Who makes market

We explore the role of dealers to determine whether they are liquidity-providing market makers or liquidity-taking information traders. Standard models of market making, such as Kyle (1985) and Grossman and Miller (1988), imply a negative contemporaneous correlation between market maker order flow and stock returns. We test this relation with a unique dataset containing trades of all dealers in a well-developed, liquid market. The correlation is strongly positive, implying that dealers take liquidity. We also develop a unique profit decomposition to compare intraweek information and market making profits. Dealers earn significant excess returns, in aggregate driven by information rather than market making. Subgroup analysis reveals that information profits are positive and increasing in stock capitalization, and market making returns are positive and significant for all but the largest stocksDealer, Liquidity Provision

A cohomological interpretation of the scalar product on the elliptic class functions

Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Mathematics, 1994.Includes bibliographical references (leaves 33-34).by Hi-joon Chae.Ph.D

The Effect Of Book-Tax Conformity On The Use Of Accruals: Evidence From Korea

This study in the Korean context investigates the effect of book-tax conformity on the use of accruals. In a sample of 4,331 Korean firms, we divide total accruals into book-tax accruals and book-only accruals. Book-tax accruals are defined as those that affect both taxable income and reported earnings. Book-only accruals are defined as those that affect only reported earnings and are unrelated to taxable income. We anticipate that managers will decrease taxable income by recording book-tax accruals that conform relatively closely to taxable income in order to reduce their tax liability. They are expected to attempt to increase book income through book-only accruals. We also examine the market response to firms that use these two types of accruals in different ways. Our evidence demonstrates increased use of income-decreasing book-tax accruals to decrease taxable income and increased use of book-only accruals to increase financial income. Use of book-only accruals also compensates for potential costs unrelated to tax, such as financial reporting costs. In addition, our results show that the market correctly assesses the management of accruals even when the uses of book-tax and book-only accruals offset each other

The Effect Of Human Resource Investment In Internal Accounting Control On Cost Stickiness

This study examined the characteristics of internal accounting control system based on size of human resources assigned to the system to verify whether downward stickiness of total cost and selling and administrative expenses differentially appears according to the level.An entrepreneur who wishes to maximize one's utility has an incentive to externally grow the enterprise beyond the optimal size or to possess idle resources, creating cost sticking phenomenon by possessing surplus resources even when sales volume decreases. Previous studies verified the effect of control system intended to resolve the agency problem on asymmetry of cost. This study expanded the scope of previous studies to consider internal accounting control system as a monitor of the agency problem. Enterprises that effectively operate internal accounting control system are expected to show limited opportunistic incentive of the entrepreneurs because of reduced agency cost.The main purpose for enterprises to establish and operate internal accounting control system is to provide accurate and reliable financial information to investors by preventing or uncovering accounting scandals of the management and possibility of errors. Internal accounting control system of Korea was first introduced in September 2001 through 'Corporate Restructuring Promotion Act', and Financial Supervisory Service announced the regulation on public announcement in September 2002 as a series of relevant measures. The regulation requires enterprises to publicly announce the number of workers in each department in charge of internal accounting control system on the internal accounting control system report. Under the presumption that internal accounting control can be more effectively done by increasing the number of workers in charge of internal accounting control system, the intent of such public announcement is to provide external interested parties with information that can be used to determine whether internal accounting control system of an enterprise is being effectively managed. Accordingly in this study, enterprises with large size of human resources assigned to internal accounting control system were predicted to show relaxed downward stickiness of cost.As a result of verifying 2,532 enterprise-year samples listed on Korea Stock Exchange between 2003 and 2008, enterprises with larger size of human resources assigned to internal accounting control system were found to show relaxed downward stickiness of cost. This means that an enterprise with large number of workers assigned to internal accounting control system can effectively monitor the enterprise, which can efficiently control opportunistic decisions of the entrepreneur such as downward stickiness of cost. As an additional analysis, human resources were classified into departments to which persons in charge of internal accounting are affiliated to examine the effect on downward stickiness of cost. As a result of verification, high ratio of internal accounting personnel assigned to accounting department resulted in relaxed downward stickiness of cost. Accounting departments in charge of preparing for financial statements were more effectively performing monitoring work compared to other departments

The Effect Of Family Firm On The Credit Rating: Evidence From Republic Of Korea

This study examined whether there were differences in the credit ratings of family firms, one type of business ownership and corporate governance in Korea. Credit rating agencies which evaluate a company's ability to pay back the debt play a key role in evaluating corporate values in the capital market. A variety of standards are applied to evaluate corporate credit ratings. The corporate governance structure is also under consideration. Credit rating agencies may give excellent credit ratings to family firms if they judge that family companies have efficient governance structures resulting in lower agency costs as companies which try to match minority shareholders' interests. On the other hand, they may give lower credit ratings to family firms if they judge that family firms have a negative impact on firm performance. In this context, this study planned to investigate how credit rating agencies constituting the mainstay in the evaluation of corporate values with analysts judged the roles of family firms which had been controversial in previous studies in the capital market, and present direct results

Escape From The Market: Discretionary Liquidity Trading

Using two types of corporate events, a scheduled announcement and an unscheduled announcement, I investigate the effect of information asymmetry on trading volume. Only before a scheduled announcement, such as an earnings announcement, can I observe decreasing trading volume. I construct a simple theoretical model that suggests how ex ante information asymmetry and discretionary liquidity trading could cause the decreasing trading volume only before a scheduled announcement. Finally, analyzing the relationship between this decreasing trading volume and proxies of ex ante information asymmetry, such as analyst coverage, size, and industry categorization, I test and confirm an information asymmetry hypothesis about the trading volume pattern before a scheduled announcement

An Overview of Bee Venom Acupuncture in the Treatment of Arthritis

Bee venom acupuncture (BVA), as a kind of herbal acupuncture, exerts not only pharmacological actions from the bioactive compounds isolated from bee venom but also a mechanical function from acupuncture stimulation. BVA is growing in popularity, especially in Korea, and is used primarily for pain relief in many kinds of diseases. We aimed to summarize and evaluate the available evidence of BVA for rheumatoid arthritis and osteoarthritis. Computerized literature searches for experimental studies and clinical trials of BVA for arthritis were performed on the databases from PUBMED, EMBASE and the Cochrane Library. In addition, two leading Korean journals (The Journal of Korean Society for Acupuncture and Moxibustion and The Journal of Korean Oriental Medicine) were searched for relevant studies. The search revealed 67 studies, 15 of which met our criteria. The anti-inflammation and analgesic actions of BVA were proved in various kinds of animal arthritic models. Two randomized controlled trials and three uncontrolled clinical trials showed that BVA was effective in the treatment of arthritis. It is highly likely that the effectiveness of BVA for arthritis is a promising area of future research. However, there is limited evidence demonstrating the efficacy of BVA in arthritis. Rigorous trials with large sample size and adequate design are needed to define the role of BVA for these indications. In addition, studies on the optimal dosage and concentration of BVA are recommended for future trials