The Experts below are selected from a list of 45831 Experts worldwide ranked by ideXlab platform
I-chun Tsai - One of the best experts on this subject based on the ideXlab platform.
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Wealth Effect and investor sentiment
The North American Journal of Economics and Finance, 2016Co-Authors: I-chun TsaiAbstract:Abstract This paper investigated the relationship between the U.S. stock and housing markets as well as their influence on the Wealth Effect of consumption and found that the stock market sentiment index can explain changes in the Wealth Effect. The empirical results indicate that these two markets exert a Wealth Effect on consumption. The estimation results of the Markov-switching model indicate two states: a state in which the stock market influences its coexistence with the housing market and a state in which the housing and stock markets are unrelated. Public optimism regarding stock market investments affects the probability of transitioning between these states.
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the asymmetric Wealth Effect in the us housing and stock markets evidence from the threshold cointegration model
Social Science Research Network, 2012Co-Authors: I-chun Tsai, Chengfeng Lee, Mingchu ChiangAbstract:Previous studies commonly use a linear framework to investigate the long-run equilibrium relationship between the housing and stock markets. The linear approaches may not be appropriate if adjustments from disequilibrium are asymmetric in both markets. Nonlinear adjustments are likely to be observed since the two markets respond rather differently to negative shocks where the stock market is more volatile but price rigidity is found in the housing market. In this paper, we firstly propose two hypotheses on the long-run equilibrium relationship of the US housing and stock markets, and then employ the threshold cointegration model to investigate the potential asymmetric relationships between the two markets. Our empirical results reveal that cointegration exists among the markets, but adjustments toward its long-run equilibrium are asymmetric. Further evidence points out that a rapid mean reversion occurs in one regime where the stock price outperforms the housing price, and no significant reversion is found in the other regime, supporting the hypothesis of the existence of an asymmetric Wealth Effect among the two markets in the U.S. Furthermore, evidence from the asymmetric vector error correction model shows that significant error corrections toward the equilibrium exist in the short run only when the stock price exceeds the real estate price by the estimated threshold level, reassuring the finding of the asymmetric Wealth Effect.
Zhang Jid - One of the best experts on this subject based on the ideXlab platform.
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Research on Short-term Wealth Effect of M&A Announcement Based on Investors' Limited Attention
Journal of Beijing Technology and Business University, 2015Co-Authors: Zhang JidAbstract:Based on the perspective of investors' limited attention,an empirical study is made onthe short-term Wealth Effect caused by MA announcement. The research result shows that acquiring company has the short-term Wealth Effect due to the degree of different investors' limited attention before or after the announcement. The More closeto announcement day,the more significant the short-term Wealth Effect. At the same time,the investors' own distraction degree is characteristic of weekly distribution,which will cause the weekly change in combiner's short-term Wealth Effect,the management of the listed companies will also choose the time to release the MA announcement accordingly,which will lead a more obviousWealth Effect of weekly change.However,the limitation of investors' attention to the characteristics of the listed companies leads to market overreaction to MA announcement,which increases the short-term Wealth Effect. Therefore,the regulatory authority shall establish and improve the major information disclosure mechanism,strengthen the investors' education work and value-investment guidance. The listed companies shall establish some Effective internal control system to enhance the information transparency,authenticity and timeliness.
Arman Mansoorian - One of the best experts on this subject based on the ideXlab platform.
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Income Effect, Wealth Effect, and the Terms of Trade with Finite Horizons
The Canadian Journal of Economics, 1992Co-Authors: Arman MansoorianAbstract:The two-sector model is incorporated into Blanchard's OLG framework. The total Effect of a terms-of-trade deterioration on aggregate savings is decomposed into an income Effect and a Wealth Effect. The income Effect comes about because a terms-of-trade deterioration changes the value of the GDP. Its sign depends on the value of the rate of time preference relative to the interest rate. The Wealth Effect comes about because financial Wealth is insurable and so income from capital is discounted at a lower rate than labor income. Its sign depends on the relative factor intensities of the goods.
Haisheng Chen - One of the best experts on this subject based on the ideXlab platform.
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FSKD (2) - The Long-term Wealth Effect in Technology Merger and Acquisition
2009 Sixth International Conference on Fuzzy Systems and Knowledge Discovery, 2009Co-Authors: Haisheng ChenAbstract:Based on the empirical study about long-term Wealth Effect in technology Merger and Acquisition (abbreviated as M&A below), this paper showed that such kind of M&A can cause negative Wealth Effect significantly in long term, which reflected its high risk. And by analyzing the factors which impact the Buy and Hold Abnormal Return (abbreviated as BHAR below) in the following three years after technology M&A occurred, we found that the higher equity multiplier was, the greater long-term negative Wealth Effect would be, and technology M&A in main business area and associated transactions could bring a positive impact on the long-term Wealth Effect.
Hsing-yu Lin - One of the best experts on this subject based on the ideXlab platform.
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THE LONG-TERM Wealth Effect OF SHARE REPURCHASES EVIDENCE FROM TAIWAN
The International Journal of Business and Finance Research, 2011Co-Authors: Tai-yuan Chen, Lie-jane Kao, Hsing-yu LinAbstract:This paper examines the long-term Wealth Effect of 948 share repurchase announcements in the Taiwan market. We also investigate what factors determine the Wealth Effect of share repurchases. Our findings show that share repurchases induce positive buy-and-hold abnormal returns during the 12-month post-announcement period. Undervaluation and unexpected operating profits are the two important factors explaining the Wealth Effect regardless of firms’ investment opportunities. In addition, for firms with poor investment opportunities, estimated repurchase ratio also explains the Wealth Effect for the two-month period after repurchase announcements but not for the long-term. By contrast, this study does not find the explanatory power of the changes in free cash flow on either the short- or the long-term Wealth. The overall evidence supports the undervaluation and the signaling hypotheses, rather than the free cash flow hypothesis.
