During long periods of history, countries have pegged their currencies to an international standard (such as gold or the U.S. dollar), severely restricting their ability to create money and affect output, prices, or government revenue. Nevertheless, countries generally have maintained their own...

This study examines the changes in insurance firm value following the 1994 Los Angeles earthquake. While prior studies found that the 1989 San Francisco earthquake was associated with an increase in earthquake insurers’ firm value, the findings of this study indicate that earthquake firms...

Firms are able to reduce Þnancing costs and/or increase the funds available for expansion by minimizing the amount of funds tied up in current assets. We provide insights into the performance of surveyed Þrms across key components of working capital management by using the CFO magazineÕs...

This paper examines the reaction of insurance stock prices to the 1 989 Loma Prieta earthquake. Three theories about the perceived future operating performance of insurance companies following the earthquake are tested: (1) substantial cash outflows due to the claims, (2) abandonment of...

Purpose – The purpose of this paper is to examine the contemporaneous relationship between changes in corporate reputations and stock prices. Design/methodology/approach – The Harris Interactive Reputation QuotientTM is used as a measure of corporate reputation. Stock return and risk...

Purpose – The purpose of this paper is to examine operating characteristics, risk and performance measures of all available vehicles for index investing in US bond funds during the 15-year period from April, 1994 to March, 2009. The results shed light on the important issue of bond index...

The key feature of endogenous growth models is that they imply that permanent changes in government policy can have permanent effects on growth rates. In this paper, we develop and implement an empirical framework to test this implication. In a regression of growth rates on current and lagged...

We consider a simple environment in which individuals receive income shocks that are unobservable to others and can privately store resources. We show that this ability to privately store can undercut the ability to shift resources across individuals to the extent that the efficient allocation...

We consider the large class of dynamic games in which each player’s actions are unobservable to the other players, and each player’s actions can influence a state variable that is unobservable to the other players. We develop an algorithm that solves for the subset of sequential equilibria...