Hormoz Movassaghi

Impact of Internet on financial services industry: a case study of on‐line investing

Outlines the internet’s contribution to the US economy with particular reference to the growth of online investing since 1994. Presents a study of the factors leading to this growth and its impact on the industry. Tabulates the market shares and stock commissions of the top ten online brokers, discusses their competitive strategies and identifies their key growth drivers. Suggests that they examplify McNair’s (1978) “wheel of retailing” by moving from a new, discounted service to a range of services like those of traditional brokers. Considers the online industry’s current problems (technical, legal, regulatory etc.), gives some advice on choosing an online broker and ranks the top ten by various criteria. Predicts that customers will benefit from increasing competition in the future and that the most successful firms will be middle‐tier ones offering a good combination of cost and service.

“Emerging” vs. “Developed” markets closed‐end funds: a comparative performance analysis

This study examines the fund‐level correlates of return and share price discount or premium for the closed end funds (CEFs) investing in emerging and developed capital markets. It also compares the performance of CEFs investing in emerging markets with similar types of funds that invested in the developed markets, especially significant in light of recent economic crises experienced by a number of such emerging economies and their ripple (contagion) effects felt in other emerging or developed capital markets. Lastly, as emerging markets constitute a wide array of countries with very different economic records, this paper looks into the performance of emerging markets CEFs by region as well as the performance of single‐country versus regional funds. Findings confirmed results of many studies of domestic and international open‐ or closed‐end funds on determinants of return and share price discount or premium. Emerging capital markets also continued to provide an outlet for international investors to improve their portfolio return despite significant volatility that surrounded them during the study period. Lastly, this study did not find any compelling evidence for consistent superior performance by CEFs investing in any particular region or country within the emerging markets.

Consumer attitudes toward genetically modified food in the United States: Are Millennials different?

ABSTRACT Our study adds to the extant literature by focusing on Millennials, exploring possible generational shift that may have taken place in attitudes related to and consumption of such products. Results suggest that Millennials respond similarly as non-Millennials across several factors that shape consumers’ views and behaviors toward genetically modified technology and products. Millennials who are more educated and knowledgeable about biotechnology, though, are more willing to purchase GM foods. They perceive less risk and have fewer safety concerns compared to non-Millennials. Furthermore, male Millennials are more willing to purchase GM products and are more supportive of encouraging GM technology compared to female Millennials.

The influence of standard and poor’s ranking changes on stock price performance

Describes Standard and Poor’s (S&P: USA) star ranking system for firm performance and presents a study of the impact of ranking changes on share prices. Outlines previous research on the effect of ranking changes and examines the share prices for 70 days before and after S&P ranking change announcements 1993‐1995 to assess abnormal returns. Explains the methodology and presents the results, which show significant changes in abnormal returns around the announcement dates, especially where the change is “in leaps rather than in steps”.

A case study of ethics and mutual funds mismanagement at Putnam

This case study examines the failure of top management at Putnam to exercise ethical behavior in the face of their clear knowledge of corruption in the company. Market timing by employees was expressly forbidden by Putnam. Six employees, including two portfolio managers, repeatedly engaged in market timing activities from 1998 to 2003, garnering over a million dollars in personal profit. The CEO and key senior executives had factual knowledge of the abuses. Management failed to stop the abuses or to discipline those involved until faced with charges from government regulators. By failing to do so, top management breached ethical duties to its shareholders and inflicted serious damage on the organization. The end results of top managements failure to address ethical violations were significant outflow of assets from Putnams funds, payment of penalties, and loss of trust among investors. This case raises awareness about ethical issues surrounding mutual fund trading practices and the impact that top management can have on the ethical behavior of employees.

The Implications of Europe 1992 on U.S. Companies: An Empirical Study of New York Manufacturers

This study was conducted to find out the perceptions of New York exporters on developments related to EC 1992 and how those changes might affect their marketing strategies. Although a large number of respondents felt that the EC market was very important for the future of their firms, they were concerned about potential tariff and non-tariff barriers. Close to half of the firms studied were in the process of preparing for the post-1992 period. Expanding agent/distributor network was found to be the most preferred method of penetrating the EC market and/or increasing market shares there. The executives in the sample were a great deal more optimistic about the issues related to NAFTA. Many felt that NAFTA will make their firms more competitive both at home and in overseas markets including the European Community.

Export Promotion Services in the United States: Is it Time for a Serious Soul Searching?

This study examined the awareness and utilization of several federal and state governments’ export support services among a random sample of exporters in New York. Results from 159 completed surveys show significant ignorance among companies in this regard. In light of findings of this and similar studies, a number of specific policy recommendations are made to improve the efficacy of export promotion programs.