Finance and Financial Management Commons^™

Happy Analysts, Ole-Kristian Hope, Congcong Li, An-Ping Lin, Maryjane Rabier

Research Collection School Of Accountancy

This paper is the first to investigate the role of work-life balance in financial analysts' performance and career advancement. Using a large sample of Glassdoor reviews by financial analysts, we find a significant non-linear relation between perceived work-life balance and analyst performance and analyst career advancement. Specifically, when perceived work-life balance is relatively low, an increase in work-life balance is associated with better analyst performance and career advancement; however, when perceived work-life balance is already high, a further increase in work-life balance is associated with worse analyst performance and career advancement.

Mathematical Modeling In Finance, Owen Sweeney

Honors Projects

Financial tools play an integral role in the day-to-day lives of individuals and businesses. Many of these tools use predefined formulas to calculate items such as loan payments, interest and capital structure components. These tools do not usually provide the flexibility needed when new parameters are introduced. By utilizing mathematical modeling, these standard formulas can be derived and even improved to provide the needed flexibility.

The Budding Disruption Of Blockchain Technology Upon The Current Structure Of The Music Industry, Bradley Rauman

Senior Theses

One of the most pertinent opportunities within the music industry, and many other industries as well, stems from the use of blockchain technology. Blockchain’s core technology, which enables smart contracts and non-fungible tokens (NFTs), could be used to restructure and decentralize the music industry to be in alignment with the best interests of artists - the individuals responsible for driving the success of this industry.

The current system is outmoded. It evinces a disparity in the level of information held by artists and intermediaries (i.e. labels, publishers, and streaming services) and this disparity enables intermediaries to deduct egregious fees that …

The Impact Of Subreddit Comments On Daily Return And Volume, Joey Wong

Honors College Theses

This paper examines the subreddit WallStreetBets and its online weekday posts discussing stock market trades. By collecting data from the subreddit and Yahoo Finance, linear regression models are done using Rstudio to determine the relationship and impact that the number of comments has on percentage change in return and volume. This study concludes that when it comes to the relationship between returns and the number of comments, it is insignificant. However, we find that trading volume is positively and significantly related to the number of comments.

Auditor Response To Changing Risk: Money Market Funds During The Financial Crisis, Kyle D. Allen, Drew B. Winters

Finance Faculty Publications and Presentations

Audits provide monitoring for investors. The collapse of markets across the financial crisis made assets more difficult to value, which increased risk for auditors. The money markets were at the center of the financial crisis increasing audit engagement risk on money market funds, which at the time of the crisis were highly opaque. Measuring the response to increased engagement risk with audit fees, this study finds that auditors increase their fees for the riskiest class of funds. However, no evidence was found that audit fees increased as funds increased their holdings in the riskiest class of securities.

Biblioshiny R Application On Islamic Microfinance Research, Popon Srisusilawati, Aam Slamet Rusydiana, Yulizar Djamaluddin Sanrego, Naelati Tubastuvi

Library Philosophy and Practice (e-journal)

This study aims to determine the development of Islamic microfinance research trends published by leading journals on Islamic economics and finance. The data analyzed consisted of 441 indexed research publications. The data is then processed and analyzed using the R Bibliometric application to find out the bibliometric map of the development of Islamic economics and finance on Islamic microfinance. The results showed that the number of publications on the development of Islamic economic and financial research had increased significantly. Then, most types of documents that analyze Islamic microfinance are journaled articles. The most popular author is Kassim S, and the …

Impact Assessment And Measurement With Sustainable Development Goals, Hao Liang, David Fernandez, Mikkel Larsen

Research Collection Lee Kong Chian School Of Business

With the rapid growth of sustainable and responsible investment and widespread adoption of the environmental, social, and governance (ESG) reporting and integration by organizations, how to assess and measure ESG impact has become a critical issue. Although the UN’s Sustainable Development Goals (SDGs) provide a useful framework for investors and organizations globally to align their standards, the SDGs are vague on how to implement them at an organizational or activity level. Current practice relies heavily on third-party ESG rating providers, whose scores mostly apply to public equities only. They also suffer from biases, inconsistencies, and a lack of sufficient disclosure. …

Marriage Of Unequals? Investment Quality Heterogeneity, Market Heat, And The Formation Of Status-Asymmetric Ties In The Venture Capital Industry, Pavel I. Zhelyazkov, Adam Tatarynowicz

