An Examination Of The Stock Market's Effect On Economic Inequality, 2019 The University of Akron
An Examination Of The Stock Market's Effect On Economic Inequality, Nicholas Golina
Honors Research Projects
The economic literature on economic inequality has shown that it can negatively impact aggregate demand because it indicates a higher concentration of wealth in the hands of the top 10% as opposed to the poor and middle class, who are more likely to consume. The literature has identified many factors that can lead to increasing inequality. The stock market could be one of those factors since it can either create an upward redistributive effect towards the top 10% or redistributive effect towards the middle class. This paper tested the effect of the stock market on inequality. This study contributes to ...
Assessing The Value Of Ventures: Crowd Investors Vs. Sophisticated Investors, 2018 Technische Universitaet Berlin
Assessing The Value Of Ventures: Crowd Investors Vs. Sophisticated Investors, Marco Bade
The Journal of Entrepreneurial Finance
Recent regulatory approaches in crowdfunding democratize capital markets. Adverse wealth effects may arise because of information asymmetry. Firoozi et al. (2017) argue that crowdfunding has wealth-reducing effects on crowd investors because they systematically assign less value to good ventures, and more to bad ventures. This paper aims to take a more differentiated perspective by incorporating two dimensions of uncertainty determining ventures’ value. It further takes into account that different investor types learn different information. This yields new findings concerning the assessment of venture value by crowd investors and sophisticated investors. Crowd investors’ may be able to better assess venture value ...
A Return To The Cash Conversion Cycle And Corporate Returns, 2018 Utah State University
A Return To The Cash Conversion Cycle And Corporate Returns, Madyson Mcpherson
All Graduate Plan B and other Reports
A little over twenty years ago, Jose, Lancaster, and Stevens (1996) wrote a paper examining the relationship between profitability and ongoing liquidity management for firms over a twenty-year period, from 1974 to 1993. They test the relationship between the cash conversion cycle, ongoing liquidity management, and other methods of profitability using a regression analysis (Jose, Lancaster, and Stevens, 1996). This paper aims to do the same but with a selection of firms over a different twenty-year period, from 1993 to 2013. We implement Jose et al.’s methodology with updated data to see if contemporary data yields similar results: aggressive ...
Revisiting Corporate Financial Policy And The Value Of Cash, 2018 Utah State University
Revisiting Corporate Financial Policy And The Value Of Cash, Nan Guo
All Graduate Plan B and other Reports
Corporate financial policy and the value of cash by Michael Faulkender and Rong Wang (2006) examined the cross sectional variation in the marginal value of corporate cash holdings that arises from differences in the corporate financial policy. The main findings were that the marginal value of cash declines with large cash holdings,higher leverage, and better access to capital market. The goal of this paper is to replicate and extend Faulkender & Wang's (2006) work to test whether their assumptions and results are still valid.
Misconduct And Fraud By Investment Managers, 2018 Nanyang Technological University, Singapore
Misconduct And Fraud By Investment Managers, Stephen G. Dimmock, Joseph D. Farizo, William C. Gerken
Finance & Quantitative Methods Research Data
We document the prevalence and variety of frauds committed by investment managers. We show that prior legal and regulatory violations, conflicts-of-interest, and monitoring disclosures available via the Security and Exchange Commission’s Form ADV are useful for predicting fraud. Additional tests show that fraud by rogue employees is more predictable than firm-wide fraud, but both types of fraud are significantly predictable. We revisit the fraud prediction model of Dimmock and Gerken (2012) and test its performance out-of-sample (using fraud cases discovered since that article’s publication). We find the model has significant predictive power for the out-of-sample cases. To encourage ...
Social Media Information And Analyst Forecasts, 2018 Sacred Heart University
Social Media Information And Analyst Forecasts, Mahfuja Malik, Rajib Hasan, Abu S. Amin
In the past decade, social networking has changed the landscape of information dissemination. The rapid diffusion of social media services such as Facebook and Twitter is unprecedented and offers immense possibilities for corporations to communicate with, and engage core stakeholders in, various business decisions. In this study, we investigate whether social media play any role as a source of information for financial analysts. We specifically focus on information revealed on the official Facebook pages of S&P 500 firms. We define information content on a Facebook page as the total number of posts by the corporations and the comments, likes ...
Estimating The Cost Of Equity In Emerging Markets: A Case Study, 2018 Sacred Heart University
Estimating The Cost Of Equity In Emerging Markets: A Case Study, Benoit Boyer, Ralph Lim, Bridget Lyons
A firm's weighted average cost of capital is an integral component in capital budgeting decisions and in assessment of the firm's enterprise and equity value. Estimation of the cost of equity is a key component in determining the overall cost of capital. The calculation of the cost of equity for U.S. based corporations is relatively straightforward and is most often estimated as a function of the U.S. risk-free rate, the firm's beta value, and an estimate of the average risk premium associated with equity investments compared to risk free assets. Since U.S. financial markets ...
