Beyond market timing theory

2018 ◽  
Vol 35 (4) ◽  
pp. 458-480
Author(s):  
Subramanian Iyer ◽  
Siamak Javadi
Keyword(s):  
Capital Market ◽  
Small Firms ◽  
Market Timing ◽  
Financial Policy ◽  
Managerial Ability ◽  
Cash Balance ◽  
Content Type ◽  
Speed Of Adjustment ◽  
A Value ◽  
Significant Difference

PurposeThis study aims to examine the behavior of cash raised through market timing efforts and the success of such efforts in creating value to shareholders.Design/methodology/approachIt is shown that in two quarters, subsequent to raising equity, cash balance of market timers is higher but after that, there is no significant difference between timers and non-timers. Results of speed of adjustment regressions indicate that market timers move faster toward their target cash levels.FindingsMarket timers are small firms that suffer from asymmetric information. They have limited access to capital market, and raising external capital is an opportunity that should be timed. The results suggest that, on average, these firms are managed by more able executives, who are 10 per cent more likely to time the market; however, it is found that timing efforts are unsuccessful in creating value to shareholders even after controlling for the mitigating effect of managerial ability. Subsequent to market timing, on average, market timers earn significantly lower abnormal return over different holding periods relative to their comparable non-timer counterparts.Originality/valueOverall, the results undermine the validity of market timing as a value-maximizing financial policy.

Performance evaluation of equity unit trusts in South Africa

2017 ◽  
Vol 43 (3) ◽  
pp. 379-402 ◽  
Author(s):  
Bonolo Maggie Thobejane ◽  
Beatrice D. Simo-Kengne ◽  
John W. Muteba Mwamba
Keyword(s):  
South Africa ◽  
Market Timing ◽  
Rank Correlation ◽  
Stock Selection ◽  
Managerial Ability ◽  
Cross Sectional ◽  
Content Type ◽  
Weak Evidence ◽  
Timing Ability ◽  
Portfolio Managers

Purpose The purpose of this paper is to evaluate the performance of 191 equity unit trusts in an emerging market, South Africa over the period from February 2006 to January 2016, which captures different market conditions (pre-global financial crisis, crisis and recovery periods). Besides testing for managerial ability, both cross-sectional regression and the non-parametric rank correlation test are used to test whether the performance generated by unit trusts does persist. Design/methodology/approach To evaluate the managerial ability of portfolio managers, two widely used methods, the Treynor-Mazuy (1966) model and Henriksson-Merton (1981) model, are employed. Both models test whether portfolio managers have stock selection and market timing ability. The cross-sectional regression and the rank correlation test are implemented which account for both parametric and non-parametric approaches of persistence testing, respectively. Findings Weak evidence of stock selection as well as market timing ability was found. Moreover, most of the unit trusts are reported to have insignificant coefficients. When testing for performance persistence using returns, the Sharpe ratio and the Sortino ratio as performance metrics, the overall results also revealed weak evidence of persistence that is equally spread across winning and losing funds. Originality/value While research on unit trusts’ performance has been conducted in emerging economies, little has been done in testing for managerial ability in general and in South Africa in particular. Moreover, the research tends to focus more on one class – Equity General. This paper extends the performance literature by testing whether portfolio managers in the South African equity unit trusts industry have stock selection and market timing ability.

Value generation in B2B contexts: the SMEs’ perspective

2015 ◽  
Vol 27 (3) ◽  
pp. 297-317 ◽  
Author(s):  
Lourdes Pérez ◽  
Jesús Cambra-Fierro
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Value Appropriation ◽  
Content Type ◽  
A Value ◽  
Novel Concept ◽  
To Receive ◽  
The Relationship ◽  
Asymmetric Relationships

Purpose – The aim of this paper is to understand the process of value creation in business-to-business (B2B) contexts from the perspective of small- and medium-sized firms (SMEs). Small businesses are challenged to compete and collaborate with larger firms. While the “sharks” dilemma (often the most dangerous sharks also have the most valuable resources) focuses on specific defences, the authors emphasize a value generation perspective. Design/methodology/approach – The concept of asymmetric relationships is taken as a reference and examined using a longitudinal multi-case study. Findings – The authors results demonstrate how small firms not always assume an inferior, defensive position. Ambitious and growth-oriented SMEs learn to collaborate with larger partners and exhibit a proactive attitude towards relationship management. They understand the importance of developing social ties. They foster frequent and informal communication with their customers, favouring personal visits as a means to receive advice for directing their research efforts and exchange information and views. Such ties help them to develop shared plans and goals. Research limitations/implications – In asymmetric relationships, partner selection models should help firms to concentrate their efforts in a reduced group of key partners. These models should include not only economic performance indicators – variables such as flexibility and autonomy – but also innovation and improvement in processes, image, prestige and positioning, access to markets and stability. Originality/value – The authors found insight into a novel concept: dual-value appropriation, where partners do not split the pie of the total value generated, as frequently proposed in the literature, but fully appropriate a different and unique value from the relationship. The authors further highlight the important role played by the committed champions in developing communication and trust.

