Digital Commons Network^™

Mechanism Design For Optimizing On-Chain Sell Order In Market Without Market Maker, Nico Pei

CMC Senior Theses

The absence of market makers alters the microstructure of the market. It’s difficult to get exposed to time-weighted prices in markets without market makers. In this paper, we delve into three mechanism designs – discrete gradual dutch auction, continuous gradual dutch auction, and variable rate gradual dutch auction – to study how to execute time-weighted sell orders on blockchain in a market without market makers. To make it simpler for readers to understand, we imagine an example of helping a close friend of Picasso to sell his 100 Picasso paintings in the next 10 years since 1970, with the private …

Revolutionizing Lithium Extraction: Analysis Of Factors Affecting Commercialization Timelines With Insights From The Shale Gas Boom, Bilge Tayyar

CMC Senior Theses

This study draws parallels between Direct Lithium Extraction (DLE) and hydraulic fracturing to highlight the transformative potential of DLE technology in the lithium industry. The comparative analysis supports the hypothesis that DLE might expedite commercialization timelines, similar to the effect hydraulic fracturing has had on traditional shale gas extraction. The study includes a regression analysis to determine the factors affecting the commercialization of conventional lithium brine extraction methods, thereby better understanding the potential changes DLE will create. The regression model, based on data from 11 projects, examines the impact of variables such as temperature range, tax rates, royalty rates, regulatory …

The Impacts Of Hype And Competition On The Valuations Of Privately-Held U.S. Software Startups, Karan Sudhir Goel

CMC Senior Theses

The impacts of internal conditions on startup valuations have been well studied, but external factors such as market hype and competition have been more restricted to public company valuation research. With soaring valuations in the Generative AI market, an analysis of the relation of hype and competition to startup valuations is timely. I test three hypotheses: (1) More hype about certain business or tech-focused topics is associated with higher valuations for startups operating in those areas (2) More competition is associated with lower valuations for startups (3) The positive effect of hype on valuations is offset by the negative effect …

Diversifying The Workforce: Women In Plumbing, Aviva Maxon

Scripps Senior Theses

Exploring the benefits and challenges of being women in plumbing through first person narratives.

Bio-Bust: Investigating Biotech Stock Factors Contributing To Abnormal Returns In The Wake Of Silicon Valley Bank's Failure, Spencer Kent

CMC Senior Theses

Following the unprecedented collapse of Silicon Valley Bank (SVB) in March 2023, this study explores abnormal stock price reactions within the biotechnology sector. As the chosen financial institution for countless Silicon Valley-type technology and healthcare firms, SVB's failure had a profound impact on small to mid-sized biotech companies. Analyzing a dataset of 180 biotech firms during a two-day event window over SVB’s collapse, I investigate whether exposure to SVB, or other factors, was the primary contributor to negative abnormal stock price reactions, considering variables such as the percentage of cash held at SVB, whether a firm maintained an active SVB …

Ai-Nvesting: An Empirical Analysis With Sector Categorization And Prompt Complexity Considerations Assessing The Predictive Power Of Chatgpt In Stock Market Forecasting, Ian J. Larson

CMC Senior Theses

Abstract

This paper investigates whether ChatGPT has any predictive power when it comes to the stock market. Since its public release in December 2022, OpenAI’s ChatGPT has become a popular tool for millions of users across the world. With new use cases being found every day, I explore whether the system has any utility at predicting where stock prices will go. Using a 10-year study window, I prompt ChatGPT to give U.S. equity picks on a one-year holding period basis, segregating its picks into 3 different category sizes across 8 directed prompts. I examine the 24 equal weight portfolios of …

