Articles tagged with Finance
A new MSU study suggests that the US Securities and Exchange Commission (SEC) should intervene in the stock market only when external financial disruptions make it difficult for large shareholders to fend off speculators. The study finds that such interventions are rare and should be temporary.
A new study by Matthew Cain shows that despite biases, investment banks provide important information for the M&A advisory process. The study analyzes over 500 fairness opinion valuations and finds they can be useful for boards of directors in evaluating merger proposals.
A study by Penn State researchers found that people who view negative political ads perceive the ads as having a greater influence on others than themselves. The experiment showed that both supporters and opponents of a presidential candidate believe the ads affect others more than they are affected by them.
A recent study by Oregon State University reveals that small companies in the US stock market are often disproportionately affected during international financial crises. Investors tend to flee from smaller stocks and shift their holdings towards larger, safer corporations, resulting in significant losses for smaller companies.
Alan Greenspan argues that exceptional government activism in the past two years has hindered long-term recovery and led to abnormally high unemployment. He suggests that a more balanced approach would have resulted in lower unemployment rates.
Researchers at the University of Missouri are calling for reform of teacher retirement benefit systems due to huge unfunded pension liabilities. The systems have important effects on school staffing and finance, with some estimates suggesting unfunded liabilities of one trillion dollars or more.
Researchers analyzed data from online football gamblers and found distinct changes in market odds reflecting match events. Gamblers exhibited long-range volatility correlations and traded more on outcomes with small odds, suggesting a preference for favored teams.
Research by University of Illinois finance professors Murillo Campello and Heitor Almeida finds that small firms face higher costs of financing when economic conditions worsen. They often re-invest profits before paying off creditors, leading to increased debt and potential financial distress.
A new study found that female executives are more likely to leave their jobs voluntarily and involuntarily than their male counterparts. Women account for 7.2% of departures, compared to 3.8% for men, with higher voluntary rates (4.3% vs 2.8%) and involuntary rates (2.9% vs 0.9%). The study suggests that women may leave due to domestic...
The report highlights the need for stronger institutional capacity and increased transparency to address climate finance bottlenecks. Development cooperation is crucial to ensure poor countries receive climate change funding on favorable terms.
A University of Illinois study found that firms with heavy long-term debt that came due during the recent credit crisis slashed investment more than three times as much as companies whose paybacks dodged the meltdown. This can have a ripple effect on the overall economy, leading to reduced employment and profits in the future.
A new study finds that most stock repurchase programs are solid and well-intentioned, but a small number are rooted in attempts by companies to mislead the market. Firms announce buybacks when they perceive shares are undervalued, sparking bargain hunting and driving up prices.
A recent study found that bankruptcy rates vary widely across states due to differences in policy, including wage garnishment laws and Chapter 13 filings. Broad demographic factors such as age and income also influence filing rates.
A University of Missouri study found that decreasing stock options for CEOs after earnings restatements leads to fewer risky investments and improved operating performance. This reduction in compensation incentives helps firms avoid excessive risk-taking and achieve better bottom lines.
High-profile meeting at UN General Assembly tackles financing issues surrounding MDG 4 and 5; authors emphasize need for innovative financing to reduce maternal and child mortality. A child dies every 3 seconds, a mother every minute, the statement reads.
Researchers found that short selling activity is widespread across large and small NYSE stocks, accounting for at least 12.9% of trading volume. Short sellers can identify overvalued stocks and profit by anticipating price declines, indicating they are extremely well-informed.
The banking crisis is attributed to unrealistic expectations of high returns on equity and poor risk management, according to economist Paul J.J. Welfens. The crisis will persist if regulatory systems are not improved and sustainable investment strategies are not promoted.
Research by Aneel Keswani and David Stolin found that investors consistently choose funds with better future performance. The study employed British data from 1991 to 2000 and U.S. data during the same period, revealing a smart money effect in both markets.
A recent study published in Review of Accounting and Finance suggests that disaggregated bank earnings are more useful for investment decisions than aggregated earnings. Disaggregated earnings better predict next period earnings and stock prices, revealing their potential to improve credit and financing decisions.
A new corporate reorganization paradigm promises to preserve value in financially distressed companies by efficiently transferring assets to their most efficient users. This market-driven process, facilitated by active investors like hedge funds and private equity firms, aims to minimize the impact of financial distress on businesses.
The EU, US, and Iran are engaged in negotiations over Iran's nuclear program, with significant implications for regional stability and global leadership. Dr. Amuzegar argues that hidden agendas and domestic political considerations are complicating the talks.
Companies like IBM are shifting pension investment risks to employees through defined contribution plans, but Robert C. Merton argues that without corporate oversight, these plans may not provide long-term security for investors. Merton emphasizes the importance of corporate responsibility in ensuring the financial stability of DC plans.
Researchers found that about one-quarter of stock prices rise above the initial bid price, suggesting investors are savvy in pricing target firm stocks. The study also showed that market speculation spreads can predict deal duration and final prices.
Experts recommend seven potential options to raise funds for development, including global environmental taxes and private donations. The policies aim to increase external flows of finance to the poorest countries by 2015 to meet MDG targets.
A new study by Ohio State University researchers found that US legislators who successfully pass bills receive more campaign contributions from political action committees. The study analyzed the relationship between legislative effectiveness and PAC funding, revealing a significant positive correlation.
A two-year study found that mixed-gender investment clubs earn higher returns than same-sex clubs, thanks to the combination of different approaches and motivations. The research suggests that men and women bring unique perspectives to investing, leading to more diversified portfolios and better financial decisions.
Polish parliamentarians have significant influence on legislative process due to their right to submit proposals. The Sejm's independence is crucial for its role in stabilizing relations with the presidency and government. Strengthening internal coherence and discipline is necessary for governing parties to maintain this independence.
A recent Ohio State University study analyzed 1,387 households' spending habits, savings, and investments to determine their readiness for retirement. The research found that 48% of Americans would struggle financially, citing a lack of savings and high spending levels as major contributors.
A new study reveals cultural differences in risk-taking between Chinese and American citizens using proverbs. Chinese proverbs generally advocate greater risk-taking than American proverbs, reflecting the collectivist culture of China, where citizens know their network of friends and family will help them in a crisis.
A new study suggests that Social Security financing would be relatively unaffected by the largest expected mortality improvements, with less than 1% difference in tax rates projected. However, experts acknowledge a high degree of uncertainty about mortality improvement rates, which could add to the challenges faced by retirement planners.
A study published in the New England Journal of Medicine found a strong association between financial conflicts of interest and authors' positions on the safety of calcium-channel blockers. Researchers analyzed 70 articles and found that supportive authors were more likely to have financial relationships with pharmaceutical manufacture...