Does dynamic trade-off theory explain Portuguese SME capital structure decisions?

2017 ◽  
Vol 24 (3) ◽  
pp. 485-502 ◽  
Author(s):  
Filipe Sardo ◽  
Zelia Serrasqueiro
Keyword(s):  
Capital Structure ◽  
High Speed ◽  
Small Firms ◽  
Trade Off ◽  
Content Type ◽  
Speed Of Adjustment ◽  
Two Samples ◽  
Structure Adjustment ◽  
Negative Effect ◽  
Target Ratio

Purpose The purpose of this paper is to analyse if capital structure decisions of small- and medium-sized Portuguese firms are in accordance with the predictions of dynamic trade-off theory, more precisely, the speed of adjustment of short-term debt (STD) and long-term debt (LTD) towards the respective target debt ratios. Design/methodology/approach Based on two samples of Portuguese firms, 1,377 small-sized firms and 811 medium-sized firms, dynamic estimators were used for the treatment of data obtained from the Amadeus database for the period 2007-2011. Findings The results indicate that small- and medium-sized firms adjust their STD and LTD ratios towards the respective target ratios. Small- and medium-sized firms present a high-speed adjustment towards the target STD ratio, suggesting that both types of firm face costs of deviating from the target capital structure, which are, probably, greater than the costs of adjustment associated with STD. However, considering the distance from the target ratio as a determinant of the adjustment speed, the results show the predominance of the negative effect of the costs of adjustment on capital structure adjustment speeds. Originality/value The results obtained for the speed of adjustment of STD and LTD, in a recession context, show that for small firms and medium-sized firms, mainly for the former, the costs of external market transactions are prohibitively high, slowing the speed of adjustment towards the target capital structure.

Trade credit dynamics during the phases of the business cycle – a value chain perspective

2016 ◽  
Vol 21 (3) ◽  
pp. 363-380 ◽  
Author(s):  
Harri Lorentz ◽  
Tomi Solakivi ◽  
Juuso Töyli ◽  
Lauri Ojala
Keyword(s):  
Business Cycle ◽  
Value Chain ◽  
Small Firms ◽  
Trade Credit ◽  
Task Interdependence ◽  
Working Capital ◽  
Content Type ◽  
A Value ◽  
The Business Cycle

Purpose The purpose of this paper is to provide evidence of how the business cycle affects net-trade-credit and its components in firms on different tiers of the value chain, including retail, wholesale and two consecutive manufacturing tiers. Design/methodology/approach Data were collected by the means of four surveys in the years 2006, 2009, 2012 and 2014, representing different phases of the business cycle, that is, from strong economic growth to a deep recession and on to slow recovery and finally into decline. Descriptive statistics and three ANOVA models were used in the analysis of the data. Findings The distinctive profile of each value chain tier appears to have an effect on tier-specific trade credit dynamics. Overall, upstream positioned firms and small firms are likely to experience a decline in the net-trade-credit during uncertain economic times. The type of task interdependence between tiers also appears to affect trade credit dynamics in some tiers of the value chain. Furthermore, initiated by recession, certain trade credit dynamics in the value chain suggest a mechanism that transmits an increased working capital burden from customers to suppliers along the value chain. Research limitations/implications Results are based on survey research with a limited amount of respondents and geographical coverage, implying limited generalisability. The use of implicit measures limits the conclusiveness of the research. Originality/value The conventional perception of the power-based determination of trade credit policies is complemented with a value chain-related task interdependence perspective. The results of this paper also highlight that a more holistic value chain perceptive on working capital management would be more sustainable in comparison to firm-centric approaches.

scholarly journals Engaged scholarship

2017 ◽  
Vol 24 (4) ◽  
pp. 1009-1027 ◽  
Author(s):  
Amon Simba ◽  
Nathanael Ojong
Keyword(s):  
Collaborative Learning ◽  
Small Firms ◽  
Academic Research ◽  
Actor Network Theory ◽  
Theoretical Framework ◽  
Theory And Practice ◽  
Engaged Scholarship ◽  
Content Type ◽  
A Value ◽  
Practical Implications

