tag:blogger.com,1999:blog-92155501081552778812024-02-19T22:58:11.870-08:00Mindset of FinanceCV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-9215550108155277881.post-24865010427814886412011-04-11T21:10:00.000-07:002011-04-11T21:10:15.067-07:00STOCK RETURNS AND INFLATION IN GREECE<div style="text-align: center;"><b><span class="Apple-style-span" style="font-size: large;">Abstract</span></b></div><div style="text-align: center;"><b><span class="Apple-style-span" style="font-size: large;"><br />
</span></b></div><div style="text-align: center;"><b><span class="Apple-style-span" style="font-size: large;"></span></b></div><div style="text-align: center;"><b><span class="Apple-style-span" style="font-size: large;">FLOROS, Christos*</span></b></div><div style="text-align: center;"><b><span class="Apple-style-span" style="font-size: large;">University of Portsmouth, UK</span></b></div><br />
<br />
<div style="text-align: center;">This paper examines the relationship between stock returns</div><div style="text-align: center;">and inflation. We focus on various econometric techniques to</div><div style="text-align: center;">test this relationship, using monthly values of the Athens Stock</div><div style="text-align: center;">Exchange Price index and the Greek Consumer Price index over</div><div style="text-align: center;">the period 1988-2002. The results from a simple OLS model</div><div style="text-align: center;">show evidence of a positive but not significant relationship,</div><div style="text-align: center;">while when we consider a system of equations including lagged</div><div style="text-align: center;">values of inflation we find a negative but not significant effect of</div><div style="text-align: center;">lagged inflation to stock returns. </div><div style="text-align: center;"><br />
</div><div style="text-align: center;">Using the Johansen cointegration test, we find that there is no long-run relationship</div><div style="text-align: center;">between stock returns and inflation in Greece. The results</div><div style="text-align: center;">indicate that the inflation rate is not correlated with stock returns.</div><div style="text-align: center;">Finally, from a dynamic point of view, the Granger-Causality</div><div style="text-align: center;">tests indicate evidence of no causality among these variables.</div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-45739307095286437162011-03-25T18:52:00.000-07:002011-03-25T18:52:57.960-07:00Cash Dividend<div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;"><br />
</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><span style="font-family: 'Times New Roman';"><br />
</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><span style="font-family: 'Times New Roman';">Types of Dividends</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;"><span style="color: #ccffff; font-family: 'Times New Roman'; font-size: 44pt;"><br />
</span></span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;">Cash </span><span style="color: black;">Div</span><span style="color: black;"> </span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;">Regular Cash </span><span style="color: black;">Div</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;">Special Cash </span><span style="color: black;">Div</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;">Stock </span><span style="color: black;">Div</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 7.68pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Stock Repurchase (4 methods)</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"> 1. Buy shares on the market</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"> 2. Tender Offer to Shareholders</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"> 3. Dutch Auction</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"> 4. Private Negotiation (Green Mail)</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><span style="font-family: 'Times New Roman';"><br />
</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><span style="font-family: 'Times New Roman';">Dividend Payments</span></span></div><div style="direction: ltr; language: en-US; line-height: 90%; margin-bottom: 0pt; margin-left: .38in; margin-top: 6.72pt; text-align: left; text-indent: -.38in; unicode-bidi: embed; vertical-align: baseline;"><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"></span></span></div><div style="direction: ltr; language: en-US; margin-bottom: 0pt; margin-top: 16.8pt; mso-line-break-override: restrictions; punctuation-wrap: simple; text-align: left; unicode-bidi: embed; vertical-align: baseline;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><u><span style="color: black; font-family: 'Times New Roman'; font-weight: bold;">Cash Dividend </span></u></span><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black; font-family: 'Times New Roman'; font-size: 28pt;">-</span></span><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;"> Payment of cash by the firm to its shareholders.</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;"></span></span><u style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black; font-family: 'Times New Roman'; font-weight: bold;"><span class="Apple-style-span" style="font-size: large;">Ex-Dividend Date</span></span></u><span style="color: black; font-family: 'Times New Roman'; font-size: 28pt;"> - </span><span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.</span></span><br />
<span style="color: black;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"></span></span><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><u><span style="color: black; font-family: 'Times New Roman'; font-weight: bold;"><span class="Apple-style-span" style="font-size: large;">Record Date</span></span></u><span style="color: black; font-family: 'Times New Roman'; font-size: 28pt;"> - </span><span style="color: black;">Person who owns stock on this date received the dividend.</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;"></span></span><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><u><span style="color: black; font-family: 'Times New Roman'; font-weight: bold;"><span class="Apple-style-span" style="font-size: large;">Stock Dividend</span></span></u><span style="color: black; font-family: 'Times New Roman'; font-size: 28pt;"> - </span><span style="color: black;">Distribution of additional shares to a firm’s stockholders.</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;"></span></span><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><u><span style="color: black; font-family: 'Times New Roman'; font-weight: bold;"><span class="Apple-style-span" style="font-size: large;">Stock Splits</span></span></u><span style="color: black; font-family: 'Times New Roman'; font-size: 28pt;"> - </span><span style="color: black;">Issue of additional shares to firm’s stockholders.</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black;"></span></span><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><u><span style="color: black; font-family: 'Times New Roman'; font-weight: bold;"><span class="Apple-style-span" style="font-size: large;">Stock Repurchase</span></span></u><span style="color: black; font-family: 'Times New Roman'; font-size: 28pt;"> - </span><span style="color: black; font-family: 'Times New Roman';">Firm buys back stock from its shareholders.</span></span></div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-46594353675832331532011-03-21T18:48:00.000-07:002011-03-21T18:48:31.924-07:00STOCK MARKET SENSITIVITY TO INTEREST RATES AND INFLATION<div style="text-align: center;"><b>Abstract</b></div><div style="text-align: center;"><br />
