Originally published as Managerial Finance Volume 34 Issue 1 2008
ISBN: 978 1 84663 774 2
Guest edited by: Ajay Samant
This special issue of Managerial Finance discusses the globalization of financial securities and aims to be of use to global investors as input in the evaluation of international investing opportunities.
- Guest Editorial Ajay Samant
- "Risk-Adjusted Performance of International Mutual Funds" – Onur Arugaslan et al
- "Why do Firms Issue Global Bonds?" – Oranee Tawatnuntachai and Devrim Yaman
- "Privatisation in New Zealand and Australia: An Empirical Analysis" – Jarrod Kerr et al
- "Price and Trading Volume Reactions to Index Constitution Changes: The Australian Evidence" – John Pinfold and Mei Qiu
Contents:
The first article evaluates the risk-adjusted performance of US-based international equity mutual funds using objective measures grounded in modern portfolio theory. This article utilizes a relatively new performance measure (developed by Modigliani and Modigliani in 1997) to report the risk-adjusted returns on these funds. It is evident from the results that some funds with high average returns look less attractive when the risk of the fund is factored into the analysis. Conversely, financial leverage can be used to raise the returns on international mutual funds with low risk.
The second article examines the motivation for issuing global bonds. The relationship between the issue of global bonds and corporate reputation, firm size, issue size, and interest rate environment, is examined. The stock market reaction to issue of domestic bonds and global bonds is compared. This study provides
information on both the issuance costs and signaling implications of global bonds.
The third article evaluates the impact of New Zealand and Australian privatization
programmes on the growth and efficiency of their stock markets. In both countries, privatization resulted in significant growth in market capitalization, and, in the case of New Zealand, significant improvement in stock market liquidity. The article reports the comparison of the performance of the portfolio of privatized companies with a market portfolio, in each country. The issue of possible under-pricing of privatized company IPOs is also examined.
Finally, the fourth article studies the impact on price and trading volume, of changes in the composition of Australian stock market indexes. The index effect has
been well-documented in USA markets, and the authors examine whether a similar
reaction is evident in Australian markets. This study has clear implications for
investors looking at the possibility of market speculation based on index inclusion (or
exclusion) in Australia.
About Managerial Finance
Managerial Finance aims to provide 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. The journal aims to answer the questions that are central to the operations of today’s industries and their financial management.
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