Philip Fisher’s sense of numbers

2014 ◽  
Vol 6 (3) ◽  
pp. 302-331 ◽  
Author(s):  
Carlo Massironi
Keyword(s):  
Conceptual Analysis ◽  
Equity Valuation ◽  
Individual Investors ◽  
Content Type ◽  
Business Valuation ◽  
Valuation Model ◽  
Valuation Process ◽  
Qualitative Models ◽  
Decision Making Processes ◽  
The Subject

Purpose – This paper aims to propose an account of the use of numbers and mathematical formulae and, more generally, of the quantitative aspects in the qualitative equity valuation model of the American investor Philip A. Fisher who is considered to be one of the fathers of the qualitative equity valuation models. Design/methodology/approach – A Conceptual analysis was conducted (Glasersfeld, 1992) of the four volumes published by Fisher between 1954 and 1980 (1958, 1960, 1975, 1980) in relation to his equity valuation process. On the basis of this analysis, a modelization of this author’s perspective on quantitative instruments was built. Findings – A modelization to use quantitative data in a qualitative equity valuation model that is sufficiently detailed and useful for an asset manager is proposed. Originality/value – What is propose is a qualitative analysis of quantitative elements in the thought of a qualitative author on the subject of equity valuation. It is believed that this paper could be of interest to all those who use or are involved in the development of qualitative models of equity valuation or business valuation. This work is also an example of how conceptual analysis – generally employed in the field of mathematics education research – can be used to build descriptive models of decision-making processes of individual investors, models designed to enable the reproduction/approximation of the conceptual operations of the investor.

Kenneth Fisher’s heuristics

2016 ◽  
Vol 8 (2) ◽  
pp. 130-148
Author(s):  
Carlo Massironi ◽  
Giusy Chesini
Keyword(s):  
Decision Making ◽  
Conceptual Analysis ◽  
Investment Decision ◽  
Real Life ◽  
Human Action ◽  
Theory Of Knowledge ◽  
Constructivist Theory ◽  
Individual Investors ◽  
Content Type ◽  
Radical Constructivist

Purpose The authors are interested in building descriptive – real life – models of successful investors’ investment reasoning and decision-making. Models designed to be useful for trying to replicate and evolve their reasoning and decision-making. The purpose of this paper, a case study, is to take the substantial material – on innovating the investing tools – published in four books (2006/2012, 2010, 2011, 2015) by a US stock investor named Kenneth Fisher (CEO of Fisher Investments, Woodside, California) and sketch Fisher’s investment innovating reasoning model. Design/methodology/approach To sketch Fisher’s investment innovating reasoning model, the authors used the Radical constructivist theory of knowledge, a framework for analyzing human action and reasoning called Symbolic interactionism and a qualitative analytic technique called Conceptual analysis. The authors have done qualitative research applied to the study of investment decision-making of a single professional investor. Findings In the paper, the authors analyzed and described the heuristics used by Fisher to build subsequent generations of investing tools (called by Fisher “Capital Markets Technology”) to try to make better forecasts to beat the stock market. The authors were interested in studying the evolutive dimensions of the tools to make forecasts of a successful investor: the “how to build it” and “how to evolve it” dimension. Originality/value The paper offers an account of Kenneth Fisher’s framework to reason the innovation of investing tools. The authors believe that this paper could be of interest to professional money managers and to all those who are involved in the study and development of the tools of investing. This work is also an example of the use of the Radical constructivist theory of knowledge, the Symbolic interactionist framework and the Conceptual analysis to build descriptive models of investment reasoning of individual investors, models designed to enable the reproduction/approximation of the conceptual operations of the investor.

Valuation of the worldwide commodities sector

2017 ◽  
Vol 34 (4) ◽  
pp. 555-579 ◽  
Author(s):  
Marcelo Bianconi ◽  
Joe Akira Yoshino
Keyword(s):  
Ordinary Least Squares ◽  
Equity Valuation ◽  
Content Type ◽  
Return On Equity ◽  
Value Stocks ◽  
Valuation Model ◽  
Volatility Index ◽  
Growth Stocks ◽  
The Impact ◽  
New Evidence