Research Collection Lee Kong Chian School Of Business

In this study, we investigate the emergence of status-asymmetric ties among venture capital firms. In particular, we highlight the venture's performance trajectory as a powerful antecedent of upward-status asymmetries (in which a lower-status actor brings a higher-status alter into a venture) as well as downward-status asymmetries (in which a higher-status actor brings in a lower-status alter). We hypothesize that lower-status firms tend to bring higher-status alters into ventures on a better performance trajectory, whereas higher-status firms tend to bring lower-status alters into poorly performing ventures. Furthermore, we argue that these effects will be moderated by market heat, which affects whether …

Option Trading And Reit Returns, George D. Cashman, David M. Harrison, Hainan Sheng

Finance Faculty Research and Publications

This article examines the relation between option trading volume and real estate investment trust (REIT) market performance. Specifically, we find that option volume increases are followed by decreases in returns. Furthermore, the portion of option volume that is orthogonal to REIT characteristics drives the observed return predictability relation, thereby suggesting that the return predictability of option trading is (at least partially) attributable to information-based explanations. Finally, consistent with informed traders favoring option market activities due to short-sale costs and/or constraints, we find option based return predictability is more evident within REITs than non-REITs, even though firms within this industry are …

Financial News And Cds Spreads, Paresh Kumar Narayan, Deepa Bannigidadmath

Research outputs 2014 to 2021

This paper examines whether financial news moves CDS spreads for a large number of U.S. stocks sorted into 19 panels consisting of sectors, sizes and credit quality. Using a unique financial news data set, we discover that while both positive and negative news predicts CDS spread changes in most of the panels, annualised mean–variance profits and utility gains are dominated by forecasting models that use positive news as a predictor. At best, risk factors only account for around 31% of observed profits.

Value Creation By Private Equity Firms: A Resource-Based View, Kei Pang

Dissertations

Despite the growing importance of the private equity (PE) industry in the United States, it is unclear how PE firms create value. This study contributes to the PE literature and strategic management research by examining PE firm resources and competencies that drive the success of equity-backed management buyout deals. Specifically, my work proposes a framework to describe the key value creation drivers and sub-drivers that position PE firms for success in all four stages of the PE value chain: Fund Raising, Deal Sourcing, Governing/Managing, and Exiting. I utilize Porter’s (1985) value chain analysis (VCA) and the resource-based view (RBV) to …

Mining Open Government Data For Business Intelligence Using Data Visualization: A Two-Industry Case Study, Anne Gottfried, Caroline Hartmann, Donald Yates

Faculty Publications

The business intelligence (BI) market has grown at a tremendous rate in the past decade due to technological advancements, big data and the availability of open source content. Despite this growth, the use of open government data (OGD) as a source of information is very limited among the private sector due to a lack of knowledge as to its benefits. Scant evidence on the use of OGD by private organizations suggests that it can lead to the creation of innovative ideas as well as assist in making better informed decisions. Given the benefits but lack of use of OGD to …

A Quantitative Analysis On Bitmex Perpetual Inverse Futures Xbtusd Contract, Yue Wu

Undergraduate Economic Review

The perpetual inverse futures contract is a recent and most popularly traded cryptocurrency derivative over crypto derivatives exchanges. Exchanges implement a liquidation mechanism that terminates positions which no longer satisfy maintenance requirements. In this study, we use regression, stochastic calculus, and simulation methods to provide a quantitative description of the wealth/return process for holding an XBTUSD contract on BitMEX, examine the funding rate and index price properties, and relate liquidation to leverage as a stopping time problem. The results will help investors understand liquidation to optimize their trading strategy and researchers in studying the design of crypto derivatives.

