Using CRSP daily returns, we estimate idiosyncratic volatility or the standard deviation of daily
residual returns, where
residual returns are errors from a daily four-factor model.
large difference between absolute and
residual returns, while a liquid
The holders of equity interest, as a group, do not possess the power to direct the activities of the company through voting rights; the obligation to absorb expected losses or the right to receive expected
residual returns (management derives the expected losses and expected
residual returns based on the estimated cash flows); and disproportionate voting rights in comparison to economic interest.
Fail to receive the pro-rated share of the entity's expected
residual returns.
In order to do this, the expected residual losses and expected
residual returns of the VIE must be estimated and then allocated to the enterprises that hold variable interests in the VIE.
The primary beneficiary of a variable interest entity is the party that absorbs a majority of the entity's expected losses, receives a majority of its expected
residual returns, or both, as a result of holding variable interests, which are the ownership, contractual, or other pecuniary interests in an entity that change with changes in the fair value of the entity's net assets excluding variable interests.
This suggests that past
residual returns have an influence on current EAFE returns.
Since the Mann-Whitney test is one-tailed, the observed positive test statistics in Table 2 indicate a non-directional shift in the event period
residual returns distribution.
Sometimes individuals form an enterprise not in anticipation of handsome
residual returns, but rather for their own use.
Interpretation 46 changes that by requiring a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's
residual returns or both.
Exhibit B-Allocation of Residual Gains & Expected Losses Expected Recipient-Gains Performance Residual
Residual returns (2) losses (3) Equity (R) Lessee (M) Bank Outstanding $7,575 $7,575 Very good $7,150 $7,150 Good $14,175 $14,175 Poor ($5,700) Very poor ($13,275) Extremely poor ($9,925) $28,900 ($28,900) $21,750 $7,150 $0 Performance Expected Recipient-Lessee Equity (R) Lessee (M) Bank Outstanding Very good Good Poor ($5,700) Very poor ($13,275) Extremely poor ($9,925) $0 ($18,975) ($9,925)
assessing the expected losses and expected
residual returns associated