Purpose The purpose of this paper is to introduce a multi-layered theoretical framework to enable engaged scholarship to develop as a practice in entrepreneurship and small business research. To do so, it illuminates the salient features of engaged scholarship, collaborative learning and actor-network theory (ANT). Design/methodology/approach The paper follows a narrative or traditional literature review design. Specifically, it adopts a thematic approach for summarising and synthesising a body of literature on engaged scholarship, collaborative learning and ANT with the view to develop a new multi-layered theoretical framework. Findings Applying the theory of engaged scholarship to pivot entrepreneurship/SME research provides scholars with an opportunity to unlock the theory vs practice paradox. Moreover, engaged scholarship offers valuable instructions for encouraging interactionism between entrepreneurship researchers and practitioners as well as reconcile their polarised views. Co-production and co-creation of knowledge addresses the concerns often raised by the practitioner community regarding the relevance and applicability of academic research to practice. Practical implications The proposed multi-layered framework provides entrepreneurship researchers, and the practitioner community with a taxonomy to use to encourage a joint approach to research. Developing deep partnerships between academics and practitioners can produce outcomes that satisfy the twin imperatives of scholarship that can be of high quality as well as a value to society. Originality/value The paper advances the theory and practice of engaged scholarship in new ways that are not common in entrepreneurship/SME research. This enables engaged scholarship to develop as a practice in entrepreneurship and small firms’ research. Through applying the proposed multi-layered framework in research, academics can deliver fully developed solutions for practical problems. The framework is useful in the theory vs practice and entrepreneurship researchers vs practitioner debates.

Gamma knife radiosurgery for intracranial metastatic melanoma: a 6-year experience

2002 ◽  
Vol 97 ◽  
pp. 494-498 ◽  
Author(s):  
Jorge Gonzalez-martinez ◽  
Laura Hernandez ◽  
Lucia Zamorano ◽  
Andrew Sloan ◽  
Kenneth Levin ◽  
...  
Keyword(s):  
Prognostic Factors ◽  
Brain Metastases ◽  
Metastatic Melanoma ◽  
Gamma Knife Radiosurgery ◽  
Tumor Control ◽  
Karnofsky Performance Scale ◽  
Content Type ◽  
Significant Difference ◽  
The Mean ◽  
Fine Print

Object. The purpose of this study was to evaluate retrospectively the effectiveness of stereotactic radiosurgery for intracranial metastatic melanoma and to identify prognostic factors related to tumor control and survival that might be helpful in determining appropriate therapy. Methods. Twenty-four patients with intracranial metastases (115 lesions) metastatic from melanoma underwent radiosurgery. In 14 patients (58.3%) whole-brain radiotherapy (WBRT) was performed, and in 12 (50%) chemotherapy was conducted before radiosurgery. The median tumor volume was 4 cm3 (range 1–15 cm3). The mean dose was 16.4 Gy (range 13–20 Gy) prescribed to the 50% isodose at the tumor margin. All cases were categorized according to the Recursive Partitioning Analysis classification for brain metastases. Univariate and multivariate analyses of survival were performed to determine significant prognostic factors affecting survival. The mean survival was 5.5 months after radiosurgery. The analyses revealed no difference in terms of survival between patients who underwent WBRT or chemotherapy and those who did not. A significant difference (p < 0.05) in mean survival was observed between patients receiving immunotherapy or those with a Karnofsky Performance Scale (KPS) score of greater than 90. Conclusions. The treatment with systemic immunotherapy and a KPS score greater than 90 were factors associated with a better prognosis. Radiosurgery for melanoma-related brain metastases appears to be an effective treatment associated with few complications.

Gamma knife radiosurgery for metastatic brain tumors from lung cancer: a comparison between small cell and non—small cell carcinoma

2002 ◽  
Vol 97 ◽  
pp. 484-488 ◽  
Author(s):  
Toru Serizawa ◽  
Junichi Ono ◽  
Toshihiko Iichi ◽  
Shinji Matsuda ◽  
Makoto Sato ◽  
...  
Keyword(s):  
Lung Cancer ◽  
Brain Tumors ◽  
Gamma Knife ◽  
Gamma Knife Radiosurgery ◽  
Small Cell ◽  
Metastatic Brain Tumors ◽  
Cell Lung Carcinoma ◽  
Content Type ◽  
Significant Difference ◽  
Fine Print

