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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jbusres.2005.12.006 Byline: James J. Cochran (a), Ali F. Darrat (b), Khaled Elkhal (c) Keywords: Dotcom bankruptcy; Cox PH model; Calendar-time model; Event-time model; Sensitivity tests Abstract: In this paper we investigate bankruptcy of Internet (dotcoms) companies. Using a calendar-time model, we identify three key predictors of company failure; net income to total assets, cash flow to total liabilities, and total assets. In addition, we use an event-time model and find that liquidity becomes more important as a predictor than profit potential about one year prior to the failure, but that this finding is reversed (i.e. liquidity is less important than profit potential) three years prior to bankruptcy. Our results also suggest that three years prior to bankruptcy, a higher ratio of total liabilities to total assets is associated with lower odds of survival. Author Affiliation: (a) Department of Marketing and Analysis, Louisiana Tech University, Ruston, LA 71272, USA (b) Department of Economics and Finance, Louisiana Tech University, Ruston, LA 71272, USA (c) Department of Economics and Finance, College of Business, University of Southern Indiana, Evansville, IN 47712, USA Article History: Received 19 April 2005; Accepted 1 December 2005 Article Note: (footnote) [star] The authors wish to thank Rohan Christie-David for help with an earlier draft of the paper. Thanks also go to Emery Trahan, the Associate Editor, and to two anonymous reviewers for many helpful comments and suggestions. The usual disclaimer applies. An earlier version of the paper was presented at the 2003 Southern Finance Association Meeting in Charleston, South Carolina.

A study on the efficiency performance of real estate investment trusts (REITs) in United States since 1990s is presented. Many of these REITs have shown poor efficiency performance, which may be because of onerous regulatory environment.

This paper examines the impact of multinational trade accords on the degree of stock market linkage using NAFTA as a case study. Besides liberalizing trade among the U.S., Canada and Mexico, NAFTA has also sought to strengthen linkage among stock markets of these countries. If successful, this could lessen the appeal of asset diversification across the North American region and promote a higher degree of market efficiency. We assess the possible impact of NAFTA on market linkage using cross-correlations, multivariate price cointegrating systems, speed of convergence, and generalized variance decompositions of unexpected stock returns. The evidence proves robust and consistently indicates intensified equity market linkage since the NAFTA accord. The results also suggest that interdependent goods markets in the region are a primary reason behind the stronger equity market linkage observed in the post-NAFTA period. JEL classification: F36; F15 Keywords: NAFTA; Equity market linkage; Cointegration; Speed of convergence; Long-run price equilibrium; Generalized variance decompositions

An examination of the weakened relationship between money and macroeconomy in the US in the post-1980 period suggests that the weakening occurred only when money is measured by simple-sum aggregates. As compared to simple-sum aggregates, Divisia monetary aggregates shares a strong and stable relationship with the macroeconomy despite major policy shifts, financial innovations, and regulatory changes in the post-1980 period.

From the Camp David accords and the first handshake between Israelis and the PLO on the White House lawn in September 1993, supporters of the Oslo agreement had predicted a [...]

This article explores the causal (lead/lag) relation between government spending and taxation in two developing countries (Lebanon and Tunisia). Both countries have suffered from large budget deficit and/or national debt problems, particularly since the early 1990s. Empirical results deduced from a battery of tests suggest that decisions to spend and tax are significantly interdependent in both countries. Moreover; the evidence is consistent with the notion that raising taxes (working primarily through aroused public awareness) provokes spending cuts. Thus, higher taxes seem an optimal resolution to the deficit predicament in both countries. (JEL E62, H61, H63), I. INTRODUCTION Almost without exception, governments in developing countries have played a dominant role in aggregate economic activity, motivated in part by the absence of a well-established private sector capable [...]

We examine how firm characteristics, particularly the degree of firm complexity and the firm’s need for specialty knowledge, affect the relationship between corporate governance and the risk of bankruptcy. We find that having larger boards reduces the risk of bankruptcy only for complex firms. Our results also suggest that the proportion of inside directors on the board is inversely associated with the risk of bankruptcy in firms that require more specialist knowledge and that the reverse is true in technically unsophisticated firms. The results further reveal that the additional explanatory power from corporate governance variables becomes stronger as the time to bankruptcy is increased, implying that although corporate governance variables are important predictors, governance changes are likely to be too late to save a firm on the verge of bankruptcy. [ABSTRACT FROM AUTHOR]

Introduction Theories of a neoclassical persuasion have long established that real money stock is an important input in the aggregate production function. In particular, the monetary growth models of Friedman [...]