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Generation Z, born between the mid-1990s and early 2010s, is the focus of today's investment market. They grew up in the digital era with advanced technology and extensive internet connectivity. Companies are focusing on digital marketing communication strategies and application-based investment systems to increase Generation Z's participation in investment. The financial industry in East Priangan has adapted to this strategy, helping companies reach target audiences with relevant and engaging messages, and providing convenience and accessibility for Generation Z who rely on technology. This study aims to determine how digital marketing strategies and app-based investment systems affect Generation Z's interest in investing in East Priangan, as well as how they affect Generation Z's overall interest in investing. The method used in this research is quantitative descriptive based on research results showing that digital marketing communication strategies and the implementation of an application-based investment system have a strong influence on Generation Z's interest in investing. An increase in these two strategies can significantly increase Generation Z's interest in investing. Thus, the conclusion of this research is digital marketing communication strategies and the implementation of an application-based investment system have a strong influence on Generation Z's interest in investing. An increase in these two strategies can significantly increase Generation Z's interest in investing.

In carrying out innovation, all human resources in startup companies need the same market orientation to unite the perception of startup company management to jointly understand customer desires and create original values in the new products produced. This research is the first to discuss the impact of innovation on investment interest in startup companies through business networks, especially startup companies in Indonesia. Therefore, this research is very suitable to be carried out as an effort to develop knowledge, especially regarding the impact of product innovation on investor interest in startup companies in Indonesia. Of course, this point is novel, so this research is worth doing. The population in this study was 2419 with a sample size of 300 respondents. The technique used is SEM PLS. The results of the study show that product innovation has a significant and influential effect on investment interest in startup companies in Indonesia. Product innovation has a significant impact on business networks in startup companies in Indonesia. Business networks have a significant influence on investment interest in startup companies in Indonesia. Product innovation has a significant influence on investment interest in startup companies in Indonesia through business networks as an intervening variable. [ABSTRACT FROM AUTHOR]

Investment decisions are choices chosen to generate future profits by combining various strategies, opportunities and challenges. The aim of this research is to examine the influence of financial culture, income level through investment interest as variables affecting the investment decisions of residents of the city of Surakarta. The population concerned by this research is made up of residents of the city of Surakarta who wish to invest. The sampling method used structural equation modeling (SEM) analysis to obtain a research sample of 105 samples. The analysis and hypothesis testing method uses the SmartPLS 3.0 analysis method. This research uses quantitative, cross-sectional data with a Likert scale. Research results show that financial literacy influences investment decisions, income level influences investment decisions, financial literacy influences investment interest, income level influences investment interest, investment interest influences investment decisions, financial literacy influences investment decisions by investment interest, income level influences investment decisions by investment interest. [ABSTRACT FROM AUTHOR]

Abstract This study aims to explain the effect of financial literacy related to company fundamentals on stock investment decisions with investment interest as an intervening variable. Using a quantitative approach, data were obtained from questionnaires distributed to 31 members of the Youth Capital Market Community (YCMC) for the 2023 period through the saturated sample technique. The analysis was carried out with the PLS-based SEM method using Smart PLS 4.0. The results show that financial literacy has a significant effect on stock investment decisions and investment interest. Investment interest also mediates the effect of financial literacy on stock investment decisions. Abstrak Penelitian ini bertujuan menjelaskan pengaruh literasi keuangan terkait faktor fundamental perusahaan terhadap keputusan investasi saham dengan minat investasi sebagai variabel intervening. Menggunakan pendekatan kuantitatif, data diperoleh dari kuesioner yang disebarkan kepada 31 anggota Youth Capital Market Community (YCMC) periode 2023 melalui teknik sampel jenuh. Analisis dilakukan dengan metode SEM berbasis PLS menggunakan Smart PLS 4.0. Hasil menunjukkan literasi keuangan berpengaruh signifikan terhadap keputusan investasi saham dan minat investasi. Minat investasi juga memediasi pengaruh literasi keuangan terhadap keputusan investasi saham.

