Lack of buying finds confirmation in our quant model
The Signal II quantitative model of Insiders' Chronicle generated very few new buy recommendations for stocks during early Jun. 1995. The lack of such recommendations confirms the non-buying trend among insiders. The model has successfully predicted excess stock returns consistent with long-term investment strategies and typically makes 30 to 40 buy recommendations per week, of which 15 to 20 are previously unranked. These results suggest that insiders expect the earnings-based market momentum to decline in late 1995 because profit-takers will punish stocks that do not meet profit targets.
Publication Name: CDA-Investnet Insiders' Chronicle
Convertible calls and corporate taxes under asymmetric information
A signalling model that correlates the activity between the call of convertible securities with the presence of corporate taxes and the uncertainty of earnings show that the conversion of convertible stocks into common stocks in the presence of information asymmetry negatively affects the earnings from the conversion process. This depreciation in earnings can also be compounded by the tax deductibility of the conversion, with the announcement reducing the tax shield that can be offered by the agent.
Publication Name: Journal of Banking & Finance
Heated exchanges: the world's established exchanges face-off against each other, upstarts and obsolescence
Established and regional commodities exchanges are starting to compete with each other for client and this has forced some to seriously consider merging of restructure their businesses. The advent of electronic data processing that broadens the horizons of many treasurers effectively translates to a lesser number of loyal clients for exchanges. Moreover, service requirements of treasurers have grown that exchanges find it hard to keep up.
Publication Name: Treasury & Risk Management
- Abstracts: Interprofessional conflict, accommodation, and the flow of capital: the ASB vs the securities industry and its lawyers
- Abstracts: The information content and usefulness of the term structure of the New Zealand bank bill market. The information content of sign and size of earnings announcements: New Zealand evidence
- Abstracts: Organic farmers and conventional distribution systems: the recent expansion of the organic food market in Denmark
- Abstracts: Human factors and aviation safety: what the industry has, what the industry needs. Handbook of Human Factors in Litigation
- Abstracts: Will soup-kitchen shares stay hot?: The strong consumer appetite for fresh, quality soup has triggered the interest of investors in companies such as Soup Works