Finance and Financial Management Commons^™

Performance Measurements On Concession Periods To Forecast Water Infrastructure Investment Returns, Reyneck Buthani Magudu Khoza

Walden Dissertations and Doctoral Studies

Public-private-partnership stakeholders in South Africa are inconsistent in applying performance measurements to optimize concession period agreements for water infrastructure development and drive infrastructure financial value at postconcession termination. The purpose of this qualitative e-Delphi study was to assess consensus among 17 public-private-partnership experts on the best practice within the South African context for using performance measurements to optimize concession period agreements for water infrastructure development and drive infrastructure financial value at postconcession termination. The research question pertained to their level of consensus. Determination and analysis of the concession period conceptual model that illustrates how to achieve benefits of the concession …

Foreign Direct Investment And The Roles Of Multinational Entreprise, Belay Mekuria Tessema

Walden Dissertations and Doctoral Studies

AbstractSub-Saharan Africa (SSA) countries experienced successive declines in foreign direct investment (FDI) flows in the textile and apparel manufacturing sector because of a range of macro and micro factors. Leaders of textile and garment organizations who fail to increase FDI are at risk of failure. Grounded in eclectic theory (OLI paradigm), the purpose of this qualitative single case study was to explore strategies leaders of textile and garment organizations use to increase FDI for enabling business profitability and growth. The participants comprised four senior leaders from one textile and garment organization in Hawassa, Ethiopia, who effectively implemented strategies to increase …

Strategies For Mitigating Voluntary Employee Turnover In Small Businesses, Eric Regneco Gant

Walden Dissertations and Doctoral Studies

AbstractVoluntary employee turnover costs businesses significant resources in training and recruitment. An employee’s voluntary turnover could cost small business owners $3,000 to $10,000 in training and recruitment costs and reduce company performance, profitability, and competitive advantage. Grounded in Vroom’s expectancy theory of motivation, the purpose of this multiple case study was to explore strategies that owners of small businesses in the eastern United States use to mitigate voluntary employee turnover. Data were collected from semistructured telephone interviews with five small business owners with at least three years of experience mitigating voluntary employee turnover. Data were analyzed using Yin’s five-step approach. …

Public Investment, Foreign Direct Investment, And Budget Deficit, Komi Koutche

Walden Dissertations and Doctoral Studies

AbstractThe budget deficit is a worldwide economic problem that reduces the effectiveness of public policies in public finance. Public business leaders and theorists struggle to find appropriate solutions to address the budget deficit. However, in most countries, the budget deficit is still one of the most critical challenges. Grounded in Keynes’s general theory, the purpose of this quantitative correlational study was to examine the relationship between public investment, foreign direct investment, and budget deficit. Secondary data collected from the World Bank website representing the 76 low-income and low-middle-income countries were analyzed using multiple regression. The multiple linear regression results indicated …

Microfinance For Smallholder Farmers: The Lived Experience Of Borrowers In Akaki, Ethiopia, Amsalu Alemayehu Gutema

Walden Dissertations and Doctoral Studies

Microfinance was intended to help smallholder farmers (SHFs), but the results have been disastrous for some individuals who have been unable to repay loans, often displacing them from their land. A lack of understanding of the lived experiences of borrowers complicates a full analysis of microfinance as a tool for poverty alleviation. The purpose of this qualitative descriptive phenomenological study was to explore the lived experiences of SHF borrowers in Akaki District, Ethiopia, related to microfinance loan repayment decisions. Habermas's critical social theory, which divides the social world into lifeworld and system, was the conceptual framework for the study. The …

Volatility Spillover Between Stock Market And Currency Market Of Pakistan In The Presence Of Structural Breaks, Muhammad Jamil, Hifsa Mobeen

Business Review

This study examines the volatility transmission between the currency market and the stock market of Pakistan in the presence of structural breaks. For this purpose, daily data from the stock market and currency market is analyzed. An empirical investigation is conducted using the bivariate EGARCH model and the test for multiple structural breaks developed by Bai and Perron (2003). This study analyses these markets with the inclusion of sudden changes. Results of the EGARCH model suggest that volatility spillover is positive and bidirectional between these markets of Pakistan.

Crummer Suntrust Portfolio Recommendations: Crummer Investment Management [2021], Ryan Abronski, Louis Charpentier, Hannah Johnson, David Baldock, Austin Hieb, Luiggi Reno, Shawn Hudson, Eric Necamp, Brandon Carlin, Jackson Pliska, Jacob Carroll

Crummer Truist Portfolios

SunTrust endowed this portfolio to provide scholarships for future Crummer students and to give current students a practical, hands-on learning opportunity. This year, we are pleased to be able to award $50,000 in scholarships. We are extremely grateful for SunTrust’s generosity and investment in higher education. We have all learned a great deal from this experience and the responsibility of managing real money.

