From Chrysler And General Motors To Detroit, 2014 University of Pennsylvania Law School
From Chrysler And General Motors To Detroit, David A. Skeel Jr.
In the past five years, three of the most remarkable bankruptcy cases in American history have come out of Detroit: the bankruptcies of Chrysler and General Motors in 2009, and of Detroit itself in 2012. The principal objective of this Article is simply to show that the Grand Bargain at the heart of the Detroit bankruptcy is the direct offspring of the bankruptcy sale transactions that were used to restructure Chrysler and GM. The proponents of Detroit’s “Grand Bargain” never would have dreamed up the transaction were it not for the federal government-engineered carmaker bankruptcies. The Article’s second ...
The (Il)Legitimacy Of Bankruptcies For The Benefit Of Secured Creditors, 2014 University of Pennsylvania Law School
The (Il)Legitimacy Of Bankruptcies For The Benefit Of Secured Creditors, Charles W. Mooney Jr.
This paper explores the legitimacy—or illegitimacy—of filing and maintaining a case under the Bankruptcy Code when the sole or principal beneficiary or beneficiaries of the case would be a secured creditor or secured creditors. In the situation posited here, the application of the usual distributional priority rules would not produce any distribution for the general, unsecured creditors of the debtor. In the prototypical case virtually all of the assets of the debtor would be subject to secured claims securing obligations that exceed the value of the collateral, i.e., the secured creditor would be undersecured and there would ...
The Broken Buck Stops Here: Embracing Sponsor Support In Money Market Fund Reform, 2014 University of Pennsylvania Law School
The Broken Buck Stops Here: Embracing Sponsor Support In Money Market Fund Reform, Jill E. Fisch
Since the 2008 financial crisis, in which the Reserve Primary Fund “broke the buck,” money market funds (MMFs) have been the subject of ongoing policy debate. Many commentators view MMFs as a key contributor to the crisis, in part because widespread redemption demands during the days following the Lehman bankruptcy led to a freeze in the credit markets. The response has been to deem MMFs a component of the nefarious shadow banking industry and to target them for regulatory reform.
Determining the appropriate approach to MMF reform has proven difficult. Banks regulators prefer a requirement that MMFs trade at a ...
Project Finance: Transactional Evidence From Australia, 2014 Bond University
Project Finance: Transactional Evidence From Australia, Michael Regan
Public Infrastructure Bulletin
The international project finance market is experiencing a period of significant change. The new Basel III capital adequacy rules will make it harder for banks to provide long-term project finance, and alternative sources of finance such as the shadow banking sector, fund managers, sovereign wealth funds, and institutional investors will take time to bridge the financing gap. In the meantime, it is difficult to source project finance for tenors beyond seven years, risk premiums are higher, and finance is difficult to source. Recent innovations in the form of the European Investment Bank’s Project Bond Initiative, and the ASEAN Infrastructure ...
Impact Of The Ceo Effect On Premiums In Mergers And Acquisitions, 2014 University of Connecticut
Impact Of The Ceo Effect On Premiums In Mergers And Acquisitions, Caitlin Duncan
Honors Scholar Theses
The rationale behind a merger or acquisition is to improve the financial performance of the acquiring firm. Many factors go into the the valuation of a company and consequently the premium paid.
This paper will examine what impact upper management, specifically the CEO, has on the valuation of a company during mergers and acquisitions. This impact, called the CEO effect, will be central to the paper. Different valuation methods of this effect, as well as firm valuations, will be analyzed and considered. Specifically, how the CEO effect affects the premium paid by the acquiring firm will be the main focus ...
The Nature Of Lessons Learned From Argentina’S 2001 Financial Crisis, 2014 Syracuse University
The Nature Of Lessons Learned From Argentina’S 2001 Financial Crisis, Emma Van Wagenberg
Syracuse University Honors Program Capstone Projects
This paper makes the argument that though Argentina’s 2001 financial crisis was influenced by several factors, it is the 1991 Convertibility Plan that most strongly pushed the nation to the point of needing outside financial assistance. Its implementation led to and worked in combination with a multitude of unexpected factors. Together, these created economic conditions that chipped away at the stability of Argentina’s economy.
Given the nature of this project, information was gathered solely through research in texts published by both supporters and critics of organizations like the International Monetary Fund. In my readings, I found that there ...
Do Market Anomalies Add Up?, 2014 East Tennessee State University
Do Market Anomalies Add Up?, Larissa C. Steinfeldt
Undergraduate Honors Theses
This is a study about abnormal characteristics in the stock market and how to successfully use them in personal portfolios. Market anomalies are unexpected excess returns that occur in relation to certain variables. Five commonly known market anomalies (market cap, price-earnings ratio, price-book value, momentum, volatility) are tested to give evidence for their presence. Existing variables are then combined in different portfolios in order to observe whether they generate greater excess returns combined rather than individually. This study will also reveal whether long-term holding is possible and how the anomalies react in bullish and bearish markets.
