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Papers by olivia joy

The Journal of Finance, 1978

of return projects are less sensitive to data errors than low rate of return projects, (4) short ... more of return projects are less sensitive to data errors than low rate of return projects, (4) short lived projects are especially sensitive to data estimation errors. We also drew some conclusions of a more technical nature. The comment by Smith [2] does not take issue with conclusions (1) and (4), but does show two things. First, conclusion (2) is invalid in its claim that rate of return errors are linearly related to cash flow errors. This criticism is true, as has been noted also by Whisler [3], although it appears the linear approximation is, in general, fairly good. More importantly, Smith shows that our confounding of rate of return and cash flow changes invalidates conclusion (3) and some of the more technical conclusions related to it. This criticism is also true. It is still true, however, that for the majority of cases (that is, usually), high rate of return projects are less sensitive to estimation errors than are low rate of return projects, at least for projects with parameter ranges described by us. Exceptions to this admittedly much weaker generality are most likely to occur when comparing short lived, high return projects with long lived, low return projects, which Smith illustratively did. From the perspective of comparative risk analysis in a mutually exclusive choice context, the weaker generality should still be germane, because alternatives should have approximately equal lives. But the criticism raised by Smith is nonetheless true. Finally, in retrospect, it seems likely to us that we are subject to an equally important criticism of erroneous orientation regarding sensitivity analysis. Generalities that come from studies are important, but the most crucial feature of sensitivity analysis is the analysis of an individual project's rate of return (or net present value) response to estimation errors or "what if" conjectures. Stated simply, the primary focus of sensitivity analysis should be project specific. This appropriately leads to investigation of project specific cash flow patterns, and removes the need for generalities that are unrelated to the project under consideration. To the extent that our article obscured this fundamental point, we would admit to an error in orientation.

The Journal of Finance, 1975

IN A PERFECT MARKET, an optimal investment policy would be the firm's selection of that group... more IN A PERFECT MARKET, an optimal investment policy would be the firm's selection of that group of capital budgeting projects having the largest positive effect on the wealth of its shareholders.1 Implementation of such a policy, however, presumes that the individual investment decision makers within the firm-whose actions constitute in sum total the firm's investment decisions-will descriptively comply with the prescribed investment standard. While corporations do make centralized decisions for the major business decisions, there are obviously some decisions that will be made by decentralized units. Arrow notes that:

The Journal of Finance, 1979

The Financial Review, 1981

The Engineering Economist, 1980

(1980). CASH FLOWS THAT REQUIRE NEGATIVE DISCOUNT RATES. The Engineering Economist: Vol. 26, No. ... more (1980). CASH FLOWS THAT REQUIRE NEGATIVE DISCOUNT RATES. The Engineering Economist: Vol. 26, No. 2, pp. 154-158.

Textual Practice, 2012

‘“Barneyworld”: the cultural imaginary of the global factory’ is a unique theorization of the wor... more ‘“Barneyworld”: the cultural imaginary of the global factory’ is a unique theorization of the work of Matthew Barney within the context of contemporary debates over materiality and materialism that includes readings of Frederic Jameson, Antonio Negri, and Slavoj Žižek. These figures, I argue, represent a new ‘historical’ materialism that has become more prominent since the fading of ‘theory’ (‘poststructuralism’ to be more specific). This new materialism claims to provide explanations of culture which take the material economic and class relations into account and returns the cultural agent to its active historical role. Jameson, for instance, critiques the segregation of culture from the economic in cultural materialism as being itself ‘a symptom and a reinforcement of the reification and privatization of contemporary life’ [Fredric Jameson, The Political Unconscious: Narrative as a Socially Symbolic Act (Ithaca, NY: Cornell UP, 1988), p. 20] by capital. And yet, his own analysis of culture provides a theory of history and agency which is free from any power of intervention in history by offering a ‘Utopian compensation’ in the form of the ‘libidinal transformation’ of the senses; ‘the increasing abstraction of visual art’ and ‘the place of sheer color and intensity’ rescuing our ‘feeling amid the desacralization of the market system’ [Fredric Jameson, The Political Unconscious: Narrative as a Socially Symbolic Act (Ithaca, NY: Cornell UP, 1988), pp. 236–237]. I argue that this contradiction is symptomatic of missing something fundamental about contemporary art, which I investigate by a reading of The Cremaster Cycle by Matthew Barney.

