School of Economics and Finance

AProf Martin Lally

Associate Professor
School of Economics and Finance
address

Phone: 04 463 5998

AProf Martin Lally

Currently Teaching

FINA 201 - Introduction to Corporate Finance
Course Coordinator

Associate Professor Martin Lally is on Research and Study Leave

Introduction

My research interests lie broadly in cost of capital and valuation. Current research work is on the implications of dividend imputation for valuation and dividend policy, the effect of an asset’s market weight on its beta, and the effect of time-variation in firm and market leverage on both betas and the Market Risk Premium.

Qualifications

BCA (Hons) PhD VUW

Research Interests

Time-Varying Market Leverage, The Market Risk Premium and the Cost of Capital, The Effect of an Asset’s Market Weight on its Beta , Optimal Dividend Policy Under Dividend Imputation

Publications

  • 'Optimal Dividend Policy, Debt Policy and the Level of Investment within a Multi-Period DCF Framework’, Pacific-Basin Finance Journal, 19 (2011), pp. 21-40.
  • 'The Capitalisation Rate of the Government Superannuation Fund’, Pacific Accounting Review, 22, 3 (2010), pp. 253-271.
  • 'The Risk-Adjusted Costs of Financial Distress: A Comment', Applied Economics Letters, 17, 16 (2010), pp. 1611-1613.
  • 'The Relationship Between Franking Credits and the Market Risk Premium: A Comment', Accounting and Finance, 48, 1 (2008), pp. 143-151.
  • 'Betas, Market Weights and the Cost of Capital: The Example of Nokia and Small-Cap Stocks on the Helsinki Stock Exchange' (with Steve Swidler), International Review of Financial Analysis, 17 (2008), pp. 805-819.
  • 'Measuring the US Social Discount Rate: Reply to Azar', Applied Financial Economics Letters, 4, 4 (2008), pp. 283-285.
  • 'Free Cash Flow Models, Terminal Values and the Timing of Asset Replacements', New Zealand Economic Papers, 41, 1 (2008), pp. 79-102.
  • 'Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt', Accounting Research Journal, 20, 2 (2007), pp. 73-80.
  • 'Rejoinder: Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt', Accounting Research Journal, 20, 2 (2007), pp. 87-88.
  • 'Regulatory Revenues and the Choice of the CAPM: Australia Versus New Zealand', Australian Journal of Management, 31, 2 (2006), pp. 313-331.
  • 'Foreign Beta Estimates and Market Leverage', INFINZ Journal, Issue 1 (2004), pp. 13-19.
  • 'Non-parametric Estimation of Historical Volatility' (with John Randal and Peter Thomson), Quantitative Finance, 4 (2004), pp. 427-440.
  • 'Revising the Revisionists - More on the WACC', Competition and Regulation Times, Issue 14 (2004), pp.10-11.
  • 'The Market Risk Premium in New Zealand - Survey Evidence' (with Melvin Roush and Tony van Zijl), INFINZ Journal, Issue 1 (2004), pp. 5-12.
  • 'Betas and Industry Weights', Australian Journal of Management, 29, 1 (2004), pp. 109-120.
  • 'Estimating the Market Risk Premium in New Zealand through the Siegel Methodology' (with Alastair Marsden), Accounting Research Journal, 17, 2 (2004), pp. 93-101.
  • 'Ground Rental Rates and Ratchet Clauses' (with John Randal), Accounting and Finance, 44, 2 (2004), pp. 187-202.
  • 'Regulation and the Choice of the Risk Free Rate', Accounting Research Journal, 17, 1 (2004), pp. 18-23.
  • 'Tax-Adjusted Market Risk Premiums in New Zealand: 1931-2002' (with Alastair Marsden), Pacific-Basin Finance Journal, 12, 3 (2004), pp. 291-310.
  • 'The Fama-French Model, Leverage and the MM Propostions', The Journal of Financial Research, 27, 3 (2004), pp. 341-349.
  • 'Capital Gains Tax and the Capital Asset Pricing Model' (with Tony van Zijl), Accounting and Finance, 43, 2 (2003), pp. 187-210.
  • 'Regulation and the Cost of Equity Capital in Australia', Journal of Law and Financial Management, 2, 1 (2003), pp 29-42.
  • 'The Effect of an Asset's Market Weight on its Beta' (with Steve Swidler), Journal of Multinational Financial Management, 13, 2 (2003), pp. 161-170.
  • 'Estimating the Cost of Equity Capital in Australia', The Journal of the Securities Institute of Australia, (2002) pp. 9-13.
  • 'Time-Varying Market Leverage, the Market Risk Premium and the Cost of Capital', Journal of Business Finance and Accounting, 29 (2002), pp. 1301-1318.
  • 'Betas and Market Leverage', Accounting Research Journal, 15, 1 (2002), pp. 91-97.
  • 'Estimating the Market Risk Premium by Forward-Looking Methods', The New Zealand Investment Analyst, 22 (2001), pp. 28-30.
  • 'The Rental Rate on Land, Revision Frequency and Inflation', Pacific Accounting Review, 13, 2 (2001), pp. 17-34.

