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Kinds of Holdings Selected AbstractsThe Determinants and Implications of Mutual Fund Cash Holdings: Theory and EvidenceFINANCIAL MANAGEMENT, Issue 2 2006Xuemin (Sterling) Yan In this article, I examine the determinants and implications of equity mutual fund cash holdings. In cross-sectional tests, I find evidence generally supportive of a static trade-off model developed in the article. In particular, small-cap funds and funds with more-volatile fund flows hold more cash. However, I do not find that fund managers with better stock-picking skills hold less cash. Aggregate cash holdings by equity mutual funds are persistent and positively related to lagged aggregate fund flows. Aggregate cash holdings do not forecast future market returns, suggesting that equity funds as a whole do not have market timing skills. [source] Learning the language of business at SabreGLOBAL BUSINESS AND ORGANIZATIONAL EXCELLENCE, Issue 3 2003Deedra Yarbrough Sabre Holdings had to grow up fast. It was spun off from American Airlines in 2000,and then September 11, 2001 slammed the entire airline industry. Yet Sabre came close to achieving its 2002 profitability plan,in large part because employees controlled expenses. And they had learned both why and how to do that through an innovative, experiential learning initiative that linked corporate financial analysis with daily work activity. © 2003 Wiley Periodicals, Inc. [source] Accruals quality and corporate cash holdingsACCOUNTING & FINANCE, Issue 1 2009Pedro J. García-Teruel G31; G32 Abstract This Work Uses Panel Data For Firms Listed In The Spanish Stock Exchange Over The Period From 1995 To 2001 To Analyse The Effect Of Accounting Quality On Cash Holdings. The Results Show That Firms With Good Accruals Quality Hold Lower Cash Levels Than Firms With Poor Accruals Quality. This Finding Suggests That The Quality Of Accounting Information May Reduce The Negative Effects Of Information Asymmetries And Adverse Selection Costs, Allowing Firms To Reduce Their Level Of Corporate Cash Holdings. The Results Also Show That Cash Holdings Decrease When Firms Increase Their Use Of Bank Debt And In The Presence Of Cash Substitutes. In Contrast With This, Firms With Higher Cash Flow Hold Higher Levels Of Cash. [source] On the Distribution of Money Holdings in a Random-Matching Model*INTERNATIONAL ECONOMIC REVIEW, Issue 3 2002Aleksander BerentsenArticle first published online: 6 AUG 200 This article studies stationary and nonstationary distributions of money holdings in a random-matching model. The first part characterizes the stationary distributions of money holdings and derives the optimum quantity of money. The second part considers nonstationary distributions of the optimum quantity of money to show that if the production costs are not too large, any distribution of the optimum quantity of money converges asymptotically to the uniform distribution. [source] Home Bias, Foreign Mutual Fund Holdings, and the Voluntary Adoption of International Accounting StandardsJOURNAL OF ACCOUNTING RESEARCH, Issue 1 2007VICENTIU M. COVRIG ABSTRACT We test the assertion that a consequence of voluntarily adopting International Accounting Standards (IAS) is the enhanced ability to attract foreign capital. Using a unique database that reports firm-level holdings of over 25,000 mutual funds from around the world, our multivariate tests find that average foreign mutual fund ownership is significantly higher among IAS adopters. We also find that IAS adopters in poorer information environments and with lower visibility have higher levels of foreign investment, consistent with firms using IAS adoption to provide more information and/or information in a more familiar form to foreign investors. Taken together, our findings are consistent with voluntary IAS adoption reducing home bias among foreign investors and thereby improving capital allocation efficiency. [source] Seasonality in Fund Performance: An Examination of the Portfolio Holdings and Trades of Investment ManagersJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2006David R. Gallagher Abstract:, This study examines the extent to which seasonal variation arises across calendar months in the performance of active Australian equity managers. While it is well documented that there is seasonality in equity market returns, it is unknown whether calendar month variation in managed fund performance exists. Employing a unique database of monthly stock holdings, we find evidence consistent with systematic variation in the risk-adjusted performance of active investment managers over the calendar year. Specifically, we find fund performance is higher in the months when corporate earnings are announced. We also document that the performance of fund managers is lower in the months preceding the tax year-end. Finally, we report evidence that investment manager performance is greater than normal in December, possibly due to both window dressing and the Christmas holiday effect. These findings have important implications for investors attempting to exploit