Stock Market Valuation of Deferred Tax Assets: Evidence from Internet Firms

Abstract:   We use the provisions of SFAS No. 109 , Accounting for Income Taxes , to examine the extent to which stock prices of Internet firms were associated with expectations of future profitability before versus after the 'market correction' in early 2000. We find that the valuation of deferred tax assets of firms with business models reliant on the level of web site traffic was significantly greater after the market correction. In our view, this evidence is consistent with pre‐correction mispricing.     

An Analysis of the Determinants and Shareholder Wealth Effects of Mutual Fund Mergers

This study examines the determinants of mutual fund mergers and their subsequent wealth impact on shareholders of target and acquiring funds. Results indicate significant improvements in postmerger performance and a reduction in expense ratios for target fund shareholders. In contrast, acquiring fund shareholders experience a significant deterioration in postmerger performance. The net asset flows continue to remain negative for the combined fund in the year following the merger. The likelihood of a fund merger is inversely related to fund size for both within- and across-family mutual fund mergers. However, poor past performance is a significant determinant for only within-family mergers.     

The Dynamics of Alliance Conditions in the Alliance Development Process

One of the key issues in understanding the developmental processes of strategic alliances is how the alliance conditions change over the different stages of alliance development. A related question concerns the nature of the co-evolutionary dynamics of alliances in terms of their constituent partner firms. In this article we propose an integrated process model of alliances that is based on alliance conditions, allianc developmental stages, and an alliance system comprising co-evolutionary elements. We suggest that alliance conditions, or the key characteristics of an alliance at any given moment, link the alliance environment (firm characteristics) and the alliance development process. We also explore how specific patterns of alliance conditions have differential impacts on the interactive elements of the alliance co-evolutionary system.     

Depositor Discipline in the Banking Sector in India: An Empirical Investigation

Journal of Quantitative Economics - The paper traces the determinants of depositor discipline in Indian banking. Using annual data on commercial banks covering the period 1996 to 2003, the findings...     

Product quality: Impact of interdepartmental interactions

The authors examine the role of organizational factors affecting interdepartmental interactions and their subsequent effects on product quality. Results from a national study suggest that product quality is affected by interdepartmental conflict and connectedness. Importantly, the linkage between interdepartmental conflict and product quality appears to be robust across varying levels of market turbulence and technological turbulence. In contrast, interdepartmental connectedness appears to be more important for product quality under conditions of high market and technological turbulence. The results also indicate that interdepartmental interactions are influenced by leadership characteristics (risk aversion of top managers), reward system orientation, and organization structure (centralization, departmentalization, and hierarchical levels). Managerial implications and directions for future work are proposed. His research interests focus on marketing strategy, marketing management, and new product management. His work has appeared in theJournal of Marketing, Journal of Business Research, and other journals. His research focuses on implementing and controlling marketing, market/environmental orientation, and customer responses to advertising. His work has appeared in theJournal of Marketing, Journal of Marketing Research, Review of Marketing, and other journals. His research interests include market orientation, marketing strategy, sales management, and industrial marketing. His work has appeared in a number of journals including theJournal of Marketing, Journal of Marketing Research, andStrategic Management Journal.     

Mortality,Human Capital and Persistent Inequality

Available evidence suggests high intergenerational correlation of economic status and persistent disparities in health status between the rich and the poor. This paper proposes a mechanism linking the two. We introduce health capital into a two-period overlapping generations model. Private health investment improves the probability of surviving from the first period of life to the next and, along with education, enhances an individual’s labor productivity. Poorer parents are of poor health, unable to invest much in reducing mortality risk and improving their human capital. Consequently, they leave less for their progeny. Despite convex preferences and technologies, initial differences in economic and health status may perpetuate across generations when annuities markets are imperfect.Additional support was provided by the National Science Foundation. Additional support was provided by the National Science Foundation.     

Panel unit root tests under cross-sectional dependence

In this paper alternative approaches for testing the unit root hypothesis in panel data are considered. First, a robust version of the Dickey-Fuller t -statistic under contemporaneous correlated errors is suggested. Second, the GLS t -statistic is considered, which is based on the t -statistic of the transformed model. The asymptotic power of both tests is compared against a sequence of local alternatives. To adjust for short-run serial correlation of the errors, we propose a pre-whitening procedure that yields a test statistic with a standard normal limiting distribution as N and T tends to infinity. The test procedure is further generalized to accommodate individual specific intercepts or linear time trends. From our Monte Carlo simulations it turns out that the robust OLS t -statistic performs well with respect to size and power, whereas the GLS t -statistic may suffer from severe size distortions in small and moderate sample sizes. The tests are applied to test for a unit root in real exchange rates.     