Abstract This study aims to analyze the influence of investment knowledge, investment benefits, and investment motivation on Gen Z's interest in capital market investments. Data were collected from 223 Gen Z students selected using purposive sampling. Data analysis was performed using multiple linear regression to test the hypotheses. The variables examined include: Investment Knowledge: Measured by 7 statements assessing the respondents' understanding of investments, investment Benefits: Measured by 6 statements evaluating the respondents' perceptions of the benefits gained from investments, investment Motivation: Measured by 8 statements evaluating the respondents' drives and reasons for investing. investment Interest: Measured by 9 statements assessing the extent of respondents' interest in investing in the capital market. The analysis results indicate that both investment knowledge and investment motivation have a positive and significant effect on Gen Z's interest in capital market investments, with p-values < 0.05 and regression coefficients of 0.364 and 0.515, respectively. In contrast, investment benefits did not show a significant effect on investment interest, with a p-value of 0.819. These findings suggest that investment knowledge and motivation are key factors in enhancing Gen Z's interest in capital market investments, while investment benefits do not play a significant role. This study has theoretical and practical implications for understanding the factors influencing investment interest and can be used to design more effective investment education strategies for Gen Z. Abstrak Penelitian ini bertujuan untuk menganalisis pengaruh pengetahuan investasi, manfaat investasi, dan motivasi investasi terhadap minat investasi pasar modal pada Gen Z. Data dikumpulkan dari 223 mahasiswa Gen Z yang dipilih menggunakan metode purposive sampling. Analisis data dilakukan dengan metode regresi linear berganda untuk menguji hipotesis. Variabel yang diuji meliputi: Pengetahuan Investasi: Diukur dengan 7 pernyataan yang mengkaji sejauh mana pemahaman responden mengenai investasi, Manfaat Investasi: Diukur dengan 6 pernyataan yang menilai persepsi responden mengenai keuntungan yang diperoleh dari investasi, Motivasi Investasi: Diukur dengan 8 pernyataan yang menilai dorongan dan alasan responden untuk berinvestasi, Minat Investasi: Diukur dengan 9 pernyataan yang mengukur seberapa besar minat responden untuk berinvestasi di pasar modal. Hasil analisis menunjukkan bahwa pengetahuan investasi dan motivasi investasi memiliki pengaruh positif dan signifikan terhadap minat investasi Gen Z dengan nilai p < 0,05 dan koefisien regresi masing-masing sebesar 0,364 dan 0,515. Sebaliknya, manfaat investasi tidak menunjukkan pengaruh signifikan terhadap minat investasi, dengan nilai p = 0,819. Temuan ini menunjukkan bahwa pengetahuan dan motivasi investasi adalah faktor kunci dalam meningkatkan minat investasi Gen Z di pasar modal, sementara manfaat investasi tidak berperan signifikan dalam hal ini. Penelitian ini memiliki implikasi teoritis dan praktis dalam memahami faktor-faktor yang mempengaruhi minat investasi, serta dapat digunakan untuk merancang strategi edukasi investasi yang lebih efektif untuk Gen Z.

This research aims to determine the partial effect of investment knowledge, investment motivation, and technological advancements on investment interest among Generation Z in the capital market. The population of this study consists of 200 students majoring in Accounting at the Faculty of Economics and Business, Swadaya Gunung Jati University, Cirebon, from the 2020 cohort. The sampling technique used purposive sampling, with a sample size of 67 students. Data collection in this research was conducted using questionnaires. Data analysis techniques involved descriptive statistical analysis and SPSS. The results of this study indicate that (1) investment knowledge influences investment interest, (2) investment motivation influences investment interest, and (3) technological advancements influence investment interest among Generation Z.

Copyright of Jurnal Ilmu Manajemen Terapan (JIMT). is the property of Dinasti Publisher and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Application Business & Management / Jurnal Aplikasi Bisnis dan Manajemen is the property of IPB University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Riwayat: Educational Journal of History & Humanities is the property of Riwayat: Educational Journal of History & Humanities and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research investigates the impact of religiosity on the investment intentions of Muslim students in Sharia banks. The study focuses on the unique context of Indonesia, which has a significant Muslim population. The research employs a quantitative descriptive approach, using simple linear regression analysis to explore the relationship between religiosity and investment interest. The sample consists of Muslim students from various universities in Yogyakarta. The study utilizes primary data collected through a questionnaire and secondary data from previous research and relevant sources. The variables under investigation are religiosity (independent variable) and investment interest (dependent variable). The findings reveal that religiosity does not significantly influence the investment interest of students in Islamic banks. The coefficient of determination (R2) indicates that only 1.7% of the variation in students' investment interest can be attributed to religiosity, suggesting the presence of other influential factors. This research contributes to the understanding of the role of religiosity in financial decision-making among Muslim students in the Indonesian context. [ABSTRACT FROM AUTHOR]

