The agency problem that arises from the separation of ownership and control (Berle and Means, 1932)has been a major focus of the literature on corporate finance and the theory of the firm over the last twenty years. Various insti- tutional arrangements exist to deal with this agency problem and one that has attracted a lot of attention is the market for corporate control. Manne
Testing for a Fractional Unit Root in Time Series Regression Chingnun Lee, Tzu-Hsiang Liao2 and Fu-Shuen Shie Inst. of Economics, National Sun Yat-sen Univ Kaohsiung, Taiwan Dept. of Finance, National Central Univ, Chung-Li, Taiwan
The vast majority of games of interest in economics, finance, political economy etc. involve some form of payoff uncertainty. A simple but interesting example is provided by auctions: an object is offered for sale, and individuals are required to submit their bids in sealed envelopes. The object is then allocated to the highest bidder at a price which depends on every bid, according to some prespecified rule (e.g. \first-price\ or \second-price\rule). In
The independence of editorial content from advertisers' influence is a cornerstone of journalistic ethics We test whether this independence is observed in practice. We find that mutual fund recommendations are correlated with past advertising in three personal finance publications but not in two national news- papers. Our tests control for numerous fund characteristics, total advertising expenditures
The world economy needs both TO GET a sense of the challenges facing the global economy, fast-forward four years to September 2007 and consider the following three scenarios: he world's top finance ministers arrive in Washington for an emergency summit after the
1 Stationarity and unit Root testing WHy do we need to test for Non-Stationarity? The stationarity or otherwise of a series can strongly influence its behaviour and properties -e.g. persistence of shocks will be infinite for nonstationary series Spurious regressions. If two variables are trending over