Purpose This paper aims to empirically investigate the market-to-book/return on equity valuation model. Design/methodology/approach The authors use a worldwide commodities sector panel of 6,323 firms from 69 countries with annual observations from 1999 to 2010 to estimate panel ordinary least squares (OLS), instrumental variables (IV) and quantile regressions. They also measure the impact of return on equity on market-to-book uncovering value versus growth and positive versus negative profitability dimensions. Findings The new evidence is that the impact of return on equity on market-to-book is time-varying and declining across the years in the sample. There is positive and strong persistence in the market-to-book of companies in this sector worldwide, but value stocks are more persistent than growth stocks. The coefficient of return on equity is positive at the 10th percentile of the market-to-book, but it becomes negative for growth stocks at 90th percentiles. Conditional on negative profitability, the coefficient of return on equity on market-to-book is negative for growth stocks. The effect of the S&P500 volatility index (VIX) is negative, significant and large in magnitude, but declines in absolute value, as the quantiles increase toward the upper 90th percentile. Practical implications The commodities sector is important for countries that depend on it for development. Originality/value The paper provides a rich panel data approach, and the market-to-book/return on equity valuation model is naturally applied to the commodities sector, as this sector tends to have more tangibles relative to intangibles.

Trauma, time and information

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ronald E. Day
Keyword(s):  
Design Methodology ◽  
Conceptual Analysis ◽  
Trauma Theory ◽  
Trauma Therapy ◽  
Content Type ◽  
Temporal Models ◽  
The Subject

PurposeIn this article the author would like to discuss information and the causal-temporal models as discussed in trauma theory and reports from trauma therapy. The article discusses two modes of temporality and the role of narrative explanations in informing the subject as to their past and present.Design/methodology/approachConceptual analysis.FindingsInformation in trauma has different meanings, partly as a result of different senses of temporality that make up explanations of trauma in trauma theory. One important meaning is that of explanation itself as a cause or a therapeutic cure for trauma.Research limitations/implicationsThe research proposes that trauma and trauma theory need to be understood in terms of the role of explanation, with explanation being understood as persuasion. This follows the historical genealogy of trauma theory from its origins in hypnosis and psychoanalysis.Originality/valueThe article examines the possibility of unconscious information and its effects in forming psychological subjectivity.

The roles of accounting data in equity valuation: evidence from China

2015 ◽  
Vol 5 (1) ◽  
pp. 69-87 ◽  
Author(s):  
Tiandong Wang ◽  
Tianxi Zhang
Keyword(s):  
Explanatory Power ◽  
Balance Sheet ◽  
Equity Valuation ◽  
Accounting Standard ◽  
Accounting Data ◽  
Content Type ◽  
Valuation Model ◽  
Equity Value ◽  
Chinese Listed Companies

Purpose – The purpose of this paper is to examine the roles of earnings and book value (BV) in equity valuation. Design/methodology/approach – The authors apply model’s explanatory power to analyze the roles of accounting data and test the hypotheses empirically with a sample of Chinese listed companies between 2004 and 2010. Findings – The authors find that impact of accounting data on equity value is also dependent on profitability, but the behavior is non-monotonic. In the intermediate-profitability range, explanatory power of both earnings capitalization model and balance sheet model reach the peak, there are no significant differences between them. In the low-profitability range (small or negative profitability), explanatory power of balance sheet model is larger than earnings capitalization model. In the high-profitability range, explanatory power of balance sheet model is less than earnings capitalization model. Research limitations/implications – The results support that the role of BV is more stable in equity valuation. Moreover, this outcome provides reference for improving existing valuation model and setting accounting standard, and provides some empirical evidence for the practical application of BV in equity valuation. Originality/value – Existing studies treat earnings as main variable of equity valuation, and BV is only added as a supplement. This paper compares roles of accounting earnings and BV in equity valuation, especially investigates the influence of BV in equity valuation, and fills up the deficiency in the related literature.

DESCRIPTION OF THE PROPERTY VALUATION PROCESS IN POLISH CONDITIONS

2019 ◽  
Vol 20 (3) ◽  
pp. 61-73
Author(s):  
Piotr Kuraś
Keyword(s):  
Real Estate ◽  
Complex Problem ◽  
Point Of View ◽  
Sources Of Information ◽  
Polish Literature ◽  
The Real Estate ◽  
Property Valuation ◽  
Valuation Model ◽  
Valuation Process ◽  
The Subject

The study attempts to describe the property valuation process in the context of regulations in force In Poland. For this purpose, to this end, the current legal acts, professional standards of real estate appraisers as well as institutional and economic conditions were analyzed. The study starts with the characterization of the property at the subject of valuation, the types of determined values, then the silhouette of the real estate appraiser as a professional authorized to valuation of the property was presented. The most important part of the study, from the point of view of the study goal, is the description of the process of valuation of real estate in Polish conditions. This paper presents a general valuation model, which the difficult and complex problem of valuation presents in a comprehensive, consistent and logical way. Various research approaches have been used for the purpose of the study. Qualitative approach based on observation, interview, analysis of dispersed sources allowed to formulate research assumptions. Next, methods of scientific inference were used, mainly analysis and synthesis. In the paper, due to the aim, mainly the Polish literature on the subject was used as well as legal acts and other sources of information.