This article examines the relationship between investment motivation, knowledge, risk perception, and decisions among university students in the capital market. The study found that investment motivation and knowledge have a negative impact on investment decisions, while investment interest has a positive impact. Risk perception does not significantly affect investment interest, but investment interest acts as a mediator between the independent and dependent variables. The researchers suggest that investment education is important to increase the number of new investors, particularly among students. The Indonesian Stock Exchange has implemented programs and investment galleries in universities to promote investment education and encourage student investment. [Extracted from the article]

This study aims to determine whether there is an influence on the level of capital market knowledge, mindset, and minimal capital with investment risk as a moderating variable. This research was conducted at the Faculty of Economics, Bangka Belitung University. The method in the research used is the quantitative method from the primary data. Data collection using the questionnaire method is in the form of respondents' answer results expressed in the form of numbers from questionnaires measured using the Likert scale. The results in this study are that the level of knowledge of the capital market, mindset and minimal capital have a significant positive effect on students' investment interests, while the relationship between investment risks is able to moderate the variable level of knowledge and minimal capital to the influence of student investment interests. The relationship of investment risk is not able to moderate the mindset variables to the influence of students' investment interests. In this study, it was shown that there were 55,7% influence and the remaining 44,3% influenced by other factors. [ABSTRACT FROM AUTHOR]

Introduction: This study aims to empirically examine the effect of Investment knowledge, minimum investment capital, and motivation on Investment Interest (Study on students of the Faculty of Economics, University of Semarang). Methods: This research is a quantitative study processed using SPSS version 23 and the sample in this study were 125 respondents. The dependent variable used in this study is investment interest, and the independent variables used are investment knowledge, minimum investment capital, and motivation. Results: The results of this study indicate that investment knowledge, minimum investment capital, and motivation have a positive and significant effect on investment interest. Conclusion and suggestion: The researcher provides advice to prospective investors to increase their knowledge of the basics of investment which can be taken into consideration when starting an investment. Capital is also a consideration for investing, with a minimum investment capital policy, one can invest with the minimum possible capital. Increasing motivation from yourself and others is also important to foster investment interest. [ABSTRACT FROM AUTHOR]

Along with the development of the capital market in Indonesia also continues to grow. An increase in the number of investors in the capital market marks this. Generation Z and millennials dominate the growth of investors in the capital market. However, the education history of investors with the last bachelor's degree is less than those with an equivalent high school education history. This study aims to determine what factors will increase student investment interest in the capital market. This study uses quantitative methods with an associate's approach. This study hypothesizes that there is an influence between financial self-efficacy on investment interest and financial literacy, there is an influence of financial literacy on investment interest. Financial literacy can mediate financial self-efficacy with investment interest.

This study aims to determine the effect of investment motivation, minimal investment capital, and investment knowledge on investment interests. This research was conducted on students who participated in the Yuk Nabung Saham 2017 competition registered in the campus Investment Gallery at four universities in East Java. This study used a mixed methods approach with sequential explanatory design. From the results of purposive sampling, a sample of 396 students was obtained and 128 questionnaires were returned and could be processed. Data analysis techniques used in this study were multiple linear regression analysis techniques and interviews. Based on the results of mixed methods analysis, the variables of investment motivation and investment knowledge had positive effect on student investment interest. Abstrak Penelitian ini bertujuan untuk mengetahui pengaruh motivasi investasi, modal investasi minimal, dan pengetahuan investasi terhadap minat investasi. Penelitian ini dilakukan pada mahasiswa yang mengikuti kompetisi Yuk Nabung Saham 2017 yang terdaftar di Galeri Investasi kampus di empat perguruan tinggi di Jawa Timur. Penelitian ini menggunakan pendekatan mixed methods dengan desain sequential explanatory Dari hasil purposive sampling diperoleh sampel sebesar 396 mahasiswa dan sebesar 128 kuesioner yang kembali dan dapat diolah. Teknik analisis data yang digunakan dalam penelitian ini adalah teknik analisis regresi linear berganda dan wawancara. Berdasarkan hasil analisa mixed methods, variabel motivasi investasi dan pengetahuan investasi berpengaruh positif terhadap minat investasi mahasiswa.