anomalies in fund returns by timing their entry and exit points from active equity funds. [source] The Relationship between Personal Income and Net Worth in AustraliaTHE AUSTRALIAN ECONOMIC REVIEW, Issue 2 2007John Creedy This article uses data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey to examine the changing distribution of net worth with age. Even after controlling for age, the relationship between income and net worth is positive, except for the older age groups. Inequality falls as age increases. The income poor save in different forms compared with high income individuals of the same age cohort. Holdings of financial assets, especially equity investments and superannuation, are heavily concentrated in the hands of high income earners, while fixed income investments are favoured by the elderly for all income groups. [source] Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOsTHE JOURNAL OF FINANCE, Issue 4 2007JIE CAI ABSTRACT Acquisitions enable target chief executive officers (CEOs) to remove liquidity restrictions on stock and option holdings and diminish the illiquidity discount. Acquisitions also enable acquirer CEOs to improve the long-term value of overvalued holdings. Examining all firms during 1993 to 2001, we show that CEOs with higher holdings (illiquidity discount) are more likely to make acquisitions (get acquired). Further, in 250 completed acquisitions, target CEOs with a higher illiquidity discount accept a lower premium, offer less resistance, and more often leave after acquisition. Similarly, acquirer CEOs with higher holdings pay a higher premium, expedite the process, and make diversifying acquisitions using stock payment. [source] Transparency and International Portfolio HoldingsTHE JOURNAL OF FINANCE, Issue 6 2005R. GASTON GELOS ABSTRACT Does country transparency affect international portfolio investment? We examine this question by constructing new measures of transparency and by making use of a unique microdata set on portfolio holdings of emerging market funds around the world. We distinguish between government and corporate transparency. There is clear evidence that funds systematically invest less in less transparent countries. Moreover, funds have a greater propensity to exit nontransparent countries during crises. [source] Redesigning Corporate Governance Structures and Systems for the Twenty First CenturyCORPORATE GOVERNANCE, Issue 3 2001Robert A.G. Monks How a corporation is governed has become in recent years an increasingly important element in how it is valued by the market place. McKinsey & Company in June 2000 published the results of an Investor Opinion Survey of attitudes about the corporate governance of portfolio companies. The survey gathered responses about investment intentions from over 200 institutions who together manage approximately $3.25 trillion in assets. Ranging from 17 per cent in the US and Britain to over 27 per cent in Venezuela, investors placed a specific premium on what was called "Board Governance". To put this into perspective, consider how greatly sales would have to increase, expenses be cut and margins improved to achieve a comparable impact on value. "For purposes of the survey, a well governed company is defined as having a majority of outside directors on the board with no management ties; holding formal evaluations of directors; and being responsive to investor requests for information on governance issues. In addition, directors hold significant stockholdings in the company, and a large proportion of directors' pay is in the form of stock options." This correlation of governance with market value by one of the most respected consulting companies in the world creates the foundations of a new language for management accountability. McKinsey has great credibility as a value-adding advisor to corporate managements. Governance is not a cause or a theology for McKinsey; it is an important element in the value of an enterprise. By getting the opinion of what we call Global Investors with portfolios of holdings on every continent, McKinsey has importantly impacted the cost of capital for all corporations henceforth. Admittedly, McKinsey's criteria of "board governance" are blunt. "Every organization attempting to accomplish something has to ask and answer the following question," writes Harvard Business School professor Michael C. Jensen in the introduction to his recent working paper: "What are we trying to accomplish? Or, put even more simply: When all is said and done, how do we measure better versus worse? Even more simply: How do we keep score... . I say long-term market value to recognize that it is possible for markets not to know the full implications of a firm's policies until they begin to show up.... Value creation does not mean succumbing to the vagaries of the movements in a firm's values from day to day. The market is inevitably ignorant of many of our actions and opportunities, at least in the short run...". Surprisingly little attention is paid to what we all intuitively know, that talented people are not entirely motivated by financial