</div><div style="text-align: center;">Nicholas Tessaromatis*</div><div style="text-align: center;"><br />
</div><div style="text-align: center;"></div><div style="text-align: justify;">Knowledge of the interest rate sensitivity of stocks is important in many areas of</div><div style="text-align: justify;">investment and finance. This paper makes three contributions to the existing</div><div style="text-align: justify;">literature: (a) it provides estimates of stock sensitivity to changes in nominal and real</div><div style="text-align: justify;">interest rates and expected inflation (b) it provides estimates of the degree of</div><div style="text-align: justify;">indexation of future growth expectations to changes in nominal and real interest rates</div><div style="text-align: justify;">and expected inflation and (c) examines whether government regulation, cyclicality of</div><div style="text-align: justify;">future cash flows and growth versus value characteristics of stocks can explain the</div><div style="text-align: justify;">differences in interest rate sensitivities across stocks.</div><div style="text-align: justify;">Keywords: stocks market sensitivity to interest rates and inflation, equity duration,</div><div style="text-align: justify;">determinants of interest rate sensitivity</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">.........................................................................................................................................................</div><div style="text-align: center;"></div><div style="text-align: justify;">*Athens Laboratory of Business Administration (ALBA), Athinas Avenue and 2A</div><div style="text-align: justify;">Areos Street, 166 71 Vouliagmeni, Athens, Greece, phone: (+30) 210 896 4531, fax:</div><div style="text-align: justify;">(+30) 210 896 4737, email: ntessaro@alba.edu.gr.</div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-19096232257458192792011-03-15T19:21:00.000-07:002011-03-15T19:21:10.499-07:00Return on EquityReturn on Equity (ROE) is a financial ratio that describes the ability of its own capital (equity) to get net profit. In other words ROE can describe the of the company's ability to generate profits for shareholders, so that this ratio can be the attraction of investors to invest in the company.<br />
<br />
The equation can be used to calculate a company's ROE is as follows (Keown et.al, 2008):<br />
<br />
<div style="text-align: center;">ROE = Net Income / Equity</div><div style="text-align: center;"><br />
</div><div style="text-align: left;"><b>ROE influence on stock return</b></div><div style="text-align: left;"><b><br />
</b></div><div style="text-align: left;">Results of the study Jauhari (2003)<span class="Apple-style-span" style="font-size: xx-small;">1</span> proved that the ROE has a significant positive influence on stock return. With the increasing value of ROE will give a fairly good signal to investors and prospective investors that the company is able to use the equity they have to generate income or profit.</div><div style="text-align: left;"><br />
</div><div style="text-align: left;">However Sasongko & Wulan (2006)<span class="Apple-style-span" style="font-size: xx-small;">2</span> found a different relationship. Where the results of his research found that profitability ratios like ROA and ROE does not affect the stock price. This means that ROA and ROE can not be used to determine the value of the company.</div><div style="text-align: left;"><br />
</div><div style="text-align: left;">...................................................................................................................................................................</div><div style="text-align: left;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;">1. <span class="Apple-style-span" style="font-size: 16px;">Jauhari, Robertus Tri Brata. 2003 (</span>Analysis of the influence of debt to equity ratio, price to book value, return on equity, price to earnings ratio and dividend payout ratio on stock return). <span class="Apple-style-span" style="font-size: 16px;"><span class="hps" title="Click for alternate translations">Accounting</span></span><span class="Apple-style-span" style="font-size: 16px;"> </span><span class="Apple-style-span" style="font-size: 16px;"><span class="hps" title="Click for alternate translations">master's thesis</span></span><span class="Apple-style-span" style="font-size: 16px;"><span title="Click for alternate translations">.</span></span><span class="Apple-style-span" style="font-size: 16px;"> </span><span class="Apple-style-span" style="font-size: 16px;"><span class="hps" title="Click for alternate translations">Diponegoro University</span></span><span class="Apple-style-span" style="font-size: 16px;"><span class="" title="Click for alternate translations">,</span></span><span class="Apple-style-span" style="font-size: 16px;"> </span><span class="Apple-style-span" style="font-size: 16px;"><span class="hps" title="Click for alternate translations">Semarang</span></span><span class="Apple-style-span" style="font-size: 16px;"><span class="" title="Click for alternate translations">.</span></span></span></div><div style="text-align: left;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><span class="Apple-style-span" style="font-size: 16px;"><span class="" title="Click for alternate translations"><br />
</span></span></span></div><div style="text-align: left;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><span class="Apple-style-span" style="font-size: 16px;"><span class="" title="Click for alternate translations">2. </span></span></span><span class="Apple-style-span" style="font-family: 'Times New Roman', serif; font-size: 16px;">Sasongko, Noer & Wulandari, Nila. 2006 (Effect of EVA and profitability ratios to the stock price). </span>Empirika, Vol. 19 No. 7, Juny 2006.</div><div class="MsoNormal" style="margin-bottom: 12.0pt; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: -36.0pt;"><span style="mso-bidi-font-weight: bold;"><o:p></o:p></span></div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-60271072783240637382011-03-13T19:37:00.000-07:002011-03-13T19:37:16.794-07:00AN EMPIRICAL INVESTIGATION OF THE RELATIONSHIP AMONG P/E RATIO, STOCK RETURN AND DIVIDEND YIELS FOR ISTANBUL STOCK EXCHANGE<div style="text-align: center;"><b>Abstract</b></div><div style="text-align: center;"><b><br />
