This paper compares model-based and reduced-form forecasts of financial volatility when high-frequency return data are available. We derived exact formulas for the forecast errors and analyzed the contribution of the “wrong” data modeling and errors in forecast inputs. The comparison is made for “feasible” forecasts, i.e. we assumed that the true data generating process, latent states and param...

Due to the immateriality of financial services and products they lend themselves handsomely for sale on the WWW. This may be one of the main reasons why the financial services industry has gained a cutting edge in the net with respect to other industries. Thus, at the beginning of the third millennium, the market for financial services is undergoing a fundamental shift since it is questionable ...

Studying the sustainability of the financial performance of Chinese listed companies is an assessment of their future development capability and a comprehensive evaluation of all aspects of the companies over the past period of time. Based on the financial data of manufacturing industry of Chinese listed companies from 2008 to 2015, this paper uses the AHP (Analytic hierarchy process) method to...

Gringotts Wizarding Bank is well known as the only financial institution in all of the Wizarding UK as documented in the works recounting the heroics of Harry Potter. The concentration of power and wealth in this single bank needs to be weighed against the financial stability of the entire Wizarding economy. This study will consider the impact to financial risk of breaking up Gringotts Wizardin...

T his study is the second in a two-part analysis of the mutual fund industry. The first part (Fortune 1997, referred to here as " Part I ") examined the basic structure of the industry and discussed the historical relationship between mutual fund flows and returns on both short-term and long-term financial instruments. That study ended with a discussion of the role that momentum investing by mu...

The present paper examines the effectiveness of financial overcompensation as a means to enhance customer loyalty after a product failure. Overcompensation implies that customers are entitled to a refund that is larger than the purchase price. It is, however, still unclear whether large overcompensations entail saturation effects, or alternatively, result in an actual drop in customer loyalty. ...

The paper is devoted to an econometric study of the simple agent-based financial markets, which are based on the few-type designs. In particular, we study a version of the adaptive belief system (Brock and Hommes, 1998) in the context of fundamentalists-chartist (fundamentalistschartists-contrarians) formulation. The general question which concerns us is the significance of the number of types ...

This paper constructs retail financial distress prediction models based on five key variables previously shown to have good classification properties (Hu and Ansell, 2005). Five credit scoring techniques—Naïve Bayes, Logistic Regression, Recursive Partitioning, Artificial Neural Network, and Sequential Minimal Optimization (SMO) were considered. A sample of 491 healthy firms and 68 distressed r...