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Showing papers in "Financial Services Review in 1995"


Journal ArticleDOI
TL;DR: In this paper, the authors explore the issues related to the meaning and measurement of insolvency within the domain of household finances, and propose a set of models and financial ratios as techniques for identifying insolvent households.

108 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined whether the dividend policy of bank holding companies is used as a signal of their quality and found that there is a positive relationship between bank dividends per share and bank quality rating.

46 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examine the growing phenomenon of mutual fund closings by analyzing the investment performance of open-end funds that close to new investors and find that the average excess return (estimated by Jensen's alpha) was positive in the 24 months prior to closing, and not significantly different from zero after closing.

9 citations


Journal ArticleDOI
TL;DR: In this paper, the authors found that the expected value of the option to default influences debtors' choices in default and is correlated with their use of their credit cards before default, which suggests that consumers who use their lines of credit very intensely before default are significantly more likely to make choices to default which allow them to realize a greater benefit from default.

8 citations


Journal ArticleDOI
TL;DR: In this article, the authors examined the relation of disability income insurance prices to underlying contractual and insurer characteristics and observed a strong relation between prices and elimination periods, consistent with the presence of adverse selection.

5 citations


Journal ArticleDOI
TL;DR: In this paper, the authors address the issues of initial asset choice and the advisability of switching among assets when the investment goal date is known, employing the methodology of certainty equivalent wealth.

4 citations


Journal ArticleDOI
TL;DR: In this article, a simplified alternative to the traditional complex duration calculation is developed and demonstrated, which can quickly estimate the interest rate risk associated with a bond as well as calculate the expected bond price change for a given change in market yield-to-maturity.

4 citations


Journal ArticleDOI
TL;DR: In this article, the intramonth pattern of broker commission earnings is examined/or a sample of one hundred brokers from a national brokerage firm and the evidence shows that in the last five days of the production month, more than one-fourth of the brokers earned a significantly higher proportion of their monthly commissions than would be expected if trading were uniform across the month.

3 citations


Journal ArticleDOI
TL;DR: This article examined the option features of the junior interest and used the Black-Scholes model to identify situations in which an estate planner could structure a plan of ownership succession that results in undervaluation of the transferred interest.

2 citations


Journal ArticleDOI
TL;DR: In this article, the authors show how savings bonds can be used to beat the kiddie tax, to finance postsecondary education, and in retirement planning, and how to view and value their option features.

2 citations


Journal ArticleDOI
TL;DR: Potts and Reichenstein this paper describe features of U.S. savings bonds and discuss their evaluation, and provide a reference for busy practitioners who may not follow changes in the savings bond market closely, especially those who tend to rely on product-related education for updates on financial instruments.

Journal ArticleDOI
TL;DR: In this article, the authors quantify the magnitude of the error when the mathematical function for present value is ignored and interpolation is used instead to determine the discount factor, which is a common error when discount factors are not calculated precisely.