Prior literature has shown that managerial short-termism causes only over-investment at the more efficient type firms for the signaling purpose. Two fundamental assumptions are typically made: the manager’s shortterm incentive is exogenous and the setting of information asymmetry guarantees the manager’s possible payoff functions satisfy the single-crossing condition. In an operations context, ...

T he main point of this response is to state the primary aim of our paper 1 : our purpose was not to develop yet another method of locating the oriC site based on the GC bias (there are already many excellent methods for this) but to study the effect of this bias on genes. The comparison of our approach with the GC-skew plot, or related techniques, is therefore inappropriate – how can a skew pl...

This paper attempts to bring theoretical and empirical research on capital gains realization behavior closer together by considering whether investors who appear to engage more in strategic tax avoidance activity also respond differently to tax rates. We find that such investors exhibit significantly smaller responses to permanent tax rate changes than other investors. Put another way, a larger...

In a society depending on real time information, corporate disclosure is crucial for the capital market efficiency. The more disclosures a company makes, the more transparent becomes the information to investors, the lower becomes the information asymmetry and more credible the firms will be for the market. The purpose of this study is to investigate the association between the voluntary disclo...

This paper analyzes the impact of different disclosure regimes on corporate decisionmaking during initial public offering. Specifically, it examines how disclosure rules affect firms’ incentives to acquire forward-looking information, their disclosure practices and investment strategies. The disclosure regimes examined are Non-Disclosure, Voluntary, and Mandatory Disclosure Regimes. The analysi...

This paper studies the returns to venture capital and private equity investment based on a sample of 221 private equity funds that are managed by 72 private equity management firms, in 5040 entrepreneurial investee firms, and spanning 33 years (1971 – 2003) and 39 countries from North and South America to Europe and Asia. We make use of four main categories of proxy variables for value-added ac...

There is growing evidence to suggest that the impact of positive and negative news are asymmetricthat the impact of bad news has a much greater effect on investors’ sentiment than positive news does; investors react more harshly when bad news is disseminated. Using daily data from 30 companies listed on the DJIA index over the period April 3, 2012 to April 5, 2013, we analyse 289,443 online twe...

Article history: Received 23 August 2011 Received in revised form 16 April 2012 Accepted 19 April 2012 Available online 5 May 2012 This paper proposes a two-state Markov-switching model for stock market returns in which the state-dependent expected returns, their variance and associated regime-switching dynamics are allowed to respond to market information. More specifically, we apply this mode...

2 ABSTRACT Cross-border venture capital investment has grown dramatically. Drawing upon observations about the liability of foreignness, previous research has shown that foreign venture capitalists (VCs) tend to partner with local VCs in order to offset information asymmetry and the liabilities of foreignness. Much of the literature has suggested that local VCs should help reduce operational un...

This study provides a new perspective to the long-standing debate on the business value of IT. Advancing prior research on the internal perspectives of IT value creation, we take an external view and investigate the role of stock analysts in facilitating the market evaluation of firms’ IT investments. Stock analysts collect information about firms’ IT investments and provide informed recommenda...