Our first challenge is to establish a portfolio position that takes advantage of economic opportunities while avoiding unnecessary risk and conforming to the Crummer SunTrust Investment Policy Statement (IPS). We are also tasked by the IPS to …

Don’T Get Screwed: What Factors Determine The Inclusion Of J. Crew Blockers?, Michael Sill

CMC Senior Theses

A “J. Crew Maneuver” is a type of collateral-stripping event that transfers the value of a nearly insolvent company from the lender to the borrower. This concept matters to lenders because it exposes them to significant downside risk through the loss of hundreds of millions of pledged collateral. While credit analysts and debt lawyers have commented on the importance of preserving creditor value ex ante through lender-protective clauses embedded within debt documents, this paper breaks ground on empirically studying the determinants of these protective clauses known as “J. Crew Blockers”. I hypothesize that private equity backing, a contractionary credit environment, …

Specialization And Institutional Investors’ Performance – Evidence From Publicly Traded Real Estate, Eli Beracha, George D. Cashman, Hilla Skiba

Finance Faculty Research and Publications

We examine the extent to which 50,620 global institutional investors’ specialization in publicly traded real estate securities is related to their investment performance. Consistent with the information advantage theory (Merton Journal of Finance 42, 483–510, 1987; Van Nieuwerburgh and Veldkamp Journal of Finance, 64, 1187–1215, 2009), we show a positive relation between the percentage of the institution’s portfolio invested in real estate securities and the return generated on those securities. Moreover, we present evidence that the institution’s level of active share to real estate securities is positively related to performance. Additionally, we find that the benefits related to …

Analyst Non-Gaap Reporting: When Do Equity Analysts Adjust Gaap Earnings – An Application Of Text Based Firm Complexity, Patrick Chen

CMC Senior Theses

Equity analysts adjust GAAP earnings to report non-GAAP figures that they believe better represent a firm’s current and future performance. The importance of such non-GAAP(street) figures has been determined and accepted by the literature, but the process in which analysts arrive at such figures is less understood. I apply a newly defined measure of firm complexity using text based analysis of firm annual reports and investigate its effect. When complexity increases, it becomes harder to individuate different components of a system. When that system is a firm, complexity then increases the difficulty in determining an accurate measure of performance. The …

Deterring Algorithmic Manipulation, Gina-Gail S. Fletcher

Faculty Scholarship

Does the existing anti-manipulation framework effectively deter algorithmic manipulation? With the dual increase of algorithmic trading and the occurrence of “mini-flash crashes” in the market linked to manipulation, this question has become more pressing in recent years. In the past thirty years, the financial markets have undergone a sea change as technological advancements and innovations have fundamentally altered the structure and operation of the markets. Key to this change is the introduction and dominance of trading algorithms. Whereas initial algorithmic trading relied on preset electronic instructions to execute trading strategies, new technology is introducing artificially intelligent (“AI”) trading algorithms that …

How Good Are Equity Analysts? Investigating The Impact Of Analyst Recommendations On Portfolio Performance, Maxwell Dawson

CMC Senior Theses

This paper lies at the convergence of the portfolio optimization literature and the equity research industry. I attempt to quantify the benefit provided to an investor by equity analysts from an asset allocation perspective, and hypothesize that no significant benefit exists because of the incentive misalignments facing analysts as well as the inherent difficulty of valuing stocks. Using a Bayesian regression framework with prior beliefs for alpha generated based on equity analysts’ recommendations, I find no significant difference in out-of-sample performance between portfolios which take analyst recommendations into account and portfolios which do not.

Zoom In, Class Out: An Event Study On Publicly Traded Ed Tech Firm Valuations During Covid-19, Matiss Ozols

CMC Senior Theses

This paper examines how publicly traded Ed Tech firms reacted to negative announcements regarding COVID-19. Using an event study method, I document how an international portfolio of Ed Tech firms react across multiple event windows. The results show that Ed Tech firms reacted positively to the announcement of the first US death and negatively to the World Health Organization’s declaration that COVID-19 was a pandemic. Additionally, differences in geographical location did not impact cumulative abnormal returns across event windows. Finally, firm-specific characteristics such as volatility and financial leverage had little or no significance on stock returns.