Back to top ^

  • 'The Real Cost of Capital in New Zealand: Is it Too High?', New Zealand Business Roundtable, (2000).
  • 'The Valuation of GSF's Defined Benefit Pension Entitlements', New Zealand Economic Papers, 34, 2 (2000), pp. 183-199.
  • 'Valuation of Companies and Projects under Differential Personal Taxation', Pacific-Basin Finance Journal, 8, 1 (2000), pp. 115-133.
  • 'Valuation of Companies and Projects with Differential Personal Taxation', The New Zealand Investment Analyst, 21 (2000), pp. 36-39.
  • 'Blume and Vasicek Betas: Some Problems and Application Issues', The New Zealand Investment Analyst, 20 (1999), pp. 36-38.
  • 'The Cost of Equity Capital and its Estimation', McGraw-Hill Series in Advanced Finance, 3, McGraw-Hill Australia, (1999).
  • 'An Examination of Blume and Vasicek Betas', The Financial Review, 33, 3 (1998), pp. 183-198.
  • 'Correcting Betas for Changes in Firm and Market Leverage', Pacific Accounting Review, 10, 2 (1998), pp. 97-115.
  • 'Public Sector Cost of Capital: A Comparison of Two Models', New Zealand Economic Papers, 32, 2 (1998), pp. 195-212.
  • 'The CAPM with Personal Taxes and International Portfolio Selection', The New Zealand Investment Analyst, 19 (1998), pp. 22-24.
  • 'The Cost of Capital for State-Owned-Enterprises', Victoria Economic Commentaries, 15, 1 (1998), pp. 35-45.
  • 'Capital Charging and Asset Revaluation: New Choices in Government Financial Reporting?' (with G. Stevenson Smith), The International Journal of Accounting, 32, 1 (1997), pp. 45-62.
  • 'Dividend Imputation and Financial Reporting', Chartered Accountants Journal of New Zealand, 76 (1997), pp. 33-34.
  • 'Estimating the Cost of Capital for Crown Entities and State-Owned-Enterprises', The Treasury, (1997).
  • 'The CAPM Under Dividend Imputation and International Portfolio Selection', Pacific Accounting Review, 8, 1 (1996), pp. 48-65.
  • 'The Accuracy of CAPM Proxies for Estimating a Firm's Cost of Equity', Accounting and Finance, 35, 1 (1995), pp. 63-72.
  • 'The Cost of Capital for Government Entities: An Evaluation of the New Zealand Government's Capital Charge Model', Accounting Research Journal, 8, 1 (1995), pp. 15-26.
  • 'The Public Sector Cost of Capital', Victoria Economic Commentaries, 11, 1 (1994), pp. 59-64.
  • 'The Valuation of Gold Stocks', The New Zealand Investment Analyst,  15 (1994), 9-10.
  • 'Capital Charge Regime - Economic Rhetoric or Rationality', Accountants Journal, 71 (1992), pp. 54-55.
  • 'The CAPM Under Dividend Imputation, Pacific Accounting Review',  4 (1992), pp. 31-44.
  • 'The Cost of Capital to the Public Sector', Accountants Journal, 71 (1992), pp. 52.
  • 'Insider Trading: Winners and Losers', Victoria Economic Commentaries, 8, 2 (1988), pp. 67-79.
  • 'The Gordon-Shapiro Dividend Growth Formula and Inflation', Accounting and Finance, 28, 2 (1988), pp. 45-51.