This paper investigates whether publicly‐quoted firms which become closely held via management buyouts possess characteristics prior to the change which differentiate them from firms which remain publicly‐quoted. Discriminant analysis procedures are used to test for group differences and to identify the attributes which contribute most to differences. The results indicate that firms becoming closely held through management buyouts possess certain financial statement and stock market characteristics which are significantly different from firms remaining publicly‐quoted.

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"Things don't turn up in this world until someone turns them up." GarfieldThe Efficient Market assumes each security's price remains at continuous parity with its investment value. This presumption inspires challenge. The Efficient Market Hypothesis (EMH) denies that mechanical trading rules are investment strategies capable of outperforming market averages on a risk-adjusted basis after transaction costs. Academic literature presents contrary evidence, including the recent publication of "The Inefficient Stock Market" by Robert A. Haugen. Vigorous investigations into alleged validity of the Efficient Market Hypothesis challenge scholarly technicians to uncover pockets of inefficiency in their attempts to disprove market efficiency. This study investigates the semi-strong form of EMH through a mechanical trading strategy: investing in portfolios of turnaround stocks. This paper explores delineated turnaround investments attempting to uncover an anomaly. Total return measured by risk-reward relative ratio indicate, before transaction costs, an advantage exists in two portfolio sets. The results of these turnaround portfolios conflict with the Efficient Market Hypothesis. Within the conclusions, a pocket of inefficiency may, indeed, exist. The presumption inspired challenge; the result tempts possible exploitation. (JEL G30) Determinants of Foreign Direct Investment HARINDER SINGH Grand Valley State University--U.S.A.The empirical results of this investigation indicate that trade flows are the most significant determinant of Foreign Direct Investment (FDI). There has been a renewed interest in FDI flows as a viable source for financing development. Recent World Bank Reports indicate that the flow of FDI to developing countries in the 1990's and beyond has increased dramatically. These reports indicate that FDI has been harnessed by developing countries at different income levels. Since the prospects of multilateral and commercial bank lending are limited, the role of FDI has captured more attention.The Determinants of foreign direct investment are analyzed in a cross section, sectoral model. Data on sectoral FDI flows is obtained from the U.S. Department of Commerce, Benchmark Survey Results for 1994. Country specific data from the World Bank Tables and political risk data from Pinkerton Risk Assessment Services are integrated into the analysis. Consistent with previous empirical work, GDP per capita is a significant determinant of FDI flows. However, U.S. exports/imports in each sector is found to be the most significant determinant of FDI flows. Future empirical work needs to take into account the complementarity between FDI an trade flows. More micro-oriented studies need to corroborate these results. (JEL F20, F14)