Initial Effects Of Subchapter V Of Chapter 11 Bankruptcy During Covid-19, Denise Han

Undergraduate Honors Theses

On February 19, 2020, the Small Business Reorganization Act of 2019 went into effect, ushering in the use of Subchapter V by small business debtors. Lawmakers crafted Subchapter V with the intent to make the reorganization process more streamlined and cost effective than the standard Chapter 11 was for these debtors. With features such as the Subchapter V trustee, cramdown provisions, filing deadlines, lack of a creditors’ committee, and relaxed disclosure requirements, small business debtors should in theory be better positioned to emerge from bankruptcy as viable entities. Through quantitative analysis and qualitative research, this Article explores initial observations on …

The Role Of Non-Governmental Organisations In Social Sustainability: The Case Of Maybank, Fatin Amirah Suhaimi

Student Works (2020-2029)

This study attempts to understand the roles of secondary stakeholders, namely the NGOs, in the dimensional perspective of social sustainability. It also investigates communication strategies evolved over the years by the NGOs in social sustainability and to the extent of which such communications are able to exert their influences on the banking industry in Malaysia. This is a case study concept and uses secondary data as a data collection. The qualitative content analysis is performed to validate a theoretical framework using data from Twitter and online news that is related to the subject of this study, which is the Malayan …

Twenty Years Of Islamic Banking In Indonesia: A Biblioshiny Application, Lina Marlina, Aam Slamet Rusydiana, Paidi Hidayat, Nil Firdaus

Library Philosophy and Practice (e-journal)

This study aims to determine the development of Islamic banking research trends in Indonesia published by leading journals on the theme of Islamic economics and finance. The data analyzed consisted of 500 indexed research publications. The data is then processed and analyzed using the R Bibliometric application to find out the bibliometric map of the development of the role of Islamic banking. The results showed that the number of publications on the development of the role of Islamic banking research in Islamic economics and finance has increased significantly. Then, the most popular writer are Sukmana R, Ascarya, and Ismal …

Outsourcing Life Cycle Model For Financial Services In The Fintech Era, Tristan Lim, Patrick Thng

Research Collection School Of Computing and Information Systems

In today’s financial services landscape, staying ahead of the innovation curve and being disciplined at enhancing core service offerings entail careful resource planning. A well-structured outsourcing arrangement can go a long way towards enhancing long term organizational strategic growth. In the post-2014 FinTech era, (i) strategic management with an innovation focus and (ii) financial technology-associated risks, have brought about changes to outsourcing in the financial services industry. Presently, most outsourcing life cycle models in existing literature seek to provide comprehensive, yet industry-neutral guidelines lacking industry context and depth of coverage. A newly licensed financial institution deciding to embark on outsourcing …

Sustainable Entrepreneurship And Business Performance: Evidence From Food And Beverage Outlets In East Coast Malaysia, Hajera Shah Syed

Student Works (2020-2029)

The concepts of sustainable entrepreneurship and measuring business performance using the tools of sustainability performance measurement and management have gained increasing attention over the decades. The terms such as sustainability and sustainable entrepreneurship have roots in the notion of sustainable development. On the other hand, the role of Small and Medium Enterprises (SMEs) in the economic make up of a country is a significant one. Despite, the important role of SMEs, the area of sustainable entrepreneurship practices among SMEs has been under-researched. Thus, this research aimed to study sustainable entrepreneurship practices of SME managers or manager-owners of Food and Beverage …

Home Price Appreciation And Residential Lending Standards, Yongjia Li, Salman Tahsin

Finance Faculty Publications and Presentations

We explore the effect of home price appreciation on residential lending standards in the U.S. across different sample periods. Using housing supply elasticity measures as instrumental variables for home price changes, we find that rising home prices led to easing lending standards between 2001 and 2006. Mortgage acceptance rates increased more in MSAs that experienced higher home price appreciation, contributing to the credit boom. However, we find that home price appreciation is associated with tighter lending standards between 2012 and 2016, suggesting that banks took a more cautious view of home price appreciation after the financial crisis. To study the …

The Night And Day Of Amihud’S (2002) Liquidity Measure, Yashar H. Barardehi, Dan Bernhardt, Thomas G. Ruchti, Marc Weidenmier

Business Faculty Articles and Research

Amihud’s stock (il)liquidity measure averages daily ratios of the absolute close-to-close return to dollar volume, including overnight returns. Our modified measure uses open-to-close returns matching return and trading volume measurement windows. It is more strongly correlated with trading-cost measures (by 8%–37%) and better explains cross-sections of returns, doubling estimated liquidity premiums. Using nonsynchronous trading near close, we show overnight returns are primarily information driven: including them in Amihud’s proxy for price impacts of trading magnifies measurement error, understating liquidity premiums. Our modification helps wherever Amihud’s measure is required. Our measures are publicly available for 1964–2019 and can be updated. ( …