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Can Corporate Sustainability Performance (Csp) Overcome Indonesia's Corporate Debt Problems?, Johnson Ferry Febrian, Nora Sri Hendriyeni 2024 Sekolah Tinggi Manajemen PPM, Indonesia

Can Corporate Sustainability Performance (Csp) Overcome Indonesia's Corporate Debt Problems?, Johnson Ferry Febrian, Nora Sri Hendriyeni

Jurnal Akuntansi dan Keuangan Indonesia

Based on IMF publications (2022), Indonesian companies have a risky debt level that may cause bankruptcy, so companies are required to make leverage adjustments to return the debt to its optimal level. In recent years, corporate sustainability performance (CSP) practices have been proven to improve performance and overcome financial problems such as debt by integrating sustainability aspects into business processes. Based on stakeholder theory and trade-off theory, this study aims to examine the effect of CSP on leverage adjustment and the role of competitive advantage, equity mispricing, profitability, and firm size in moderating this relationship. This study used a sample …


Valuing Circularity: Sustainable Finance With Real Options Methodology, Mostafa Alloub 2024 American University in Cairo

Valuing Circularity: Sustainable Finance With Real Options Methodology, Mostafa Alloub

Theses and Dissertations

This thesis presents an enhanced framework for valuing circular investments based on the Value Hill model using real options analysis. We propose a new flexible numerical methodology for valuing circularity using the Least Squares Monte Carlo simulation (LSMC) method of Longstaff and Schwartz (2001). The Value Hill model of circularity represents the course followed by the value of an asset, specifically after primary use. To validate the efficiency of our model, we conduct an empirical study on the smartphone business using the case of Apple. Results of our empirical analysis show that investing in circularity enhances financial value. Our model …


Firm Reaction To Geopolitical Crises: Evidence From The Russia-Ukraine Conflict, Asif UI Alam, Erik Devos, Zifeng Feng 2024 University of Texas at El Paso

Firm Reaction To Geopolitical Crises: Evidence From The Russia-Ukraine Conflict, Asif Ui Alam, Erik Devos, Zifeng Feng

Hunt Institute Working Paper Series

This paper investigates corporate announcements related to the Russia-Ukraine conflict of S&P 500 firms. We observe that firms withdrawing from Russia or suspending operations possess higher cash levels. Additionally, firms with more cash seem to announce withdrawals or suspensions more promptly. These findings suggest that cash levels are pivotal in how firms respond to geopolitical events. While cash does not seem influential when firms announce donations due to the conflict, it does affect the speed of such announcements. Social media also appear to play a significant role. Examining investor reactions to donation or withdrawal/suspension announcements, we report negative returns surrounding …


Unions’ Impact On Firms’ Financial Decision Making: A Look At Right-To-Work Laws And Their Impact On Firms’ Leverage Decisions, Rachana Muvvala 2024 Claremont Colleges

Unions’ Impact On Firms’ Financial Decision Making: A Look At Right-To-Work Laws And Their Impact On Firms’ Leverage Decisions, Rachana Muvvala

CMC Senior Theses

I study the impact of unions on firms’ financial decision making by exploring their capital structure, specifically leverage. I test two opposing hypotheses to understand the relationship between unions and firms’ leverage: (1) the bargaining hypothesis which suggests that firms use higher leverage as a bargaining device with unions, and (2) the crowding-out hypothesis which suggests that firms have lower leverage because unions crowd out their debt capacity due to their perceived riskiness. Focusing on the 2007 to 2022 period, I examine right-to-work (RTW) laws, since they are exogenous shocks that decrease union power in five different states. Then, I …


Market Reaction Test On Banks & Brokers Based On Bitcoin Price History. A Look At National Commercial Banks And Security Broker, Exchanges, And Service Stocks Following The Most Volatile Swings In Bitcoin’S Price., Payton Earl 2024 Claremont Colleges

Market Reaction Test On Banks & Brokers Based On Bitcoin Price History. A Look At National Commercial Banks And Security Broker, Exchanges, And Service Stocks Following The Most Volatile Swings In Bitcoin’S Price., Payton Earl

CMC Senior Theses

This paper examines if there is an inverse correlation between Bitcoin’s most volatile price swings and national commercial banks and security brokers, exchanges and service companies performance. Company performance in the dataset is measured by Cumulative Abnormal Returns during 2021 within a two-day period where Bitcoin has had the most significant uptick and downtick events. Using a market-adjusted model for my regression, it is concluded that Bitcoin’s largest uptick event did indeed have an inversely negative effect on traditional banks and trading securities companies, as the Cumulative Abnormal Returns were negative for my 107 observations and the event was statistically …


