Finance and Financial Management Commons^™

How Companies Can Overcome The Barriers To Sustainability In The Fashion Industry, Madison Perreault

Finance Undergraduate Honors Theses

The primary intent of this paper is to explore existing case studies on the barriers to sustainability in the fashion industry as well as incorporate my own contributions by crafting and analyzing the results of a survey. This survey will give insight to the attitudes and behaviors of respondents towards sustainable fashion. I will also investigate government policies on this topic, or the lack thereof. Finally, I will offer my recommendation on how businesses can overcome the barriers to sustainability in the fashion industry.

Hedge Fund Performance With The Treynor-Black Model, Gurkamal S. Pannu

Honors Theses

This paper seeks to analyze the information ratio differences between long/short hedge funds over the past two decades using the Treynor-Black model. The Treynor-Black model is a method to derive an optimal portfolio allocation across safe and risky assets, based off of expected alphas of active investments and the unsystematic volatility that can be attributed to each given security. We first developed and implemented a model to forecast information ratios on a database of long/short hedge funds. With the predicted information ratios, we calculated out-of-sample allocation weights from a Treynor-Black active portfolio model. These weights were then tested in a …

Independent Directors’ Dissensions And Firm Value, Wonseok Choi, Monika K. Rabarison, Bin Wang

Finance Faculty Publications

Highlights

• Independent directors’ dissension in board meetings plays an effective role in enhancing firm value.
• The effect varies across different levels of dissension.

Abstract

Using a novel dataset of independent directors’ voting activities on items proposed by managers of Korean firms, we investigate whether independent directors’ dissension in board meetings plays an effective role in enhancing firm value through improved corporate governance. Our results indicate that dissension improves firm value. This finding is robust to different measures of firm value and alternative model specifications including subsample, propensity score matching, and instrumental variable analyses. Overall, we contribute to the understanding of …

Central Appalachia Severance Taxation And Policies For Future Economic Growth, Nathan Frisbie

Honors Theses

Central Appalachia is a region in the United States that has been referred to as a paradox by researchers who have studied it. The area is rich with natural resources, yet the region lacks economic development. The mineral extraction industry has been the center of the economy for over a hundred years. The reliance on the industry has caused Central Appalachia to fall behind in several categories. The region has unusually high concentrations of poverty and low high school graduation rates. The revenue from the taxation of coal is the primary source of income for many of the rural counties. …

Case Study In Enterprise Risk Management: Happy Tails, Inc., Clay Chance

Honors Theses

Enterprise risk management is a necessity for businesses in today’s marketplace. Firms that are unaware of risks they are facing often find themselves in unexpected trouble. The field of enterprise risk management has been growing since the 1990s as an effort to minimize the costs that risk imposes on firms. In this case study, I identified risks for Happy Tails, Inc. and recommended various techniques to manage the risks. I found that not only does Happy Tails face many of the same major risks faced by most firms in the marketplace today, but it also faces some unique risks due …

Forecasts And Implications Using Vix Options, Spencer Stanley, William Trainor

Undergraduate Honors Theses

This study examines the Chicago Board Option Exchange (CBOE) Volatility Index (VIX) which is the implied volatility calculated from short-term option prices on the Standards & Poor’s 500 stock index (S&P 500). Findings suggest VIX overestimates average volatility by approximately 3% but explains 55% of S&P 500’s proceeding month’s volatility. The implied volatility (IV) from options on the VIX add additional explanatory power for the S&P’s 500 proceeding kurtosis values (a measure of tail risk). The VIX option’s volatility smirks did not add additional explanatory power for explaining the S&P 500 volatility or kurtosis. A simple trading rule based on …

A Comprehensive Evaluation Of Accounting: A Series Of Case Studies, Emma Acheson

Honors Theses

The following thesis is a compilation of the evaluation and solutions derived from a variety of case studies provided regarding a variation of accounting topics related to financial accounting. Each case presented in this thesis is accompanied by an analysis describing the valuable knowledge that was extracted from each unique study. Through these case studies, real-world accounting concepts can be observed in accordance with the Generally Accepted Accounting Principles as set by the Financial Accounting Standards Board. In addition to the analyses of these case studies, the completion of this thesis involved participation in two accounting case competitions. These presentations …

Internal Capital Markets And Return Predictability In Complex Ownership Firms, Angelica Gonzalez, Sergei Sarkissian, Jun Tu, Ran Zhang

Research Collection Lee Kong Chian School Of Business

Using global cross-ownership data, we find return predictability for four possible cases in ownership-linked firms (OLFs): subsidiary−parent, parent−subsidiary, subsidiary−subsidiary, and parent−parent. A long/short portfolio strategy sorted by the lagged monthly returns of OLFs yields the monthly Fama-French six-factor alpha of 79−113 bps. These results, which are observed only after the establishment of ownership links, are not subsumed by industry or cross-country momentums or by alternative inter-firm relations, including customer−supplier links, strategic alliances, common boards, and shared analyst coverage. The OLF return predictability is best explained by active internal capital markets—a mechanism unique to firms with a complex ownership network.

Three Essays On The Performance Evaluation Of Actively Managed Investment Funds, Qing Yan

Graduate Theses and Dissertations

This dissertation investigates the performance of hedge funds and actively managed U.S. equity mutual funds.

