In this paper we examine the proposition that small investor sentiment, measured by the change in the discount/premium on closed-end funds, is an important factor in stock returns. We conduct an out-of-sample test of the investor sentiment hypothesis in a market environment that is more likely...

Several empirical studies show that investment strategies that favor the purchase of stocks with low prices relative to dividends, earnings, book values or other measures of value yield higher returns. Some of these studies imply that investors are too optimistic about (glamour) stocks that have...

In this paper we appraise the monitoring activity of security analysis from the manager-shareholder conflict perspective. Using a data set of more than 7000 firm-year observations for manufacturing firms tracked by security analysts over the 1988-1994 period, our evidence supports the view that...

In this paper we examine the valuation effects and long-term performance of U.S. multinational firms involved in forced transfers of their foreign operating assets during the 1965-1988 period. The evidence suggests that the operational hedging ability of the firm to address country risk...

Previous work on the exposure of firms to exchange rate risk has primarily focused on U.S. firms and, surprisingly, found stock returns were not significantly affected by exchange-rate fluctuations. The equity market premium for exposure to currency risk was also found to be insignificant. In...

In this paper we appraise the monitoring activity of security analysis from the manager-shareholder conflict perspective. Using a data set of more than 7,000 firm-year observations for manufacturing firms tracked by security analysts over the 1988-1994 period, our evidence supports the view that...

Several empirical studies show that investment strategies that favor the purchase of stocks with low prices relative to dividends, earnings, book value or other measures of value yield higher returns. Some of these studies imply that investors are too optimistic about (glamour) stocks that have...

This paper examines the agency conflicts between shareholders and bondholders of multinational and non-multinational firms and provides an explanation for the puzzle that multinational firms use less long-term debt but more short-term debt than domestic firms. Using a sample of 6,951 firm-year...

Several portfolio managers and stock analysts subscribe to the view that value (high book-to-market) investment strategies yield superior returns relative to glamour (low book-to-market) strategies. Empirical studies confirm that value investment strategies yield higher returns. However, the...

In this paper we examine the monitoring activity of security analysis from the manager-shareholder conflict perspective. Using a unique data set of more than 400 UK firms tracked by security analysts over the 1999-2000 period, our preliminary evidence supports the view that security analysis...