Finance and Financial Management Commons^™

The New Accounting For Operating Leases: Unintended Consequences In The Airline Industry, Renata Bandeira, Bridget M. Lyons, Carolyn Trabuco

WCBT Faculty Publications

By 2020, new accounting rules for operating leases were applicable to publicly traded companies reporting under either the US Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). The accounting authorities under both standards noted that the new rules were developed to increase the transparency of lease transactions to provide more relevant and comparable information. We compare two Brazilian airlines reporting under IFRS, Azul and Gol, with an operationally similar US airline reporting under US GAAP, JetBlue, to determine whether the new standards improve the ability to understand, evaluate, and compare performance, managerial decision making and credit metrics. …

Co-Jumps, Co-Jump Tests, And Volatility Forecasting: Monte Carlo And Empirical Evidence, Weijia Peng, Chun Yao

WCBT Faculty Publications

This study classifies jumps into idiosyncratic jumps and co-jumps to quantitatively identify systematic risk and idiosyncratic risk by utilizing high-frequency data. We found that systematic risk occurs more frequently and has larger magnitudes than the idiosyncratic risk in an individual asset, which indicates that volatilities from one sector are largely derived from the contagious effect of other sectors. We further investigated the importance of idiosyncratic jumps and co-jumps to predict the sector-level S&P500 exchange-traded fund (ETF) volatility. It was found that the predictive content of co-jumps is higher than that of idiosyncratic jumps, suggesting that systematic risk is more informative …

A Pair Trading Using Reinforcement Learning And Wavelet Decomposition, Panudate Nithinon

Chulalongkorn University Theses and Dissertations (Chula ETD)

In this study, we propose a trading optimization methodology for the pair trading strategy. The Johansen cointegration test and the correlation measure are used for pair selection. We apply Deep-Q-network (DQN) technique in which the trainable reinforcement learning agent is designed to directly control the trading positions. The maximum overlap discrete wavelet transformation (MODWT) algorithm is used for generating the trading signal from the spread time series. Wavelet signal preprocessing is used to extract the original time series into cyclic time series components and long-term behavior components. Based on the in-sample performance this trading model successfully solves a profit maximizing …

Editor's Note, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Grey Directors On Philippine Corporate Boards, Ailyn A. Shi, Evan Lance C. Li Liao, Angelo A. Unite, Michael J. Sullivan

DLSU Business & Economics Review

Independent directors on a firm’s board are theorized to enhance corporate governance by mitigating agency conflicts. However, some independent directors, referred to as grey directors, have prior relationships with managers that may hamper this role. Using data for Philippine firms, we construct a measure that categorizes independent directors as truly independent or grey, based on the 12 criteria used to define board independence as stipulated in the 2017 Philippine Corporate Governance Code. This measure is used to examine which firms are more likely to appoint grey directors and how the presence of grey directors affects firm performance. Consistent with agency …

Does Capital Adequacy Affect Bank Performance? A Comparative Study Of Select Public And Private Sector Banks In India, Shakeeb Mohammad Mir, Farooq Ahmad Shah

DLSU Business & Economics Review

Purpose – The purpose of this paper is to investigate the relationship between capital adequacy (CA) and the performance of select public and private sector banks and thereby to attain an insight of whether the capital adequacy maintenance affects bank performance differently or not based on their nature of concern.

Design/methodology/approach – The study utilized a balanced panel data set using bank level data of 37 banks indexed at Bombay stock exchange (BSE) across public and private sector for the period of 10 years (2009-2018). The study takes 370 observation into consideration (i.e.,37 banks over time frame of 10 years). …

An Experimental Study: Audit Quality Importance On Selecting A Public Accountant Firm (Paf), Ruth Samantha Hamzah, Efva Octavina Donata Gozali, -- Patmawati

DLSU Business & Economics Review

The study aims to emphasize the importance of knowledge of audit quality on Public Accountant Firm (PAF) selection for a company by employing a 2x1 factorial design between-subject. To achieve this goal, we identified differences between the experimental and control groups. The experimental group was given knowledge of audit quality, whereas the control group had no treatment during the process selection of PAF. There were 10 indicators used in term of audit quality, namely audit workload, business expertise, audit turnover, audit hours, result of employee satisfaction surveys, partner compensation, result of client satisfaction surveys, PCAOB inspection results, restatements on audit …

A Theoretical Approach In Explaining The Impact Of Remittances On The Macroeconomy: Evidence From An Overlapping Generations Model For The Philippines, John Paolo R. Rivera

