Institutional Cross-Ownership Of Peer Firms And Investment Sensitivity To Stock Price,
2022
Singapore Management University
Institutional Cross-Ownership Of Peer Firms And Investment Sensitivity To Stock Price, Young Jun Cho, Holly I. Yang
Research Collection School Of Accountancy
Theory suggests that stock price guides managers in corporate decisions as managers learn from price. We reason that cross-ownership lowers information processing costs and increases industry specialization, improving revelatory price efficiency (Bond, Edmans, and Goldstein 2012). Consistent with our expectations, we find that a firm’s investment-q sensitivity increases as its cross-ownership increases, suggesting that cross-ownership facilitates managerial learning from price and thus investment efficiency. We strengthen the causal inference by conducting a difference-in-differences analysis using financial institution mergers as an identification strategy. We also find that the increase in the investment-q sensitivity associated with cross-ownership is more pronounced for firms …
Exploring Mechanisms Insurers Employ To Set Premiums And Maximize Profitability,
2022
Liberty University
Exploring Mechanisms Insurers Employ To Set Premiums And Maximize Profitability, Brent Ferenczy
Senior Honors Theses
The insurance industry is a very complex segment of the macroeconomy. An explain will be given as to how these companies are able to maintain and maximize their profits, allowing them to remain in business. A key area in this process is the setting of premiums. This activity draws from many areas of the business model. This paper will start with a birds-eye view and telescope in, starting with standard business practices and ending with specific undertakings of insurance companies. Companies must keep adequate liquid funds. This is done mainly through forecasting cash outflows and investing their assets under management. …
Fintech And Anti-Money Laundering Regulation: Implementing An International Regulatory Hierarchy Premised On Financial Innovation,
2022
Texas A&M University School of Law (Student)
Fintech And Anti-Money Laundering Regulation: Implementing An International Regulatory Hierarchy Premised On Financial Innovation, Nicholas A Roide
Texas A&M Law Review
Innovations in financial technology (“fintech”) have rippling effects across global markets. Fintech firms utilizing virtual assets and disintermediating blockchain technology continue to rapidly grow in strength and number. As systemic risk mounts due to the inter-jurisdictional nature of fintech, antimony laundering (“AML”) regulators must search for an international answer to maintain global financial stability and protect consumers against illicit activities. A variety of solutions have appeared within local AML regulatory frameworks. These frameworks tend to function as a hierarchy with three ordered objectives: market integrity, rule clarity, and innovation. However, frameworks often place too much emphasis on market integrity and …
Major Government Customers And Loan Contract Terms,
2022
Texas A & M University - College Station
Major Government Customers And Loan Contract Terms, Daniel A. Cohen, Bin Li, Ningzhong Li, Yun Lou
Research Collection School Of Accountancy
We examine the relation between the presence of U.S. government as a major customer and a supplier firm’s loan contract terms, using major corporate customers as a benchmark. We find that firms with major government customers are associated with fewer covenants and a lower likelihood of having performance pricing provisions in their loan contracts. In contrast, we do not find such associations for firms with major corporate customers. Further, we find no evidence that the existence of major government customers is related to the supplier firm’s loan spread, security, or maturity. We conjecture that lenders benefit from the stricter monitoring …
Cds Channels Of Influence On Discretionary Accruals,
2022
Singapore Management University
Cds Channels Of Influence On Discretionary Accruals, Hao Cheng, Kian Guan Lim
Research Collection Lee Kong Chian School Of Business
Existing studies indicated that firm debt holders can use the credit default swap (CDS) market to hedge their credit risk, and thus they would reduce their monitoring of the firms, leading to largely distressed firms shirking and increasing positive abnormal earnings accruals. Besides providing insurance, however, the CDS spreads also perform price discovery of credit risk information sought by trade creditors and potential lenders who are not protected. High absolute abnormal discretionary accruals or bad earnings quality, especially negative abnormal accruals, would lead adverse CDS price signals that are very costly to the firm. This compels the firm under nondistressed …
Initial Public Offering And Optimal Corporate Governance,
2022
University of Michigan Law School
Initial Public Offering And Optimal Corporate Governance, Albert H. Choi
Law & Economics Working Papers
