An analysis of sectoral equity and CDS spreads

In this paper, we find that CDS return shocks are important in explaining the forecast error variance of sectoral equity returns for the USA. The CDS return shocks have different effects on equity returns and return volatility in the pre-crisis and crisis periods. It is the post-Lehman crisis period in which the effects of CDS return shocks are the most dominant. Finally, we construct a spillover index and find that it is time-varying and explains a larger share of total forecast error variance of sectoral equity and CDS returns for some sectors than for others.

Franchisee-based brand equity: The role of brand relationship quality and brand citizenship behavior

Despite the evidence that brand management is core to the success of franchising businesses, limited empirical work has focused on branding in such business-to-business (B2B) exchanges. Integrating social exchange theory and the identity-based brand management framework, this study proposes that brand relationship quality is crucial in promoting franchisee brand citizenship behavior that can enhance brand equity attributable to franchisees, thereby advancing a model of '. franchisee-based brand equity' (FBBE). Survey results from 352 franchisees in franchised B2B exchanges suggest that brand relationship quality promotes brand citizenship behavior, thereby enhancing FBBE. Additionally, moderated mediation analysis indicates that the indirect effect of brand relationship quality on FBBE via brand citizenship behavior is stronger when franchisor competence is high. However, franchisor-franchisee relationship duration has no moderating effects on these relationships. The findings of this study have implications for franchising practitioners that are interested in understanding the role of brand relationship management in promoting franchisee brand citizenship behavior and FBBE.

Equity market price interactions between China and the other markets within the Chinese states equity markets

This study examines the cointegrating and long-term causal relationships of equity market prices in equity markets of Chinese states namely, Shanghai, Shenzhen, Hong Kong, Taiwan and Singapore. I cover the period between October 5, 1992 and March 20, 2006, taking into account both the Asian financial crisis and the opening-up of China’s equity markets in recent years. First, I analysis the cointegration by utilizing Johansen’s (1988) cointegration tests. I find that a long-term equilibrium relationship measured by cointegration has been established among Shanghai, Shenzhen, Hong Kong and Taiwanese markets and, to a lesser degree, between these markets and the Singapore market since 1998. Secondly, this study examines causality by exploring the bootstrapped Toda-Yamamoto non-causality tests. I find that there is strong evidence of a bi-directional causality between Shanghai and Shenzhen markets after 1998. Furthermore, I also find that there are more causal linkages between the Chinese states equity markets: two mainland Chinese markets, Hong Kong, Taiwan, and Singapore became more dependent on each other. The robustness of the above findings is confirmed by the use of a bootstrap test employed to test the validity of my results.

Intraday volatility interaction between the crude oil and equity markets

This paper investigates the price volatility interaction between the crude oil and equity markets in the US using 5-min data over the period 2009-2012. Our main findings can be summarised as follows. First, we find strong evidence to demonstrate that the integration of the bid-ask spread and trading volume factors leads to a better performance in predicting price volatility. Second, trading information, such as bid-ask spread, trading volume, and the price volatility from cross-markets, improves the price volatility predictability for both in-sample and out-of-sample analyses. Third, the trading strategy based on the predictive regression model that includes trading information from both markets provides significant utility gains to mean-variance investors.

The burden of severe obesity and the efficiency and equity of treatment

 Severe obesity rates have doubled during the last twenty years, particularly in disadvantaged Australians. Paradoxically, disadvantaged Australians are the least likely group to receive treatment using bariatric surgery. Health care costs for individuals with severe obesity are double the population average. These costs are decreased after bariatric surgery, particularly in individuals with diabetes.

Are firms with negative book equity in financial distress?

© 2015 World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research. This study examines whether negative book equity (BE) firms are in financial distress by analyzing their operating performance, financial characteristics, distress risk, and survivability when they first report negative BE. Firms with small magnitude of negative BE (SNBE firms) suffer from persistent negative earnings and financial distress, while firms with large magnitude of negative BE (LNBE firms) experience a temporary non-distress related earnings shock. LNBE firms report consecutive years of negative BE, but have lower distress risk and failure rate than both SNBE and control firms. However, all negative BE stocks have abysmal returns subsequent to their first report of negative BE.

The role of leverage in cross-border mergers and acquisitions

We examine the relationship between leverage and cross-border mergers and acquisitions. Using a sample of 85,560 cross-border mergers and acquisitions in 57 countries over the period 1990 to 2010, we find that firms with higher leverage are less likely to acquire foreign targets, whereas firms with lower leverage tend to be targets acquired by foreign firms. These effects are more pronounced in Asian countries than North America. Acquisition premium, the likelihood of all-cash offer and the percentage of cash in the acquisition offer decrease with leverage in cross-border mergers and acquisitions. Foreign targets gain positive abnormal returns in the both short run and long run, while acquirers earn positive abnormal returns in the short-run, but negative returns in the long run. We also find that firms adjust their capital structure after the acquisition by issuing more equity if they were overleveraged, or issuing more debt if they were underleveraged before the acquisition. Our results provide international evidence on how leverage affects managerial decision to acquire foreign targets, payment method and acquisition premium in cross-border mergers and acquisitions. This study shows that the interdependent relationship between investment decision and financing decision exists worldwide.

