Finance and Financial Management Commons^™

Exploring The Factors That Affecting Adoption Of Mobile Banking In Bangladesh, Md. Abdullah A. Mamun, Masud Rana, Md. Ashraful Islam, Md. Abdullah A. Mamun

Journal of Global Business Insights

This paper seeks to unearth the factors affecting the adoption of mobile banking in Bangladesh. Primary data from 630 respondents are collected from January 2021 to June 2021 using a structured questionnaire to accomplish this objective. The questionnaire contains 20 statements regarding the adoption of mobile banking. Gathered data are tabulated, categorized, and arranged to fulfill the purpose. The convenience sampling method is used to choose respondents from the Pabna district in Bangladesh. The collected data are examined using exploratory factor analysis, KMO and Bartlett testing, and reliability testing. Findings confirm that risk, the convenience of use, ease of access, …

Banking Industry Sustainable Growth Rate Under Risk: Empirical Study Of The Banking Industry In Asean Countries, Isnurhadi, Sulastri, Yulia Saftiana, Ferry Jie

Research outputs 2022 to 2026

This research examines how the banking industry maintains its sustainable growth rate. The sample consists of 328 commercial banks in the ASEAN area. A fixed effect model is employed to analyze the data. The study reveals several findings: (1) The countries with the most risk in the banking industry are Indonesia, Thailand, Philippines, Malaysia, and Singapore. (2) Operational risk has a negative effect on sustainable growth and a positive effect on actual growth. Asset utilization positively affects sustainable growth and positively affects actual growth. (3) Business risk has a positive effect on sustainable growth but a negative on actual growth. …

Simplified Portfolio Optimization Using Cramer’S Rule In Excel, Tom Arnold, Joseph Farizo, Terry D. Nixon

Finance Faculty Publications

The matrix algebra associated with finding minimum variance portfolio weights, mapping the efficient frontier, and determining the tangency portfolio weights is greatly simplified in Excel by applying Cramer’s Rule. Only a scant knowledge of linear algebra is necessary for producing a very intuitive presentation for a multi-asset portfolio. The technique is very easily replicated for an assignment or for providing a classroom resource.

Case Study In Enterprise Risk Management: Lion Rock Summer Camps, Inc., Arthur Meaney

Honors Theses

Enterprise risk management is a crucial part of the modern business world. Being unprepared to handle risks that a company may face can lead to financial demise. Since the 1960s, the insurance industry has steadily moved away from the focus on insurance buying. Enterprise risk management strives to identify company-wide risks, evaluate their frequency and severity, come up with risk management and loss control methods, implement said methods, and monitor their effectiveness over time. In this case study, I identify risks for Lion Rock Summer Camps, Inc. and suggest various risk management and loss control methods. Lion Rock Summer Camps, …

Third Party Moral Hazard And The Problem Of Insurance Externalities, Gideon Parchomovsky, Peter Siegelman

All Faculty Scholarship

Insurance can lead to loss or claim-creation not just by insureds themselves, but also by uninsured third parties. These externalities—which we term “third party moral hazard”—arise because insurance creates opportunities both to extract rents and to recover for otherwise unrecoverable losses. Using examples from health, automobile, kidnap, and liability insurance, we demonstrate that the phenomenon is widespread and important, and that the downsides of insurance are greater than previously believed. We explain the economic, social and psychological reasons for this phenomenon, and propose policy responses. Contract-based methods that are traditionally used to control first-party moral hazard can be welfare-reducing in …

How Information Technology Investment Influences Firm Financial Vulnerability, Andrew S. Miller

Theses and Dissertations

Information technology (IT) investments have increased over the last half-century without clear justification in academic or practice-based literatures. One area that has not been adequately addressed in the past literature is the role of IT investments in mitigating firm financial vulnerability. This dissertation specifically attempts to understand the marginal effects of IT investments on financial vulnerability as defined by firm risk and R&D depreciation. Two research questions are pursued to help explain the role IT investments play in firm financial vulnerability: 1) What is the relationship between IT investments and R&D depreciation? and 2) What is the relationship between IT …