The first chapter examines the relation between hedge funds and the low beta anomaly. Different conditions in the mutual fund and hedge fund industries should lead to different approaches with respect to the low beta anomaly. I find that, unlike most mutual funds, the average hedge fund tends to benefit considerably from the anomaly. About 2.3% per year of apparent alpha for the average hedge fund can be attributed to the low beta anomaly rather than manager skill. Low skill managers are the most reliant …

Pharmaceutical Stock Prices Around Medicare Part D Expansion, Spencer Powell

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

On January 1, 2006 Medicare part D expanded, giving prescription coverage to many Americans. This event offers an interesting question regarding market efficiency, specifically because Medicare expansion was introduced into congress as far back as 1999. Because Medicare part D affected pharmaceutical drug coverage, this study focuses specifically on securities in the pharmaceutical industry. Following an efficient market hypothesis, we would expect to see significant abnormal returns in the post event window, anticipating the legislations effect on demand within the industry. Results showed significant abnormal returns in post-event window, but not in the pre-event window. The returns in the post-event …

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, Spring 1920 to Spring 2023

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 …

Short Selling Around Reverse Stock Splits, Ryan Voges

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

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 …

Retail Trading And Stock Volatility: The Case Of Robinhood, Cooper Jones

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

We examine the relation between Robinhood usership and stock market volatility. We show that daily fluctuations in Robinhood usership, which is used to proxy retail trading, significantly influence various measures of volatility. These results might suggest that Robinhood users contribute to noise trading as they are generally individuals trading on name recognition, media coverage, popularity, and familiarity of products, rather than on fundamental values. In our empirical approach, we find that the percentage increase in Robinhood usership Granger causes increases in daily stock volatility.

The Effects Of Bank Lobbying And Elections Surprises, Gregory Logan Tarbet

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

This paper examines the stock market reaction to banks that lobby relative to banks that did not lobby in the period around the November 9, 2016, U.S. presidential election. Using three different methods of event studies to calculate the cumulative average return, we find that lobbying in banks has a meaningful relationship to an abnormal increase in those firm’s stock prices. Then we attempt to control for both the systemic importance and size of these institutions by performing cross-sectional regressions that include matched size, and the systemic nature of the banks. The results suggest that a heavily regulated industry such …

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 on …

Essays On The Financial Implications Of Economically Linked Firms, Chao Wei

Open Access Theses & Dissertations

This Dissertation consists of two topics on the financial implications of economically linked firms. The Chapter 1 examines the impact of supply chain concentration on purchasing firm's financing costs. I find that purchasing firms engaging in less concentrated supply chain structure are subject to higher risk and cost of equity. This effect is more pronounced when the supplier's financial performance deteriorates or when the purchasing firmâ??s purchase demand is large. I also provide evidence that lower supply chain concentration increases purchasing firm's cost of debt. Lenders charge higher interests on the corporate loans as their compensation for the additional risk …

Investment Leverage For Adaptive Reuse Of Cultural Heritage, Tracy Pickerill

Articles

This article tracks the design of a panoptic toolkit of complementary financial (grant and endowment, tax, debt and equity) and non-financial (regulation, real estate, risk mitigation and performance, capacity building, impact metric and digital network) instruments, designed to leverage capital investment and engender collaborative partnerships, to encourage investment capital to flow to cultural heritage adaptive reuse activities.

A Survey Of Accounting Case Studies, Maddie Dyess

Honors Theses

The following document contains work done over the span of a year under the direction of Dr. Victoria Dickinson at the University of Mississippi in the Honors Accy 420 class. For the thesis requrement in accordance with the standards set by the Patterson School of Accountancy and the Sally McDonnell Barksdale Honors College, I was able to complete a set of case studies pertaining to accounting. The purpose of this research program is to help equip students pursuing a career in the accounting field through a variety of accounting topics. Some cases focus on accounting principles in accordance with GAAP, …

Analyzing The Lifecycle Of A Modular Cutting Board From Design To Production, Caitlin O'Connor, Achintya Prasad

Honors Theses

This Capstone project is intended to demonstrate the process of product development for a modular cutting board from design to production by applying manufacturing principles, utilizing the stage-gate format, and developing a marketing plan. The guiding principles for the project would be the implementation of lean manufacturing and analyzing the quality, performance, lifecycle cost, and time needed for market introduction. Team voting and assignment occurred in Manufacturing 451 in Fall 2020, and the project was completed during Spring 2021. Teams were required to meet outside of class time in order to discuss ideas and build designs. Lab times were scheduled …

Analyzing The Correlation Of The University Of Mississippi Football Program's Success And Financials With That Of The University And Local Businesses In Oxford, Mississippi, Courtney C. Schaeffer

Honors Theses

The purpose of this thesis is to look at Ole Miss athletic events, specifically football games, and the success and profit of local businesses in Oxford, Mississippi and the University of Mississippi. There are several existing studies analyzed in this paper that indicate a correlation between college football programs and the University and city revenues at several other colleges and universities across the country. A historical analysis of the University of Mississippi Athletic Department’s revenues and expenses, football attendance numbers, and University enrollment trends throughout the years 2015 to 2019 indicates how important football is to the University and its …