Originally published as Managerial Finance
Volume 32 Number 1, 2006
ISBN: 1 84544 892 8
Guest edited by: Jean Heck.
This collection of articles takes an in-depth look at strategies and issues surrounding investments and portfolio management, and included items such as currency impact on international investment, financial disclosure, enhancing stock returns and dividends.
Contents:
Analysis of currency impact on international investment
This paper aims to examine the currency impact on return, risk and market correlations from the perspective of both dollar and non-dollar-based investments.
The effects of mean reversion on alternative investment strategies
The purpose of this study is to investigate the relationship between predictability in return and investment strategy performance. Two measures that characterize investment strategies within a mean-variance framework, an activity measure and a style measure, are developed and the performance of alternative strategies (e.g. contrarian, momentum, etc.) is examined when risky asset returns are mean reverting.
Does quantity reflect quality? Financial disclosure size and future performance
This paper extends two recent Merrill Lynch studies that appear to contradict the extant financial literature's view that increased disclosure reduces the informational asymmetry problem. While the results confirm the findings of these studies, they suggest that the performance explanation may not lie in the size of the 10-K itself.
Enhancing stock returns using hedged dividend capture
This paper aims to explore the potential use of a dividend capture strategy by individual investors. This strategy arises from the 2003 tax law changes which lowered tax rates on dividends received, while leaving the short-term tax rates on capital losses unchanged. In addition, leverage can be used in combination with an aggressive call-writing strategy to receive a multiple of the tax-advantaged dividend yield without a corresponding increase in risk.
The perception of dividends by professional investors
This article studies the perception of dividends by the professional investor, for whom mutual fund managers are a proxy. The main line of research in dividends is based on using market data that are fit, ex post, to a cherished hypothesis. It is believed, however, that such data cannot measure motivation which is the underlying force behind generating market data.
About Managerial Finance
Managerial Finance provides an international forum for the publication of high quality research in finance, financial management, international finance, economics, banking, financial markets, financial institutions, financial strategy, accounting and management information. For over 30 years the journal has published high quality, relevant articles for researchers and practitioners across the globe.
Visit the Managerial Finance homepage
