This paper uses empirical test on simple portfolios with two stocks only, then extending to portfolios selected based on various criteria such as industry sectors, correlation coefficient, random pick etc., to test on the effect of skewness to the risk of the selected portfolio. From the experiment results generated by selected portfolios with two stocks only, we find that the portfolio with negative skewness is the weakest in risk reduction. Extending to random portfolio scheme, in US stock markets,...

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For a sample of US firms, Goyal and Santa-Clara (2003) find that the average stock variance is positively associated with higher returns in the subsequent month. The authors interpret the evidence as supporting the hypothesis that idiosyncratic risk matters. Several subsequent papers employing different methodologies present evidence conflicting with the findings of Goyal and Santa-Clara. We adopt the approach of Goyal and Santa-Clara in the Indian context. The results we obtain when we measure volatility...

Corporate savings has become a significant issue in contemporary international debates. Several studies have stressed the pros and cons of corporate cash holding in developed countries. As for the developing countries, the literature for the topic is scarce which contradicts to the significance of the topic due to the growing economic activities of Brazil, Russia, India and China (BRIC) and Turkey. This study proposes to highlight this issue for firms operating in BRIC countries and Turkey by determining...

This study examines how the presence of an accountant in the Board of Directors of a particular corporation is correlated to the discretionary accruals recognized in its financial statements. The discretionary accruals of the top twenty publicly listed firms in the Philippines from years 2009 to 2014 were calculated using the Healy and Modified Jones Models, and board compositions of the firms were evaluated and reviewed. Thereafter, a correlation analysis is applied to determine whether or not there...

This study was undertaken to examine the relationship between the charismatic and democratic style of leadership on organizational transparency evidenced from Islamic insurance organizations in Malaysia. This study aims to investigate the extent of transparency practices based on the adoption of certain leadership styles namely charismatic and democratic. 185 employees of the Islamic insurance companies participated in this study. For the analysis procedures, Smart-PLS version 3.1 was used to assess...

The financial performance of European airlines appears to be improving faster under International Financial Reporting Standards (IFRS) when compared with local European Union Generally Accepted Accounting Principles (GAAP). This paper examines how the accounting standards impact the financial performance of the selected EU airlines. Each of the eleven EU airlines operated in European countries and joined the European Union before 2001. The researcher collected data from the financial statements for...

Investors evaluate their decisions based on the financial statements, thus they will always concern about the quality of accounting information. However, some users were of the opinion that the financial statements fail to satisfy their information needs. Therefore, this study emphasizes on the factors that will influence the quality of accounting information i.e. organizational structure, organizational culture and internal control system. This study was conducted among 100 accounting information...

Although pre bid run ups and illegal insider trading on takeovers is studied in several countries, there is no study on this phenomenon in Chinese corporations. Amidst the very few studies which do examine Chinese mergers and acquisitions, this unique aspect is studied by looking at pre-bid run up of prices / returns for both acquirers and target. A distinct pattern and magnitude of run ups is found in a sample of Chinese firms. Surprisingly, the pattern shows run ups occurring a relatively long...

On December 22, 1999, SEC adopted a new rule mandating companies to have independent auditors review the financial information on Form 10-Q (or 10-QSB) prior to filing the form with the SEC. This paper investigates whether mandatory timely auditor review on quarterly reports increases accounting conservatism. Using data of a large pool of US companies, a number of regressional models provide evidence for more conservative timely reviewed earnings. The result continues to hold when we analyze earnings...