Corporate Finance Commons^™

The Introduction Of Financial Fair Play Regulations In European Football And Its Effect On The Success Of Clubs, Thomas Jackson

Honors College Theses

This study explores the effects that Financial Fair Play (FFP) regulations introduced by the Union of European Football Associations (UEFA) in the 2011-12 season have on the success of football teams within the league. The rationale of FFP was to make the league more competitive by restricting a team’s ability to spend on player salaries. Through the construction of a comprehensive longitudinal dataset, I analyzed team performance from the 2004-05 season through to the 2020-21 season, measuring club success in points-per-game, wins, losses, and draws and financial success using team profit margin and salary expenditures. Using difference-in-differences approaches, I find …

Quality Fintech In The Context Of The Japanese Main Bank System, Kanji Kitamura

School of Business: Faculty Publications and Other Works

This chapter discusses what boosts digital transformation (DX) in the Japanese banking sector, focusing on the non-technical side of fintech in the context of the Japanese main bank system (MBS). This chapter first identifies Japan’s country-specific business purposes by looking at the economy, institution, and individual levels of the society. Using country-specific elements as case themes, qualitative case studies reveal that compatible fintech with local cultural values of preference leads to successful technological development. The findings suggest that quality DX supports country-specific strategies established to benefit the society. This chapter concludes that, although Japan’s DX appears to be lagging behind, …

Fraud And The Audit Expectation Gap, Samuel Pelumi Olatunde

Honors College Theses

This study seeks to explore the expectation gap Georgia Southern University business and non-business majors have toward the work of an auditor. This study aims to assess the understanding of Auditors' responsibility for preventing and detecting fraud. This study will help assess the roles of an auditor, a forensic accountant, and management in fraud detection and prevention. The study will also highlight the importance of equipping students with accounting knowledge relevant to the business environment. The research for the study is conducted through a survey questionnaire and interpreted with Excel software. The hypothesis is that students that are majoring in …

The Dark Side Of Leadership: Mid-Level Managers And Their Experience With Hubristic Behaviors Of Executives, Leili Sadaghiani

Dissertations

Purpose: The purpose of the study is to identify the emotional reactions of mid-level managers to executives’ hubris behaviors in a corporate setting.

Methodology: This leadership study uses qualitative phenomenological methodology was executed to explore the lived experiences of mid-level managers with past executives who practiced hubristic behavior.

Findings: The findings of this research on the lived experiences of mid-level managers with hubristic behaviors of executives suggest that the lack of support lessens the mid-level manager’s confidence; with little support; the mid-level manager was either afraid to fight the executive or gave up trying; the mid-level manager faced stress even …

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, …

Feasibility Of Funding Construction-Related Projects With Cryptocurrencies, Farbod Pourdehmobed

Construction Management

The current method of acquiring funds for construction projects consists of loans and/or a board of investors. With the emergence of the cryptocurrency industry in the past five to ten years, an influx of cash has been inserted into the market and is simply being held captive by government regulations. With development and construction being an attractive investment for most anyone, these "crypto billionaires" are insistent on financing possible projects. The issue lies within the construction industry and the possibly outdated financial system and whether it is capable of adhering to certain requirements that come with the usage of crypto …

Price Comovement And Market Segmentation Of Chinese A- And H-Shares: Evidence From A Panel Latent-Factor Model, Yingjie Dong, Wenxin Huang, Yiu Kuen Tse

Research Collection School Of Economics

This paper examines the price comovement of cross-listed Chinese A- and H-shares using a panel model with latent factors and a heterogeneous long-run structure. Our model is more flexible than the cointegration system and is estimated using the data-driven Cup–Lasso method. The long-run H-share price discounts are heterogeneous across different groups of stocks. We have identified both stationary and nonstationary latent factors in the price differentials, which are driven by different economic variables. By analyzing the factor loadings of the nonstationary latent factor, we identify some trading-friction and information-friction variables that have effects on the price convergence between the A- …

Strategic Financial Management Part Iii: Debt Maturity And Priority And Corporate Liquidity, Fangjian Fu, Clifford W. Smith

Research Collection Lee Kong Chian School Of Business

This is the third in our series ofJACFarticles that explores thecorporate motives for and consequences of seasoned equity offer-ings (SEOs) by U.S. public companies over the past 50 years. Likeits two predecessors, this article begins by examining each of thethree standard theories (or “models”) of corporate capital structureand financing policy that continue to receive serious considerationin academic discussions: (1) the Tradeoff Model;(2)thePeckingOrder Model, and (3) theMarket Timing Model.Aswealsobeganby noting in our two previous articles, each of these three modelshas implications that do not fit comfortably with the findings ofour analysis of over 8500 SEOs by U.S. companies between 1970and 2019.