Southern Economic Journal, 1972

Management Science, 1983

A probabilistic investment model is formulated as a Wiener process with a barrier. A planning hor... more A probabilistic investment model is formulated as a Wiener process with a barrier. A planning horizon, targeted rate of return, discount rate, and the mean and variance rate of return are the important parameters in the model. Sensitivity analyses are studied. Several significant statements can be made: (1) contrary to traditional mean-variance portfolio models, rate of return variance may not

The Journal of Financial and Quantitative Analysis, 1989

This paper examines the seasonal behavior of proportional dealer spreads for OTC NASDAQ common st... more This paper examines the seasonal behavior of proportional dealer spreads for OTC NASDAQ common stocks. Results indicate there is seasonality in dealer spreads. Spreads tend to be larger in the second half of the calendar year, peaking in December. At the turn-ofthe-year, spreads tend to peak in mid- to late December and then recede during January. The last trading day in December produces the largest daily decline in spreads during the turn-of-the-year period.

The Journal of Financial and Quantitative Analysis, 1974

This paper presents a descriptive theory of risk that may be applied to capital budgeting decisio... more This paper presents a descriptive theory of risk that may be applied to capital budgeting decisions. The proposed theory is actually much more general than a theory of financial risk and is consistent with reported laboratory experiments. The essential feature of this theory is the role that risk descriptively plays as a constraint in the decision-making process. Specifically, risk is modeled as a chance constraint such that projects are rejected if the probability of “failure” is larger than some prescribed level. This has the effect of making all investment decisions chance-constrained programming problems, although some classes of problems have trivial solution procedures. In this context, risk serves to “strike out” or eliminate alternatives from consideration.

JCMS: Journal of Common Market Studies, 1976

Journal of Business Finance & Accounting, 1982

The risk-adjusted discount rate (RADR) method of investment evaluation has been the subject of ca... more The risk-adjusted discount rate (RADR) method of investment evaluation has been the subject of careful scrutiny, exemplified 'by the debate between Lewellen (1977 and 1979) and Celec and Pettway (1979), and between Beedles (1978b) and Miles and Choi (1979). The issues have been W g h t e d by the

Journal of Accounting Research, 1977

The vast majority of studies relating published accounting statement data with stock price behavi... more The vast majority of studies relating published accounting statement data with stock price behavior suggest that the data are fully impounded in stock prices prior to or almost instantaneously at time of announcement. For example, in a recent article, Benston states that: "The extant statistical studies that related published accounting statement data with stock prices all lead to the conclusion that the data either are not useful or have been fully impounded in stock prices before they are published" [1973, p. 153]. The present study presents evidence that, over the period studied, the information contained in quarterly earnings was not fully impounded into stock prices at the time of announcement. The adjustment of common stock prices to the announcement of unanticipated changes in quarterly earnings (and to other announcements as well) is an empirical question. The purpose of this present study is to reexamine the adjustment of stock prices to announcements of presumed unanticipated changes in quarterly earnings. We attempt to avoid many of the potential empirical problems of earlier studies,

Journal of Business, 1970

Economics Letters, 1995

We investigate the source of shareholder gains when open market share repurchases are announced. ... more We investigate the source of shareholder gains when open market share repurchases are announced. We find evidence that abnormal stock market returns are related to the reduction of free cash flow agency costs, which supports Jensen's free cash flow hypothesis.

Economic Inquiry, 1973

Summary In a competitive economy under certainty, inter-industry rates of return on real investme... more Summary In a competitive economy under certainty, inter-industry rates of return on real investment would approach equality in the long run. Stigler [141 found empirical evidence that there are significant inter-industry differ- ences in profitability rates. Fisher and Hall [4] and Cootner and Holland [3] suggested that differences in profitability among industries may be attributable to inter-industry differences in risk. If different industries are exposed to different degrees of risk, long-run inter-industry differences in profitability would be expected even in a competitive economy. Over the period 1950–1967 this study used two-way ANOVA to test the null hypothesis that there were no persistent inter-industry differences in risk-adjusted profitability. The null hypothesis was rejected at the .001 level under four different test specifications. These findings may be viewed as an extension of Stigler's work and lend support to the hypothesis of persistent barriers to entry in the United States economy. Our empirical findings are positive in nature. Significant and persistent differences in risk-adjusted inter-industry profitability rates were found, but no attempt was made to identify what factors influence and perpetu- ate these differences. A possible area for future research is an investigation of the relationship between risk-adjusted return and measures of concentration and barriers to entry. Such a study would presumably parallel Bain's [1] prior work.

Financial Analysts Journal, 1970

Another Look at the Value of PIE Ratios by 0. MAURICE JOY and CHARLES P. JONES IN AN ARTICLE in t... more Another Look at the Value of PIE Ratios by 0. MAURICE JOY and CHARLES P. JONES IN AN ARTICLE in this Journal, ' Levy and Kripotos presented some interesting rules for selecting com-mon stocks expected to outperform the market. As pointed out by the Journal itself,2 ...

Journal of Banking & Finance, 1983