Finance and Financial Management Commons^™

Staying One Step Ahead Of The Growing Electric Vehicle Market, Russell Molter

Honors Projects

Electric vehicles are becoming more popular among drivers as they become more affordable and as people become more aware of the benefits of electric vehicles. Because of this, the demand for electric car chargers is quickly increasing across the country. This includes BGSU’s campus. Right now, there are seven chargers available on campus, but with the trends in how the electric vehicle market is growing, BGSU should create a plan to install many more chargers to meet the increasing demand for charging stations. This strategy will allow BGSU to keep up with the growing electric vehicle market, which will additionally …

Navigating The Impact Of Covid-19 On Small Commercial Businesses And Insurance Companies, And A Call To Action For Future Communicable Disease Outbreaks, Natalie Peña

Honors Program Theses and Research Projects

The short-term and long-term effects of Covid-19 have caused many small commercial businesses to face financial hardships, loss of employees, and even closures for entities that were already experiencing low profit margins. Distraught with their businesses suffering, owners turned to their primary insurance companies to receive compensation through their business interruption policies. However, most insureds were upset when they discovered that their insurance plans did not include communicable diseases and pandemics as a covered peril. This led to many small businesses battling these issues in the courts and fighting for insurance companies to provide financial assistance to them during this …

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 …

Effects Of Commodity Prices On Stock Returns In The Firearm Industry, Lance Siler

Honors Program Theses and Research Projects

A modified version of the CAPM (Capital Asset Pricing Model) is used to evaluate the potential relationship between commodity inputs and the stock returns of public firearm companies. The data analysis involved using the model to develop expected returns for each of the companies’ stock and then a regression was run between the returns provided by the model and historical returns. The p-values for each regression are statistically significant. This indicates that there is some sort of connection between metal commodity returns and stock returns.

Algorithmic Trading And Market Quality: International Evidence, Ekkehart Boehmer, Kingsley Fong, Juan (Julie) Wu

Department of Finance: Faculty Publications

We study the effect of algorithmic trading (AT) on market quality between 2001 and 2011 in 42 equity markets around the world. We use exchange co-location service that increases AT as an exogenous instrument to draw causal inferences of AT on market quality. On average, AT improves liquidity and informational efficiency but increases short-term volatility. Importantly, AT also lowers execution shortfalls for buy-side institutional investors. Our results are surprisingly consistent across markets and thus across a wide range of AT environments. We further document that the beneficial effect of AT is stronger in large stocks than in small stocks.

Gospel Impact And Stewardship Tool (Gist): Visual Mapping To Discover Gospel Imperatives For Strategic Ministry Decisions, Martin Edward Lee

Doctor of Ministry Major Applied Project

Lee, Martin Edward “Gospel Impact and Stewardship Tool: Visual Mapping to Discover Gospel Imperatives for Strategic Ministry Decisions.” Doctor of Ministry. Major Applied Project, Concordia Seminary, 2021. 260 pp.

This research project and the resulting Gospel Impact and Stewardship Tool (“GIST”) addresses congregational stewardship deficits from a systems perspective, with a shared-stewardship imperative for all leaders and members of a congregation, instead of focusing stewardship on the individual. The GIST Ministry Map provides a visual picture of how individual ministries are interconnected. This project illustrates how a learning environment, and the GIST visual ministry mapping process, help improve strategic decision-making …

Kalman Filter Vs Alternative Modeling Techniques And Applied Investment Strategies, Heather E. Dempsey

Doctoral Dissertations (DBA)

This thesis examines the efficacy of alternative modeling techniques to predict stock market returns modeled with time-varying coefficients with the goal of developing and implementing a trading strategy that yields excess returns. First, we determine the modeling technique with the smallest forecast error using historical predictors: the differenced dividend-price ratio, lagged S&P 500 returns, and the change in implied volatility. The candidate modeling techniques include both constant and recursive ordinary least squares (OLS) regression methods and diverges from previous return forecast literature with the comparison of a state-space model (SSM) cast as a VAR(1) process to each OLS technique. The …

