The forward- and the equity-premium puzzles: two symptoms of the same illness?

We build a pricing kernel using only US domestic assets data and check whether it accounts for foreign markets stylized facts that escape consumption based models. By interpreting our stochastic discount factor as the projection of a pricing kernel from a fully specified model in the space of returns, our results indicate that a model that accounts for the behavior of domestic assets goes a long way toward accounting for the behavior of foreign assets. We address predictability issues associated with the forward premium puzzle by: i) using instruments that are known to forecast excess returns in the moments restrictions associated with Euler equations, and; ii) by pricing Lustig and Verdelhan (2007)'s foreign currency portfolios. Our results indicate that the relevant state variables that explain foreign-currency market asset prices are also the driving forces behind U.S. domestic assets behavior.

The forward- and the equity-premium puzzles: two symptoms of the same illness?

Using information on US domestic financial data only, we build a stochastic discount factor—SDF— and check whether it accounts for foreign markets stylized facts that escape consumption based models. By interpreting our SDF as the projection of a pricing kernel from a fully specified model in the space of returns, our results indicate that a model that accounts for the behavior of domestic assets goes a long way toward accounting for the behavior of foreign assets prices. We address predictability issues associated with the forward premium puzzle by: i) using instruments that are known to forecast excess returns in the moments restrictions associated with Euler equations, and; ii) by pricing Lustig and Verdelhan (2007)’s foreign currency portfolios. Our results indicate that the relevant state variables that explain foreign-currency market asset prices are also the driving forces behind U.S. domestic assets behavior.

Do private equity and venture capital backed firms have better corporate governance after going public?

Mercados financeiros e finanças corporativas

The forward- and the equity-premium puzzles: two symptoms of the same illness?

Using information on US domestic financial data only, we build a stochastic discount factor—SDF— and check whether it accounts for foreign markets stylized facts that escape consumption based models. By interpreting our SDF as the projection of a pricing kernel from a fully specified model in the space of returns, our results indicate that a model that accounts for the behavior of domestic assets goes a long way toward accounting for the behavior of foreign assets prices. We address predictability issues associated with the forward premium puzzle by: i) using instruments that are known to forecast excess returns in the moments restrictions associated with Euler equations, and; ii) by comparing this out-of-sample results with the one obtained performing an in-sample exercise, where the return-based SDF captures sources of risk of a representative set of developed and emerging economies government bonds. Our results indicate that the relevant state variables that explain foreign-currency market asset prices are also the driving forces behind U.S. domestic assets behavior.

Determinants of differential pricing of equity classes in the Brazilian equity market

We examine the differential pricing of equity classes between voting and non-voting shares in Brazilian listed companies with particular emphasis on privatized companies, and we discuss the role of majority control, liquidity, and governance issues that may influence these differentials over time. We include a brief discussion on the Brazilian corporate law system, its impact on controlling and minority shareholders, and the characteristics of the Brazilian privatization process, before proceeding to the econometric analysis. We find empirical evidence to support that liquidity is a major component for determining this differential pricing over time. Other variables, such as the ratio of non-voting equity to total equity, type of majority control, and changes in regulation signal the high level of agency costs between majority controllers and minority shareholders in explaining the differential pricing of equity classes.

Um estudo sobre o poder de certificação dos fundos de private equity e venture capital nos IPOs realizados no mercado brasileiro

A melhora na situação econômica do Brasil, observada nos últimos anos, resultou em um aumento expressivo no número de IPOs realizados no mercado brasileiro tornando o mecanismo de desinvestimento através do mercado de capitais em uma boa opção para os fundos de Private Equity/Venture Capital, fato que não era visto no período anterior a 2004. No período de janeiro de 2004 a maio de 2007 foi possível notar um fato inédito para o mercado brasileiro, dos 61 IPOs que ocorreram, 26 foram realizados por firmas que tinham um fundo de Private Equity/Venture Capital como acionista. Devido a assimetria de informação, o preço de emissão é tipicamente inferior ao preço de mercado da ação após o IPO, sendo esse “fenômeno” conhecido na literatura como underpricing. Essa dissertação busca examinar o papel de certificação que um fundo de Private Equity/Venture Capital pode exercer nas emissões de ações no Brasil no período de 2004 a maio de 2007, reduzindo assim a assimetria de informação existente, através de uma análise do underpricing dos IPOs de empresas que tem fundos de Private Equity/Venture Capital como acionistas, e de empresas que não tem. Encontramos evidência que sugere que no mercado brasileiro apenas empresas com um bom grau de governança e transparência tem acesso ao Mercado de capitais através de IPOs, tirando, desta forma, a importância do poder de certificação exercido pelos fundos de Private Equity/Venture Capital em reduzir a assimetria de informação existente.

