Steve Fan, Linda Yu, Deborah Beyer and Scott Beyer
This paper jointly examines how firm size and idiosyncratic risk impact momentum returns.
Abstract
Purpose
This paper jointly examines how firm size and idiosyncratic risk impact momentum returns.
Design/methodology/approach
Using regression analysis, the authors investigate how firm size and idiosyncratic risk impact price momentum. The authors review firm price data in 25 country markets in the Thomson Financial Datastream database from 1979 to 2009.
Findings
This study’s findings suggest price momentum is more significant among stocks with smaller size and higher idiosyncratic risk. The authors find that winner and loser portfolios have significantly smaller size and higher idiosyncratic risk than portfolios in the middle quintiles.
Research limitations/implications
This study’s results are consistent with the notion that firm size matters in price momentum and mispricing is greatest for small firms because of the greater risk potential to arbitrageurs. In addition, this finding that firms with higher idiosyncratic risk have greater price momentum supports the idea that investors underreact to firm-specific information.
Practical implications
This work finds evidence that investors underreact to firm-specific information. As such, these findings are of particular interest for investors looking to exploit opportunities for abnormal returns through price momentum trading.
Originality/value
This paper jointly examines the effects of firm size and idiosyncratic risk on momentum returns. This investigation considers these effects in the global markets. This work adds to the research base by illustrating that both winner and loser portfolios have significantly smaller size and higher idiosyncratic risk than portfolios in the middle quintiles. Also unique to this study, the authors capture the time-variation of expected IdioRisk and the asymmetric effects of volatility by using an exponential general autoregressive conditional heteroskedastic (EGARCH) model to calculate conditional idiosyncratic risk.
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This paper is designed to seek out the everyday narratives of copyright. To find these narratives, I analyze the comments section of websites where users can post their reactions…
Abstract
This paper is designed to seek out the everyday narratives of copyright. To find these narratives, I analyze the comments section of websites where users can post their reactions to copyright-related stories. I argue that understanding how people who are not legal scholars frame the use of copyright as they discuss sharing, owning, and controlling the copy is a good place to begin to develop a sense for the everyday life of copyright law.
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Cheng Lu Wang, Juhi Gahlot Sarkar and Abhigyan Sarkar
The purpose of this study is to capture the strength of consumer’s perceived brand sacredness. The authors developed and validated a measurement scale composed of three related…
Abstract
Purpose
The purpose of this study is to capture the strength of consumer’s perceived brand sacredness. The authors developed and validated a measurement scale composed of three related dimensions: supremacy, mesmerization and communitas.
Design/methodology/approach
Six empirical studies were conducted to identify the brand sacredness construct domains, develop and validate the measurement and test the nomological network between brand sacredness and it antecedent and outcome variables.
Findings
Results from a series of studies provided robust supports for the scale structure and demarcated the construct domains from other consumer–brand relationship measures. Testing of nomological validity of the scale further showed that brand sacredness is influenced by brand love, emotional brand attachment and brand loyalty and, meanwhile, provides explanatory power to predict theoretically related outcome variables, including transcendent consumer experience, defense of brand, incorporation brand in extended-self, brand ritualism and brand evangelism.
Research limitations/implications
This study is based on cross-sectional survey data obtained from respondents belonging to well-established brand communities. A longitudinal study involving recent and emerging brand communities could provide an enhanced understanding of the evolution of brand sacredness with time, including brand sacralizaton process as well as possible de-sacralization process.
Practical implications
The study provides significant insights for brand managers to create an enduring brand and ascertain that consumers find their affiliations with the brand and make it the sacred core of their lives by fandom management through brand evangelism.
Originality/value
This study adds to the theory on consumer–brand relationship realm by delineating the domains of brand sacredness with its defining feature of extraordinary experience transcending an ordinary brand. It contributes to the existing body of branding and customer-based brand equity literature by incorporating the spiritual aspects of faith, passion and devotion into measuring the value of a brand.