Copyright of Railway Investigation & Surveying is the property of Railway Investigation & Surveying Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Research aims: This study aims to determine the effect of herding behavior, accounting information, and information technology on investment decisions through investment interest during the COVID-19 pandemic. Design/Methodology/Approach: Using the purposive sampling method, this study used a sample of investors who had just invested in the Indonesian capital market during the COVID-19 pandemic. This quantitative study employed primary data based on questionnaires distributed to respondents via the internet. Respondents in this study were 241 investors. Hypothesis testing in this study utilized SEM-PLS analysis through the SMART PLS 3.0 application. Research findings: The results showed that herding behavior did not affect investment decisions through investment interest in the capital market during the COVID-19 pandemic. Meanwhile, accounting information and technology information influenced investment decisions through investment interest in the capital market during the COVID-19 pandemic. Theoretical contribution/Originality: The study results contribute to the literature (body of knowledge), especially as additional discussion toward theory and literature related to herding behavior, accounting information, and information technology on investors decisions through investment interest to invest in the capital market, which is still very limited.

This research is a continuation of research year 1 with the title “Lecturer Financial Asset Investment Interest in Surabaya”. In the first year of research, the research was limited to investment interest as an endogenous latent variable. 3 exogenous latent variables were consisting of financial literacy, attitude, and motivation. There is also 1 moderating variable, namely family. The purpose of this study was to determine the behavior of lecturers in Surabaya in making investment decisions. 3 factors as exogenous variables are investment interest, risk perception, and risk tolerance. These factors affect investment decisions as endogenous variables. The analysis tool used is SEM PLS and with 56 participant’s data. The results show that investment interest greatly influences investment decisions. while the other two variables, risk perception, and risk tolerance do not affect investment decisions. The dependent variable or as an endogenous variable in this study is investment decisions and 3 exogenous latent variables, namely investment interest, risk perception, and risk tolerance.

This research on analyzing the determinants of student interest in investing in the Islamic capital market aims to analyze the effect of religiosity, knowledge, benefits and minimum investment capital on student interest in investing in the Islamic capital market. This type of research is a quantitative research that aims to analyze the determinants of student interest in investing their money in the Islamic capital market. Regarding the independent variables used, namely religiosity, knowledge, benefits and minimum investment capital, while the dependent variable used is interest in investing in the Islamic capital market. The population of this study were students of the Islamic High School (STAI) Jam'iyah Mahmudiyah Tanjung Pura-Langkat, Indonesia. Meanwhile, the determination of the number of samples was carried out using the Slovin formula and then obtained a sample of 100 students. The data analysis technique used is multiple linear regression analysis. Based on the results of the analysis that has been done, it can be concluded that partially religiosity and benefits have no significant effect on interest in investing in the Islamic capital market. Meanwhile, knowledge and minimum investment capital partially have a positive and significant effect on interest in investing in the Islamic capital market. Then simultaneously religiosity, knowledge, benefits and minimum investment capital have a significant effect on interest in investing in the Islamic capital market. Based on the results of the analysis that has been done, it can be concluded that partially religiosity and benefits have no significant effect on interest in investing in the Islamic capital market. Meanwhile, knowledge and minimum investment capital partially have a positive and significant effect on interest in investing in the Islamic capital market. Then simultaneously religiosity, knowledge, benefits and minimum investment capital have a significant effect on interest in investing in the Islamic capital market. Based on the results of the analysis that has been done, it can be concluded that partially religiosity and benefits have no significant effect on interest in investing in the Islamic capital market. Meanwhile, knowledge and minimum investment capital partially have a positive and significant effect on interest in investing in the Islamic capital market. Then simultaneously religiosity, knowledge, benefits and minimum investment capital have a significant effect on interest in investing in the Islamic capital market. Meanwhile, knowledge and minimum investment capital partially have a positive and significant effect on interest in investing in the Islamic capital market. Then simultaneously religiosity, knowledge, benefits and minimum investment capital have a significant effect on interest in investing in the Islamic capital market. Meanwhile, knowledge and minimum investment capital partially have a positive and significant effect on interest in investing in the Islamic capital market. Then simultaneously religiosity, knowledge, benefits and minimum investment capital have a significant effect on interest in investing in the Islamic capital market. [ABSTRACT FROM AUTHOR]

