Testing Investment Strategies For Superior Predictive Ability,
2020
Utah State University
Testing Investment Strategies For Superior Predictive Ability, Jack K. Baldwin
All Graduate Plan B and other Reports, Spring 1920 to Spring 2023
When different models are tested on one data sample and repeatedly altered in order to be found significant, the results are likely spurious. This is data-snooping – an ever-growing problem in the finance industry likely due to fierce competition and developments in data processing capacity. In academia, although recognized as a deplorable practice, data-snooping is likewise pervasive perhaps as a result of poor incentive structures at both the university and publisher levels. I manifest the problem of data-snooping through multiple academic and industry examples and then summarize Halbert White and Peter Hansen’s offered solutions, White’s Reality Check and Hansen’s Test …
Entrepreneurial Finance: Analyzing The Demand For The Personal Guarantee,
2020
Captain, Supply Corps, United States Navy (Retired)
Entrepreneurial Finance: Analyzing The Demand For The Personal Guarantee, Walter W. Brown Ii, Kent T. Saunders
The Journal of Entrepreneurial Finance
This study contributes to the current body of entrepreneurial finance literature by analyzing multiple aspects of personal guarantees. We conducted a survey yielding 1,462 responses from owners or managers of incorporated small businesses geographically dispersed throughout the United States. Of these, 383 C or S corporations had loans in place during 2014. The survey focuses on personal guarantees used on five types of loans: lines of credit, mortgages, equipment loans, vehicle loans, and a loan type referred to as "other loans." We found the variation increase in personal guarantees for equipment loans, vehicle loans, and other types of loans during …
Impact Of Aml/Cft Regulations On Digital Disruptions (Fintech) And Financial Inclusion In Sub-Saharan Africa,
2020
Central Bank of Nigeria
Impact Of Aml/Cft Regulations On Digital Disruptions (Fintech) And Financial Inclusion In Sub-Saharan Africa, David Nkang Odu
Bullion
Financial Technology is becoming paramount in all financial institutions, being utilized in helping companies manage most of their financial operations efficiently through the use of software and specialized algorithms. The future of finance will shine brightest when it provides standard and valuable services to the society, however this will come with its own merits and demerits. I have prepared this report to carry out a detailed discussion on the impact that the AML/CFT controls have on FinTech and the financial inclusion initiative in sub-Saharan Africa. The AML/CFT controls can be applied more effectively in the formal systems for banking and …
Insider Trading Enforcement And The Private Information Environment: Evidence From The Newman Ruling,
2020
University of Arkansas, Fayetteville
Insider Trading Enforcement And The Private Information Environment: Evidence From The Newman Ruling, Andrew T. Pierce
Graduate Theses and Dissertations
I exploit a shock to U.S. insider trading law to investigate whether a reduction in the enforceability of tipper-tippee insider trading restrictions leads to changes in information parity among investors and the efficiency of price discovery. The December 2014 Federal Second Circuit Court of Appeals ruling in US v. Newman constrained enforcement by restricting the types of exchanges between managers and investors that trigger tipper-tippee insider trading liability. Following Newman, I find that Second Circuit hedge funds experienced a significant increase in their stock picking ability of Second Circuit stocks in terms of preempting future earnings announcement returns and future …
Behavioral Finance For The Individual Investor,
2020
Liberty University
Behavioral Finance For The Individual Investor, Drake Gens
Senior Honors Theses
The Efficient Market Hypothesis (EMH) has been generally accepted in academia despite its well-researched flaws; by understanding how and when markets deviate from efficiency, investors have an opportunity to not only better understand their investing habits, but also possibly generate higher investment returns. Various market anomalies, such as the Value Effect (De Bondt & Thaler, 1985), the Monday Effect (French, 1980), and the January Effect (De Bondt and Thaler, 1958 & 1987), attest to the fact that markets experience periods of deviation from efficiency. Fiévet and Sornette (2016) finding that markets experience inefficiency during periods of significant volatility is confirmed …
How Does Convergence Influence Cluster-Based Economic Growth In Regions?,
2020
Technological University Dublin
How Does Convergence Influence Cluster-Based Economic Growth In Regions?, Jamie Meehan
Doctoral
