Business Commons^™

Initial Public Offerings And The Failed Promise Of Disintermediation, A. Christine Hurt

Faculty Scholarship

No abstract provided.

Hedge Funds: The Case Against Increased Global Regulation In Light Of The Subprime Mortgate Crisis, Laszlo Ladi

Brigham Young University International Law & Management Review

No abstract provided.

The Role Of Private Sector Investment In International Microfinance And The Implications Of Domestic Regulatory Environments, William Langer

Brigham Young University International Law & Management Review

No abstract provided.

Effective Basemetal Hedging: The Optimal Hedge Ratio And Hedging Horizon, Michael Dewally, Luke Marriott

Finance Faculty Research and Publications

This study investigates optimal hedge ratios in all base metal markets. Using recent hedging computation techniques, we find that 1) the short-run optimal hedging ratio is increasing in hedging horizon, 2) that the long-term horizon limit to the optimal hedging ratio is not converging to one but is slightly higher for most of these markets, and 3) that hedging effectiveness is also increasing in hedging horizon. When hedging with futures in these markets, one should hedge long-term at about 6 to 8 weeks with a slightly greater than one hedge ratio. These results are of interest to many purchasing departments …

Nigerian Stock Market Reflection Of The Global Finance Crisis: An Evaluation, Sere- Ejembi A. A.

Bullion

With its roots in banking, the sub-prime mortgage crisis that commenced in the United States in 2007 soon resonated in other sectors of its financial system, and the economy, at large. It spread quickly to the developed economies in Europe, including the United Kingdom, and Asia. In the case of the Nigerian stock market, following initial relative insulation, the speed of contagion and response was comparatively slower. However, the effects began to manifest in the first quarter of 2008. The objective of this paper, therefore, is to review the global financial crisis, in the context of its recent effects on …

Investing Africa's External Reserves In Africa: Issues, Challenges And Prospects, Onwioduokit A. E.

Bullion

The paper underlined the challenges and opportunities for managing Africa's external reserves by Africans after identifying several pre-conditions for an African currency to emerge as international currency and noted that these conditions have not yet crystallized in Africa. Although African external reserves have grown over time the benefits of such growth in terms of facilitation of domestic financial markets and even the earning are not commensurate with the reserves growth rate. The non-convertibility of African currencies, volatile macroeconomic and sometimes volatile political environment coupled with the shallowness of the domestic markets are the main challenges that are faced by the …

Sp711 Tough Times, Tough Choices... You're Not Alone In A Financial Crisis, The University Of Tennessee Agricultural Extension Service

Financial Management

When income doesn’t cover expenses for several months, you and your family face tough choices. But these choices don’t have to be made alone. Reaching out for help during times of financial stress may make the difference in whether your family emerges from the crisis with its emotional and physical health intact.

Supportive people in one or more of the following agencies and organizations may help you work through the problems that accompany a temporary crisis or a long-term life change. You pay for most of their services through tax dollars and community support. Tap their resources as you face …

Technical Analysis: The Interface Of Rational And Irrational Decision Making, William Martin

Publications – Dreihaus College of Business

No abstract provided.

Household Financial Ratios: A Review Of Literature, Nathan Harness, Michael Finke, Swarn Chatterjee

Swarn Chatterjee

The literature on household financial ratios provides insight into the characteristics related to meeting common investment asset, debt, and liquidity guidelines. We know much about the contemporaneous relation between ratios and household characteristics, but the literature exploring the impact of meeting ratio thresholds on subsequent financial success is in its infancy. Ratios can be useful heuristics that efficiently provide information about financial status as well as a prescriptive guideline to motivate more efficient financial behavior. While the existing literature provides some insight into which households have adequate ratios, there are opportunities for additional empirical scrutiny and application of household resource …

Measuring Effectiveness Of Quantitative Equity Portfolio Management Methods, Andrew J. Mesale

Honors Projects in Finance

In this paper, I use quantitative computer models to measure the effectiveness of Quantitative Equity Portfolio Management in predicting future stock returns using commonly accepted industry valuation factors. Industry knowledge and practices are first examined in order to determine strengths and weaknesses, as well as to build a foundation for the modeling. In order to assess the accuracy of the model and its inherent concepts, I employ up to ten years of historical data for a sample of stocks. The analysis examines the historical data to determine if there is any correlation between returns and the valuation factors. Results suggest …

Financial Risk Management: Lessons From The Current Crisis ... So Far, Knowledge@Smu

Knowledge@SMU

The current economic recovery looks long and difficult, and makes providing for an ageing population an even greater challenge. Will economies rebound to provide for the health care needs of retirees? At a conference organised in November 2008 by the Sim Kee Boon Institute’s newly launched Center for Silver Security at the Singapore Management University, Todd Groome of the International Monetary Fund spoke on how the ongoing financial crisis could shape retirement risk.

