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Market's Perception (market + perception)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	83%

Selected Abstracts

Market Perceptions and Opportunities for Native Plant Production on the Southern Colorado Plateau

RESTORATION ECOLOGY, Issue 2010
Donna L. Peppin
Increases in revegetation activities have created a large demand for locally adapted native plant materials (NPM) in the southwestern United States. Currently, there is a minimal supply of local genotypes to meet this demand. We investigated the potential for the initiation of a native plant market in the southern Colorado Plateau. Through a literature search, interviews, and site visits, we identified existing native plant markets outside of the region as useful models to help initiate a regional market. We used web-based surveys to identify and analyze current and future NPM needs and concerns. Survey results indicate that management policy strongly drives decisions regarding the use and purchase of NPM. From a demand perspective , lack of availability and cost of NPM has kept purchasing minimal, despite policy changes favoring the use of natives. For suppliers, further development of NPM is limited by inconsistent and unreliable demand and lack of production knowledge. The knowledge and tools necessary to initiate an NPM market are available, but inadequate funding sources and insufficient information sharing hinder its development. Communication among producers, land managers, buyers, and researchers, as well as partnerships with local growers, appear to be vital to initiating a functional market. [source]

Accounting for Employee Stock Options: What Can We Learn from the Market's Perceptions?

JOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2010
Emanuel Bagna
The scope of this is paper is to provide new empirical evidence on the value relevance of employee stock options (ESOs) in Europe. We show, empirically, that the market participants when pricing a firm's equity place approximately the same valuation weights on the ESO -deferred compensation expense (the so called "ESO asset") and the compensation option liability (the so called "ESO liability"). Our empirical findings support the theoretical work of Ohlson and Penman who suggest that the deferred compensation expense be treated as a contra-liability. The second contribution of our work rests on the nature of the ESO expense. We show that the distinction between persistent and non-persistent ESO expenses is of critical importance for the market participants. Accordingly, an improved accounting disclosure should assist the investors in assessing the long-term goals of the ESO plans at the firm level. [source]

Market's perception of deferred tax accruals

ACCOUNTING & FINANCE, Issue 4 2009
Cheryl Chang
G14; M41 Abstract This study investigates the value relevance and incremental information content of deferred tax accruals reported under the ,income statement method' (AASB 1020 Accounting for Income Taxes) over the period 2001,2004. Our findings suggest that deferred tax accruals are viewed as assets and liabilities. We document a positive relation between recognized deferred tax assets and firm value using the levels model, while the results from the returns model suggest that deferred tax liabilities reflect future tax payments. The balance of unrecognized deferred tax assets provides a negative signal to the market about future profitability, particularly for companies from the materials and energy sectors and loss-makers. [source]

The Financial Performance of Low-Cost and Full-Service Airlines in Times of Crisis

CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 1 2005
Triant Flouris
This paper examines the stock and accounting performance of three major airlines in the United States in the aftermath of the September 11, 2001, terrorist attacks. September 11 (9/11) resulted in dramatic changes in the airline industry and had significant implications for the economic gains and future prospects of most airlines. Our study focuses on the stock market's perception of the viability of low-cost versus full-service business models in the aftermath of 9/11. We choose Southwest Airlines as a typical low-cost airline and compare its accounting and stock performance to two full-service airlines, Continental and Northwest. We find that Southwest's performance was highly superior to that of Continental and Northwest and argue that Southwest's business model, in the eyes of investors, provides the firm with significantly more financial and operational flexibility than full-service airlines. Southwest's lower operating costs, consumer trust, product offering, corporate structure, workforce and work practices, as well as operational procedures are all factors that appear to contribute to Southwest's relative success. Résumé Cet article étudie la performance boursière et comptable de trois grands transporteurs aériens opérant aux États-Unis au lendemain des attentats du 11 septembre 2001. Ces événements ont entraîné des changements radicaux dans l'industrie du transport aérien et ont eu des répercussions considérables sur les gains économiques de la plupart des compagnies aériennes. Notre étude compare la viabilité des modèles d'entreprise à bas prix à celle des modèles traditionnels, au lendemain de l'attaque terroriste. Nous avons choisi Southwest Airlines comme l'exemple type de transporteur aérien pratiquant des bas prix et nous comparons sa comptabilité et le rendement de son action à ceux de deux transporteurs aériens à service complet, notamment Continental et Northwest. Nous constatons que le rendement de Southwest est de loin supérieur à celui de Continental et de Northwest. Nous montrons que, d'après les investisseurs, le modèle de gestion de Southwest lui donne beaucoup plus de flexibilité financière et opérationnelle que le modèle de gestion pratiqué par les transporteurs aériens traditionnels. La faiblesse de ses charges d'exploitation, la confiance des consommateurs, son offre de produits, sa structure d'organisation, son effectif, ses pratiques de travail, ainsi que ses méthodes opérationnelles sont autant d'éléments qui semblent contribuer au succès relatif de Southwest. [source]