Passive Investors, 2018 University of Pennsylvania Law School
Passive Investors, Jill E. Fisch, Asaf Hamdani, Steven Davidoff Solomon
The increasing percentage of the modern capital markets owned by passive investors – index funds and ETFs – has received extensive media and academic attention. This growing ownership concentration as well as the potential power of passive investors to affect both corporate governance and operational decision-making at their portfolio firms has led some commentators to call for passive investors to be subject to increased regulation and even disenfranchisement. These reactions fail to account for the institutional structure of passive investors and the market context in which they operate. Specifically, this literature assumes that passive investors compete primarily on cost and that, as ...
The Competitive Landscape Of High-Frequency Trading Firms, 2018 Singapore Management University
The Competitive Landscape Of High-Frequency Trading Firms, Ekkehart Boehmer, Dan Li, Gideon Saar
Research Collection Lee Kong Chian School Of Business
We examine product differentiation in the high-frequency trading (HFT) industry, where the “products” are secretive proprietary trading strategies. We demonstrate how principal component analysis can be used to detect underlying strategies that are common to multiple HFT firms, and show that there are three product categories with distinct attributes. We study how HFT competition in each product category impacts the market environment, presenting evidence that indicates how it influences the short-horizon volatility of stocks as well as the viability of trading venues.
Shareholder Litigation And Corporate Disclosure: Evidence From Derivative Lawsuits, 2018 Hong Kong University of Science and Technology
Shareholder Litigation And Corporate Disclosure: Evidence From Derivative Lawsuits, Thomas Bourveau, Yun Lou, Rencheng Wang
Research Collection School Of Accountancy
Using the staggered adoption of universal demand (UD) laws in the United States, we study the effect of shareholder litigation risk on corporate disclosure. We find that disclosure significantly increases after UD laws make it more difficult to file derivative lawsuits. Specifically, firms issue more earnings forecasts and voluntary 8-K filings, and increase the length of management discussion and analysis (MD&A) in their 10-K filings. We further assess the direct and indirect channels through which UD laws affect firms' disclosure policies. We find that the effect of UD laws on corporate disclosure is driven by firms facing relatively higher ...
Three Essays On Structural Models, 2018 The University of Western Ontario
Three Essays On Structural Models, Xinghua Zhou
Electronic Thesis and Dissertation Repository
My thesis includes three papers on contingent claims valuation of corporate securities using structural models of credit risk. Our study focuses on structural models and their applications in estimating damages in security class actions, option pricing and warrant pricing. Securities class actions typically involve some misrepresentation by a firm that overstates its true value. In securities class actions econometric models are used to assess damages to shareholders. However, studies on measuring damages for debt-holders are limited. My first paper uses a modified Merton framework to measure the impact of misrepresentation on the value of other components (e.g., debt, warrants ...
The Wall Street Gap: A Theoretical Analysis Of Company Valuation Discrepancy, 2018 University of San Diego
The Wall Street Gap: A Theoretical Analysis Of Company Valuation Discrepancy, Peter Twomey
Undergraduate Economic Review
Examination of prior research suggests that affiliated sell-side analysts are subject to conflicts of interest that cause them to issue optimistically biased stock recommendations for investment banking clients. Using a sample of public technology companies, I find that analysts have a theoretical discrepancy of up to 26% when valuing companies using a discounted cash flow model, and a 19-22% theoretical discrepancy when using comparable company analysis. I showcase how conventional valuation methodologies can allow sell-side analysts significant leeway that can be used to further unethical agendas and draw conclusions around the usefulness of regulatory intervention in the financial services industry.
Executive Portfolio Diversification Through Dividends, 2018 Utah State University
Executive Portfolio Diversification Through Dividends, Janette Goodridge
All Graduate Plan B and other Reports
In recent decades, many managers and executives have received company stock and stock options as a portion of their pay. As the incidence of this phenomenon increased, it became evident that insiders needed a way to diversify their holdings. One way this could be accommodated is through the issuance of dividends. This paper examined how executive stock ownership and managerial power impacted a firm’s dividend policy. Specifically, it examined the power of an executive as measured by the G index. It further took into account the current level of ownership for a particular manager, as well as the value ...
Cultural Disparity And The Impact On Work Life Balance, 2018 University of South Carolina - Columbia
Cultural Disparity And The Impact On Work Life Balance, Bryan Campbell
This research examines the differences in work life balances between varying countries around the world. In order to do so, a proxy index was created by investigating a portion of questions from respondents of the World Values Survey. Comparing this to Hofstede's Insights on National Culture allowed for a unique perspective as to whether the country individualism ratings could then be used to assert a relationship between these metrics.