The Perceptions Of Superintendents Regarding The Need For Graduate Business Classes In Educational Leadership, Howard Leland Smith

Dissertations

The purpose of this study was to explore the comprehensiveness of educational leadership programs regarding the extent of appropriate business knowledge attained by public school administrators. Portions of the study included a discussion of current licensing practices, academic governance, basic business requirements for leadership and management, and basic financial literacy. A further purpose was to measure the perception of how the inclusion of specific business-oriented graduate education in the certification process might increase the initial success of administrators.

The literature review supported the concept that superintendents understand change management and fiscal responsibility. Survey respondents supported these concepts by indicating the …

The Archway Investment Fund Semi Annual Report, December 2008, Bryant University, Archway Investment Fund

Archway Investment Fund

No abstract provided.

The Timeliness Of Accounting Disclosures In International Security Markets, C. Mitchell Conover, Robert E. Miller, Andrew Szakmary

Finance Faculty Publications

In this study, we examine financial reporting lags, the incidence of late filing, and the relationship between reporting lags, firm performance and the degree of capital market scrutiny. We use a large sample of firms spanning 22 countries over an eleven-year period. A focal point of our analysis is whether the incidence of late filing, and the relations between reporting days and other variables, differ systematically between common and code law countries. Relative to U.S. firms, we report that the time taken and allowed for filing is usually longer in other countries and that the statutory requirement is more frequently …

Socio-Demographic And Financial Predictors Of Discharged Chapter 12 Bankruptcies For Utah, Idaho, And Wyoming, Jessica Johnson

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The purpose of this study was to examine the socio-demographic and financial characteristics that were associated with the likelihood of a discharge among Chapter 12 bankruptcy filers in Utah, Idaho, and Wyoming. Previous bankruptcy studies conducted in Utah have looked at the same associations in Chapter 7 and Chapter 13. This study contains individual filer-level data from 158 Chapter 12 bankruptcy cases filed in Utah, Idaho, and Wyoming between 1997 and 2005. These cases were accessed through the Web-PACER system, a database of imaged court documents filed in district bankruptcy courts. Free access to this system was given by the …

Style Investing And Institutional Investors, Kenneth Froot, Melvyn Teo

Research Collection Lee Kong Chian School Of Business

This paper explores the importance and price implications of style investing by institutional investors in the stock market. To analyze styles, we assign stocks to deciles or segments across three style dimensions: size, value/growth, and sector. We find strong evidence that institutional investors reallocate across style groupings more intensively than across random stock groupings. In addition, we show that own segment style inflows and returns positively forecast future stock returns, while distant segment style inflows and returns forecast negatively. We argue that behavioral theories play a role in explaining these results.

How Surprising Are Returns In 2008? A Review Of Hedge Fund Risks, Melvyn Teo

Research Collection BNP Paribas Hedge Fund Centre

Many investors, expecting absolute returns, were shocked by the dismal performance of various hedge fund investment strategies in 2008. In this issue of the statistical digest, I review the academic literature on hedge fund risks and conduct some simple analyses. I find that many hedge funds, even those without directional equity exposure, have payoffs that resemble those from writing put options on equity indices. A central theme is that their strategies all involve being short liquidity. Therefore, these hedge funds tend to underperform during liquidity crises, which coincide with extreme bear markets.

Technical Analysis: The Interface Of Rational And Irrational Decision Making, William Marty Martin

William Marty Martin

No abstract provided.

Thierry Apoteker On The Threat Of Global Stagflation, Knowledge@Smu

Knowledge@SMU

Managing director Thierry Apoteker and his team at French company T-A-C (Thierry Apoteker Consulting) have correctly predicted many of the economic shocks that the world has seen in the past three months. In a recent presentation hosted by the International Trading Institute, Singapore Management University, Apoteker made a convincing case for worldwide inflation and recession, known as stagflation.

The Dynamics Of Quote Adjustments, Kee H. Chung, Chairat Chuwonganant, Jing Jiang

WCBT Faculty Publications

Liquidity providers on the NYSE make faster quote adjustments towards equilibrium spreads and depths than they do on NASDAQ. Liquidity providers in both markets make faster spread and depth adjustments for stocks with more frequent trading, greater return volatility, higher prices, smaller market capitalizations, and smaller trade sizes. We find that stocks with greater information-based trading and in more competitive trading environments exhibit faster quote adjustments. The speed of quote adjustment is faster after decimalization in both markets. These results are robust and not driven by differences in stock attributes between the two markets or time periods. Overall, our results …

Fair-Value Accounting Provides Much Needed Transparency In Dislocated Markets, Knowledge@Smu

Knowledge@SMU

In the current global financial turmoil, more transparency is needed, not less, say Singapore Management University professor of accounting Andrew Lee and accounting lecturer Lim Chu Yeong. While some critics argue that fair-value accounting is partly to blame and should be suspended, in a recent commentary Lee and Lim made the case for fair-value accounting as having an important role to play in providing timely and relevant information to investors.

