New evidence on price impact of analyst forecast revisions

Previous research shows a positive relationship between consensus forecast revisions and stock returns in developed markets. We obtain new evidence from four major Asia-Pacific markets that suggest that abnormal returns are related to latest forecast revisions. The price impact of negative revisions is consistently stronger than that of the positive revisions. We also found considerable differences in price impact between developed and emerging markets for positive revisions, while no such difference is detected for negative revisions. The latest forecast revisions and category of analysts (those working in international broking firms) appear to be two key determinants of abnormal stock returns.     

The Inefficiency of the Mean Analyst Forecast as a Summary Forecast of Earnings

We show analytically that mean analyst forecasts inefficiently aggregate information by assigning too much weight to analysts' common information relative to their private information when used as a summary forecast measure of forthcoming earnings. A more precise summary forecast of earnings than the current mean forecast is the current mean forecast plus a positive multiple of the change in the mean forecast.     

IN SEARCH OF OWNERS: PRIVATIZATION AND CORPORATE GOVERNANCE IN TRANSITION ECONOMIES

Experiments in privatizing enterprises in transition economiesabound, from extensive efforts at sales to strategic owners(as in Estonia and Hungary), to programs based primarily oninsider buyouts (as in Russia and Slovenia), to innovative massprivatization programs involving the creation of large and powerfulnew financial intermediaries (as in the Czech and Slovak republicsand Poland). Each approach has inherent strengths and risks.But if the objectives are to sever the links between the stateand the enterprises, to school the population in market basics,and to foster further ownership change, the initial weight ofevidence seems to favor significant reliance on voucher privatization,especially given the difficulty most countries have findingwilling cash investors.      

The influence of business strategy on annual report readability

Concerns about the complexity of firm disclosures have prompted regulators to initiate projects to improve the readability of annual reports. We investigate business strategy as a determinant of annual report readability. As business strategy fundamentally determines a firm’s product and market domain, technology, and organizational structure, it influences a firm’s operating complexity, environmental uncertainty and information asymmetry. Consequently, business strategy frames the level, wording, and complexity of disclosures. We capture a firm’s business strategy based on the Miles and Snow (1978) strategic typology and measure 10-K readability with Li’s (2008) Fog index. We find that firms pursuing an innovation-oriented prospector strategy have less readable 10-Ks relative to firms pursuing an efficiency-oriented defender strategy. We also find that prospectors display more negative and uncertainty tones while defenders exhibit more litigious tone in their 10-Ks. Our study provides useful insights to policy makers as it suggests that efforts to improve annual report readability may be limited for some firms given that business strategy is a fundamental determinant of readability and pronouncements accommodating different strategic orientations are not feasible.     

Nonlinear serial dependence and the weak-form efficiency of Asian emerging stock markets

The objective of this paper is to re-examine the weak-form efficiency of 10 Asian emerging stock markets. Using a battery of nonlinearity tests, the statistical results reveal that all the returns series still contain predictable nonlinearities even after removing linear serial correlation from the data. The next stage of sub-sample analysis using the Hinich [Hinich, M., 1996. Testing for dependence in the input to a linear time series model. Journal of Nonparametric Statistics 6, 205–221] bicorrelation test shows that the 10 Asian series follow a pure noise process for long periods of time, only to be interspersed with brief periods of strong nonlinear dependence. The exploratory investigation found that the cross-country differences in nonlinear departure from market efficiency can be explained by market size and trading activity, while the transient burst of nonlinear periods in each individual market can be attributed largely to the occurrence of economic and political events.     

An Examination of Labor Productivity Growth and Structural Changes in the Singapore Labor Force*

This paper ?rst examines the sources of growth in the Singapore economy by decomposing real per capita gross domestic product (GDP) growth into two components. It is found that, for the period 1974–1999, labor productivity was a signi?cant source of economic growth in Singapore. Conversely, the contribution of the rate of change in employment ratio was only of secondary importance. On further decomposition, the rate of change in employment ratio was due mainly to rate of change in population age‐structure ratio and rate of change in labor‐force participation rate. Growth patterns of the labor force were examined after it has been segregated according to gender, citizenship and age group independently. Labor productivity growth was highest in the transport, storage and communication sector, while labor productivity growth was lowest in the ?nancial, insurance, real estate and business services sector.     

Culture and entrepreneurial orientation: a multi-country study

Entrepreneurial orientation (EO) has been proven as an essential attribute of high performing firms, and the role of culture has been highlighted for generating robust EO. The purpose of this study is to investigate the role of culture by identifying differences among the selected nations in terms of EO dimensions. This is an empirical study based on the data collected from university students in the U.S., Korea, Fiji, India, and Malaysia representing nations with significantly different cultural contexts. The result showed significant differences among the nations in most EO dimensions. This implies that customized education approaches based on unique cultural context are needed for developing EO among college students.     

Exploring the online buying behavior of specialty food shoppers

Food producers are experiencing a fast-growing need to use the Internet to enhance competitive advantage. Past researchers have urged the need to understand market segmentation mechanisms as applied to different consumer behavior models to better understand the online buying behavior of consumers. This study integrates the Theory of Planned Behavior and food-related lifestyle to explore consumer's characteristics of online specialty food buying behavior, and the differences in the online buying process among consumers with different FRL. 569 undergraduate students who purchased specialty food online were surveyed. Findings indicated that consumers have positive attitudes toward purchasing specialty food online; more are inclined to heed the suggestions of others, perceive higher levels of control when using a website, and experienced a higher intention to purchase online. The study then classified consumers into ‘traditionalists’ or ‘adventurous and healthy-conscious’ groups based on their FRL via a two-step cluster analysis. These two groups of consumers had significant differences in terms of (a) attitudes toward online specialty food buying, (b) subjective norms, (c) perceived control, (d) behavioral intention, (e) demographics and (f) online specialty food-buying behavior. This investigation explored whether there is a correlation between consumer FRL and online specialty food-buying behavior. Findings reveal relevant ways for managers to enhance their website marketing strategies.