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Financial Reporting Quality Of Chinese Reverse Merger Firms: The Reverse Merger Effect Or The China Effect?, Kun-Chih Chen, Qiang CHENG, Ying Chou LIN, Yu-Chen LIN, Xing XIAO 2016 Singapore Management University

Financial Reporting Quality Of Chinese Reverse Merger Firms: The Reverse Merger Effect Or The China Effect?, Kun-Chih Chen, Qiang Cheng, Ying Chou Lin, Yu-Chen Lin, Xing Xiao

Research Collection School Of Accountancy

In this paper, we examine why Chinese reverse merger (RM) firms have lower financial reporting quality than U.S. IPO firms. We find that the financial reporting quality of U.S. RM firms is similar to that of matched U.S. IPO firms, but Chinese RM firms exhibit lower financial reporting quality than Chinese ADR firms. We also find that Chinese RM firms exhibit lower financial reporting quality than U.S. RM firms. These results indicate that the use of the RM process is associated with poor financial reporting quality only in firms from China, where legal enforcement and investor ...


Have We Solved The Idiosyncratic Volatility Puzzle?, Kewei HOU, Roger K. LOH 2016 Ohio State University

Have We Solved The Idiosyncratic Volatility Puzzle?, Kewei Hou, Roger K. Loh

Research Collection Lee Kong Chian School Of Business

We propose a simple methodology to evaluate a large number of potential explanations for the negative relation between idiosyncratic volatility and subsequent stock returns (the idiosyncratic volatility puzzle). We find that surprisingly many existing explanations explain less than 10% of the puzzle. On the other hand, explanations based on investors’ lottery preferences, short-term return reversal, and earnings shocks show greater promise in explaining the puzzle. Together they account for 60-80% of the negative idiosyncratic volatility-return relation. Our methodology can be applied to evaluate competing explanations for a broad range of topics in asset pricing and corporate finance.


On The Behavior Of Entrepreneurial Factor Supply To The Firm, Nicos Zafiris 2016 University of Westminster

On The Behavior Of Entrepreneurial Factor Supply To The Firm, Nicos Zafiris

The Journal of Entrepreneurial Finance

This paper draws on an existing, but little used, approach to the choices governing the supply of ‘entrepreneurial’, in the sense of ‘residually remunerated’, resources to an enterprise, especially post start up. It focuses in particular on the hybrid ‘own factor demand/supply curve’ to the firm of Bronfenbrenner (1960), but attempts to treat such supply in conjunction with ‘contractual’ employment of resources, thus making use of gearing and portfolio concepts. To achieve this, it is found necessary for the hybrid schedule to be reinterpreted and recast as the locus of the relevant utility maximising choices. A model is presented ...


Can Information Be Locked-Up? Informed Trading Ahead Of Macro-News Announcements, Gennaro BERNILE, Jianfeng HU, Yuehua TANG 2016 Singapore Management University

Can Information Be Locked-Up? Informed Trading Ahead Of Macro-News Announcements, Gennaro Bernile, Jianfeng Hu, Yuehua Tang

Research Collection Lee Kong Chian School Of Business

Government agencies routinely allow pre-release access to information to accredited news agencies under embargo agreements. Using high-frequency data, we find evidence consistent with informed trading during embargoes of Federal Open Market Committee (FOMC) scheduled announcements. The E-mini Standard & Poor’s 500 futures’ abnormal order imbalances are in the direction of subsequent policy surprises and contain information that predicts the market reaction to the policy announcements. The estimated informed trades’ profits are arguably large. Notably, we find no evidence of informed trading prior to the start of FOMC news embargoes or during lockups ahead of nonfarm payroll, US Producer Price Index ...


