Dr. Steven Jordan Published in Applied Economics
For release: January 30, 2015
Dr. Steven Jordan, visiting assistant professor of Finance, Insurance and Real Estate, recently had his paper “Location, location, location: currency effects and return predictability?” published in Applied Economics. The paper was a joint-research effort with Andrew Vivian, from the University of Loughborough (UK) and Mark Wohar, from the University of Nebraska-Omaha.
The research focused on the US dollar as a common numeraire across countries that are used in most international financial market studies. The research explored the appropriate choice for base currency and asked if currency choice can affect final conclusions. Empirical results for stock return predictability that demonstrated the importance of the numeraire were included. For example, the existence (absence) of predictability for a US investor did not necessarily imply the existence (absence) of predictability for other foreign investors.
To read the entire article please visit, http://www.tandfonline.com/doi/full/10.1080/00036846.2014.1000537#.VMqFPWjF9oQ.