Factores Que Dificultan La Rentabilidad Y Estabilidad Financiera De Las Pymes Del Sector Mobiliario En Bogotá, Duván Norberto Contreras Solaque, Ruddy Lorena Guevara Méndez 2024 Universidad de la Salle, Bogotá

Factores Que Dificultan La Rentabilidad Y Estabilidad Financiera De Las Pymes Del Sector Mobiliario En Bogotá, Duván Norberto Contreras Solaque, Ruddy Lorena Guevara Méndez

Maestría en Finanzas

Desde la literatura se identifican elementos que dificultan el normal funcionamiento de las Pymes como: falta de planeación estratégica, escasa profesionalización del talento humano, crisis económicas a nivel nacional e internacional, dificultad de acceso al sistema financiero, entre otros; lo anterior no les permite tener estabilidad y generar rentabilidad en el mercado. Por estas razones, el propósito de la presente investigación es analizar los factores que determinan la rentabilidad y la estabilidad financiera de las pymes del sector de fabricación de muebles especializado en el mobiliario institucional y de oficinas en Bogotá. La metodología está soportada desde una visión pragmática …


Análisis Comparativo De La Solvencia Empresarial Entre Startups Unicornio Y Empresas Medianas Tradicionales En Colombia, Cristian Camillo Amaya Osorio, Yesenia Andrea Álvarez Duarte 2024 Universidad de La Salle, Bogotá

Análisis Comparativo De La Solvencia Empresarial Entre Startups Unicornio Y Empresas Medianas Tradicionales En Colombia, Cristian Camillo Amaya Osorio, Yesenia Andrea Álvarez Duarte

Maestría en Finanzas

El surgimiento de las startups, empresas de nueva creación las cuales, gracias a su modelo de negocio escalable y al uso de las nuevas tecnologías, han llegado a 1.327 startups para el año 2022 en Colombia (Colombia Tech Report 2022), sin embargo, las startups unicornios colombianas (aquellas valorizadas en más de un millón de dólares) han enfrentado dificultades financieras debido a la inestabilidad política y económica mundial, lo que ha llevado a despidos masivos y cierres de operaciones en otros países. Por lo tanto, esta investigación se centra en comparar la solvencia empresarial de las startups unicornios en Colombia con …


Modelo De Valoración Financiera Para Coomeva Medicina Prepagada S.A., Angela María Suárez Galvis 2024 Universidad de La Salle, Bogotá

Modelo De Valoración Financiera Para Coomeva Medicina Prepagada S.A., Angela María Suárez Galvis

Maestría en Finanzas

Las empresas de Medicina Prepagada han adquirido relevancia en los últimos años debido a las dificultades inherentes al sistema de salud, en relación con la prestación de servicios de calidad y oportunidad en la atención. Resulta relevante realizar el ejercicio de valoración financiera, el cual funge como un indicador clave para tomar decisiones sobre si se debe continuar con una línea o modelo de negocio; adicional a ello, expone factores que impactan su valor financiero. El objetivo de este proyecto de investigación es determinar el valor financiero para Coomeva Medicina Prepagada S.A; para esto, encuentra que los modelos de flujos …


Expanding Mfw: Delaware Law Should Offer A Business Judgment Rule Safe Harbor For All Conflicted Controller Transactions, Alex Lindsey 2023 Fordham University School of Law

Expanding Mfw: Delaware Law Should Offer A Business Judgment Rule Safe Harbor For All Conflicted Controller Transactions, Alex Lindsey

Fordham Journal of Corporate & Financial Law

While courts usually defer to a board’s business decisions under the business judgment rule, courts will apply a much less deferential standard of review due to loyalty concerns if a conflicted controller is involved in a business decision such as a merger. However, in Kahn v. M & F Worldwide (“MFW”) when a squeeze out merger was challenged by a minority stockholder, the Delaware Supreme Court reviewed the transaction under the deferential business judgment rule standard because the Court found that the structure of the transaction neutralized the controller loyalty concerns. Building on this reasoning, the Court developed a checklist …


Pricing Corporate Governance, Albert Choi 2023 University of Michigan Law School

Pricing Corporate Governance, Albert Choi

Articles

Scholars and practitioners have long theorized that by penalizing firms with unattractive governance features, the stock market incentivizes firms to adopt the optimal governance structure at their initial public offerings (IPOs). This theory, however, does not seem to match with practice. Not only do many IPO firms offer putatively suboptimal governance arrangements, such as staggered boards and dual-class structures, but these arrangements have been gaining popularity among IPO firms. This Article argues that the IPO market is unlikely to provide the necessary discipline to incentivize companies to adopt the optimal governance package. In particular, when the optimal governance package differs …


