Corporate Finance Commons^™

Corporate Response To The Black Lives Matter Movement: Determinants Of Speaking Out In Support Of Social Causes, A. J. Yuan Chen, Patricia M. Dechow, Samuel T. Tan

Research Collection School Of Accountancy

We document that firms vary in their timeliness of support for the Black Lives Matter (BLM) movement following the death of George Floyd in May 2020, and that timeliness is an indicator of authenticity. We predict that firms that speak out quickly in support of BLM (via Twitter or their websites) have made more investments in diversity and inclusion, relative to firms that speak out slowly (via conference calls or annual reports) or that remain silent. Consistent with this prediction, quick-disclosing firms have greater workforce diversity, have boards with greater ethnic diversity, and are more likely to tie executive compensation …

From Ancient Harmony To Modern Sustainability: Assessing The Coupling Of Taoist “Harmony Between Humanity And Nature” With Esg And Its Impact On Firm Innovation And Performance, Biyi Wang

Dissertations and Theses Collection (Open Access)

Against the backdrop of intensifying global ecological crises, the ESG evaluation system has become a core metric for corporate sustainable development worldwide. However, the Western-dominated ESG system lacks crucial cultural dimensions in its application within Chinese corporate practices. The ecological wisdom embedded in the Taoist concept of “Harmony between Humanity and Nature” offers a significant philosophical foundation for the ESG localization. Extant research has focused on the influence of Confucian culture on ESG, with insufficient exploration of the modern managerial value of “Harmony between Humanity and Nature”. A scientific coupling framework linking this concept with ESG indicators has yet to …

Macroprudential Easing Measures In The Context Of Contractionary Monetary Policy: The Case Of Brazil In 2014, Marcos Antonio Paliari, Marcos Roberto Vasconcelos

Journal of Banking and Financial Economics

This paper evaluates the effects of a macroprudential policy of regulatory easing implemented amidst a contractionary monetary policy in Brazil. The intervention, carried out by the Central Bank in the third quarter of 2014, relaxed reserve requirements on time deposits to stimulate bank credit for vehicle financing. Using a Difference-in-Differences approach with fixed effects by credit modality and month, the analysis is based on monthly disbursement data for consumer loans from 2011 to 2018. Twelve rolling monthly windows are used to capture the dynamic evolution of the policy’s effects. Results based on a synthetic control group indicate statistically significant and …

Woulda, Shoulda, Coulda? The Impact Of Predictive, Prescriptive, And Prospective Expectations On Stakeholder Reactions, Yuri Mishina, Maxine Yu, David Gomulya

Research Collection Lee Kong Chian School Of Business

When and why might stakeholders react to firm activities in ways that might be different than, or even contradictory to, what we might expect based on the extant research? We draw on expectancy violation theory (EVT) and bring in the notion of heuristics and future-oriented expectations to examine this question, using a sample of investor reactions to earnings surprises from 2013 to 2019. We find that, in addition to comparing earnings to consensus earnings estimates, investors appear to compare the earnings surprises to the firm’s past performance and to its peers. Importantly, their expectations regarding future interactions with the firm …

Application Of Open-Source Small Large Language Models For Finance Report Analysis, Tue Vu, Mark Austin, Marcel Tuijn

SMU Data Science Review

The rapid integration of generative AI in finance introduces both opportunities and challenges, particularly when analyzing sensitive data such as Securities and Exchange Commission (SEC) filings. This study investigates the use of open-source Small Large Language Models (SLLMs), deployed locally through the Ollama and LangChain frameworks, combined with Retrieval-Augmented Generation (RAG) for extracting financial insights relevant to index performance and reporting quality. Two key objectives guide this work: (1) benchmarking multiple open-source SLLMs for sentiment analysis, multiple-choice reasoning, and financial question answering, and (2) assessing the feasibility of locally deployed SLLMs for domain-specific financial queries. A standardized set of 50 …

Institutional Cross-Ownership Of Peer Firms And Revelatory Price Efficiency, Young Jun Cho, Holly I. Yang, Yue Zhao

Research Collection School Of Accountancy

We argue that cross-ownership increases the amount of private information in stock price, enhancing the ability of stock price to provide feedback to managers. Consistent with this argument, we find greater cross-ownership heightens a firm’s investment-q sensitivity. This effect is stronger for firms with a lower propensity for voluntary disclosure and for firms whose managers hold less private information. Furthermore, we find that cross-ownership is negatively associated with the sensitivity of a firm’s investment to its peers’ stock prices. Additionally, cross-ownership has a stronger impact on the investment-q sensitivity when measured among investors who trade more actively the firm’s shares. …

The Impact Mechanism Of Low-Carbon Circular Development On Comprehensive Performance: Evidence From Manufacturing Firms, Xuejun Hu

Dissertations and Theses Collection (Open Access)