Do Animated Line Graphs Increase Risk Inferences?, Junghan Kim, Arun Lakshmanan

Research Collection Lee Kong Chian School Of Business

This article shows that animated display of time-varying data (e.g., stock or commodity prices) enhances risk judgments. We outline a process whereby animated display enhances the visual salience of transitions in a trajectory (i.e., successive changes in data values), which leads to transitions being utilized more to form cognitive inferences about risk. In turn, this leads to inflated risk judgments. The studies reported in this article provide converging evidence via eye tracking (Study 1), serial mediation analyses (Studies 2 and 3), and experimental manipulations of transition salience (graph type; Study 3) and utilization of transitions (global trend; Study 4 and …

Uri And Its Students: A Contract For The Provision Of A Safe Environment, Danielle Joan Beatrice

Senior Honors Projects

DANIELLE BEATRICE (English; Philosophy; Business) URI and Its Students: A Contract for the Provision of a Safe Environment

Sponsor: Judith Swift (Communication Studies, Coastal Institute)

When students begin to attend college, they expect to be consumed with busy schedules, heavy workloads, and an exciting social life. Students do not anticipate being in dangerous situations. However, this does not mean that such situations do not occur. Therefore, it is essential to teach students to be active participants in educating themselves and their peers regarding prevention and response to emergency situations. My Honors Project aims to increase the awareness of safety-related issues …

International Portfolio Prospects And Concerns, Dimitrios V. Siskos

Publications

The recent financial crisis amplifies the need for an updated and more universal investment strategy for both individuals and corporate investors. Diversification satisfies that condition, as it provides access to different economies operating in different countries while, simultaneously, it spreads the risk across different asset allocation[1]. However, to benefit the advantages of a diversified portfolio, a sophisticated decision making process and appeal to re-planning are required. Otherwise, international investors have to face the consequences of political-country risk and currency risk. The goal of this research is to correlate the benefits of diversification with risk undertaking for either individual …

The Effects Of Inter-Industry Mergers And Acquisitions On The Long-Term Volatility Of Equity Returns, Collin Myers

Undergraduate Honors Theses

The objective of this research was to discover whether a significant relationship exists between the theoretically diversifying effects of inter-industry mergers and acquisitions (“M&A”) and changes in the volatilities of acquisitive firms’ publicly-traded equity security returns (measured as the standard deviation of percentage changes in price) from pre-transaction announcement to post-transaction completion. My hypothesis is that a negative relationship should exist between changes in a firm’s equity return volatility over time and whether the firm completes a diversifying acquisition, which I define as one in which the target firm primarily operates in a different industry than the acquirer. 980 diversifying …

Market Effects Of Local Media Employment Reductions On The Idiosyncratic Risk Of Nearby Firms; Returns, Valuation, And Debt; And Firm Meet-Beat Behavior And Ceo Turnover And Compensation, C. Kyle Jones

Open Access Theses & Dissertations

This research examines the effects of reductions in local and regional media employment on firms' information environment. A reduction in the number of local media employees available to provide coverage of firms is associated with persistent levels of increased idiosyncratic risk. The source of that firm-level risk appears to be increased estimation risk among investors, rather than decreased awareness about the investment opportunities or real effects on firms' product market competition. I also demonstrate that overall levels of local media coverage are associated with differences in returns similar to those associated with coverage in national outlets. While a reduction in …

Communication Of Fiduciary Risk For Workplace Retirement Plans, George Blount

Walden Dissertations and Doctoral Studies

More than 100 new 401(k) plan complaints were filed between 2016-2017, the highest two-year total since 2008-2009. Plan sponsors of retirement plans face personal financial liability for the risks associated with litigation focusing on their fiduciary responsibility. Grounded in the behavioral governance framework, the purpose of this qualitative case study was to explore the communication of risk for workplace retirement plans. The participants comprised 10 business leaders who are fiduciaries responsible for their company’s retirement plan with a national geographic footprint. Data were collected from semistructured interviews. Thematic analysis was used to analyze the data. Themes of benchmarking, the efficacy …

Kelly Fraction Estimation For Multiple Correlated Bets, William Chin

International Conference on Gambling & Risk Taking

It is well-known that expected portfolio growth is maximized by maximizing

expected logarithmic utility. This investment criterion is known as Kelly betting.