This paper examines the long-standing debate over whether firms have a market-based incentive to adopt optimal governance provisions at their initial public offering (IPO). Various scholars and practitioners have argued that firms that offer stock to the public with suboptimal governance structure will be penalized by the market through a lower IPO price. At the same time, others have documented empirical evidence that many IPO firms have putatively suboptimal governance provisions, such as anti-takeover provisions and dual class structure, and many, especially those with dual-class structure, enjoy a market premium at their IPO. This paper attempts to bridge this gap. …
Misreading Menetti: The Case Does Not Help You Avoid Liability For Your Own Fraud,
2022
South Texas College of Law
Misreading Menetti: The Case Does Not Help You Avoid Liability For Your Own Fraud, Val D. Ricks
St. Mary's Law Journal
Several decades ago, an incorrect legal idea surfaced in Texas jurisprudence: that business entity actors are immune from liability for fraud that they themselves commit, as if the entity is solely responsible. Though the Supreme Court of Texas has rejected that result several times, it keeps coming back. The most recent manifestation is as a construction of Texas’s unique veil-piercing statute. Many lawyers have suggested that this view of the veil-piercing statute originated in Menetti v. Chavers, a San Antonio Court of Appeals case decided in 1998. Menetti has in fact played a prominent role in the movement to …
The Influence Of Corporate Income Taxes On Investment Location: Evidence From Corporate Headquarters Relocations,
2022
University of Hong Kong
The Influence Of Corporate Income Taxes On Investment Location: Evidence From Corporate Headquarters Relocations, Travis Chow, Sterling Huang, Kenneth J. Klassen, Jeffrey Ng
Research Collection School Of Accountancy
This study examines the effects of jurisdictions’ corporate taxes and other policies on firms’ headquarters (HQ) location decisions. Using changes in state corporate income tax rates across time and states as the setting, we find that a one-percentage-point increase in the HQ state corporate income tax rate increases the likelihood of firms relocating their HQ out of the state by 16.8%, and an equivalent decrease in the HQ state rate decreases the likelihood of HQ relocations by 9.1%. Exploiting the unique tax policy features within the state apportionment system lends strong support to the interpretation that taxation drives this effect. …
Cfo Gaps: Determinants And Impact On The Corporate Information Environment,
2022
Singapore Management University
Cfo Gaps: Determinants And Impact On The Corporate Information Environment, Xia Chen, Na Li, An-Ping Lin
Research Collection School Of Accountancy
A CFO gap arises when the CFO position is left vacant for a period between the departure of the old CFO and the appointment of a new CFO. We find that CFO gaps are fairly common; over the sample period 2004–2016, approximately one-third of CFO turnovers are associated with a CFO gap, lasting on average two quarters and two months. CFO gaps are more likely for firms that face more labor market search frictions and with financial reporting and performance issues, and are less likely for firms with succession plans and with greater growth opportunities. While CFO gaps are not …
Securing Repo: Counterparty Risk And Collateral Supply Effects In The Tri-Party Repo Market,
2022
Sacred Heart University
Securing Repo: Counterparty Risk And Collateral Supply Effects In The Tri-Party Repo Market, Stephen H. Frank
Doctoral Dissertations (DBA)
I examine the co-variance between tri-party repurchase agreement (repo) spreads and proxies for collateral values and counterparty risk. Since the Global Financial Crisis of 2008 (GFC), the Federal Reserve (Fed) has taken measures to mitigate repo market instability. These measures have collectively placed the Fed astride repo markets as ongoing borrower, lender and purchaser of US Treasury and Agency securities. By analyzing the relationships between repo spreads, the US 10-year yield and the TED spread, I assess the effectiveness of Fed measures to mitigate repo market instability. Using multiple breakpoint Bai-Perron regression and Markov Switching tests, I find that these …
Conflict Or Alignment? The Role Of Return-Oriented Foreign Shareholders And Domestic Relational Shareholders In Mitigating Earnings Management,
2022
Singapore Management University
Conflict Or Alignment? The Role Of Return-Oriented Foreign Shareholders And Domestic Relational Shareholders In Mitigating Earnings Management, Toru Yoshikawa, Ignacio P. Requejo, Asli Colpan, Daisuke Uchida
Research Collection Lee Kong Chian School Of Business
This study investigates the effects of foreign return-oriented shareholders and domestic relational shareholders of Japanese companies on the earnings management behavior of their invested firms when stock option pay is adopted. We theorize that foreign shareholders seek short-term returns and do not engage in close monitoring due to an information disadvantage while domestic shareholders prevent managerial behavior that distorts information disclosure. Our findings show that managers of firms that use stock option pay engage in earnings management to increase their private financial benefits and meet capital markets’ expectations, which allows them to enhance their own reputation. However, this managerial behavior …