Disproportional Ownership Structure And Pay-Performance Relationship In China, Xiaping Jerry CAO, Xiaofei Pan, Gary Tian 2016 Singapore Management University

Disproportional Ownership Structure And Pay-Performance Relationship In China, Xiaping Jerry Cao, Xiaofei Pan, Gary Tian

Gary Tian

This paper examines the impact of ownership structure on executive compensation in China's listed firms. We find that the cash flow rights of ultimate controlling shareholders have a positive effect on the pay-performance relationship, while a divergence between control rights and cash flow rights has a significantly negative effect on the pay-performance relationship. We divide our sample based on ultimate controlling shareholders' type into state owned enterprises (SOE), state assets management bureaus (SAMB), and privately controlled firms. We find that in SOE controlled firms cash flow rights have a significant impact on accounting based pay-performance relationship. In privately controlled ...


Disproportional Ownership Structure And Pay-Performance Relationship In China, Xiaping Jerry CAO, Xiaofei Pan, Gary Tian 2016 Singapore Management University

Disproportional Ownership Structure And Pay-Performance Relationship In China, Xiaping Jerry Cao, Xiaofei Pan, Gary Tian

Gary Tian

This paper examines the impact of ownership structure on executive compensation in China's listed firms. We find that the cash flow rights of ultimate controlling shareholders have a positive effect on the pay-performance relationship, while a divergence between control rights and cash flow rights has a significantly negative effect on the pay-performance relationship. We divide our sample based on ultimate controlling shareholders' type into state owned enterprises (SOE), state assets management bureaus (SAMB), and privately controlled firms. We find that in SOE controlled firms cash flow rights have a significant impact on accounting based pay-performance relationship. In privately controlled ...


Motivations And Implications Of Corporate Tax Inversion, Brendan R. Dowling 2016 Trinity College

Motivations And Implications Of Corporate Tax Inversion, Brendan R. Dowling

Senior Theses and Projects

The phenomenon of tax inversion has returned to the public eye as American companies in every sector explore expatriation as a means to avoid the highest corporate tax rate in the developed world. In response to billions of dollars in tax revenue flowing overseas, legislators have proposed dozens of laws over the past four decades aimed at curbing this technique, but to no avail. In 2015 alone, tens of billions of dollars' worth of tax inversion transactions were announced. This thesis analyzes the motivations behind corporate emigration using both legal and economic framework, and models this behavior using Probit analysis ...


E-Commerce’S Impact On Big-Box Retailers, Brian Bates 2016 University of Dayton

E-Commerce’S Impact On Big-Box Retailers, Brian Bates

Honors Theses

The history of retail has been an evolutionary process of new innovations and transformations. Previous changes include: the development of catalogue based retail, and the recent innovation of super stores, known as big-box retailers. It is possible that we are dawning upon a new revolution of the retail environment as electronic commerce (e-commerce) continues to grow. This paper will analyze the impact of e-commerce on retail markets, specifically big-box stores (warehouse style retailers with over 750 million in sales). Using financial and real estate data from BloombergTM, and e-commerce data from eMarketerTM and the US Census Bureau two models ...


Do Individuals Or Firms Matter More? The Case Of Patent Generation, Tong Liu, Yifei Mao Ph.D., Xuan Tian 2016 Peking University

Do Individuals Or Firms Matter More? The Case Of Patent Generation, Tong Liu, Yifei Mao Ph.D., Xuan Tian

Working Papers

This paper studies the relative importance of individual inventors’ human capital and firms’ organizational capital in promoting a firm’s innovation output. We decompose the variation in innovation output into inventor- and firm-specific components. Inventors’ human capital is about 13 times as important as firms’ organizational capital in explaining a firm’s innovation performance in terms of patent counts and citations, while inventors’ human capital is only about the same as important when explaining the firm’s innovation styles in terms of patent exploratory and exploitive scores. In the cross section, inventors contribute more to innovation output when they are ...


