What became of the New Economy?

2001 ◽  
Vol 177 ◽  
pp. 56-69 ◽  
Author(s):  
John Kay
Keyword(s):  
Stock Market ◽  
Competitive Advantage ◽  
New Economy ◽  
Business Success ◽  
The Past ◽  
Economic Statistics ◽  
Stock Market Valuations ◽  
Market Valuations ◽  
Macroeconomic Management ◽  
Made In

Over the past five years, there have been widespread claims — not only that there is a ‘new economy’ but that a new economy requires new economics. This article reviews the claims of this kind which have been made in three principal areas — in the measurement of economic statistics and in macroeconomic management, in company and stock market valuations, and in the nature of competitive advantage and the origins of business success. In each of these areas, it finds little basis for believing that revolutionary, rather than evolutionary, change is required. Indeed the application of well established economic principles and concepts might have saved investors, commentators, and those whose job it is to manage the economy, from costly mistakes

The Diffusion of Services

2009 ◽  
Vol 46 (2) ◽  
pp. 163-175 ◽  
Author(s):  
Barak Libai ◽  
Eitan Muller ◽  
Renana Peres
Keyword(s):  
Market Potential ◽  
Customer Equity ◽  
Customer Relationship ◽  
Service Firms ◽  
The Past ◽  
Stock Market Valuations ◽  
Customer Attrition ◽  
Market Valuations

Many of the products introduced during the past two decades have been services rather than goods. An important influence on the growth and long-term profits of these services is customer attrition, which can occur at the category level (disadoption) or between firms (churn). However, the literature has rarely modeled how services penetrate a market and has not evaluated the effect of attrition on growth. The authors combine diffusion modeling with a customer relationship approach to investigate the influence of attrition on growth in service markets. In particular, the authors model the effects of disadoption and churn on evolution of a category and on growth of individual firms in a competitive environment. The authors show how neglecting disadoption can bias parameter estimation and, especially, market potential. They also derive an expression for the customer equity of a growing service firm and apply it to valuation of firms operating in competitive industries. The results for six of seven firms in four service categories are remarkably close to stock market valuations, an indicator for the role of customer equity in valuations of growing service firms.

scholarly journals HOW DO THE ECB MEETINGS AFFECT THE STOCK VALUATIONS OF FOUR IBEX35 BANKS?

2021 ◽  
Vol 9 (3) ◽  
pp. 308-314
Author(s):  
Samer Ajour El Zain ◽  
Albert Montero ◽  
Reza Gheshmi ◽  
Cristina Tomas Perez
Keyword(s):  
Stock Market ◽  
Central Bank ◽  
European Central Bank ◽  
Data Sets ◽  
Important Data ◽  
European Central ◽  
Stock Market Valuations ◽  
Market Valuations ◽  
The Relationship ◽  
Correlation Table

Purpose: Analyze the data and draw there were any relevant conclusions between the meetings of the central bank and the movements of the banking corporations in the stock market. Methodology: To carry out this study, it was necessary to obtain two extremely important data sets (exact dates of the ECB meetings, stock market valuations of the four banking entities understudy). Both were obtained by searching on specialized websites. Then a comparison of the variations, a correlation table, which will allow us to mathematically affirm whether there is a linear relationship and proportionality between the variations of the banks or not, were analyzed. Main Findings: The results obtained indicate that such influence on the part of the European Central Bank on the financial entities listed on the IBEX35 does not exist, since the variations between bank shares are random and maybe would be better explained by other hypotheses or inputs. Application of Study: This work discards the hypothesis proposed by the student, although it manages to find other interesting relationships between banks because of the correlation analysis carried out in the analysis part of the work. Novelty/Originality: Establish the relationship between the meetings of the central bank and the movements of the banking corporations in the stock market.

Partisan Shocks and Financial Markets: Evidence from Close National Elections

2020 ◽  
Vol 12 (4) ◽  
pp. 224-252
Author(s):  
Daniele Girardi
Keyword(s):  
Stock Market ◽  
Developing Economies ◽  
Bond Markets ◽  
Left Wing ◽  
National Elections ◽  
Market Effects ◽  
Sovereign Bond ◽  
Stock Market Valuations ◽  
Market Valuations ◽  
Sovereign Bond Markets

This paper estimates the effect of partisan electoral victories on stock and bond markets. We employ a regression-discontinuity-based event study in a sample of 758 worldwide post-1945 national elections, using existing data on parliamentary elections and newly collected data on presidential elections. Left-wing electoral victories cause significant and substantial short-term decreases in stock market valuations, while the response of sovereign bond markets is mostly muted. Stock market effects are stronger and more persistent in elections in which the left’s proposed economic policy is more radical and in developing economies. (JEL D72, G14, N20, N40, O16, O17)

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