This research attempts to uncover the following important relationships: (i) what is the intensity of the effect of innovations in economic uncertainty on the financial markets (ii) examine the duration i.e., how long does such effect lasts in the financial markets and (iii) investigate the lead-lag relationships between surprises in uncertainty and the financial market movements. It employs the time series data obtained in monthly interval during 1990-2013 on the economic uncertainty and four market...

Private equity is an important source of financing for French companies. This paper examines the relationship between private equity and the competitiveness of buyout firms in a French context. Prior literature has assessed private equity markets and emphasized mechanisms including the replacement or reorganization of management, the reduction of agency costs, the financial pressure through leverage, the influence of shareholders and the management expertise of the fund. However, as the majority...

The implications from market anomaly studies suggest that trading based on price earnings ratios, size, price book, momentum and volatility can produce excess returns. The purpose of this study is to determine the magnitude of excess returns that these anomalies can generate, how often they work, when they work and can they be combined to enhance returns even further. Based on the last 20 years, findings suggest excess returns are still available for some of these anomalies with the probability of...

The Nigerian Accounting Standards Board (NASB) announced its roadmap to convergence with the International Financial Reporting Standards (IFRS) in September 2010. The Nigerian listed companies and Significant Public Interest Entities (SPIE) are required to comply with IFRS effective from 1 January 2012. Following the preparation for the transition from national standards to international standards by 2012, this study investigates the association between selected corporate governance mechanisms and...

This paper empirically investigates organizational form of corporate ownership and capital structure of the U.S. life insurance industry and contributes to the current debate of financial policy differences between stock and mutual life insurers. The ownership factor is expected to have implications for different capital structure, underwriting, and investment policies. Other influential factors are expected to impact policies differences. Accordingly, a set of testable hypotheses is developed to...

This paper empirically investigates whether asymmetries exist in the New Zealand mortgage and short-term interest rate spread over the period 1988:7-2010:04. Using the threshold autoregressive (TAR) and the Momentum Threshold autoregressive (M-TAR) models, this study demonstrates that the mortgage premium adjusts to the threshold faster when the official cash rates fall relative to the mortgage rates, widening their difference, than when the official cash rates move in the opposite direction. First,...

This paper constitutes an attempt to investigate the relationship between Free Cash Flow to Equity (FCFE) and the firm’s market value of the pharmaceutical sector of Jordan by using a valuation technique, wherein the rift between theory and practice still need to be accommodated taking in consideration the relationship of FCFE, Net Income, Net Capital Expenditure, Working Capital and Debt Position. This paper uses panel data covering the period 2004-2010. The determination of a company’s...

Previous research supports the link between the balanced scorecard and firm performance. Research further suggests that this link may be affected by strategy, though few studies provide empirical support for this link. The purpose of this study is to examine and provide empirical evidence on how strategic linkage affects the relationship between BSC usage and performance. The research also examines factors that affect the extent of BSC usage in an environment outside the United States. Based on a...

This paper aims to describe the design of an effective management accounting system based on sustainability accounting concepts for an integration of environmental and social information in sustainability disclosures. In the past few years, the launch of sustainability policy has changed to a formal move and systematic approach in order to ensure that every part of the organisation is involved. Nonetheless, Thai companies appear to be at an early stage of developing their understanding of how to...

Cash-based accounting is a major accounting method that recognizes revenues and expenses at the time physical cash is actually received or paid out. The technical professional issue is that the accounts receivable and accounts payable are not shown in the balance sheet and they do need a type of “audit” in order for a financial statement to be produced and errors abound in these reports. Furthermore, there is no inventory appearing on the balance sheet with cash-based accounting. This resulted...