Business Commons^™

Checking The Box: Does Compliance With Risk Management Regulation Increase Financial Stability?, Samuel W. Adams

Doctoral Dissertations

This dissertation examines how bank risk management impacts financial stability. In the first chapter, my coauthors and I study how bank risk management impacts systemic risk using a global sample of banks from 2002 to 2020. We find that bank risk management has improved since the global financial crisis, driven by the implementation of country-level reforms mandating Chief Risk Officers and board-level risk committees. We find that stronger risk management lowers banks’ contribution to systemic risk. Using the staggered enactment of bank risk management reforms as a quasi-natural experiment, we provide evidence that the relation is causal. Subsample analysis on …

Issues On Selling Products Via Social Media Influencers, Zhenhao Li

Lingnan Theses and Dissertations (MPhil & PhD)

Recent years have witnessed an exponential growth of firms promoting and selling products via social media influencers. Although such practice has attracted a growing interest in academia, relevant studies are largely empirical, while analytical studies remain limited. To address this gap, we analytically investigate issues related to a firm's strategy of selling products via influencers in two studies.

In the first study, we develop a two-period model to investigate a firm's strategy for introducing a product via an influencer, where there may exist uncertainty in the influencer-product match. For the promotional campaign in the first period, the influencer exerts an …

Do Industries' Political Profiles Affect Their Portfolio Return Performance?, Shaddy S. Douidar

USF Tampa Graduate Theses and Dissertations

The political profiles of an industry influence its performance due to its impact on industry-level investor sentiment and idiosyncratic risk. I form eight comprehensive political profile portfolios after double sorting on industry-level: (1) political geography proxied by political alignment, (2) corporate political strategies (CPS), proxied by donations to political action committees & lobbying expenditures, (3) and government interference, proxied by dependence on procurement contracts & federal regulations, and exhibit that an industries’ political profiles impact its returns. Industries with high political alignment, concentrated corporate political strategies, and low government interference, deemed the high-performance portfolio, earn an annualized alpha of 10.3428%, …

Public Opinion Of The Sec’S Proposal For Mandatory Climate Disclosures, Isaac Blanchette

Honors Theses and Capstones

In 2022, the Security and Exchange Commission created a proposal that would make climate risk disclosures mandatory for publicly traded companies. This paper aims to understand how Congress is likely to vote on the proposal as well as how students at the University of New Hampshire perceive the proposal. Using publicly available comment letters made by members of Congress in response to the proposal and extrapolating the responses of the other representatives, it is unlikely that the proposal will have enough support to be ratified. However, a survey conducted with students at the University of New Hampshire showed that the …

Lehman Brothers Bankruptcy: Reasons, Effects, And Outcome, Christian J. Reller

Finance Undergraduate Honors Theses

Lehman Brothers’ bankruptcy was a major turning point during the 2008 Financial Crisis, and Lehman Brothers itself has become a prime example of regulatory failure since its closing. The demise of Lehman stemmed from the repeal of the Glass-Steagall Act of 1933. The deregulation of investment banking in the 1990s forged the way for new investment practices on Wall Street. The relaxation of rules allowed investment banks to be heavily invested in volatile assets. Lehman’s issues were an extremely high leverage ratio, illiquid assets, and poor corporate governance. An extremely high leverage ratio left Lehman susceptible to large movements in …

A Study Of Public Accounting And Related Economic Concepts, Seth Gerus

Honors Theses

This thesis consists of several case studies relating to different topics within the world of accounting. These cases were completed as assignments within the thesis practicum class taught by Dr. Victoria Dickinson. Each case pertains to a different accounting-related topic, and topics include the fundamentals of accounting as well as recent events in the business world. The thesis also includes a five-week long case competition in which students were put into groups to present Audit, Tax, and Advisory strategies for companies headquartered in the United States. Each of these cases were completed during the course of the Fall 2020 and …

Social New Retailing Business Model And Its Applicable Regulatory Pattern, Rui Wang

Dissertations and Theses Collection (Open Access)

With the booming development of mobile Internet in China, social platforms have unlocked new channels for commodity supply chain and retailing and promoted business model innovation. Online social networking has fundamentally changed the way the entire society communicates. Social networking is no longer constrained by space, social platforms have become a stage for many ordinary people to showcase themselves, and the popularity of mobile payment has made mobile phones the wallets of Chinese residents as well. The innovative contents and interaction styles delivered by social software have triggered a qualitative change in the efficiency of everyone's communication and interaction, making …

Interlocking Directorates Among The S&P 500: Social Networks, Gender Diversity, And Corporate Governance, Eric P. Magistad