The advancement of the dual-carbon goals and the deepening of green transformation have positioned the impact of low-carbon circular development on firm performance as a central issue in corporate sustainabilityresearch. Taking Chinese A-share listed manufacturing firms from2007 to2022 as the research sample, this study constructs an indicator systemof firms’ low-carbon circular development from two dimensions—resource utilizationefficiency and emission control efficiency—and assesses comprehensive performance from financial and non-financial metrics. On this basis, the combined weighting–TOPSIS method is employed to measure the levels of low-carbon circular development and comprehensive performance. Amultidimensional fixed-effects panel model is used to examine their relationship. Furthermore, total …

Financial Leverage And Firm Performance: An Empirical Review And Analysis, Iqbal Md. M Islam

Journal of Global Business Insights

This paper examines the dual impact of financial leverage on corporate performance by analyzing empirical data across developed and developing nations, industries, and different periods. Leverage can enhance profitability through tax benefits and improved efficiency, but it also maximizes financial risk, making its effects highly context dependent. Theoretical frameworks such as the Trade-off Theory, Modigliani-Miller Theorem, Agency Theory, and Pecking Order Theory offer diverse perspectives on how debt influences firm outcomes. Empirical findings reveal mixed results; moderate leverage may lower capital costs and boost performance, whereas unnecessary debt can lead to financial distress. Disparities emerge between developed and developing economies. …

Bank Finance And Private Sector Development: A Comparative Study Of Sub- Saharan Africa And The Oecd Economies, Raymond Asamoah

Doctoral Dissertations (DBA)

The study examines bank credits to the private sector and the factors driving bank decisions in 25 Sub-Saharan Africa (SSA) countries and 25 Organization for Economic Co-operation and Development (OECD) countries, which are considered both developing and developed countries by the International Monetary Fund (IMF) and the World Bank, with comparative stabilized economies. It focuses on the factors that influence banks to offer credit to the private sector. Domestic credit to the private sector as a percentage of gross domestic product (GDP) is used as the dependent variable. 8 determinants or explanatory variables are used to explain Bank credit decisions. …

Effect Of Fintech Adoption On Commercial Banks’ Stability: Evidence From Gcc And North Africa, Ibrahim Ahmed

Theses and Dissertations

This paper looks at how financial technology (FinTech) adoption affects bank stability, measured by distance to default. It uses a unbalanced panel of listed banks from the Gulf Cooperation Council (GCC) and North Africa over the period from 2010 to 2024. To consider differences in bank risk and institutional traits, the study uses random-effects panel regressions along with quantile regression models and interaction specifications. These methods allow the effects of FinTech to change depending on the level of bank risk and the size of the bank. The results indicate that FinTech development does not have the same effect on banks’ …

Greenhouse Gas Emissions And Stock Market Volatility In The Eurozone: Evidence From Sectoral Structure And Climate Policy, Toulin Mohamed Albostany

Theses and Dissertations

This study examines the relationship between greenhouse gas (GHG) emissions and stock market volatility in the Eurozone from 2000 to 2023. The analysis is driven by increasing concerns regarding climate related financial risks, investigating whether various types of emissions induce financial market instability and whether this relationship is influenced by the economic frameworks and climate policy contexts. Utilizing annual panel data from 20 Eurozone countries, stock market volatility is assessed by a Dynamic Conditional Correlation Generalized Autoregressive Conditional Heteroskedasticity (DCC-GARCH) framework, which accounts for time-varying volatility and inter-market dependence. The empirical strategy integrates pooled OLS, fixed-effects models, and instrumental-variables Generalized …

A Quantitative Analysis Of Corporate Social Responsibilities In Ghana, Musah Dumah, Juliet Yaa Boateng

Business Management Review

This study investigates the impact of corporate social responsibility (CSR) on financial performance of banks on the Ghana Stock Exchange from 2019-2023. The research used a descriptive approach and the panel data regression analysis to examine how social, environmental, and economic dimensions of CSR influence Return on Assets (ROA), Capital Adequacy Ratio (CAR) and Return on Equity (ROE). The results indicate significant positive link between social and environmental dimensions of CSR and both ROA and ROE, which aligned with both the stakeholder and the resource-based view (RBV) theories as these theories talk about serving the interest of stakeholders and efficient …

Green Banking Disclosure And Financial Trade-Offs: Evidence From Indonesia’S Banking Sector, Nafis Dwi Kartiko, Amrie Firmansyah

Bulletin of Monetary Economics and Banking

This study explores the relationship between green banking disclosure, firm performance, and firm value, with firm size and age as moderating variables. The study analyzed 578 observations from 43 banking companies in Indonesia. The findings reveal that green banking disclosure significantly negatively impacts firm performance and value, suggesting that green banking efforts may not always yield positive shortterm financial outcomes. However, firm size and age were found to moderate these relationships. Based on these findings, the study highlights the importance of carefully designed green banking strategies and a deeper understanding of their financial impacts by banking management. It also emphasizes …

Ceo Duality And Environmental Efficiency : Empirical Case Study On Chinese Publicly Listed Companies Between 2015-2024, Mariam Ahmed El Taher

Theses and Dissertations

Abstract

The paper investigates the potential effects of CEO duality—where the CEO also chairs the board—on environmental efficiency in Chinese listed companies between 2015 and 2024. Energy intensity, or total energy use per unit of revenue, serves as a stand-in for environmental efficiency. In the full sample, CEO duality is consistently linked to higher energy intensity (≈19–27 units; p< 0.01) using firm, year, and (in the pooled models) sector fixed effects with firm-clustered standard errors, suggesting lower environmental efficiency under unified leadership. In line with creditor discipline, market capitalization is typically negative and substantial, headcount is positive, and leverage (Net Debt/EBITDA) is negative. Moderation tests reveal that leverage significantly reduces the duality–inefficiency link (Duality×Leverage ≈ −0.49; p< 0.05), while interactions with board conflicts, working capital, gender diversity, and disclosure/independence are statistically insignificant.

