Estimating corporate bankruptcy forecasting models by maximizing discriminatory power

Review of Quantitative Finance and Accounting - In this paper, we estimate coefficients of bankruptcy forecasting models, such as logistic and neural network models, by maximizing their...     

Liquidity and Market Structure

Market liquidity is modeled as being determined by the demand and supply of immediacy. Exogenous liquidity events coupled with the risk of delayed trade create a demand for immediacy. Market makers supply immediacy by their continuous presence and willingness to bear risk during the time period between the arrival of final buyers and sellers. In the long run the number of market makers adjusts to equate the supply and demand for immediacy. This determines the equilibrium level of liquidity in the market. The lower is the autocorrelation in rates of return, the higher is the equilibrium level of liquidity.     

Non-normal bivariate densities with normal marginals and linear regression functions *

Summary It is well known that for a bivariate density in order to be bivariate normal, the possession of univariate normal marginal densities alone is not sufficient. In this paper it will be shown by means of some counterexamples that the additional requirement of linearity of the regression functions does not supply a sufficient condition either.     

Strategic planning to drive integrated continuous improvement

This case study describes how one company involved multiple levels of all functions to develop a comprehensive strategic plan that drives the continuous improvement initiative. The process involves clearly defining a mission, assessing the current situation, developing goals designed to achieve a preferred future status, and establishing the specific tactics to move toward that preferred future. The plan then drives integrated efforts throughout the organization to help manage the business of providing the highest quality products and services to meet current and anticipated customer requirements.     

Benevolent leadership and follower performance: The mediating role of leader–member exchange (LMX)

This study examines leader?Cmember exchange (LMX) as a mediator of the relationship between benevolent leadership and follower task performance and extra-role performance. Using a sample of 223 leader?Cmember dyads in a nonprofit organization in the People??s Republic of China, results indicate that benevolent leadership and LMX are positively related to follower task performance and organizational citizenship behavior towards the organization (OCBO). Findings also support that LMX partially mediates the relationship between benevolent leadership and follower task performance as well as fully mediates the relationship between benevolent leadership and OCBO. Implications for the theory and practice of leadership in Asia are discussed.     

FUNDAMENTALS OF ACCOUNTING/ECONOMIC/FINANCIAL EVALUATION

A major assumption in inventory theory in general and in the area of price changes in particular is that the demand for an item is fixed. It is possible that the reduction in price may result in an increase in demand. In fact this is a reason for the sale offered by many organizations. In this paper we use the familiar net present value approach commonly used in financial decision making to analyze and formulate optimal inventory ordering policies. This approach is more accurate and straight-forward than the average annual cost method that is usually used for comparison of alternative inventory policies.