compensation. Directors therefore must pay special attention to creating an appropriate environment for stimulating optimum management performance. [source] The Good Russian Prisoner: Naturalizing Violence in the Caucasus MountainsCULTURAL ANTHROPOLOGY, Issue 1 2005Bruce Grant Beginning with a fabled narrative poem by Aleksandr Pushkin from 1822 entitled "Prisoner of the Caucasus," this article is an exploration of how the idiom of kidnapping in the ritual seizure, taking, and most importantly, giving of bodies across perceived cultural lines has been central to Russians understanding of their troubled relations with the mountainous land holdings to their south for over 200 years. By juxtaposing classic ethnographic sources on Caucasian bride-kidnapping and the hostage taking of military figures as proxies in ritualized violence, alongside multiple renderings of Pushkin's "good prisoner" story in poetry, prose, opera, ballet, and film, these seemingly apolitical artifacts of Russian popular culture work to generate a powerful symbolic economy of Russian belonging in the Caucasus Mountains. [source] When documents are destroyed or lost: lay people and archives in the early Middle AgesEARLY MEDIEVAL EUROPE, Issue 4 2002Warren Brown In this paper, I discuss some largely unexplored evidence about lay archives in early medieval Europe. This evidence consists of a set of formulae from late Roman, Merovingian, and Carolingian Gaul, and from Carolingian Bavaria. According to these formulae, lay men and women in these regions from the sixth to the ninth centuries kept documents in private archivesbecause they regarded documents as vital to the security of their property holdings. The manuscripts in which the formulae survive indicate that lay people continued to keep archives throughout the ninth century and into the tenth. They also suggest, however, that by the end of the eighth century traditions about how lay people used and stored documents were being preserved and maintained to a large degree by churches and monasteries. [source] Liquidity in Asset Markets With Search FrictionsECONOMETRICA, Issue 2 2009Ricardo Lagos We develop a search-theoretic model of financial intermediation in an over-the-counter market and study how trading frictions affect the distribution of asset holdings and standard measures of liquidity. A distinctive feature of our theory is that it allows for unrestricted asset holdings, so market participants can accommodate trading frictions by adjusting their asset positions. We show that these individual responses of asset demands constitute a fundamental feature of illiquid markets: they are a key determinant of trade volume, bid,ask spreads, and trading delays,the dimensions of market liquidity that search-based theories seek to explain. [source] WHO IS AFRAID OF THE FRIEDMAN RULE?ECONOMIC INQUIRY, Issue 2 2008JOYDEEP BHATTACHARYA We explore the connection between optimal monetary policy and heterogeneity among agents in a standard monetary economy with two types of agents where the stationary distribution of money holdings is nondegenerate. Sans type-specific fiscal policy, we show that the zero-nominal-interest rate policy (the Friedman rule) does not maximize type-specific welfare; it may not maximize aggregate ex ante social welfare either. Indeed, one or, more surprisingly, both types may benefit if the central bank deviates from the Friedman rule. (JEL E31, E51, E58) [source] The Role of Investment, Financing and Dividend Decisions in Explaining Corporate Ownership Structure: Empirical Evidence from SpainEUROPEAN FINANCIAL MANAGEMENT, Issue 5 2006Julio Pindado G31; G32; G35 Abstract This paper analyses the determinants of ownership structure by focusing on the role played by investment, financing and dividend decisions. The use of the Generalised Method of Moments allows us to provide new evidence on this important corporate governance topic, since it controls for the endogeneity problem. Our most relevant findings show that: i) increases in debt lead insiders to limit the risk they bear by reducing their holdings; ii) monitoring by large outside owners substitutes for the disciplinary role of debt; and iii) both inside and outside owners are encouraged to increase their stakes in the firm in view of higher dividends. Our results hold after controlling for equity issues and share repurchases. [source] Precautionary Savings Behavior of Maritally Stressed CouplesFAMILY & CONSUMER SCIENCES RESEARCH JOURNAL, Issue 3 2006Michael S. Finke According to precautionary savings theory, households tend to save more when future income is less certain. Divorce often results in reduced levels of household income and individual consumption comparable to other potential income shocks. Households that will divorce or separate in 5 years are identified from the Panel Study of Income Dynamics (1994,1999) to determine whether these households maintain greater wealth holdings in anticipation of divorce. When spouses earn comparable incomes, divorce-prone households have significantly higher wealth levels (p < .01) than households that remain married. When