Excess returns and international diversification: The Scandinavian view

The paper discusses excess returns within four Scandinavian stock markets and also how Scandinavian returns are related to the returns in non-Scandinavian markets. Some underlying reasons for the observed economically weak relationships between markets are reviewed. Moreover, some reasons why the interrelationships between markets can be expected to increase in the future are provided.     

Caribbean cruise tourism : A business of transnational partnerships

The cruise industry has grown dramatically during the 1980s to the extent that over four million North Americans will have opted for a cruise holiday in 1990. The Caribbean is perfectly placed to take advantage of this market but the governments concerned have not supported tourism development appropriate to the transnational cruise line operators. Cruise ship arrivals in the Caribbean are growing faster than stopover arrivals so it is vital that the various Caribbean governments cooperate with the transnational cruise line operators in planning and providing the necessary infrastructure to tempt the cruise ship arrivals to part with their dollars at the Caribbean destinations.     

Risk and Return on Real Estate: Evidence from Equity REITs

We analyze monthly returns on an equally weighted index of eighteen to twenty-three equity (real property) real estate investment trusts (REITs) that were traded on major stock exchanges over the 1973–87 period. We employ a multifactor Arbitrage Pricing Model using prespecified macroeconomic factors. We also test whether equity REIT returns are related to changes in the discount on closed-end stock funds, which seems plausible given the closed-end nature of REITs.
Three factors, and the percentage change in the discount on closed-end stock funds, consistently drive equity REIT returns: unexpected inflation and changes in the risk and term structures of interest rates. The impacts of these variables on equity REIT returns is around 60% of the impacts on corporate stock returns generally. As expected, the impacts are greater for more heavily levered REITs than for less levered REITs. Real estate, at least as measured by the return performance of equity REITs, is less risky than stocks generally, but does not offer a superior risk-adjusted return and is not a hedge against unexpected inflation.     

Characterization of Normal Distribution Related to Two Samples Based on Regression

Characterization of normal distribution related to two samples based on second conditional moments has been obtained. This characterization has been transformed to a characterization based on the UMVU estimators of the density function. These results are generalized to k samples from normal distributions. Finally applications of these characterization results to goodness-of-fit test are discussed.     

Physiological responses and advertising effects: Is the cup half full or half empty?

A debate has arisen in this journal regarding the utility of psychophysiological measures in general; and of electroencephalographic measures in particular, for evaluating the specific effects of advertising executions. We briefly summarize the positions and replies that have been set forth. Although each is found to have something to contribute, it is also clear that additional basic research using complex persuasion materials in consumer settings is necessary before specific cognitive, emotional, and behavioral advertising effects can be inferred from psychophysiological data. This raises general questions regarding the goal and value of the psychophysiological enterprise. It is suggested that a psychophysiological approach is potentially informative, especially when studying theoretical issues regarding processes underlying social behavior. Research on yet another physiological response system, electrbmyographic activity recorded over the muscles of facial expression, is discussed for purposes of illustration. It is concluded that research has not and is not likely to demonstrate invariant psycho-physiological links nor has it revealed so little about social processes and behavior that physiological responses and systems can be disregarded. An alternative conception of the psychophysiological enterprise is outlined.     

Functional marketing plan development in department store retailing

Retailers are now implementing the types of formal marketing planning programs that have long characterized consumer goods firms. The functional marketing plans that are developed tend to be a year or less in duration. The primary responsibility for developing the plans resides with the general merchandise manager. The planning efforts of the retailing executive, in spite of their short term nature, do reflect an awareness of the importance of understanding the strengths and weaknesses of competitors and of the need to spell out issues involving profit planning, sales promotion planning, merchandise addition/deletion decisions, and issues involving inventory/physical distribution. A variety of marketing plans are developed. Separate plans are developed by merchandise lines in many organizations. The authors wish to express their appreciation to The Conference Board for permission to use the questionnaire, with modifications, underlying research for The Marketing Plan, Report No. 801, The Conference Board, 1981, as the basis for formulating the questionnaire used in this research