Kristien Smedts

Bio: Kristien Smedts is an academic researcher from Katholieke Universiteit Leuven. The author has contributed to research in topics: Earnings & Odds. The author has an hindex of 5, co-authored 19 publications receiving 106 citations. Previous affiliations of Kristien Smedts include Catholic University of Leuven & University of Amsterdam.

Conceptualising and Measuring Social Cohesion in Africa: Towards a Perceptions-Based Index

Abstract: Social cohesion is a key concept in development studies. Weak social cohesion is often related to slow economic growth and (violent) conflict. So far few attempts have been made to measure this complex concept in a systematic manner. This paper introduces an innovative method to measure national-level social cohesion based on survey data from 19 African countries. We distinguish three dimensions of social cohesion; i.e. the extent of perceived inequalities, the level of societal trust, and the strength of people’s adherence to their national identity. Importantly, our Social Cohesion Index (SCI) is based on individuals’ perceptions vis-a-vis these three different dimensions of social cohesion rather than certain macro-level ‘objective’ indicators such as GDP/capita or Gini-coefficients. We develop two social cohesion indices: a national average SCI and a Social Cohesion Index Variance-Adjusted (SCIVA); the latter one takes into account the level of variation across different ethnic groups within countries. The SCI and SCIVA are computed for and compared across nineteen African countries for the period 2005–2012 on the basis of Afrobarometer survey rounds 3, 4 and 5. We also investigate quantitatively the relationship between countries’ levels of social cohesion and the occurrence of a range of conflict events. As expected, we find that countries with low levels of social cohesion in a particular year according to our SCI are more likely to experience a range of different violent conflict events in the subsequent year.

Seeing is not believing: perceptions of horizontal inequalities in Africa

Abstract: An increasing amount of research has found evidence that the presence of objective horizontal inequalities increases the risk of violent conflict. Yet, people act and react on the basis of their perceptions of reality, which may differ considerably from a more objective assessment of this reality. So far, very little research has been done on the relationship between objective and subjective horizontal inequalities, which is the focus of this paper. An important finding of our empirical analysis of 19 African countries is that people’s perceptions of the prevailing economic inequalities can differ substantially from a more objective assessment of these inequalities. Overall, our analysis shows that the assumption that objective and subjective horizontal inequalities are largely the same, which is commonly made in empirical studies focusing on the relationship between horizontal inequalities and violent conflict, needs to be revisited and challenged.

Gender Dierences Among Analyst Recommendations

Abstract: Using a large and unique real-life dataset we study gender dierences in the recommendation issuing process of security analysts. We observe gender heterogeneity in the probability to issue a particular type of recommen- dation. We document that the dierences are most pronounced when the dispersion in existing recommendations is low; male analyst have a larger probability to issue extreme positive recommendations and to deviate from the consensus recommendation, exactly at the time the market could in- terpret this behavior as being skilled. The dierences in opinion between Strong Buy recommendations of male analysts and conservative Hold rec- ommendations of female analysts are almost 30% before 2002, while they decrease to 9% after 2001.

Gender Differences in Preferences

Abstract: This paper reviews the literature on gender differences in economic experiments. In the three main sections, we identify robust differences in risk preferences, social (other-regarding) preferences, and competitive preferences. We also speculate on the source of these differences, as well as on their implications. Our hope is that this article will serve as a resource for those seeking to understand gender differences and to use as a starting point to illuminate the debate on gender-specific outcomes in the labor and goods markets.

Asymmetries in Stock Returns: Statistical Tests and Economic Evaluation

Abstract: We provide a model-free test for asymmetric correlations in which stocks move more often with the market when the market goes down than when it goes up, and also provide such tests for asymmetric betas and covariances. When stocks are sorted by size, book-to-market, and momentum, we find strong evidence of asymmetries for both size and momentum portfolios, but no evidence for book-to-market portfolios. Moreover, we evaluate the economic significance of incorporating asymmetries into investment decisions, and find that they can be of substantial economic importance for an investor with a disappointment aversion (DA) preference as described by Ang, Bekaert, and Liu (2005). , Oxford University Press. (This abstract was borrowed from another version of this item.)

Multicultural Citizenship: A Liberal Theory of Minority Rights

Abstract: The increasingly multicultural fabric of modern societies has given rise to many new issues and conflicts, as ethnic and national minorities demand recognition and support for their cultural identity. This book presents a new conception of the rights and status of minority cultures. It argues that certain sorts of 'collective rights' for minority cultures are consistent with liberal democratic principles, and that standard liberal objections to recognizing such rights on grounds of individual freedom, social justice, and national unity, can be answered. However, Professor Kymlicka emphasises that no single formula can be applied to all groups and that the needs and aspirations of immigrants are very different from those of indigenous peoples and national minorities. The book discusses issues such as language rights, group representation, religious education, federalism, and secession - issues which are central to understanding multicultural politics, but which have been surprisingly neglected in contemporary liberal theory.

Investment in capital markets

Abstract: Investment in Capital Markets creates a strategic vision on the financial capital investment in the capital markets with the aim to get an increased return premium in the short and long time periods. The book is written with a main goal to explain the pros and cons of the financial capital investment in the capital markets, discussing the sophisticated investment concepts and techniques in the simple understandable readable general format language. We would like to highlight the three interesting facts about the book: 1. It is centered on the consideration of the modern investment products, the investment vehicles and the investment mediums for the financial capital investment in the capital markets; 2. It is focused on the financial risk calculation and mitigation techniques for the financial capital investment in the financial capital markets. 3. It is aimed to describe the quantum winning virtuous investment strategies creation and execution techniques during the financial capital investment in the capital markets. The investors, financiers, economists, financial analysts, financial traders, financial advisers, lawmakers, policy analysts, subject experts, professors, and students will certainly enjoy a breathtaking splendid learning journey with the explained new ideas, established concepts and outlined future prospects toward the financial capital investment in the capital markets with the aim to get an increased return premium in the short and long time periods.

Breadth of Ownership and Stock Returns

Abstract: This book focuses on the forecasting power of breadth of ownership of Portuguese mutual funds on stock returns. Majority of studies tend to focus on the markets of China and the United States. We utilize a model with differences of opinion and short-sales constraints similar to that of Chen et al. (2002). Using data on mutual fund holdings we find that stocks with the largest negative changes in breadth tend to significantly underperform stocks with the largest positive changes in breadth in short horizons of one month and one quarter. However, the results are mixed when looking at longer horizons. We also find evidence to show that short-sales constraints matter for stock returns. Therefore, when short sales constraints are binding stocks prices are high when compared to fundamentals. This proves that our results are consistent with the Miller (1977) model. Further, we show that are results hold during periods of a financial crisis as well. This study also highlights that there are limits to arbitrage, as suggested by Shleifer and Vishny (1997), because of market frictions such as short-sales constraints which can lead to abnormal returns in constraint stocks.