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Sara E. Green and Shawn C. Bingham
In this chapter, we examine narratives of inclusion and exclusion told by professional performers with lifelong impairments who are successfully leading “inclusive” lives in order…
Abstract
In this chapter, we examine narratives of inclusion and exclusion told by professional performers with lifelong impairments who are successfully leading “inclusive” lives in order to bring their voices and experiences to the attention of academics, educators, policy makers, and service providers. We draw on stories told during in-depth interviews with 10 disabled comedians conducted as part of a larger project on the complex seemingly paradoxical relationship between disability and humor. We take an interpretive approach to our data collection and analysis consistent with principles of the emancipatory tradition in disability studies. These performers clearly value the inclusive childhoods their families provided. As children, they were educated in inclusive settings and participated in a wide variety of activities – often centering on the performing arts. Their rich and varied experiences (even the negative ones) have provided both fuel for performance and confidence to push back against attempts by others to exclude them from social and professional life in the everyday world. Their inclusive childhoods, however, are not entirely without a downside. In many cases, they did not develop a sense of disability pride, or even a disability identity, until they had opportunities to interact with others who have impairments during the transition to adulthood. For children raised in more inclusive settings, a conscious effort to provide opportunities to engage with other children and adults with impairments may be an important adjunct to inclusion.
Donna L. Van Raaphorst provides a detailed statistical analysis of a large sample of Alcatraz Prison inmates using the Social Science Statistical Package. The data, drawn directly…
Abstract
Donna L. Van Raaphorst provides a detailed statistical analysis of a large sample of Alcatraz Prison inmates using the Social Science Statistical Package. The data, drawn directly from the inmate files, is compared whenever possible with similar data provided by the Bureau of Prisons in order to determine if Alcatraz, often regarded as America's Devil's Island, really incarcerated the so-called “Worst of the Worst” in its time. The results would seem to indicate that Alcatraz inmates were, in fact, not remarkably different from those in any other Federal prison in the system.
Kriengkrai Boonlert-U-Thai and Pradyot K. Sen
The purpose of this paper is to provide evidence that the quality of earnings of family run firms is superior to that of the other firms and that firms run by founding family…
Abstract
Purpose
The purpose of this paper is to provide evidence that the quality of earnings of family run firms is superior to that of the other firms and that firms run by founding family members exhibit this trait even more prominently. Using insights from the fundamental accounting valuation model, this study also hypothesizes that financial markets place a higher weightage on earnings than book value for founding family-run firms in Thailand as these firms report a more reliable earnings number.
Design/methodology/approach
This is an empirical archival research.
Findings
The authors report evidence that financial markets place a higher weightage on earnings than book value for founding family-run firms. The evidence is consistent with the insight that current earnings of the founding family-run firms offer more information about future earnings and cash flow compared to book value than those for family (FAM) and non-family (NonCS) firms. The authors also provide evidence that earnings persistence and the accrual quality of the founding family firms are higher compared to the other firms. This evidence is contrary to the notion that family firms have more opaque disclosures, lower earnings quality and higher implied cost of equity capital.
Research limitations/implications
The authors find support for the alignment hypothesis of the long-term family ownership of Thai firms. The authors consider these evidences consistent with the shareholder interest alignment hypothesis of the controlling shareholders as opposed to the entrenchment hypothesis.
Practical implications
The study implies that earnings of the Thai firms run by founding family members are more reliable and can be relied on more for firm valuation. Additionally, the authors also offer a different methodology by appealing to the valuation properties of the reported accounting numbers besides looking at the quality of accruals and earnings persistence tests offered in the existing literature.
Social implications
The society is better off if there are more opportunities to invest in Thai firms run by founding family members. The finding of the quality difference in governance by firms with founding family members is new. Therefore, the study points to the need of finer partition of the family firms while looking at their corporate governance practices. The fact that the FF firms offer a higher quality of earnings implies that they are less engaged in opportunistic manipulation of earnings and cash flow and, thus, are self-motivated to protect the longer term interest of the firms.
Originality/value
This if the first time the accounting fundamental valuation theory has been used to provide evidence of higher earnings quality.
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James DeLisle and Terry Grissom
Current economic conditions have identified a complication if not conflict in the application of valuation analysis assumptions with the free fall in asset prices observed since…
Abstract
Purpose
Current economic conditions have identified a complication if not conflict in the application of valuation analysis assumptions with the free fall in asset prices observed since 2007. Discrepancies in debt obligations (from prior periods) with underlying collateral value have been opined to be an unforeseen anomaly. This investigation aims to observe an alternative perspective using data from 1900 to the present.
