Željko Šević

Modelling traditional accounting and modern value‐based performance measures to explain stock market returns in the Athens Stock Exchange (ASE)

Purpose – The purpose of this paper is to investigate the explanatory power of two value‐based performance measurement models, Economic Value Added (EVA®) and shareholder value added (SVA), compared with three traditional accounting performance measures: earnings per share (EPS), return on investment (ROI), and return on equity (ROE), in explaining stock market returns in the Athens Stock Exchange (ASE).Design/methodology/approach – The paper uses the Easton and Harris formal valuation model and employs both a relative and an incremental information content approach to examine which performance measure best explains stock market returns; and the explanatory power of the pairwise combinations of one value‐based performance measurement model and one traditional accounting performance measure in explaining stock market returns. For this purpose, pooled time‐series, cross‐sectional data of listed companies in the Athens Stock Exchange (ASE) over the period 1992‐2001 have been collected and modelled.Findings –...

Measuring performance on a local government level in a transitional country: the case of Serbia

Purpose – The paper seeks to discuss the process of performance management and measurement system‐building in the public sector in a transitional country, with particular reference to Serbia.Design/methodology/approach – A short description of the general legal framework within which the local governments in Serbia operate is given, followed by a discussion of the usual, and to some extent well‐known, problems of performance management system‐building and implementation.Findings – The detailed interviews with a number of mayors and senior local Civil Servants pointed out that a number of issues, believed to have been resolved in the Western countries, have emerged as being problematic in the policy implementation process in the region.Originality/value – This paper not only analyses the stages in the system‐building process, but also tries to explain why “measurement revolutions” may fail in a constantly changing transitional environment.

Investors' behaviour in the Athens Stock Exchange (ASE)

Purpose - The purpose of this paper is to investigate the various methods and techniques used by Greek investors (both professional and individuals) when evaluating potential additions to their investment portfolios. Design/methodology/approach - The paper uses both a questionnaire survey and a series of interviews to examine the practice of investment management in terms of stock market forecasting and stock valuation. The respondents consist of six different groups of investors, drawn from across Greece, namely: official members of the Athens Stock Exchange, mutual fund management companies, portfolio investment companies, listed companies, brokers and individual investors (ININ). Findings - The results indicate that ININ rely more on newspapers/media and noise in the market when making their investment decisions, while professional investors rely more on fundamental and technical analysis and less on portfolio analysis. The investment horizon seems to have a direct association with the relative importance of the techniques that professionals use for stock analysis. Also, the use of specific techniques seems to have a different impact on the performance of professionals. Practical implications - The results highlight the practical methods and techniques used by various Greek investors when making their stock investment decisions as well as analysing the consequences of these methods on their performance. Originality/value - This paper is the first study of the methods used by different classes of investor in the relatively underdeveloped capital market of Greece.

Earnings response coefficients in the Greek market

The paper explores the relationship between accounting information and stock returns of the companies listed on the Athens Stock Exchange (ASE) in the period 1998--2008. Publicly available financial data on the companies included in the ASE during 1998--2008 have been collected and processed. The data sample consists of 245 companies and varies from 2,166 to 1,441 firm-year observations. The research methodology has been based on the extension of the model introduced by Kothari and Sloan (1992) and investigates whether the level of earnings divided by price at the beginning of the stock return period is associated with returns in the context of ‘prices lead earnings’ using annual and quarterly data. Cross-sectional regression analysis points to a significant relationship between earnings and returns on measurement windows of one year and longer. Similar results have been found in the case of a cumulative model where earnings are aggregated up to four years; however, relationship in the short measurement window up to three quarters has resulted in low earnings response coefficients.

Determinants of choice of depositary receipt programs: an exploratory study

Purpose - The purpose of this paper is to perform an exploratory study of depositary receipts (DRs). In addition to the geographical analysis it test several hypothesis linked to various DRs’ issues. Design/methodology/approach - Using the publicly available The Bank of New Yorks (now The Bank of New York Mellon) database, descriptive statistics and logit analysis were applied. Findings - It is evident that smaller firms issue DRs in lower level programs apparently due to the considerable cost barriers; firms with larger capital expenditure plans prefer to issue under level III or Rule 144A DR programs and higher quality firms, proxied by lower leverage, are likely to make higher-level DR issues. Research limitations/implications - The database is updated quite frequently and departures from enclosed findings are likely to occur in the years to come. Practical implications - Management interested in issuing DRs may become acquainted with the pattern exercised by both small and large companies, or by companies with specific capital structures. In this manner the listing demonstrates less uncertainty as long as it is possible for managers to ascertain and compare own companies’ features. Originality/value - The paper adds to the current literature regarding in-depth analysis of the DRs market.

State and Society in the Philippines

Promising to situate the Philippines in global and regional contexts, the authors aim to ‘reconsider the narrative of Philippine political development’, to attempt a ‘sustained analysis of state formation over the course of a millennium’ and to develop a ‘framework for understanding Philippine state-society relations over time’ (page xv). Whereas the standard narrative follows conventional historical periodisation – ‘“preHispanic”; Spanish; revolutionary; American; Commonwealth; Japanese; and, in the Republican era, by presidential administration’ – the authors have written a book that ‘acknowledges the Southeast Asian connections of the Philippines and the changing rhythm of state and social formation across times and regimes’ (page 4).