We report international evidence for the presence of stock return rebounds following extreme falls in market indices. The data consists of weekly national index returns for 21 world markets. A non-linear time series model is used to capture part of the variation in return autocorrelations across...

The purpose of this study is to examine the ability of debt ratios in predicting company performance and stock returns in the long run. The U.K. companies included in the FTSE-350 index for the past ten years constitute our sample. We rank the companies according to the degree of leverage that...

We investigate the effect of firm's leverage on stock returns. We start with the explicit valuation model of Modigliani and Miller (1958) and expand the model by including other variables and undertaking a firm and portfolio level analysis. We show that stock returns decline in leverage and that...

We study the relation between capital structure and abnormal returns. We show that a firm's industry matters. Abnormal returns decline in firm leverage. However, abnormal returns increase as the average industry leverage in a risk class increases. Separating the average level of external...

This paper examines the impact of International Monetary Fund (IMF) announcements programs on different sectors of the economy. Previous studies approach this issue from the perspective of financial sector and/or composite index returns only; there is limited evidence on the impact of IMF...

This paper is about the crisis of 2008 in the UK. I first discuss the triggers of the crisis in the UK, then go over the immediate reactions to it in the form of short term policies and conclude with a discussion of long term policies. The crisis of 2008 has its roots in the sub-prime crisis of...

Purpose – The purpose of this paper is to identify herding behaviour on financial markets and measure the herding behaviour impact on the accuracy of analysts' earnings forecasts. Design/methodology/approach – Two alternative measures of herding behaviour, on analysts' earnings forecasts are...