Assessing Earnings Management in European Publicly Traded Firms

We investigate if investors may benefit from using the accruals quality measure to assess the level of earnings management exercised by firms when preparing their accounting statements. More earnings management is expected to be associated with high information asymmetry among stock market participants because it makes earnings information less precise, thus providing an information advantage to informed investors relative to liquidity traders. Our results based on a sample of European publicly traded firms are consistent with a positive association between earnings management and information asymmetry. However, given some previous studies suggesting that accruals based measures may be noisy indicators of earnings management we further develop and test a method to enhance the performance of accruals quality in detecting earnings management

Tapes, Transgression and Mundanity: the participatory engenderment of death metal and grindcore

Since its origins in the early 1980s, the popular rise of extreme metal throughout the globe has been phenomenal. The emergence of extreme metal's most sonically transgressive subgenres of death metal and grindcore between the mid 1980s and the early 1990s, however, was not an easy one. Indeed, during this period, the only way for globally dispersed extreme metal fans and unsigned extreme metal bands to stay musically connected was via the underground practice of tape-trading. The aim of this study is to illuminate the impact of tape-trading upon the global spread of extreme metal. The study will situate the historical context of extreme metal tape-trading by exploring how it emerged, and why it was necessary in the first place. Utilising the concept of 'extreme metal scene', the study will focus on the central scenic discourse of transgression and explore how this was negotiated into the mundane scenic practice of tape-trading. In relation to this, and utilising the concept of participatory culture, the study will further explore how the music arose and spread throughout the globe via the socially networked practice of both musician and non-musician tape-traders in relation to the tape cassette technology itself. Ethnographic interviews were undertaken with both types of traders in order to gain a deeper understanding of the phenomenon in question. The research concludes that the tape-traders were able to challenge the status quo of record company gatekeepers, by facilitating the engenderment and global distribution (including the later commercial distribution) of death metal and grindcore. Such powerfully affective music via its continual global spread, offers as it did for the original tape-traders, a pleasurable and empowering communal/personal space for disempowered people throughout the globe. Further research into extreme metal tape-trading would require deeper exploration into other extreme metal subgenres, especially black metal, tape-traders situated outside of North America and Europe, women tape-traders as well as exploration of the phenomenon after the early 1990s.

Testing the random walk hypothesis with variance ratio statistics

Mestrado em Finanças

Three essays on liquidity

Doutoramento em Gestão.

Is financial instability male-driven? Gender and cognitive skills in experimental asset markets

The hypothesis that price stability would reliably increase with the fraction of women operating in financial markets has been frequently suggested in policy discussions. To test this hypothesis we conducted 10 male-only, 10 female-only and 10 mixed-gender experimental asset markets, and compared the effects of gender composition, confidence, risk attitude and cognitive skills. Male and female markets have comparable volatility and deviations from fundamentals, whereas mixed-gender markets are substantially more stable. On the other hand, higher average cognitive skills of the group are associated with reduced market volatility. Individual-level analysis shows that subjects with higher cognitive skills trade at prices closer to fundamental values and earn significantly higher profits; similarly, mixed markets exhibit lower mispricing, particularly for traders with lower cognitive skills. Our results are demonstrated to hold in other experimental asset market studies, suggesting that a mixed-gender composition reduces mispricing across different types of asset markets.

Three Essays on Market Depth in Futures Markets

Liquidity is an important market characteristic for participants in every financial market. One of the three components of liquidity is market depth. Prior literature lacks a comprehensive analysis of depth in U.S. futures markets due to past limitations on the availability of data. However, recent innovations in data collection and dissemination provide new opportunities to investigate the depth dimension of liquidity. In this dissertation, the Chicago Mercantile Exchange (CME) Group proprietary database on depth is employed to study the dynamics of depth in the U.S. futures markets. This database allows for the analysis of depth along the entire limit order book rather than just at the first level. The first essay examines the characteristics of depth within the context of the five-deep limit order book. Results show that a large amount of depth is present in the book beyond the best level. Furthermore, the findings show that the characteristics of five-deep depth between day and night trading vary and that depth is unequal across levels within the limit order book. The second essay examines the link between the five-deep market depth and the bid-ask spread. The results suggest an inverse relation between the spread and the depth after adjusting for control factors. The third essay explores transitory volatility in relation to depth in the limit order book. Evidence supports the relation between an increase in volatility and a subsequent decrease in market depth. Overall, the results of this dissertation are consistent with limit order traders actively managing depth along the limit order book in electronic U.S. futures markets.