DLSU Business & Economics Review

Despite the constraints posed by the coronavirus pandemic on the global movement of migrant workers, cash remittance inflows remained to be a significant component of the Philippine economy. It still comprises a significant proportion of the economy’s gross domestic product and exceeds the influx of overseas development assistance and foreign direct investments. On top of the various empirical studies discussing the effects of remittances on the macroeconomy, I took the theoretical approach in explicating its impact on the macroeconomy. Through a micro-founded macro-model overlapping generations model, I trace the effects of remittances on the path of steady-state aggregate income, capital …

Small Area Estimates Of Poverty In Region Iii, Caesar B. Cororaton, Arlene B. Inocencio, Alellie B. Sobreviñas, Emmanuel Dc. Barnedo

DLSU Business & Economics Review

Official estimates of the Philippine Statistical Authority (PSA) poverty incidence prior to 2018 are reliable up to the regional level as these are consistent with the sampling domain of the data used for estimation. Below this level, the PSA poverty estimates are unreliable because of very large sampling errors. The high level of unreliability makes the estimates less useful for poverty policy targeting. This paper addresses this concern by combining the Family Income and Expenditure Survey (FIES) and the Census of Population and Housing (CPH) data and using an increasingly accepted technique for small area estimation (SAE). We estimate the …

A Light Purse Is A Heavy Curse: A Systematic Review, Evan Lau, Suzie Adee

DLSU Business & Economics Review

The high level and rising cost in living standard conditions are affecting the individual’s and household’s savings behavior vividly in their day to day life. The general concern arises when individuals fail to address their retirement planning, problem that might affect the next generation. The need to boost financial knowledge and nurture savings behavior are essential to financial planning for retirement well-being. This current research establishes the understanding of how financial literacy influences savings habits for retirement well-being. Systematic review analysis was conducted, traced and implemented on academic databases from the period of 2006 to 2021. A total of 280 …

The Mediating Effects Of Perceived Value Between The Relationship Of Social Media Marketing And Purchase Intention, Tyron W. Yap

DLSU Business & Economics Review

The objective of this study is to test the mediating role of the dimensions of perceived value—conditional, epistemic, monetary, social, convenience, and emotional—between the relationship of social media marketing and purchase intention, in online hotel booking sites. Partial least square structural equation modeling (PLS-SEM) was employed to test all 19 hypotheses. Results revealed that social media marketing positively and significantly influences the dimensions of perceived value, as well as purchase intention. Also, convenience value and conditional value are positively and significantly related to purchase intention. In terms of the mediating effects, it was found that both convenience value and conditional …

Impact Of Cooperative Membership On Technical Efficiency And Marketing Efficiency: The Case Of Dairy Buffalo Farmers In The Philippines, Ceptryl S. Mina, Agham C. Cuevas

DLSU Business & Economics Review

Collective action by smallholder farmers through cooperative membership is regarded as one of the approaches to overcome production and marketing inefficiencies. This study investigates the impact of cooperative membership on the technical efficiency (TE) and marketing efficiency (ME) of dairy buffalo farmers in the Philippines. A total of 351 (249 cooperative members and 102 non-cooperative members) randomly selected farmers from Regions II, III, IV-A, and VII were interviewed. Using cross-sectional farm household data of dairy buffalo farmers, technical and marketing efficiencies were estimated. Linear regression with endogenous treatment was performed to determine the impact of cooperative membership on the TE …

Are Emotionally Stable Employees More Ready To Change? The Moderating Role Of Emotional Stability On The Effect Of Organizational Culture Types On Individual Readiness For Change, Aktsar Hamdi Tsalits, Gugup Kismono, Luksi Visita, Dian Eka Mayasari

DLSU Business & Economics Review

Organizational culture is suggested as a significant predictor of individual readiness for change (IRFC). However, few studies examining the effect of organizational culture types on individual readiness for change showed inconsistent results. This study aims to fill the gap, specifically by testing the moderating effect of emotional stability on the effect of perceived organizational culture types (clan and adhocracy) on individual readiness for change. We obtained 264 responses from employees who worked at the SM Company, one of the companies in Indonesia that performed a change in the company. Results of moderated regression analysis on the collected data indicate support …

Round After Round: Understanding Dry Powder As A Determinant Of Spread In Leveraged Loans, Raizel Yu

