Valuation Effects for Asset Sales

This study provides evidence that the outcome for shareholders resulting from asset sales is determined at the time of transaction by the value for the asset sold. Assets sold above market value are followed by positive and significant abnormal returns over the following three months; these returns are magnified in firms where the balance of power in corporate governance favors shareholders. Abnormal returns following undervalued asset sales are insignificant from zero, indicating value-preservation. Value-preservation when the assets are sold below market value becomes less likely as firms approach financial constraints. The reverse is true when assets are sold above market value. This evidence is documented for apartment REITs, which have a large number of comparable transactions available for estimating expected market values.     

Capital liquidity and residents’ consumption decision: An asymmetry analysis of economic prosperity

Among the current literatures that discuss the influence exerted on residents’ consumption behavior by capital liquidity, some often independently decide the demarcation point of the liquidity restriction that affects residents’ consumption behavior, without taking into account when the economy is flourishing whether residents will be influenced by the restriction of the liquidity that their consumption behaviors can not be fully carried out. We introduce a threshold model which varies according to the actual GDP and other financial indicators (money supply, average stock index and balance of bank loans) to discuss residents’ consumption behavior in China under different economic states. The empirical results show that when the economy flourishes or resuscitates, residents’ income of the same period have not notable influence on their consumption, which suggests that residents’ consumption behavior does not considerably change according to the fluctuation of the current income, but conforms with the constant income-life cycle hypothesis. Moreover, two estimated values 0.7504 and 0.8597, as economic boom measures, all fall in the boom stable stage—basically consists with the early-warning index of the macro-economy boom issued by National Bureau of Statistics of China. It shows that the macro-economic boom is not notablely influenced by capital liquidity, so is residents’ consumption behavior.     

Activity in futures: does underlying market size relate to futures trading volume?

This study investigates the determinants of trading volume in the futures markets and focuses on underlying market characteristics as an explanation for futures trading volume. Four major futures contracts traded on the Sydney Futures Exchange are investigated: the stock price index (SPI); the 90-day bank accepted bill (BAB); the 3-year bond; and the 10-year bond. An important outcome of this study is an identification of the fundamental drivers of trading volume in the futures markets, which have largely gone undocumented in prior research. We find evidence that futures trading volume is related to underlying market characteristics: the size of the Australian superannuation fund investments in equities (for the SPI), short term treasury notes (for the BAB), non-government bonds on issue (for the 3-year contract) and government bonds on issue (for the 10-year contract).     

Relative accuracy of analysts’ earnings forecasts over time: a Markov chain analysis

The main purpose of this paper is to analyze the time patterns of individual analysts’ relative accuracy ranking in earnings forecasts using a Markov chain model. Two levels of stochastic persistence are found in analysts’ relative accuracy over time. Factors underlying analysts’ performance persistence are identified and they include analyst’s length of experience, workload, and the size and growth rate of firms followed by the analyst. The strength and the composition of these factors are found to vary markedly in different industries. The findings support the general notion that analysts are heterogeneous in their accuracy in earnings forecasts and that their superior/inferior performance tends to persist over time. An analysis based on a refined measure of analysts’ forecast accuracy ranking that strips off firm-specific factors further enhances the empirical validity of the findings. These findings provide a concrete basis for researchers to further explore why and how analysts perform differently in the competitive market of investment information services.     