Retail Investors And Structured Products: A Case Of 'Buyer Beware'!, Knowledge@Smu

Knowledge@SMU

Across the globe, buyers of structured products linked to Lehman Brothers have seen their investments wiped out. In Singapore, the MAS (Monetary Authority of Singapore) has appointed an independent committee to oversee the review and resolution of customer complaints. Tan Chong Hui, professor of quantitative finance at Singapore Management University, has this advice especially for retail investors of structured products: caveat emptor or ‘buyer beware’.

Market Segmentation, Liquidity Spillover, And Closed-End Country Fund Discounts, Sai Pang (Justin) Chan, Ravi Jain, Yihong Xia

Research Collection Lee Kong Chian School Of Business

In a segmented international capital market, the illiquidity of a country fund in the market in which its shares are traded affects only the share price of the fund (S), while the illiquidity of its underlying assets in the market in which these are traded affects only the fund net asset value (NAV). In an integrated market, illiquidity in one market can easily spill over to another and affect both the fund share price and its underlying asset value. It follows that the closed-end country fund premium, P[reverse not equivalent]ln(S)-ln(NAV), is negatively (positively) affected by the fund (underlying asset) illiquidity …

Migration Of Trading And The Introduction Of Single Stock Futures On The Underlying Us Stocks, Thomas Henker

Thomas Henker

This study investigates where liquidity and informed trading takes place following the introduction of single stock futures (SSF) contracts on the OneChicago futures exchange. Specifically, we analyze the size and composition of proportional spreads for two sets of stocks, those that have single stock futures contracts and a matched control sample that does not have such contracts. We find that, after controlling for changes in spread determinants, the average proportional spreads, on average, decrease significantly after SSF are introduced. For NYSE stocks, while the average daily trading volume in the cash market is reduced by 389,000 shares, we find a …

Connecting Resources To Student Achievement: Assessment Of The Indeterminacy Of District Performance, Peter Simpson, Robert K. Gable, Stacey L. Kite

School Finance and Student Achievement

The purpose of this study is to conduct cluster analyses, resulting in groupings of N=113 districts based on socioeconomic status (SES), which is the independent variable and primary correlate of performance. It is a quantitative analysis of N=113 districts in Massachusetts for the period from 2000 to 2005. The study conducts cluster analyses to evaluate district performance as measured by student achievement. The problem is stated by National Research Council (1999) that: “Indeterminacy characterizes education production”. Indeterminacy is represented by variation in the N=113 districts’ performance. The groupings of performance obtained from the cluster analyses provide information about the types …

Fight Fraud With Strong Internal Controls, Robert L. Kardell, L. Rand Gambrell

Robert L Kardell

No abstract provided.

Effects Of Friendship In Transactions In An Emerging Market: Empirical Evidence From Brazil, Wesley Mendes-Da-Silva

Wesley Mendes-Da-Silva

This paper considers the inclusion of human behavioral aspects and implications of cognitive psychology and anthropology in decisions relating to the emerging field of behavioral finance. The formulated hypotheses were tested using 400 questionnaires, answered by students enrolled in MBA programs. The principal results suggest that individuals involved in transactions among friends or among strangers assume different behaviors—friends agree about the price attributed to an asset, while strangers show the propensity to bargain.

Money Largely Accounts For Increased Unemployment During Stagflation, Shows A Recent Study, Knowledge@Smu

Knowledge@SMU

Is there a relation between money, measured by inflation or interest rates, and unemployment? According to Aleksander Berensten, Guido Menzio and Randall Wright -- co-authors of a recent paper on “Inflation and Unemployment in the Long Run” -- there is a strong positive relation. Wright, who is professor of economics at Wharton, presented a seminar based on their paper at the Singapore Management University’s School of Economics.

After The Acquisition: Here Are Seven Steps To Successfully Integrating Finance And Accounting Functions After A Merger Or Acquisition, Barbara M. Tarasovich, Bridget Lyons, John Gerlach

WCBT Faculty Publications

Although much has been written regarding the factors critical to successful integration after a merger or acquisition, very little research has focused on the particulars of integrating the finance and accounting functions of the companies involved. As with overall business integration, detailed planning, effective communication, and speed of execution are critical. The authors recommend a seven-step process that will help balance the needs of the business during an acquisition as well as ensure financial controls are established. The overall steps provide the key activities to be accomplished and provide specific and explicit guidance. This seven-step process includes: 1. Begin planning, …

Sox Section 404 Material Weaknesses Related To Revenue Recognition, Dana R. Hermanson, Daniel M. Ivan, Susan H. Iva

Faculty and Research Publications

The article analyzes disclosures of material weaknesses in internal control after the implementation of U.S. Sarbanes-Oxley Act of 2002 (SOX) 404 and summarizes the efforts of firms to remediate such material weaknesses. According to SOX section 404, management must issue a report on the effectiveness of the internal control of the firm over financial reporting. It notes that a report must be issued by the external auditor expressing an opinion on the effectiveness of internal control over financial reporting.