We examine the asset pricing implications of a neoclassical model of repeated investment and disinvestment. Prior research has emphasized a negative relation between productivity and equity risk that results from operating leverage when capital adjustment is costly. In general, however, expansion and contraction options affect risk in the opposite direction: they lower equity risk as profitabil...

the latest known source of multicollinearity, a nonorthogonality of two or more explanatory variables in multiple regression models, is high leverage points. Interpreting a fitted regression model may become impossible by the influential impacts of multicollinearity. In this paper, we attempt to investigate the impact of different sample sizes as one of the main causing factors of high leverage...

Robust selection of variables in a linear regression model is investigated. Many variable selection methods are available, but very few methods are designed to avoid sensitivity to vertical outliers aswell as to leverage points. The nonnegative garrotemethod is a powerful variable selection method, developed originally for linear regression but recently successfully extended to more complex reg...

In recent years there has been considerable activity, by business analysts and academics, in developing new approaches to understanding contemporary innovation processes. This has resulted in the emergence of a large number of conceptual alternatives, with many overlapping features. It is the aim of this paper to outline and compare the most popular of these frameworks, and develop a model inco...

This paper investigates the diffusion of system dynamics as research paradigm. It deals with the question whether the diffusion of system dynamics is influenced by network externalities. Assuming the existence of such network externalities the so called penguin and bandwagon effect must be considered regarding the diffusion. Based on a system dynamics model considering network externalities lev...

This paper outlines some research questions in relation to software process improvement. Software process improvement should be a continuous activity where you go through with a set of activities to achieve a higher level of maturity. These activities can be seen as a four step process; information collection and investigation, decision making and planning, implementation, and evaluation. This ...

due to the fact that assets are recorded at their historical value and they may include unrealized gains (losses), managers may manipulate earnings through the sale of these assets and provide financial information which is not accurate and reliable. the aim of this study is to investigate the relationship between income from asset sales, earnings change and leverage of companies listed on tehr...

There is strong evidence indicating that the existing measures which are designed to detect a single high leverage collinearity-reducing observation are not effective in the presence of multiple high leverage collinearity-reducing observations. In this paper, we propose a cutoff point for a newly developed high leverage collinearity-influential measure δ D i and two existing measures δi and li ...

In this report, we propose a robust mixture of regression based on t-distribution by extending the mixture of t-distributions proposed by Peel and McLachlan (2000) to the regression setting. This new mixture of regression model is robust to outliers in y direction but not robust to the outliers with high leverage points. In order to combat this, we also propose a modified version of the propose...