In this paper we examine how accounting conservatism affects the efficiency of debt contracting. We develop the statistical and informational properties of accounting reports under varying degrees of conditional and unconditional accounting conservatism, consistent with Basu's [1997] description of differential verifiability standards. Optimal debt covenants and interest rates on debt are derived from a natural tension between debt holders and equity claimants. We show how optimal covenants vary with the degree of conservatism and derive an efficiency metric that depends on the degree of conservatism. We find that accounting conservatism actually decreases the efficiency of debt contracts, contrary to the suggestions of Watts [2003] and contrary to the hypothesis in numerous empirical studies. [ABSTRACT FROM AUTHOR]

Nonlinear drift models of the short rate are estimated using data on the short end of the term structure, where the cross-sectional relation is obtained by an analytical approximation. The findings reveal that (i) nonlinear physical drift is not implied unless it is strongly affected by cross-sectional dimensions of the data; (ii) nonlinear risk-neutral drift that allows for fast mean reversion for high rates is desirable to explain and predict observed patterns of yield spreads; and (iii) for higher frequency data from which transitory shocks are removed, (ii) still remains valid although the nonlinearity is somewhat reduced. [ABSTRACT FROM AUTHOR]

This article uses a unique option data set to provide detailed descriptive statistics on the purchased and written open interest and open buy and sell volume of several classes of investors. We also show that volatility trading through straddles and strangles accounts for a small fraction of option trading volume and presents evidence that a large percentage of call writing is part of covered call positions. Finally, we find that during the stock market bubble or the late 1990s and early 2000 the least sophisticated investors in the data set substantially increased their purchases of calls on growth but not value stocks. [ABSTRACT FROM AUTHOR]

We study endogenous liquidity trading in a market with long-lived asymmetric information. We distinguish between public information, tractable information that can be acquired, and intractable information that cannot be acquired. Besides information asymmetry and noise, the adverse-selection spread depends on the diffusion of intractable information and on the interest rate. With endogenous liquidity trading, efficiency is lower than that implied by noise-trading models. Liquidity traders benefit from the information released through the insider's trades in spite of their monetary losses. We study factors that affect the insider's information acquisition decision, including the amount of intractable information, observability, and information acquisition costs. [ABSTRACT FROM AUTHOR]

This paper reviews the concept of constant-interest-rate inflation forecast (CIR) targeting. It stresses the time-inconsistent nature of CIR targeting and provides a new method for constructing CIR forecasts consistently in the context of models with forward-looking variables. A dynamic New Keynesian model with forward-looking price setting is used as an illustration, suggesting that the main reason for choosing a relatively long forecast targeting horizon lies in the monetary authorities' objective to smooth interest rate movements, as greater nominal and real stabilization is achieved at a relatively short inflation forecast targeting horizon. [ABSTRACT FROM AUTHOR]

Using the bivariate GARCH methodology, this study examines bank stock sensitivities to market, interest rate, and exchange rate, and investigates the spillover effects of interest rate volatility and unsystematic risk among the banking sectors of the United States and Japan, and the United States and Germany. Empirical results show that return-generating processes of the banking sectors considered can be properly described by GARCH models. Within this framework, banks are found to be highly sensitive to macroeconomic shocks such as the exchange rate and interest rate, with the latter exerting its impact at the volatility level. Moreover, stock volatilities in the banking sectors of the three countries are found to be highly interdependent. The direction and magnitude of the effects from interest rate volatility and unsystematic shocks in one country on other countries are sensitive to the origin of the shock, with the United States playing a leadership role. The findings have serious implications on international financial stability, international portfolio diversification, and policy formulation by central banks and fiscal authorities. [ABSTRACT FROM AUTHOR]

