Recent studies of the expectations hypothesis of the term structure (EHTS) find evidence in favor of the EHTS using post 1980s US data. This has been attributed to the relative macro stability of this period and greater market efficiency. Using a panel of forecasts for 3-month interest rates for...

Purpose – In an introductory finance course, business school students often report difficulty in dealing with several variables and regression equations in testing the forward market efficiency and its relevant hypotheses: forward rate unbiasedness, rational expectations, risk neutrality and...

This study uses structural equation modeling to prioritize CSR components including environmental (E), social (S), and governance (G) performance at the indicator and sub-indicator levels. Based on the panel data of 1,029 (471) companies in the financial industry of developed (emerging) markets...

This paper contributes to the literature on banks’ return on equity (ROE) by decomposing variability in banks’ ROE at the time level and the bank level. Using a new approach of hierarchical linear modelling for Uganda’s banks over the period of 2010 to 2020, we find that the 'between bank'...

We find evidence of heterogeneity and irrationality among professional forecasts for three-month inter-bank rates and ten-year gilt yields at both short and long forecast horizons over the period 1989–2006. The majority of biased forecasts overestimate the future spot rate, consistent with...

Purpose This paper aims to examine the conditional and nonlinear relationship between price-earnings (P/E) ratio and payout ratio. A common finding of previous studies using linear regression model is that the P/E ratio is positively related to the dividend payout ratio. However, none of them...

Purpose A large number of empirical studies investigate the determinants of price-earnings (P/E) ratio by focusing on fundamental factors. However, there has been an increasing concern that stock valuation is also driven by investor sentiment. This paper aims to extend the existing literature by...

Purpose – In an introductory finance course, business school students often report difficulty in dealing with several variables and regression equations in testing the forward market efficiency and its relevant hypotheses: forward rate unbiasedness, rational expectations, risk neutrality and...