The 'Hot Issue' Market of 1980

Article Abstract:

The 'hot issue' market of 1980 is defined as a fifteen- month period, beginning in January, 1980. During this time, the mean return on initial public offerings of common stock was 48.4 percent. The average return for the remainder of the six-year period from 1977-1982 was 16.3 percent. Rock's theory of underpricing of initial public offerings is utilized in the investigation of causes of the 'hot issue' market. Since results show that the 'hot issue' market was almost exclusively restricted to natural resource issues, Rock's theory is an unsatisfactory explanation. The institutional lag hypothesis, speculative bubble hypothesis and monopsony power hypothesis are advanced as alternative explanations of the high average returns for natural resource issues. Implications of the conclusions for buyers and issuers are discussed.

Research, Finance, Stock-exchange, Stock exchanges, Corporations, Corporate finance

---

Market Efficiency in Racetrack Betting

Article Abstract:

An analogy between stock market investing and horse race betting is drawn. Racetrack betting data are used in a test of the efficient market theory, more specifically, the investigation of whether betting strategies which yield positive rates of return may be devised on the basis of observable betting patterns. Methodology and data results are given. The conclusions are made that net profits can be made on place and show betting and that strategies may be developed which exceed the return from betting the favorite to win. The results are compatible with rational behavior.

Planning, Investments, Beliefs, opinions and attitudes, Industrial efficiency, Economic efficiency, Capitalists and financiers

---

Market efficiency in racetrack betting: further evidence and a correction

Article Abstract:

A previous papers by the authors (1984) concluded that profitable strategies for win betting could not be devised but that strategies for show and place betting could be developed. Further research conducted on 706 races showed a much lower rate of return than the original study. Therefore, the workability of the original conclusion is, at best, questionable.

Analysis, Gambling systems, Horse race betting

Similar abstracts:

• Abstracts: The contribution of clinical directors to the strategic capability of the organization. On strategy and management control: the importance of classifying the strategy of business
• Abstracts: Management buyouts and managerial ethics. Merger decision making: an ethical analysis and recommendation. Moral person and moral manager: how executives develop a reputation for ethical leadership
• Abstracts: Taiwan takes control of Taichung Bank. CEO attributes associated with attitude toward change: the direct and moderating effects of CEO tenure
• Abstracts: The accuracy of combining judgemental and statistical forecasts. Constructing a Complex Judgemental Model: An Index of Trauma Severity
• Abstracts: The Cost Growth Phenomenon. Management by Objectives in Procurement

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.