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Finance and Financial Management

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2010

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Articles 31 - 60 of 174

Full-Text Articles in Business

Corporate Governance And Mindfulness: The Impact Of Management Accounting Systems Change, John Joseph Williams, Alfred E. Seaman Oct 2010

Corporate Governance And Mindfulness: The Impact Of Management Accounting Systems Change, John Joseph Williams, Alfred E. Seaman

Research Collection School Of Accountancy

The International Federation of Accountants (2009) argues that a governance structure should go beyond conformance with regulations and equally support a performance dimension that can lead to better outcomes. This paper explores the relationship between these two governance dimensions and the capacity for mindfulness, utilizing organizational theory that describes high reliability organizations. Survey data was obtained from top-level accounting professionals in a sample of 124 Canadian firms. Regression results support the hypothesis that both the conformance and performance dimensions of governance are significant determinants of the capacity for mindfulness. Additional analysis shows that the explanatory power of this relationship persists …

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2009-2010 Operating Budget: Subr Agricultural Extension And Research Programs, Southern University System. Office Of Finance & Administration. Sep 2010

2009-2010 Operating Budget: Subr Agricultural Extension And Research Programs, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

Operating Budget of the SUBR Agricultural Research and Extension Center Campus. Fiscal Year 2009-2010.

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Auditor Independence: Third Party Hiring And Paying Auditors, Silvia Romero Sep 2010

Auditor Independence: Third Party Hiring And Paying Auditors, Silvia Romero

Department of Accounting and Finance Faculty Scholarship and Creative Works

Purpose – Although the Sarbanes Oxley Act (SOX) has introduced rules to avoid auditor independence impairment, there are still issues that are not sufficiently solved. The purpose of this paper is to discuss the problems of auditor independence that arise by auditors being hired and paid by the auditee, and by SOX requiring rotation of only the lead audit partner. Design/methodology/approach – The paper takes the form of a discussion paper, exploring alternatives to overcome the mentioned issues of independence. Findings – The paper presents an alternative where auditors are hired and paid by an external third party. Besides this …

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The Long And Short Of It: Evidence Of Year-End Price Manipulation By Short Sellers, Jesse Blocher, Joseph Engelberg, Adam V. Reed Sep 2010

The Long And Short Of It: Evidence Of Year-End Price Manipulation By Short Sellers, Jesse Blocher, Joseph Engelberg, Adam V. Reed

Research Collection BNP Paribas Hedge Fund Centre

We identify a setting in which there is a predictable incentive for short sellers to manipulate prices, and we find patterns consistent with short sellers manipulating prices. Specifically, we find that stocks with high short interest experience abnormally low returns on the last trading day of the year. This effect is strongest among stocks that are easily manipulated and during the last hour of trading. Further, this effect reverses at the beginning of the year, consistent with the temporary nature of price manipulation. We show that hedge funds’ portfolios are closely related to market-wide short interest, suggesting that hedge funds, …

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Pay-Performance Sensitivity And Firm Size: Insights From The Mutual Fund Industry, George D. Cashman Sep 2010

Pay-Performance Sensitivity And Firm Size: Insights From The Mutual Fund Industry, George D. Cashman

Finance Faculty Research and Publications

I examine the ex ante decision to make an agent's pay-performance sensitivity an inverse function of organization size. I focus on mutual funds and their decision to use compensation contracts that reduce the advisor's marginal compensation as the fund grows (a declining-rate contract) over the dominant contract type, where marginal compensation is unrelated to fund size (a single-rate contract). I find evidence consistent with the view that declining-rate contracts are a mechanism to keep marginal compensation in line with the advisor's declining marginal product. Specifically, I find that funds with greater exposure to diseconomies of scale are more likely to …

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Corporate Financial Policies And Informed Trading, Abu S. Amin Sep 2010

