Hedge Fund Characteristics and Performance Persistence: Evidence from 1996–2006

2015 ◽  
Vol 05 (02) ◽  
pp. 1550018 ◽  
Author(s):  
Pavitra Kumar
Keyword(s):  
Hedge Fund ◽  
Abnormal Returns ◽  
Performance Persistence ◽  
Past Performance ◽  
Long Run ◽  
Short And Long Term ◽  
And Performance ◽  
Using Data

This paper investigates the association between selected hedge fund characteristics and persistence in both positive and negative abnormal returns using data from the TASS database between 1996 and 2006. I find that higher fund age, size and illiquidity, after controlling for risk, generate stronger persistence in both short- and long-term positive abnormal returns, or good performance. Therefore, these features appear to signal superior managerial and/or fund skill. Furthermore, funds with higher incentive fees display greater long-run persistence in both good and bad performance, net of fees. These results suggest that incentive fees are increased by both skilled and unskilled, but lucky, funds following good past performance.

scholarly journals The Short- And Long-Term Performance Of Privatization Initial Public Offerings In Europe

2013 ◽  
Vol 29 (4) ◽  
pp. 1189
Author(s):  
Haykel Hamdi ◽  
Duc Khuong Nguyen ◽  
Hassan Obeid
Keyword(s):  
Initial Public Offerings ◽  
Abnormal Returns ◽  
Public Offerings ◽  
Market Index ◽  
Long Run ◽  
Short And Long Term ◽  
Using Data ◽  
Long Term Performance ◽  
Term Performance

This article investigates the return behaviorof privatization initial public offerings (PIPOs) in Europe over both theshort- and long-run horizons. Using data from a sample of 162 PIPOs over theperiod 1986-2008, we show that European PIPOs outperform, in terms ofrisk-adjusted abnormal returns, a benchmark market index and a portfoliocomposed of 162 European private IPOs, regardless of the horizon of analysis.Our results are important for both investors and policymakers with respect totheir investment and privatization decisions, and also allow a betterunderstanding of the financial performance behavior of the privatizedstate-owned enterprises.

Hedge Funds and Performance Persistence

2017 ◽  
Author(s):  
Nan Qin ◽  
Ying Wang
Keyword(s):  
Hedge Funds ◽  
Hedge Fund ◽  
Empirical Literature ◽  
Performance Persistence ◽  
Attrition Rates ◽  
Short And Long Term ◽  
And Performance ◽  
Long Term Performance ◽  
Term Performance

Despite the exponential growth of global hedge fund assets since the 1990s, the high attrition rates in the industry have raised an important issue about hedge fund return persistence. This chapter discusses the various statistical methodologies in measuring performance persistence and provides a comprehensive review of the empirical literature on short- and long-term performance persistence. In particular, the literature suggests that fund strategies and characteristics are related to performance persistence. The chapter also discusses three important issues: return smoothing, the use of option-like strategies, and data biases. The chapter provides additional empirical evidence on performance persistence, using a portfolio approach and a hedge fund sample from the Trading Advisor Selection System (TASS) database between 1994 and 2015.

scholarly journals Short- And Long-Term Wealth Gains From UK Takeovers: The Case Of The Financial Industry

2014 ◽  
Vol 30 (4) ◽  
pp. 1253 ◽  
Author(s):  
Sabri Boubaker ◽  
Taher Hamza
Keyword(s):  
Abnormal Returns ◽  
Wealth Effects ◽  
Financial Industry ◽  
Short Term ◽  
Long Run ◽  
Acquiring Firms ◽  
Short And Long Term ◽  
Long Term Performance ◽  
Term Performance

The present study analyzes the short- and long-term performance of UK financial acquiring firms by examining a sample of 40 takeovers over the period 19962007. In particular, it investigates i) the short- and long-term stock return performance of these acquiring firms and ii) the relation between their short-term abnormal return around the announcement date of takeovers and their long-term performance. The event study methodology shows that bidders experience significant short-term wealth destruction. In contrast, both the buy-and-hold abnormal returns and bidders portfolio return approaches indicate positive and significant wealth effects over the long run. Business cycle analysis shows that acquirers obtain significantly higher returns during downward financial market cycles. Furthermore, the results show that the market reaction to the bid announcement better predicts bidders long-term performance in the case of positive short-term abnormal returns.

