Corporate Finance Commons^™

The Role Of Social Enterprise And Hybrid Organizations, Ofer Eldar

Faculty Scholarship

Recent years have brought remarkable growth in hybrid organizations that combine profit-seeking and social missions. Despite popular enthusiasm for such organizations, legal reforms to facilitate their formation and growth—particularly, legal forms for hybrid firms—have largely been ineffective. This shortcoming stems in large part from the lack of a theory that identifies the structural and functional elements that make some types of hybrid organizations more effective than others. In pursuit of such a theory, this Article focuses on a large class of hybrid organizations that has been effective in addressing development problems, such as increasing access to capital and improving employment …

The Importance Of Internal Controls, Singapore Management University

Research@SMU: Connecting the Dots

Professor Goh Beng Wee investigates the benefits and consequences of internal controls to corporate organisations.

See the papers:

• Internal controls and conditional conservatism
• Internal control and operational efficiency

Short-Termism And Corporate Myopia: The Values Assigned By The Market To Short-Term And Long-Term Firms, Justin Alexander

CMC Senior Theses

Short-termism and myopia on the part of corporate managers, analysts, and investors have created a business environment driven by the excessive focus on short-term results and the need to meet earnings targets at the expense of long-term value creation. These are accompanied by numerous consequences, including the potential for short-term-oriented firms, particularly in the U.S., to lag behind global long-term-oriented firms, as well as the potential for short-term mindsets in the corporate world to catalyze financial crises. In this paper, I demonstrate that the market generally assigns higher values to long-term firms rather than short-term ones. This is evidenced by …

Is Silence The Answer?, Gator Adams

CMC Senior Theses

This study examines the relationship between company management guidance, and ex-ante crash risk over the duration of 2008(Jan 2006-Dec 2009) financial crisis using the implied volatility skew, which is based upon ex-ante volatility implied by the pricing model developed by Black-Scholes (1973). The study finds that over the duration of this crisis period, management guidance decreases with a rise in ex-ante crash risk. Further, the study provides evidence on the relationship of management guidance and earnings volatility, and how that is affected by a firm's industry product concentration based on the Herfindahl-Hirschman Index (HHI) score.

Stock Returns And Industrial Production: A Sectoral Analysis, Griffin Lazarus

CMC Senior Theses

This paper analyzes the relationship between stock returns and future industrial production growth rates from 1926-1940. It replicates the work of Fama (1990) and Schwert (1990) with the intent to see if the relationship continues to hold using sector data. Furthermore, this paper focuses on the 1926-1940 sample period to explore how the relationship is affected by the stock market crash of 1929. It is expected that the relation will be weak for the industry sectors experiencing strong growth prior to the crash. The results indicate that the relationship between stock returns and future industrial production growth rates persists on …

Australian Real Estate Stock Reactions To Firb Regulation Changes, Henry Wei

CMC Senior Theses

This study analyzes the share price reactions to real estate development and building/construction materials corporations in relation to FIRB rule changes. It appears companies as a whole were indifferent to the rule changes; however individual securities returns were wildly different. These findings suggest that the FIRB rule changes had a mixed effect on different corporations possibly based on their exposure to the Australian real estate market.

The Risk-Return Characteristics And Diversification Benefits Of Fine Wine Investment, Tania Salomon

CMC Senior Theses

This thesis evaluates the risk-return characteristics and diversification benefits of fine wine investment. It compares the historical performance of wine to that of equity, fixed income, real estate, and commodities. I calculate the correlation, volatility, and expected returns of these assets to examine whether adding wine to a portfolio increases its risk-adjusted return. I do this through the Markowitz portfolio optimization technique. The findings suggest that wine has a low correlation with traditional assets, providing diversification benefits. My results also show that adding wine to a portfolio increases its risk-adjusted return only when there is an allocation constraint of 0 …

Helca Mining Company, Claire Dalman

Undergraduate Theses, Professional Papers, and Capstone Artifacts

No abstract available.

A Quantitative Examination Of The Relationship Between Age, Gender, And Burnout In Public Accounting Professionals In A United States National Firm, Jamie Stowe

Doctoral Dissertations and Projects

Scholars and practitioners agree burnout is a significant problem plaguing the public accounting industry. Burnout is a condition that results from long periods of excessive strain on personal resources, and is often found in public accounting professionals due to the high stress and deadline-driven environment. As the causes for burnout are better understood, the focus has turned to why some individuals are more likely to burnout than others. Identifying who has a tendency to burnout can only help in the quest for solutions. The purpose of this correlational quantitative study was to test the theoretical framework of Maslach and Jackson …

Restatement Vs Revision: A Case Study, Benoit Boyer, Danny A. Pannese, Alan L. Delfavero

WCBT Faculty Publications

There had been many recent cases of restatements of financial statements by US Corporations. Recently an article in the Wall Street Journal mentioned restatements by Bank of America, Nike and Alphabet among the 663 companies that filed financial revisions or restatements last year. Interestingly the frequency of these errors has more than doubled since 2002, when the Sarbanes-Oxley corporate governance law was enacted, partly to increase managerial accountability. We will also examine what are the differences between restatements and revisions. We will examine what are the most common mistakes. Over half of last year's corrections involved debt and equity, cash …

Customer-Supplier Relationships And Corporate Tax Avoidance, Ling Cen, Edward L. Maydew, Liandong Zhang, Luo Zuo

Research Collection School Of Accountancy

We investigate whether firms in close customer-supplier relationships are better able to identify and implement tax avoidance strategies via supply chains. Consistent with our prediction, we find that both principal customers and their dependent suppliers avoid more taxes than other firms. Further analysis suggests that principal customers and dependent suppliers likely engage in tax strategies involving shifting profits to tax haven subsidiaries. Moreover, tax benefits appear to explain both principal customer firms’ and dependent supplier firms’ organizational decisions. Overall, our study provides evidence of the importance of tax avoidance as a source of gains from these relationships.