Uncertainty And Banks’ Security Holdings,
2022
Banking University of Ho Chi Minh City, Vietnam
Uncertainty And Banks’ Security Holdings, Van Dan Dang, Hoang Chung Nguyen
The Indonesian Capital Market Review
The paper enriches the existing literature on financial intermediaries’ operations in the face of uncertainty by empirically examining the impact of banking uncertainty on banks’ security holdings. Using bank-level data in Vietnam during 2007–2019 to compute a micro uncertainty proxy based on the dispersion of bank shocks, we document that banking uncertainty tends to enhance total security holdings at banks. Decomposing aggregate securities into disaggregate components, we find that safer investments (including government bonds and financial institution bonds) dominate the overall impact of banking uncertainty on security holdings, which completely offset a drop in the volume of riskier investments (including …
Cash Flow And Accrual Anomalies: Evidence From Borsa Istanbul,
2022
Malatya Turgut Özal University, Turkey
Cash Flow And Accrual Anomalies: Evidence From Borsa Istanbul, Emine Kaya
The Indonesian Capital Market Review
This study aims to determine the persistence of earning and its components and whether investors accurately evaluate the information related to the earning and its components. The study covers the firms operating in Borsa Istanbul between 2005-2017 time period. We sort the accruals and cash flows into five portfolios. Then, we employ linear regression and Mishkin test estimations. Moreover, we compare the asset pricing models with nine metrics in explaining the cash flow and accrual anomalies. Linear regression and Mishkin test estimations show that the persistence of earning is high. The other finding is that cash flow and accrual do …
The Impact Of Geopolitical Risk On Corporate Investment: Evidence From Turkish Firms,
2022
Marmara University, Turkey
The Impact Of Geopolitical Risk On Corporate Investment: Evidence From Turkish Firms, Omer Faruk Tan, Hakan Cavlak, Yasin Cebeci, Necati Güneş
The Indonesian Capital Market Review
This study analyzes the effects of geopolitical risk on the corporate investment of 164 Turkish manufacturing firms listed in Borsa Istanbul (BIST). The time covers the period from 2005 to 2019, applying the system Generalized Methods of Moments (GMM) estimator. The results indicate that geopolitical risk hurts corporate investment in Turkey. Under uncertainty induced by geographical risk, firms prefer to decline their investment. Additionally, financially constrained (non-dividend, small, young) firms are more negatively affected than financially unconstrained firms. Our findings are robust under alternative measures of geopolitical risk. Overall, this study reveals that geopolitical risk is a significant uncertainty affecting …
Effect Of Covid 19 Pandemic On Pharmaceutical Industry In Terms Of Inventory And Logistics Management,
2022
Maulana Abul Kalam Azad University of Technoogy
Effect Of Covid 19 Pandemic On Pharmaceutical Industry In Terms Of Inventory And Logistics Management, Shubhabrata Basu, Rimu Chaudhuri
Himalayan Research Papers Archive
The World Health Organization (WHO) declared COVID-19 a pandemic on 11th March 2020, after the outbreak that was first reported in Wuhan, China in December 2019. The COVID-19 pandemic affected world economy including the pharmaceutical sector. The health crisis unleashed in the world because of this pandemic and the attempts of various countries and organizations in the world to contain it have also fuelled the greatest economic crisis in modern history. This significant fall in world trade in goods and services have been triggered by the interruption and break down of local and global supply chains, generating high levels …
Redefining Banking Through Defi: A New Proposal For Free Banking Based On Blockchain Technology And Defi 2.0 Model,
2022
ESADE Universidad Ramón Lllul
Redefining Banking Through Defi: A New Proposal For Free Banking Based On Blockchain Technology And Defi 2.0 Model, Francesco Spinoglio
Journal of New Finance
This article aims to offer a new free banking proposal with a 100% cash ratio that uses the DeFi 2.0 model. The current monetary system, based on Central Banking with fractional reserve, has created a huge debt spiral and has distorted the entire production system, which produces deep recurring socioeconomic crises that increasingly impoverish citizens. This paper presents an innovative proposal that aims to take advantage of blockchain technology using the Defi 2.0 model. It would be a first attempt to merge centralized finance with the DeFi world, laying the foundation for a fairer and more decentralized monetary society.
