Corporate Finance Commons^™

Corporate Social Responsibility And Financial Performance: Does Board Diversity Matter?, Ozgur Ozdemir, Murat Kizildag, Tarik Dogru, Ilhan Demirer

Journal of Global Business Insights

In this study, the moderating effect of board diversity on the complex relationship between corporate social responsibility (CSR) performance and financial performance is examined. The resource-based view of the firm and stakeholder theory are used as the theoretical foundation of the study. The hypotheses of the study are tested via fixed-effects regression using data for a sample of 1,234 firms and 5,102 firm-year observations for the period 2009–2013. The study finds evidence that CSR performance and financial performance are positively related, and the magnitude of this relationship is contingent on the level of board diversity. As corporate ...

The Democratization Of Finance Through The Banking Revolution And Financial Technologies In Brazil, Joao Rodrigues

Honors Theses

Every nation requires an adequate financial system to support the flow of funds between savers and borrowers, providing a safe and effective payment system. The Brazilian National Financial System (Sistema Financeiro Nacional - SFN) is recognized as one of the backbones of Brazilian development throughout the years, one of the explicit drivers of the ten largest world economies. Interestingly, institutions that established the country's financial system are vulnerable to structural change driven by continuous development created through new ideas, new challenges, and new opportunities.

A Suggested Revision Of The 2020 Vertical Merger Guidelines (May 2, 2021), Steven C. Salop

Georgetown Law Faculty Publications and Other Works

The DOJ/ FTC Vertical Merger Guidelines (VMGs) were adopted by the FTC in June 2020 by a party-line 3-2 party line over the dissent of the Acting Chair. One might expect that the VMGs will be withdrawn and/or revised once a Democratic majority is achieved. In my view, revision is appropriate because the VMGs are both incomplete and overly permissible. This Suggested Revision can aid that process. Rather than trying to start with the current draft, this draft begins on a clean sheet. However, it has been formulated with an eye towards the problems with the current VMGs and ...

Banks Vs Shadow Banks: Evidence From The 2015 Fha Mortgage Insurance Premium Cut, Pornteera Tungtrakul Jefferson

Doctor of Business Administration Dissertations

My paper uses the 2015 surprise mortgage insurance premium (MIP) cut in the FHA loan market to study banks’ and shadow banks’ role in the residential mortgage market and how shadow banks increase their market share or take away the mortgage demand from traditional banks. I use the triple-differences method to study the rise of shadow banks, a MIP cut experiment. My results found that shadow banks are much more active in the FHA market and that they expand access to credit to borrowers by taking away some demand from traditional banks. I also study the impact of the MIP ...

Firm-Level Analysis Of The Tax Cuts And Jobs Act On Capital Expenditures, Mason Westphal

Accounting Undergraduate Honors Theses

This study investigates the firm-level consequences to capital expenditure levels from the passing of the Tax Cuts and Jobs Act of 2017 (TCJA). It theorized that favorable tax provisions in the TCJA would cause firms to increase their levels of capital expenditures. To test this hypothesis, the study analyzed the capital expenditure levels of public firms from 1986-2019 controlling for factors such as national gross domestic product (GDP) growth and used a dummy variable of reporting periods after 2018 to represent the effects of the TCJA. In contrast to the original hypothesis, the results demonstrate that the TCJA had a ...

Effects Of Covid: Non-Essential V Essential Industries, William Shipley

Accounting Undergraduate Honors Theses

As the year 2020 has finally come to an end and the end of Covid is in near sight, it is important for us to look back at how it has shaped the world from an economic perspective. Ever since the closure of most of the U.S. and global economy in March 2020 it has made us deem which companies we consider essential and non-essential. This major decision came as all governments across the world had to close the operations of as many companies they could to limit the spread of the covid-19 virus. This major choice of determining ...

The Effects Of Common Stressors On Poultry Production: A Case Study In Northern Mozambique, Grace Lehfeldt

Finance Undergraduate Honors Theses

Chicken is one of the main proteins that feeds the world. For centuries, the human race has relied on chickens to eat. Therefore, as food science becomes more relevant, the way that chickens are raised has become a science. However, this is not true in every part of the world. In Mozambique the process for raising chickens for consumption is not the same as it would be in America. This is a study of two specific “stressors” (feed and temperature) and how they impacted chicken growth and development on a live production poultry farm in Northern Mozambique. In addition, it ...

