Template-Type: ReDIF-Article 1.0 Author-Name: Shu-Ling Chang Author-Name: Long-Jainn Hwang Author-Name: Chun-An Li Title: THE EFFECT OF MANAGERIAL OVERCONFIDENCE ON CONFERENCE CALLS Abstract: This study examines the relation between managerial overconfidence and conference calls. Prior studies document that some managers tend to be overconfident because they believe they have more precise knowledge about future events than they genuinely possess. Overconfident managers tend to convene conference calls since they are an important tool to disclose information about the future. We examine how managerial overconfidence affects the occurrence and frequency of conference calls using evidence from the Taiwan stock market. To measure managerial overconfidence, following Kolasinski and Li (2013), we use an example of managers purchasing their own firm’s stock over a two-year period, followed by negative average returns. Based on data from publicly listed firms in Taiwan for the period from 2005 to 2015, the results provide robust evidence, suggesting that managerial overconfidence and conference calls are significantly positively correlated. We find that companies with higher managerial overconfidence are likely to frequently convene conference calls. Prior research on managerial overconfidence mainly discussed the impact on financing and investment decisions, while this study provides further supplementary evidence of the impact of convening conference calls, and managerial decisions on disclosure behavior Classification-JEL: D12, D25, M10 Keywords: Conference Call, Managerial Overconfidence Journal: The International Journal of Business and Finance Research Pages: 1-22 Volume: 14 Issue: 1 Year: 2020 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v14n1-2020/IJBFR-V14N1-2020-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:14:y:2020:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Doh-Khul Kim Author-Name: Najrin Khanom Title: THE ROLE OF DIVIDENDS IN EQUITY MARKETS: EVIDENCE FROM SECTORAL-LEVEL ANALYSIS Abstract: The purpose of this research is to identify how dividend payments affect the U.S. equity market at the sectoral level. A conventional stock valuation model predicts a positive response of equity price to higher dividend payment. Higher dividends convey confidence about the firm’s future to the general investors, which is supported by the signaling hypothesis. Using representative exchange traded funds for 11 sectors in the U.S. along with traditional OLS and panel regression analysis, this paper shows that the stock valuation model is generally confirmed. Eight sectors show positive impacts of dividends with statistical significance found in three sectors; Consumer Staples, Utilities, and Real Estate Classification-JEL: G10, G12 Keywords: Dividend Payment, Sectoral-level ETF, Equity Market Response Journal: The International Journal of Business and Finance Research Pages: 23-34 Volume: 14 Issue: 1 Year: 2020 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v14n1-2020/IJBFR-V14N1-2020-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:14:y:2020:i:1:p:23-34 Template-Type: ReDIF-Article 1.0 Author-Name: Billy Kobina Enos Author-Name: Joseph Yensu Author-Name: Harrison Obeng Title: GLOBAL FINANCIAL CRISIS AND DETERMINANTS OF CAPITAL STRUCTURE: EVIDENCE FROM GHANAIAN NON-FINANCIAL LISTED FIRMS Abstract: This study uses Generalized Method of Moments (GMM) to analyze the effects of macroeconomic and firmspecific factors on the capital structure of non-financial listed firms in Ghana, for both the normal period (2006-2016) and the global financial crisis period (2008-2009). Real GDP growth, firm size, profitability, tangibility, and growth opportunities have a significant effect on varying leverage ratios of sample firms in the normal period. Inflation and real GDP growth do not significantly influence the financing choice of sample firms during the global financial crisis period. However, profitability, firm size, tangibility, liquidity, and growth opportunities have significant effects on capital structure decisions of sample firms, which could differ in periods of the global financial crisis. Our findings illuminate the possible role of the trade-off, pecking order and agency cost theories in the capital structure of sample firms despite the crisis period. The study also offers policy implications on the need for the development of capital markets as well as the ability of managers to influence corporate capital structure to remain competitive regardless of a global financial crisis event Classification-JEL: G01, G32 Keywords: Global Financial Crisis, Capital Structure, Macroeconomic Factors, Firm-Specific Factors, Ghana Journal: The International Journal of Business and Finance Research Pages: 35-56 Volume: 14 Issue: 1 Year: 2020 