Corporate Financial Policies And Informed Trading, Abu S. Amin

WCBT Faculty Publications

This paper analyzes the information content of corporate financial policies, in particular dividend changes and share repurchases, by examining their announcements effects on the behavior of informed traders. If unexpected dividend changes or share repurchases have information content, then there should be announcements effects on the extent of informed trading. I test this hypothesis by estimating the extent of informed trading before and after the dividends, tender offers and Dutch auctions announcements. I estimate the informed trading when the dividends announcements are informative [i.e. announcements contain surprises] and compares it when dividends announcements are not informative [i.e. announcements contain no …

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Faculty Success: Developing A Research And Publication Agenda, Kathleen P. King Sep 2010

Faculty Success: Developing A Research And Publication Agenda, Kathleen P. King

Leadership, Counseling, Adult, Career and Higher Education Faculty Publications

Anyone associated with higher education will acknowledge that tenure track faculty have to perform a fantastic balancing act. Compared to an administrative or line role in an organization, higher education faculty have tremendous autonomy and freedom. However, they face competing demands of many different (and good) opportunities, and for them the stakes are always high. Help is here! This article introduces a powerful strategy for staying on track in the research strand of this competitive journey.

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International Diversification With Factor Funds, Cheol S. Eun, Sandy Lai, Frans A. De Roon, Zhe Zhang Sep 2010

International Diversification With Factor Funds, Cheol S. Eun, Sandy Lai, Frans A. De Roon, Zhe Zhang

Research Collection Lee Kong Chian School Of Business

We propose a new investment strategy employing “factor funds” to systematically enhance the mean-variance efficiency of international diversification. Our approach is motivated by the increasing evidence that size (SMB), book-to-market (HML), and momentum (MOM) factors, along with the market factor, adequately describe international stock returns, and by the direct link between investors’ portfolio choice problems and international asset pricing theories and tests. Using data from ten developed countries during the period 1981-2008, we show that the “augmented” optimal portfolio involving local factor funds substantially outperforms the “benchmark” optimal portfolio comprising country market indices only as measured by their portfolio Sharpe …

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How Advertisers Mess With Our Minds And Wallets, Ann House Sep 2010

How Advertisers Mess With Our Minds And Wallets, Ann House

All Current Publications

This publication provides insight on how marketers gain consumers' interest and trust and what rights consumers are entitled to.

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Construction Cost Models, Barry Dikeman Aug 2010

Construction Cost Models, Barry Dikeman

Economics and Finance

The following are a series of cost estimate models similar in format to a typical engineer’s estimate that were developed in support of our financial impact assessment report for LD 1725. The models us current material costs, labor costs, and equipment costs for the region to provide a comparative cost analysis of seven culvert replacement scenarios. The models provide information about what the cost impact of LD 1725 would be for typical culvert replacements in Maine. However, due to the inherent restrictions of the cost modeling framework we were not able to include the abundance of variables that would be …

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Ua37/29 Gary Ransdell - Fed. Reserve Board - Challenges For The Economy & State Governments, St. Louis Federal Reserve Board Aug 2010

Ua37/29 Gary Ransdell - Fed. Reserve Board - Challenges For The Economy & State Governments, St. Louis Federal Reserve Board

Faculty/Staff Personal Papers

Email sent to members of the St. Louis Federal Reserve Board of Ben Bernanke's speech Challenges for the Economy and State Governments.

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2010 Private Capital Markets Report (Summer), John K. Paglia Aug 2010

2010 Private Capital Markets Report (Summer), John K. Paglia

Pepperdine Private Capital Markets Report

The Pepperdine private cost of capital survey was originally launched in 2007 and is the first comprehensive and simultaneous investigation of the major private capital market segments. This year’s survey specifically examined the behavior of senior lenders, asset‐based lenders, mezzanine funds, private equity groups, venture capital firms, angel investors, privately‐held businesses, investment bankers, business brokers, limited partners, and business appraisers. The Pepperdine survey investigated, for each private capital market segment, the important benchmarks that must be met in order to qualify for capital, how much capital is typically accessible, what the required returns are for extending capital in today’s economic …

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The Liquidity Risk Of Liquid Hedge Funds, Melvyn Teo Aug 2010

