The Extremes of the P/E Effect

The price-earnings effect has been a challenge to the idea of efficient markets for many years. The P/E used has always been the ratio of the current price to the previous year’s earnings. However, the P/E is partly determined by outside influences, such as the year in which it was measured, the size of the company, and the sector in which the company operates. Looking at all UK companies since 1975, we determine the power of these influences, and find that the sector influences the P/E in the opposite direction to the others. We use a regression to weight the influences according to their power in predicting returns, reversing the sector influence so that it works for us and not against us. The resulting weighted P/E widens the gap in annual returns between the value and glamour deciles by 8%, and identifies a value decile with average returns of 32%.

Decomposing the P/E Ratio

The price-earnings effect has been a challenge to the idea of efficient markets for many years. The P/E used has always been the ratio of the current price to the previous year’s earnings. However, the P/E is partly determined by outside influences, such as the year in which it was measured, the size of the company, and the sector in which the company operates. Looking at all UK companies since 1975, we determine the power of these influences, and find that the sector influences the P/E in the opposite direction to the others. We use a regression to weight the influences according to their power in predicting returns, reversing the sector influence so that it works for us and not against us. The resulting weighted P/E widens the gap in annual returns between the value and glamour deciles by 8%, and identifies a value decile with average returns of 32%.

The Long-Term P/E Radio

The price-earnings effect has been thoroughly documented and widely studied around the world. However, it has always been calculated on the basis of the previous year’s earnings. We show that the power of the effect has until now been seriously underestimated, due to taking too short-term a view of earnings. We look at all UK companies since 1975, and using the traditional P/E ratio we find the difference in average annual returns between the value and glamour deciles to be 6%, similar to other authors’ findings. We almost double that gap by calculating P/E ratios using earnings averaged over the last eight years. Averaging, however, implies equal weights for each past year. We widen the gap further by optimising the weights of the past years of earnings in the P/E ratio.

Do Expenditures for Student Support Services Lead to Demonstrable Gains in Student Achievement?

Wood, Allemand, Anderson, and Cheslock present a brief overview and analysis of the article, Relationship between types of school district expenditures and student performance, originally published in Applied Economics Letters. The authors present a summary of the key components of the article including the introduction, method and results of the study. They offer an additional analysis of implications for future practice, including a discussion of legislation and the conflicting evidence that school counseling and support services benefit students in academic and social competencies, as well as evidence that the cost seems to outweigh the benefits

Digital Game-Based Learning Activities in Primary Grade Mathematics Achievement

The research paper has gathered and analyzed research from online databases to find how digital game-based learning activities were used in mathematics and how it influences the affective domains of academic engagement, motivation, and academic self-perception. The paper aims to inform primary educators of the benefits and limitations of digital game-based activities in primary mathematics. Digital game-based learning has positively influenced students\u27 academic engagement through interaction, play, and effort, which had a positive effect on their mathematical achievement. Increased motivation felt by students when doing digital game-based activities resulted in higher mathematical achievement and an increase in learning more mathematics based on intrinsic and extrinsic factors. Digital game-based learning activities have also promoted students’ academic self-perception such as confidence and judgment of their ability. Drawbacks include the below-average percentage of high mathematical improvement as educators may want an activity with full confidence. Another drawback is that the rise in mathematical achievement may not be immediate. Some studies have acknowledged that students would eventually exceed their paper assessment scores if given more time to play. In conclusion, digital game-based learning activities in mathematics may increase student learning factors but remain inconsistent in learning gains. The research found in this paper will provide educators with the benefits and drawbacks of digital game-based activities in primary mathematics and allow educators to decide if this approach is right for their classroom

Forecasting Demand for Optimal Inventory with Long Lead Times: An Automotive Aftermarket Case Study

Accuracy in predicting customer demand is essential to building an economic inventory policy under periodic review, long lead-time, and a target fill rate. This study uses inventory and customer service level as a stock control metric to evaluate the forecast accuracy of different simple to more complex predictive analytical techniques. We show how traditional forecast error measures are inappropriate for inventory control, despite their consistent usage in many studies, by evaluating demand forecast performance dynamically with customer service level as a stock control metric that includes inventory holdings costs, stock out costs, and fill rate service levels. A second contribution includes evaluating the utility of introducing more complexity into the forecasting process for an automotive aftermarket parts manufacturer and the superior inventory control results using the Prais-Winsten, an econometric method, for non-intermittent demand forecasting with long-lead times. This study will add to the limited case study research on demand forecasting under long lead times using stock control metrics, dynamic model updating, and the Prais-Winsten method for inventory control