The Benefits of Banking Mega-Mergers: Event Study Evidence from the 1998 Failed Mega-Merger Attempts in Canada

CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 3 2003
Ramon Baltazar
We investigate the main benefit(s) of specific banking mega-mergers, and whether or not we can infer the benefit(s) from event study evidence of stock market reactions to the mega-mergers. In addressing these questions, we examine the market's reactions to three announcements surrounding the 1998 failed mega-merger attempts in the Canadian banking industry. From our analysis, we conclude that market power,not scale, scope, or X-eficiency economies, or access to government safety net subsidies,was the primary benefit ascribed by Canadian shareholders to the merger proposals. To the extent that the market's perception of merger benefits is an accurate indicator of the merging partners' motives, we also conclude that an analysis of shareholder reactions to a merger announcement,as undertaken here,is a productive avenue for regulators attempting to discern a particular merger's main motivations. Résumé Dans cette étude, nous examinons les avantages principaux de certaines méga-fusions bancaires. Nous nous demandons s'il est possible d'inférer ces avantages à partir de l'étude des réactions du marché boursier aux méga-fusions. Notre étude s'appuie sur les réactions du marché enregistrées à la suite de trois annonces, en 1998, de tentatives de méga-fusions avortées dans l'industrie bancaire canadienne. Notre analyse débouche sur la conclusion que le pouvoir du marché,et non son échelle, son étendue, l'efficacité de son économie (économies en efficacité X) ou l'accès au filet de sécurité des subventions gouvernementales,est le principal avantage que les actionnaires canadiens évoquent pour justifier les propositions de fusion. La perception des avantages de la fusion étant un indicateur clair des motivations des partenaires de la fusion, nous pensons qu'une analyse des réactions des actionnaires à l'annonce d'une fusion est une piste pertinente dans la détermination des principales raisons qui la sous-tendent. [source]

Social influence on predictions of simulated stock prices

JOURNAL OF BEHAVIORAL DECISION MAKING, Issue 3 2009
Maria Andersson
Abstract Herding in financial markets refers to that investors are influenced by others. This study addresses the importance of consistency for herding. It is suggested that, in financial markets perceptions of consistency are based on repeated observations over time. Consistency may then be perceived as the agreement across time between investors' predictions. In addition, consistency may be related to variance over time in each investor's predictions. In an experiment using a Multiple Cue Probability Learning paradigm, 96 undergraduates made multi-trial predictions of future stock prices given information about the current price and the predictions made by five fictitious others. Consistency was varied between the others' predictions (correlation) and within the others' predictions (variance). The results showed that the predictions were significantly influenced by the others' predictions when these were correlated. No effect of variance was observed. Hence, participants were influenced by the others when they were in agreement, regardless of whether they varied their predictions over trials or not. Copyright © 2008 John Wiley & Sons, Ltd. [source]