The influence of macroeconomic factors on primary issues in the Brazilian market

This research analyses the influence of the macroeconomic factors on the primary issue of stocks and debentures in the Brazilian market. Previous studies have agreed on the importance of aspects of the economic situation on a company’s capital structure, but have not established a relationship between the macroeconomic variables and the level of aggregate debt; we can mention Procianoy and Caselani (1997) and Terra (2003) as examples of this. According to Leal (2000), the limitations of the Brazilian capital market suggest that management takes advantage of moments of euphoria in the market - whether caused by a reduction in the rate of interest or by the return being offered by the equity market - to raise funds at rates that are more advantageous to the company. This characterizes the first evidence we have of opportunistic behavior influencing a company’s financing decisions. Eid Jr. (1996) provides us with the first evidence of this opportunistic behavior in his research in which 47% of those interviewed said that they chose fund sources that are economically more advantageous.

Defining student participation and empowerment in higher education

Customer participation has been studied for decades; however, it gained a postmodern perspective around the year 2000. Customers have become co-creators of personalized experiences, moving from the audience to the stage. In the educational context, students must take responsibility for their learning process and participate in the production of the service. This changing is providing opportunities and challenges for higher education institutions (HEIs) to redefine their relationship with stakeholders, especially with students. This study is based on the service dominant logic (SDL) perspective because students are assumed to take the role of co-creators of knowledge in the educational setting. The research uses adapted frameworks and concepts applied in organizational, knowledge-intensive business services (KIBS) and also medical studies to advance the understanding of value co-creation in the HEI context. The current study addresses a lack of research in the higher education context focusing on defining students’ participation and students’ empowerment in higher education context. An empirical investigation was developed with traditional schools in Brazil. This investigation allowed the description of the constructs in the specific context. The description of student participation in HEIs context reflects the relevance of three dimensions – information sharing, personal interaction and responsible behavior. In the Brazilian context, responsible behavior is the weakest dimension in the construct, because the responsibilities are unbalanced between students and professors. The main reasons identified for this unbalanced relation were cultural issues and local regulation. Student empowerment was described as composed by four dimensions – meaningfulness, competence, impact and choice; however, one of them – choice – was identified as the weakest dimension, facing cultural and bureaucratic barriers for implementation in the Brazilian educational context. Moreover, interviewees spontaneously cited the idea of trust in the faculty as an important antecedent of student participation that must be considered when analyzing student participation and empowerment mechanisms. An additional contribution was the proposal of a theory-based framework for understanding the service dominant logic perspective in the HEI context, in which student participation and student empowerment were explored as mechanisms leading to positive student behavior toward institution.

Economic growth with equity: challenges for Latin America

Includes bibliography

Sustainable development: changing production patterns, social equity and the environment

Includes bibliography

Population, social equity and changing production patterns

Includes bibliography

Concept design for a RFID enabled student workbook

In this paper, the concept for a radio frequency identification (RFID) enabled student workbook is discussed and a prototype system developed. The workbook is a question-answer notebook in traditional paper format in which hand written solutions to student assignments are written. An embedded RFID tag in the workbook is then used for the student to store his/her solution to the attempted assignment questions at home. On entry to the classroom and once the questions have been attempted, an RFID reader in the classroom will retrieve the answers from the workbook, automatically collate the results and instantly provide a summary of these results for the individual student and the class as a whole. If problems are highlighted, the teacher can then investigate issues with individual students and review the answers provided in the workbook.

