The analysis focuses on key concepts associated with the extensive CVP under uncertainty literature which has developed since the seminal contribution by Jaedicke and Robichek (1964). For the most part the previous literature has not incorporated economic functions relating production quantity...

This paper tests the predictions made by Signaling Theory against the competing Price-Irrelevance Hypothesis (Eckbo and Masulis, 1992). Signaling Theory suggests that the issue price of a security provides a signal of quality of the issuing firm. In contrast, the Price-Irrelevance Hypothesis...

This paper investigates the time-series behavior of stock returns for seven Asian stock markets. In most cases, higher average returns appear to be associated with a higher level of volatility. Testing the relationship between stock returns and unexpected volatility, the evidence shows that four...

When used in conjunction with traditional R&D expenditure information, scientific information on patent quality appear to give investors a more useful basis upon which to judge the economic merit of the firm's R&D effort. This complementary relation suggests that consistent disclosure of patent...

This paper investigates the financial performance of Chinese banks by using financial ratio analysis. The analysis shows that the low profitability of state-owned commercial banks results from their higher ratio for non-interest expenses and lower interest margin than joint-equity banks. The...

This study examines the responses of three popular futures interest-rate spreads--the MOB (Municipals over Treasury bonds), the NOB (Notes over Treasury bonds), and the TED (Treasury Bills over Eurodollars) to macroeconomic news. We find responses to differ across the three spreads. The most...

Inner reserves, which allow banks to report a higher or lower earnings at managerial discretion, bring into focus the ability of the market to make an informed judgment of banks' performance. This study examines the market response to the disclosure and elimination of inner reserves by Hong Kong...

This paper examines the ability of rational economic factors to explain stock market volatility. A simple model of the economy under uncertainty identifies four determinants of stock market volatility: uncertainty about the price level, the riskless rate of interest, the risk premium on equity...

Because of transactions costs and investor/manager information asymmetries, internally generated funds should be less costly than funds raised by issuing common shares. This suggests that as firms use more internal funds relative to external equity, their costs of equity capital will fall and...