Spac Success Factors: Determinants Of Post-Acquisition Share Price Growth, Cade Moffatt

CMC Senior Theses

This paper examines characteristics of Special Purpose Acquisition Companies (SPACs) as determinants of post-acquisition success. I collected data on all SPACs which merged with a target firm between 2016 and the start of 2021. The data set controls for a host of variables including the contractual design of the SPAC, management team characteristics, founder compensation structure, key underwriter data, and performance metrics measured throughout the SPAC’s lifecycle. Using a multivariable regression, I find new and robust insights into the SPAC market. Contrary to current literature, I conclude that the misaligned incentives caused by the initial at-risk capital supplied by founders …

Effects Of Advance Refunding Municipal Bonds After The U.S. Tax Cuts And Jobs Act, Sarah Curry

Doctor of Business Administration Dissertations

The process when U.S. municipalities retire callable bonds early and refinance them with bonds of a lower coupon rate is called advance refunding. The advance refunding of debt is a widespread practice in municipal finance; however, the Tax Cuts and Jobs Act of 2017 removed the option to keep this debt tax-exempt and now requires municipalities to convert from tax-exempt to taxable. The purpose of this research was to evaluate the impact eliminating advance refunding of municipal debt into tax-exempt status has on the municipality’s advance refunding decision making process, specifically at the state level. Municipal governments are still …

Mapping The Knowledge Of Islamic Accounting Studies On Shariah Audit: A Bibliometric Analysis, Luqman Hakim Handoko, Sepky Mardian

Library Philosophy and Practice (e-journal)

The issues of shariah audit appeared more than three decades ago along with the progress of the Islamic financial industries. But it is challenging to obtain a study explaining the current state of shariah audit research to date. Therefore, it is necessary to assess the research on the Shariah audit. Thus, this study aimed to analyze and visualize the current state of shariah audit using a bibliometric approach. The bibliometric analysis was conducted by using VOSviewer software. To fulfill this goal, the keywords such as shariah audit, shariah auditing, and its variations were searched from the Scopus database. The articles …

Three Essays On Financial Economics, Zhe Peng

Theses and Dissertations (Comprehensive)

Essay 1 deals with a topic in market microstructure. It examines a type of trading mechanism called a speed bump. The speed bump was introduced to slow down incoming orders to reduce the informational advantage of certain high-speed traders who could exploit their information to take advantage of slower traders. In 2016, the Investors Exchange (IEX) became the first securities exchange in the US to introduce a speed bump. In our first essay, we use trading data from IEX to study this issue. IEX's speed bump includes two layers of delays: a fixed delay on displayed orders and a contingent …

Smart Contracts: Will Fintech Be The Catalyst For The Next Global Financial Crisis?, Randall Duran, Paul Griffin

Research Collection School Of Computing and Information Systems

Purpose: This paper aims to examine the risks associated with smart contracts, a disruptive financial technology (FinTech) innovation, and assesses how in the future they could threaten the integrity of the global financial system. Design/methodology/approach: A qualitative approach is used to identify risk factors related to the use of new financial innovations, by examining how over-the-counter (OTC) derivatives contributed to the Global Financial Crisis (GFC) which occurred during 2007 and 2008. Based on this analysis, the potential for similar concerns with smart contracts are evaluated, drawing on the failure of The DAO on the Ethereum blockchain, which involved the loss …

Is Cryptocurrency A Hedge, Safe Haven, Diversifier Against Thailand, Indonesia, Philippine Stock Market On Pre-Covid-19 And During Covid-19?, Suphawit Keakultanes

Chulalongkorn University Theses and Dissertations (Chula ETD)

This research study whether cryptocurrencies act as a hedge, safe haven or diversifier against Thailand, Philippines, and Indonesia stock exchange market. Using DCC-GARCH model and hypothesis test, we examine the hedge ratio and the conditional correlation between cryptocurrencies and TIP’s stock exchange market. The sample cover data on the return of the TIP’s index, Bitcoin, Ethereum, Tether and Litecoin from 1st January 2016 to 31st December 2021. The empirical results show that traditional cryptocurrencies, such as Bitcoin and Litecoin can act as diversifier, Ethereum can act as hedge instrument in PSEI index. Tether can act as the hedge and safe …

The Impact Of Derivative Warrant Introduction : Evidence From Stock Exchange Of Thailand, Phuket Kumhangphon

Chulalongkorn University Theses and Dissertations (Chula ETD)

The impact that derivative instrument has on the underlying stocks is important for regulators and investors to concern. This paper tries to examine the impact of derivative warrant introduction on liquidity (measured by trading volume) and risk (measure by volatility and systematic risk beta) of the underlying stocks in stock exchange of Thailand. This paper examines the impact on trading volume by using t-test for testing the equality of two means between pre-derivative warrant introduction period and post-derivative warrant introduction period and using dummy variable regression for finding a change in the underlying’s trading volume after the introduction of derivative …