Seeking negative alphas through shorting

Shorting involves selling stocks that one does not own. Advocates of shorting argue that it is needed to make the financial market a two-way (complete) market in which investors with bearish opinions can participate. To gain from shorting, short sellers hope to buy back the shorted stocks at a lower price. Obtaining ‘negative’ alphas or abnormal returns is thus desirable for short sellers as they imply the underperformance of the stocks and that a profit has been realized. Abnormal returns, according to Fama (1998), are anomalies that tend to disappear when reasonable changes are made to the methodology used to measure them. Diamond and Verrecchia (1987), however, theorize and argue a priori that an unusually large increase in short interest will be followed by a period of negative abnormal returns. Short interest is equal to the number of shorted shares divided by the number of shares available to be shorted. Using daily short interest data for stocks traded on the London Stock Exchange for the period of September 2003 to April 2010, we employ an event study to investigate the effects that follow shorting. Alphas and abnormal returns are measured according to the Market Model (MM), the Capital Asset Pricing Model (CAPM) and the Fama–French Three-factor Model (FF3F), and are estimated using different estimation windows of 60 and 120 days. In all the methodologies under study, we find significant negative alphas following shorting

Implied volatility forecasting in the options market: a survey

Implied volatility is regarded as one of the most important variables for determining profitability in options trading. Implied volatility gives indication about the future volatility of the underlying asset and can be used to predict the degree to which the asset price might swing and thus whether the options could become profitable before expiration. Volatility forecasting can be grouped into two main categories namely option-implied volatility and historical time-series models. There is an academic debate as to which of the two methods has stronger predictive power. In this paper, we provide a review of options-implied volatility forecasting studies. This survey of the literature suggests there is no consensus to indicate that the implied volatility has stronger predictive power than historical time series in forecasting realized volatility

Subband decomposition techniques for adaptive channel equalisation

In this contribution, the convergence behaviour of the adaptive linear equaliser based on subband decomposition technique is investigated. Two different subband-based linear equalisers are employed, with the aim of improving the equaliser's convergence performance. Simulation results over three channel models having different spectral characteristic are presented. Computer simulations indicate that subband-based equalisers outperform the conventional fullband linear equaliser when channel exhibit severe spectral dynamic. Convergence rate of subband equalisers are governed by the slowest subband, whereby different convergence behaviour in each individual subband is observed. Finally, the complexity of fullband and subband equalisers is discussed

Gibrat’s law and liquidity constraints: evidence from Malaysia industrial sector companies

Gibrat’s Law, or the Law of Proportionate Effect (LPE), presupposes that the growth rate of a given company is independent of its initial size. While older studies have a tendency to confirm the LPE, recent studies generally reject it. Only very few empirical studies have examined the validity of Gibrat’s Law in developing countries, with most studies focused on developed countries. In this study, we investigated the validity of the LPE in Malaysia. We also investigated whether liquidity constraints have any influence on firm growth and firm growth-size dynamics. By employing the Generalized Method of Moments (GMM) system to estimate a panel data model of the firm growth of 210 firms that were part of the Malaysian industrial sector from 2005 to 2014, we found that Gibrat’s Law was invalid and liquidity constraints had no role in explaining both the firms’ growth and growth-size dynamics, whereas age was found to positively affect the firms’ growth

Genetic and Developmental Basis of Cardiovascular Malformations

Cardiovascular malformations (CVMs) are the most common birth defect, occurring in 1% to 5% of all live births. Genetic, epigenetic, and environmental factors all influence the development of CVMs, and an improved understanding of the causation of CVMs is a prerequisite for prevention. Cardiac development is a complex, multistep process of morphogenesis that is under genetic regulation. Although the genetic contribution to CVMs is well recognized, the genetic causes of human CVMs are still identified infrequently. This article discusses the key genetic concepts characterizing human CVMs, their developmental basis, and the critical developmental and genetic concepts underlying their pathogenesis

Analysis Of Problems Faced By Special Education Teacher In Teaching The Multiple Disabilities Students

Multiple disabilities were defined as a person with two or more disabilities. It had caused a lot of problems in teaching and learning because they need specific education. The main objective of this study is to identify and determine the priority level of the problems faced by special education teachers in teaching multiple disabilities students. This study was based on Maslow’s Motivational Theory that focusing on Maslow’s Hierarchy of Needs. This survey had implemented questionnaire instrument that had been adapted from Oklahoma Office of Handicapped Concerns: 2001-2002 Disability Assessment Study. Interview protocol was adapted from National Center For Postsecondary Improvement and was implemented to identify other problems. The respondents were 66 special education teachers from 18 schools in Muar distric and 18 others were for interview session that were choosen using purposive sampling. The datas were analyzed using the IBM SPSS Statistic Version 22 by comparing mean and the findings from the interview were analyzed narratively. Both findings were devided into 3 levels which were low, medium and high according to mean value and percentage of respondent agreements. This study had found 12 problems (mean=3.97, s.d=0.916) and the 4 main problems according to priority were (1) lack of specific teaching aids (mean=4.15, s.d=0.808) (2) low self motivation and self confident (mean=4.14, s.d=0.857) (3) lack of aids support (mean=4.12, s.d=0.851) (4) communication problems (mean=4.09, s.d=0.872). The findings from the interview had came up with 15 problems and the 5 main problems according to priority were (1) emotional disturbance and lack of concentration (2) non-condusive environment in the classroom (3) communication problems (4) low cognitive level (5) lack of specific teaching aids. These findings were seen as good indicators for the authorities and special education teachers to develop and improve the education system, teaching pedagogy and high quality level of profesionalism among special education teachers