</b></div><div style="text-align: center;"><b></b></div><div style="text-align: center;"><b>Funda H. SEZGIN</b></div><div style="text-align: center;"><b>Mimar Sinan Fine Arts University, Faculty of Science and Letters</b></div><div style="text-align: center;"><b>Statistics Department Ciragan Cad. No:1, 34347, Besiktas, Istanbul, Turkey</b></div><div style="text-align: center;"><b>E-mail: fsezgin@msgsu.edu.tr</b></div><br />
<br />
The price to earnings ratio (P/E) is widely used, particularly by practitioners, as a measure of<br />
relative stock valuation. Price to earnings is an indicator which indicates current mood of<br />
investors how much they are willing to pay per unit of company earnings. Traditionally, the P/E<br />
ratio has been assumed to be an indicator of the quality of an investment; a relatively low P/E<br />
ratio implies a good investment, whereas a relatively high P/E ratio indicates a “poor” investment<br />
prospect.<br />
<br />
The aim of this study is to identify relationship among market stock return, dividend yields and<br />
price to earnings ratio affect in the period 2000.01-2009.12. Therefore, to determine long-run<br />
and short-run relationship, Johansen cointegration tests, error-correction models and Granger<br />
causality tests are used.<br />
<br />
Key Words: Price to Earnings Ratio, Stock Return, Dividend Yields, Time Series.<br />
<br />
JEL Classification: G20, G30CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-15383974677431283462011-03-11T00:43:00.000-08:002011-03-11T19:46:37.093-08:00Return on Assets<div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Sharpe</span> <span class="hps" title="Click for alternate translations">et.al</span> <span class="hps" title="Click for alternate translations">(2006</span><span title="Click for alternate translations">)</span> <span class="hps" title="Click for alternate translations">claimed</span> <span class="hps" title="Click for alternate translations">Return on</span> <span class="hps" title="Click for alternate translations">Assets</span> <span class="hps" title="Click for alternate translations">is one</span> <span class="hps" title="Click for alternate translations">of the</span> <span class="hps" title="Click for alternate translations">financial ratios</span> <span class="hps" title="Click for alternate translations">that</span> <span class="hps" title="Click for alternate translations">are </span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">intended</span> <span class="hps" title="Click for alternate translations">to</span> <span class="hps" title="Click for alternate translations">measure the</span> <span class="hps" title="Click for alternate translations">performance of</span> <span class="hps" title="Click for alternate translations">the company's main</span> <span class="hps" title="Click for alternate translations">business</span> <span class="hps" title="Click for alternate translations">or</span> <span class="hps" title="Click for alternate translations">how</span> <span class="hps" title="Click for alternate translations">profitable</span> </span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">and</span> <span class="hps" title="Click for alternate translations">efficient</span> <span class="hps" title="Click for alternate translations">company</span><span class="hps" title="Click for alternate translations">in</span> <span class="hps" title="Click for alternate translations">producing</span> <span class="hps atn" title="Click for alternate translations">(</span><span title="Click for alternate translations">or</span> <span class="hps" title="Click for alternate translations">gain</span><span title="Click for alternate translations">)</span> <span class="hps" title="Click for alternate translations">as well </span><span class="hps" title="Click for alternate translations">as</span> <span class="hps" title="Click for alternate translations">sell</span> <span class="hps" title="Click for alternate translations">goods</span> <span class="hps" title="Click for alternate translations">and</span> <span class="hps" title="Click for alternate translations">services</span> <span class="hps" title="Click for alternate translations">to</span></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations"></span><span class="hps" title="Click for alternate translations">customers</span><span class="" title="Click for alternate translations">.</span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">The equation</span> <span class="hps" title="Click for alternate translations">can</span> <span class="hps" title="Click for alternate translations">be used</span> <span class="hps" title="Click for alternate translations">to</span> <span class="hps" title="Click for alternate translations">calculate the</span> <span class="hps" title="Click for alternate translations">ROA</span> <span class="hps" title="Click for alternate translations">of a</span> <span class="hps" title="Click for alternate translations">company</span> <span class="hps" title="Click for alternate translations">are </span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">as</span> <span class="hps" title="Click for alternate translations">follows</span> <span class="hps atn" title="Click for alternate translations">(</span><span class="" title="Click for alternate translations">Sharpe</span> <span class="hps" title="Click for alternate translations">et.al</span><span title="Click for alternate translations">,</span> <span class="hps" title="Click for alternate translations">2006)</span><span class="" title="Click for alternate translations">:</span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilbp_IRb72NdtBnusdXW9Fcy97w1L700o8y77AG1r4N3JSDtI8El12TyB3vbfMUFzlxb0TSYUPkKsJltG2VTLxQfDiEVxaZfNwXHDI3S1j1XB4d6al2-vVmoILERHB7ducrzyX1JpVjzHe/s1600/ROA1.GIF" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilbp_IRb72NdtBnusdXW9Fcy97w1L700o8y77AG1r4N3JSDtI8El12TyB3vbfMUFzlxb0TSYUPkKsJltG2VTLxQfDiEVxaZfNwXHDI3S1j1XB4d6al2-vVmoILERHB7ducrzyX1JpVjzHe/s1600/ROA1.GIF" /></span></a></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><b><span class="hps" title="Click for alternate translations">ROA</span> <span class="hps" title="Click for alternate translations">influence</span> <span class="hps" title="Click for alternate translations">on</span> <span class="hps" title="Click for alternate translations">stock return</span></b></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Research</span> <span class="hps" title="Click for alternate translations">conducted</span> <span class="hps" title="Click for alternate translations">Prihantini</span> <span class="hps" title="Click for alternate translations">(2009</span><span title="Click for alternate translations">)</span> <span class="hps" title="Click for alternate translations">found</span> <span class="hps" title="Click for alternate translations">results</span> <span class="hps" title="Click for alternate translations">that the</span> <span class="hps" title="Click for alternate translations">ROA</span><span class="hps" title="Click for alternate translations">has</span> <span class="hps" title="Click for alternate translations">a positive influence </span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">on</span> <span class="hps" title="Click for alternate translations">stock return</span><span title="Click for alternate translations">.