School of Business Student Theses and Dissertations

This multi-article investigation examines corporate board composition and the implications for regulatory penalties. Director diversity on key board committees and board interlocks influence board behaviors as they relate to regulatory risk. Directors bring experience and inter-industry ties to a board position and subsequently transfer and receive specific knowledge, practices, and contacts with other directors (Hillman & Haynes, 2010). Despite this exchange, firms may suffer regulatory oversight penalties because different directors perceive and respond to risk differently (Douglas & Wildavsky, 1983; Flynn et al., 1994). Leveraging the tenets of the cultural theory of risk perception (Douglas & Wildavsky, 1983) and of …

The Effects Of Bank Lobbying And Elections Surprises, Gregory Logan Tarbet

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper examines the stock market reaction to banks that lobby relative to banks that did not lobby in the period around the November 9, 2016, U.S. presidential election. Using three different methods of event studies to calculate the cumulative average return, we find that lobbying in banks has a meaningful relationship to an abnormal increase in those firm’s stock prices. Then we attempt to control for both the systemic importance and size of these institutions by performing cross-sectional regressions that include matched size, and the systemic nature of the banks. The results suggest that a heavily regulated industry such …

Insider Trading Enforcement And The Private Information Environment: Evidence From The Newman Ruling, Andrew T. Pierce

Graduate Theses and Dissertations

I exploit a shock to U.S. insider trading law to investigate whether a reduction in the enforceability of tipper-tippee insider trading restrictions leads to changes in information parity among investors and the efficiency of price discovery. The December 2014 Federal Second Circuit Court of Appeals ruling in US v. Newman constrained enforcement by restricting the types of exchanges between managers and investors that trigger tipper-tippee insider trading liability. Following Newman, I find that Second Circuit hedge funds experienced a significant increase in their stock picking ability of Second Circuit stocks in terms of preempting future earnings announcement returns and future …

Cryptocurrencies: An Overview, Investment Investigation, Comparative Analysis, And Regulatory Proposals, Jacob Franzen

Theses/Capstones/Creative Projects

With cryptocurrencies moving out of obscurity and into the public eye, the initial purpose of this research paper is to provide the history of cryptocurrencies, to explain the complex workings in and around cryptocurrencies, investigate their investment potential, and to draw attention to their potential for misuse. To follow, the primary purpose is to create a platform on which to compare cryptocurrencies with more common mediums of exchange, analyze their current international regulatory climate, highlight their trends within influential nations, discuss their pending and future regulation, and provide personal proposals for additional regulation. Due to the complex nature of the …

Two Essays Examining Consumer Responses To Product And Service Failures, Sotires Pagiavlas

Theses and Dissertations

This dissertation is comprised of two essays that examine consumer responses to product and service failures. In essay 1, I use the U.S. automobile industry as a backdrop to investigate how consumers respond when their products experience a defect-related failure identified by the manufacturer that necessitates a recall. I develop a conceptual framework to test the impact of a regulator-initiated digital marketing campaign (DMC) on consumer compliance to product recalls. The empirical context is the launch of a nationwide DMC by the U.S. automobile industry’s regulator. The analysis spans 12 quarters of recall completion data pertaining to 296 recalls falling …

Desafíos Y Condicionantes De La Industria De Cannabis Con Fines Medicinales En Colombia, Juana Valentina Espitia Vargas

Finanzas y Comercio Internacional

Después de que el Congreso de la República, expidiera la Ley 1787 de 2016, la cual estableció el marco normativo y científico para investigar acerca del cannabis medicinal, regulando su producción, distribución y comercialización en el contexto nacional y extranjero, ha surgido un gran interés por parte de inversionistas y empresarios hacia el sector de cannabis con fines medicinales en Colombia. Sin embargo, pese a que el marco regulatorio es uno de los más completos a nivel latinoamericano, se perciben algunos obstáculos que no han permitido el impulso de esta industria. Con el fin de evaluar cuáles son, se desarrolla …

How Access To Finances Affects Gender Inequality Across Cultures, Allison Muntin

Williams Honors College, Honors Research Projects

While many studies of financial inclusion have been undertaken, very few discuss the inclusion of women. Financial inclusion plays a large role in unlocking resources for the disadvantaged, resulting in higher economic growth and development. The economic opportunity allows individuals and businesses to have a greater contribution to society as a whole, enhancing all aspects of the economy. This paper furthers the conversation of women’s access to financial institution accounts across cultures and what underlying factors play a key role. The results indicate that the female demographic has fewer financial institution accounts in comparison to men when: (i) a country’s …

Essays On Bank Deposit Flows And Deposit Rates As A Market Disciplining Mechanism, Prateek Sharma

LSU Doctoral Dissertations

Deposits are the single largest source of funding for banks and are thus key to the stability of the banking system. Deposit flows and deposit rates are two mechanisms through which depositors discipline banks from excessive risk taking thus keeping the banking system stable.