This study examines call option values implicit in U.S. corporate bonds from 1973 to 1994. The average call option value is 2.25% of par. Over time, call values remain close to zero until one year before the first call date, reach a maximum at the beginning of the callable period, and slowly decrease thereafter. The determinants of call values are examined. The results show that bonds of firms that have called aggressively in the past have larger call values. Additionally, lower interest rates, smaller slopes of the yield curve, and higher interest rate volatility lead to larger call values. The results also show that call values increase with time to maturity in the callable period but decrease with time to maturity in the call protection period. Lower rated, higher coupon bonds have larger call values. There is no evidence that the length of the call protection period affects call values. [ABSTRACT FROM AUTHOR]

This paper values American options on foreign assets in a stochastic interest rate economy using a two-point Geske and Johnson (1984) technique. The method requires the valuation of just two options: a European option and a twice-exercisable option. I first derive the risk-neutral distributions of asset prices under two forward risk-adjusted measures. Closed-form solutions for European options on foreign assets are then obtained by applying these risk-neutral distributions. This article also provides analytic solutions for pricing twice-exercisable options that are at most two-dimensional even though the valuation problem involves four risk factors at two exercise dates. I report the results of numerical evaluations of American option values using my method and show how they vary with the interest rate parameters. I also verify the accuracy of the proposed method by comparing with the benchmark values obtained from the least-square method of Longstaff and Schwartz (2001). [ABSTRACT FROM AUTHOR]

Stiglitz and Weiss (1981) show that firms considering risky projects have higher reservation interest rates and hence it is optimal for a bank to reduce loan supply. In this note we show that when the risk involved in an investment will be resolved in the future, investors with riskier projects have a greater return from waiting. More risky projects have lower reservation interest rates and hence there is no motive for banks to ration credit demand. [ABSTRACT FROM AUTHOR]

In the Tract on Monetary Reform, Keynes (1923) conjectured that deviations from covered interest rate parity would not be arbitraged unless a profit of at least a half of one percent on an annualized basis was available, and that larger deviations would still be moderately persistent because of loss than perfect, elasticity of supply of arbitrage funds. This two-part conjecture was given further emphasis by other writers on this period, notably Einzig (1937). We apply nonlinear econometric techniques to a previously unexploited weekly data base for the 1920s London and New York markets and find strong support for the conjecture. [ABSTRACT FROM AUTHOR]

One of the most puzzling features of currency prices is the forward premium anomaly: the tendency for high interest rate currencies to appreciate. We characterize the anomaly in the context of affine models of the term structure of interest rates. In affine models, the anomaly requires either that state variables have asymmetric effects on state prices in different currencies or that nominal interest rates take on negative values with positive probability. We find the quantitative properties of either alternative to have important shortcomings. [ABSTRACT FROM AUTHOR]

This article presents a comment on the paper "Low Inflation: The Behavior of Financial Markets and Institutions." The author offers additional information on the impact that low inflation can have on the economy. The author distinguishes the differences between low inflation and stable inflation and examines the financial effects of stable inflation. The author discusses the importance of establishing measures, such as price level targeting, to maintain stable inflation and explains how financial markets benefit from this environment.

This study examines the correspondence of the Divisia and currency equivalent (CE) measures of money to the optimal aggregate under contemporaneous taxation of interest income. We show that although this behavior can violate a condition regarding monetary aggregation under uncertainty and risk aversion, several important results continue to hold. The conventional Divisia index exactly tracks the theoretically determined aggregate. With strong separability of currency in the aggregator function, the currency equivalent measure emerges from this framework. Even under contemporaneous taxation of interest income, the theoretically correct Divisia and CE measures are based upon pretax interest rates. [ABSTRACT FROM AUTHOR]

We model the time-series relation between price and intrinsic value as a cointegrated system, so that price and value are long-term convergent. In this framework, we compare the performance of alternative estimates of intrinsic value for the Dow 30 stocks. During 1963-1996, traditional market multiples (e.g., B/P, E/P, and D/P ratios) have little predictive power. However, a V/P ratio, where V is based on a residual income valuation model, has statistically reliable predictive power. Further analysis shows time-varying interest rates and analyst forecasts are important to the success of V. Alternative forecast horizons and risk premia are less important. [ABSTRACT FROM AUTHOR]