Reinvestigating the Nature of Persistence of Shocks in the Macroeconomic Variables Relating to the Indian Economy with Special Reference to Structural Changes and Seasonality

Over the last two decades, there is a substantial debate on the persistence of shocks, in terms of their transitory and permanent nature, caused to the macroeconomic aggregates. Macroeconomic variables with transitory shocks will revert back to the long-run deterministic path eventually, whereas variables with permanent shocks will move according to random walk having no fixed predetermined path. These two series known as Trend Stationary (TS) and Difference Stationary (DS), respectively, have their significance in the specification of the regression equation and testing competing economic theories. Consequently there are a good amount of studies to classify the macroeconomic aggregates as TS vs. DS. In this context, relatively new developments of seasonal integration and presence of structural breaks in the macro variables has aroused a need to reinvestigate these hypotheses afresh. This paper makes an attempt to examine some of these issues by making use of the Indian data.

     

Public policy relating to consumer comprehension of television commercials: A review and some empirical results

The utility of disclosure supers in television commercials in providing consumers with useful information is investigated. First the role of the various regulatory agencies in monitoring disclosure supers is reviewed. Next we review the role of consumer behavior theory in explaining how consumers process disclosure information. Then we develop and test hypotheses relating to four format aspects of disclosure supers. The findings supported the hypotheses. Viewers demonstrated lower levels of comprehension for disclosure information relative to information in the body copy of the commercials. Comprehension of disclosure information increased when typeface of disclosure was larger and when a voice-over accompanied the disclosure, but decreased when volume of information in disclosure supers increased. The implications of the findings for public policy are discussed.

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Verbraucherpolitische Einflunahme auf das Verbraucherverständnis von Werbebotschaften im Fernsehen: Ein überblick und einige empirische Befunde

Zusammenfassung Der Beitrag befa\t sich mit dem Nutzen von Informationsauflagen bei Werbespots im Fernsehen, die dem Konsumenten nützliche Informationen zur Verfügung stellen sollen. Zunächst werden die verschiedenen Institutionen geschildert, die die Befolgung von Informationsauflagen überwachen. Als nächstes wird die Bedeutung der Theorie des Konsumentenverhaltens behandelt, wenn es darum geht, die Verarbeitung des Inhaltes von Informationsauflagen durch die Konsumenten zu erklären. Anschlie\end entwickeln die Autoren einige Hypothesen über die Wirkung unterschiedlicher Gestaltungsbedingungen auf die Informationsübermittlung. Diese Hypothesen werden durch die Befunde im wesentlichen bestätigt: Der Inhalt von Informationsauflagen wird insgesamt weniger gut verstanden als der eigentliche Inhalt der Werbebotschaft. Das Verständnis der Informationsauflage ist höher bei grö\erem Schriftgrad. Es ist auch höher, wenn ihr Inhalt nicht allein in Schriftform bezeichnet wird, sondern wenn er zusätzlich auch noch gesprochen wird. Es ist allerdings geringer bei grö\erer Informationsmenge. Abschlie\end werden einige verbraucherpolitische Empfehlungen gegeben.

     

Public bicycle as a feeder mode to rail transit in China: The role of gender,age, income,trip purpose,and bicycle theft experience

A marriage between public bicycle and rail transit presents new opportunities for sustainable transportation in Chinese cities. To examine determinants of public bicycle usage for rail transit access, an intercept survey of feeder mode choice among rail transit users was conducted near rail stations in Nanjing, China. Mode choice models were estimated with five feeder mode alternatives, including car, bus, walk, private bike, and public bike. By differentiating between public and private bicycle modes in the mode choice models, the study reveals the effects of personal demographics, trip characteristics, and station environments on public bicycle usage for rail transit access. Results show that female, older, and low-income rail commuters are less likely to use public bicycle to access rail transit. Rail commuters with bicycle theft experience and making school- or work-related trips are more likely to use public bicycle to access rail transit. Land use variables are largely insignificant in this study except that density shows a positive relationship with walking to rail transit. The results on demographic differences raise equity concerns when it comes to investing in public bicycle systems. Policy implications are discussed for Chinese cities to equitably boost public bicycle integration with rail transit.