due to the fact that assets are recorded at their historical value and they may include unrealized gains (losses), managers may manipulate earnings through the sale of these assets and provide financial information which is not accurate and reliable. the aim of this study is to investigate the relationship between income from asset sales, earnings change and leverage of companies listed on tehr...

We establish several new findings on the relation between open interest in commodity markets and asset returns. High commodity market activity, as measured by high open-interest growth, predicts high commodity returns and low bond returns. Openinterest growth is a more powerful and robust predictor of commodity returns than other known predictors such as the short rate, the yield spread, the ba...

A perpetual youth overlapping generations model is presented in which the presence of financial frictions can create the crowd-in effect of asset bubbles that promotes capital accumulation. The existence of asset bubbles increases the equilibrium interest rate. Although the increased interest rate excludes less productive agents from production activity, these agents benefit from the liquidity ...

The relation between a firm’s stock return and its intangible investment ratio and asset tangibility is derived under the intangible-asset-augemnted (IAA) q-theory framework. Using firm level data and the Generalized Method of Moments (GMM), we estimate the model and three main results emerge. First, the IAA q-theory captures the value premium and the relation between R&D intensity and stock re...

according to the classical economists such as ricardo, labour was considered as the only factor of production; while capital, realized in machinery, tools and the like was identified as the accumulated labour and that inferior lands can be exploited due to the use of labour on them. but, in the long run development of capitalism in the western countries, this idea, i.e. labour as the base of pr...

Financial assets are generally chosen for encapsulating wealth effects in empirical work on aggregate consumption, but there is growing interest in tangible wealth, notably housing, as a potential determinant. We estimate consumption functions for the G-5 on a Pooled Mean Group panel basis, which encapsulate roles for both tangible and financial wealth. Results suggest that tangible wealth play...

Search and matching frictions on financial and labor markets are introduced in a dynamic general equilibrium framework, affecting the dynamics of capital and employment adjustments. While prices are fully flexible and determined by money supply, money demand arises endogenously from financial market matching frictions that prevent some deposits from being channeled into productive investment. T...