Exogenous Loss Of Analyst Coverage And Choice Of Audit Quality, Simon Yu Kit Fung, Zheng Wang, Liandong Zhang, Xindong Zhu

Research Collection School Of Accountancy

We show that a firm’s likelihood of appointing auditors with industry expertise or with a larger office increases after the firm is affected by an exogenous reduction in analyst coverage, relative to its matched control firms. This effect is stronger for affected firms with greater reductions in analyst monitoring, for smaller or younger firms, for firms with lower institutional or CEO ownership, and when the lost analysts are more effective monitors. We further show that affected firms that switch to high-quality auditors receive more positive market reaction, experience a smaller decrease in stock liquidity and a smaller increase in cost …

The Effect Of Nondiagnostic Information On Internal Auditor Skepticism: Capturing The Dilution Effect, Joseph Anthony Giordano

Electronic Theses and Dissertations

Internal auditors assigned to assess internal controls over financial reporting incorporate irrelevant information into their judgment, showing decreased skepticism when irrelevant information contradicts preconceived stereotypes of management, known as the dilution effect and attributed to the representativeness heuristic. Irrelevant information consistent with preconceived stereotypes does not decrease skepticism. In this experiment practicing internal auditors are provided an irrelevant description of the Chief Information Officer portrayed as either gregarious or introverted then subsequently receive relevant internal controls information. When the Chief Information Officer is described as gregarious, counter to common stereotypes, internal auditors assess risk as less likely to occur compared …

Loan Spreads And Credit Cycles: The Role Of Lenders' Personal Economic Experiences, Daniel Carvalho, Janet Gao, Pengfei Ma

Research Collection Lee Kong Chian School Of Business

We provide evidence that changes in lender optimism can lead to excessive fluctuations in credit spreads across the credit cycle. Using data on the real estate properties of loan officers originating large corporate loans, we find that credit spreads overreact to sophisticated lenders' recent local economic experiences, captured by local housing price growth. These effects are only present when borrowers own real estate assets and during times of greater uncertainty about real estate values, i.e., boom-and-bust cycles in housing prices. Our analysis suggests that recent personal experiences shape sophisticated lenders' beliefs about real estate values, which affect their pricing decisions.

All Stick And No Carrot? Reforming Public Offerings, Stephen J. Choi, Adam C. Pritchard

Law & Economics Working Papers

The SEC heavily regulates the traditional initial public offering. Those regulatory burdens fuel interest in alternative paths for private companies to go public, “regulatory arbitrage.” The SEC’s response to the emergence of alternatives, most recently SPACs and direct listings, has been to suppress them by imposing heightened liability under Section 11 of the Securities Act. The SEC’s treatment of the traditional IPO regulatory process as a one-size-fits-all regime ignores the weaknesses of this process, in particular the informational inefficiency of the book-building process. In this essay we argue that the agency’s focus in regulating issuers going public should be on …

Bearer Negotiable Instruments: Addressing A Financial Intelligence Gap And Identifying Criminogenic Weaknesses, Hollis B. Kegg

Dissertations, Theses, and Capstone Projects

Bearer Negotiable Instruments (BNI) are a long-standing category of financial instruments used to transfer large amounts of money in ways that may not be subject to regulation, reporting, tracking, review, or oversight. There is limited information available on BNIs, and no evidence that any studies have been undertaken on BNIs alone, much less reported. Increasingly, BNIs are being used for illegal purposes including money laundering. This study gathers information about their characteristics, nature, purpose, legal status, and numbers. It also focuses on the crime risks associated with BNIs, the crime opportunities they facilitate, and the criminal weaknesses in the financial …

Impact Of Geographical Diversification And Limited Attention On Private Equity Fund Returns, Victor Ong