</span> <span class="hps" title="Click for alternate translations">With</span> <span class="hps" title="Click for alternate translations">the</span> <span class="hps" title="Click for alternate translations">increasing</span> <span class="hps" title="Click for alternate translations">value of</span> <span class="hps" title="Click for alternate translations">ROA</span> <span class="hps" title="Click for alternate translations">shows a</span> <span class="hps" title="Click for alternate translations">company's performance</span> <span class="hps" title="Click for alternate translations">is </span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">getting better</span><span title="Click for alternate translations">,</span> <span class="hps" title="Click for alternate translations">so that</span><span class="hps" title="Click for alternate translations">the benefits</span> <span class="hps" title="Click for alternate translations">to be received</span> <span class="hps" title="Click for alternate translations">by</span> <span class="hps" title="Click for alternate translations">investors</span> <span class="hps" title="Click for alternate translations">will also increase.</span> </span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Of </span><span class="hps" title="Click for alternate translations">course</span> <span class="hps" title="Click for alternate translations">this</span> <span class="hps" title="Click for alternate translations">will</span> <span class="hps" title="Click for alternate translations">attract</span> <span class="hps" title="Click for alternate translations">the</span> <span class="hps" title="Click for alternate translations">investors</span> <span class="hps" title="Click for alternate translations">or</span> <span class="hps" title="Click for alternate translations">prospective</span> <span class="hps" title="Click for alternate translations">investors</span> <span class="hps" title="Click for alternate translations">to</span><span class="hps" title="Click for alternate translations">invest</span> <span class="hps" title="Click for alternate translations">funds</span> <span class="hps" title="Click for alternate translations">held</span> <span class="hps" title="Click for alternate translations">in</span> <span class="hps" title="Click for alternate translations">the company.</span> <span class="hps" title="Click for alternate translations">This</span> <span class="hps" title="Click for alternate translations">is in accordance</span> <span class="hps" title="Click for alternate translations">with the</span><span class="hps" title="Click for alternate translations">statement of</span> <span class="hps" title="Click for alternate translations">Ang</span> <span class="hps" title="Click for alternate translations">(1997</span><span title="Click for alternate translations">)</span> <span class="hps" title="Click for alternate translations">which</span> <span class="hps" title="Click for alternate translations">states</span> <span class="hps" title="Click for alternate translations">that</span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations"></span><span class="hps" title="Click for alternate translations">corporate profits</span> <span class="hps" title="Click for alternate translations">are</span> <span class="hps" title="Click for alternate translations">increasing</span> <span class="hps" title="Click for alternate translations">signs</span> <span class="hps" title="Click for alternate translations">that</span> <span class="hps" title="Click for alternate translations">will</span> <span class="hps" title="Click for alternate translations">provide</span> <span class="hps" title="Click for alternate translations">operational</span><span class="hps" title="Click for alternate translations">and</span> <span class="hps" title="Click for alternate translations">financial</span> </span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">strength of</span> <span class="hps" title="Click for alternate translations">companies</span> <span class="hps" title="Click for alternate translations">is getting better</span><span title="Click for alternate translations">,</span> <span class="hps" title="Click for alternate translations">thereby providing</span> <span class="hps" title="Click for alternate translations">a positive influence on</span> <span class="hps" title="Click for alternate translations">equity</span><span title="Click for alternate translations">.</span> </span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Even</span> <span class="hps" title="Click for alternate translations">Elleuch</span> <span class="hps" title="Click for alternate translations">(2009</span><span title="Click for alternate translations">)</span> <span class="hps" title="Click for alternate translations">in</span> <span class="hps" title="Click for alternate translations">his research</span> <span class="hps" title="Click for alternate translations">found</span> <span class="hps" title="Click for alternate translations">that</span> <span class="hps" title="Click for alternate translations">ROA</span> <span class="hps" title="Click for alternate translations">contribute</span> <span class="hps" title="Click for alternate translations">to the</span> <span class="hps" title="Click for alternate translations">superior</span> <span class="hps" title="Click for alternate translations">level</span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations"> of</span> <span class="hps" title="Click for alternate translations">positive</span><span class="hps" title="Click for alternate translations">correlation</span> <span class="hps" title="Click for alternate translations">in</span> <span class="hps" title="Click for alternate translations">predicting</span> <span class="hps" title="Click for alternate translations">stock return</span><span title="Click for alternate translations">.</span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Nguyen</span> <span class="hps" title="Click for alternate translations">(2004</span><span title="Click for alternate translations">)</span> <span class="hps" title="Click for alternate translations">finance</span> <span class="hps" title="Click for alternate translations">fundamental</span> <span class="hps" title="Click for alternate translations">analysis</span> <span class="hps" title="Click for alternate translations">to</span> <span class="hps" title="Click for alternate translations">look at</span> <span class="hps" title="Click for alternate translations">its relationship</span> <span class="hps" title="Click for alternate translations">with</span> <span class="hps" title="Click for alternate translations">stock </span></span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">returns</span> <span class="hps" title="Click for alternate translations">in</span> <span class="hps" title="Click for alternate translations">Japan</span> <span class="hps" title="Click for alternate translations">in the</span> <span class="hps" title="Click for alternate translations">1993-2003</span> <span class="hps" title="Click for alternate translations">time</span><span class="hps" title="Click for alternate translations">period</span><span title="Click for alternate translations">.