Reform Of The Lebanese Public Accounting System Within The Framework Of International Accounting Standards In The Public Sector,
2022
jinan university
Reform Of The Lebanese Public Accounting System Within The Framework Of International Accounting Standards In The Public Sector, Hassan Diab
Al Jinan الجنان
Reform of the Lebanese Public Accounting System in the Context of the International Public Sector Accounting Standards (IPSASs) This study addresses the increasing challenges that the Lebanese public accounting system is facing, in light of globalization, in shifting from a cash basis to an accrual basis system, as per the International Public Sector Accounting Standards (IPSASs). Through addressing the peculiarities of the Lebanese public accounting system, the study concludes that the conversion from cash basis to accrual basis system will help boost transparency and accountability. Yet, some essential conditions are required to successfully achieve this, including: shifting from the traditional …
Takaful Insurance And Its Similarities And Differences With Traditional Insurance,
2022
jinan university
Takaful Insurance And Its Similarities And Differences With Traditional Insurance, Najlaa Al Hajj
Al Jinan الجنان
Commercial insurance or cooperative insurance (Co-Op Insurance) typically aims to reduce common risks that can happen to any type of business and to provide all kinds of protection against unforeseen circumstances. Takaful insurance has been created as an alternative choice that the public was looking for, mainly in the Arab countries for the reason that the services of the traditional insurance do not suit people’s needs especially with regard to non-compliance with sharia laws. Therefore, Takaful insurance seeks to solve this problem. It provides insurance services and programs Commercial insurance or cooperative insurance (Co-Op Insurance) typically aims to reduce common …
Chief Loophole Officer Or Chief Legal Officer: Inside Lehman Brothers—A Film Case Study About Corporate And Legal Ethics,
2022
University of Ottawa's Faculty of Law & Telfer School of Management, Fellow, Hot Docs for Continuing Professional Education, Senior Fellow, Hennick Centre for Business & Law of York University
Chief Loophole Officer Or Chief Legal Officer: Inside Lehman Brothers—A Film Case Study About Corporate And Legal Ethics, Garrick Apollon
St. Mary's Journal on Legal Malpractice & Ethics
This Article discusses the continuing legal education (CLE) visual advocacy documentary-style program, which Garrick Apollon (author of this Article) researched and developed. The case study for this CLE documentary-style program is the film Inside Lehman Brothers—a documentary film by Jennifer Deschamps which chronicles the story of the Lehman whistleblowers. The film presents Mathew Lee, former senior vice president overseeing Lehman’s global balance sheet; Oliver Budde, former in-house counsel (associate general counsel) of the Lehman Brothers; and the racialized female mid-tier manager whistleblowers, who all paid a steep price in the 2008 American subprime mortgage crisis, while many of the …
The Effects Of Environmental Corporate Social Responsibility On Financial Returns,
2022
CUNY Hunter College
The Effects Of Environmental Corporate Social Responsibility On Financial Returns, Kevin Acevedo
Theses and Dissertations
A major issue concerning companies is global warming and the impact that firms have on the environment. Companies are taking steps towards sustainability, but it is unclear if sustainable business practices are beneficial to companies’ financial performance. This paper examines the effect of environmental corporate social responsibility (CSR) of Fortune 250 companies on financial performance. The analysis reveals significant effects on financial performance, but they are inconsistent and hard to interpret.