The Impact Of Wars On Us Defense Stock Returns, Viksit Verma

CMC Senior Theses

This thesis examines the financial performance and market impact of defense and aerospace companies during periods of war and conflict. The study examines a sample of 9 firms representing the defense sector, and utilizes an event study methodology to assess stock returns during specific geopolitical events, namely the Russia-Ukraine War and the Israel-Hamas conflict. The study generally reveals positive abnormal returns during conflicts, indicating lower volatility and reduced market risk for the sample of defense firms compared to the broader market. All abnormal returns are statistically significant for the Russia-Ukraine War. For the Israel-Hamas conflict, abnormal returns for 4 out …

Leadership In Startups: How Founder Personality And Leadership Behaviors Impact Startup Success And Psychological Safety, Ria Passi, Ronald Riggio

CMC Senior Theses

New ventures created by entrepreneurs are crucial to the economy and to the diffusion of innovative technologies. However, startups often operate in highly uncertain environments characterized by constrained resources, lack of established processes, and complex market dynamics. Despite surges in startup investment, the failure rate for new ventures remains high, making it crucial to understand the factors that can contribute to their success. This thesis explores how founder personalities, leadership styles, and cultivating psychological safety impact startup performance and growth trajectories. Founder personality traits like openness, agreeableness, and conscientiousness are positively associated with securing funding, achieving exit opportunities, and overall …

The Effects Of Ai On Recruiting In The Accounting Field, Reina Tain

CMC Senior Theses

This work investigated the impact of AI in accounting firms, particularly on the hiring scene. As AI use increases in the accounting industry, it would have a significant impact on what types of accountants firms are starting to hire, which this paper examines. This work incorporates research found through various accounting and business-related articles that discusses the impact of AI on recruiting in accounting firms. This paper found that candidates with high knowledge of technology with excellent communication and critical thinking skills are more likely to be hired by firms. The results indicate that recruiters prefer accountants that are curious …

Nfl Positional Value In Terms Of Salary Cap Spending: Why Are Running Backs Undervalued?, Charlton Jackson

CMC Senior Theses

Running Backs over the past two decades have seen a contract value devaluation relative to other positions and the league's salary cap spending limit. The growth of running back salaries has stagnated in the past decade, and they currently fail to keep pace with the contracts for other positions. Through our empirical research, we were able to either reject or better explain existing reasoning for recent running back devaluation, such as the increase in passing volume, durability concerns, and running backs by committee. We found that the most significant change in the past 30 years of the NFL, since the …

Objectification And Meaning Transference: Does Showing More Skin Mean Less Perceived Agency For Brands?, Zachariah Schlichting

CMC Senior Theses

The purpose of this study is to explore the effects of sexual imagery in advertisements on consumers’ perceptions of brand competence and agency. The effect of a brand’s expected agency was also manipulated between two groups, high expected agency (e.g., tech companies) vs low expected agency (e.g., alcohol companies). 167 participants (M=22.48, 54% women) were recruited through Sona Systems and social media to partake in an online survey conducted through Qualtrics. Participants were randomly assigned to one of four experimental groups and shown seven fictional advertisements; four target advertisements and three deception advertisements. They were then asked to rate their …

Did Asu 2020-06 Impact Firm Corporate Financing Decisions?, Eric Sanchez

CMC Senior Theses

This research examines the influence of financial accounting standards for hybrid securities on corporate financing decisions. It uses ASU-2020-06 as a setting to test changes to the influence of moral hazard, adverse selection, and financial distress contracting costs on the likelihood of convertible bond issuances under the prior and latter accounting regimes for securities convertible into an entity's own equity.