there is a higher-earning spouse, households have significantly lower wealth levels (p < .01) than households that remain married. Results suggest that spouses with comparable earnings treat divorce as a wealth shock, whereas higher-earning spouses rationally dissave when divorce is imminent. Equitable wealth allocation for lower-earning spouses may require a more detailed investigation of predivorce wealth changes. [source] The Effect of Fiduciary Standards on Institutions' Preference for Dividend-Paying StocksFINANCIAL MANAGEMENT, Issue 4 2008Kristine Watson Hankins Many researchers apparently believe that some institutional investors prefer dividend-paying stocks because they are subject to the "prudent man" (PM) standard of fiduciary responsibility, under which dividend payments provide prima facie evidence that an investment is prudent. Although this was once accurate for many institutions, during the 1990s most states replaced the PM standard with the less-stringent "prudent investor" (PI) rule, which evaluates the appropriateness of each investment in a portfolio context. Controlling for the general decline in dividend-paying stocks, we find that institutions reduced their holdings of dividend-paying stocks by 2% to 3% as the PI standard spread during the 1990s. Studies of asset pricing and corporate governance should no longer consider dividend payments when evaluating the actions of institutional investors. [source] The Determinants and Implications of Mutual Fund Cash Holdings: Theory and EvidenceFINANCIAL MANAGEMENT, Issue 2 2006Xuemin (Sterling) Yan In this article, I examine the determinants and implications of equity mutual fund cash holdings. In cross-sectional tests, I find evidence generally supportive of a static trade-off model developed in the article. In particular, small-cap funds and funds with more-volatile fund flows hold more cash. However, I do not find that fund managers with better stock-picking skills hold less cash. Aggregate cash holdings by equity mutual funds are persistent and positively related to lagged aggregate fund flows. Aggregate cash holdings do not forecast future market returns, suggesting that equity funds as a whole do not have market timing skills. [source] Managerial Risk-Taking Incentives and Executive Stock Option Repricing: A Study of US Casino ExecutivesFINANCIAL MANAGEMENT, Issue 1 2005Daniel A. Rogers I examine the relation between managerial incentives from holdings of company stock and options and stock option repricing. Because options provide incentives to increase both risk and stock price, firms must realize that as options go underwater, executives might face incentives to invest in risky, negative NPV projects. Repricing may alleviate such incentives. I examine repricing activity by firms in the US gaming industry and find that risk-taking incentives from options are positively related to the incidence of executive option repricing. The results support the hypothesis that repricing assists firms in alleviating excessive risk-taking incentives of senior management. [source] Security Concentration and Active Fund Management: Do Focused Funds Offer Superior Performance?FINANCIAL REVIEW, Issue 1 2008Travis Sapp G11; G20 Abstract We examine gross fund returns based on the number of securities held and find no evidence that focused funds outperform diversified funds. After deducting expenses, focused funds significantly underperform. Controlling for various fund characteristics, fund performance is positively related to the fund's number of holdings both before and after expenses. We find evidence linking focused fund underperformance to agency and liquidity problems. Finally, the attrition rate of focused funds is higher than that of diversified funds. These results do not support the view that managers holding focused portfolios have superior stock-picking skills or that focused funds provide value to investors. [source] Determinants of Institutional Responses to Self,Tender OffersFINANCIAL REVIEW, Issue 3 2002Judith Swisher I examine how institutional investors respond to self,tender offers for common shares. I find that institutions sell more shares in larger offers and with higher proration factors. Institutions also sell more shares when officer and director holdings are not at risk in the offers. Banks, investment advisors, and other managers respond similarly, selling more shares in larger offers. Although institutions as a group do not respond differently by offer type, insurance companies and investment advisors sell more shares in fixed,price offers. Mutual funds, which differ from other types of institutions, sell more shares for firms with greater increases in leverage. [source] Accruals quality and corporate cash holdingsACCOUNTING & FINANCE, Issue 1 2009Pedro J. García-Teruel G31; G32 Abstract This Work Uses Panel Data For Firms Listed In The Spanish Stock Exchange Over The Period From 1995 To 2001 To Analyse The Effect Of Accounting Quality On Cash Holdings. The Results Show That Firms With Good Accruals Quality Hold Lower Cash Levels Than Firms With Poor Accruals