Increase associated risk of gynaecological cancer due to long-term exposure to high concentration of atmospheric SO2 industrial pollutant

2021 ◽  
pp. 1420326X2110036
Author(s):  
Qian Xu ◽  
Chan Lu ◽  
Rachael Gakii Murithi ◽  
Lanqin Cao
Keyword(s):  
Time Windows ◽  
Air Pollutant ◽  
Gynaecological Cancer ◽  
High Concentration ◽  
The Past ◽  
Short And Long Term ◽  
Using Data ◽  
Air Quality Monitoring Stations ◽  
Control Study

A cohort case–control study was conducted in XiangYa Hospital, Changsha, China, which involved 305 patients and 399 healthy women, from June 2010 to December 2018, to evaluate the association between Chinese women’s short- and long-term exposure to industrial air pollutant, SO2 and gynaecological cancer (GC). We obtained personal and family information from the XiangYa Hospital electronic computer medical records. Using data obtained from the air quality monitoring stations in Changsha, we estimated each woman’s exposure to the industrial air pollutant, sulphur dioxide (SO2), for different time windows, including the past 1, 5, 10 and 15 years before diagnosis of the disease. A multiple logistic regression model was used to assess the association between GC and SO2 exposure. GC was significantly associated with long-term SO2 exposure, with adjusted odds ratio (95% confidence interval) = 1.56 (1.10–2.21) and 1.81 (1.07–3.06) for a per interquartile range increase in the past 10 and 15 years, respectively. Sensitivity analysis showed that different groups reacted in different ways to long-term SO2 exposure. We concluded that long-term exposure to high concentration of industrial pollutant, SO2 is associated with the development of GC. This finding has implications for the prevention and reduction of GC.

Where Did All the Dollars Go? The Effect of Cash Flows on Capital and Asset Structure

2011 ◽  
Vol 46 (5) ◽  
pp. 1259-1294 ◽  
Author(s):  
Sudipto Dasgupta ◽  
Thomas H. Noe ◽  
Zhen Wang
Keyword(s):  
Cash Flow ◽  
Economic Effect ◽  
Balance Sheet ◽  
Cash Flows ◽  
Long Run ◽  
Goods Market ◽  
Short Run ◽  
Debt Market ◽  
Short And Long Term

AbstractThis paper documents the short- and long-term balance sheet effect of cash flows. We show that cash savings in the short run and debt reduction in both the short and the long run account for a substantial fraction of cash flow use. Although, in the long run, investment exhibits substantial sensitivity to cash flows, investment does not absorb the entire cash flow shock. In fact, the tighter the financial constraints, the smaller the fraction of cash flow absorbed by investment and the more by leverage reduction. Firms stage their response to increases in cash flow, delaying investment while building up cash stocks and reducing leverage. These results suggest that much of the short-run economic effect of cash flow shocks to the corporate sector may be channeled into the corporate debt market rather than the capital goods market, especially when financing constraints tighten.

Reduced volume and increased training intensity elevate muscle Na+-K+pump α2-subunit expression as well as short- and long-term work capacity in humans

2009 ◽  
Vol 107 (6) ◽  
pp. 1771-1780 ◽  
Author(s):  
Jens Bangsbo ◽  
Thomas P. Gunnarsson ◽  
Jesper Wendell ◽  
Lars Nybo ◽  
Martin Thomassen
Keyword(s):  
Endurance Training ◽  
Muscle Protein ◽  
Work Capacity ◽  
Control Group ◽  
Muscle Adaptations ◽  
Subunit Expression ◽  
Short And Long Term ◽  
And Performance ◽  
Trained Runners

The present study examined muscle adaptations and alterations in work capacity in endurance-trained runners as a result of a reduced amount of training combined with speed endurance training. For a 6- to 9-wk period, 17 runners were assigned to either a speed endurance group with a 25% reduction in the amount of training but including speed endurance training consisting of six to twelve 30-s sprint runs 3–4 times/wk (SET group n = 12) or a control group ( n = 5), which continued the endurance training (∼55 km/wk). For the SET group, the expression of the muscle Na+-K+pump α2-subunit was 68% higher ( P < 0.05) and the plasma K+level was reduced ( P < 0.05) during repeated intense running after 9 wk. Performance in a 30-s sprint test and the first of the supramaximal exhaustive runs was improved ( P < 0.05) by 7% and 36%, respectively, after the speed endurance training period. In the SET group, maximal O2uptake was unaltered, but the 3-km (3,000-m) time was reduced ( P < 0.05) from 10.4 ± 0.1 to 10.1 ± 0.1 min and the 10-km (10,000-m) time was improved from 37.3 ± 0.4 to 36.3 ± 0.4 min (means ± SE). Muscle protein expression and performance remained unaltered in the control group. The present data suggest that both short- and long-term exercise performances can be improved with a reduction in training volume if speed endurance training is performed and that the Na+-K+pump plays a role in the control of K+homeostasis and in the development of fatigue during repeated high-intensity exercise.

scholarly journals Environmental and social sustainability priorities

2015 ◽  
Vol 35 (2) ◽  
pp. 216-245 ◽  
Author(s):  
Annachiara Longoni ◽  
Raffaella Cagliano
Keyword(s):  
Business Strategy ◽  
Social Sustainability ◽  
Operations Strategy ◽  
Manufacturing Strategy ◽  
Competitive Priorities ◽  
Content Type ◽  
Short And Long Term ◽  
Using Data ◽  
Term Performance