Female Ceos And Investment Efficiency In The Vietnamese Market, Jun Myung SONG, Chune Young CHUNG 2023 Singapore Management University

Female Ceos And Investment Efficiency In The Vietnamese Market, Jun Myung Song, Chune Young Chung

Sim Kee Boon Institute for Financial Economics

This paper proposes female CEOs’ overconfidence and risky behavior stem from gender stereotype threats. Using two subsamples from Vietnam—firms in the Northern and Southern regions—we empirically show that female CEOs in the North, where there is less gender stereotyping, tend to overinvest relative to male CEOs. However, in the South, they are indifferent. Additional analysis reinforces the main finding that female CEOs in the North tend to take more risks even when dealing with market volatility and uncertainty (e.g., the COVID-19 pandemic). Such risky behaviors do not deteriorate firm value but, instead, possibly improve firm performance.


Esg Scores Impact On U.S. Insurance Companies’ Financial Performance, Franceska Xhafa 2023 Sacred Heart University

Esg Scores Impact On U.S. Insurance Companies’ Financial Performance, Franceska Xhafa

Doctoral Dissertations (DBA)

This paper examines the impact of Environmental, Social, and Governance (ESG) scores on U.S. insurance companies' financial performance and is among the first to do so. The existing literature has sundry conclusions on whether there is any impact; this study intends to add to the existing literature to elucidate an answer. In this study, the financial ratio, net profit margin, is used as the dependent variable. The ESG score, governance score, and governance metrics such as the number of independent directors on the audit committee, size of the compensation committee, board size, and the number of executives are used as …


How Commonality Persists? (Through Investors' Sentiment And Attention), Chyng Wen TEE, Raja VELU, Zhaoque ZHOU 2023 Singapore Management University

How Commonality Persists? (Through Investors' Sentiment And Attention), Chyng Wen Tee, Raja Velu, Zhaoque Zhou

Research Collection Lee Kong Chian School Of Business

Studies on commonality generally attribute the variation in asset returns to the variation in order flows. In this research study, we show that order flows do not predict asset returns, rather their relationship have been static over time. Thus we model both returns and the order flows as endogenous variables, and use investors' sentiment and attention as exogenous factors via a reduced-rank regression. We provide empirical evidence to demonstrate that cross-sectional commonality in attention (sentiment) is linearly (nonlinearly) associated with both returns and order flows at the intraday level, while the sentiment and attention measures themselvesexhibit a nonlinear mutual relationship, …


Does Corruption Matter On Corporate Payouts In The Covid Era?, Hasan Tekin 2023 Karabuk University - Turkiye

Does Corruption Matter On Corporate Payouts In The Covid Era?, Hasan Tekin

Bulletin of Monetary Economics and Banking

This article investigates how corruption (COR) and the COVID-19 (COV) pandemic affect corporate payout decisions. The sample contains 13,865 firm-years over 2012-2020 and 1,950 firms from 18 Muslim countries. Empirical findings show that neither COR nor COV drives dividends (DIV) and repurchases (REP). However, COV x COR negatively and significantly influences DIV. Namely, firms in highly corrupted Muslim countries have higher DIV during the pandemic–the picture changes in the COVID era. Particularly, firms in higher corrupt countries have higher DIV, which aligns with the substitute model of agency costs, but COR does not affect REP in the pandemic …


Analysis Of Us Airline Stocks Performance Using Latent Dirichlet Allocation (Lda), Amina Issoufou Anaroua 2023 Embry Riddle Aeronautical University

Analysis Of Us Airline Stocks Performance Using Latent Dirichlet Allocation (Lda), Amina Issoufou Anaroua

Beyond: Undergraduate Research Journal

Various events, such as changes in the interest rate or the hijacking of a commercial aircraft, can lead to significant shifts in airline stock performance. This study aimed to measure the impact of aviation-related news announcements on the stock performance of US airlines, focusing on different topics. The dataset included aviation news covering airlines, airports, regulations, safety, accidents, manufacturers, MRO, incidents, aviation training, general aviation, and others obtained from Aviation Voice. To uncover patterns that could explain the movements of US airline stocks, a natural language processing technique called Latent Dirichlet Allocation (LDA) was employed. The process involved text mining …