Quality. This Finding Suggests That The Quality Of Accounting Information May Reduce The Negative Effects Of Information Asymmetries And Adverse Selection Costs, Allowing Firms To Reduce Their Level Of Corporate Cash Holdings. The Results Also Show That Cash Holdings Decrease When Firms Increase Their Use Of Bank Debt And In The Presence Of Cash Substitutes. In Contrast With This, Firms With Higher Cash Flow Hold Higher Levels Of Cash. [source] On-market share buybacks, exercisable share options and earnings managementACCOUNTING & FINANCE, Issue 1 2008Balasingham Balachandran G30; G32; M41 Abstract Chan et al. (2006b) suggest that managers might announce a share buyback to manipulate investors' perceptions and capitalize on the positive price reaction usually associated with the announcement. The incentive to do so is greater when managers have exercisable options. Prior studies document that managers engage in upwards earnings management for opportunistic reasons related to option holdings (Bergstresser and Philippon, 2006). We examine the association between earnings management and exercisable option holdings for buyback firms to investigate if earnings management in the pre-buyback period is greater for firms with equity incentives to increase share price. Our results, using 138 buybacks over the period 1996,2003, support our prediction. We find that buyback firms with both exercisable options that are in-the-money prior to the buyback announcement as well as options that are exercised in the buyback period have higher discretionary current accruals than buyback firms with no exercisable options, unexercised options or with out-of-the-money options. Overall, our results are consistent with buyback firms with exercisable options using earnings management and buyback announcements to maximize option payoffs, and buyback firms without exercisable options signalling undervaluation. [source] Electronic journal provision in a health-care library: insights from a consultation with NHS workersHEALTH INFORMATION & LIBRARIES JOURNAL, Issue 2 2006Sarah E. Crudge Objective:, This study determines the current awareness journal reading requirements of the users of Stockport National Health Service (NHS) Trust's library. The overlap between requirements and the provision of the NHS Core Content resources, four major electronic journal bundles, and the holdings of North West health libraries is also investigated. Methods:, A survey of both hospital and Primary Care Trust staff was conducted, and respondents were required to provide a list of their favourite journal titles. Each requested title was assigned a subject code, and the impact factor was noted. Results:, From 135 survey responses, 217 journal titles were identified and 33 category codes were utilized. There was little overlap between the request list and the NHS Core Content titles, but substantial correspondence existed between the request list and the print holdings of North West health libraries. Conclusions:, Current awareness journal reading requirements will not be met by the Core Content provision alone. Bundles of titles offer value-for-money solutions, but may be at the expense of popular titles. Furthermore, the success of regional document supply schemes may be compromised if large numbers of health-care libraries replace print holdings with similar electronic journal bundles. [source] The Within-Year Concentration of Medical Care: Implications for Family Out-of-Pocket Expenditure BurdensHEALTH SERVICES RESEARCH, Issue 3 2009Thomas M. Selden Objective. To examine the within-year concentration of family health care and the resulting exposure of families to short periods of high expenditure burdens. Data Source. Household data from the pooled 2003 and 2004 Medical Expenditure Panel Survey (MEPS) yielding nationally representative estimates for the nonelderly civilian noninstitutionalized population. Study Design. The paper examines the within-year concentration of family medical care use and the frequency with which family out-of-pocket expenditures exceeded 20 percent of family income, computed at the annual, quarterly, and monthly levels. Principal Findings. On average among families with medical care, 49 percent of all (charge-weighted) care occurred in a single month, and 63 percent occurred in a single quarter). Nationally, 27 percent of the study population experienced at least 1 month in which out-of-pocket expenditures exceeded 20 percent of income. Monthly 20 percent burden rates were highest among the poor, at 43 percent, and were close to or above 30 percent for all but the highest income group (families above four times the federal poverty line). Conclusions. Within-year spikes in health care utilization can create financial pressures missed by conventional annual burden analyses. Within-year health-related financial pressures may be especially acute among lower-income families due to low asset holdings. [source] On the Distribution of Money Holdings in a Random-Matching Model*INTERNATIONAL ECONOMIC REVIEW, Issue 3 2002Aleksander BerentsenArticle first published online: 6 AUG 