Comovement and investment banking networks

We test the hypothesis that investment banking networks affect stock prices and trading behavior. Consistent with the notion that investment banks serve as information hubs for segmented groups of investors, the stock prices of firms that use the same lead underwriter during their equity offerings tend to move together. We also find that when firms switch underwriters between their initial public offering (IPO) and a seasoned equity offering (SEO), they comove less with the stocks associated with the old bank and more with the stocks associated with the new bank. This change in comovement is greater for stocks completing their first SEO and for those experiencing large changes in institutional ownership.     

HOME OWNERSHIP AND THE WEALTH POSITION OF BLACK AND WHITE AMERICANS*

This paper examines the wealth position of blacks relative to whites, on the basis of data in the Survey of Economic Opportunity. The analysis indicates that at the same levels of both income and wealth blacks consistently invest more in consumer durables, especially housing, than do whites. The paper then explores possible explanations for this finding, suggesting that these investment differences are not solely due to the income and wealth position of blacks, but may be due to a smaller set of investment opportunities institutionally fostered by discriminatory forces.     

Co-operation or Control? Capital Restructuring and Labour Relations on the Docks

The abolition of the National Dock Labour Scheme in July 1989 resulted in a massive restructuring of Britain's ports which in many respects has mirror-imaged that of the rest of the economy over the previous decade. In this context, the growth of small firms in the port transport industry since 1989, and in particular the emergence of workers' co-operatives, can only be explained as a process through which capital has sought to regain or strengthen control over the labour process and offset the (highly variable) costs of fluctuating labour demand. The result has been increased productivity and control for the port authorities that own Britain's ports.     

Price behavior of deep discount bonds

With rising interest rate trends, deep discount bonds are more commonly observed. The traditional view has been that, for a given yield change, the changes in bond prices are larger, the longer the maturity. This note shows that, for a deep discount bond, there is a switchover point beyond which the traditional view no longer holds. This is true for percentage as well as for dollar price changes. The traditional view should be corrected to avoid misleading effects on the management of bond portfolios.     

Using intuition to manage organizations in the future

The last major undeveloped resource may be the human brain. In the past, managers relied on their left (analytical) brains. The future offers the possibility of using our right or intuitive brains also, so that the best managers work with full, not half, power.