The persistence of abnormal returns at industry and firm levels: Evidence from Spain

We apply structural equation models to longitudinal data on profits of firms within industries to study the persistence of abnormal returns. We obtain a two‐way variance decomposition for abnormal returns: at firm vs. industry levels, and at permanent vs. transitory components. This decomposition enables us to assess the relative importance of the fundamental components of abnormal returns discussed in the literature. The method is applied to a panel of 5,000 Spanish firms observed over the period 1995–2000. We conclude that: (a) there are significant and permanent differences between profit rates at both industry and firm levels; (b) variation of abnormal returns at firm level is greater than at industry level; and (c) firm and industry levels do not differ significantly regarding rates of convergence of abnormal returns. Copyright © 2007 John Wiley & Sons, Ltd.     

Concentration and foreign penetration in Latin American banking sectors: Impact on competition and risk

In the 1990s, Latin American banking sectors experienced an accelerated process of concentration and foreign penetration that prompted diverse views regarding its implications for the competitive behavior of banks and the financial stability of the system. In this paper, we examine these issues exploiting a rich bank-level database for eight Latin American countries. We find that, while increased concentration did not weaken banking competition within the region, foreign penetration appears to have led to a less competitive industry. Moreover, we find that bank risk has been negatively associated with competition which, coupled with the previous finding, explains the positive link between banking sector stability and foreign penetration revealed by the data.     

WHY DO GOOD COPS DEFEND BAD COPS?*

Policemen are known to support colleagues who are the subject of criminal investigations. Although we might expect guilty officers to defend each other, why do (otherwise) law‐abiding policemen defend those who have broken the law? We investigate under what conditions it is in the interest of a group to defend its “bad” members.     

Comparing solution methods for dynamic equilibrium economies

This paper compares solution methods for dynamic equilibrium economies. We compute and simulate the stochastic neoclassical growth model with leisure choice using first, second, and fifth order perturbations in levels and in logs, the finite elements method, Chebyshev polynomials, and value function iteration for several calibrations. We document the performance of the methods in terms of computing time, implementation complexity, and accuracy, and we present some conclusions based on the reported evidence.     

Financing Preferences of Spanish Firms: Evidence on the Pecking Order Theory

This paper analyses some of the empirical implications of the pecking order theory in the Spanish market using a panel data analysis of 1,566 firms over 1994–2000. The results show that the pecking order theory holds for most subsamples analyzed, particularly for the small and medium-sized enterprises and for the high-growth and highly leveraged companies. It is also shown that both the more and the less leveraged firms tend to converge towards more balanced capital structures. Finally, we observe that firms finance their funds flow deficits with long term debt.     

论股份制改革与我国商业银行竞争力提升

国有商业银行的股份制改造和提高对商业银行的资本充足率要求，使我国主要商业银行的资本充足率和不良贷款状况有了很大的改变。但是，银行内部的状况变化不大，银行仍然面临着资本来源渠道少、国有商业银行的公司治理机制不完善、资产收益水平低、业务经营和收入来源比较单一、商层次人才缺乏、信忠化水平有侍进一步提高等诸多问题。进一步提高我国主要商业银行的竞争力，还需深化银行体制及其配套改革，提高银行自身素质。     

Consumption, the persistence of shocks, and asset price volatility

In a general equilibrium setting, a temporary component in consumption introduces a wedge between the volatility of equity returns and the volatility of consumption growth. This paper explores the asset pricing consequences of this property in a model in which consumption is the sum of a permanent and a transitory component. Permanent shocks are assumed to be rare events, while transitory shocks follow a diffusion process. When calibrated to US annual data, the model matches first and second moments of equity and bond returns for preference parameters within acceptable bounds. Permanent and transitory shocks together explain the equity premium, while transitory shocks alone explain the excess volatility of returns.     

What influences continuous employee development decisions?

Organizational changes have created a need for adaptable pre-trained workers and for employees to have more “protean” career paths and be involved in self-directed ongoing development [Hall & Mirvis, 1995. The new career contract: Developing the whole person at midlife and beyond. Journal of Vocational Behavior, 47(3), 269–289]. To help understand the processes involved in this development, a model of continuous employee development is proposed. This model integrates prior work from career development, training, and education literatures and builds on it by proposing factors that affect the occurrence of future development. Research supporting the model is reviewed and specific testable propositions derived from the variables in the model are given. Recommendations for scale usage in testing the model are also provided. Finally, the novel contributions of the model are highlighted, the practical implications of the model for organizations are outlined, and the role of the education system in these processes is discussed.     

FINANCIAL FRAGILITY AND FINANCIAL CRISIS IN MEXICO

The objective of this paper is to show how Mexico’s strategy of financial deregulation and liberalization set the stage for the crisis that the country suffered in December 1994. The theoretical underpinning is Post‐Keynesian, and more precisely, a Minsky‐inspired analytical perspective extended to the open economy. In the first section the authors carry out a theoretical discussion dealing with some Post‐Keynesian theories of the business cycle. A second section is devoted to examining and identifying the stylized facts in the evolution of the Mexican economy, with special emphasis on the interaction between the financial and real variables. In the last section the authors propose a simplified model which shows how and why a strategy of financial deregulation and liberalization may lead to financial fragility and to a crisis.     

俄罗斯机电产品有多少商机可以捕捞

俄罗斯机电产品市场蛋糕有多大7来自全球500强、国际著名自动化与控制Honeywell上海公司采购部人员认为．俄罗斯机电市场具有巨大潜力和机遇。上海戈络宝营销管理咨询有限公司首席培训顾问黄泰山认为，对于俄罗斯机电产品所具有的潜在市场．中国企业应重新审视，以投资合作带动贸易发展，重点扩大某些特定领域机电产品的出口。