CMC Senior Theses

Given the rise in private equity companies’ dry powder reserves, as well as the increased prevalence of covenant-lite loans pointing to a change in the overall dynamic of leveraged loan dealmaking, this paper aims to determine whether dry powder is a significant determinant of leveraged loan spreads. This paper uses a sample of loan level contract variables, borrower characteristics, and macroeconomic conditions from DealScan, Compustat, Pitchbook, and the Federal Reserve Economic Data. My findings are consistent with the hypothesis that availability of funds, measured in dry powder, is a good determinant of spread. As leveraged loans are a necessary component …

Mechanism And Methods Of Early Prevention Of Bank Insolvency, Morgan Alexander Fox

DLSU Business & Economics Review

Early detection of the financial condition of commercial banks is especially relevant in modern conditions of economic turbulence related to the global COVID-19 pandemic. The article provides a brief overview of the applied methods in the early detection of financial problems and prevention of bank insolvency. This study also explains the use and purpose of systems such as CAMELS and multivariate analysis models.The article illustrates the necessity of the complex use of multivariate analysis models and averaging simulation results in obtaining the most reliable results.A mechanism is offered for organizing the process of early prevention of bank insolvency.When implementing this …

Corporate Diversification And Stock Risk In Thailand: Evidence From A Global Shock, Miaoqi Su

Chulalongkorn University Theses and Dissertations (Chula ETD)

The objective of this paper is to investigate the impact of corporate diversification on stock risk for 345 companies listed on Stock Exchange of Thailand during the sample period from 4 January 2017 to 30 December 2021 which covers both Covid and pre-Covid period. Furthermore, the differences in effect between Covid and pre-Covid period are also studied. The result shows that diversifying through only business segments and ignoring global diversification increases stock volatility. Furthermore, it also shows that diversifying through only business segments and ignoring global diversification increases stock volatility during the Covid period compared to pre-Covid period. The result …

Strategies To Mitigate Voluntary Employee Turnover, Mutale Chilangwa Chisela

Walden Dissertations and Doctoral Studies

AbstractBanking leaders are negatively affected when employees voluntarily leave their employment. Banking leaders who implement strategies can enhance employee satisfaction to mitigate voluntary employee turnover. Grounded in the transformational leadership theory, the purpose of this qualitative multiple-case study was to explore strategies some banking leaders use to mitigate voluntary employee turnover. Participants were five banking leaders from local and international banks, four banks in Lusaka, Zambia, and one bank in Dar es Salaam, Tanzania, who successfully implemented strategies to mitigate voluntary employee turnover. Data were collected from semistructured interviews and company documents and analyzed using Yin’s five phases. Three themes …

Assessment Of Unconventional Financing On The Operating Performances Of Nigeria’S Small And Medium Enterprises, Akiki Sami Maroun

Walden Dissertations and Doctoral Studies

The purpose of this basic qualitative study was to assess the unconventional sources of funds that are available for growth of small and medium enterprises (SMEs) in Nigeria. The focal concentration was to provide answer to the research question which entails the impacts that unconventional financing method has on the operating performances of SMEs in Nigeria. The conceptual framework was the pecking order theory. The study employed a narrative approach, and data gathered using semi structured interviews from a sample size of 20 SMEs in Lagos, Nigeria. Participants were either entrepreneur/SME owner or knowledgeable employees/managers of SME. Data were compiled …

Mitigating Loss Of Cash Flow From Disruptive Technologies, Shenita Boudreaux Martin

Walden Dissertations and Doctoral Studies

New technologies continually disrupt the financial service sector by providing products and services faster than traditional financial service institutions. Financial service leaders are concerned with losing market share to disruptive technologies. Grounded in disruptive innovation theory, the purpose of this qualitative, single holistic case study was to explore the strategies some financial service leaders use to mitigate the loss of cash flow from disruptive technologies introduced by fintech companies. The participants were eight financial service leaders who helped develop competitive strategies to mitigate the loss of cash flow introduced by disruptive technologies. Data were collected using semistructured interviews and a …

The Relationship Between Length Of Stay, Hospital Characteristics, And Cost Of Care In Acute Care Hospitals In The U.S., Maria Mikhataykina

Walden Dissertations and Doctoral Studies

Rising healthcare costs make access to healthcare less accessible for many individuals. Hospital administrators, payer stakeholders, and patients are concerned with rising healthcare costs, as many patients may be hindered from receiving quality health care. Grounded in complex adaptive systems theory, the purpose of this quantitative correlation study was to examine the relationship between inpatient hospital (a) LOS, (b) bed size, (c) location, (d) region, (e) control/ownership, and cost of care. The participants were community hospitals participating in the Nationwide Inpatient Sample (NIS) data collection tool of the Healthcare Cost and Utilization Project. The results of the multiple linear regression …