</span> <span class="hps" title="Click for alternate translations">Research results</span> <span class="hps" title="Click for alternate translations">showed</span></span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations"></span> <span class="hps" title="Click for alternate translations">that</span> <span class="hps" title="Click for alternate translations">each</span> <span class="hps" title="Click for alternate translations">signal</span> <span class="hps" title="Click for alternate translations">financial</span><span class="hps" title="Click for alternate translations">fundamentals</span> <span class="hps" title="Click for alternate translations">have</span> <span class="hps" title="Click for alternate translations">positive</span> <span class="hps" title="Click for alternate translations">correlation</span> <span class="hps" title="Click for alternate translations">with</span> <span class="hps" title="Click for alternate translations">stock</span> <span class="hps" title="Click for alternate translations">return</span><span title="Click for alternate translations">.</span> </span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Even the</span><span class="hps" title="Click for alternate translations">ratios</span> <span class="hps" title="Click for alternate translations">ROA</span> <span class="hps" title="Click for alternate translations">and</span> <span class="hps" title="Click for alternate translations">ROE</span> <span class="hps" title="Click for alternate translations">is a</span> <span class="hps" title="Click for alternate translations">fundamental</span> <span class="hps" title="Click for alternate translations">signal</span> <span class="hps" title="Click for alternate translations">which</span> <span class="hps" title="Click for alternate translations">has the</span> <span class="hps" title="Click for alternate translations">most</span><span class="hps" title="Click for alternate translations">significant</span> </span></span></span></span></span></div><div style="text-align: justify;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">relationship</span> <span class="hps" title="Click for alternate translations">to</span> <span class="hps" title="Click for alternate translations">stock return</span><span class="" title="Click for alternate translations">.</span></span></span></span></span></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></div><div class="separator" style="clear: both; text-align: center;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: arial, sans-serif; font-size: 16px;"><span class="" title="Click for alternate translations"><span class="" title="Click for alternate translations"><span title="Click for alternate translations"><br />
</span></span></span></span></div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com1tag:blogger.com,1999:blog-9215550108155277881.post-60786060433130077752011-03-07T20:56:00.000-08:002011-03-07T20:56:08.971-08:00Financial Ratios<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">The financial ratio</span> <span class="hps" title="Click for alternate translations">is</span> <span class="hps" title="Click for alternate translations">an expression</span> <span class="hps" title="Click for alternate translations">of the</span> <span class="hps" title="Click for alternate translations">relationship</span> <span class="hps" title="Click for alternate translations">between</span> <span class="hps" title="Click for alternate translations">the numbers</span> </span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">on</span> <span class="hps" title="Click for alternate translations">financial</span> <span class="hps" title="Click for alternate translations">statements</span> <span class="hps" title="Click for alternate translations">to be more</span> <span class="hps" title="Click for alternate translations">meaningful</span><span title="Click for alternate translations">. </span><span class="hps" title="Click for alternate translations">Mathematically</span><span class="" title="Click for alternate translations">,</span> <span class="hps" title="Click for alternate translations">the financial ratios</span> <span class="hps" title="Click for alternate translations">are not</span> <span class="hps" title="Click for alternate translations">more</span> <span class="hps" title="Click for alternate translations">than</span> <span class="hps" title="Click for alternate translations">the ratio</span> <span class="hps" title="Click for alternate translations">in which the</span> <span class="hps" title="Click for alternate translations">numerator</span> <span class="hps" title="Click for alternate translations">and</span> <span class="hps" title="Click for alternate translations">the denominator</span> <span class="hps" title="Click for alternate translations">is taken</span> <span class="hps" title="Click for alternate translations">from the</span><span class="hps" title="Click for alternate translations">financial data</span> <span class="hps" title="Click for alternate translations">on</span> <span class="hps" title="Click for alternate translations">the financial statements</span> <span class="hps atn" title="Click for alternate translations">(</span><span class="" title="Click for alternate translations">Keown</span> <span class="hps" title="Click for alternate translations">et.al</span><span class="" title="Click for alternate translations">,</span> <span class="hps" title="Click for alternate translations">2008</span><span class="" title="Click for alternate translations">)</span><span title="Click for alternate translations">.</span></span><br />
<span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span><br />
