Applying the Market Model to Long-Term Corporate Bonds

1980 ◽  
Vol 15 (5) ◽  
pp. 1063 ◽  
Author(s):  
Gordon J. Alexander
Keyword(s):  
Corporate Bonds ◽  
Market Model

Corporate Added Value in the Context of Web 2.0

2010 ◽  
pp. 91-100
Author(s):  
Oliver Bohl ◽  
Shakib Manouchehri
Keyword(s):  
Web 2.0 ◽  
Capital Market ◽  
Business Models ◽  
Added Value ◽  
Market Model ◽  
Negative Effects ◽  
Activity Model ◽  
Corporate Actions ◽  
The Relationship

Firms have faced and explored the increased use of Web 2.0. Driven mainly by private users, Web 2.0 may also have significant implications for corporate actions and business models. By systematically scanning and verifying possible positive and negative effects on the value of their creation, firms might be able to formulate and establish well-grounded strategies for corporate Web 2.0 applications and services. To establish such a process in an effective and adequate manner, it is necessary to analyze the relationship between Web 2.0 and corporate added value. This chapter contributes to these efforts by demonstrating that the corporate use of Web 2.0 applications is reinforced by fundamental and long-term business trends. The discussion pertains to the possibilities emerging from the application of Web 2.0 paradigms to business models; the market model, the activity model, and the capital market model. The potentials, risks, mainsprings, and restrictions associated with the corporate use of Web 2.0 are evaluated.

scholarly journals Efficient Firm Dynamics in a Frictional Labor Market

2015 ◽  
Vol 105 (10) ◽  
pp. 3030-3060 ◽  
Author(s):  
Leo Kaas ◽  
Philipp Kircher
Keyword(s):  
Labor Market ◽  
Heterogeneous Firms ◽  
Firm Dynamics ◽  
Market Model ◽  
Job Flows ◽  
Bargaining Models ◽  
The Business Cycle ◽  
Market Variables ◽  
Aggregate Dynamics

We develop and analyze a labor market model in which heterogeneous firms operate under decreasing returns and compete for labor by posting long-term contracts. Firms achieve faster growth by offering higher lifetime wages, which allows them to fill vacancies with higher probability, consistent with recent empirical findings. The model also captures several other regularities about firm size, job flows, and pay, and generates sluggish aggregate dynamics of labor market variables. In contrast to existing bargaining models with large firms, efficiency obtains and the model allows a tractable characterization over the business cycle. (JEL E24, J64, L11)

scholarly journals Predicting Growth Components – Unemployment, Housing Prices and Consumption Using Both Government and Corporate Yield Curves

2018 ◽  
Vol 10 (6) ◽  
pp. 180
Author(s):  
Dan Saar ◽  
Yossi Yagil
Keyword(s):  
Unemployment Rate ◽  
Positive Relationship ◽  
Housing Prices ◽  
Corporate Bonds ◽  
Short Term ◽  
Yield Curves ◽  
Government Bonds ◽  
Personal Consumption ◽  
Bond Spreads

In this study, we predict changes in specific segments of economic growth including the unemployment rate, the housing prices and changes in personal consumption by employing corporate and government bonds. Our hypothesis is that the use of yield curves of corporate bonds will improve the predictions over previous models that used only the yield curves of government bonds. Our results support that contention. We find that corporate bonds’ spreads actually help predicting the changes in both the unemployment rate and housing prices. We also find a significant positive relationship between bond spreads and future changes in personal consumption levels, but the results are weaker than in the other two segments. One additional finding worth noting is that government bonds are better predictors for the long-term, whereas corporate bonds are better indicators for the short-term.

A market model with medium/long-term effects due to an insider

2013 ◽  
Vol 13 (3) ◽  
pp. 421-437 ◽  
Author(s):  
Hiroaki Hata ◽  
Arturo Kohatsu-Higa
Keyword(s):  
Market Model ◽  
Long Term Effects

scholarly journals Quantitative Monetary Easing and Risk in Financial Asset Markets

2006 ◽  
Vol 6 (1) ◽  
pp. 1-54 ◽  
Author(s):  
Takeshi Kimura ◽  
David H. Small
Keyword(s):  
Interest Rates ◽  
Large Scale ◽  
Corporate Bonds ◽  
Asset Markets ◽  
Low Grade ◽  
Short Term ◽  
Government Bonds ◽  
Risk Premiums ◽  
Portfolio Rebalancing