Comparison of microbial contamination on lips cosmetics tester at drug store, Seremban / Nur Qamariah Wiraie Mohamad Azhar

Cosmetic tester is the sample of the product provided by the company for consumer to try it before buying the product. Cosmetic can provide a suitable medium for pathogenic microbial growth. Cosmetic products do not necessarily sterile but it must not be contaminated with pathogenic microorganism. Hence, the objectives of this study is to isolate and identify Pseudomonas aeruginosa and Escherichia coli in lips cosmetic testers and to compare the contamination level among the lip cosmetic testers available in drug store at Seremban. A new unused sample, two weeks old and 4 weeks old sample testers were obtained from Drug store at Seremban. 0. lg of each sample was homogenized in 2ml of tween 80 before added 8ml of sterile nutrient broth to the sample emulsion. 0.1ml of sample emulsion was spread on Pseudomonas isolation agar and Eosin Methylene blue agar before incubated at 37° C for 24 hours. The colonies growth was identified and the contamination level is determined using total colony forming unit. Regarding the result, there was no growth on the unused tester while the used tester contained Pseudomonas aeruginosa and Citrobacter freundii. The total colony count in 2 weeks sample is 1004 CFU/g while in the 4 weeks sample is 2833 CFU/g. In comparison, the contamination level of 4 weeks old sample is higher than 2 weeks old sample. In conclusion, the lips cosmetic testers were contaminated as it exceeded microbiological limit for finished lip care product with the requirement absence of gram negative bacteria

The influence of workload, salary and coworker towards job satisfaction among employees

Job Satisfaction is an important aspect for every organization so the main aim of this study is to examine the influence of workload, salary and coworker on job satisfaction toward employees. The objective of this study is to examine the influence of every independent variable on job satisfaction. The study involved 123 numbers of employees. This is a quantitative research so in order to analyze the data that been collected Statistical Package for Social Science (SPSS) has to be used in order to see the relationship between independent variables which is workload, salary and coworker on dependent variable which is job satisfaction. This study had recognized workload, salary and coworker as a factor that may influence job satisfaction. According to the multiple regression analysis every independent variables got positive relationship with dependent variables but what make it differences was workload do not have significant positive relationship with job satisfaction compare to salary and coworker. More importantly, based to findings salary and coworker will positively influence job satisfaction but for the workload case this variables will not positively influence job satisfaction. Finally from the researcher point of view the organization should play a significant role in order to keep their employee satisfy because it may bring so many benefits to the organization and researcher also will provides a recommendation to the organization in this study

Pocket-hydro turbine into capsule hydro turbine

The capsule hydro turbine (CaHT) is a continuous power machine in which a wheel or rotor typically filted whereas produce electricity. It is designed like a capsule shape which has two twin turbines on both output to generate energy as an alternative power supply. The devide is capable of producing output of 12v to power up electrical applicances. The device consist of dynamos, turbines, charging circuit, battery, inverter, and wire cables. The result of the capsule hydro turbine (CaHT) field is presented in three types of graphs as in this paper. The optimum voltage of battery was 6.97v. By using these terms, the research project has successfully improvised the pocket hydro turbine (PHT) into capsule hydro turbine (CaHT

Ex-post effects of circuit breakers in crisis and calm markets: long horizon evidence from wide-band Malaysian price limits

Purpose – Despite regulatory claims of straitening volatility and preventing crashes, evidences on circuit breakers’ ability to achieve so are nonconclusive. While previous scholars studies general performances of circuit breakers, the authors examine whether Malaysian price limits aggravate volatility, impede price discovery, and interfere with trading activities in both tranquil and stressful periods. Design/methodology/approach – The study uses a combination of parametric and nonparametric techniques consistent with Kim and Rhee (1997) to examine the major ex-post hypotheses in circuit breaker research. Findings – For calm markets, the authors find significant success of upper limits in tempering volatility with low trading interference. Lower limits show mixed results. Conversely, in crisis markets limits fare poorly in nearly all aspects, particularly for lower limits. Practical implications – Ramifications of the paper’s findings are discussed through highlighting the asymmetric nature of price limits’ ex-post effects. The paper also contributes to regulatory debate surrounding the quest for an optimal price limit. Originality/value – The paper is the first of its kind in documenting long-horizon evidence of ex-post effects of a wide-band price limit. Moreover, the paper is unique in its approach in bifurcating circuit breaker performance along the line of market stability periods