The Case For Emerging Market Funds

This study investigates the performance of open-end actively managed emerging market mutual funds during the time period 1999 to 2005. Our analysis is cross-sectional and time series across a wide range of emerging markets. Previous research includes performance studies of international mutual funds and emerging market funds, but none of the previous studies were as broad nor as specific as the current study. Monthly fund returns are compared to three indices (emerging markets, MSCI, and S&P 500 Index), using annualized returns, Sharpe ratio and Treynor ratio. The results show that the emerging market funds outperform the MSCI Index and the S&P 500 Index, but not the emerging market index. During the study period, an investor would have benefited by either investing in emerging market funds or the emerging market index. There is also a negative relationship between emerging market fund returns and turnover, and a positive relationship between fund returns and size

Are Experienced Analysts More Accurate?

We examine the relationship between analyst experience and the accuracy of annual earnings forecasts using a 20-year sample (1983-2002) from the Thomson Financial First Call I/B/E/S database.  We test for this relationship using three different measures of forecast accuracy employed by prior researchers, which are regressed against measures of general experience and specific experience, along with five other controls, for four independent 5-year subperiods, as well as for the full 20-year period.  We find that general experience levels are positively associated with forecast accuracy (negatively associated with forecast error) in most subperiods for two of the three measures of forecast accuracy.  We also find, in contrast with the extant literature, that for two of the three measures of forecast accuracy and for most subperiods, specific experience does not have an association with forecast accuracy beyond that provided by the general experience measure.  Our results suggest that the relationship between forecast accuracy and analyst experience (as well as some other commonly examined analyst characteristics) is dependent on the measure of accuracy employed and the time period studied

An Analysis of Income Smoothing

The purpose of this research is to investigate various income smoothing detection methods.  Using a SEC identified sample of firms that were charged with violations of GAAP due to earnings manipulations and a matched sample of firms, we test seven popular models to determine which provide the best identification of income smoothing. The results indicate that, while there is no significant difference between six of the seven detection methods, the Dechow et al. method provides different results. We found the Dechow, et al. method to be significantly different in detecting smoothing, although this method was different only because it detected 25 out of the total of 28 firms as income smoothing firms.  Our results indicate that many more of the matched sample appear to be income smoothing firms and fewer of the SEC sample appear to smooth income.We think these results indicate that researchers should be cautious in their conclusions.  While these methods provide differing results, they also provide insight into the various aspects of income smoothing and the resulting effect on earnings.  Therefore this research has provided insight into the different income smoothing detection models, while also indicating that different methods are not equally suited to determine all forms of income smoothing.  The appropriate methodology must be chosen to address the specific aspects of income smoothing or earnings management that the researcher is investigating

Predicting Hemolytic Uremic Syndrome and Renal Replacement Therapy in Shiga Toxin-producing Escherichia coli-infected Children.

BACKGROUND: Shiga toxin-producing Escherichia coli (STEC) infections are leading causes of pediatric acute renal failure. Identifying hemolytic uremic syndrome (HUS) risk factors is needed to guide care. METHODS: We conducted a multicenter, historical cohort study to identify features associated with development of HUS (primary outcome) and need for renal replacement therapy (RRT) (secondary outcome) in STEC-infected children without HUS at initial presentation. Children agedeligible. RESULTS: Of 927 STEC-infected children, 41 (4.4%) had HUS at presentation; of the remaining 886, 126 (14.2%) developed HUS. Predictors (all shown as odds ratio [OR] with 95% confidence interval [CI]) of HUS included younger age (0.77 [.69-.85] per year), leukocyte count ≥13.0 × 103/μL (2.54 [1.42-4.54]), higher hematocrit (1.83 [1.21-2.77] per 5% increase) and serum creatinine (10.82 [1.49-78.69] per 1 mg/dL increase), platelet count \u3c250 \u3e× 103/μL (1.92 [1.02-3.60]), lower serum sodium (1.12 [1.02-1.23 per 1 mmol/L decrease), and intravenous fluid administration initiated ≥4 days following diarrhea onset (2.50 [1.14-5.46]). A longer interval from diarrhea onset to index visit was associated with reduced HUS risk (OR, 0.70 [95% CI, .54-.90]). RRT predictors (all shown as OR [95% CI]) included female sex (2.27 [1.14-4.50]), younger age (0.83 [.74-.92] per year), lower serum sodium (1.15 [1.04-1.27] per mmol/L decrease), higher leukocyte count ≥13.0 × 103/μL (2.35 [1.17-4.72]) and creatinine (7.75 [1.20-50.16] per 1 mg/dL increase) concentrations, and initial intravenous fluid administration ≥4 days following diarrhea onset (2.71 [1.18-6.21]). CONCLUSIONS: The complex nature of STEC infection renders predicting its course a challenge. Risk factors we identified highlight the importance of avoiding dehydration and performing close clinical and laboratory monitoring