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v14n1-2020/IJBFR-V14N1-2020-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:14:y:2020:i:1:p:35-56 Template-Type: ReDIF-Article 1.0 Author-Name: Jeng-Hong Chen Title: This research investigates the dynamic relations between exchange rates and stock indexes for Brazil by adopting the Granger causality test and the quantile regression model. The causality test results show that changes in stock indexes cause changes in exchange rates in the full sample period and all five subperiods. The results of different quantile regressions reveal an inverse U-shape pattern of the negative coefficients, which indicates that the negative correlation between changes in exchange rates and changes in stock indexes is even clearer when exchange rates become extremely low or high. The empirical results are consistent with the portfolio approach, which suggests that changes in stock indexes result in changes in exchange rates (the stock market leads the foreign exchange market) with the negative sign of correlation Abstract: F31, G15 Classification-JEL: F31, G15 Keywords: Exchange Rates, Stock Indexes, Granger Causality, Quantile Regression Journal: The International Journal of Business and Finance Research Pages: 57-69 Volume:14 Issue:1 Year: 2020 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v14n1-2020/IJBFR-V14N1-2020-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:14:y:2020:i:1:p:57-69 Template-Type: ReDIF-Article 1.0 Author-Name: Arturo Rubalcava Title: THE EFFECTS OF CANADIAN SOX ON THE PRICE DISCOUNT OF CANADIAN EQUITY OFFERINGS Abstract: This study studies the effects of Canadian SOX on the price discount of seasoned equality offerings of Canadian issuers. Canadian SOX is legislation similar to the U.S. Sarbanes-Oxley of 2002. It passed in October 2002 and became effective December 2005. It finds Canadian SOX did not have a significant effect on the offer price discount of all Canadian issuers. These include those listed on the Toronto Stock Exchange only and those simultaneously listed on the Toronto Stock Exchange and major U.S. exchanges (cross-listed). On the other hand, when distinguishing offers by underwriting method, the price discount is not different between bought deals and marketed underwritten offers after the passage of Canadian SOX. These findings are consistent with the general hypothesis the Canadian law should not have a significant effect in the price discount of equity offers. This is because the 3-year period allowed regulators, issuers, investors, and investment banks enough time to adapt to the new law with minimum effects. Unlike Sarbanes-Oxley, where many difficulties have occurred in its implementation Classification-JEL:G24, G32 Keywords: Canadian Sox, Seasoned Equity Offerings, Price Discount, Sarbanes-Oxley Act, Cross- Listed, Bought Deals, Marketed Underwritten Offers Journal: The International Journal of Business and Finance Research Pages: 71-84 Volume:14 Issue:1 Year: 2020 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v14n1-2020/IJBFR-V14N1-2020-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:14:y:2020:i:1:p:71-84 Template-Type: ReDIF-Article 1.0 Author-Name: Yoko Oguro Title:A RECONSIDERATION OF PRICES USING THE BALASSA-SAMUELSON THEORY: EVIDENCE FROM JAPAN Abstract: This paper theoretically and empirically reevaluates price policy associated with deflation using the Balassa-Samuelson theory (Balassa (1964), Samuelson (1964)). The theoretical model developed in this paper shows the relative price level (or real exchange rate) between two countries is explained by the relative wage rate and the relative labor productivity between two countries. The empirical results confirm that relative wage rate has more impact on relative price, compared to the relative labor productivity. Since the convergence of price levels in the long run is confirmed in this paper, the theory developed implies that the tendency of nominal appreciation (depreciation) of a country’s currency causes declining (increasing) nominal wages and price levels in the long run under a free market economy. To raise the price level, it is necessary to raise labor productivity which causes a rise in the nominal wage rate in the longer run and which eventually results in a rise in the price level. The policy implication is that operating an effective price policy is difficult for countries experiencing deflation Classification-JEL: E31, E58, F39 Keywords: Price Level, Inflation, Deflation, Inflation Targeting, Nominal Wage Targeting, the Balassa-Samuelson Hypothesi Journal: The International Journal of Business and Finance Research Pages: 85-99 Volume:14 Issue:1 Year: 2020 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v14n1-2020/IJBFR-V14N1-2020-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:14:y:2020:i:1:p:85-99