The Liquidity Risk Of Liquid Hedge Funds, Melvyn Teo

Research Collection Lee Kong Chian School Of Business

This paper evaluates hedge funds that grantfavorable redemption terms to investors. Within this group of purportedlyliquid funds, high net inflow funds subsequently outperform low net inflowfunds by 4.79% per year after adjusting for risk. The return impact of fundflows is stronger when funds embrace liquidity risk, when market liquidity islow, and when funding liquidity, as measured by the Treasury-Eurodollar spread,aggregate hedge fund flows, and prime broker stock returns, is tight. Inkeeping with an agency explanation, funds with strong incentives to raisecapital, low manager option deltas, and no manager capital co-invested are morelikely to take on excessive liquidity risk. These results …

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Incorporating Economic Objectives Into Bayesian Priors: Portfolio Choice Under Parameter Uncertainty, Jun Tu, Guofu Zhou Aug 2010

Incorporating Economic Objectives Into Bayesian Priors: Portfolio Choice Under Parameter Uncertainty, Jun Tu, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

This paper proposes a way to allow Bayesian priors to reflect the objectives of an economic problem. That is, we impose priors on the solution to the problem rather than on the primitive parameters whose implied priors can be backed out from the Euler equation. Using monthly returns on the Fama-French 25 size and book-to-market portfolios and their 3 factors from January 1965 to December 2004, we find that investment performances under the objective-based priors can be significantly different from those under alternative priors, with differences in terms of annual certainty-equivalent returns greater than 10% in many cases. In terms …

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A Dynamic Model For The Forward Curve, Choong Tze Chua, Foster Dean, Krishna Ramaswamy, Robert Stine Aug 2010

A Dynamic Model For The Forward Curve, Choong Tze Chua, Foster Dean, Krishna Ramaswamy, Robert Stine

Research Collection Lee Kong Chian School Of Business

This article develops and estimates a dynamic arbitrage-free model of the current forward curve as the sum of (i) an unconditional component, (ii) a maturity-specific component and (iii) a date-specific component. The model combines features of the Preferred Habitat model, the Expectations Hypothesis (ET) and affine yield curve models; it permits a class of low-parameter, multiple state variable dynamic models for the forward curve. We show how to construct alternative parametric examples of the three components from a sum of exponential functions, verify that the resulting forward curves satisfy the Heath-Jarrow-Morton (HJM) conditions, and derive the risk-neutral dynamics for the …

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Price Movers On The Stock Exchange Of Thailand: Evidence From A Fully Automated Order-Driven Market, Charlie Charoenwong, David K. Ding, Nattawut Jenwittayaroje Aug 2010

Price Movers On The Stock Exchange Of Thailand: Evidence From A Fully Automated Order-Driven Market, Charlie Charoenwong, David K. Ding, Nattawut Jenwittayaroje

Research Collection Lee Kong Chian School Of Business

This study examines trade sizes used by informed traders. The selected sample includes 73 active stocks from the Stock Exchange of Thailand (SET), a pure limit order market, that cover two distinct market conditions of a bull and bear market. Using intraday data, the study finds that large sized trades (i.e., larger than the 75th percentile) account for a disproportionately large impact on changes in traded and quoted prices. This finding compares with the results of studies conducted on U.S. markets that show informed traders employ trade sizes falling between the 40th and 95th percentiles (Barclay and Warner 1993; Chakravarty …

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Ua37/29 Gary Ransdell - Federal Reserve Board - Monetary Policy Hearing, St. Louis Federal Reserve Board Jul 2010

Ua37/29 Gary Ransdell - Federal Reserve Board - Monetary Policy Hearing, St. Louis Federal Reserve Board

Faculty/Staff Personal Papers

Email sent to members of the St. Louis Federal Reserve Board of Ben Bernanke's answers at the House Financial Services Monetary Policy Hearing.

