Demissew Diro Ejara

Debt Maturity, Credit Risk and Information Asymmetry: The Case of Municipal Bonds

Using a system of equations approach, this paper empirically tests the impact of credit quality, asset maturity, and other issuer and issue characteristics on the maturity of municipal bonds. We find that under conditions of lower information asymmetry that prevails in the municipal sector, higher-rated bonds have longer maturities than low-rated bonds. This result differs from that observed in the corporate sector. Overall, our results support the asset maturity hypothesis. In addition, our analysis finds that fundamentals matter. Issue features that provide additional protection or convenience to the investor tend to increase debt maturity.

Value innovation management and discounted cash flow

Purpose – The purpose of this paper is to export the idea of “Core Competency Based Valuation”. Wireless network operations services companies have exploded in importance and face unprecedented challenges in valuing them. This article considers how one firms managers are enhancing their value through better performance and decision making to input long‐term value, along with the industry growth and highly favorable customer response to their quality products and services.Design/methodology/approach – This fairly extensive, yet focused paper, was based on accepted financial valuation procedures, due diligence from visit with managers and relevant market data. This paper also reflects other critical valuation quantitative information concerning their considerable business activity and excellent future prospects in the “sales deals pipeline” such as Nokia, a key customer development, that should be reflected in any detailed report regarding valuation.Findings – Effective management requires that the emphasi...

Opinion polls and the stock market: evidence from the 2008 US presidential election

This article analyses stock market reactions to election polls. Stock markets anticipate the impact of events on future cash flows. Current values depend on future cash flows and risk prospects. We posit that election polls are indications of the political platforms that are expected to win elections. Given the traditional philosophical differences between the Republican and the Democratic Parties, and the specific campaign promises of the US presidential candidates in the 2008 election, we hypothesize that stock market reacts negatively to the prospect of Barack Obama winning the election. We test this hypothesis by relating daily stock index returns to a lag value of differences in election polls that show Obamas advantage over John McCain. The results consistently show that stock market reacts negatively (positively) when Obama (McCain) has poll advantage over McCain (Obama). We conclude that there are differences in perception between Main Street and Wall Street.

Comparison of Cost of Equity Models: New International Evidence

For individual stocks of 46 countries, this study investigates empirical differences in discount rate estimates between three risk-return models of interest to managers who perform discounted cash flow valuation analysis: (1) the traditional (local) CAPM; (2) the global CAPM (GCAPM), where the only risk factor is the global market index; and (3) an international CAPM (ICAPM) with two risk factors, the global market index and a wealth-weighted foreign currency index. The study finds that model choice makes a substantial difference for many, but not all, countries.

Community Engagement and Social Responsibility

Besides the social and economic benefits of increasing minority employment and supporting minority-owned businesses, hospitals can make a positive difference by bringing true diversity to urban hospital board structures. These boards of directors, now underrepresented by the minority populations of their communities, have the power and influence to determine the priorities of their institutions. Hospitals often are the largest employers in their communities and, as such, have the social responsibility of serving their communities in an equitable manner. This work primarily focuses on the data collected and analyzed regarding minority representation in the following areas: hospital governance; administrative and professional employment opportunities at the hospitals; and hospital purchasing practices.

Customer Challenges in Times of Global Risk and Uncertainty

Rapidly changing business conditions have made it more difficult and challenging for managers to keep customers (Carter, 2008). To build this process it is necessary to consult customers for preferences, build familiarity and knowledge to build a relationship and conduct business in a customized fashion. The process takes every opportunity to build customer satisfaction with each customer contact. It is an important process to have, since customers today are more demanding, sophisticated, educated and comfortable speaking to the company as an equal (Belk, 2003). Customers have more customized expectations so they want to be reached as individuals (Raymond and Tanner, 1994). Also, a disproportionate search for new business is costly. The cost to cultivate new customers is more than maintaining existing customers (Cathcart, 1990). Other reasons that Customer Retention is necessary is because many unhappy customers will never buy again from a company that dissatisfied them and they will communicate their displeasure to other people. These dissatisfied customers may not even convey their displeasure but without saying anything just stop doing business with that company, which may keep them unaware for some time that there is any problem (Cathcart, 1990).