2 results for Anderson, Warwick Wyndham

  • An Investigation of Dividend Signalling on the New Zealand Stock Exchange in the 1990s and of Several New Tools Employable in such an Investigation

    Anderson, Warwick Wyndham (2006)

    Doctoral thesis
    University of Canterbury Library

    This thesis investigates the nature of joint dividend-and-earnings signalling in announcements to the New Zealand Stock Exchange in the 1990s. Initially the Market Model is used to compute expected returns, and the abnormal returns derived from these are subjected to restricted least squares regressions to separate out a putative dividend signal from the concurrent earnings signal. But with the Market Model, the zero-value company returns associated with an absence of trading in thinly traded stocks are over-represented in returns distributions leading to problems of bias. New models are developed that explicitly exploit zero returns. The first alternative methodology entails friction modelling, which uses a maximum likelihood estimation procedure to find the relationship coefficients and the range of returns that should be considered as zero, and then proceeds to treat them as a separate category. The second alternative methodology is that of state asset models, which take a fresh new look at investor perceptions of the connection between movements in company returns and those of the concurrent underlying market. Zero-value company returns cease to be zero in value, where a state model is rotated, or alternatively they can be modelled as an extra state. All three methodologies furnish some evidence of dividend signalling; but this evidence is highly dependent on small changes within the given methodology.

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  • Prior tax withholdings, decision frames and movements in taxpayers' risk preferences with respect to non-compliance.

    Anderson, Warwick Wyndham (1996)

    Masters thesis
    University of Canterbury Library

    This study replicates and extends Dusenbury (1994). A sample of 132 New Zealand taxpayerparticipants performed a laboratory experiment consisting of four decision problems relating to tax situations and two decision problems relating to other financial contexts. The focus of interest was the power of each tax context's stated prepayment position to induce a decision frame (as predicted by Prospect Theory) capable of determining each participant's risk preferences. The use of a repeated measures analysis of variance procedure (general linear model) allowed for within-subject comparisons so that decision-frame-induced shifts in individual participants' risk preferences across decision problems could be diagnosed. The study found, with respect to the tax problems, that the predictions of Prospect Theory and the findings of Dusenbury (1994) were generally supported. However, similar risk preference shifts based on alternative decision frames, independent of prepayment position and all other contextual information, were also detected. When within-subject comparisons were also generated by contrasting of tax and non-tax decision problems, identical apart from context, it was found that participants produced evidence of dissimilar, context-sensitive risk preferences. Risk preferences were also found to be stable for decision problems containing identical option sets and similar, but not identical contexts. Also, a significant behavioural difference was detected between participants with high cash floats and those with low cash floats; but this was not differentiated from an awareness of cash float status variable in the study. Finally, while the underlying value functions of the participants conformed to the predictions of Prospect Theory in the tax contexts, there were some departures from the predicted form when the decision problem was set in a gambling context.

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