Money Power In Politics, Jonathan Peterson Fisher

Senior Projects Spring 2017

Money power in politics has been bolstered over the last thirty years thanks to Supreme Court decisions that hinder the Federal Election Commission’s ability to regulate financial influences on campaigns. Increases in corporate ability to impact campaigns through independent expenditures are principally against democratic values as they create a political climate of inequality favoring wealthy speakers. Additionally, money power’s influences on campaigns lead to impacting policy both directly through access to politicians and indirectly through the broad success of pro-contributor candidates. With an inability to govern over money power in elections comes a trend of anti-majoritarian policies that are inherently …

Exploring The World Of Corporate Finance, Singapore Management University

Research@SMU: Connecting the Dots

Professor Wang Rong delves deep into the complex world of international corporations to understand how they and their investors make decisions about money.

See the papers:

• Corporate financial policy and the value of cash
• Analysts' industry expertise

Who’S Watching The Auditors?, Singapore Management University

Research@SMU: Connecting the Dots

Professor Lim Chee Yeow is studying whether the provision of non-audit services affects the independence of auditors and the quality of their audit work.

See the papers:

• Non-audit service fees and audit quality: The impact of auditor specialization
• Effects of national culture on earnings quality of banks
• The price contagion effects of financial reporting fraud and reputational losses: Evidence from the individual audit partner level

The Effect Of Family Ownership On Financing Decisions Of Listed Vietnamese Companies, Trang Tran

ECU Posters

The poster is a visualisation of my research proposal. Family firms play an important role in the global economies, especially in Vietnam. There have been studies on family firms' financing decisions; however, the results were mixed. On the one hand, family shareholders have strong control motives. Hence they are argued to employ more debt because debt is a non-control diluted security. On the other hand, family shareholders are risk averse, and have incentives to pass down their businesses. Thus, they may prefer equity since debt incorporates bankruptcy risks. The literature gap calls for a demand of investigating how family ownership …

Asynchronous Signaling In Global Equity Markets: Based On Opening Times., Huijian Dong

USF St. Petersburg campus Faculty Publications

This paper employs cointegration tests to identify the impacts of sequential opens of global equity market among the equity indices. We use the daily data of 31 major equity markets and explore the comovement relationship according to the sequence of the market open. This study also examines the impact of the 2008 global financial crisis to such comovement relationship. Our results indicate that the markets in Europe-Middle East, Asia-Pacific and Latin America, are less affected by the levels of earlier opens of other markets. After the end of 2007, the global equity market comovement pattern changed significantly, yet the interdependence …

Ownership And Identities Of The Largest Shareholders And Dividend Policy: Evidence From Vietnam, Trien Vinh Le, Trang Huyen Le

Research Collection School Of Accountancy

This study investigates the relationship between the level of shareholdings and identities of the largest shareholders, and cash dividend policy. The study is conducted with a sample of 180 firms listed on Vietnam stock exchange markets from 2009 to 2013. The fixed effect model is employed to analyze the balanced panel data. The results show that the higher the level of holdings by the largest shareholders, the lower the dividend payout. Moreover, companies with the State and Foreign investors as the largest shareholders have higher dividend payout ratio than companies with local investors and managers as the largest shareholders. The …

Regulatory Competition And The Market For Corporate Law, Ofer Eldar, Lorenzo Magnolfi

Faculty Scholarship

This article develops an empirical model of firms’ choice of corporate laws under inertia. Delaware dominates the incorporation market, though recently Nevada, a state whose laws are highly protective of managers, has acquired a sizable market share. Using a novel database of incorporation decisions from 1995- 2013, we show that most firms dislike protectionist laws, such as anti-takeover statutes and liability protections for officers, and that Nevada’s rise is due to the preferences of small firms.Our estimates indicate that despite inertia, Delaware would lose significant market share and revenues if it adopted protectionist laws. Our findings support the hypothesis that …

Too Big To Fool: Moral Hazard, Bailouts, And Corporate Responsibility, Steven L. Schwarcz

Faculty Scholarship

Domestic and international regulatory efforts to prevent another financial crisis have been converging on the idea of trying to end the problem of “too big to fail”—that systemically important financial firms take excessive risks because they profit from success and are (or at least, expect to be) bailed out by government money to avoid failure. The legal solutions being advanced to control this morally hazardous behavior tend, however, to be inefficient, ineffective, or even dangerous—such as breaking up firms and limiting their size, which can reduce economies of scale and scope; or restricting central bank authority to bail out failing …

Controlling Systemic Risk Through Corporate Governance, Steven L. Schwarcz

Faculty Scholarship

Most of the regulatory measures to control excessive risk taking by systemically important firms are designed to reduce moral hazard and to align the interests of managers and investors. These measures may be flawed because they are based on questionable assumptions. Excessive corporate risk taking is, at its core, a corporate governance problem. Shareholder primacy requires managers to view the consequences of their firm’s risk taking only from the standpoint of the firm and its shareholders, ignoring harm to the public. In governing, managers of systemically important firms should also consider public harm. This proposal engages the long-standing debate whether …