LITERARY ROMANTICISM AS A THEORETICAL ISSUE

2020 ◽  
pp. 19-27
Author(s):  
Vera V. Serdechnaia ◽  
Keyword(s):  
20Th Century ◽  
Conceptual Analysis ◽  
18Th Century ◽  
Theoretical Concept ◽  
Historical Research ◽  
Theoretical Issue ◽  
Main Research ◽  
Literary Process ◽  
History Of ◽  
The Subject

The article is devoted to the analysis of the concept of literary romanticism. The research aims at a refinement of the “romanticism” concept in relation to the history of the literary process. The main research methods include conceptual analysis, textual analysis, comparative historical research. The author analyzes the semantic genesis of the term “romanticism”, various interpretations of the concept, compares the definitions of different periods and cultures. The main results of the study are as follows. The history of the term “romanticism” shows a change in a number of definitions for the same concept in relation to the same literary phenomena. By the end of the 20th century, realizing the existence of significant contradictions in the content of the term “romanticism”, researchers often come to abandon it. At the same time, the steady use of the term “romanticism” testifies to the subject-conceptual component that exists in it, which does not lose its relevance, but just needs a theoretical refinement. Conclusion: one have to revise an approach to romanticism as a theoretical concept, based on the change in the concept of an individual in Europe at the end of the 18th century. It is the newly discovered freedom of an individual predetermines the rethinking for the image of the author as a creator and determines the artistic features of literary romanticism.

Teaching Resilience to People With Visual Disabilities

2018 ◽  
Vol 5 (1) ◽  
pp. 36
Author(s):  
Inger Solange Maitta Rosado ◽  
Jenmer Maricela Pinargote Ortega ◽  
Eva Alcivar Medranda ◽  
Elisa Ximena Coello Basurto
Keyword(s):  
Visual Impairment ◽  
Conceptual Understanding ◽  
Conceptual Analysis ◽  
Psychological Support ◽  
Visual Disability ◽  
Visual Disabilities ◽  
The Subject ◽  
Technical University

The objective of the research is to develop resilience in people with visual disabilities at the Technical University of Manabí. The work offers a conceptual analysis on visual disability in students. It deals with what is related to the conceptual understanding of resilience, where several authors who have studied the subject are analyzed. The resilient capacity of students with visual impairment and the importance of psychological support is analyzed. The importance of the intervention in resilience is exposed, where the content of the Manual of Intervention in Resilience of Eugenio Saavedra 2011 is analyzed. The results of the measurement of resilience are shown in the students of the Technical University of Manabí who suffer from a visual disability and the situation that could be verified after applying the work of training in resilience to said personnel. Finally, the conclusions of the work are exposed, where the relevance of the study is demonstrated and a group of recommendations is made based on the importance of the results obtained in the research.

The 2016 Police and Crime Commissioner elections

2017 ◽  
Vol 16 (2) ◽  
pp. 41-54 ◽  
Author(s):  
Peter Joyce
Keyword(s):  
Public Awareness ◽  
Primary Source ◽  
Source Material ◽  
Content Type ◽  
The Public ◽  
The Social ◽  
Key Issues ◽  
The Subject ◽  
The Government

