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Articles 1 - 7 of 7
Full-Text Articles in Business
Gambling With Debt: The English Premier League, Edward Robinson
Gambling With Debt: The English Premier League, Edward Robinson
Undergraduate Economic Review
This paper aims to investigate the impact of debt on financial performance in the English Premier League from the 2000/01 season to the 2017/18 season. Panel model estimations concluded debt has a significant inverse relationship with financial performance. This relationship may potentially be stronger in larger clubs and could be present through human capital investment’s significant direct relationship with financial performance. This further emphasised usages of intangible assets as a player human capital investment indicator, rather than using wage costs like previous studies. Furthermore, filling a gap regarding how capital structures may be used to impact financial performance within’ football.
The Substantial Growth Of Shadow Banking, Financial Technology And Digital Currency And Their Respective Roles In Shaping The Next Financial Crisis, Vardhan S. Chulani Mr.
The Substantial Growth Of Shadow Banking, Financial Technology And Digital Currency And Their Respective Roles In Shaping The Next Financial Crisis, Vardhan S. Chulani Mr.
Undergraduate Economic Review
Based on Goldman Sachs’ model and the state of current affairs, an underlying possibility of a financial crisis occurring in the foreseeable future does exist. This could be due to ongoing trade war and negotiations with different countries, the new policies introduced by political parties and their respective impacts, high amounts of corporate and student debts along with auto loans in the economy, thus indicating signs of excessive leverage and resulting in depressing consumer confidence. International issues such as Brexit, the existing currency and debt crisis with Turkey, and China’s debt bubble could also contribute to the global growth slowdowns. …
Hedge Funds In The Periphery: An Analysis Of Structures Influencing Fund Behavior In The Icelandic And Cypriot Financial Crises, Jameson K. Mah
Hedge Funds In The Periphery: An Analysis Of Structures Influencing Fund Behavior In The Icelandic And Cypriot Financial Crises, Jameson K. Mah
Undergraduate Economic Review
Hedge funds are often viewed from a positive or negative lens in the public and academic forum. However, both of these perspectives neglect structuralist factors. This paper analyzes the effect of these antecedent economic, political, and legal structures. I argue that these structures are at the root of hedge fund behavior, particularly during financial crises. The financial crises of two peripheral countries, Iceland and Cyprus, are used as case studies to illustrate how hedge fund involvement diverges as a result of structural factors.
Impact Of Airplane Crashes On Firm's Credit Risk Under The Creditgrades Model, Alexandros Bougias
Impact Of Airplane Crashes On Firm's Credit Risk Under The Creditgrades Model, Alexandros Bougias
Undergraduate Economic Review
The paper examines the impact of airplane accidents with 40 or more fatalities, on airline's firm credit risk. The sample contains 20 airplane crashes for the period 2000-2017. The analysis proposes the CreditGrades model introduced by Finger et al. (2002) , which is an extension of the first passage time model of Black and Cox (1976). The study concludes that airplane accidents lead to a statistically significant increase in airline's Probability of Default. The results are both significant and robust under the t-Test and the non-parametric Wilcoxon Signed-rank test.
The Wall Street Gap: A Theoretical Analysis Of Company Valuation Discrepancy, Peter Twomey
The Wall Street Gap: A Theoretical Analysis Of Company Valuation Discrepancy, Peter Twomey
Undergraduate Economic Review
Examination of prior research suggests that affiliated sell-side analysts are subject to conflicts of interest that cause them to issue optimistically biased stock recommendations for investment banking clients. Using a sample of public technology companies, I find that analysts have a theoretical discrepancy of up to 26% when valuing companies using a discounted cash flow model, and a 19-22% theoretical discrepancy when using comparable company analysis. I showcase how conventional valuation methodologies can allow sell-side analysts significant leeway that can be used to further unethical agendas and draw conclusions around the usefulness of regulatory intervention in the financial services industry.
The Impact Of Sustainability Reporting On Firm Profitability, Lancee L. Whetman
The Impact Of Sustainability Reporting On Firm Profitability, Lancee L. Whetman
Undergraduate Economic Review
Using a hand-collected representative sample of 95 publicly traded American firms from various sectors in 2015-2016, I examine how corporate sustainability reporting affects the financial performance of firms. I find a positive and significant effect of sustainability reporting on a firm’s return on equity, return on assets, and profit margin in the subsequent year. However, this relationship is found only for firms with low institutional ownership. These results suggest that sustainability reporting would be a worthwhile use of corporate resources for this subset of firms. Further, corporate sustainability reporting is shown to be an effective substitute for monitoring by institutional …
Is Tech M&A Value-Additive?, Ani Deshmukh
Is Tech M&A Value-Additive?, Ani Deshmukh
Undergraduate Economic Review
Given rising M&A deal volume across all high-tech subsectors, the ability to measure post-acquisition performance becomes critical. Despite this growth, the relevant academic literature is severely lacking (Kohers and Kohers 2000). Using an event-study approach, I find that acquirers and targets both realize statistically significant day-0 abnormal returns (1.23% [p<0.1] and 8.1% [p<0.01], respectively). As positive stock returns signal positive growth prospects in a semi-strong efficient market, AR regressions found that firms' technological relatedness, deal financing, purchase price premiums, and the relative book to market ratio, explained most variance. Overall, high-tech transactions are value-additive for both targets and acquirers.