The Impact Of International Baseball Players On Mlb Organizations: An Analysis Of Performance, Attendance, Revenue, And Valuation, 2012-2022, Aidan Booth

CMC Senior Theses

This thesis investigates the impact of international baseball players on MLB organizations. The paper uses the Sean Lahman Database focusing on team-wide statistics including performance metrics, winning percentage, and attendance. Using the Ordinary Least Squares (OLS) Regression model, the paper examines the effect of share of foreign-born players on team success, attendance, revenue, and valuation. The dataset controls for a number of variables throughout these regressions including payroll, population, stadium capacity, number of all stars on each team, and the number of competing professional sports teams in the metropolitan area in order to isolate the effect of foreign-born players on …

Driven By Change: The Impact Of Macroeconomic Shifts And Covid-19 On New Vehicle Sales, Jackson Aldrich

CMC Senior Theses

This paper examines the impact of macroeconomic factors and the COVID-19 pandemic on new vehicle sales. In order to address these two topics, a two-pronged approach was used with separate regression models. The macroeconomic variables include monthly supply of new homes, CPI for urban public transportation, unemployment rate, disposable personal income, inflation expectation, consumer sentiment, average gas prices, and total vehicle miles traveled which were regressed on total vehicle sales from 1978-2022. The regression results confirmed and supported current literature and highlighted the importance of the housing market and unemployment rate on new vehicle sales. The COVID-19 pandemic model variables …

Towards Algorithmic Justice: Human Centered Approaches To Artificial Intelligence Design To Support Fairness And Mitigate Bias In The Financial Services Sector, Jihyun Kim

CMC Senior Theses

Artificial Intelligence (AI) has positively transformed the Financial services sector but also introduced AI biases against protected groups, amplifying existing prejudices against marginalized communities. The financial decisions made by biased algorithms could cause life-changing ramifications in applications such as lending and credit scoring. Human Centered AI (HCAI) is an emerging concept where AI systems seek to augment, not replace human abilities while preserving human control to ensure transparency, equity and privacy. The evolving field of HCAI shares a common ground with and can be enhanced by the Human Centered Design principles in that they both put humans, the user, at …

Owning Green: Evaluating The Effects Of Actively Managed Sustainability Fund Ownership On Esg Scores, Caleb Young

CMC Senior Theses

The growing trend of acknowledging ESG performance as a material concern when conducting due diligence on investment opportunities has exacerbated the number of assets being managed by investors with sustainability-oriented goals. At the same time, as social and climate-related issues have become more intense, investors want to use their agency as shareholders to influence companies to act in ways that align with their values. Frequently, this can be most effectively achieved through proxy voting and corporate engagement, particularly if the fund is an active manager. This thesis explores the interaction between ESG-focused ETFs and mutual funds and their management style …

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 …

Ceo Characteristics That Lead To Extreme Outperformance: A Statistical Analysis Of William Thorndike’S “The Outsiders”, William Turner

CMC Senior Theses

What makes a high-performing CEO? What CEOs should you invest in? These are the questions that the Board of Directors, headhunters, academics, and investors all seek the answer to. This paper explores the answer to this question by examining CEO performance at the extremes. Inspired by the work of William N. Thorndike’s “The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success,” this study expands upon his methodology, employing a statistical approach to analyze a broader dataset of CEOs over the past thirty years. Using a logit model of hyper-outperforming versus hyper-underperforming CEOs, it assesses the …

Activism Aftershocks: Looking Beyond The Short-Term Stock Surges Caused By Activist Hedge Fund Campaign Announcements, Zara Vakath

CMC Senior Theses

It is well known that firms targeted by activist hedge funds experience positive abnormal stock returns during the campaign announcement window. However, the link between these short-term returns and the impact to long-term target firm performance has not been established. In this study, I find essentially no link between the positive announcement window returns and long-term performance improvements, using a variety of different methods. I examine performance changes over time and also relative to a matched sample of firms that have not been targeted by activist hedge funds. Additionally, I assess the correlation between the magnitude of short-term abnormal stock …

Capturing Value In Emerging Markets: A Real Options Perspective On Resilience And Risk, Alexander Castillo

CMC Senior Theses

This paper examines the evaluation of investment opportunities in emerging markets (EMs) through real options analysis, against the backdrop of their unique risk profiles and the recent trend of EMs exhibiting resilience in economic performance. While EMs are associated with high growth rates and infrastructure gaps, they have shown adaptability, particularly in monetary policy responses to inflation. This paper explores the sensitivity of net present value (NPV) and real options (RO) to changes in the capital asset pricing model, adapting the yield spread to capture default risk and local risk-free rates. Utilizing oil benchmark price data, the paper constructs a …

