.
Design/methodology/approach
Both bivariate t‐tests and regression analysis were used to test whether optimistic valuations existed for stocks with high levels of institutional ownership. Data on open short positions were collected and hypothesized to decrease with the level of institutional holdings. High ratio stocks were compared to glamor stocks and low ratio stocks to value stocks.
Findings
For stocks with higher institutional ownership, optimistic valuations dominated resulting in significantly lower future security returns than for stocks with higher individual ownership thereby supporting the Miller model. The results were not sensitive to variations in size, momentum, and book‐to‐market ratios. Further support for the Miller model was provided by the finding that open short positions decreased with the level of institutional holdings. High ratio stocks resembled glamor stocks and low ratio stocks corresponded to value stocks.
Research limitations/implications
This study is limited to the ultra‐short term period of one month after portfolio creation. Future research should extend it to the three‐to‐five year time horizon.
Practical implications
Ultra‐short term investors should hold value stocks, intermediate three‐12 month investors should hold glamor stocks, and long‐term investors should hold value stocks.
Originality/value
The finding of a new proxy for heterogeneous expectations. The paper also establishes a new methodology for testing the Miller model.
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To test the Miller Price Optimism Model using a new proxy for heterogenous expectations and to examine if high differential stocks behave like glamour stocks and low differential…
Abstract
Purpose
To test the Miller Price Optimism Model using a new proxy for heterogenous expectations and to examine if high differential stocks behave like glamour stocks and low differential stocks behave like value stocks.
Design/methodology/approach
Whisper/analyst forecast differentials were measured for a sample of stocks, combined into portfolios and held for one month. If the Miller model was supported, high differential stocks were expected to have lower portfolio returns than low differential stocks due to the greater divergence between optimistic whisper forecasts and rational analysts consensus forecasts.
Findings
High differential quintiles had significantly lower future returns than low differential quintiles supporting the Miller model. High differential stocks resembled glamour stocks while low differential stocks behaved like value stocks.
Research limitations/implications
These results pertain to the ultra‐short time horizon of two months prior to the earnings announcement. Future research should replicate this study for a longer 3‐12 month time horizon.
Practical implications
Ultra short‐term investors should hold glamour stocks and long term investors should hold value stocks. Rising volatility suggests that investors should define the time horizon for holding assets.
Originality/value
It is one of only two studies that directly uses earnings forecasts as a proxy for heterogenous expectations. It adds to the sparse literature on whisper forecasts. It may be used by academicians studying price optimism effects and institutional investors following stock returns during earnings announcements.
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Kevin C.H. Chiang and Ming‐Long Lee
Existing studies provide conflicting results regarding whether real estate investment trusts (REITs) effectively optimize and diversify institutional portfolios. Based on the…
Abstract
Existing studies provide conflicting results regarding whether real estate investment trusts (REITs) effectively optimize and diversify institutional portfolios. Based on the style analysis of Sharpe, we extend Liang and McIntosh’s study with a more complete set of asset classes over a longer sample period. We provide additional evidence suggesting that practicing analysts should include REITs as an asset class to optimize their portfolios. Specifically, our results show that the price behavior of REITs is unique and cannot be satisfactorily duplicated by combining equity, fixed‐income securities, and unsecuritized real estate. The time series of the styles on REITs indicates that it is difficult to ex ante produce returns on REITs without diversifying into REITs.
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Product intervention power is introduced under the markets in financial instruments regulation (MiFIR) and packaged retail and insurance-based investment products (PRIIPs…
Abstract
Product intervention power is introduced under the markets in financial instruments regulation (MiFIR) and packaged retail and insurance-based investment products (PRIIPs) Regulation for all EU Member States and gives National Competent Authorities (NCAs), European Securities and Markets Authority (ESMA), and European Banking Authority (EBA) powers to monitor financial products (and services) under their supervision and to “temporarily” prohibit or restrict the marketing, distribution, or sale of certain financial instruments, or to intervene in relation to certain financial activities or practice. This extends the supervisory measures defined in MiFID II to any PRIIPs (including insurance-based investment products “IBI products”) that would not otherwise fall under the scope of MiFID II. Product intervention power is given to the NCAs, and in order to use power, it requires to take the specifics of the individual case into account and a series of conditions, criteria, and factors to fulfill. Moreover, ESMA and the EBA have a type of control function and ability to override national regulators on product. The aim of product intervention powers is to ensure strengthening of investor protection, but given the potential significant impact of this power, calls into question of possibility to delay innovation and slow down product developments on the capital market.
This paper provided an overview of supervisory measures on product intervention, that is, scope of the product intervention power, criteria, factors, and risks which have to be taken into consideration when using this regulator’s tool.
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