An Exploration Of The Impact Of Economic Recessions On The S&P 500 And Its Sectors, Weston Sizemore

Finance Undergraduate Honors Theses

The Capital Asset Pricing Model (CAPM) is a method of predicting future stock prices based on past returns. Specific areas of CAPM analysis utilize regression analysis to accomplish this goal. Historic prices and returns for a specific stock in a company, or even whole sectors of the economy, are compared with the corresponding returns for the market. There have been several historical recessions in United States history, as well as a current, ongoing recession. These recessions, along with their causes and effects, will be discussed extensively in this paper. This paper utilizes an analysis of the Capital Asset Pricing Model ...

Exploring The Impact Of Coronavirus Response Policies On The Long-Term Financial Health Of Sports Leagues Around The World, Alexander Seager

Finance Undergraduate Honors Theses

This paper will outline and explore the responses of leagues in the United States and Canada, the United Kingdom, and Spain, with an emphasis on how these decisions affected the overall financial health of sports leagues within them.

While the brunt of the Coronavirus can be felt in nearly all facets of life, the goal of this paper is to research policies specifically tied to sports. There is much more to the COVID response than simple economics, but the scope of this paper is to dig into sports and the financial health of leagues moving forward. The intention is not ...

A Financial And Environmental Impact Analysis On The Implementation Of Electric Vehicles For The Washington County, Arkansas Sheriff's Department, Lauren Chadwick

Supply Chain Management Undergraduate Honors Theses

Since the Biden administration has provided implication that the hope is for state and local governments to adopt net zero emission federal vehicles, it is important to see how this might work for a county in a rural area of Arkansas. Applying this real possibility to the local Sheriff’s department will aim to create a case either for the implementation of electric vehicles or prove to show that it is not a feasible solution.

This research will compare the financial advantages and disadvantages of this order along with the possible environmental impact that this solution can attribute to. Focusing ...

Evaluating Methods Of Calculating Country-Specific Market Risk Premium, Lora Taylor

Finance Undergraduate Honors Theses

In this paper I will discuss three different methods for calculating country specific market risk premium will be discussed. The methods that will be discussed are that of a historical moving average, Aswath Damodaran’s method, and the methodology and survey results from Pablo Fernandez. The weaknesses of the different methods will also be discussed. Additionally, the CAPM model of valuation will be explained as well as the three different concepts that are used interchangeably under the term market risk premium.

Complete Analysis Of Netflix, Inc., Anna Gregory

Honors Theses

This thesis focuses on the company, Netflix, INC and the projected value of this company. This study provides valuable information regarding the projected value of Netflix, INC and future stock price predictions. I derived my findings through several procedures. The most important procedure in analyzing the future value of Netflix was the use of a Discounted Cash Flow Analysis. This analysis provided me with a projected value and share price for Netflix, INC in five years and again in ten years. The second method used to evaluate Netflix was the multiples valuation. This method provided information on whether or not ...

Short Selling Around Reverse Stock Splits, Ryan Voges

All Graduate Plan B and other Reports

I examine whether short selling increases around reverse stock splits using 2019 daily short selling data instead of bimonthly short interest data required by FINRA. In my difference-in-difference analysis, I find that average short selling increases significantly for firms that reverse split their stock, relative to matched control firms that do not, around the split dates. I also find that firms that reverse split their stock experience negative cumulative abnormal returns in the 20-day period after the reverse stock splits, particularly for those firms that are heavily shorted. These results are in agreeance with existent literature and suggest that short ...

Corporate Venture Capital And Its Effects On Company Valuation - An Analysis Of The Additions Of Cvc Arms, Joshua Lyman

All Graduate Plan B and other Reports

This paper examines the stock price reaction to the addition of corporate venture capital arms to publicly traded companies. Referencing venture capital resources, corporate press release announcements of the addition of CVC arms were hand collected. I calculate the cumulative abnormal returns (CARs) surrounding press release announcement dates and find immediate stock market reactions, positively increasing stock prices compared to the overall market. I further perform placebo event studies at random dates and with direct competitors using the same announcement dates and find no significant results. These findings suggest that corporate venture capital increases company valuation and that financial markets ...