It has many optimality properties but is considered to be risky. Blackjack

teams and other advantage gamblers practice a fraction of the Kelly optimal to

decrease risk. Some hedge fund managers are thought to practice according to

Kelly principles. We use a continuous multivariate Geometric Brownian motion

model and present an interval estimate for the historical fraction for a portfolio

of correlated bets, possibly including a risk-free asset. Historical data comes

from a range of sources and the …

Financial Institutions And The Taxi-Cab Industry: An Exploratory Study In Canada, John D. Obradovich, Amarjit Gill, Nahum Biger, Leo-Paul Dana, Ansari Mohamed

John Obradovich

A current challenge taxicab owner/operators face in Canada is the lack of financing for taxicabs. This article examines business opportunities and lending risk; it also provides risk management strategies for financial institutions to manage the risk of lending to the taxi-cab industry. Members of the boards of directors and shareholders from the Canadian taxicab industry, and lenders from financial institutions that do not provide financing to taxicab owner/operators, were interviewed. Board members and shareholders were asked about their perceptions regarding business opportunity, risk, and their willingness to provide collateral for taxicab loans. Lenders of financial institutions were asked about their …

Strategies To Reduce Risks Associated With Corporate Social Responsibility Lending, Victor Johnson

Walden Dissertations and Doctoral Studies

Bank managers have transacted six trillion dollars of new loans in low and moderate income (LMI) communities because of the Community Reinvestment Act (CRA) mandate. CRA originated mortgages accounted for over 42% of the defaulted loans because of limited risk strategies. Based on the Aguilera conceptual framework, the purpose of this exploratory single case study was to explore the strategies CSR bank managers used to reduce the risks associated with lending in LMI communities. Data were collected and analyzed from semistructured interviews of five bank managers working in one financial organization located within the U.S. Northeast. Data also included the …

The Nature Of Latin American Markets In The Presence Of Credit Events, Patricio Aguilar

CMC Senior Theses

In the past two decades the Latin American region has experienced a number of credit crises stemming from large sovereign debt levels and sharp currency devaluations. This study aims to discover whether or not the sovereign credit default swaps (CDS) in the Latin American region lead equity markets prior to these sovereign credit events. Through a sample of the seven largest Latin American economies and daily return data from 2001 to 2018, I try to empirically test this question through a Generalized Least Squared model. The paper finds little significant evidence of CDS leading equity markets in price discovery prior …

Sensation Seeking And Hedge Funds, Stephen Brown, Yan Lu, Sugata Ray, Song Wee Melvyn Teo

Research Collection Lee Kong Chian School Of Business

We show that motivated by sensation seeking, hedge fund managers who own powerful sports cars take on more investment risk but do not deliver higher returns, resulting in lower Sharpe ratios, information ratios, and alphas. Moreover, sensation-seeking managers trade more frequently, actively, and unconventionally, and prefer lottery-like stocks. We show further that some investors are themselves susceptible to sensation seeking and that sensation-seeking investors fuel the demand for sensation-seeking managers. While investors perceive sensation seekers to be less competent, they do not fully appreciate the superior investment skills of sensation-avoiding fund managers.

