The Missing Assets: An Introduction
Article discusses problems associated with accounting for and valuing intangible assets (see related articles by Baruch Lev). Offers some refresher info for those who have forgotten (or yet to take) their accounting course(s).
Content: Article | Author: Phil Weiss | Source: Motley Fool | Subjects: Accounting, Finance | Industry: Investing
Risk and Return: Some New Evidence
The return on the market portfolio plays a central role in the capital asset pricing model (CAPM), the financial theory widely used by both academics and practitioners. However, the intertemporal properties of the stock market return are not yet fully understood. In particular, ther is an ongoing debate in the literature about the relationship between market risk and return and the extent to … [ Read more ]
Content: Article | Authors: Hui Guo, Robert Whitelaw | Source: Federal Reserve Bank of St. Louis | Subjects: Finance, Market/Investment | Industry: Investing
Return of the LBO
“It may not be the glory years, but buyout shops are back, raising billions–and heading into uncharted waters.” An interesting look at the LBO world and the changes it is seeing. Discusses the idea of PIPE (private investments in public equities) and raises the question of whether LBO managers are out of their depth in the New Economy.
Content: Article | Author: Debra Sparks | Source: BusinessWeek | Subject: Finance | Industry: Investing
Stock Prices and Fundamentals in a Production Economy
This paper by the Federal Reserve Board compares the predictions for the market value of firms from the Gordon growth model with those from a dynamic general equilibrium model of production. Special attention is focused on the prediction for movements in the market value of firms in response to a decline in the required return or an increase in the growth rate of the … [ Read more ]
Content: Article | Author: Michael T. Kiley | Source: Federal Reserve Board (FRB) | Subjects: Economics, Market/Investment | Industry: Investing
Herd Behavior in Financial Markets – A Review
This 33-page .pdf IMF paper provides an overview of recent theoretical and empirical research on herd behavior in financial markets. It addresses the following questions: What precisely do we mean by herding? What could be the causes of herd behavior? What successes hav existing studies had in identifying such behavior? And what effect does herding have on financial markets?
Content: Article | Authors: Sunil Sharma, Sushil Bikhchandani | Source: IMF | Subjects: Finance, Market/Investment | Industry: Investing