Lattice Methods For The Valuation Of Options With Regime Switching, 2014 University of Nevada, Las Vegas
Lattice Methods For The Valuation Of Options With Regime Switching, Atul Sancheti
UNLV Theses/Dissertations/Professional Papers/Capstones
In this thesis, we have developed two numerical methods for evaluating option prices under the regime switching model of stock price processes: the Finite Difference lattice method and the Monte Carlo lattice method.
The Finite Difference lattice method is based on the explicit finite difference scheme for parabolic problems. The Monte Carlo lattice method is based on the simulation of the Markov chain. The advantage of these methods is their flexibility to compute the option prices for any given stock price at any given time. Numerical examples are presented to examine these methods. It has been shown that the proposed ...
Corporate Headquarters Relocations Announcements: Their Incidence Ratios, Industry Distribution, And Shareholder Wealth Effects, 2014 University of Tennessee, Knoxville
Corporate Headquarters Relocations Announcements: Their Incidence Ratios, Industry Distribution, And Shareholder Wealth Effects, Bartholomew H. Rhoades
University of Tennessee Honors Thesis Projects
No abstract provided.
Politically Connected Analysts, 2014 University of Tennessee, Knoxville
Politically Connected Analysts, Michael B. Mcdonald
This dissertation examines politically-connected equity analysts, i.e., analysts that make large political donations. I find that these big donor analysts make more accurate earnings forecasts than other small donor and non-donor analysts, and the accuracy of these forecasts decreases after a big donor analyst ceases his donations. These analysts become more accurate after they become large political donors, suggesting their enhanced performance derives from an advantage gained via their political activity. These results are stronger when (i) the analyst works or lives in the state represented by the benefiting politician, and (ii) the benefiting politician serves on a Congressional ...
2008 Stock Market Collapse: A Financial Institution Perspective, 2014 Iowa State University
2008 Stock Market Collapse: A Financial Institution Perspective, Will Pickerign
Symposium on Undergraduate Research and Creative Expression
This presentation consists of a fully detailed analysis of financial institution's role in the stock market crash of 2008. The presentation will remind us of the setting of the economy and financial industry before the crash, note key financial institutions related to the market fall, highlight past financial activities by institutions that resulted in the crash, examine financial institution's reaction to the crash, detail the current state of financial institutions, prepare us for the future of financial institutions, and summarize the presentation in a conclusion.
Trapped Cash: When Is A Dollar Not Worth A Dollar?, 2014 Sacred Heart University
Trapped Cash: When Is A Dollar Not Worth A Dollar?, Russell Engel, Bridget Lyons
Business Faculty Publications
During 2013 the concept of “trapped cash” garnered heightened attention as reports of Dell, Apple and other firms holding massive cash levels outside the US surfaced. So called “trapped cash” refers to cash and liquid investments held by subsidiaries located outside the United States. Firms with overseas subsidiaries located in jurisdictions where the tax rate is lower than the rates in the US can reduce taxes by attributing profits to foreign locales. But bringing the cash back to the US subjects the funds to the US corporate tax rate, less credit for foreign income taxes paid.
The House Ways and ...
Incentivizing Credit Rating Agencies Under The Issuer Pay Model Through A Mandatory Compensation Competition, 2014 University of Maryland Francis King Carey School of Law
Incentivizing Credit Rating Agencies Under The Issuer Pay Model Through A Mandatory Compensation Competition, Robert J. Rhee
Credit rating agencies are important institutions of the global capital markets. If they had performed properly, the financial crisis of 2008-2009 would not have occurred. This article offers the simplest fix proposed thus far, and it is contrarian. This Article accepts the central role of rating agencies in the regulation of bond investments, the realities of a duopoly, and the issuer-pay model of compensation. The status quo is the baseline. The role of regulation should be to create the conditions necessary to induce competition. This article proposes that a small, recurring portion of revenue earned by the largest rating agencies ...
Two Essays On Stock Repurchases And Insider Trading, 2014 University of Nebraska - Lincoln
Two Essays On Stock Repurchases And Insider Trading, Noel Pavel Nangatie Jeutang
Dissertations and Theses from the College of Business Administration
The first essay examines how the outcome of prior repurchasing activity influences future repurchasing decisions. We find strong evidence that future decisions to repurchase equity are negatively influenced by poorly timed past repurchases. Specifically, we show that the past losses on stock repurchases reduce the propensity to engage in additional repurchases in the future. We find almost no evidence that past gains on repurchases positively or negatively influence future repurchasing activity. These results are robust to various firm characteristics, estimation and sampling methods. Further analyses show that losses on past repurchases influence dividend policy. We show that the dividend-repurchase substitution ...