La sabiduría árabe antigua reflejada en los proverbios de Al-Maydani: traducción y análisis paremiológico de un corpus seleccionado

Little is known about Ancient Arabia before the arrival of Islam as it was an area with few inhabited settlements and it was mostly a passageway for traders. In those inhabited settlements we could find some settled Arabs, but the prevailing life style was that of the rest of the population, nomadic Bedouin Arabs who travelled from place to place looking for water and pasture for their cattle, which they lived off. The desert was their natural habitat, a hostile environment full of danger where life was not easy. Camel taming made it possible for them to live that nomadic lifestyle, and the Bedouins became inseparable from their camels and from their horses and cattle. In order to make a living they worked as hunters, transported caravans, and plundered too. In the pre-Islamic era, knowledge was transmitted by oral communication, so very little written information about that time and place remains. One thing that has been handed down are proverbs, which after the 8th Century started to be collected by several writers in various written works. Given the characteristics of those proverbs, which are conserved almost intact from their origins, we can learn much about the lifestyle in Ancient Arabia. What is to be investigated within this thesis is whether through Paremiology it is possible to learn more about this area at this historic moment that precedes the arrival of Islam, and the first years of this religion. To learn about history, we usually rely on historians and palaeontologists, but this work will demonstrate that through Paremiology it is possible to know other aspects of culture, their knowledge, the way of life, thinking, society, etc...

E-handel- Konkurrent eller komplement för mikroföretag? : En studie om lokala mikroföretag

I dagens samhälle har det skett en strukturomvandling på marknaden gällande detaljhandeln.Strukturomvandlingen har inneburit utveckling av bland annat omnikanaler och e-handelvilket har förändrat företagens affärsmodellsval för att kunna överleva på marknaden. Ehandelnhar i många år setts som en konkurrent för mikroföretag, men det börjar även blimöjligt för mikroföretag att införa ett integrerat system som innebär att den fysiska butikensamverkar med e-handeln. Resultatet av de ökade möjligheterna för mikroföretag är att de kanvälja mellan tre olika affärsmodellsval gällande sin marknadsplats och tillgänglighet avföretaget och sedan utifrån omnikanaler kan företagen välja hur de vill nå ut tillkonsumenterna.I denna studie vill vi få en ökad förståelse för hur lokala mikroföretag arbetar med att behållasin marknadsplats i den ökade konkurrensen som blir i och med e-handelns tillväxt. För attkunna undersöka mikroföretagen har vi tillämpat en kvalitativ metod med djupgåendehalvstrukturerade intervjuer. För att få reda på hur lokala handlare uppfattar marknaden,konkurrensen och handelsutvecklingen, intervjuades fem stycken strategiskt valdadetaljhandelsföretag.Av undersökningen framgick det att en gemensam syn kring marknaden föreligger vilketinnebar att oavsett företagens val så har företagen sitt fokus på konsumenten. Det framgickäven att en av de viktigaste framgångsfaktorerna är att tillgodose konsumenten med högservicegrad och på så sätt skapa en relation. Relationer bidrar till återkommande och lojalakonsumenter vilket i sin tur bidrar till lönsamhet för företaget. Samtliga informanter var enigaom att relationer upprättas i den fysiska butiken och har således valt att fokusera på denenskilda butiken i internets ständiga utveckling. För att attrahera konsumenter till butiken harde valt att tillhandahålla ett unikt sortiment. Sammanfattningsvis har internet och handelnsutveckling och den konkurrens det medför på lokala handlarna blivit tvungna ta ställning tilldet och anpassa en affärsmodell utefter sin egen verksamhet.