Share restrictions and asset pricing: Evidence from the hedge fund industry

This paper presents evidence on the relation between hedge fund returns and restrictions imposed by funds that limit the liquidity of fund investors. The excess returns of funds with lockup restrictions are approximately 4–7% per year higher than those of nonlockup funds. The average alpha of all funds is negative or insignificant after controlling for lockups and other share restrictions. Also, a negative relation is found between share restrictions and the liquidity of the fund's portfolio. This suggests that share restrictions allow funds to efficiently manage illiquid assets, and these benefits are captured by investors as a share illiquidity premium.     

Multifamily Housing Demand: 1980–2000

Using Annual Housing Survey data on multifamily structure occupancy by household type for 1975, together with number of household projections from the Department of Agriculture, a gross level of multifamily housing demand is projected. Allowance is made for a 2 percent replacement rate of the total stock as well as a 5 percent vacancy figure for new household demand. Assuming that: (1) there is no massive shift away from one-family ownership to multifamily units, and (2) the present level of conversions from one-family units to multiple occupancy continues to offset the trend of conversion from rental multifamily units to condominium status, then total future demand for multifamily rental units is well within current construction levels.

• We are presently building one and one-half times the demand of 416,000 units per year projected for 1975–80.

• The demand from 1980 to 1990 decreases to 367,000 new units annually.

• This is further reduced to 335,000 units annually for the period 1990–2000.

The major determinants of future demand will focus on the scrap-page rate of extant facilities and the regional shifts of population.
The future supply of multifamily structures depends on an abatement of construction costs and interest rates, and/or massive levels of Government subsidy.
There is evidence that operating cost rises are challenging the financial integrity of multifamily structures. This is manifested by the HUD and private market mortgage delinquency and foreclosure rates.
Policy focus for the future should emphasize the minimization of both construction and operating costs rather than augmented delivery rates.     

An analysis of the role of accounting standards for enhancing corporate governance and social responsibility

Accounting standards have been suggested as a means of requiring reporting by corporations that would enhance managers' concern for their shareholders and/or society. The analysis presented in this paper, however, leads to the conclusion that this role for accounting standards is not likely to be beneficial. The conclusion is based on the fact that the required measurements for useful standards cannot generally be made. This inherent limitation is absolute with respect to social responsibility concerns. With respect to corporate governance, accounting standards might be useful, primarily for reporting potentially fraudulent dealings and similar misuses of shareholder's assets by corporate managers. But even then, the cost of an accounting standard, ex ante, is likely to exceed its benefits to shareholders.     

What causes K-waves?

This commentary on the Devezas-Corredine paper raises three questions: how do we think and how do we need to think about K-waves, what causes K-waves in the Devezas-Corredine model, and in what sense do social and biological factors add to a better understanding of large-scale structural changes in the world economy.     

The Marketers’ Prismatic Palette: A Review of Color Research and Future Directions

Color carries meaning and can influence consumers’ thoughts, feelings, and behaviors. Many disciplines, such as neuroscience, psychophysics, visual cognition, and biology have used new technologies to gain insights in understanding the complexities of color perception, yet there exists relatively little research in the field of marketing. This paper aims to reestablish the importance of color research in marketing, draw attention to the complex nature of this research, and to fuel further investigation and the development of new insights about color as it relates to marketing. The authors offer an integrated conceptual framework centered on the embodied and referential meanings of color and highlight the complexities and nuances that researchers must consider in order to develop this area. Insights from and gaps in the extant literature are highlighted to present a set of questions and propositions for future research in this area of investigation.     

Corporate hyperlink network relationships in global corporate social responsibility system

This study analyzed the hyperlink (co-link) network structure among companies in global Corporate Social Responsibility (CSR) system. This study measured network variables such as density and centrality, including degree centrality, eigenvector centrality, closeness, and betweenness. The results indicated that European companies had relatively central roles in the global CSR system. In addition the higher performing companies are more active their CSR practices. Also, the results revealed that the industrial type of companies was not significantly associated with its CSR practices.     

If you feel it now you will think it later: The interactive effects of mood over time on brand extension evaluations

While mood has been found to affect brand extension evaluations, the specific mechanisms by which it affects those evaluations remain largely untested. This study suggests that mood‐induced differences in cognitive processing style (relational vs. item‐specific elaboration) are possible explanations affecting brand extension evaluations. Results of two experiments showed that consumers in a positive (vs. negative) mood engaged in relational (vs. item‐specific) elaboration and consequently evaluated brand extensions and brand extension fit more favorably than consumers in a negative mood. The effects were found immediately after exposure (Experiment 1) and after a one‐week delay (Experiment 2). Theoretical and practical implications are discussed. © 2011 Wiley Periodicals, Inc.     

INFORMATION ASYMMETRY,MANAGEMENT CONTROL,AND METHOD OF PAYMENT IN ACQUISITIONS

We examine the information asymmetry hypothesis and the management control hypothesis by examining the relation between insider trading and insider holdings to the choice of payment method in acquisitions. Our results indicate that both insider ownership and insider trading are significantly related to payment method. These results provide additional evidence for both the management control theory and the asymmetric information theory in the choice of payment method in acquisitions. Furthermore, we find a significant relation between insider trading activity and the market reaction to the announcement of acquisitions. We conclude that information asymmetry exists in the takeover market and that it influences the payment method decision.