Der Begriff Lügenpresse in deutschen Tageszeitungen

In Germany, we currently see on-going changes in politics and society. More and more people seem to lose faith not only in politics, but also in the mainstream media. Since autumn 2014, the distrust in and suspicion of the news media has reached a new level: the group “Pegida” (Patriotic Europeans against the Islamization of the West) coined the term Lügenpresse (lying press) to illustrate their growing distrust in news media. The term lying press emerged for the first time in 1914 and was regularly used for war propaganda to defame foreign media. In general, the term is not only used by followers of a certain political direction, but in the context of different, especially antidemocratic, political movements (e.?g., during the National Socialist era or during the GDR era in Germany). Since the beginning of the 2000s, however, the concept has been increasingly referred to by right-wing groups (see Heine 2015; Klarmann 2013). Nevertheless, this is not only an issue in Germany, since Pegida has support in other European countries, such as Great Britain and the Netherlands.News media become part of their own coverage as soon as they refer to these developments. Self-discussion or self-coverage can be described as journalistic communication about journalism and means that the media themselves become the object of reporting. Hence, when media use the term lying press, they inevitably refer to themselves. The present study deals with how the media refer to the term lying press and how they reflect upon it. The main question we deal with in our study is how detailed the concept is reflected on and how the media deal with the associated reproach of deliberate misinformation.Drawing on the concept of framing, a content analysis is employed in order to analyze how newspapers report on the term, how they relate it to themselves and how they deal with its implications. The framing approach deals with the emergence, dissemination and alteration of interpretive frames, which are placed on an issue and determine the point of view on this topic. According to Matthes (2014), frames can be understood as a tool to highlight certain information or aspects of a topic while neglecting others. The framing approach deals with the genesis, alteration and effects of frames, which are located at various points in the communication process. In this study, we focus on media frames in the daily newspaper coverage. We rely upon the definition according to Entman (1993) which has been most frequently operationalized so far.We postulate several research questions that deal with the concept of self-coverage and framing. We are, for example, interested in verifying the sections of newspapers in which the term is referred to and if there are differences in how strongly the term is reflected upon. Furthermore, our research interest focuses on how the term is framed, which frames are dominant in the news media and if the frames change over time. We investigated the coverage of the five most widely circulated daily newspapers (Frankfurter Allgemeine Zeitung, Süddeutsche Zeitung, Bild, die Welt, and die tageszeitung) in Germany from October 2014 to October 2015. We discovered 304 articles with 338 statements referring to the term lying press. With a cluster analysis, we extracted four frames.Overall, the term lying press is more strongly reflected on in media sections than in political reporting. In political sections the term is often only mentioned without further contextualization. The four extracted clusters, which can be interpreted as media frames, are termed as follows: demanding author frame, reserved expert frame, external accusation frame, and unreflected author frame.In political sections of newspapers, the two rather undifferentiated frames (external accusation frame with 35% and unreflected author frame with 36%) are dominant. The reserved expert frame (35%) and the unreflected author frame (43%) are the two dominant frames in media sections. Nevertheless, the two most common frames (external accusation frame and unreflected author frame) do not use the term lying press in a critical and reflective way (combined percentage of 60%). The selection of the term as “non-word” of the year did not significantly change the frequency with which the four frames are used within the media.Our results show that the term lying press is used in different ways – but in most cases, there is only little or no elaboration. Frequently, the term is only mentioned without a deeper discussion and classification of the term and its meaning. It sometimes even seems that newspapers use the term ironically as a synonym for themselves instead of the terms media or press. However, the associated trivialization of a term carrying such negative connotations is problematic and could help to establish lying press as an unreflected designation for the media. The media might miss the opportunity to both react decisively to the accusations and to illustrate how important they are in a democratic society. The term must be placed in its historical context and should not be permitted as a flat-rate defamation. Whether the underlying criticism is justified or not, the media should discuss the term and, if possible, invalidate it. In this context, the media must perform their function of practicing criticism – also against themselves. Limitations and future research are discussed at the end of the paper.     

Delegation and polarization of platforms in political competition

Summary. We consider a model of political competition among two ideological parties who are uncertain about the distribution of voters. The distinguishing feature of the model is that parties can delegate electoral decisions to candidates by nomination. It is shown that if the credible platform commitments of the candidates is feasible, then at least one of the parties nominates in equilibrium to a candidate who has an ideology that is more radical than the delegating party's ideology. In a variety of circumstances, this, in turn, yields a polarization of equilibrium policy choices of the candidates. It is thus argued formally here that strategic nomination of the candidates may well be one of the major reasons behind the well documented observation that the platforms associated with the political parties in two-party democracies are often surprisingly polarized. Received: January 10, 2002; revised version: May 8, 2002 RID="*" ID="*" We thank Alberto Alesina, Levent Ko?kesen, Antonio Merlo, Ronny Razin, Vijay Krishna, Alessandro Lizzeri, and seminar participants at Alicante, Columbia, Copenhagen, and NYU for helpful comments. We also thank an anonymous referee for its useful suggestions. A good fraction of this research was conducted while Ok was a visitor in the Department of Economics at University of Alicante; he thanks for the kind hospitality of this institution. We gratefully acknowledge the financial support from the Spanish Ministry of Education through grant CICYT BEC2001-0535 (Faulí-Oller) and BEC2001-0980 (Ortu?o-Ortín). Correspondence to:I. Ortu?o-Ortin     

Einkommensentstehung als Verteilungsfaktor

From the end of the Second World War onwards, a middle class emerged in Germany that was, by international standards, broadly based. The economic basis for this middle class was good pay and relatively low income differentiation, which was the result of collective agreement on a high coverage rate. Since the mid-1990s, however, the economic basis of middle-class prosperity and security has been crumbling. In the primary distribution, the share of households in the middle-income groups fell by almost ten percentage points, from 56.4 per cent to 48 per cent, between 1992 and 2013. The welfare state was no longer able to compensate fully for this unequal primary distribution. An increase in coverage by collective agreements, the re-regulation of atypical employment forms and the elimination of all incentives to take marginal, part-time jobs are the keys to strengthening the middle-income groups in Germany.     

What pupils can learn from working with robotic direct manipulation environments

This study investigates what pupils aged 10–12 can learn from working with robots, assuming that understanding robotics is a sign of technological literacy. We conducted cognitive and conceptual analysis to develop a frame of reference for determining pupils’ understanding of robotics. Four perspectives were distinguished with increasing sophistication; “psychological”, “technological”, “function”, and “controlled system”. Using Lego® Mindstorms® NXT robots, as an example of a Direct Manipulation Environment, we developed and conducted a lesson plan to investigate pupils’ reasoning patterns. There is ample evidence that pupils have little difficulty in understanding that robots are man-made technological and functional artifacts. Pupils’ understanding of the controlled system concept, more specifically the complex sense-reason-act loop that is characteristic of robotics, can be fostered by means of problem solving tasks. The results are discussed with respect to pupils’ developing technological literacy and the possibilities for teaching and learning in primary education.