The Long-Term Performance of Corporate Bonds (and Stocks) Following Seasoned Equity Offerings

Previous studies document negative long-term abnormal stockreturns following seasoned equity offering (SEO) issuances andconclude that markets are inefficient. Other studies, however,argue that these results are a manifestation of risk mismeasurement(i.e., the bad-model problem), not market inefficiency. We testthe efficient market hypothesis (EMH) and avoid the bad-modelproblem by examining the long-term performance of our samplefirms' bonds and stocks following their SEOs. Our results areinconsistent with the EMH. We also provide evidence that SEOstransfer wealth from shareholders to bondholders because SEOsreduce default risk.     

Common asset pricing factors in volatilities and returns in futures markets

Factor-based asset pricing models have been used to explain the common predictable variation in excess asset returns. This paper combines means with volatilities of returns in several futures markets to explain their common predictable variation. Using a latent variables methodology, tests do not reject a single factor model with a common time-varying factor loading. The single common factor accounts for up to 53% of the predictable variation in the volatilities and up to 14% of the predictable variation in the means. S&P500 futures volatility predicted by the factor model is highly correlated with volatility implied in S&P500 futures options. But both the factor and implied volatilities are significant in predicting future volatility. In derivatives pricing, both implied volatility from options and factors extracted from asset pricing models should be employed.     

Capital structure of multinational and domestic corporations – a cross‐country comparison

This study investigates whether the determinants of capital structure between multinational corporations (MCs) and domestic corporations (DCs) vary across Australia, U.S., Japan, U.K. and Malaysia. Results show (i) the debt holding capacity and majority of the explanatory factors vary between DCs and MCs and also across countries; (ii) Australia, Japan, U.K. and Malaysian MCs hold significantly less long‐term debt relative to U.S. firms; (iii) DCs and MCs that operate under an imputation tax system hold significantly less short‐ and long‐term debt; and (iv) DCs and MCs operating under common law have significantly less short‐term debt and significantly higher long‐term debt.     

Covid-19 and heuristic biases: evidence from India

Stock markets worldwide have witnessed high volatility during the year 2020 owing to the eruption of Covid-19. Due to the world’s unprecedented economic challenges, this study could potentially guide financial advisors and individual investors in dealing with pandemics. An association between investors’ perception toward the intensity of Covid-19 and heuristic biases is analyzed using the responses of 290 stock investors of National Capital Region (NCR), India. The data are validated through Cronbach’s alpha, and the model fit is analyzed using EFA. Confirmatory factor analysis (CFA) is employed to investigate the relationship between Covid-19 and heuristic biases. Covid-19 does not have any influence on the overconfidence of investors. A significant positive relationship is found between Covid-19 and the remaining three heuristics, i.e., availability, anchoring, and representativeness. The present study analyzes the association between Covid-19 and specific investors’ bias only and should not be interpreted for causality. The study has the potential to guide investors in understanding the errors they are making while investing during the pandemic and the ways to deal with them. The study could provide insights to the financial advisors in understanding their customers. The implications of the study may include inputs of the errors committed by them during the pandemic. Despite the fact that an enormous amount of literature exists in the field of investors’ sentiment, a scarcity of literature is available that measures the relationship between heuristic biases and the perceived impact of the pandemic. The current study attempts to fill this gap in the literature.

     

A comparative study of the application of systems thinking in achieving organizational effectiveness in Malaysian and Pakistani banks

The present work is a comparative study of the banking industry of Malaysia and Pakistan. The paper aims to measure the impact of individual systems thinking on the overall organizational effectiveness. Skilled individuals are considered as an asset of the organization especially when these individuals exhibit systems thinking capabilities that helps in achieving effectiveness. The sample consisted of 368 respondents belonging to lower and middle tier levels in the banking sector of both countries. The results indicate that Malaysian banking employees are ahead of their counterparts in Pakistan while applying systems thinking. The study is significant in enhancing the understanding of the importance of systems thinking for organizational effectiveness. The study has managerial implications for the top management of banks.     

The use of an online learning and teaching system for monitoring computer aided design student participation and predicting student success

In this paper we report on the use of a purpose built Computer Support Collaborative learning environment designed to support lab-based CAD teaching through the monitoring of student participation and identified predictors of success. This was carried out by analysing data from the interactive learning system and correlating student behaviour with summative learning outcomes. A total of 331 undergraduate students, from eight independent groups at the University of Surrey took part in this study. The data collected included: time spent on task, class attendance; seating location; and group association. The application of ANOVA and Pearson correlation to quantized data demonstrated that certain student behaviours enhanced their learning performance. The results indicated that student achievement was positively correlated with attendance, social stability in terms of peer grouping, and time spent on task. A negative relationship was shown in student seating distance relative to the lecturer position. Linear regression was used in the final part of this study to explore the potential for embedding predictive analytics within the system to identify students at-risk of failure. The results were encouraging. They suggest that learning analytics can be used to predict student outcomes and can ensure that timely and appropriate teaching interventions can be incorporated by tutors to improve class performance.     

Effects of the workplace social context and job content on nurse burnout

Job burnout is a continuing concern for human resource management, as it affects employee productivity and well‐being. In particular, the nursing profession is widely recognized as a stressful occupation that leads to burnout. The present study examines the relative significance of workplace social context in a health care setting and the job content of the nursing profession for influencing the three dimensions of job burnout: emotional exhaustion, depersonalization, and personal accomplishment (Maslach & Jackson, 1981). Data were collected through a questionnaire survey of a random sample of 1,190 nurses working in 43 public hospitals in Hong Kong. The results indicate that although both the workplace social context and job content have significant effects on burnout dimensions, the effects of the workplace social context were significantly stronger. In addition, the workplace social context had a significant negative effect on personal accomplishment, whereas job content influenced personal accomplishment positively. Implications of these findings are discussed in the context of devising management interventions for dealing with job burnout in the nursing profession. © 2011 Wiley Periodicals, Inc.     

Risk,return and mean‐variance efficiency of Islamic and non‐Islamic stocks: evidence from a unique Malaysian data set

We find that Islamic stocks are more mean–variance efficient than non‐Islamic stocks and the market because they reduce risk of the same level of returns. We combine a unique Malaysian data set of individual Islamic stocks (as opposed to aggregate stock indices) since 1997 with a new method where we apply Islamic business activity and financial ratio screens to the universe of Malaysian stocks. Both data sets show that Islamic stocks have an annualised standard deviation that is on average 3.43–3.78 percent points lower compared to non‐Islamic stocks. This lower variance of Islamic stocks is exclusively driven by financial ratio screens.