The Accuracy of Profit Forecasts and their Roles and Associations with IPO Firm Valuations

China's recent economic reforms include the corporatization and listing of formerly state-owned enterprises. In order to sell shares to both domestic and foreign investors, IPOs have to overcome significant asymmetric information problems. Prospectuses for new issues in China contain forecasts of corporate profits for the next year and these forecasts can be used by investors to value companies and to make investment decisions. The study sets out to assess the accuracy of these forecasts and hence the credibility that can be attached to them. In addition to calculating various measures of accuracy and forecast superiority, we also examine the bias and rationality of the forecasts. The results show that profit forecasts are moderately accurate and they are better than time series extrapolations of historical profits. Explaining cross-sectional differences in accuracy measures proves to be difficult. Finally, the results indicate that profit forecasts are related to company valuations and that investors predict the sign, and to some extent the magnitude, of forecast errors.     

“互联网+”背景下,打造农特产品新型营销模式

在互联网兴盛的当代,电子商务成为新潮流,农民对于线上销售流程较为陌生,但消费者更倾向于线上买卖。打造农特产品新型营销模式,政府、企业、高校三主体参与建设,开展透明化生产+故事化销售,注重有爱消费+健康饮食,实现公众号+第三方小视频平台+农特产APP三位一体,促进企业发展、大学生创业、线上助农巧妙结合,从而推动经济收益与社会效益双提升。     

The foreclosure discount: Myth or reality?

Foreclosed properties sell at lower prices than do nearby non-distressed properties. Of particular concern, is whether there is a “stigma” foreclosure discount whereby REO properties sell at lower prices simply because they have been involved in foreclosure proceedings. To the extent that such a discount exists, arbitrage opportunities exist and the associated market failure has significant policy implications. We examine the foreclosure discount from a different perspective than prior researchers by comparing holding period returns earned by purchasers of REOs with those earned by purchasers of similar non-distressed properties. Our results show that the majority of REO purchasers do not earn economically significant excess returns. On average, the implied market discount is less than typical transaction costs. We also find evidence that REO properties and buyers vary systematically from their counterparts in the non-distressed market segment and that REO attribute prices differ from those of non-distressed properties. Overall, our evidence suggests that the market for REOs operates efficiently: lenders are not irrationally dumping REO properties and REO investors are not reaping extraordinary profits.     

The effect of NYSE listing on a firm’s media visibility

The most frequently cited reason by corporate managers for switching their firm’s trading location from Nasdaq to the NYSE is to improve visibility. This study examines whether these perceptions about listing are real or illusory and whether firm size affects media visibility. Based on a large sample of firms that listed on the NYSE compared with a matched sample of firms remaining on Nasdaq, the results show that NYSE listing does not lead to gains in media visibility during the period immediately after listing. Over a longer period, small- and medium-sized firms experience significant gains in media visibility compared with large firms. Additional tests show that increased media coverage is attributable much more to the rapid earnings growth before listing than to listing. Therefore, managers erroneously attribute the visibility gains to NYSE listing.     

The impact of option listing on the price volatility and trading volume of underlying OTC stocks

This paper examines the impact of an initial option listing on the price volatility and trading volume of underlying OTC stocks. The sample is divided by market value to determine whether larger firms are impacted differently by option listing than smaller firms. We find relative trading volume increases significantly, with the small and medium market value firms showing the largest gain. However, the tests show no evidence of changes in price volatility following option listing. No significant changes were found in either the firms' betas or variance following option initiation. The results provide further evidence that option listing does not destabilize the market for the underlying stock.     

Corporate sponsorships: increasing your slice of the pie

Organizations that sell sponsorship "properties" need to understand that when corporate donors give generously to causes, they do so with specific marketing objectives in mind.     

Coauthorship in academic journals: Implications for international collaboration and alliances

Based on the knowledge-based resource theory of alliance, we analyze coauthorship collaboration. We find that (1) collaboration increases the impact of published articles; (2) articles with nonalphabetical author listing are associated with fewer citations; and (3) barriers to transferring knowledge lowers an article's impact, especially if authors do not take ownership over the article. Coauthors who do not act as if they were senior authors undermine coauthorship collaboration, resulting in lower citations on the article. Our results suggest that articles with alphabetical author listing receive more citations, questioning the norm in journals of some disciplines that advocate nonalphabetical author listing.     

Price Competition When Consumersare Uncertain About Which Firm Sells Which Quality

In this paper we analyze the properties of price equilibria in a duopoly market where firms sell vertically differentiated products, consumers being uncertain about which firm sells which quality. Both existence and properties of price equilibria are characterized by the beliefs of the consumers' population about the distribution of quality between firms.     