The study uses an instrumental-variable estimation to account for potential endogeneity, where CEO duality may itself be influenced by unobserved firm characteristics or past performance. Diagnostic tests (Anderson LM, Cragg–Donald F, and Sargan) confirm that the instrument, which is based on …

Patents In Paradise: The Evolution Of Patent Law In The Cayman Islands, Andrew W. Torrance, Andrew P. Morriss, Lisa C. Friedman

Georgia Journal of Law & Technology

This study examines the Cayman Islands’ unique position in the global intellectual property (IP) landscape, contrasting its success as an exporter of financial and legal services with the inherently domestic nature of patent protection. We hypothesize that due to this limitation, the Cayman Islands functions as a strategic, cost-effective jurisdiction for augmenting patent protection initially obtained elsewhere. Our research provides the first comprehensive analysis of Caymanian patents, and through a quantitative examination of patent family data—including filing trends, economic valuation, geographic distribution, and assignee profiles—we find strong empirical evidence to support this thesis.
Our findings reveal a disproportionate presence of …

Xbrl-Formatted Financial Reporting And The Feedback Effect Of Price, Young Jun Cho, Ying-Chi Huang, Holly I. Yang

Research Collection School Of Accountancy

We examine whether the SEC’s XBRL-formatted financial reporting mandate allows investors to better process public financial information, reducing the extent to which managers learn private information from stock price. We find a significant decrease in the investment-price sensitivity for firms that started to file their 10-Ks in an XBRL format, consistent with a reduction in the cost of information processing crowding out private information in stock price. We also find that the decrease in the investment-price sensitivity associated with XBRL adoption is more pronounced for firms with higher business and information complexity and for firms with higher incentives for managers …

Non-Audit Services And Knowledge Spillover: Evidence From Audit Hours And Billing Rates, Jaeyoon Yu, Yongsuk Yun, Yoonseok Zang

Research Collection School Of Accountancy

Using audit hours from firms listed on the Korea Exchange as a direct proxy for audit effort, this study examines whether non-audit services (NAS) purchased from audit firms improve audit efficiency. Our results reveal that the ratio of NAS fees to total fees paid to audit firms is associated with lower audit hours and audit fees, but it is not significantly related to audit billing rates. The reduction in audit effort associated with NAS is more pronounced when NAS provided are audit-related, and for clients who hire Big 4 auditors, have short-tenured auditors, and report a profit. Further, using path …

A Social Norm Perspective On Distorted Information In China, Zhe Li, Massimo Massa, Nianhang Xu, Hong Zhang

Research Collection Lee Kong Chian School Of Business

Can social norms give rise to distorted information in China? We observe that China’s leading social norm related to alcohol consumption and social drinking enhance earnings management. An analysis of toxic alcohol scandals supports a causal interpretation. Further evidence suggests that the influence of alcohol may come from the negative externality that it creates, which is propagated by corporate leaders and cannot be attenuated by market-oriented institutions. Our results reveal a social norm externality that may have important normative implications.

The Influence Of Rotating Savings And Credit Associations Dynamics On Local Trade Flows In Dar Es Salaam, Tanzania, Fred Phanuel Okangi, Theresia E. Busagara

Business Management Review

This study examines the influence of Rotating Savings and Credit Associations (ROSCAs) on local trade flows in Dar es Salaam, Tanzania. Using a structured questionnaire, data were gathered from 107 ROSCA members to assess three key areas: the operational dynamics of ROSCAs, the socio-economic profiles of ROSCA members, and the accessibility of financial resources among ROSCA members. The findings reveal a significant positive relationship between the effective management of ROSCAs and increased local trade flows, underscoring that well-organized associations can facilitate smoother financial transactions. Furthermore, the diverse socio-economic profiles of ROSCA members were shown to promote knowledge-sharing and networking opportunities, …

Impact Of Attention And Yield Curve On Term Structure Of Equity, Matthew C. Aved

CMC Senior Theses

This paper examines the term structure of equity and specifically focuses on the impact of term spread and market attention. The paper builds on prior work that developed the concept by adding behavioral explanations for differences between the short-term and long-term returns while also attempting to link the term structure of equity and the bond yield curve. The study examines these influences by running t-tests and regressions on dividend strip and S&P 500 return data (1996-2017) and attention data collected by Bloomberg (2010-2017). The results provide some insight into how these variables influence short-term and long-term returns; however, limited instances …