In Chapter 1, I examine aggregate deposit inflows, outflows, and the reallocation of deposits in the banking system to further our understanding of banking stability. I find that on average deposit inflows are nearly three times larger and twice more volatile than outflows. Deposit flows vary with business cycles and market conditions, across deposit types, and …

Stability In Government, Emerging Technology, And Decentralized Economies: An Analysis Of Alternative Uses Of Cryptocurrencies, Mickayla Stogsdill

Chancellor’s Honors Program Projects

No abstract provided.

Strategies For Compliance With Government Regulations In A Pharmaceutical Company, Charles Jagun

Walden Dissertations and Doctoral Studies

Pharmaceutical companies accrued fines of over $30 billion within 25 years because of noncompliance with regulations. Noncompliance with regulations results in fines and an adverse impact on company profitability. Some pharmaceutical company managers lack effective strategies to ensure overall company compliance with regulation. Based on complexity leadership theory, the purpose of this single case study was to explore strategies pharmaceutical company managers used to ensure compliance with regulatory requirements in Nigeria. The target population was functional managers purposely selected because they had successfully implemented strategies for compliance with the regulatory requirements in Nigeria. Data were collected through face-to-face and telephone …

The Consequences Of Disclosure Regulation: Evidence From Dodd Frank 1502b, Charles Whitley Emerson

Chancellor’s Honors Program Projects

No abstract provided.

Indian Microfinance Sector: A Case Study, Sean P. Gillon

Honors Theses and Capstones

In developing areas of the world with very little economic structure, many activities are not monetized. In other words, money is not used to carry out these tasks because the people in these areas do not have the expendable funds required. In order to combat this problem, micro financing has become increasingly more apparent in these areas of distress. Microfinance is an economic development strategy that allows for those in need to borrow actual money in order to start a business, go to school, or even gain access to everyday living requirements. Microfinance has made tremendous strides over the years, …

High Frequency Trading: Perceptions Regarding Volatility And Regulation, Daniel A. Beck

Honors Theses

Although high frequency trading (HFT) makes up a large portion of day to day trading activity in US and global markets, Khashanah and colleagues (2014) found that nearly half of academic and business industry professionals feel that HFT provides an unfair advantage relative to other market participants, and that a majority of industry professionals share concerns that HFT increases volatility in markets. This creates an environment wherein there are increasing calls by various groups for increased regulation of HFT, and the same study by Khashanah et al (2014) finds that 59% of academics and 46% of industry professionals are of …

Impact Of Regulatory Burden On Small Community Banks In Pennsylvania, Teresa L. Gregory

Walden Dissertations and Doctoral Studies

Community bank managers are struggling with the implementation of the many new regulations promulgated over the past several years. The purpose of this qualitative multiple case study was to explore strategies community bank managers in Pennsylvania use to implement new financial regulations. The population of interest included all community banks in Pennsylvania. For purposes of this study, a community bank was defined in terms of an asset size less than $500 million. Two community banks in Pennsylvania were selected, and 3 participants at each bank were interviewed. The participants included the chief executive officer, the compliance manager, and a mortgage …

The Effect Of Regulations On The Bottom-Line Of Traditional And Shadow Banks, Tsatsu Emmanuel Nyamadi

Walden Dissertations and Doctoral Studies

Return on equity is often associated with prudent risk-taking and the attraction of new clients in advanced economies like the United States, where shadow banks are not regulated. Researchers have contended that freedom from regulation encourages risk-taking and earning of higher profits, but there is a lack of empirical evidence addressing this relationship. The purpose of this quantitative study was to investigate whether lack of regulations result in increased return on equity. The theoretical framework was regulatory arbitrage by Ricks M, Gennaioli N, Shleifer A, and Vishny R. The research question addressed the relationship between regulation, profit margin, leverage, asset …

Ethical Considerations Facing The Regulation Of Self-Driving Cars In The United States, Richard Mancuso

CMC Senior Theses

Self-driving cars are here. Once an advanced technology that seemed futuristic, they are now closer than most believe. Many of the largest automobile manufacturers are working on autonomous vehicle technology of their own. Perhaps most well-known, though, are the cars being developed by Tesla and Google. Both companies have well-developed prototypes of fully autonomous vehicles, meaning they require no human input or supervision, and Tesla has promised widespread, consumer availability of this technology in the next one to two years.

