Pseudo Market Timing: Fact or Fiction?

The average firm going public or issuing new equity has underperformed the market in the long run. Endogeneity of the number of new issues has been proposed as a potential explanation of this long-run underperformance. Under pseudo market timing of new issues, ex post measures of average abnormal returns may be negative on average despite zero ex ante abnormal returns. We show that, under reasonable stationarity assumptions on the process generating events, traditional measures of average abnormal returns are consistent, and the pseudo market timing effect is a small sample problem. In simulations of an empirical model we demonstrate that the bias is small even in moderate sample sizes. An abnormal return measure capturing a feasible investment strategy is not biased. We argue that it is unlikely that pseudo market timing is the explanation for the long-run underperformance in equity issuances.Abnormal return measures; Endogenous events; Event studies; Initial public offerings; Long-run underperformance

The demand for higher education in the Netherlands 1950-'99

This paper investigates the role of economic factors in the university enrollment decision for the post-war period in the Netherlands. We include those factors standing at the heart of the idea that education is an investment. Collecting student enrollment data for eight subject categories results in a large data set, as a cross-section dimension is added to the time-series. The econometric results suggest that students are not responsive to tuition fees, but financial support (the sum of loans and grants), the college premium on future labour market earnings, and the alternative wage are important in the enrollment decision.

An Empirical Analysis of Legal Insider Trading in the Netherlands

In this paper, we employ a registry of legal insider trading for Dutch listed firms to investigate the information content of trades by corporate insiders. Using a standard event-study methodology, we examine short-term stock price behavior around trades. We find that purchases are followed by economically large abnormal returns. This result is strongest for purchases by top executives and for small market capitalization firms, which is consistent with the hypothesis that legal insider trading is an important channel through which information flows to the market. We analyze also the impact of the implementation of the Market Abuse Directive (European Union Directive 2003/6/EC), which strengthens the existing regulation in the Netherlands. We show that the new regulation reduced the information content of sales by top executives.insider trading, financial market regulation

Trading European sovereign bonds: the microstructure of the MTS trading platforms

We study the microstructure of the MTS Global Market bond trading system, which is the largest interdealer trading system for Eurozone government bonds. Using a unique new dataset we find that quoted and effective spreads are related to maturity and trading intensity. Securities can be traded on a domestic and EuroMTS platform. We show that despite the apparent fragmentation of trading, both platforms are closely connected in terms of liquidity. We also study the intraday price order flow relation in the Euro bond market. We estimate the price impact of order flow and control for the intraday trading intensity and the announcement of macroeconomic news. The regression results show a larger impact of order flows during announcement days and a higher price impact of trading after a longer period of inactivity. We relate these findings to interdealer trading and to the structure of European bond markets. JEL Classification: F31, C32Bonds markets, Microstructure, order flow

Endocrine Factors, Retinal Vessels, and Risk of Dementia

First described 100 years ago by Alois Alzheimer, the clinico-pathological entity that we now call Alzheimer disease was initially presented as a clinically unusual type of dementia. 1 Nowadays, Alzheimer disease is recognized as the main cause of dementia and one of the most disabling and burdensome health conditions worldwide.2,3 The number of people affected by dementia is estimated to double every 20 years to over 80 million by 2040.3 This will not only affect patients and their caregivers, but will also put an enormous demand on health care and welfare resources

Aromatase inhibitors in men: effects and therapeutic options

Aromatase inhibitors effectively delay epiphysial maturation in boys and improve testosterone levels in adult men Therefore, aromatase inhibitors may be used to increase adult height in boys with gonadotropin-independent precocious puberty, idiopathic short stature and constitutional delay of puberty. Long-term efficacy and safety of the use of aromatase inhibitors has not yet been established in males, however, and their routine use is therefore not yet recommended