Acquisitions: Walmart Vs Amazon, 2018 University of Arkansas, Fayetteville
Acquisitions: Walmart Vs Amazon, Scott Sims
Finance Undergraduate Honors Theses
The retail industry is in the process of undergoing major change. Historically big box brick and mortar strategies have dominated, but this is changing in the age of impatience and instant gratification. As consumers want items more conveniently, online retail has taken hold with no semblance of anticipated decline. At the forefront of this transformation are two industry giants: Walmart and Amazon. Walmart finds itself on the side of brick and mortar with 11,718 physical retail locations worldwide. Amazon is dominating the online retail space with control of a staggering 44% of all US e-commerce sales in 2017. These ...
Valuing Downstream Oil & Gas Companies: The Case Of Phillips 66, 2018 University of Arkansas, Fayetteville
Valuing Downstream Oil & Gas Companies: The Case Of Phillips 66, Taylor Robertson
Finance Undergraduate Honors Theses
While oil and gas prices remain volatile and often uncertain, they can provide key insight to businesses within the industry. In fact, oil and gas companies are considered to be more linked to oil prices than other day to day operations. In this paper, I will illustrate the relationship oil prices and crack spreads have on downstream oil and gas companies, specifically Phillips 66. Additionally, the Capital Asset Pricing Model and Fama & French 3-factor Model are evaluated to determine the best method to value a downstream oil and gas company. To do this, I will regress all factors against Phillips ...
Ethereum And The Sec: Why Most Distributed Autonomous Organizations Are Subject To The Registration Requirements Of The Securities Act Of 1933 And A Proposal For New Regulation, 2018 Texas A&M University School of Law
Ethereum And The Sec: Why Most Distributed Autonomous Organizations Are Subject To The Registration Requirements Of The Securities Act Of 1933 And A Proposal For New Regulation, Tiffany L. Minks
Texas A&M Law Review
In a world full of new technology, the risk of fraud is constantly increasing. In the securities industry, this risk existed long before the use of technology. Congress enacted the Securities Act of 1933 to combat the risk of fraud and misrepresentation in the sale of securities. By requiring full disclosure, investors have the opportunity to make informed decisions prior to investing. However, Distributed Autonomous Organizations (“DAOs”), through the use of blockchains and smart-contracts, engage in the sale of securities without fully disclosing the risks or complying with the registration requirements of the Securities Act of 1933. Compliance with the ...
Mind The Gap(S): Solutions For Defining Tipper-Tippee Liability And The Personal Benefit Test Post-Salman V. United States, 2018 J.D. Candidate, Fordham University School of Law, 2018; LLM Candidate, Universidad Pontificia Comillas
Mind The Gap(S): Solutions For Defining Tipper-Tippee Liability And The Personal Benefit Test Post-Salman V. United States, Matthew Williams
Fordham Journal of Corporate & Financial Law
The Supreme Court’s decision in Salman v. United States reaffirmed (and indeed, clarified) the central holding of Dirks v. SEC that no additional pecuniary or reputational gain is needed when an insider gives information to a “trading relative or friend.” While this was considered a win for prosecutors, the Court chose to abstain from considering more complex questions regarding tipper-tippee liability. Namely, the Court provided no guidance on what constitutes a “friend” or “trading relative” nor how a tippee “should know” whether information was improperly disclosed. Without any clear standards, prosecutors and courts have wide discretion to determine whether ...
Can Banks Placate Knowledgeable Depositors By Offering Higher Interest Rates During A Banking Crisis?, 2018 University of Canterbury
Can Banks Placate Knowledgeable Depositors By Offering Higher Interest Rates During A Banking Crisis?, Glenn Boyle, Roger D. Stover, Amrit Tiwana, Oleksandr Zhylyevskyy
Economics Working Papers
Using a conjoint analysis of 417 finance professionals from six countries, we find no evidence that higher interest rates cause knowledgeable depositors to moderate their withdrawals during a banking crisis. In fact, intended withdrawals are positively correlated with expected interest rate changes. After accounting for endogeneity, this relationship disappears, consistent with the attractiveness of higher returns being offset by increased doubts about bank solvency. The withdrawal decisions of finance professionals are also independent of their personal characteristics, but they appear to place considerable store on deposit insurance generosity and the presence of a formal insurance fund.
Financial Analysis Of Cdw Corporation, 2018 Olivet Nazarene University
Financial Analysis Of Cdw Corporation, Sydney Harris, Nicholas Rumke, Jacob Flynn, Quinton Ranzau, Herbi Miller
Scholar Week 2016 - present
CDW Corporation, based in Lincolnshire, Illinois, has been in business for the past 30 years. Over the past five years, the company has gone public and acquired a United Kingdom-based company to expand its international commerce. As an IT re-seller and solution provider to small-, medium-, and large-sized businesses, CDW is able to create comparative advantages against its competition and increase market share. However, the increase in both scale and scope of its operations has come with a worrisome cost, added debt. As a result of our financial analysis for the suitability of an investment, our recommendation is to hold ...