This article uses Granger‐causality tests to study the dynamic relationship between stock returns and dividend yields in the American and Japanese equity markets. The “signaling” hypothesis of dividends along with the efficient market hypothesis is considered to : a) explain the strong...

This study examines predicability and volatility in three major stock markets, (the US, UK, and Japan) using the Vector Autoregressive Approach and the Multivariate Autoregressive Conditional Heteroskedastic‐in‐mean (ARCH‐M) approach. We find that in the three markets: a) stock returns are...

Summarizes previous research on factors affecting the market value of a firm’s equity and puts forward a mathematical model based on the idea that its investment opportunity set is positively related to reputation, multinationality, size and profitability; and negatively related to leverage...

Refers to previous research to suggest that US commercial bank managers use discretion to “manage” regulatory capital and that accounting discretion can influence a bank’s investment opportunity set (IOS) and therefore its share price. Challenges the assumption that using accounting...

Summarizes previous research on the impact of the investment opportunity set (IOS) on firm financing, dividend and compensation policies, develops hypotheses on the effects of IOS changes on these three areas and tests them using 1980‐1989 data from a sample of US firms moving high and low IOS...

Summarizes previous valuation models based on accounting information, extends the basic model to include dividends and retained earnings, and develops hypotheses on the relationship between share prices, dividends and earnings for firms with different investment opportunity set (IOS) levels....

Reviews previous research on predicting financial distress and the effects of US Chapter 11 bankruptcy (C11B); and explains how survival analysis and Cox’s (1972) proportional hazards model can be used to estimate the financial outcome for the shareholders of C11B. Reduces a previous data set...

Outlines previous research on capacity planning and considers how the underlying ideas can be applied to higher education institutions (HEIs). Illustrates the components of operational and capacity plans for an HEI, pointing out the differences from and similarities to the manufacturing and...

Discusses the difficulties of measuring, defining and managing capacity; and develops a model which splits it into two components (resource and ability) plus several sub‐components, and recognizes the interfaces between them. Illustrates and defines the sub‐components and identifies three...

Outlines previous research on the pricing of initial public offerings (IPOs), the particular characteristics of e‐commerce firms and the ways in which internet operations differ from traditional business contexts. Uses data from a sample of 28 US business‐to‐business, internet‐based...