Capital Budgeting vs. Market Timing: An Evaluation Using Demographics

Capital Budgeting vs. Market Timing: An Evaluation Using Demographics

We use demand shifts induced by demographics to provide a novel evaluation of capital budgeting and market timing. Capital budgeting implies that industries anticipating positive demand shifts in the near future should issue more equity to finance capacity. To the extent that demographic shifts in the distant future are not incorporated into equity prices, market timing implies that industries ...

Evaluation Iran Capital Market Hedging using World Capital Market (Simultaneous Investment in Iran Stock Exchange Market & World Gold Market)

Hedging is one of the most important topics in investment field, which could be noticed from different points of view. We evaluate the role of gold relative to different indices in Tehran Security Exchange (TSE) as a representative of Iran Capital Market .In this topic gold charecterristics of “save haven” and “hedge” versus TSE are studided. Daily Price Returns of 21 TSE stock indices and dail...

timing in portfolio evaluation: evidence of capital market

using the treynor and mazoy model (expanded by fama to evaluate management performance for asset allocation among investment units), this paper examines the management’s performance in funds and investment companies in tehran stock exchange during 2004-2010. the results do not support the application of management market timing during the study period and managers were only able to create addit...

Strategic Capital Budgeting: Asset Replacement under Market Uncertainty∗

In this paper the impact of product market uncertainty on the optimal replacement timing of a production facility is studied. The existing production facility can be replaced by a technologically more advanced and thus more cost-effective one. We take into account strategic interactions among the firms competing in the product market by analyzing the problem in a duopolistic setting. We calcula...

Rational Capital Budgeting in an Irrational World