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Ua37/29 Gary Ransdell - Federal Reserve Board - Chairman Bernanke’S Semiannual Monetary Policy Report, St. Louis Federal Reserve Board Jul 2010

Ua37/29 Gary Ransdell - Federal Reserve Board - Chairman Bernanke’S Semiannual Monetary Policy Report, St. Louis Federal Reserve Board

Faculty/Staff Personal Papers

Email sent to members of the St. Louis Federal Reserve Board of Ben Bernanke's Semiannual Monetary Policy Report.

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Private Equity: The Players, The Jargons, And What Lies Ahead, Knowledge@Smu Jul 2010

Private Equity: The Players, The Jargons, And What Lies Ahead, Knowledge@Smu

Knowledge@SMU

What do private equity and venture capital fund managers do? The short answer to that question will hardly do justice to the profession. Yet, it is not easy to provide an accurate explanation without first condensing the nuts and bolts that form the mechanics of the industry. Dan Schwartz, editor of the Asian Venture Capital Journal, does just that, albeit in the form of the 236-page The Future of Finance: How Private Equity and Venture Capital Will Shape the Global Economy – a book that has prominent industry leaders speaking to the layman.

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Investor Diversification And The Pricing Of Idiosyncratic Risk, Fangjian Fu Jul 2010

Investor Diversification And The Pricing Of Idiosyncratic Risk, Fangjian Fu

Research Collection Lee Kong Chian School Of Business

Theories predict that, due to investor under-diversification, idiosyncratic risk is positively priced in expected stock returns. Empirical studies based on various methodologies yield mixed evidence. This study circumvents the debate on methodological issues and traces the pricing of idiosyncratic risk to its economic source – investor under-diversification. Assuming that institutional investors tend to hold more diversified portfolios and thus care little about idiosyncratic risk relative to individual investors, we find that the positive relation between idiosyncratic risk and stock returns is significantly stronger (weaker) in stocks that are held and traded more by individual (institutional) investors. In addition, the pricing …

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How Predictable Is The Chinese Stock Market?, Fuwei Jiang, David E. Rapach, Jack K. Strauss, Jun Tu Jul 2010

How Predictable Is The Chinese Stock Market?, Fuwei Jiang, David E. Rapach, Jack K. Strauss, Jun Tu

Research Collection Lee Kong Chian School Of Business

We analyze return predictability for the Chinese stock market, including the aggregate market portfolio and the components of the aggregate market, such as portfolios sorted on industry, size, book-to-market and ownership concentration. Considering a variety of economic variables as predictors, both in-sample and out-of-sample tests highlight significant predictability in the aggregate market portfolio of the Chinese stock market and substantial differences in return predictability across components. Among industry portfolios, Finance and insurance, Real estate, and Service exhibit the most predictability, while portfolios of small-cap and low ownership concentration firms also display considerable predictability. Two key findings provide economic explanations for …

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Financial Literacy Explicated: The Case For A Clearer Definition In An Increasingly Complex Economy, David L. Remund Jul 2010

Financial Literacy Explicated: The Case For A Clearer Definition In An Increasingly Complex Economy, David L. Remund

College of Journalism and Mass Communications: Faculty Publications

This study explicates the concept of financial literacy, which has blossomed in use this century. Scholars, policy officials, financial experts, and consumer advocates have used the phrase loosely to describe the knowledge, skills, confidence, and motivation necessary to effectively manage money. As a result, financial literacy has varying conceptual definitions in existing research as well as diverse operational definitions and values. This study dissects the differing financial literacy definitions and measures, urging researchers toward common ground. A clearer definition should improve future research, in turn helping consumers better understand and adapt to changing life events and an increasingly complex economy.