Financial Institutions And Systemic Risk: The Case Of Bank Of America 2006-2017, Jeffrey Mills

Finance Undergraduate Honors Theses

This paper explores systemic risk and financial institutions before, during, and after the financial crisis. It focuses on Bank of America the 2^nd largest bank in the United States by assets. The paper includes an introduction to systemic risk and a review of literature on systemic risk. A few traditional measures of systemic risk will be defined, such as nonperforming loans, return on assets, return on equity, earnings per share, net interest margin, and capital adequacy ratio. Finally, the paper will take a look at how these traditional measures specifically relate to Bank of America from 2006 to 2017. …

The Market At Work, Patrick Flynn

Honors Projects

I believe my project will be the best project for me using both of my majors. It is a great way for me to take some of the knowledge I learned here at BGSU and apply it to a real life scenario I could pursue in future years. Investing at a young age is very important to help raise a lot of money for my retirement, something that I am learning right now in class. People coming out of college usually aren’t very concerned with investing at such a young age. I want to take advantage of this opportunity that …

Ceo Compensation Structure And Capital Ratios At Us Banks, Bradley Heuer

HON499 projects

Certain CEO compensation tactics have promoted excessive risk taking at banks in previous years. In response, regulation regarding compensation structure was released by the US government. In addition, regulation regarding capital risk was published by the US government in the years following the Panic of 2008. CEO compensation consists of both cash-based and incentive based forms of compensation. Risk can be measured using various methods, but for the purposes of this paper risk was measured by observing capital ratios at US banks. I evaluate the interaction between CEO compensation structure and capital ratios at US banks in an attempt to …

Short Selling And Economic Policy Uncertainty, Xiaping Cao, Yuchen Wang, Sili Zhou

Research Collection Lee Kong Chian School Of Business

We study the trading behavior of short sellers in the presence of economic policy uncertainty (EPU). Daily short selling activity at either the aggregate level or the individual stock level is increasing in the EPU index (Baker, Bloom and Davis, 2016). EPU has great explanatory power for short trading. Cross-sectional tests show that the increase in short interest under high political uncertainty is from shorting stocks characterized by higher mispricing, greater policy sensitivity, higher illiquidity, greater volatility or analyst dispersion. Short sellers earn abnormal profits by trading on public information related to EPU.

Sensation-Seeking Hedge Funds, Stephen Brown, Yan Lu, Sugata Ray, Melvyn Teo

Research Collection Lee Kong Chian School Of Business

Using a novel dataset of hedge fund manager automobile purchases, we show that, motivated by sensation seeking, hedge fund managers often take risk for personal and non-pecuniary reasons. In line with the sensation seeking view, managers who own powerful sports cars take on more investment risk but do not deliver higher returns, resulting in lower Sharpe ratios. Moreover, funds managed by performance car owners exhibit higher operational risk and are more likely to fail. Performance car owners demonstrate other attributes associated with sensation seeking, such as a preference for lottery-like stocks, unconventional strategies, and active trading.

Returns To Tilapia Fish Farming In Ghana – Implications For Tilapia Pooled Investment Vehicles, Kwami Adanu, Mawufemor Adanu

The Journal of Entrepreneurial Finance

In Ghana, the private sector’s response to financing constraints associated with aquaculture investment has been to employ Pooled Investment Vehicles (PIVs). Unfortunately, several of these PIVs faced insolvency with huge losses to investors as returns promised investors turn out to be unrealizable. The premise of this study is that such insolvency problems occur mainly because of the lack of reliable data on likely returns and risk associated with Tilapia farm investments. This study improves on the “single value” profitability estimates of previous studies by performing Value at Risk (VaR) analyses on estimated farm-level returns, and 5,000 Monte Carlo simulation …

Risks Management Application In Helping The Poor Through Microfinancing, Edmond Njombe Lyonga

Walden Dissertations and Doctoral Studies

Poverty alleviation in Buea, Cameroon, has been a problem of concern for decades. The study is vital because managers who control the funds given to the government of Cameroon to help reduce poverty are politicians and do not equitably distribute the funds to all on the pretext that the default rate is high. The purpose of this study was to find better ways to make additional capital available to the microbusiness owners of Buea to open or improve businesses. This qualitative case study design was consistent with the aim of understanding the importance of risk management within the microfinance industry …