Canadian Manager Perceptions of the US Exchange Listings: Recent Evidence

This study reports recent evidence of Canadian manager perceptions of the benefits and costs of listing in US markets, their attitudes toward listing in the US market, and their opinions regarding the importance of using alternative reporting and disclosure requirements, such as Canadian GAAP or international standards, in lieu of US GAAP for US listings. Manager perceptions of firms listing in the US ("listers") are compared to those of firms that have not listed in the US ("nonlisters") as well as to listers' perceptions collected prior to the implementation of the Multijurisdictional Disclosure System (MJDS). Our results do not unambiguously support expectations that implementation of the MJDS would result in cost savings for Canadian listers. We find strong similarities in the perceived benefits of listing as previously reported, but in a significantly higher proportion of our post–MJDS sample. Responses from listers and nonlisters reflect differences between the two populations. Listers appeared concerned with US GAAP reconciliations and disclosure requirements while non–listers are more concerned with the overall difficulty of listing, the costs of listing, and US litigation. Most strongly, however, nonlisters perceive it as unnecessary to list in the US market. Contrary to expectations, we find that US accounting disclosure and reporting requirements are not perceived to be barriers to US market entry for Canadian firms, but instead appear to be post–entry irritants. Finally, we also find evidence that perceptions of nonlisters differ between those firms that list on the Vancouver Stock Exchange and those that list on the Toronto Stock exchange. This suggests that future studies may require finer partitions than on a national basis.     

Do institutions care about market structure? A case study of listing firms

Trading by institutions on the NSYE and Nasdaq markets has grown dramatically. Yet, while listing effects for firms moving to an exchange have been studied for more than 60 years, evidence on whether listing is beneficial is mixed. This study focuses on listing effects to institutional traders by examining different factors that capture changes in block execution. Results indicate price impacts and liquidity costs decline for various types of block trades and block trade sizes, the average volume of which increases after listing.(JEL G20)     

When does delinquency result in neglect? Mortgage distress and property maintenance

Numerous studies have found that foreclosed properties sell at a discount and push down the sale prices of nearby properties, which may be partly driven by poorer maintenance of the foreclosed homes. However, direct evidence of foreclosure-related property neglect has been scarce. This paper uses data on constituent complaints and requests for public services made to the City of Boston to examine the incidence and timing of this type of foreclosure externality. Interior and exterior property conditions appear to suffer most while homes are bank owned, although complaints about reduced maintenance are also common earlier in the foreclosure process.     

权证发行对标的股票流动性的影响分析--基于中国股市的实证研究

本文通过实证方法研究了权证发行对标的股票流动性的影响。通过比较权证发行前后不同流动性指标变化情况发现：权证发行普遍增强了标的股票的流动性，认沽组标的股票的流动性改善最多，认购组次之，认购认沽组最差。对结果的分析发现，标的股票流动性的改善与权证发行后股价变化趋势密切相关，而认购组没有认浩组标的股票流动性改善多，有可能是由我国自身的市场机制引起的。     

Financial Disclosure Levels and Foreign Stock Exchange Listing Decisions

Firms are increasingly listing their shares on foreign stock exchanges. However, not all exchanges have had equal appeal. Anecdotal evidence suggests that when firms are making foreign listing decisions, they are influenced by financial disclosure requirements. As a result, regulatory authorities around the globe are weighing increasing demands for foreign capital and investment opportunities against the desire to protect domestic investors from possibly misleading foreign financial disclosures. The competitiveness of domestic stock exchanges often hangs in the balance.
This study examines a key question in this debate: whether firms' choices regarding alternative foreign stock exchange listings are influenced by financial disclosure levels. Examined are the listings of 302 internationally traded firms with at least one foreign listing, on one of nine major exchanges, as of year-end 1987. Also examined are changes in listings between 1981 and 1987, an important design feature since these changes are more likely to have been influenced by differences across countries in financial disclosure levels during this period. Financial disclosure levels are obtained from a survey of 142 experts actively involved in the foreign listing process.
Test results based on the cross-section of listings at year-end 1987 are consistent with the hypothesis that exchange choices are influenced by financial disclosure levels. However, they do not lend support to a second hypothesis suggesting that this effect should operate only for firms whose domestic disclosure levels are lower than those of a given foreign exchange. Tests based on changes in listings between 1981 and 1987 support both hypotheses. Overall, the results lend credence to concerns expressed by regulatory authorities and exchange officials that stringent disclosure levels could reduce access to foreign capital and foreign investment opportunities.     