200 This article studies stationary and nonstationary distributions of money holdings in a random-matching model. The first part characterizes the stationary distributions of money holdings and derives the optimum quantity of money. The second part considers nonstationary distributions of the optimum quantity of money to show that if the production costs are not too large, any distribution of the optimum quantity of money converges asymptotically to the uniform distribution. [source] Sovereign Wealth Funds: Stylized Facts about their Determinants and Governance,INTERNATIONAL FINANCE, Issue 3 2009Joshua Aizenman Concerns about the implications of foreign investments by sovereign wealth funds (SWFs) stem in large part from apprehensions about the objectives and governance quality of these institutions. This paper contributes to a better understanding of the stylized facts of SWFs by providing a statistical analysis of a range of characteristics of SWFs, including the motivation for their establishment as well as their size, governance and effect on reserve management behaviour. Specifically, it estimates what factors foster the establishment of SWFs as well as affect their size. It also investigates the extent to which the governance and transparency of individual SWFs correlate with domestic and global governance practices. Lastly, it analyses how asset accumulation by SWFs may affect central bank holdings of official reserves. [source] What determines transaction costs in foreign exchange markets?INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2008Tarun Ramadorai Abstract Using detailed data on the currency transactions of institutional fund managers, this paper shows that funds that experience high returns on their currency holdings also incur lower transaction costs on their currency trades. This finding holds both in the cross section, i.e. funds that perform better on average incur lower average transaction costs, as well as in time series, i.e. funds that do better over the past two months incur lower transaction costs on subsequent transactions. The results are consistent with foreign exchange dealers bidding for information from successful traders. They are also consistent with foreign exchange dealers exploiting price inelastic demand for foreign currency trades, or funds acting as secondary liquidity providers in foreign exchange markets. The paper also investigates the role of fund size, transaction frequency and return volatility on transactions costs. Copyright © 2007 John Wiley & Sons, Ltd. [source] Securities Laws, Disclosure, and National Capital Markets in the Age of Financial GlobalizationJOURNAL OF ACCOUNTING RESEARCH, Issue 2 2009RENÉ M. STULZ ABSTRACT As barriers to international investment fall and technology improves, the cost advantages for a firm's securities to trade publicly in the country in which that firm is located and for that country to have a market for publicly traded securities distinct from the capital markets of other countries will progressively disappear. Securities laws remain an important determinant of whether and where securities are issued, how they are valued, who owns them, and where they trade. I show that there is a demand from entrepreneurs for mechanisms that allow them to commit to credible disclosure because disclosure helps reduce agency costs. Under some circumstances, mandatory disclosure through securities laws can help satisfy that demand, but only provided investors or the state can act on the information disclosed and the laws cannot be weakened ex post too much through lobbying by corporate insiders. With financial globalization, national disclosure laws can have wide-ranging effects on a country's welfare, on firms and on investor portfolios, including the extent to which share holdings reveal a home bias. In equilibrium, if firms can choose the securities laws they are subject to when they go public, some firms will choose stronger securities laws than those of the country in which they are located and some firms will do the opposite. [source] Home Bias, Foreign Mutual Fund Holdings, and the Voluntary Adoption of International Accounting StandardsJOURNAL OF ACCOUNTING RESEARCH, Issue 1 2007VICENTIU M. COVRIG ABSTRACT We test the assertion that a consequence of voluntarily adopting International Accounting Standards (IAS) is the enhanced ability to attract foreign capital. Using a unique database that reports firm-level holdings of over 25,000 mutual funds from around the world, our multivariate tests find that average foreign mutual fund ownership is significantly higher among IAS adopters. We also find that IAS adopters in poorer information environments and with lower visibility have higher levels of foreign investment, consistent with firms using IAS adoption to provide more information and/or information in a more familiar form to foreign investors. Taken together, our findings are consistent with voluntary IAS adoption reducing home bias among foreign investors and thereby improving capital allocation efficiency. [source] | ||||||||||||||||||||||||||||||||||||||||||||||