Media As Other Information For Fundamental Valuation, Jiajia Fu, Jingran Zhao

School of Accountancy Faculty Publications

The media is an important information intermediary. We investigate the informational role of the media by examining whether media content, measured by the sentiment of news articles, contains information about a firm’s fundamental value beyond that conveyed in earnings, book value, and analyst forecasts. We show that incorporating media content into Ohlson’s (1995) residual income model generally improves its ability to predict future residual income, explain current stock prices, and predict future stock prices. Our results are strengthened when media coverage is higher and when media sentiment is more dispersed

A Reexamination Of The Illiquidity Premium In Cryptocurrencies, Wyatt Fitz

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

In this study, I examine the illiquidity premium amongst the 372 most actively traded cryptocurrencies from September 2014 to May 2021. I find that the average returns on the most illiquid cryptocurrencies are larger than those on the most liquid cryptocurrencies. My results are robust to different weighting mechanisms for the market index and to various asset pricing model specifications. These results suggest that an investor might be able to go long a portfolio of illiquid cryptocurrencies while simultaneously shorting a portfolio of liquid cryptocurrencies to effectively generate a positive risk-adjusted return.

Financial Literacy And Behavior In Credit Unions: An Exploration Of Member Financial Literacy And Financial Behavior In The Credit Union Model, Peter R. Fisher

Doctor of Business Administration (DBA)

Financial literacy is economically essential and plays a critical role in an individual’s overall financial capability, yet financial literacy is declining. Financial knowledge has been linked to financial behavior, with financially literate individuals displaying positive financial behaviors while those with lower financial knowledge exhibit poor financial behavior. Credit unions are member-owned financial cooperatives whose purpose is to support their membership’s social and economic goals. Credit unions are well-positioned to deliver financial literacy to members (McKillop & Wilson, 2015). This study examined financial literacy and behavior among credit union members and compared the financial literacy of credit union members with results …

Factors Associated With Financial Stressors, Financial Stress, And Financial Behaviors, Paula Andrea Lopez Alvarado

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

As of the end of the first quarter of 2021, overall consumer debt reached $14.64 trillion. The more debt a family has, the higher the reported levels of financial stress the family reports. Using data from the 2018 National Financial Capability Study (NFCS), the purpose of this study was to examine the associations among financial stressors, financial stress, and positive and negative financial behaviors. The findings of this study suggested that Black individuals had the highest levels of financial stressors, financial stress, and negative and positive financial behaviors among four racial/ethnic groups. The findings also suggested that high financial stress …

The Volatility Implications Of The Chinese Cryptocurrency Ban, Keaton Manwaring

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

In this paper, I examine the effect of the May 18^th, 2021 Chinese ban of cryptocurrency transactions on the overall volatility of the cryptocurrency market. To do this, I analyze, in both univariate and multivariate settings, range-based volatility in various event windows surrounding the event. I find clear economic and statistical change in volatility in the five days after the ban. In the ten-day period after the ban, there is a moderate economic change in volatility. In the forty-day period after the ban, there is little economic change in volatility. I conclude that the Chinese ban had a …

Cross-Cryptocurrency Return Predictability, Li Guo, Bo Sang, Jun Tu, Yu Wang

Research Collection Lee Kong Chian School Of Business

Using the minute-frequency data on Binance, we find strong evidence of cross-cryptocurrency return predictability. The lagged returns of other cryptocurrencies serve as significant predictors of focal cryptocurrencies up to ten minutes, in line with slow information diffusion. The results are robust across various methods, including the adaptive LASSO and principal component analysis. Furthermore, a long-short portfolio formed on the past returns of cryptocurrencies can generate a daily return of 2.16% out-of-sample after accounting for transaction costs, indicating sizable economic value of cross-cryptocurrency return predictability.