<span title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Usefulness</span> <span class="hps" title="Click for alternate translations">of Financial</span> <span class="hps" title="Click for alternate translations">Ratios</span></span></span><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Financial ratios</span> <span class="hps" title="Click for alternate translations">designed</span> <span class="hps" title="Click for alternate translations">to</span> <span class="hps" title="Click for alternate translations">help</span> <span class="hps" title="Click for alternate translations">us</span> <span class="hps" title="Click for alternate translations">evaluate</span> <span class="hps" title="Click for alternate translations">a</span> <span class="hps" title="Click for alternate translations">financial statement</span><span title="Click for alternate translations">,</span></span></span></span><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span title="Click for alternate translations"></span><span class="hps" title="Click for alternate translations">in order to</span> <span class="hps" title="Click for alternate translations">identify</span> <span class="hps" title="Click for alternate translations">some</span> <span class="hps" title="Click for alternate translations">weaknesses</span> <span class="hps" title="Click for alternate translations">and</span> <span class="hps" title="Click for alternate translations">the company's financial </span></span></span></span><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations"></span><span class="hps" title="Click for alternate translations">strength</span> <span class="hps atn" title="Click for alternate translations">(</span><span class="" title="Click for alternate translations">Brigham</span> <span class="hps" title="Click for alternate translations">&</span> <span class="hps" title="Click for alternate translations">Houston</span><span title="Click for alternate translations">,</span> <span class="hps" title="Click for alternate translations">2006</span><span title="Click for alternate translations">)</span><span title="Click for alternate translations">.</span> </span></span></span><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span></span><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">Meanwhile</span><span title="Click for alternate translations">, according to</span><span class="hps" title="Click for alternate translations">Keown</span> <span class="hps" title="Click for alternate translations">et.al</span> <span class="hps" title="Click for alternate translations">(2008</span><span title="Click for alternate translations">)</span> <span class="hps" title="Click for alternate translations">Financial ratios</span> <span class="hps" title="Click for alternate translations">provide</span> <span class="hps" title="Click for alternate translations">two</span> <span class="hps" title="Click for alternate translations">ways</span> <span class="hps" title="Click for alternate translations">how to</span> <span class="hps" title="Click for alternate translations">make a</span> <span class="hps" title="Click for alternate translations">comparison</span> <span class="hps" title="Click for alternate translations">of</span> <span class="hps" title="Click for alternate translations">financial data</span> <span class="hps" title="Click for alternate translations">company</span><span title="Click for alternate translations">,</span> <span class="hps" title="Click for alternate translations">which</span> <span class="hps" title="Click for alternate translations">means:</span></span></span></span><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"></span></span><br />
<ul><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">
<li><span class="hps" title="Click for alternate translations">We can</span> <span class="hps" title="Click for alternate translations">examine</span> <span class="hps" title="Click for alternate translations">the ratio</span> <span class="hps" title="Click for alternate translations">between</span> <span class="hps" title="Click for alternate translations">the time</span> <span class="hps" title="Click for alternate translations">to</span> <span class="hps" title="Click for alternate translations">examine the</span><span class="hps" title="Click for alternate translations">direction of</span> <span class="hps" title="Click for alternate translations">movement</span><span title="Click for alternate translations">.</span></li>
<li><span class="hps" title="Click for alternate translations">We</span> <span class="hps" title="Click for alternate translations">can</span> <span class="hps" title="Click for alternate translations">compare</span> <span class="hps" title="Click for alternate translations">the ratio of</span> <span class="hps" title="Click for alternate translations">companies</span> <span class="hps" title="Click for alternate translations">with</span> <span class="hps" title="Click for alternate translations">ratios</span> <span class="hps" title="Click for alternate translations">of</span> <span class="hps" title="Click for alternate translations">other</span><span class="hps" title="Click for alternate translations">companies</span><span title="Click for alternate translations">.</span></li>
</span></ul><br />
<span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="hps" title="Click for alternate translations">The purpose</span> <span class="hps" title="Click for alternate translations">of</span> <span class="hps" title="Click for alternate translations">the use</span> <span class="hps" title="Click for alternate translations">of a</span> <span class="hps" title="Click for alternate translations">ratio</span> <span class="hps" title="Click for alternate translations">when</span> <span class="hps" title="Click for alternate translations">analyzing</span> <span class="hps" title="Click for alternate translations">the information to be</span> <span class="hps" title="Click for alternate translations">analyzed</span> <span class="hps" title="Click for alternate translations">for</span> <span class="hps" title="Click for alternate translations">the ratio</span> <span class="hps" title="Click for alternate translations">of</span> <span class="hps" title="Click for alternate translations">two different companies</span> <span class="hps" title="Click for alternate translations">can be</span><span class="hps" title="Click for alternate translations">compared</span> <span class="hps" title="Click for alternate translations">or even</span> <span class="hps" title="Click for alternate translations">a</span> <span class="hps" title="Click for alternate translations">company</span> <span class="hps" title="Click for alternate translations">with</span></span></span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span title="Click for alternate translations"><span class="hps" title="Click for alternate translations"><span class="hps" title="Click for alternate translations"></span> <span class="hps" title="Click for alternate translations">the boundaries of</span> </span></span><span class="hps" title="Click for alternate translations">different times</span><span title="Click for alternate translations">.</span></span>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-385147416801571082011-03-04T21:20:00.000-08:002011-03-04T21:20:39.466-08:00Imperfect Capital Markets, Income Distribution and the ‘Credit Channel’: A General Equilibrium Approach<div style="text-align: center;"><b>Spiros BOUGHEAS</b></div><div style="text-align: center;"><b><br />
</b></div><div style="text-align: center;">School of Economics</div><div style="text-align: center;">University of Nottingham</div><div style="text-align: center;">Nottingham, NG7 2RD</div><div style="text-align: center;">United Kingdom</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">e-mail: spiros.bougheas@nottingham.ac.uk</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">30 January 2002</div><div style="text-align: center;"><br />
</div><div style="text-align: center;"><b>Abstract</b></div><div style="text-align: center;"><br />