Is Cash-Return Relation Risk Induced?, Chenxi Liu

Research Collection Lee Kong Chian School Of Business

Corporate cash holding is found to be able to predict stock return. Some scholars attribute this to the association of cash with systematic risk with respect to growth options. Others find that the relation is a mispricing effect. In this paper, I try to test whether the relation between cash and return is driven by systematic risk that captured by cash. The empirical results do not support the risk explanation of cash-return relation. First, the risk loading on CASH factor cannot predict returns, which is not consistent with rational frictionless asset pricing models. Second, CASH factor cannot reflect future GDP …

Cost Of Debt And Federal Home Loan Bank Funding At U.S. Bank And Thrift Holding Companies, Scott Deacle, Elyas Elyasiani

Business and Economics Faculty Publications

We investigate the relationship between the cost of debt issued by bank holding companies (BHCs) and thrift holding companies (THCs) and their use of Federal Home Loan Bank (FHLB) advances. Cost of debt is used as a measure of bank riskiness for the first time in a FHLB study. A two-equation model of FHLB advances and cost of debt is estimated. Three main results are obtained. First, greater reliance on advances by BHCs and THCs is associated with lower cost of debt in the pre-crisis period, and more strongly so during the crisis, because granting of advances sends a positive …

Extension Risk In Commercial Mortgages, Charles Tu, Mark Eppli

Mark J. Eppli

Historical data and Monte Carlo simulation is used to examine the likelihood of loan extension and potential losses associated with extension. It is found that extension probability is highly sensitive to property NOI growth, to NOI volatility, to the amortization schedule, and to the loan term. It is found that extension risk is largely unaffected by changing credit spreads, changing yield curve assumptions, and changing term default assumptions. It is found that changing the underwriting standards affects the probability of loan extension in a somewhat muted way. It is estimated that the loss during extension is approximately 2%-3% of the …

The Expectation Differences Among Stakeholders In The Financial Valuation Fitness Of Auditors, James Digabriele

Department of Accounting and Finance Faculty Scholarship and Creative Works

Purpose-The purpose of this paper is to investigate if there is an expectation gap among accounting academics, accounting practitioners, and users of financial statements in the financial valuation fitness of auditors. Complex reporting standards and current market expectations have the potential to create differences between what third-party users consider to be the responsibilities of the auditor and what auditors believe to be their responsibilities in auditing fair value estimates. Design/methodology/approach-This study surveys the perceptions of accounting academics, accounting practitioners, and users of financial statements and the degree to which an expectation gap exists in the financial valuation fitness of auditors. …

Quantifying A Mining Investability Quotient To Mitigate Junior Mining Investment Risk, Jonathan Mickey Merguerian

Open Access Theses & Dissertations

Uncertainty and risk are inherent features of investing in mineral exploration ventures. Investors rely on qualitative and quantitative analysis to evaluate risk of capital. The distinction between risk and uncertainty pertaining to mineral exploration is that risk is an opportunity for loss and uncertainty can be described as the range of probabilities that some condition may occur (Rose, 1987). Stakeholders rely on a combination of investment conferences, risk analysis equations, press releases, financial reports, and investment research to determine if an investment potential. J. M. Cozzolini developed a formula for Risk Adjusted Value (RAV) of an exploration venture. The study …

Event Risk : Three Essays Exploring Nonprofit Organizations' Finances After The September 11 Attacks, Santiago Guerrero

Legacy Theses & Dissertations (2009 - 2024)

The three essays of this dissertation explore the experience of nonprofit organizations after the September 11 attacks to gain a better understanding of one specific type of risk nonprofit organizations face— “event risk” — which I broadly define as the risk of a negative impact on the operations of a nonprofit organization as a result of unexpected events. Essay One finds that overall nonprofit sector revenues were not reduced after the September 11 attacks and identifies characteristics of the revenue mix that make nonprofit organizations less susceptible to event risk. Essay Two identifies characteristics of nonprofit organizations’ financial conditions that …