The impact of tax increment finance districts on localized real estate: Evidence from Chicago’s multifamily markets

Sales price indices for the Chicago multifamily real estate market are developed in order to examine the influence that designating an area a tax increment financing district (TIF) has on the real property appreciation rates. Chicago is a community with a long history of TIF investment and a patchwork of more than 130 established TIF districts, comprising over 29 percent of the city’s total acreage and approximately 19 percent of the total real property tax base. Municipal governments across the country have come under increased pressure to provide quantifiable evidence that the tools they employ in the name of economic development have the potential to increase private investment. The results indicate that properties located within a designated TIF district exhibit higher rates of appreciation after the area is designated a qualifying TIF district when compared to those properties selling outside TIF districts, and when compared to properties that sell within TIF district boundaries prior to designation. The findings provide support for the hypothesis that TIF policy impacts property values through increased investment.     

我国创业板上市公司成长性评价分析

科学地评价创业板上市公司的成长性是我国创业板市场健康发展的重要前提,通过理论分析构建了创业板上市公司成长性评价指标体系,并以在我国创业板上市的183家公司为样本,采用因子分析模型进行实证分析.研究结果表明:公司的风险控制能力、盈利能力、成长速度、经营效率和创新能力是创业板上市公司成长性的主要体现.     

Using an artificial financial market for studying a cryptocurrency market

This paper presents an agent-based artificial cryptocurrency market in which heterogeneous agents buy or sell cryptocurrencies, in particular Bitcoins. In this market, there are two typologies of agents, Random Traders and Chartists, which interact with each other by trading Bitcoins. Each agent is initially endowed with a finite amount of crypto and/or fiat cash and issues buy and sell orders, according to her strategy and resources. The number of Bitcoins increases over time with a rate proportional to the real one, even if the mining process is not explicitly modelled. The model proposed is able to reproduce some of the real statistical properties of the price returns observed in the Bitcoin real market. In particular, it is able to reproduce the unit root property, the fat tail phenomenon and the volatility clustering. The simulator has been implemented using object-oriented technology, and could be considered a valid starting point to study and analyse the cryptocurrency market and its future evolutions.     

上市公司同业竞争法律问题探讨

股份公司在上市的过程中,由于公司控股股东投资多元化,经常会遇到控股股东同时投资于相同或相近行业而产生同业竞争问题。同业竞争问题处理得当与否关系到股份公司能否顺利上市以及上市后的正常经营活动,是值得深入研究的课题。本文从法理上对同业竞争问题的法律性质进行定性分析,并结合目前我国上市公司对此问题的具体解决方案进行实证研究,最后得出在我国现有的法律框架内同业竞争问题解决的最佳方案,以期能为拟上市公司的实践提供理论支持。     

Visibility effects and timing in stock listing changes: Evidence from operating performance

We extend the timing motive hypothesis to account for the influence of improved visibility as a result of a stock listing change. The results are, in general, consistent with this proposition, especially for Nasdaq and AMEX firms that switch to the NYSE. The empirical findings support the positive relationship of the visibility effect with post-listing operating returns. The evidence is mixed for the timing motive. The evidence is also mixed for both timing and visibility in the case of Nasdaq firms that move to the AMEX. An important finding is that post-listing operating performance has improved after the 1996 Nasdaq market reforms that reduced the NYSE advantage of lower liquidity costs and, thus, made opportunistic timing less important in listing change decisions. In addition, some evidence points to an association between differences in expected visibility improvement due to variation in listing standards and the pattern of post-listing operating performance.     

An analysis of the multiple listing service

This paper looks at the operation of the Multiple Listing Service and suggests that it is not correct to suggest that no restrictions should be placed on the membership in a multiple listing service. Some exclusionary practices with regard to membership are justified to foster the continued viability of a multiple listing service. Moreover, actions to control any type of opportunistic behavior exist and also are justified. Another issue addressed is the determination of the split in the commission rate between listing brokers and selling brokers of a piece of property listed with the Multiple Listing Service. The split is based on both cost and demand considerations.     

The Economic Consequences of Increased Disclosure: Evidence from Cross-Listings of Chinese Firms

In this paper, we investigate the impact of cross‐listings on information asymmetry risk, the cost of capital and firm value of a group of cross‐listed Chinese companies. Our paper is the first to examine the effect of cross‐listing on information asymmetry risk. Because cross‐listed firms are subject to increased disclosure requirements, increased regulatory scrutiny and increased legal liability, we propose that Chinese cross‐listed firms have lower information asymmetry risk, lower cost of capital and higher firm value than their non‐cross‐listed counterparts. We find in both univariate and multivariate tests that cross‐listed firms enjoyed lower information asymmetry risk in the domestic market compared with the non‐cross‐listed firms. We also find that cross‐listed firms have lower cost of capital in the cross‐listing market than non‐cross‐listed firms in the domestic markets. Finally, we find that cross‐listed firms are associated with higher firm value as measured by Tobin's Q. These results have implications for international investors and companies seeking cross‐listing opportunities.