Purpose – Environmental and social sustainability are becoming key competitive priorities for companies, but the way in which they are integrated in operations strategies remains an open issue. The purpose of this paper is to determine whether established operations strategy configuration models (i.e. price-oriented, market-oriented and capability-oriented models) are modified to include environmental and social priorities and whether different operations strategy configuration models are equally successful in the short and long term. Design/methodology/approach – Analyses were performed using data from the International Manufacturing Strategy Survey (2009), including companies in the assembly industry in 21 different countries. According to previous studies, cluster analysis of competitive priorities and ANOVA analysis of the business strategy and short- and long-term performance were performed. Findings – The results show that traditional operations strategy configuration models are slightly modified. Market-oriented and capability-oriented operations strategies are complemented by environmental and social sustainability priorities. These operations strategies are adopted by companies with a differentiation and innovation business strategy. Moreover, capability-oriented companies, which are the most committed to environmental and social sustainability, perform better in both the short and long term. Practical implications – This research shows to companies that traditional operations strategies focusing on specific competitive priorities (e.g. low price) are being replaced by more holistic strategies that include sustainability priorities. However, environmental and social priorities contribute to competitive advantage when complementing capability-oriented operations strategies. Originality/value – This paper extends operations strategy configuration models highlighting how environmental and social sustainability priorities can be deployed together with traditional competitive operations priorities.

scholarly journals Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?

2018 ◽  
Vol 8 (4) ◽  
pp. 64 ◽  
Author(s):  
Hien Thi Ngoc Huynh ◽  
Phuong V. Nguyen ◽  
Khoa T. Tran
Keyword(s):  
Emerging Market ◽  
Developed Countries ◽  
Organizational Slack ◽  
Optimum Level ◽  
International Expansion ◽  
Manufacturing Enterprises ◽  
Long Run ◽  
Third Stage ◽  
And Performance ◽  
Using Data

This paper aims to investigate the three-stage theory of international expansion in the long run from the perspective of firm behavior. Although this topic has been mostly explored using data from developed countries, this paper aims to fill the research gap in an emerging market by using an extensive unbalanced panel data of 12,704 unlisted Vietnam manufacturing enterprises from the General Statistics Office during 2007 to 2012. The findings illustrated a significant S-shaped relationship between internationalization and performance. Notably, the results depict significantly moderating effects of both high-discretion slacks and low-discretion slacks on the internationalization–performance relationship across three stages of global expansion as an enterprise enhances this relationship in the first and third stage although this worsens it in the middle stage. The empirical results suggest that firms should determine the optimum level of internationalization and slacks in addition to balancing their costs with their real gains.

scholarly journals TRADEMARK ACTIVITY AND THE MARKET PERFORMANCE OF U.S. COMMERCIAL BANKS

2012 ◽  
Vol 13 (5) ◽  
pp. 931-950 ◽  
Author(s):  
Carlos González-Pedraz ◽  
Sergio Mayordomo
Keyword(s):  
Commercial Banks ◽  
Negative Impact ◽  
Abnormal Returns ◽  
Market Value ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Cumulative Abnormal Returns ◽  
And Performance ◽  
Positive Effect

This empirical paper analyzes the effect of trademark activity on the market value and performance of US commercial banks from two perspectives. First, a longterm perspective considers the effect of such activity on banks’ Tobin's q. Second, with a short-term perspective, the authors analyze the effect of trademark activity on banks’ abnormal returns. An older portfolio of trademarks diminishes the ratio of market value to firm assets, but this ratio can be improved in the long term by abandoning old trade-marks. Portfolios of trademarks with wide diversification do not help increase Tobin's q. Furthermore, according to an event study, the creation of a trademark has a positive effect on cumulative abnormal returns compared with no event, whereas a cancellation event has a negative impact.

Innovative Enterprise Solves the Agency Problem

2019 ◽  
pp. 156-191
Author(s):  
William Lazonick ◽  
Jang-Sup Shin
Keyword(s):  
Agency Theory ◽  
Hedge Fund ◽  
Innovation Theory ◽  
Long Term Effects ◽  
Business Corporation ◽  
Innovative Enterprise ◽  
And Performance ◽  
Short Termism ◽  
The U.S

This chapter uses innovation theory to provide both a general theoretical critique and a selective empirical critique of the use of agency theory to rationalize the looting of the U.S. business corporation as enhancing economic efficiency. It focuses on three empirical works, Bebchuk and Fried, Pay Without Performance (2004); Bebchuk, Brav, and Jiang, “The Long-Term Effects of Hedge-Fund Activism” (2015); and Fried and Wang, “Short-Termism and Capital Flows” (2017). The chapter contends that MSV ideology as promulgated by agency theorists has contributed to inferior corporate and economic performance. It then argues that, for analyzing the operation and performance of the economy, innovation theory should replace agency theory.

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