Tightening And Loosening Of Macroprudential Policy, Its Effects On Credit Growth And Implications For The Covid-19 Crisis, Aida Ćehajić, Marko Košak

Economic and Business Review

In this study, we analyze the effects of macroprudential measures on bank lending in the European Union. We develop several dedicated macroprudential policy indices reflecting different policy actions taken by the authorities in individual member countries, with the aim to affect credit activity in national banking sectors. In our empirical model, we measure responsiveness of gross loans in banks to selected macroprudential policy indices, taking into account a set of bank level and macroeconomic control variables. We use the Fitch Connect bank level dataset with financial statements for 3,434 European banks with 18,616 observations and macroeconomic data provided by the …

Essays On The Economic Consequences Of Regulatory Monitoring, Yicheng Zhu

Open Access Theses & Dissertations

This dissertation studies the economic consequences of regulatory monitoring in two chapters. In the first chapter, using hand-collected data on Financial Industry Regulatory Authority (FINRA) violations, I examine how enforcement actions on financial institutions affect their investment bankersâ?? role as mergers and acquisitions (M&A) advisors. I document that FINRA violations in the current year lead to a loss of M&A market share in the following year. I further find that client performance improves in future M&A deals advised by the sanctioned banks. Specifically, I document that future bidder (client) cumulative abnormal returns (CARs) are positively related to both the number …

Harnessing Digitalization For Sustainable Economic Development: Insights For Asia, John Beirne, David Fernandez

Research Collection Lee Kong Chian School Of Business

Digitalization has helped to transform economies by enhancing competitiveness and productivity across a wide range of sectors. The use of big data and the rise of online platforms have accelerated this process over the past decade. In addition, the adoption of digital solutions in the face of social distancing and lockdown measures introduced due to the coronavirus disease 2019 (COVID-19) pandemic has been integral to the economic recovery process. The shift to a digitalized economy has also reduced barriers to market entry for firms, lowered inequality, and led to a promotion of social and economic inclusion. Advances in digital technology …

Economic Significance In Corporate Finance, Todd Mitton

Faculty Publications

Reporting the economic significance of findings in corporate finance has become increasingly common, but a review of the literature reveals shortcomings in typical reporting practices. Researchers can more effectively communicate the practical importance of findings by using standard measures of economic significance that are scaled by the standard deviation of the dependent variable, by providing all statistics necessary to calculate economic significance, and by providing benchmarks by which to evaluate the magnitude of economic significance. To support these objectives, I show why measures scaled by the standard deviation are preferable, and I provide benchmarks based on hundreds of established findings …

Monetary Policy Transmission And Bank Interest Rates In Nigeria, Eleam Victor E., Ekwom Chinyelu G., Ariolu Chibueze C., Umebali Chukwubuzo J., Balogun Adewale T.

CBN Journal of Applied Statistics (JAS)

The paper examines the adjustment of retail and money market interest rates to changes in discount corridor of the monetary policy in Nigeria. A vector error correction model was adopted for this study, using monthly data from 2007:06 to 2019:12. We further accounted for structural breaks in the dataset to improve its policy reliability. The adjustment parameters were found to be significant but with slow speed of adjustment. This finding provides evidence of the weakness of the discount corridor in monetary policy transmission in Nigeria. Furthermore, the results showed no asymmetric adjustment of retail rates to long run equilibria. Lastly, …

Application Of Optimization Techniques In Corporate Cash Management, Venkateswara Reddy Dondeti

Theses and Dissertations in Business Administration

For any individual person or firm, there is a trade-off between carrying too much or too little cash on hand to meet the day-to-day transactions demand for cash. The BAT model, named after three eminent economists, Baumol, Allais, and Tobin, is the foundation for almost all cash management models in use today. The goal of the BAT model is to minimize the total costs involving the brokerage fees and the opportunity cost of interest lost on the cash held on hand. The brokerage fees are incurred in connection with the transactions for liquidating securities and converting them into cash. The …

Coo2 Bhanga Munda Data, Asli Ascioglu, Padma Kadiyala

Finance Department Faculty Journal Articles

No abstract provided.