Change Of Direction: Haolu "Lulu" Wang Traded Finance For The Lens Of Filmmaking, Claire Sykes 2016 Colby College

Change Of Direction: Haolu "Lulu" Wang Traded Finance For The Lens Of Filmmaking, Claire Sykes

Colby Magazine

After only two years with an investment bank in Hong Kong, her first job straight out of Colby with a degree in government and economics, the Chinese-born-and-raised Wang left and took off for Florence, Italy, to become a filmmaker. Before the eight-week, hands-on introductory course there had ended, she realized “this was something I could do for the rest of my life,” she said in an interview via Skype.


Nol Poison Pills: Using Corporate Law For Tax Purposes, Sarah J. Webber, Karie Davis-Nozemack 2016 University of Dayton

Nol Poison Pills: Using Corporate Law For Tax Purposes, Sarah J. Webber, Karie Davis-Nozemack

Sarah J Webber

Hundreds of thousands of corporations report net operating loss (NOL) carryovers every year.1 Corporations, with the benefit of NOL rules, may turn disappointing losses into favorable tax results. During economic recovery, corporations are in better position to fully utilize the benefits of NOLs generated in prior years. NOL usage is not without peril, however. Corporations should carefully monitor corporate ownership changes to ensure that NOLs are not lost to the NOL trafficking rules. Under the NOL trafficking rules, excessive shareholder turnover triggers substantial NOL limitations. Unfortunately, corporations are not in control of their shareholder turnover, and therefore not in ...


2016 Private Capital Markets Report, Craig R. Everett 2016 Pepperdine University

2016 Private Capital Markets Report, Craig R. Everett

Pepperdine Private Capital Markets Report

The Pepperdine private cost of capital survey was originally launched in 2007 and is the first comprehensive and simultaneous investigation of the major private capital market segments. This year’s survey specifically examined the behavior of senior lenders, asset‐based lenders, mezzanine funds, private equity groups, venture capital firms, angel investors, privately‐held businesses, investment bankers, business brokers, limited partners, and business appraisers. The Pepperdine survey investigated, for each private capital market segment, the important benchmarks that must be met in order to qualify for capital, how much capital is typically accessible, what the required returns are for extending capital ...


The Opportunity Recognition Framework In The Hong Kong Smes Context, Wing LAM, Hiu Kan, Ada WONG, Chung Sze, Phyllis TONG, Ziguang CHEN 2016 Lingnan University, Hong Kong

The Opportunity Recognition Framework In The Hong Kong Smes Context, Wing Lam, Hiu Kan, Ada Wong, Chung Sze, Phyllis Tong, Ziguang Chen

Prof. WONG Hiu Kan, Ada

This paper presents a preliminary framework of opportunity recognition in the Hong Kong small and medium enterprises (SMEs) context. Guanxi and four trait variables, namely self-monitoring, extroversion, selfefficacy and creativity are the independent variables while the number of opportunity recognized by entrepreneurs is the dependent variable in the framework. The model indicates a mediation effect of guanxi between self-monitoring and the number of opportunities recognized, and between extroversion and the number of opportunities recognized. Meanwhile, SMEs marketing characteristics are determined by personalities and behaviour of the entrepreneurs as they do not conform to the traditional marketing theories (Gilmore et al ...


Federal Home Loan Bank Advances And Small Business Lending, Travis R. Davidson, W. Gary Simpson 2016 Ohio University - Main Campus

Federal Home Loan Bank Advances And Small Business Lending, Travis R. Davidson, W. Gary Simpson

The Journal of Entrepreneurial Finance

Adequate credit availability for small businesses is an important public policy issue because small businesses are essential for employment and economic growth for the economy. The Gramm-Leach-Bliley Act of 1999 includes a provision that could potentially support financial institutions in the provision of credit to small businesses through the use of advances from the Federal Home Loan Bank (FHLB) system that are secured with small business loans. We explore the relation between FHLB advances to financial institutions and the provision of loans to small businesses. We find a positive link between the change in FHLB advances and the change in ...