</div><div style="text-align: center;"></div><div style="text-align: center;">We develop and analyse a simple general equilibrium model with</div><div style="text-align: center;">capital market imperfections We find that the impact of monetary</div><div style="text-align: center;">policy on real economic activity depends on the initial distribution</div><div style="text-align: center;">of wealth in the economy. Changes in the opportunity cost of funds</div><div style="text-align: center;">affect not only the choice of financial source but also the decisions</div><div style="text-align: center;">of agents to become entrepreneurs. We also identify a number of</div><div style="text-align: center;">new issues that can potentially be addressed by following our general</div><div style="text-align: center;">equilibrium approach.</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">Key Words: Income Distribution, Imperfect Capital Markets,</div><div style="text-align: center;">Credit Channel</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">JEL Classification Codes: G20, E44</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">Acknoledgements: I would like to thank participants at the 2002</div><div style="text-align: center;">European Econometric Society meeting for their helpful comments and</div><div style="text-align: center;">suggestions.</div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-45850066853708954792011-03-03T19:14:00.000-08:002011-03-03T19:14:22.794-08:00EFFECT OF EXCHANGE RATE VOLATILITY ON THE GHANA STOCK EXCHANGE<div style="text-align: center;"><b>ABSTRACT</b></div><div style="text-align: center;"><br />
</div><div style="text-align: center;">Charles Adjasi</div><div style="text-align: center;"> University of Ghana, Ghana.</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">Simon K. Harvey</div><div style="text-align: center;">University of Ghana, Ghana.</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">Daniel Agyapong</div><div style="text-align: center;">University of Cape Coast, Ghana.</div><br />
<br />
<br />
The study looked at the relationship between Stock Markets and Foreign Exchange market, and determined whether movements in exchange rates have an effect on stock market in Ghana. The Exponential Generalised Autoregressive Conditional Heteroskedascity (EGARCH) model was used in establishing the relationship between exchange rate volatility and stock market volatility. It was found that there is negative relationship between exchange rate volatility and stock market returns – a depreciation in the local currency leads to an increase in stock market returns in the long run. Where as in the short run it reduces stock market returns. Additionally, there is volatility persistence in most of the macroeconomic variables; current period’s rate has an effect on forecast variance of future rate. It was also revealed that an increase (decrease) in trade deficit and expectation in future rise in trade deficit will decrease (increase) stock market volatility. In addition, the consumer price index has a strong relationship with stock market volatility. This means that an increase in consumer price will lead to a rise in stock market volatility. Finally, there is the presence of leverage effect and volatility shocks in stock returns on the Ghana Stock Exchange.CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-37645083438247782532011-03-02T19:00:00.000-08:002011-03-02T19:00:11.993-08:00Stock return<div class="MsoNormal">Stock return is one of the factors which influence an investor's decision to invest in shares. Stock return signifies the returnearned by an investor for an amount of money that has beeninvested. Meanwhile, investment could be interpreted as placing a number of current funds, hoping to gain advantage in the future.</div><div class="MsoNormal"><br />
Return can be classified into two types, namely the realization of return and expected return. Return the realization of a return that isactually happening or could be called also return true. While theexpected return is the return which has not happened yet, but is expected to occur in the foreseeable future, by the investor. The equation can be used in the calculation of stock returns is as follows.</div><div class="MsoNormal"><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhd-_VIQMhfzIt8lnErh480NG08yyBzA9XLFgCMnjARoNayEZ-kfsXGvZ5QLcYrakoojOWu3LOdx2c-HolRk2inV99fI7pccFS8bI0By-0EJwb_MGkpqzODwoD3UbClTrmTxBjzaNq76Uyv/s1600/stock+return.bmp" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhd-_VIQMhfzIt8lnErh480NG08yyBzA9XLFgCMnjARoNayEZ-kfsXGvZ5QLcYrakoojOWu3LOdx2c-HolRk2inV99fI7pccFS8bI0By-0EJwb_MGkpqzODwoD3UbClTrmTxBjzaNq76Uyv/s1600/stock+return.bmp" /></a></div><br />
<br />
<div class="MsoNormal"><span class="hps"><span style="color: black; font-family: "Arial","sans-serif";">Description</span></span><span title="Click for alternate translations"></span><span class="apple-style-span"><span style="color: black; font-family: "Arial","sans-serif";">:</span></span><span style="color: black; font-family: "Arial","sans-serif";"><br />
<br />
<span class="hps"><span title="Click for alternate translations">Ri</span></span><span title="Click for alternate translations"><span class="apple-style-span">,</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">t</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">=</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">Return</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">stock</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">i</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">for</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">time</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">t</span></span><br />
<span class="hps"><span title="Click for alternate translations">Pt</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">=</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">stock</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">price</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">for</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">time</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">t</span></span><br />
<span class="hps"><span title="Click for alternate translations">Pt</span></span><span title="Click for alternate translations"><span class="atn">-</span></span><span title="Click for alternate translations"><span class="apple-style-span">1</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">=</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">share price</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">for</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">the previous time</span></span><br />
