Executive stock options and IPO underpricing

In about one-third of US IPOs between 1996 and 2000, executives received stock options with an exercise price equal to the IPO offer price rather than a market-determined price. Among firms with such “IPO options”, 58% of top executives realize a net benefit from underpricing: the gain from the options exceeds the loss from the dilution of their pre-IPO shareholdings. If executives can influence either the IPO offer price or the timing and terms of their stock option grants, there should be a positive relation between IPO option grants and underpricing. We find no evidence of such a relation. Our results contrast sharply with the emerging literature on managerial self-dealing at shareholder expense.     

Empirical evidence of a positive inflation premium being incorporated into stock prices

This study demonstrates that in contrast to prior research findings on short-term stock returns, long-term stock returns are positively correlated with inflation. In addition, within the context of a more complete explanatory model, long-term stock returns are found to be negatively related to changes in long-term interest rates and negatively related to beginning price to earnings ratios. The significance of these variables in explaining almost all the time series variation in long-term stock returns demonstrates that changes in stock values are well explained by theory.     

USING BAYESIAN BETAS TO ESTIMATE RISK RETURN PARAMETERS: AN EMPIRICAL INVESTIGATION

Since its original development by Sharpe (1964), the Capital Asset Pricing Model (CAPM) has been the focus of great interest, practical usage, modifications, testing, and controversy. The basic hypothesis of the CAPM is that the minimum expected return required by investors on any asset will equal the risk-free rate plus a premium for the asset's contribution to the variance risk of a diversified portfolio as measured by the asset's beta. The model is often utilized by investors to calculate the relevant risk and required return on an asset, while corporate officers widely employ the theory to compute the appropriate discount rate to use in estimating the net present value of capital budgeting projects when evaluating spending decisions (Gitman and Mercurio, 1982).     

The evaluation of educational programmes

This paper addresses a problem which is at the forefront of educational debate in the Southern African economy. It attempts to set out the nature and processes of evaluators and the qualities necessary in evaluators if their task is to be accomplished with integrity. The article could be used to draw up basic guidelines that may be regarded as prerequisites for evaluating educational programmes in this country and promotes evaluation as a powerful means of refining educational programmes while they are in operation.     

An analysis of efficiency in the delivery of financial services: The case of life insurance agencies

Scale and scope economies are examined for life insurance agencies that distribute multiple financial products. The results of this study suggest that there are significant administrative returns to scale for firms that sell a mix of financial products. The findings for scope estimates are inconsistent, suggesting that there are positive and negative cost complementaries for pairs of products. Subadditivity can be rejected, suggesting that joint distribution of financial products is not necessarily more efficient than specialization and that different-sized agencies are not necessarily at a cost disadvantage.     

Tourism in British Columbia Metropolitan and Camping Visitors

Two issues common to tourism planning are investigated in the context of a current planning proposal between the British Columbia and Canadian governments. These issue are the problem of spatial imbalance in travel patterns and the place of camping in market development strategies. Through the use of multiple regression two group discriminatory analysis, several characteristic of metropolitan and campers visitor to British Columbia are differentiated. The dominant tourist position of British Columbia's two metropolitan centers is shown to be a function of their relative location and the availability of familiar visits. The campers proved to be independent travellers: independent of familial ties and metropolitan locations. Some implications and planning strategies for the integration of these two groups into the travel industry development objectives for the province of British Columbia are suggested.     

USING THE CAPM AS A GENERAL FRAMEWORK FOR ASSET PRICING ANALYSIS

In this paper a model of asset pricing is derived that relaxes the restrictive assumptions of standard theories. The model leads to a tractable capital asset pricing model framework that can be used to test empirical hypotheses and draw important insights on capital market equilibrium.     

振动应力筛选

本文介绍了振动应力筛选技术,讨论了建立振动应力筛选的益处,应考虑的主要问题以及应牢记的关键因素。     

Informal authority in organizations

We assert that decision rights in organizations are not contractible:the boss can always overturn a subordinate's decision, so formalauthority resides only at the top. Although decision rightscannot be formally delegated, they might be informally delegatedthrough self-enforcing relational contracts. We examine thefeasibility of informal authority in two informational environments.We show that different information structures produce differentdecisions not only because different information is broughtto bear in the decision-making process, but also because differentinformation creates different temptations to renege on relationalcontracts. In addition, we explore the implications of formaldelegation achieved through divestitures.     

Market development in practice: A case study of user‐initiated product innovation

User‐initiated innovation refers to the inauguration of new industrial processes and products by their users rather than by manufacturers. The marketing literature has recently been enhanced by the reconceptualisation of industrial innovation to include the possibility of this customer‐active approach. But the accounts of customer‐active innovation which have so far appeared confine the role of the user to the development of internally‐applied process innovations, leaving their wider commercial exploitation entirely to manufacturers. This article presents a case study of the development of flexible manufacturing systems in a major British company and demonstrates the importance of recognising the active role of users in product innovation.