Prakash L. Dheeriya

A comparison of the market model and random coefficient model using mergers as an event

Abstract The economic significance of an event under an event study framework depends on how risk of a security is measured in the estimation period. The random coefficient model is an improvement over the traditional market model, because the risk of a security has a random component that is ignored or assumed away in traditional event study literature. In this article, the measure of the risk of a security (beta) is decomposed into systematic and random components. If a random component is identified, then use of the ordinary least squares technique is likely to give misleading estimates of beta coefficients. The random coefficient model does not make the implicit assumption that betas of securities are fixed over time, and consequently it allows for the beta coefficient to have a random component. Estimates with the traditional market model and the random coefficient model are derived by using mergers as an event. Abnormal returns generated under the two models are compared and are consistent with results from earlier merger studies.

A Conceptual Framework for Describing Online Entrepreneurship

Abstract Most of the literature on entrepreneurship relates to the traditional “brick-and-mortar” type. A review of contemporary research in entrepreneurship literature suggests that online entrepreneurs are different from regular, or “brick-and-mortar” entrepreneurs. This paper attempts to collate all variables used in prior research to describe entrepreneurs and their ventures into a comprehensive framework. This framework considers four major aspects of entrepreneurship: characteristics of individuals starting the venture; technology used in the venture; the environment in which the venture operates and the process by which the venture is created. Such a framework can provide useful insights into the process of online entrepreneurship by showing it to be a complex, multi-factor phenomenon.

Further evidence on causality and feedback across international stocks

This study extends the previous research on interdependence of international stock markets by using Gewekes (1982) causality test on seventeen stock market indices. The impact of the stock market crash of October 1987 on other national stock markets is investigated by disaggregating the data into pre- and post-crash periods. Direction of causality and feedback is studied using standard causality tests. The results indicate very few stock markets (namely, the U.K. and the U.S.A.) influence other markets significantly. Almost all markets react to other markets past and present movements. Traditional major markets (Japan, France, and Canada) do not seem to be influential at all.

An investigation in exchange rate behavior of emerging countries

This study deals with the relative performance of major exponential smoothing models (Simple exponential (SES), Holts double parameter exponential (HTPES) and Winters three parameter exponential (WTPES) used in forecasting exchange rates of emerging countries.

Accessing international business resources on the Internet

In this paper we provide a brief description of the various ways in which the international business faculty can gain access to databases, reports and other resources on the internet. The objective of this paper is to provide a low cost, efficient way of retrieving data which can be used for international business research. This paper will be important to international business researchers (both academicians and practitioners) and students. By helping build the infrastructure for accessing information for research, this paper indirectly contributes to existing research.

Financial analysis of the US mineral and mining industry

Abstract This study evaluates the financial performance of publicity listed mineral and mining companies over the past 20 years. Results of this study are useful to practitioners and executives of this industry as they have a means of comparing their own corporate performance with the industry average. The purpose of this study is not to predict, but to inform, particularly in the applications of a few financial analytical techniques. The mineral and mining industry underwent a substantial change in the late 1980s by taking on large amounts of debt. This could indicate either an industry poised for expansion and/or modernization or an industry struggling to keep afloat after poor financial performance.