<span class="hps"><span title="Click for alternate translations">Dt</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">=</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">Cash dividends</span></span><span class="apple-converted-space"> <span title="Click for alternate translations"></span><span class="hps">paid</span></span></span><o:p></o:p></div></div><div class="MsoNormal"></div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-8455437106786374362011-03-01T18:24:00.000-08:002011-03-01T18:24:40.695-08:00Warren buffet-style investment (Part 2)Do you have understand the <a href="http://mindsetoffinance.blogspot.com/2011/02/warren-buffet-style-investment-part-1.html">investment style of Warren Buffet part 1</a>? If so, then it is time we move on to part 2. Here's how investing as taught by Warren Buffet.<br />
<br />
<br />
<ul><li>Never be tempted to offer a wealth of transactions quickly, which involves a company that is relatively complicated.</li>
<li>When you are confident about the prospects of a strong business, act aggressively and increase your investment to strengthen its position.</li>
<li>Do not trade just for the purpose of the transaction.</li>
<li>Stop seeing stock prices every day.</li>
<li>Look for quality business with low prices, for reasons other than business fundamentals or quality management.</li>
<li>Do not go near the herd that was raging. If not, you and your investment will probably drift.</li>
<li>Ignore the stock market forecasts.</li>
<li>Be afraid when others greedy, and greedy while others fear.</li>
</ul>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com1tag:blogger.com,1999:blog-9215550108155277881.post-45518282073557567232011-02-28T18:34:00.000-08:002011-02-28T18:34:45.276-08:00Warren buffet-style investment (Part 1)Who is the best investment teachers of this century? Of course he is Warren Buffet. He managed to change the investment shares of Washington Post worth 10.6 million dollars into an investment worth over 1 billion dollars. He also change the investment shares of Coca-Cola worth 1 billion dollars to be worth 8 billion dollars.<br />
<br />
So it is appropriate that we learn from Warren Buffet. And I will share tips investment made by a Warren Buffet to you.<br />
<ul><li>Buy a business or company that you understand</li>
<li>Look for companies that can survive long with predictable business models</li>
<li>Become a financial advisor for yourself</li>
<li>Invest to increase the value of your investas, not for profit moment</li>
<li>Do not have a stock that will cause you to panic and sell when the price dropped by 50%</li>
<li>Be patient as long as possible</li>
<li>Do not be fixated on stock prices. But learn the underlying business, the ability to generate profits, its future, and others.</li>
<li>Business performance is key in picking stocks.</li>
<li>Look for certainty in an uncertain market</li>
<li>Look for companies that stand out among its competitors</li>
<li>Hang in there in the market as long as you can.</li>
</ul>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0tag:blogger.com,1999:blog-9215550108155277881.post-60894171487033085392011-02-27T21:05:00.000-08:002011-02-27T21:08:11.614-08:00Stock Returns, Inflation, and Output<div style="text-align: center;"><span class="Apple-style-span" style="font-size: large;">ABSTRACT</span><br />
<br />
<br />
TURAN G. BALI<br />
Zicklin School of Business, Baruch College<br />
<br />
YI TANG<br />
Zicklin School of Business, Baruch College<br />
<br />
First draft: August 10, 2005<br />
This version: January 5, 2007</div><br />
This paper tests whether innovations in macroeconomic variables are risks that are rewarded in<br />
the stock market. The aggregate economy is captured with two dynamic states - inflation and real<br />
economic activity, extracted from 11 observed macroeconomic series using the maximum likelihood<br />
method joint with Kalman filter. The economic shocks are defined as the difference between the<br />
ex post filtering updates on the states of economy and their ex ante expectations. <br />
<br />
The conditional covariances between excess returns on a large cross section of stock portfolios and the economic shocks are estimated using bivariate GARCH models. Then, the system of equations are estimated with a common slope coefficient between excess returns and their conditional covariance with the economic shocks. <br />
<br />
The results indicate a significantly negative (positive) relation between the portfolio returns<br />
and their conditional covariance with the inflation-related (output-related) shocks. These findings are robust to different portfolio formations, alternative specifications of the conditional covariance, and different distributional assumptions for innovations in returns and macroeconomic variables.<br />
<br />
<div style="text-align: center;">...</div><div style="text-align: center;"><br />
</div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com1tag:blogger.com,1999:blog-9215550108155277881.post-81501991063670589722011-02-26T23:24:00.000-08:002011-02-26T23:26:25.083-08:00Become an investor<div class="MsoNormal"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 115%;">You want to become an investor? </span></div><br />
<br />
<div class="MsoNormal"></div><div class="MsoNormal"></div><div class="MsoNormal"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 115%;"> </span>To become an investor you must have the following conditions:</div><br />
<div class="MsoNormal"></div><ol>
<li>Having a strong desire and motivation, such as simply to make money, to secure your retirement, to be able to afford those items you dream about or to pay for a child's college education.</li>
<li>Willing to learn,because the world of investing is very dynamic , so you should always learn at all times. </li>
<li>Ability to control your emotions, and sometimes patience. </li>
</ol><br />
<div class="MsoNormal">Why should you invest?. The reason is very simple, just about how to get more money for your life. If you want to not worry about how to buy a new home, buy a new car, get the latest new phone or camera and else, then you need another source income, and investment is one of the promising sources of revenue gains.</div><div class="MsoNormal"><br />
So many types of investments that you can do, such as investing in gold, stocks, bonds, property, and other investments. We will discuss the types of investments in the next article. But you should remember is in addition to promising great benefits, investment also carries the risk that will make you lose your money.</div><div class="MsoNormal">You should be cautious in deciding the type of investment that you will do.<br />
<br />
The basic principle is greater the risk, the greater the benefits you will receive. as seen in the following chart :</div><div class="MsoNormal"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu1yGtYm_kxSGABIKxBq16f56nVLB8p4RoqMqX4BLf2LdFZfgYYgWjxThf9HIHC3IS12ErezZTfHmAQOL9KvzlQXbUdbJ0anocWp3QHppfqQEhO25pgokfRbMJPSMmZFZvf8aSsl4DnvB3/s1600/chart.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu1yGtYm_kxSGABIKxBq16f56nVLB8p4RoqMqX4BLf2LdFZfgYYgWjxThf9HIHC3IS12ErezZTfHmAQOL9KvzlQXbUdbJ0anocWp3QHppfqQEhO25pgokfRbMJPSMmZFZvf8aSsl4DnvB3/s1600/chart.JPG" /></a></div><div class="MsoNormal"></div>CV. KARYA BERSAMAhttp://www.blogger.com/profile/07171164269021230632noreply@blogger.com0