Leadership Behaviors, Practices, And Sytles In Mergers And Acquisitions In The U.S. Technology-Based Organizations: A Qualitative Study, SUSAN E. GLOVER 2023 University of Texas at Tyler

Leadership Behaviors, Practices, And Sytles In Mergers And Acquisitions In The U.S. Technology-Based Organizations: A Qualitative Study, Susan E. Glover

Human Resource Development Theses and Dissertations

Leaders guide and shape the success of mergers and acquisitions (M&A) to meet an organization’s goals and objectives. In this study, I explored the role of leadership during M&A and the effect of different leadership behaviors, practices, and styles (BPS) on different organizational cultures during M&A. This study explored the contribution of leadership BPS on M&A outcomes within an organization with a robust and innovative culture. I focused on the human capital investment strategies of M&A integration concerning different leadership BPS utilized to improve the success rate of M&A goals and objectives. I concentrated on technology-based organizations because they are …


Public Communication Of Audit Risks And Related-Party Transactions: Evidence From China, Ole-Kristian HOPE, Heng YUE, Qinlin ZHONG 2023 Singapore Management University

Public Communication Of Audit Risks And Related-Party Transactions: Evidence From China, Ole-Kristian Hope, Heng Yue, Qinlin Zhong

Research Collection School Of Accountancy

This paper examines whether and how firms' engagement in related-party transactions (RPTs) is shaped by public communication of audit risks as required by the expanded audit report. Using the phased regulatory changes in China and a difference-in-differences design with firm fixed effects and matching, we find that firms significantly reduce their RPTs after the adoption of expanded audit reports (EARs). To investigate potential mechanisms, we find that (1) investor scrutiny increases after the adoption of EARs, (2) the reduction of RPTs is more pronounced when EARs are more likely to attract investor attention, and (3) the reduction of RPTs is …


Informativeness Of Key Audit Matters: Evidence From China, Beng Wee GOH, Kiat Bee Jimmy LEE, Dan LI, Muzhi WANG 2023 Singapore Management University

Informativeness Of Key Audit Matters: Evidence From China, Beng Wee Goh, Kiat Bee Jimmy Lee, Dan Li, Muzhi Wang

Research Collection School Of Accountancy

This study examines whether the key audit matters (KAMs) disclosed in expanded audit reports as a part of recent regulatory reforms are informative for investors in an emerging economy setting. Using the recent adoption of expanded audit reports for firms listed exclusively in Mainland China, we find robust evidence that the abnormal trading volume and earnings response coefficients (ERCs) are higher and that stock price synchronicity is lower during the postadoption than preadoption period. In additional tests, we find evidence that KAMs are more informative for non-state-owned enterprises (non-SOEs), smaller firms, and firms with a smaller analyst following. Finally, we …


"Just Beat It" Do Firms Reclassify Costs To Avoid The Base Erosion And Anti-Abuse Tax (Beat) Of The Tcja?, Stacie O. LAPLANTE, Christina M. LEWELLEN, Daniel P. PYNCH, Daniel M. P. SAMUEL 2023 Singapore Management University

"Just Beat It" Do Firms Reclassify Costs To Avoid The Base Erosion And Anti-Abuse Tax (Beat) Of The Tcja?, Stacie O. Laplante, Christina M. Lewellen, Daniel P. Pynch, Daniel M. P. Samuel

Research Collection School Of Accountancy

This study examines whether multinational corporations (MNCs) reclassify related-party payments to avoid the new base erosion and anti-abuse tax (BEAT). The Tax Cuts & Jobs Act of 2017 included the BEAT to combat income shifting from the U.S. to foreign entities. An exclusion in the tax law provides MNCs an incentive to reclassify related-party payments as cost of goods sold. We use a triple-difference design that leverages the BEAT filing threshold of $500 million in revenue and the parent company’s location to document increases in the unconsolidated sales of foreign subsidiaries of MNCs subject to BEAT relative foreign subsidiaries of …


Fin4260 Short-Term Financial Management, Yannick J. Roger Post 2023 Kennesaw State University

Fin4260 Short-Term Financial Management, Yannick J. Roger Post

KSU Distinguished Course Repository

This short-term financial management course is an elective for upper level, undergraduate finance majors. It focuses on working capital and treasury management topics that are vital for anyone interested in a career in corporate finance.

Short-term financial management refers to the utilization of the firm’s current assets and liabilities in order to maximize shareholder wealth and reduce financial risk. This course begins by reviewing the time value of money concepts, and the basics of financial statement analysis. The focus then shifts to short-term operating assets and short-term operating liabilities, and a discussion of the cash conversion cycle and the importance …


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