Design/methodology/approach
This 110‐year period of observation shows that return (value) volatility is the characteristic norm of the market system. Showing volatility as a fundamental characteristic of economic and property performance supports conjecture by definition, observation and rationality that valuation analysis had to be successfully employed in prior down cycles and across divergent economic regimes. A systematic literature search was conducted to identify the application of specific value theory, premises and concepts with appropriate valuation techniques in given economic regimes. The variables derived from the literature and practices observed and designated as operating across time emphasizing recorded recessions are then tested for statistically significant associations using χ2 tests.
Findings
The findings show that traditional value techniques are successfully applied in stabilized and even accelerated growth periods, but weaken and even break down during down markets. Alternative approaches and techniques are emphasized and developed during these periods that address specific problems but are befitting more general issues. The alternative perspectives are then observed to operate, generating much debate for extended periods. They are then incorporated as orthodox or disappear as issues. This study identifies a statistical link between the economic and valuation concerns of the Great Depression of the 1930s and the current Great Recession of 2007‐2009. The more relevant finding, however, is that the period following the depression of the 1930s, which shows a period characterized as using innovation and alternative valuation techniques, was continued into a period that ran from the 1950s into the mid‐1990s. This was a period of stabilization, at least into the early 1980s. The deregulation of the 1980s generated a period of fewer cycles but major magnitude shifts in the less frequent measures of volatility. Unfortunately, the sophistication in debate concerning valuation procedure and valuation premises, as statistically measured, declined from the 1990s into the present period. The present economy reflects statistical measures similar to those observed from 1900‐1930.
Originality/value
Given the 110 years considered in the study, the findings should not be considered original with regard to assisting the general welfare or professional decision making. However, given that the market shifted from being a useful institution to assist in the allocation and distribution of property to being a religious caveat that could only result in perfect solutions to solve all social needs, wants and ills, the findings emphasizing valuation techniques based on rational value premises that can operate to assist inference of future events subject to divergent and cyclical operations might be calmed to offer very useful assistance with procedure based on fundamentals and expression of behaviour that has long been vilified. The uses of the patterns identified in this study need to be incorporated into causal analysis.
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Richard Honack and Sachin Waikar
By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee…
Abstract
By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee retailer's yearly growth had declined by half, quarterly earnings had dropped as much as 97 percent, same-store sales were negative, and its stock price was languishing. Factors such as a global economic downturn and increasing competition in the specialty coffee market from large players such as McDonald's and Dunkin' Donuts had driven this decline, resulting in the closings of hundreds of domestic stores already, with many more planned. Founder Howard Schultz, who had recently returned as CEO, and his executive team were convinced that Starbucks's growth opportunities lay overseas, where the firm already had a strong foothold in markets like Japan and the United Kingdom and was preparing to open hundreds of new stores in a variety of locations. But recent international challenges, including the closing of most Australian stores due to sluggish sales, made clear that Starbucks had more to learn about bringing its value proposition—a combination of premium coffee, superior service, and a “coffeehouse experience”—to foreign soil. The key question was not whether Starbucks could transport its value proposition overseas, but how the value proposition's three elements would play in recently entered and new markets. And the stakes of making the right international moves rose with each U.S. store closure. Schultz and his team also faced a broader question, one that applied to both their U.S. and foreign stores: Could they “grow big and stay small,” remaining a huge retailer that delivered both high-quality products and a consistently intimate and enjoyable experience to consumers worldwide? This case presents this challenge in the context of Starbucks's history, well-established value proposition, and domestic and international growth and vision.
The key objectives of the case focus on the successful growth of local city brand, to a country brand, to a global brand, leaving the questions: 1. How much more can it grow? 2. Can it? 3. What is the impact of new competitors in a given market and/or the impact of the global economy on discretionary spending by a loyal customer base? 4. How important is it to the sustain a brand's core value(s) proposition when innovating for new audiences and customer preferences?
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Sven Theysohn, Oliver Hinz, Steve Nosworthy and Michael Kirchner
Preference analysis was conducted among supporter club members of the German national soccer team. Survey results based on 493 completed questionnaires underline the market…
Abstract
Preference analysis was conducted among supporter club members of the German national soccer team. Survey results based on 493 completed questionnaires underline the market potential of official fan loyalty programmes due to a high average willingness to pay and a general preference for cheap and easy to implement 'right of first refusal' benefits for tickets as the main supporters club feature. Adequately designed supporters clubs may present soccer clubs with a new source of income while creating opportunities to improve stadium atmosphere and security.