Architects Of War: The Economic And Industrial Strategies Of The Third Reich And United States Under Albert Speer And William Knudsen, Spencer David Taylor

CMC Senior Theses

This thesis presents a chronological narrative that delves into the economic and industrial underpinnings of the Second World War, focusing on the contrasting war machines of Germany and the United States. By examining the strategic decisions and outcomes shaped by two central figures, Albert Speer of Germany and William S. Knudsen of the United States, this study highlights how their approaches to war production profoundly influenced the overall trajectory and outcome of the war. Knudsen’s embodiment of the American industrial spirit and Speer’s manipulation of Germany's constrained resources illustrate the crucial roles that economic strategies played alongside military operations. The …

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 …

Corporate Decision-Making: Three Essays In Applied Finance, Mohamed Ahmed Abd El Rahman Ahmed Khashbah

CGU Theses & Dissertations

Corporate Decision-Making: Three Essays in Applied Finance.By Mohamed Ahmed Abd El Rahman Ahmed Khashbah Claremont Graduate University: 2024 This dissertation consists of three distinct chapters, each focusing on a different topic. Chapter 1 of this dissertation investigates the relative effectiveness of earnings and cash flows as predictors in corporate decision-making processes within the U.S. financial market. Drawing on two decades of comprehensive financial data from Compustat, encompassing the years 2000 to 2019 and involving 18,595 firm-year observations across 980 diverse companies, this study employs a robust methodological framework. Advanced statistical techniques, including regression and correlation analyses, alongside firm-specific time-series and …

The Identity Harmony Model Of Inclusion: Development And Test Of A New Theory, Anne Brafford

CGU Theses & Dissertations

The concept of inclusion holds unrealized potential as a guiding framework for supporting employees of all identities in achieving their potential at work and improving organizational diversity. The underdevelopment of the concept’s definition, theoretical foundation, measures, and expected outcomes has hindered its positive impact. For example, scholarly attention has focused primarily on social identity theories to define inclusion at the group level, leaving other identity types and theories underexplored. To help address these issues, Article One of this two-article dissertation synthesizes identity, self-determination theory (SDT), and inclusion literature to provide a theoretical basis for the new identity harmony model of …

Building A Cybersecurity Compliance Index Of Capabilities To Explore Strategies And Trends That Enhance Decision Making In Organizations, Juanita Dawson

CGU Theses & Dissertations

Decision-makers and company executives are required to provide authoritative and transparent information on behalf of their organizations. In securing an organization’s assets, decision-makers use the Global Cybersecurity Index (GCI) as a framework to understand cyber compliance. Although the GCI framework has been used across broad domains both domestically and internationally, the framework is considered too broad to help decision-makers in business settings gain the information needed to address the challenges of cyber compliance influencing an organization’s leadership. A key challenge is that decision-makers must often address a class of problems requiring classes of artifacts or tools, rather than a single …

Answering The “Now What?”: The Development Of A Transdisciplinary Breast Cancer Survivorship Nonprofit Organization, Vir-Iaesta Maniquiz Vergel De Dios

CGU Theses & Dissertations

Although patients are living longer or are surviving breast cancer, the side effects of treatment still leave patients struggling with quality-of-life issues. The lack of whole-person care leaves patients unequipped after treatment is complete, searching for answers and a way to survive on their own. The unintended consequence becomes a dramatic shift from the weekly/daily medical appointments during active treatment to a silence that can be daunting for many to navigate. Living Your Truth Empowered, shortened to LYTE Foundation, is an antiauthoritarian minded and anti-hierarchal nonprofit created to address the needs of the growing breast cancer survivor population. LYTE is …