Fannie Mae And Freddie Mac: What's Next?, 2014 The University of Maine
Fannie Mae And Freddie Mac: What's Next?, Zachary D. Porter
The purpose of this research was to explore the mortgage market in the United States and determine an effective plan of action moving forward. The US experienced a major housing crisis in 2007-2008. As a result, the market has been under significant scrutiny. At the heart of this debate are the two major lending institutions, Fannie Mae and Freddie Mac. The crisis has caused many politicians to call for an overhaul of the US mortgage market, a phasing out of the two agencies, and a shift in the market toward the private sector. A bipartisan proposal in March 2014 addressed ...
Single Point Of Entry And The Bankruptcy Alternative, 2014 University of Pennsylvania Law School
Single Point Of Entry And The Bankruptcy Alternative, David A. Skeel Jr.
This Essay, which will appear in Across the Great Divide: New Perspectives on the Financial Crisis, a Brookings Institution and Hoover Institution book, begins with a brief overview of concerns raised by the Lehman Brothers bankruptcy about the adequacy of our existing architecture for resolving the financial distress of systemically important financial institutions. The principal takeaway of the first section is that Title II as enacted left most of these issues unanswered. By contrast, the FDIC’s new single point of entry strategy, which is introduced in the second section, can be seen as addressing nearly all of them. The ...
Confronting The Peppercorn Settlement In Merger Litigation: An Empirical Analysis And A Proposal For Reform, 2014 University of Pennsylvania Law School
Confronting The Peppercorn Settlement In Merger Litigation: An Empirical Analysis And A Proposal For Reform, Steven M. Davidoff, Jill Fisch, Sean J. Griffith
Shareholder litigation challenging corporate mergers is ubiquitous, with the likelihood of a shareholder suit exceeding 90%. The value of this litigation, however, is questionable. The vast majority of merger cases settle for nothing more than supplemental disclosures in the merger proxy statement. The attorneys that bring these lawsuits are compensated for their efforts with a court-awarded fee. This leads critics to charge that merger litigation benefits only the lawyers who bring the claims, not the shareholders they represent. In response, defenders of merger litigation argue that the lawsuits serve a useful oversight function and that the improved disclosures that result ...
Bankers And Chancellors, 2014 University of Pennsylvania Law School
Bankers And Chancellors, William W. Bratton, Michael L. Wachter
The Delaware Chancery Court recently squared off against the investment banking world with a series of rulings that tie Revlon violations to banker conflicts of interest. Critics charge the Court with slamming down fiduciary principles of self-abnegation in a business context where they have no place or, contrariwise, letting culpable banks off the hook with ineffectual slaps on the wrist. This Article addresses this controversy, offering a sustained look at the banker-client advisory relationship. We pose a clear answer to the questions raised: although this is nominally fiduciary territory, both banker-client relationships and the Chancery Court’s recent interventions are ...
The Limits Of The Market-Wide Limits Of Arbitrage: Insights From The Dynamics Of 100 Anomalies, 2014 Singapore Management University
The Limits Of The Market-Wide Limits Of Arbitrage: Insights From The Dynamics Of 100 Anomalies, Hieiko Jacobs
Research Collection BNP Paribas Hedge Fund Centre
Are anomalies strongest when limits of arbitrage are widely considered to be greatest? We empirically explore this theoretically deducted prediction. We first identify, categorize, and replicate 100 anomalies in the cross-section of expected equity returns. We then comprehensively study their dynamic interaction with popular proxies for time-varying market-level arbitrage conditions. Our findings reveal a surprisingly weak role of commonly employed measures of market-wide arbitrage risks and constraints. Even though this “big picture” evidence is by no means conclusive, our findings might potentially be best interpreted as supporting the growing literature which uncovers some shortcomings of the limits to arbitrage argument.
Ethics And Market Economic System: A General Review And A Survey, 2014 Walden University
Ethics And Market Economic System: A General Review And A Survey, Reza G. Hamzaee
International Journal of Applied Management and Technology
Recent global recession has motivated this predominantly historical and exploratory research of thoughts and perceptions. A continuous planning of governmental correction of any market failure, such as various types of externalities and information asymmetry, has been strongly recommended by the pioneers of free enterprise systems. Capitalism—in which private ownership of means of production, physical capital, human capital, financial capital, brand-name capital, social capital, land, and mineral deposits are all protected by law without implementation of a series of certain evolving ethical standards and principles—may not continue to be the same efficient system as implied to be by the ...