Showing 1 - 10 of 569
We examine a firm's price-to-earnings (P/E) and price-to-book (P/B) ratios in a model of sequential capacity investments. Our analysis focuses on several key variables, including past and anticipated future investment growth, economic profitability and accounting conservatism, which jointly...
Persistent link: https://www.econbiz.de/10011183973
This note provides the proof of proposition 5 in our paper titled "Dynamics of Rate-of-Return Regulation."
Persistent link: https://www.econbiz.de/10008584399
Under Rate-of-Return regulation, a firm's product prices are constrained by the requirement that investors do not earn more an allowable return on the firm's assets. This paper examines the dynamic properties of the Rate-of-Return regulation process when the regulated firm periodically...
Persistent link: https://www.econbiz.de/10008802407
In certain circumstances, insider trades such as private transactions between executives and their firms could be disclosed after the end of the firm's fiscal year, on a Form-5 filing. We find that insider sales disclosed in such a delayed manner for large firms are predictive of negative future...
Persistent link: https://www.econbiz.de/10004999369
<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>This paper shows that major components of modern manufacturing processes, such as inventory management and cross-training, play a significant control role. In our model, workers possess information that is critical to efficient ongoing operations. An organizational design that motivates...
Persistent link: https://www.econbiz.de/10005023839
Using detailed data on defect rates and quality costs from twelve plants of a Fortune 500 company, we provide the first direct tests of predictions arising from two sets of dynamic quality-based learning models. We find greater support for quality-based learning models that assume learning is a...
Persistent link: https://www.econbiz.de/10009197332
Arguing that GAAP is ill suited for estimating the future profitability of intangibles, the accounting literature (e.g., Kaplan and Norton 1996, Lev 2001) has recently proposed alternative measurement models. These models view intangibles as composed of a set of fundamental business activities...
Persistent link: https://www.econbiz.de/10009208604
We study trading behavior and the properties of prices in informationally complex markets. Our model is based on the single-period version of the linear-normal framework of Kyle (1985). We allow for essentially arbitrary correlations among the random variables involved in the model: the true...
Persistent link: https://www.econbiz.de/10011183901
Persistent link: https://www.econbiz.de/10011183902
Using high resolution data, we show that short-sellers (SSs) systematically profit from mutual fund (MF) flows. At the daily level, SSs trade strongly in the opposite direction to MFs. This negative relation is associated with the expected component of MF flows (based on prior days' trading), as...
Persistent link: https://www.econbiz.de/10011183903