Object. The purpose of this retrospective study was to evaluate the effectiveness of gamma knife radiosurgery (GKS) for the treatment of metastatic brain tumors from lung cancer, with particular reference to small cell lung carcinoma (SCLC) compared with non-SCLC (NSCLC). Methods. Two hundred forty-five consecutive patients meeting the following five criteria were evaluated in this study: 1) no prior brain tumor treatment; 2) 25 or fewer lesions; 3) a maximum of three tumors with a diameter of 20 mm or larger; 4) no surgically inaccessible tumor 30 mm or greater in diameter; and 5) more than 3 months of life expectancy. According to the same treatment protocol, large tumors (≥ 30 mm) were surgically removed and the other small lesions (< 30 mm) were treated with GKS. New lesions were treated with repeated GKS. Chemotherapy was administered, according to the primary physician's protocol, as aggressively as possible. Progression-free, overall, neurological, qualitative, and new lesion—free survival were calculated with the Kaplan—Meier method and were compared in the SCLC and NSCLC groups by using the log-rank test. The poor prognostic factors for each type of survival were also analyzed with the Cox proportional hazard model. Conclusions. Tumor control rate at 1 year was 94.5% in the SCLC group and 98% in the NSCLC group. The median survival time was 9.1 months in the SCLC group and 8.6 months in the NSCLC group. The 1-year survival rates in the SCLC group were 86.5% for neurological survival and 68.9% for qualitative survival; those in the NSCLC group were 87.9% for neurological and 78.9% for qualitative survival. The estimated median interval to emergence of a new lesion was 6.9 months in the SCLC group and 9.8 months in the NSCLC group. There was no significant difference between the two groups for any type of survival; this finding was verified by multivariate analysis. The results of this study suggest that GKS appears to be as effective in treating brain metastases from SCLC as for those from NSCLC.

PENGARUH PENDIDIKAN KESEHATAN REPRODUKSI PADA PEER GROUP (TEMAN SEBAYA) TERHADAP PENGETAHUAN DAN PERSEPSI REMAJA TENTANG PENDEWASAAN USIA PERKAWINAN DI SMA NEGERI 1 KECAMATAN NAMORAMBE KAB. DELI SERDANG 2018

2020 ◽  
Vol 1 (2) ◽  
pp. 56-66
Author(s):  
Irma Linda
Keyword(s):  
Standard Deviation ◽  
Health Education ◽  
Reproductive Health ◽  
Peer Group ◽  
Peer Groups ◽  
A Value ◽  
Significant Difference ◽  
Reproductive Health Education ◽  
The Mean ◽  
Adolescent Perceptions

Background: Early marriages are at high risk of marital failure, poor family quality, young pregnancies at risk of maternal death, and the risk of being mentally ill to foster marriage and be responsible parents. Objective: To determine the effect of reproductive health education on peer groups (peers) on the knowledge and perceptions of adolescents about marriage age maturity. Method: This research uses the Quasi experimental method with One group pre and post test design, conducted from May to September 2018. The statistical analysis used in this study is a paired T test with a confidence level of 95% (α = 0, 05). Results: There is an average difference in the mean value of adolescent knowledge between the first and second measurements is 0.50 with a standard deviation of 1.922. The mean difference in mean scores of adolescent perceptions between the first and second measurements was 4.42 with a standard deviation of 9.611. Conclusion: There is a significant difference between adolescent knowledge on the pretest and posttest measurements with a value of P = 0.002, and there is a significant difference between adolescent perceptions on the pretest and posttest measurements with a value of p = 0.001. Increasing the number of facilities and facilities related to reproductive health education by peer groups (peers) in adolescents is carried out on an ongoing basis at school, in collaboration with local health workers as prevention of risky pregnancy.

THE USE OF HISTORICAL DATA IN ACCOUNTING RESEARCH: THE CASE OF THE AMERICAN SUGAR REFINING COMPANY

1997 ◽  
Vol 24 (2) ◽  
pp. 1-24 ◽  
Author(s):  
Robert Bricker ◽  
Kevin Brown
Keyword(s):  
Capital Market ◽  
Historical Data ◽  
Abnormal Returns ◽  
Deep Understanding ◽  
Historical Record ◽  
Historical Period ◽  
Financial Condition ◽  
A Value ◽  
Time Period ◽  
And Performance

In 1908, the American Sugar Refining Company (ASR) reversed its long-held policy of secrecy as to its financial condition and performance. Prior work, applying contemporary capital market methods to ASR security price data of that period, has suggested a value to ASR shareholders of this policy reversal. This paper examines the historical record of that time and presents additional evidence on this matter, particularly in terms of identifying potentially confounding events occurring during the period under study. The results of this analysis suggest a difficulty in attributing observed abnormal returns to ASR's secrecy policy reversal on the basis of the results obtained from applying capital markets methods. This analysis is useful for scholars interested in applying modern capital market methods to historical data. It highlights the significance of the possible effects of contemporaneous historical events, focuses attention on the importance of a deep understanding of the historical period studied, and suggests a value in combining historical and empirical-markets methods to gain a richer understanding of the events and conditions in the time period under study.

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