The negative relationship between stock market P/E ratios and government bond yields seems to have become conventional wisdom among practitioners. Both limited empirical evidence and a misleading suggestion that the model originated in the Fed are used to support the model's plausibility. This article argues that the Fed model is flawed from a theoretical standpoint and reports evidence from 20...

We develop a rational expectations model in which the issuer of a nancial instrument purchases credit ratings(s) in order to provide useful information to investors and attract investor demand. We examine the nature of a credit-rating equilibrium in a staged game in which an issuer purchases rating(s) sequentially and then decides which ratings to disclose. Our analysis emphasizes the importanc...

peptidase 4 (DPP4) inhibitor for type 2 diabetes. The compound looked to be safe and efficacious from the phase 2 trial results. However, it was barely differentiated from Merck’s (Whitehouse Station, New Jersey) Januvia (sitagliptin) and AstraZeneca’s (London) and Bristol-Myers Squibb’s (Princeton, New Jersey) Onglyza (saxagliptin). The company had a partnership already announced with a specia...

This study examines whether the heterogeneity among foreign institutional investors (FIIs) matters when investing in socially responsible investee firms. Exploiting a mandated corporate social responsibility (CSR) regulation India and using manually collected CSR expenditure data, results of quasi-natural experiment confirm that firms comply with mandate attract greater investment from FIIs. po...

Attracting foreign investment is one of the most important policies of the Iranian government for improving economic conditions. Nevertheless, despite the government and the Ministry of Industry's emphasis as well as the efforts of Iranian companies to attract foreign partners, this is less common in Iranian home appliance industry, which indicates the risks for foreign investors. Accordingly, ...

A lot of research has been done to predict economic development. The problem studied here is about the stock prediction for use of investors. More specifically, the stock market’s movements will be analyzed and predicted. We wish to retrieve knowledge that could guide investors on when to buy and sell. Through a detailed case study on trading S&P 500 index, rough sets is shown to be an applicab...

This research analyzed the influence of the differences in the forecast accuracy of fundamental values on the financial market. As a result of intensive experiments in the market, we made the following interesting findings: 1 improvements in forecast accuracy of fundamentalists can contribute to an increase in the number of fundamentalists; 2 certain situations might occur, according to the lev...

This paper examines the role of experts in an online crowdfunding market. Using a novel data set on individual investments in a crowdfunding market for mobile applications, we investigate whether early investments serve as signals of quality for later investors, and if the value of these signals differs depending on the identity of early investors. We find that while early investors have a sign...