Research Collection Lee Kong Chian School Of Business

This article analyzes the effect of geographical diversification on global private equity (PE) fund returns. We find that there is a negative correlation between geographical diversification and PE fund returns. To establish the causality between geographical diversification and PE fund returns, we employ an instrumental variable analysis where the instrument used is the stock market capitalization of the host country where the PE fund is based. Our results apply to Net IRR, TVPI and DPI as dependent variables used to proxy for PE fund returns in the main regression model. A one standard deviation increase in geographical diversification results in …

Qe: Implications For Bank Risk-Taking, Profitability, And Systemic Risk, Supriya Kapoor, Adnan Velic

Conference papers

In the aftermath of the sub-prime mortgage bubble, the Federal Reserve implemented large scale asset purchase (LSAP) programmes that aimed to increase bank liquidity and lending. The excess liquidity created by quantitative easing (QE) in turn may have stimulated bank risktaking in search of higher profits. Using comprehensive data on balance sheets, risk measures, and daily market returns in the U.S., we investigate the link between QE, bank risk-taking, profitability, and systemic risk. We find that, particularly during the third round of QE, banks that were more exposed to the unconventional monetary policy increased their risk-taking behaviour and profitability. However, …

Tactical Allocation Through The Lens Of Correlational Time-Variance, Determinants, And Regimes, T.H. Williams

Electronic Theses and Dissertations

We investigate correlations among six primary asset classes from January 1982 to December 2022. Our analysis extends existing literature, on the well-researched stock-bond correlation (SBC), by encompassing 14 supplementary asset class dyads and four correlational regimes. We challenge the archetype of correlational time-invariance that underlies buy-and-hold asset allocation strategies by implementing structural break tests and an innovative Wavelet Coherence (WC) methodology, where our findings reveal temporal instability. Through a multi-method statistical approach, we present robust and persuasive evidence of macroeconomic factors as determinants of temporal change. Leveraging time-varying Granger causality, we unearth elusive yet significant relationships. Our research pivots to …

Endogenous Market Choice, Listing Regulations, And Ipo Spread: Evidence From The London Stock Exchange, Hafiz Hoque, John Doukas

Finance Faculty Publications

This study examines the endogenous market choice and its impact on underwriter spread if Alternative Investment Market (AIM) IPOs that meet Main Market (MM) listing requirements had issued equity in the MM during the 1995–2021 period. We find that the spread is 1.33% higher in the AIM than the MM for IPO listings that meet the MM listing requirements. This finding suggests that AIM companies, meeting the MM listing requirements, could have saved more than £100 million by going public through the MM than the AIM market. We also find that this spread differential is attributed to the issuing firms' …

Doing Well While Doing Good? The Cost Of Responsible Investing, Elizabeth Iwicki

CMC Senior Theses

In this paper, I estimate the monthly alpha of highly rated ESG stocks, with the motivation to assess the effects of ESG investors on public equity markets. I hypothesize, consistent with the motivating theory of Heinkel et al. (2001), that the shift in investor preferences toward ESG-friendly investments leads to the underperformance of a broad ESG portfolio relative to a portfolio of comparable stocks. I test my hypothesis using the methodology of Hong and Kacperczyk (2009) and Wallace (2022), where I apply the methods to an ESG portfolio rather than a “sin” portfolio. Consistent with my hypothesis, I find that …

Transition-Denial And Structural Adjustment: Causation And Culpability In The Cuban Economy, José Gabilondo

FIU Law Review

In 2020, Cuba implemented the Tarea Ordenamiento (Tarea), the most significant economic reform since the construction of the socialist economy after the Revolution. Signaling an eclectic brand of Cuban socialism, the Tarea clears away three decades of tried and failed economic doctrines, drawing a new fiscal border around state enterprises, nodding to market realities, and preparing the island for greater insertion into the world economy. While the political economy of post-Castro Cuba has changed in this way, the United States continues to subject the island to an unprecedented program of unilateral sanctions, universally condemned as a breach of human rights, …

Listed Private Equity Returns: The Forecasting Power Of Premiums And Discounts, Daniel Krasemann

CMC Senior Theses

In this paper, I assess the ability of premiums and discounts to predict future listed private equity returns. I hypothesize that the premiums and discounts of the net asset value of the listed private equity funds with monthly lags hold forecasting power. I use four distinct listed private equity indices and their respective NAV P/D values for my research. To ensure my analysis is realistic in scope, I incorporate a variety of macroeconomic variables that have been proven to influence listed private equity returns. I structure my time-period analysis around the 2008-09 financial crisis. I generally find that a two-month …