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Full-Text Articles in Business
The Stock Market Impact Of Government Interventions On Financial Services Industry Groups: Evidence From The 2007-2009 Crisis, Deborah Smith
The Stock Market Impact Of Government Interventions On Financial Services Industry Groups: Evidence From The 2007-2009 Crisis, Deborah Smith
Business Faculty Publications
We examine the market reaction and shift in risk from nine prominent government interventions in response to the crisis between February 2007 and July 2009 on four types of institutions: banks, savings and loan associations (S&Ls), insurance companies, and real estate investment trusts (REITs). Overall, with the exception of the Troubled Assets Repurchase Program (TARP), the interventions were wealth-decreasing and risk-increasing events for financial institutions. Leveraged firms and firms with higher trading volumes earn significantly lower abnormal returns. For both during- and post-crisis periods, larger firms experience increases in systematic risk; non-U.S. firms experience lower changes in systematic risk.
Baker Hughes: Greasing The Wheels In Kazakhstan (Fcpa Violations And Implementation Of A Corporate Ethics And Anti-Corruption Compliance Program, Mark Holtzblatt, Norbert Tschakert
Baker Hughes: Greasing The Wheels In Kazakhstan (Fcpa Violations And Implementation Of A Corporate Ethics And Anti-Corruption Compliance Program, Mark Holtzblatt, Norbert Tschakert
Business Faculty Publications
This case discusses the Foreign Corrupt Practices Act (FCPA) violations of Texas-based Baker Hughes, in connection with its oil service operations in Kazakhstan. You will assume the position of a newly assigned audit committee member who is trying to understand Baker Hughes’ FCPA violations related to its Kazakhstan operations. Your investigation will involve the examination of the SEC court complaint, press releases, government and company publications and 10-K annual reports. Baker Hughes’ FCPA experiences illustrate the corruption risks and difficulties that multinational corporations encounter in conducting international business. The subsequent creation of a new Baker Hughes Code of Conduct, FCPA …
The Asymmetric Impacts Of Good And Bad News On Opinion Divergence: Evidence From Revisions To The S&P 500 Index, Jin Yu, Haigang Zhou
The Asymmetric Impacts Of Good And Bad News On Opinion Divergence: Evidence From Revisions To The S&P 500 Index, Jin Yu, Haigang Zhou
Business Faculty Publications
Motivated by the ambiguity theory of Epstein and Schneider (2003, 2008), we hypothesize that investors' beliefs on the prospects of firms converge upon the arrival of bad news, but do not converge - or even further diverge - on the arrival of good news. We expect firms with high divergence in opinions to experience lower stock returns around the announcements of bad news but not for good news. Using revisions to the S&P 500 index between 1962 and 2008 as information events, we find overwhelming support for the hypothesis. The results are robust to controlling for alternative hypotheses of price …
Jump Risk And Cross Section Of Stock Returns: Evidence From China's Stock Market, Haigang Zhou, John Qi Zhu
Jump Risk And Cross Section Of Stock Returns: Evidence From China's Stock Market, Haigang Zhou, John Qi Zhu
Business Faculty Publications
Various studies have confirmed the existence of jumps in different financial markets. However, there is sparse theoretical or empirical effort to examine the dynamic relation between jump risk and cross-sectional expected stock returns. We follow a stylized SDF-based diffusion-jump model to examine its testable implications about the relation between cross-section expected excess returns and variations in jump intensities across stocks. The zero-cost portfolio, exploiting the return spreads between the top and bottom decile portfolios formed on jump intensity, could earn an annualized return as high as 24% with an annualized Sharpe ratio of 1.67. A Fama-MacBeth test shows that stock …
Personal Financial Planning Attitudes - A Study, Scott A. Yetmar, D. Murphy
Personal Financial Planning Attitudes - A Study, Scott A. Yetmar, D. Murphy
Business Faculty Publications
Purpose – The purpose of this paper is to report on a survey about the personal financial planning attitudes of MBA students in the USA. Design/methodology/approach – The study surveyed 206 MBA students about their attitudes to personal financial planning. Participants were asked about their level of knowledge, whether they had prepared components of a financial plan, where they might seek assistance in such a process and the criteria for selecting a financial planner. In addition, participants were asked to indicate their level of confidence in a financial plan's capacity to help them meet their long-term needs and the likelihood …