Along with the availability of this technology to the public and transportation companies like Uber and Lyft, comes a need …

The Effect Of The Dodd-Frank Act On Risk In The Financial Sector, Beatrix S. Haddon

Senior Honors Projects, 2010-2019

The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as the Dodd-Frank Act, was passed in 2010 in an attempt to increase transparency and accountability in the financial system. The purpose of this thesis is to discover what effect, if any, the Dodd-Frank Act had on both systematic risk and total volatility in the financial sector. My study shows that while the legislation significantly reduced systematic risk in only one out of the seven industries within the financial sector in the time period I analyzed, it successfully reduced total volatility in all seven industries.

Financial Crises And Government Regulation, Yusef Trad

Honors Thesis

In the midst of turmoil, regulation is “a rule or directive made and maintained by an authority” to maintain order. More often than not, the authoritative figure that imposes and upholds regulatory standards, following its introduction to the specific industry or firm, is the government of the respective country or region. However, politicians, like the rest of us, are unable to predict when a crisis will occur and what appropriate regulation should be imposed to prevent that crisis. Thus, an inevitable concern with regulation is the fact that it is unable to thwart an unforeseeable future crisis but is instead …

Exploring The Quality Of Sme Audits In The Uae, Ahmad Abdul Fattah Odeh

Theses

[Purpose: The aim of this dissertation is to investigate audit quality in the UAE for small and medium sized companies, using the Framework for Audit Quality proposed by the IAASB]. [Design/Methodology/Approach: The methodology used was to describe the laws and regulations now in place in the GCC and to review some of the existing authorities that are working to regulate the audit industry in the country‟s private sector. Next, questionnaires were used to measure the perception of audit quality in SMEs, which was analyzed by means of factor analysis. A number of interviews were also conducted over the same variables …

Bitcoin: Currency Of The Future Or Investment Property, Kelly Y. Yu

Undergraduate Honors Theses

We live in a digital age where almost every aspect of our lives is based on computerized information. In 2009, currency became digital in the form of Bitcoin. The existence of Bitcoin has brought a variety of obstacles to government agencies and regulators. Specifically, the Internal Revenue Service (IRS) has been debating the treatment of virtual currencies such as Bitcoin for tax reporting purposes. In March 2014, the IRS issued a notice classifying Bitcoin and other convertible virtual currencies as investment property, similar to stocks and bonds. The notice from the IRS provoked outrage from the Bitcoin community. This project …

An Effectiveness Review Of Section 404 Of The Sarbanes Oxley Act (2002), Christopher Francis Morelli

Honors Theses and Capstones

The accounting scandals that occurred in the early 2000s launched the current day regulations set fourth in the Sarbanes Oxley Act. The Sarbanes Oxley Act is comprised of several titles, all aimed to help eliminate financial accounting errors and the potential of fraud. Within this piece of legislation, there is one section that has created a lot of discussion. Section 404, which discusses the way in which disclosures of internal control deficiencies are handled, is the topic of this paper. In addition to a literature review of a research paper written by Sarah Rice and David Weber, this paper will …

The Requirement To Be Fit And Proper: What Does It Mean To Australian Psychologists?, Francesca A. Bell

Theses: Doctorates and Masters

The phrase fit and proper is used in the Health Practitioners Regulation National Law Act (Qld), 2009, which came into effect nationally in 2010 and governs psychologists. As with previous legislation that used the phrase, the legislator does not define fit and proper, leaving it up to each profession to determine its exact meaning and inform the courts accordingly. A review of the literature established that to date no Australian psychologist has attempted to define the construct. This means that Australian lawyers do not get any guidance from psychologists regarding how they should interpret the phrase fit and proper in …

Análisis De Las Políticas Públicas De Regulación De Precios En Los Fertilizantes Simples En Colombia, Nikolai Fernández Cala

Maestría en Agronegocios

El presente trabajo se propuso analizar el desarrollo de las políticas públicas de regulación de precios agrícolas desde 1988 a 2013, examinando la variabilidad de los precios de los fertilizantes simples inorgánicos como Urea, DAP y KCL entre 2007 y 2014, con el fin de analizar la relación entre el marco normativo para la regulación de precios de insumos agrícolas y el comportamiento del precio de los mismos. Se analizaron las series de precios de los fertilizantes simples con fuentes primarias y secundarias, observándose el evidente control en la solicitud de reportes de precios de venta y compra de insumos …