Momentum profits and macroeconomic factors

This article tests whether macroeconomic variables and market sentiment influence the size of momentum profits. It finds that although returns to the winner and loser portfolios are influenced by a range of macroeconomic and market wide variables; momentum profits are influenced only by the scale of portfolio outflows. Thus, when investors are sending their capital elsewhere, reduced funds at home, dampen the profitability of the momentum trading strategy. It also finds that when the market closes, below its opening level in the previous six months, momentum profits are higher, which might be a reflection of mean reversion in the market. © 2004 Taylor and Francis Ltd.

Financial liberalization and dynamics of firm-level financing and investment decisions in the Southeast Asian countries

This thesis examines the dynamics of firm-level financing and investment decisions for six Southeast Asian countries. The study provides empirical evidence on the impacts of changes in the firm-level financing decisions during the period of financial liberalization by considering the debt and equity financing decisions of a set of non-financial firms. The empirical results show that firms in Indonesia, Pakistan, and South Korea have relatively faster speed of adjustment than other Southeast Asian countries to attain optimal debt and equity ratios in response to banking sector and stock market liberalization. In addition, contrary to widely held belief that firms adjust their financial ratios to industry levels, the results indicate that industry factors do not significantly impact on the speed of capital structure adjustments. This study also shows that non-linear estimation methods are more appropriate than linear estimation methods for capturing changes in capital structure. The empirical results also show that international stock market integration of these countries has significantly reduced the equity risk premium as well as the firm-level cost of equity capital. Thus stock market liberalization is associated with a decrease in the cost of equity capital of the firms. Developments in the securities markets infrastructure have also reduced the cost of equity capital. However, with increased integration there is the possibility of capital outflows from the emerging markets, which might reverse the pattern of decrease in cost of capital in these markets.

Safety criteria for the private spaceflight industry

The Federal Aviation Administration (FAA) Office of Commercial Space Transportation (AST) has set specific rules and generic guidelines to cover experimental and operational flights by industry forerunners such as Virgin Galactic and XCOR. One such guideline Advisory Circular (AC) 437.55-1[1] contains exemplar hazard analyses for spacecraft designers and operators to follow under an experimental permit. The FAA's rules and guidelines have also been ratified in a report to the United States Congress, Analysis of Human Space Flight Safety[2] which cites that the industry is too immature and has 'insufficient data' to be proscriptive and that 'defining a minimum set of criteria for human spaceflight service providers is potentially problematic' in order not to 'stifle the emerging industry'. The authors of this paper acknowledge the immaturity of the industry and discuss the problematic issues that Design Organisations and Operators now face.