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Before The Fields Run Dry: How To Avoid The 'Dutch Disease', Knowledge@Smu Jul 2010

Before The Fields Run Dry: How To Avoid The 'Dutch Disease', Knowledge@Smu

Knowledge@SMU

For any economy, the discovery of abundant natural resources is almost akin to striking nature's lottery. But as any eager financial planner might say to a lottery winner, no windfall can last for long without a solid financial plan. Singapore, a country admired for its relatively substantial national reserves, is home to almost no natural resources (except for human capital, we're told). This lack of natural resources, however, may well be the reason behind the country's economic success. According to Svein Gjedrem, governor of Norges Bank, natural resource-rich countries often suffer from a 'disease' that causes them to rely too …

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Reference Point Adaptation And Disposition Effect: Evidence From Institutional Trading, Chiraphol N. Chiyachantana, Zongfei Yang Jul 2010

Reference Point Adaptation And Disposition Effect: Evidence From Institutional Trading, Chiraphol N. Chiyachantana, Zongfei Yang

Research Collection Lee Kong Chian School Of Business

Using a large proprietary database of institutional trades, we investigate whether, and to what extent, the dynamic adaptation of reference point translates into variations in the disposition effect, and establish three key results. First, the propensity to realize losses declines sharply with the magnitude of prior losses due to insufficient adaptation of reference point. Second, recent adverse information accelerates investors’ adaptation to price depreciation and increases investors’ willingness to realize losses. Finally, a priori of losing money in highly speculative investments decreases investors’ aversion to realize losses. Collectively, the findings suggest that both prior outcomes and recent expectations contribute to …

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Securities Intermediaries And The Separation Of Ownership From Control, Jill E. Fisch Jul 2010

Securities Intermediaries And The Separation Of Ownership From Control, Jill E. Fisch

All Faculty Scholarship

The Modern Corporation and Private Property highlighted the evolving separation of ownership and control in the public corporation and the effects of that separation on the allocation of power within the corporation. This essay explores the implications of intermediation for those themes. The article observes that intermediation, by decoupling economic ownership and decision-making authority within the shareholder, creates a second layer of agency issues beyond those identified by Berle and Means. These agency issues are an important consideration in the current debate over shareholder empowerment. The article concludes by considering the hypothetical shareholder construct implicit in the Berle and Means …

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2009-2010 Operating Budget (Bor-Forms): Southern University At New Orleans, Southern University System. Office Of Finance & Administration. Jun 2010

2009-2010 Operating Budget (Bor-Forms): Southern University At New Orleans, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

2009-2010 Operating Budget (BOR-FORMS) Fiscal Year Ending June 30, 2010. Southern University at New Orleans.

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2009-2010 Operating Budget: Southern University And A & M College, Southern University System. Office Of Finance & Administration. Jun 2010

2009-2010 Operating Budget: Southern University And A & M College, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The 2009-2010 Operating Budget of the Southern University and A & M College Campus.

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2009-2010 Operating Budget (Form Bor 10, Salaries Of Non-Classified Employees: Form Bor-11, Salaries Of Classified Employees): Southern University And A & M College, Southern University System. Office Of Finance & Administration. Jun 2010

2009-2010 Operating Budget (Form Bor 10, Salaries Of Non-Classified Employees: Form Bor-11, Salaries Of Classified Employees): Southern University And A & M College, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The 2009-2010 Operating Budget: FFORM BOR-10, Salaries of Non-Classified Employees; FORM BOR-11, Salaries of Classified Employees. Southern University and A & M College Campus.

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Monetary Policy Essay, Dan Brocklehurst Jun 2010

Monetary Policy Essay, Dan Brocklehurst

Academic Symposium of Undergraduate Scholarship

No abstract provided.

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Speed Of Issuance, Lender, Specialization, And The Rise Of The 144a Debt Market, Rongbing Huang, Gabriel G. Ramirez Jun 2010

Speed Of Issuance, Lender, Specialization, And The Rise Of The 144a Debt Market, Rongbing Huang, Gabriel G. Ramirez

Faculty and Research Publications

Using a large sample of convertible and straight debt issues in the public, 144A, and bank loan markets from 1991 to 2004, we find that the 144A market has risen largely at the expense of the nonshelf public market, the overwhelming majority of the 144A issues are subsequently registered, and straight debt issuers with the highest credit quality and transparency tend to use the shelf public market. Our findings suggest that firms’ preference for speed of issuance drives the growth of the 144A market, and banks and qualified institutional buyers have advantages over public lenders in handling credit risk and …

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