Suchergebnisse

PurposeTo 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/approachWhisper/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.FindingsHigh 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/implicationsThese 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 implicationsUltra 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/valueIt 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.

Compares the values underlying the behaviour of a sample of 87 US, 56 Jamaican, 42 Bahamian, 106 Colombian, and 12 Israeli managers and professional staff. Refers to literature defining individualism and collectivism, uncertainty avoidance, power distance, and masculinity/femininity; as well as literature establishing these values as instrumental or terminal. Hypothesizes that each country's respondents will record different instrumental values, with the US respondents being ambitious, independent, intellectual and logical (vertically individualist); the Colombian, Jamaican and Bahamians being ambitious, cheerful, forgiving, helpful, loving, obedient and polite; and the Israelis also valuing the latter six qualities. Describes the methodology used and data analysis. Indicates expected results from the findings, other than the Jamaicans and Bahamians were found to value ambition and independence more highly than hypothesized, and the Israelis valued love and obedience but not cheerfulness and forgiveness. Discusses the implications of the findings in the light of the high failure rate of expatriate assignments.

This study is an empirical investigation of receptivity to expatriate assignment in culturally similar and dissimilar environments. The theoretical underpinnings of the study emerge from a model of the expatriate adjustment process which views the determinants as anticipatory adjustment variables antecedent to actual adjustment. Vertical individualism, career distance and corporate career policy along with role clarity and economic development as moderators were found to significantly explain willingness to relocate to culturally similar environments. Economic development, corporate family policy and career distance were significant predictors of mobility to culturally dissimilar environments. The proposed model for culturally similar environments substantially improves explanatory power over an existing model. Implications of the study in conjunction with predictors from the domestic mobility and international adjustment literature are discussed.

This study is an extension of an etic‐emic analysis of the individualism‐collectivism construct at the sociopsychological level to an organizational context. At the first level of comparison, strong and weak etics were extracted to permit comparability of values. At the second level, emic elements were produced to provide a basis of intercultural comparisons. Purely individualistic, purely collectivist and multidimensional factors emerged for the ten nations under consideration.

Purpose
– This paper aims to propose a method of forecasting the level of informed trading at merger announcements by permitting liquidity traders to adjust their trading based upon signals from informed traders. Informed traders typically take advantage of their knowledge of forthcoming mergers by trading heavily at announcement. For cash mergers, they respond to a positive signal by purchasing stock, and for stock mergers, they respond to a negative signal by selling stock. In response, exchanges (market makers) set wider spreads (charge higher transaction fees) for informed buyers. Uninformed traders are subject to such excessive fees unless they can accurately predict the period during which such fees are charged.


Design/methodology/approach
– This paper proposes a technique by which uninformed traders may make predictions by creating a vector autoregressive framework that links informed and liquidity trading through price changes.


Findings
– For cash mergers, transaction fees remained excessive for days −1 to +1. For stock mergers, fees remained high on days −1 to +1, started declining on days 2 and 3, and vanished on days 4 and 5.


Research limitations/implications
– Most theoretical models of informed trading have viewed informed trading and liquidity trading as tangentially linked. This study finds a direct link between these two trading activities.


Practical implications
– Uninformed traders may wish to limit their trading until after day +1 for both types of mergers.


Originality/value
– This paper defines the time period during which transactions costs for traders are at the maximum level. Short sellers have more information about the direction of stock movements and may sell during days of informed selling set forth by this study and repurchase stock afterwards.

Acculturation profiles based on the self‐oriented, others‐oriented, and perceptual dimensions of acculturative adjustment were derived for MNC employees of American, Canadian, Indian, Japanese, Latin American, Carribean and Nigerian origin. Our finding of significant, target‐specific, intercultural differences is of paramount importance in delineating areas of predeparture expatriate training and development.

Purpose
The purpose of this paper is to investigate IPO performance. At announcement, the impact of purchases by informed traders on stock returns and uninformed traders on volatility were assessed. In the post-IPO period, returns were expected to be driven by firms with high returns on equity and the implementation of growth strategies. Return on equity was evaluated further in terms of whether it had a direct effect or was instrumented by volatility, cash flow, profit margin or revenue growth.


Design/methodology/approach
All IPOs announced in 2009-2014 were used. Measures were created to demarcate growth firms from risk-averse firms and firms with highly volatile cash flows from their counterparts with cash flows of lesser volatility. Event studies were used to measure abnormal return and abnormal volume, while multiple regressions tested the influence of predictors on abnormal returns, volatility and holding period return. Instruments of return on equity were also assessed.


Findings
The offer volume of informed traders significantly explained announcement-day returns, while the offer volume of uninformed traders explained the increase in volatility of IPO stock. The ability to capitalize on growth opportunities and increase shareholder wealth through higher return on equity significantly predicted holding period returns. Return on equity, was explained by volatility, cash flow to assets and profit margin.


Originality/value
The data are highly current with 2014 IPOs being used. The paper clearly distinguishes between fleeting announcement-day returns driven by informed traders and long-term holding period returns in a departure from the prevailing practice of measuring long-term post-IPO performance with abnormal returns. Finally, the paper creates subjective measures of volatility and growth strategies.

The purpose of this paper is to measure the impact of internal and external corporate governance mechanisms on the financial performance of banks in the under-researched Middle Eastern and North African (MENA) region during the COVID-19 pandemic period. Bank annual reports, the Orbis Bank Focus database, and World Bank reports were used to collect both financial and non-financial information on the banking sector, followed by fixed effects regressions and two-stage least squares. Results showed that the corporate governance measures of presence of independent members on the board of directors, high ownership concentration, lack of political pressure on board members, and strong legal protection, had positive effects on bank financial performance. Corporate governance mechanisms, such as performance-based compensation, the presence of women on boards, moderate size of the board, and anti-takeover mechanisms had no significant impact on bank performance during the crisis period. An effective internal and external corporate governance mechanism could improve the financial performance of banks in MENA countries in times of pandemics and crises.