ON THE NEGATIVE RISK PREMIUM FOR RISK ADJUSTED DISCOUNT RATES: A COMMENT AND EXTENSION

This paper develops conditions necessary for negative risk premia to emerge at the market level, and at the individual level in imperfect markets. It also correctly shows how to discount cash outflows. The model used to integrate these topics is the state-preference model of security valuation; the most general model available. The paper corrects serious errors contained in recent work published in the journal.     

Linking, de-linking and re-linking: Southeast Asia in the global economy in the twentieth century

This paper examines how links between the economies of Southeast Asia and the world economy have changed over the twentieth century, paying particular attention to growth in commodity exports, investment flows and international migration. Most parts of Southeast Asia expanded their links with the global economy in the latter part of the nineteenth and early twentieth centuries, but the years from 1940 to 1965 saw a decline in Southeast Asia's share of tropical exports, and of direct foreign investment. Migration flows also slowed. Over the last four decades of the twentieth century, international links expanded again, but there have been marked variations between countries.     

The effect of foreign ownership restrictions on stock price dynamics

The Effect of Foreign Ownership Restrictions on Stock Price Dynamics. —This paper uses Finnish data to explore the impact of foreign ownership restrictions on the dynamic properties of domestic stock prices. These restrictions create unrestricted stocks (foreign and domestic ownership) and restricted stocks (domestic ownership). Unrestricted share prices are significantly more volatile than those of restricted shares but their means are not significantly different from each other. The returns on the two types of shares are found to be generated by an error correction model. These results support the hypothesis that the unrestricted share prices tend to overshoot relative to equilibrium with the arrival of new information.     

The relationship between U.S. and eurodollar interest rates: Evidence from the futures market

The Relationship between U.S. and Eurodollar Interest Rates: Evidence from the Futures Market. — This paper analyzes the lead/lag relationship in the Granger-cause sense between U.S. and Eurodollar interest rates in futures contracts. It shows that yields on U.S. Treasury bill and Eurodollar futures are cointegrated with the TED spread as the cointegrating vector for the period January 1987–July 1993. The error correction model indicates that the U.S. market leads the Eurodollar market. However, the presence of this unidirectional causality does not improve the forecasting of Eurodollar yields. Other evidence given in the paper suggests that the hypothesis of contemporaneous relationships, at least on daily base, is not rejected.     

Full Stop: an extraordinary appeal for an extraordinary aspiration – putting leadership theory into practice

The National Society for the Prevention of Cruelty to Children (NSPCC)'s Full Stop campaign was launched in March 1999 with one single aim—to end cruelty to children. The Full Stop Appeal was designed to ensure that sufficient financial resources would be in place to support such an extraordinary aspiration. It is the biggest charitable appeal ever attempted in the UK and aims to raise £250m. This paper outlines how the charity applied the leadership model of fundraising to its strategy, the lessons it has learned over the past four years, and how successful it has been. Having already raised more than £100m, Full Stop has broken new ground in its sector, revolutionised the NSPCC's fundraising capacity and, more importantly, has had far‐reaching consequences for its mission to end cruelty to children. Copyright © 2003 Henry Stewart Publications     

AN EXAMINATION OF THE SMALL-FIRM EFFECT ON THE BASIS OF SKEWNESS PREFERENCE

This paper tests the hypothesis that the small-firm effect can be explained on the basis of investor preference for positive skewness. Traditional stochastic dominance methodology is extended to consider portfolios including variable weights of investment in a riskless asset. Including a riskless asset provides the result that small-firm portfolios stochastically dominate all other portfolios. This result, which is derived on the basis of 19 years of monthly returns, indicates that the small-firm effect cannot be fully attributed to tax effects, benchmark error, or incorrect assumptions of the CAPM about investor risk aversion.     

Technical change in branch banking at the Midland Bank, 1945-75

This article examines mechanisation and computerisation in the Midland Bank from 1945 to 1975. It concentrates on the human resources available to the bank to manage technical change. The Midland was slow to realise the full potential of mechanisation but introduced computers very successfully. Batch-processing, second generation systems were introduced in major conurbations, producing staff savings and reliable performance without disrupting work practices: However, the Midland developed limited specialist management resources, in part because the ease of early computerisation. Short of specialist managers, the Midland was unable to manage the huge leap in complexity associated with third generation systems. Accordingly, the introduction of on-line, real-time computing was badly delayed and the Midland board henceforth adopted a more conservative approach to technical change.