Literacy Research: Issues of Authority, Ownership, and Representation

With the “social turn” of language in the past decade within English studies, ethnographic and teacher research methods increasingly have acquired legitimacy as a means of studying student literacy. And with this legitimacy, graduate students specializing in literacy and composition studies increasingly are being encouraged to use ethnographic and teacher research methods to study student literacy within classrooms. Yet few of the narratives produced from these studies discuss the problems that frequently arise when participant observers enter the classroom. Recently, some researchers have begun to interrogate the extent to which ethnographic and teacher research methods are able to construct and disseminate knowledge in empowering ways (Anderson & Irvine, 1993; Bishop, 1993; Fine, 1994; Fleischer. 1994; McLaren, 1992). While ethnographic and teacher research methods have oftentimes been touted as being more democratic and nonhierarchical than quantitative methods—-which oftentimes erase individuals lived experiences with numbers and statistical formulas—-researchers are just beginning to probe the ways that ethnographic and teacher research models can also be silencing, unreflective, and oppressive. Those who have begun to question the ethics of conducting, writing about, and disseminating knowledge in education have coined the term “critical” research, a rather vague and loose term that proposes a position of reflexivity and self-critique for all research methods, not just ethnography or teacher research. Drawing upon theories of feminist consciousness-raising, liberatory praxis, and community-action research, theories of critical research aim to involve researchers and participants in a highly participatory framework for constructing knowledge, an inquiry that seeks to question, disrupt, or intervene in the conditions under study for some socially transformative end. While critical research methods are always contingent upon the context being studied, in general they are undergirded by principles of non-hierarchical relations, participatory collaboration, problem-posing, dialogic inquiry, and multiple and multi-voiced interpretations. In distinguishing between critical and traditional ethnographic processes, for instance, Peter McLaren says that critical ethnography asks questions such as “[u]nder what conditions and to what ends do we. as educational researchers, enter into relations of cooperation. mutuality, and reciprocity with those who we research?” (p. 78) and “what social effects do you want your evaluations and understandings to have?” (p. 83). In»the same vein, Michelle Fine suggests that critical researchers must move beyond notions of the etic/emic dichotomy of researcher positionality in order to “probe how we are in relation with the contexts we study and with our informants, understanding that we are all multiple in those relations” (p. 72). Researchers in composition and literacy stud¬ies who endorse critical research methods, then, aim to enact some sort of positive transformative change in keeping with the needs and interests of the participants with whom they work.

Precautionary principle, economic and energy systems and social equity

In this paper the precautionary principle is reviewed alongside the process of international implementation. Adoption of the precautionary principle is advocated to deal with energy choices as a mechanism to account for potential climate change impacts, notwithstanding the debate on scientific uncertainty on the links between solar activity, greenhouse gas concentration and climate. However, it is also recognized that the widespread application of the precautionary principle to energy choices does not seem to be taking place in the real world. Relevant concrete barriers are identified stemming from the intrinsic logic governing the hegemonic economic system, driving the energy choices by economic surplus and rent generation potential, the existence of social asymmetries inside and among societies as well as by the absence of democratic global governance mechanisms, capable of dealing with climate change issues. Such perception seems to have been reinforced by the outcome of the United Nations Climate Change Conference, held in Copenhagen in December 2009. (c) 2010 Elsevier Ltd. All rights reserved.

Hands-on experiments in the Practicum: repositioning student teachers' autonomy.

Following a worldwide trend, the Initial Teacher Education (ITE) Programmes in Brazil are recently searching for ways of integrating practice into curriculum. It raises question about what practice must be integrated and how. Notably, university-based courses are disconnected from school and have low commitment with school issues (Zeichner, 2009).The student teacher induction into school daily life is not an easy task, mainly when the practitioners are transforming physics classroom practice toward an active learning. Drawing on cultural-historical framework (Wolff-Michael Roth & Lee, 2007; Vygotsky, 1978) this study addresses the articulation between Practicum in Physics Classes and the Hands-on Experiments (HoE) used throughout the Practicum. Although in a different level, both Practicum and HoE are linked with an idea of practice. Particularly, this study focuses on how HoE might foster student teachers' autonomy and agency in the Practicum. Data was gathered in the course Practice of Physics Teaching at University of São Paulo/Brazil in 2010; in a cohort of 60 student teachers doing a year-long Practicum in urban school in São Paulo city. Data was analysed using qualitative research methods (Roth, 2005), based on 14 interviews and video records of the student teacher preparing the HoE for Practicum we will present in general lines the role of HoE for student teacher autonomy.