Finance and Financial Management Commons^™

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

William Marty Martin

No abstract provided.

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 …

The Short-Term Dynamics Of Information Risk, Thomas Henker, Shah A. H. Shah-Idil, Jianxin Wang

Thomas Henker

We introduce an informational approach (IA) for exploring association between variables, an alternative to the prevalent parametric, thus restrictive, regression analysis. The IA uses data to (non-parametrically) construct the joint distribution of variables. Then, it uses theory to develop restrictions on the joint distributions. These restrictions will typically be orderings of functions of conditional distributions induced by the joint distribution. Finally, it attempts refuting the restrictions. We implement IA examining the relation between trading sizes and spreads, a main concern. Following insights and results of Milgrom (1981), Feldman (2004), and Feldman and Winer (2004), we use NYSE data and kernel …

Islamic Finance Unit Takes Bank Beyond Michigan Roots, Karen Hunt Ahmed

Karen Hunt Ahmed

No abstract provided.

Takeover Defenses, Golden Parachutes, And Bargaining Over Stochastic Synergy Gains: A Note On Optimal Contracting, Atreya Chakraborty

Atreya Chakraborty

We incorporate managerial risk aversion and stochasticity of takeover synergy gains into Harris’ (Harris, E.G. 1990. Antitakeover measures, golden parachutes, and target firm shareholder welfare. Rand Journal of Economics 21, no. 4 : 614–25.) bargaining model for the coexistence of antitakeover defenses and golden parachutes in corporate charters.We show that: (i) it is not always optimal that the target-firm shareholders adopt antitakeover defenses, (ii) the size of the golden parachute is proportional to the riskiness of the synergistic gains, and (iii) the target-firm shareholders are unequivocally better-off with golden parachutes than takeover-contingent stock options.

Pre-Test Assessment, Thomas D. Berry

Thomas D Berry

Price Discovery And Liquidity In Basket Securities, Thomas Henker, Martin Martens

Thomas Henker

Basket securities enable investors to purchase a broad portfolio of securities in a single transaction. We examine the link between HOLDRS, a basket security comprising stocks from an industry or sector, and the underlying stocks. We find that the price of the portfolio of underlying securities leads and is more informative than the basket price. Our results are contrary to the findings of empirical studies that use futures, which are basket securities with features less like those of the underlying equities. Our findings suggest uninformed investors can minimize adverse selection costs by trading basket securities rather than the underlying stocks.

The Walmart Effect: Retailing Of Health Care, William Marty Martin

William Marty Martin

No abstract provided.

Trust And Investments Across Cultures, Thomas D. Berry, Omur Suer

Thomas D Berry

Notre Dame Mendoza Business School Presentation 2008, Karen Ahmed

Karen Hunt Ahmed

No abstract provided.

Poison Pill Redemption: Evidence From The Commercial Banking Industry, Elisabeta Pana

Elisabeta Pana

No abstract provided.

A Face Can Launch A Thousand Shares (And A 0.80% Abnormal Return), Matteo Arena, John Howe

Matteo P. Arena

In this paper we examine the market reaction—price and volume—to the appearance of a firm in the Who’s News column of The Wall Street Journal. We differentiate between those firms whose articles are accompanied by a picture of an executive and a control set of firms whose articles on the same day are not accompanied by a picture. The results show a more pronounced market reaction to the “cum picture” articles, consistent with the incomplete information theory of Merton [1987] and the heuristic-based familiarity hypothesis. There is no evidence of significant long-run abnormal performance for the sample firms.

Corporate Governance Mechanisms And Performance Related Ceo Turnover, Atreya Chakraborty, Shahbaz A. Sheikh

Atreya Chakraborty

This study investigates the impact of corporate governance mechanisms on performance related turnover. Our results indicate that smaller boards and institutional block holders are positively related to the likelihood of performance related turnover. CEOs that also hold the position of the chairman of the board or belong to a founding family face lower likelihood of turnover. CEO stock ownership is negatively related to turnover and CEOs who own 3 percent or more of their company stock face a significantly lower likelihood of performance related turnover. Moreover, protection from external control market has no effect either on the likelihood of turnover.

Quarterly Data On The Categories And Causes Of Bank Distress During The Great Depression, Gary Richardson

Gary Richardson

No abstract provided.

The Role Of Survival Analysis In Financial Distress Prediction, Adrian Gepp, Kuldeep Kumar

Adrian Gepp

Accurate business failure prediction models would be extremely valuable to many industry sectors, particularly in financial investment and lending. The potential value of such models has been recently emphasised by the extremely costly failure of high profile businesses in both Australia and overseas, such as HIH (Australia) and Enron (USA). Consequently, there has been a significant increase in interest in business failure prediction from both industry and academia. Statistical business failure prediction models attempt to predict the failure or success of a business. Discriminant and logit analyses have been the most popular approaches, but there are also a large number …

Socially Responsible Investing: The United Nations Principles, William Marty Martin

William Marty Martin

No abstract provided.

Islamic Banking And Finance: Moral Beliefs And Business Practices At Work, Karen Hunt Ahmed

Karen Hunt Ahmed

The religion of Islam has existed for 1400 years but Islamic economic theory and its financial institutions emerged as an industry only in the 1970s. Islamic financial institutions (IFIs) are designed to help Muslims conduct business internationally while simultaneously upholding traditional Islamic values related to trade finance and currency movement. The basis for their existence is the Islamic moral prohibition on charging interest—interest is a central component of capitalist banking—yet IFIs conduct billions of dollars of business annually in the world economy and the de facto Islamic banking transaction is—in most cases—virtually identical to a capitalist banking transaction. Business practices …

Deficit Financing Grill: Theoretics And Reflections On Nigeria's Transitional Military Dispensation: 1989-2000, Daibi W. Dagogo

Daibi W Dagogo

This study diagnosed the realities of deficit financing, which the on-going democratic government of Federal Republic of Nigeria has seemingly inherited from the erstwhile transitional military administration of the 1990s. Cardinal data volunteered by Central Bank of Nigeria (CBN), Federal Office of Statistics (FOS), Nigeria Economic Study Group (NESG), and Centre for Corporate Policy & Strategy Research (CCPSR) were analyzed using correlation statistical apparatus. The results underscored more dissociation than association between deficit financing and specified macroeconomic enhancement variables. In the final analysis, deficit financing prevails in Nigeria as a bitter recipe whose administration could be more to the detriment …

Asian Financial Markets, Karim Pakravan

Karim Pakravan

No abstract provided.

The Risk Components Of Liquidity, Lorán Chollete, Randi Naes, Johannes Skjeltorp

Lorán Chollete

No abstract provided.