Copyright of JDM: Jurnal Dinamika Manajemen is the property of Universitas Negeri Semarang, Fakultas Ekonomi, Jurusan Manajemen and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article discusses the confusion among the accounting and business sectors over the interpretation of high market rates of interest. According to the Fisher effect, a theory on interest rates developed by Irving Fisher in the 1930s, market or nominal interest rates should equal the sum of the real interest rate and a premium equal to the expected rate of inflation. The high interest rates observed during the 1980s resulted from the failure to take into account the effects of income taxes when applying the Fisher theory.

The short-term rate of interest is fundamental to much of theoretical and empirical finance, yet no consensus has emerged on the dynamics of its volatility. We show that models which parameterize volatility only as a function of interest rate levels tend to over emphasize the sensitivity of volatility to levels and fail to model adequately the serial correlation in conditional variances. On the other hand, serial correlation based models like GARCH models fail to capture adequately the relationship between interest rate levels and volatility. We introduce and test a new class of models for the dynamics of short-term interest rate volatility, which allows volatility to depend on both interest rate levels and information shocks. Two important conclusions emerge. First, the sensitivity of interest rate volatility to interest rate levels has been overstated in the literature. While this relationship is important, adequately modeling volatility as a function of unexpected information shocks is also important. Second, we conclude that the volatility processes in many existing theoretical models of interest rates are misspecified, and suggest new paths toward improving the theory. [ABSTRACT FROM AUTHOR]

Several studies used a multi-factor model to examine the interest rate sensitivity of a financial intermediary's common stock. The model was re-specified in an attempt to estimate each factor's influence. This note shows that the re-specification results in biased estimators. Hypothesis tests are flawed by failure to acknowledge the bias; this casts doubt upon the reported findings. [ABSTRACT FROM AUTHOR]

Miller has analyzed capital structure in the presence of both corporate and personal taxes. The present work investigates the effect of inflation on both interest rates and equity returns when the Miller equilibrium condition is employed in a loanable funds model. Both an interest rate effect and a redistribution effect are derived. The interest rate effect forces the responsiveness of the interest rate to the inflation rate to be below that hypothesized by Darby. However, the redistribution effect may change this responsiveness in either direction. [ABSTRACT FROM AUTHOR]

This paper has developed a model of hank margins or spreads in which tile bank is viewed as a risk-averse dealer. It was demonstrated that an interest spread or margin would always exist, and that this was the result of transactions uncertainty faced by the bank. Moreover, it was shown that this pure spread depended on four factors: the degree of managerial risk aversion; the size of transactions undertaken by the bank; bank market structure; and the variance of interest rates. The model implied that liability and asset structures had to he analyzed together since they were directly interrelated through transactions uncertainty. It was shown that because of this transactions uncertainty, hedging behavior was perfectly rational within an expected utility maximizing framework. Extending the model from a structure with one kind of loan and deposit to loans and deposits with many maturities should lead to further interesting insights into margin determination especially as "portfolio" effects may become apparent. In the empirical section, tests were undertaken using data from a sample of U.S. commercial banks. It was shown, given certain reasonable assumptions, that tho pure spread could be empirically identified. It was found that this spread was positively and significantly related to the variance in the tale on Sends as predicted by the theoretical model. It was also inferred that the asset (liability) maturity, or duration, of major concern to this group of banks was one year. When the sample was split into two subgroups (measured by asset size), it was found that the smaller banks had an average transactions spread of approximately one-third of one percent more than the larger banks. While this difference was small, it appeared to be statistically significant. Statistical tests were then conducted to see which factors explained this difference. It was tentatively concluded that the difference was largely due to market structure factors which allowed the... [ABSTRACT FROM AUTHOR]

The article presents a comment on a quantitative yield curve model for estimating the term structure of interest rates. Particular attention is given to empirical research and the purpose of this article is to further study the methodology advanced by Echols and Elliot (EE). The EE derivation is reviewed. An empirical test of the EE model on more recent data is presented, as well as tests of a modified version. The results are analyzed and various issues about model specification are discussed.