MKS3/TMEM67 mutations are a major cause of COACH syndrome, a joubert syndrome related disorder with liver involvement

The acronym COACH defines an autosomal recessive condition of Cerebellar vermis hypo/ aplasia, Oligophrenia, congenital Ataxia, Coloboma and Hepatic fibrosis. Patients present the “molar tooth sign”, a midbrain-hindbrain malformation pathognomonic for Joubert Syndrome (JS) and Related Disorders (JSRDs). The main feature of COACH is congenital hepatic fibrosis (CHF), resulting from malformation of the embryonic ductal plate. CHF is invariably found also in Meckel syndrome (MS), a lethal ciliopathy already found to be allelic with JSRDs at the CEP290 and RPGRIP1L genes. Recently, mutations in the MKS3 gene (approved symbol TMEM67), causative of about 7% MS cases, have been detected in few Meckel-like and pure JS patients. Analysis of MKS3 in 14 COACH families identified mutations in 8 (57%). Features such as colobomas and nephronophthisis were found only in a subset of mutated cases. These data confirm COACH as a distinct JSRD subgroup with core features of JS plus CHF, which major gene is MKS3, and further strengthen gene-phenotype correlates in JSRDs

Exploration of Personality Factors in Relation to College Students’ Attitudes About Plagiarism

College students were presented with a scenario in which a student plagiarized in a research paper. Students rated the severity of the act, appropriate consequences, and type and level of desired social interaction with the student. Participants’ attitudes about plagiarism were investigated in relation to their academic locus of control, academic motivation, procrastination tendencies, and the Five Factor Model personality dimensions of Openness, Conscientiousness, Extroversion, Agreeableness, and Neuroticism. The results of this study have important implications for faculty who mentor and utilize undergraduate research assistants, and illuminate characteristics that relate to student tolerance or even propensity to engage in plagiarism

A Pedagogical Tool To Assist In Teaching Real Estate Investment Risk Analysis

This paper presents a simple Excel model that provides measures of the standard deviation of forecasted internal rate of return (IRR) given traditional data inputs such as annual cash flows, terminal values and equity. The model first calculates IRR using traditional discounted cash flow methods and then provides heuristic estimates of variability measured in terms of high, low and most likely values. It also provides an actual measurement of risk in terms of mean and standard deviation and upper and lower quartiles, along with a graphical presentation of various risk parameters. The only additional analysis required is an estimation of the variability of periodic cash flows and the terminal value of the investment

Using Instant Messenger In The Finance Course

Purpose – New technologies have provided new tools we may use as finance professors to communicate with our students. Instant messaging (IM) has become a common communication tool in industry and among students. The purpose of this paper is to investigate the use of IM as a communication tool in finance courses. Design/methodology/approach – After reviewing the advantages and disadvantages of IM, the students were surveyed to determine how they viewed IM in comparison to other communication techniques. Findings – The paper finds that 50 per cent or students use IM at any time (not just for class). The majority of the IM users, use it several times a day and have used it for two to three years. Only about 15.7 per cent of our students have used IM for our classes. The range of IM usage in the classes is 7-25 per cent. Of those students who have used IM for our courses, they have used it 2-5 times during the semester and almost all students found it useful. Students were asked to rate various methods of professor/student communication. The students strongly like face-to-face communication, followed by (in order of preference) email, IM, and telephone. Students disagree with the statement that IM is a substitute for face-to-face interaction and agree that IM is a supplement to face-to-face interaction. Originality/value – The findings suggest ways to improve communications with students and other persons

The Information Contents Of Senior Offerings That Reduce Junior Securities

This study examines 196 pure leverage increases consisting of senior offerings that reduce junior securities. The following contributions not previously discovered by the senior-for-junior research are offered. First, firms for which less information exists have positive announcement period stock returns that are significantly greater than firms for which more information exists. Second, the signaling effects associated with the announcement of a premium and with adverse selection exercise a significant impact on stock returns. Last, the decrease in systematic risk, that accompanies senior-for-junior transactions, occurs almost solely for firms for which less information exists. © 1999 Elsevier Science Inc