Potential Competition And Antitrust Analysis: Monopoly Profits Exceed Duopoly Profits, Steven C. Salop

Georgetown Law Faculty Publications and Other Works

This short note prepared for an OECD meeting in June 2021 examines several antitrust issues involving analysis of potential competition. While the analysis is not new, it is still useful to collect them together in a unified fashion to show how they are related. In this regard, all the analysis and conclusions flow from the overarching (and obvious) points that exclusionary conduct and agreements that maintain monopoly power very often harm consumers, and that monopoly profits typically exceed the combined duopoly profits earned by the dominant firm and the entrant, if there is successful entry. While this is not inevitably ...

Do Esg Mutual Funds Deliver On Their Promises?, Quinn Curtis, Jill E. Fisch, Adriana Z. Robertson

Faculty Scholarship at Penn Law

Corporations have received growing criticism for their role in climate change, perpetuating racial and gender inequality, and other pressing social issues. In response to these concerns, shareholders are increasingly focusing on environmental, social, and corporate governance (ESG) criteria in selecting investments, and asset managers are responding by offering a growing number of ESG mutual funds. The flow of assets into ESG is one of the most dramatic trends in asset management.

But are these funds giving investors what they promise? This question has attracted the attention of regulators, with the Department of Labor and the Securities and Exchange Commission (SEC ...

Lessons Learned: Chester B. Feldberg, Maryann Haggerty

Journal of Financial Crises

Chester B. Feldberg worked for the Federal Reserve Bank of New York (FRBNY) for 36 years in a variety of roles. In the aftermath of the Global Financial Crisis, he served as a trustee for the AIG Credit Trust Facility (2009-2011). The trust was established in early 2009 to hold the equity stock of American International Group Inc. (AIG) that the U.S. government had received as a result of the 2008 AIG bailout. The three trustees were responsible for voting the stock, ensuring satisfactory corporate governance at AIG, and eventually disposing of the stock.

When he was named as ...

The Rescue Of Fannie Mae And Freddie Mac-Module B: Senior Preferred Stock Purchase Agreements, Daniel Thompson

Journal of Financial Crises

On September 6, 2008, as part of a four-part government intervention, the Federal Housing Finance Agency (FHFA) took into conservatorship the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), two government-sponsored enterprises (GSEs) that dominated the US secondary mortgage market. Concurrently, the FHFA, as conservator, entered into Senior Preferred Stock Purchase Agreements (SPSPAs) with Treasury, under which Treasury committed to provide funding to ensure the GSEs’ positive net worth. In return, Treasury received senior preferred stock and a warrant to purchase 79.9% of the GSEs’ common stock. The SPSPAs have been amended ...

The Rescue Of American International Group Module Z: Overview, Rosalind Z. Wiggins, Aidan Lawson, Steven Kelly, Lily S. Engbith, Andrew Metrick

Journal of Financial Crises

In September 2008, in the midst of the broader financial crisis, the Federal Reserve Board of Governors used its emergency authority under Section 13(3) of the Federal Reserve Act to authorize the largest loan in its history, a $85 billion collateralized credit line to American International Group (AIG), a $1 trillion insurance and financial company that was experiencing severe liquidity strains. In connection with the loan, the government received an equity interest representing 79.9% of the company’s ownership. AIG continued to experience a depressed stock price, asset devaluations, and the risk of ratings downgrades leading to questions ...

The Rescue Of American International Group Module F: The Aig Credit Facility Trust, Alec Buchholtz, Aidan Lawson

Journal of Financial Crises

In September 2008, American International Group, Inc. (AIG) experienced a liquidity crisis. To avoid the insurance giant’s bankruptcy, the Federal Reserve Bank of New York (FRBNY) extended an $85 billion emergency secured credit facility to AIG. In connection with the credit facility, AIG issued 100,000 shares of preferred stock, with voting rights equal to and convertible into 79.9% of the outstanding shares of AIG common stock, to an independent trust (the Trust) set up by the FRBNY. Three trustees held the stock for the sole benefit of the US Treasury, exercised the rights, powers, authorities, discretions, and ...