Home  About us  Contact
 

Information Dynamics (information + dynamics)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting80%

Selected Abstracts

An Aggregation Theorem for the Valuation of Equity Under Linear Information Dynamics

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2003
David Ashton
We state an Aggregation Theorem which shows that the recursion value of equity is functionally proportional to its adaptation value. Since the recursion value of equity is equal to its book value plus the expected present value of its abnormal earnings, it follows that the adaptation value of equity can normally be determined by a process of simple quadrature. We demonstrate the application of the Aggregation Theorem using two stochastic processes. The first uses the linear information dynamics of the Ohlson (1995) model. The second uses linear information dynamics based on the Cox, Ingersoll and Ross (1985),square root' process. Both these processes lead to closed form expressions for the adaptation and overall market value of equity. There are, however, many other processes which are compatible with the Aggregation Theorem. These all show that the market value of equity will be a highly convex function of its recursion value. The empirical evidence we report for UK companies largely supports the convexity hypothesis. [source]

The Association Between Web-Based Corporate Performance Disclosure and Financial Analyst Behaviour Under Different Governance Regimes

CORPORATE GOVERNANCE, Issue 6 2007
Walter Aerts
In this study, we assert and test that the determination of corporate performance communication and financial analysts' earnings forecasting work are closely intertwined processes. The resulting endogeneity in capital markets' information dissemination and use is strongly influenced by a country's governance regime. Results from simultaneous equation regressions show significant interrelationships between financial analysts' activities and corporate disclosure transparency for North American firms. Moreover, analyst following underlies corporate disclosure, which ultimately leads to a reduction in the dispersion of analysts' earnings forecasts. In contrast, capital markets' information dynamics for continental European firms are much weaker. [source]

A requirement specification language for configuration dynamics of multiagent systems

INTERNATIONAL JOURNAL OF INTELLIGENT SYSTEMS, Issue 3 2004
Mehdi Dastani
In agent-mediated applications, the system configuration can change because of the creation and the deletion of agents. The behavior of such systems on the one hand depends on the dynamics of the system configuration; on the other hand, behavior of such a system consists of the information dynamics of the system. We discuss configuration and information dynamics of agent-mediated systems and define a requirement language to express properties of those dynamics. A prototypical scenario for an agent-mediated system is discussed and some important requirements for this system are specified. It is shown how these properties can be verified automatically to evaluate system behavior. © 2004 Wiley Periodicals, Inc. [source]

An Aggregation Theorem for the Valuation of Equity Under Linear Information Dynamics

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2003
David Ashton
We state an Aggregation Theorem which shows that the recursion value of equity is functionally proportional to its adaptation value. Since the recursion value of equity is equal to its book value plus the expected present value of its abnormal earnings, it follows that the adaptation value of equity can normally be determined by a process of simple quadrature. We demonstrate the application of the Aggregation Theorem using two stochastic processes. The first uses the linear information dynamics of the Ohlson (1995) model. The second uses linear information dynamics based on the Cox, Ingersoll and Ross (1985),square root' process. Both these processes lead to closed form expressions for the adaptation and overall market value of equity. There are, however, many other processes which are compatible with the Aggregation Theorem. These all show that the market value of equity will be a highly convex function of its recursion value. The empirical evidence we report for UK companies largely supports the convexity hypothesis. [source]

Games in Dynamic-Epistemic Logic

BULLETIN OF ECONOMIC RESEARCH, Issue 4 2001
Johan Van Benthem
The author discusses games of both perfect and imperfect information at two levels of structural detail: players' local actions, and their global powers for determining outcomes of the game. Matching logical languages are proposed for both. In particular, at the ,action level', imperfect information games naturally model a combined ,dynamic-epistemic language', and correspondences are found between special axioms in this language and particular modes of playing games with their information dynamics. At the ,outcome level', the paper presents suitable notions of game equivalence, and some simple representation results. [source]