Sharing the load: role equity in the incubation of a monomorphic shorebird, the masked lapwing (Vanellus miles)

Sex roles during incubation vary dramatically in socially monogamous shorebirds. The "incubator conspicuousness" hypothesis posits that, for biparentally incubating and sexually dimorphic birds, the more conspicuous sex should incubate when visually foraging predators are inactive, and in many ecosystems this is at night. Therefore, sexually monomorphic species should share incubation equitably throughout the day and night. We examined incubation patterns in Masked Lapwings Vanellus miles and found that the contribution of the sexes to incubation was equitable. Another measure of incubation behavior, bout duration, was similar between the sexes; male bout durations were slightly shorter than for females. This finding is consistent with the predictions of the incubator conspicuousness hypothesis, although other processes may also explain equitable care.

Executive equity risk-taking incentives and audit pricing

Using a large sample of U.S. firms spanning the period 2000-2010, we document a strong positive association between the sensitivity of CEO compensation portfolio to stock return volatility (vega) and audit fees. We also show that the positive association between vega and audit fees is weaker in the post-Sarbanes-Oxley Act (SOX) period. In supplementary tests, we show that the relation between vega and audit fees is stronger for firms with older CEOs and in firms where the CEO is also chairman of the board. Collectively, our results suggest that audit firms incorporate executive risktaking incentives in the fees they charge for their services.

Equity and marketisation: emerging policies and practices in Australian education

The conjunction of equity and market logics in contemporary education has created new and different conditions of possibility for equity, both as conceived in policy discourses and as a related set of educational practices. In this editorial introduction, we examine how equity is being drawn into new policy assemblages and how, in the context of marketisation, equity is evolving and being enacted in new ways across education sectors. Different conceptions of equity are considered, including the increasingly influential human capital perspective promoted by the Organisation for Economic Cooperation and Development (OECD). We argue that, separate from critiques of neoliberalism and its deleterious effects on equity in education, it is necessary to analyse carefully the increasing rationalisation of equity agendas in economic terms, the associated effects on education governance and policy-making, as well as on the work of educational institutions and educators. Providing an overview of the contributions to this Special Issue, we direct particular attention to the multiple, complex and often contradictory effects of the current education reform agenda in Australia, which has prioritised equity objectives and intensified performance measurement, comparison and accountability as means to drive educational improvement and reduce disadvantage.

Digital equity: a social justice issue for staff, not just students

It can be forgotten that it is not simply students who face the challenges of digital equity in higher education. Staff can also face digital challenges, and employment at an institution is not necessarily a safety net to protect staff from the digital divide. This paper attempts to give this voice to this issue. The digital equity challenges that they may face can range from internet accessibility, diversity in skills, or access to the required equipment and software, including necessary upgrades. This process is, however, is compounded when staff are geographically dispersed from the institution, disconnected by time, or where access to technology and Internet connectivity varies greatly between the institution’s sites. Much of these issues can be beyond the control and capacity of staff to alter. However, in terms of a staff-led approach to address such issues and empower others, a robust professional development program on digital technology is but one means to help stem the digital divide between staff ‘haves’ and ‘have nots’.

Equity, social justice and ethics in mathematics education

The performativity policy mindset driving national and international testing highlights issues of equity in access and success according to socio-economic status, geographic location, ethnicity, gender and combinations of these factors. Researchers seek explanations for these inequities in terms encompassing engagement, participation and achievement to identify socially just and ethical practices at system, school and classroom level. The emergence of a theoretical perspective involving redistribution, recognition and participation (Fraser, 2013) is evident in a range of studies concerning leadership, professional learning, pre-service teacher education, and pedagogies that focus on equity and social justice in mathematics education. The challenge of ethical and socially just practices at all levels and social groups is in providing access to deep learning in mathematics and success in “knowledge making” (Jorgensen, 2014).

A risk worth taking: perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price

This research investigates the moderating role of perceived risk in the relationship between satisfaction, loyalty, and willingness to pay premium price (WTP). A total of 364 respondents were recruited from Amazon's Mechanical Turk panel. Financial, social, performance, and psychological risks have significant negative effects on the relationship between satisfaction and WTP, whereas only financial risks have significant negative effects on the relationship between loyalty and WTP. Using moderated mediation analysis, we found that the mediating effects of loyalty diminish significantly in high social risk conditions and diminish completely in high financial risk conditions.