Purpose The purpose of this paper is to analyse the 2016 elections for Police and Crime Commissioners (PCCs) and to compare them with those that took place in 2012. It seeks to evaluate the background of the candidates who stood for office in 2016, the policies that they put forward, the results of the contests and the implications of the 2016 experience for future PCC elections. Design/methodology/approach This paper is based around several key themes – the profile of candidates who stood for election, preparations conducted prior to the contests taking place, the election campaign and issues raised during the contests, the results and the profile of elected candidates. The paper is based upon documentary research, making particular use of primary source material. Findings The research establishes that affiliation to a political party became the main route for successful candidates in 2016 and that local issues related to low-level criminality will dominate the future policing agenda. It establishes that although turnout was higher than in 2012, it remains low and that further consideration needs to be devoted to initiatives to address this for future PCC election contests. Research limitations/implications The research focusses on the 2016 elections and identifies a number of key issues that emerged during the campaign affecting the conduct of the contests which have a bearing on future PCC elections. It treats these elections as a bespoke topic and does not seek to place them within the broader context of the development of the office of PCC. Practical implications The research suggests that in order to boost voter participation in future PCC election contests, PCCs need to consider further means to advertise the importance of the role they perform and that the government should play a larger financial role in funding publicity for these elections and consider changing the method of election. Social implications The rationale for introducing PCCs was to empower the public in each police force area. However, issues that include the enhanced importance of political affiliation as a criteria for election in 2016 and the social unrepresentative nature of those who stood for election and those who secured election to this office in these contests coupled with shortcomings related to public awareness of both the role of PCCs and the timing of election contests threaten to undermine this objective. Originality/value The extensive use of primary source material ensures that the subject matter is original and its interpretation is informed by an academic perspective.

Service decision-making processes at three New York state cooperative public library systems

2014 ◽  
Vol 35 (6/7) ◽  
pp. 418-432
Author(s):  
Xiaoai Ren
Keyword(s):  
Decision Making ◽  
New York ◽  
New York State ◽  
Public Library ◽  
Organizational Structures ◽  
Annual Reports ◽  
Content Type ◽  
York State ◽  
Decision Making Processes ◽  
And Cluster Analysis

Purpose – The purpose of this paper is to look at the organizational structure and service provisions of cooperative public library systems in New York State. The study also seeks to ask questions of how cooperative public library systems decide what services to provide. Design/methodology/approach – Descriptive statistics, factor analysis and cluster analysis were applied on New York State public library systems’ 2008 annual reports to generate quantitative profiles of public library systems and their service transactions. Three cooperative public library systems displaying different service features were purposefully selected for further study of their service decision-making processes. The face-to-face and phone interviews were adopted in the study. Findings – Research findings from this study provide information on specific service variations across cooperative public library systems. The findings also provide differences of service decision-making processes in addition to the factors that might cause these differences. Originality/value – This study adds knowledge of public library systems’ management and organizational structures, therefore fills a knowledge gap on public library systems. It can also serve as the baseline for future studies using newer annual report data and therefore to study the changing roles and services of cooperative public library systems in New York State.

Heuristic biases in investment decision-making and perceived market efficiency

2018 ◽  
Vol 10 (1) ◽  
pp. 85-110 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad ◽  
Faisal Mahmood
Keyword(s):  
Financial Markets ◽  
Market Efficiency ◽  
Negative Impact ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Investment Strategy ◽  
Individual Investors ◽  
Content Type ◽  
Specific Investment ◽  
The Relationship

Purpose This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange (PSX), and the perceived efficiency of the market. Most studies focus on well-developed financial markets and very little is known about investors’ behaviour in less developed financial markets or emerging markets. The present study contributes to filling this gap in the literature. Design/methodology/approach Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 143 investors trading on the PSX. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis. Findings The paper provides empirical insights into the relationship of heuristic biases, investment decisions and perceived market efficiency. The results suggest that heuristic biases (overconfidence, representativeness, availability and anchoring) have a markedly negative impact on investment decisions made by individual investors actively trading on the PSX and on perceived market efficiency. Research limitations/implications The primary limitation of the empirical review is the tiny size of the sample. A larger sample would have given more trustworthy results and could have empowered a more extensive scope of investigation. Practical implications The paper encourages investors to avoid relying on heuristics or their feelings when making investments. It provides awareness and understanding of heuristic biases in investment management, which could be very useful for decision makers and professionals in financial institutions, such as portfolio managers and traders in commercial banks, investment banks and mutual funds. This paper helps investors to select better investment tools and avoid repeating expensive errors, which occur due to heuristic biases. They can improve their performance by recognizing their biases and errors of judgment, to which we are all prone, resulting in a more efficient market. So, it is necessary to focus on a specific investment strategy to control “mental mistakes” by investors, due to heuristic biases. Originality/value The current study is the first of its kind, focusing on the link between heuristics, individual investment decisions and perceived market efficiency within the specific context of Pakistan.

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