In this paper, we empirically examine the portfolio-rebalancing effects stemming from the policy of “quantitative monetary easing” recently undertaken by the Bank of Japan when the nominal short-term interest rate was virtually at zero. Portfolio-rebalancing effects resulting from the open market purchase of long-term government bonds under this policy have been statistically significant. Our results also show that the portfolio-rebalancing effects were beneficial in that they reduced risk premiums on assets with counter-cyclical returns, such as government and high-grade corporate bonds. But, they may have generated the adverse effects of increasing risk premiums on assets with pro-cyclical returns, such as equities and low-grade corporate bonds. These results are consistent with a CAPM framework in which business-cycle risk importantly affects risk premiums. Our estimates capture only some of the effects of quantitative easing and thus do not imply that the complete set of effects were adverse on net for Japan’s economy. However, our analysis counsels caution in accepting the view that, ceteris paribus, a massive large-scale purchase of long-term government bonds by a central bank provides unambiguously positive net benefits to financial markets at zero short-term interest rates.

scholarly journals Marketing accountability e excelência na escola pública portuguesa: A construção da imagem social da escola através da performatividade académica

2018 ◽  
Vol 26 ◽  
pp. 134
Author(s):  
Leonor Lima Torres ◽  
José Augusto Palhares ◽  
Almerindo Janela Afonso
Keyword(s):  
School Choice ◽  
Market Model ◽  
Academic Excellence ◽  
The Public ◽  
Good School ◽  
Accountability In Education ◽  
School Marketing ◽  
Marketing Accountability ◽  
State Schools

The authors seek to establish a relationship between the results of standardised tests, the academic excellence and the corresponding form of accountability. This relationship adopts the idea that standardised tests and academic excellence sustain not only a model of managerial accountability, but a (quasi) market model of accountability in education as well, providing school marketing schemes. This study is supported by a long-term fieldwork developed in several Portuguese state schools, where we analysed main documents, observed the public rituals of academic distinction, interviewed the principals and teachers and surveyed students. The results show us that these public rituals are part of a marketing strategy that helps to build a good school image, essential to induce the school choice by families and to reinforce the decisions of the principal’s leadership. 

scholarly journals Corporate bonds as a way of financing companies in the Republic of Serbia

Ekonomika ◽  
2021 ◽  
Vol 67 (4) ◽  
pp. 91-102
Author(s):  
Ljiljana Rajnović ◽  
Jonel Subić
Keyword(s):  
Stock Exchange ◽  
Corporate Bonds ◽  
Good Alternative ◽  
Bond Market ◽  
Corporate Bond ◽  
Corporate Bond Market ◽  
Sustainable Operation ◽  
Bond Issuers ◽  
The Republic

The security of sources of financing is of undoubted importance for the continuous and sustainable operation of economic entities, which is a long-term interest of persons interested in the operation of economic entities. In the structure of possible sources of financing of economic entities, corporate bonds are of great importance everywhere in the world, and their application in the Republic of Serbia could bring a great contribution to the domestic economy. Corporate bonds are debt obligations issued by corporation to debt refinancing, improvements, expansions or acquisitions. The bondholders are the issuer's creditors and for the money invested in the company, they expect earnings. The main goal of this paper is to consider the conditions and importance of issuing corporate bonds by medium and large companies in Serbia and the advantage over other sources of financing. Based on the obtained research results, it can be concluded that the issuance of bonds is a good alternative to other sources of financing the company's operations, but the corporate bond market in Serbia is in the development phase. Bond issuers with listing on the regulated market of the Belgrade Stock Exchange include, in addition to the state, only certain commercial banks and international financial organizations.

scholarly journals International Real Estate Review

2003 ◽  
Vol 6 (1) ◽  
pp. 1-21
Author(s):  
Ling T. He ◽  
◽  
James. R. Webb ◽  
Neil Myer ◽  
◽  
...  
Keyword(s):  
Interest Rate ◽  
Explanatory Power ◽  
Corporate Bonds ◽  
High Yield ◽  
High Grade ◽  
Government Bonds ◽  
Holding Period ◽  
The Difference ◽  
Time Specific

In order to identify effective interest rate proxies for equity and mortgage REITs, this study analyzes seven different interest rate proxies that have been widely used in the REIT literature. They are the monthly holding period returns on long-term U.S. government bonds and high-grade corporate bonds, the percentage changes in yields for long-term U.S. government bonds and high-yield (Baa) corporate bonds, the difference between returns on long-term U.S. government bonds and T-bill rates, the spread between yields on high-yield (Baa) corporate bonds and returns on long-term U.S. government bonds, and the spread between returns on high-grade corporate bonds and returns on long-term U.S. government bonds. The overall OLS results suggest that mortgage REITs are sensitive to all proxies, while equity REITs are significantly affected by only changes in yields on long-term U.S. government bonds and high-yield corporate bonds. The time variation paths for sensitivities indicate that all interest rate sensitivities are time specific. Overall, the changes in yields on high-yield corporate bonds (Baa) has the strongest explanatory power for returns of equity and mortgage REITs for most of the 27-year sample period (1972 through 1998).

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