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Full-Text Articles in Finance and Financial Management
Nonstatistical Factors Influencing Predictions Of Financial Distress And Managerial Implications In The All-Cargo Airline Industry, Robert O. Walton
Nonstatistical Factors Influencing Predictions Of Financial Distress And Managerial Implications In The All-Cargo Airline Industry, Robert O. Walton
Publications
All-cargo airlines carry over 50% of global airfreight, yet they are prone to bankruptcy. Many financial models are designed to predict a firms' financial health, but they do not assess many nonstatistical factors that influence the prediction capability of these models. In this study, qualitative grounded theory design was used to identify nonstatistical factors and explore how they influence bankruptcy prediction models in the all-cargo airline industry. In the first phase of the study, financial data from 2005 to 2009 for 17 all-cargo U.S. airlines were used to determine the bankruptcy prediction ability of the Kroeze financial bankruptcy model. A …
Risk Allocation Across The Enterprise: Evidence From The Insurance Industry, Michael K. Mcshane, Tao Zhang, Larry A. Cox
Risk Allocation Across The Enterprise: Evidence From The Insurance Industry, Michael K. Mcshane, Tao Zhang, Larry A. Cox
Finance Faculty Publications
Financial researchers initially regarded hedging activities as a means to reduce total firm risk, which often is defined in terms of cash flow volatility. More recently, researchers have focused on the strategic allocation of risk. Direct tests of risk allocation have been problematic, however, because hedging data are rarely available and, when available, are specific only to a single operation of the firm, such as bank lending. In this study, we exploit unique data from the insurance industry that allows us to observe hedging proxies for both investment and insurance underwriting risks and test the risk allocation hypothesis developed in …
Club Good Influence On Residential Transaction Prices, J. Andrew Hansz, Darren K. Hayunga
Club Good Influence On Residential Transaction Prices, J. Andrew Hansz, Darren K. Hayunga
Finance Faculty Publications
We examine residential real estate transactions in a market where an additional property right to a club good may have an influence on prices. We find that for single-family property, the market capitalizes approximately 50% of the full value of the extra property right. For condominiums, the amount reduces to approximately 25%. While these amounts are positive, they clearly are significantly lower than full value.