The Big Short, Elizabeth Armon 2016 California Polytechnic State University, San Luis Obispo

The Big Short, Elizabeth Armon

Communication Studies

The Big Short (McKay, 2015), adapted from the non-fiction novel The Big Short: Inside the Doomsday Machine by Michael Lewis (2010), follows three separate but parallel stories leading up to the United States housing crisis of 2008. On a macro-level, the film brilliantly depicted the creation, and the ultimate burst, of the credit and housing market bubble. However, on a micro-level the audience is given an opportunity to realize and empathize with the internal struggle that many of the main characters faced as they grappled with the fact that their financial gain from shorting the market came with the caveat ...


2016 Q1 Private Capital Access Index Report, Craig R. Everett 2016 Pepperdine University

2016 Q1 Private Capital Access Index Report, Craig R. Everett

Pepperdine Private Capital Access Report

The Pepperdine Private Capital Access Index (PCA) is a quarterly indicator produced by the Graziadio School of Business and Management at Pepperdine University, and with the support of Dun & Bradstreet. The index is designed to measure the demand for, activity, and health of the private capital markets. The purpose of the PCA Index is to gauge the demand of small and medium sized businesses for financing needs, the level of accessibility of private capital, and the transparency and efficiency of private financing markets.


Women In Small Business: Challenges Yet To Come, Christa Jocelyn 2016 University of California - Berkeley

Women In Small Business: Challenges Yet To Come, Christa Jocelyn

Christa Jocelyn


According to American Express OPEN’s 2014 State of Women Owned Business Report, it is estimated that over 9 million women own businesses in the United States. This brings in over $1.4 trillion in revenue and employees nearly 8 million U.S. individuals.


Female Board Representation And Corporate Acquisition Intensity, Guoli CHEN, Craig CROSSLAND, Sterling Zhenrui HUANG 2016 INSEAD

Female Board Representation And Corporate Acquisition Intensity, Guoli Chen, Craig Crossland, Sterling Zhenrui Huang

Research Collection School Of Accountancy

This study examines the impact of female board representation on firm-level strategic behavior within the domain of mergers and acquisitions (M&A). We build on social identity theory to predict that greater female representation on a firm's board will be negatively associated with both the number of acquisitions the firm engages in and, conditional on doing a deal, acquisition size. Using a comprehensive, multi-year sample of U.S. public firms, we find strong support for our hypotheses. We demonstrate the robustness of our findings through the use of a difference-in-differences analysis on a sub-sample of firms that experienced exogenous ...


Option Return Predictability, Jie CAO, Han BING, Qing TONG, Xintong ZHAN 2016 Singapore Management University

Option Return Predictability, Jie Cao, Han Bing, Qing Tong, Xintong Zhan

Research Collection Lee Kong Chian School Of Business

We show the cross-section of equity option returns can be predicted by a variety of underlying stock characteristics and firm fundamentals, including idiosyncratic volatility, past stock returns, profitability, cash holding, new share issuance, and dispersion of analyst forecasts. Such predictability is not mechanically inherited from the stock market because these variables do not significantly predict stock returns in our sample, and our results hold for delta-hedged calls and puts in the same directions. We document new option trading strategies that are profitable even after transaction costs. These profits are robust across different market conditions and subsamples. They cannot be explained ...


Corporations And The 99%: Team Production Revisited, Shlomitt Azgad-Tromer 2016 Fordham Law School

Corporations And The 99%: Team Production Revisited, Shlomitt Azgad-Tromer

Fordham Journal of Corporate & Financial Law

This Article explores the legal manifestation of the interaction between the general public and the public corporation. Revisiting team production analysis, this Article redefines the corporate team and argues that while several constituencies indeed form part of the corporate team, others are exogenous to the corporate enterprise. Employees, suppliers and financiers contribute together to the common corporate enterprise, enjoying a long-term relational contract with the corporation, while retail consumers contract with the corporation at arm’s length, and other people living alongside the corporation do not contract with it at all. Under this organizational model, the general public may participate ...


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