This thesis is a novel study examining the influence of convergenceon cluster-based economicgrowth in regions. The goal of which isto provide exploratory insights frombothnational and international perspectives. This research study examines the relevant literature in thefieldsof convergence,clusters,and regions. It thenadoptsideologies from the most salient studies,to create a conceptual framework. There is limitedextantliterature currently available on the connection between convergence, cluster-based economicgrowth,and regions. AnOECD (2011) report identified the importance of regions as they are themost effective place to make economic decisions. The convergence approachof moving towards equality, bottom-up growth,and co-opetition can be regarded as being imperative to the successful augmentation of …
Trading Regularity And Fund Performance: Evidence In Uncertain Markets,
2020
Singapore Management University
Trading Regularity And Fund Performance: Evidence In Uncertain Markets, Lin Tong, Zhe Zhang
Research Collection Lee Kong Chian School Of Business
High trading regularity funds outperform low trading regularity funds more during periods of low market returns and greater market and economic uncertainty. Their trading also has strong return predictability on stock returns during periods of greater uncertainty. They trade more around news events, and their news related trading predicts stock return stronger during periods of greater uncertainty. They also profit from liquidity provision in highly uncertain market environment. Overall our evidence suggests that high trading regularity funds trade more frequently during periods of high uncertainty when information production and processing skill is more valuable and when the demand for liquidity …
Is The Synthetic Stock Price Really Lower Than Actual Price?,
2020
Singapore Management University
Is The Synthetic Stock Price Really Lower Than Actual Price?, Jianfeng Hu
Research Collection Lee Kong Chian School Of Business
Conventional wisdom suggests synthetic stock prices are lower than actual prices due to short‐sale constraints and voting premiums. This study finds that such underpricing of the synthetic midquote disappears if arbitrageurs face security borrowing costs. The synthetic spread predominantly contains the actual spread. Synthetic stock overpricing is as common as underpricing but the former is more persistent and more profitable. The difference between synthetic and actual quotes is significantly affected by options market makers' hedging costs and investors' demand for leverage.
Blockchain-Based Public Auditing And Secure Deduplication With Fair Arbitration,
2020
Singapore Management University
Blockchain-Based Public Auditing And Secure Deduplication With Fair Arbitration, Haoran Yuan, Xiaofeng Chen, Jianfeng Wang, Jiaming Yuan, Hongyang Yan, Willy Susilo
Research Collection School Of Computing and Information Systems
Data auditing enables data owners to verify the integrity of their sensitive data stored at an untrusted cloud without retrieving them. This feature has been widely adopted by commercial cloud storage. However, the existing approaches still have some drawbacks. On the one hand, the existing schemes have a defect of fair arbitration, i.e., existing auditing schemes lack an effective method to punish the malicious cloud service provider (CSP) and compensate users whose data integrity is destroyed. On the other hand, a CSP may store redundant and repetitive data. These redundant data inevitably increase management overhead and computational cost during the …
Does The Fossil Fuel Divestment Movement Impact New Oil And Gas Fundraising?,
2020
Singapore Management University
Does The Fossil Fuel Divestment Movement Impact New Oil And Gas Fundraising?, Theodor Florian Cojoianu, Francisco Ascui, Gordon Clark, Andreas Hoepnner, Dariusz Wójcik
Research Collection College of Integrative Studies
This article explores whether increasing fossil fuel divestment commitments are related to the reduction of capital flows into the oil and gas sector, based on an analysis of syndicated lending, equity and bond underwriting across 33 countries from 2000 to 2015. We find that increasing oil and gas divestment pledges in a country are associated with lower capital flows to domestic oil and gas companies. This effect is enhanced in more stringent environmental policy regimes and diminished in countries which heavily subsidise fossil fuels. However, the divestment movement may have an unintended effect, insofar as domestic banks situated in countries …
International Tax Competition And Foreign Direct Investment In The Asia-Pacific Region: A Panel Data Analysis,
2020
Singapore Management University
International Tax Competition And Foreign Direct Investment In The Asia-Pacific Region: A Panel Data Analysis, Chengwei Xu, Alfred M. Wu
Research Collection School Of Accountancy
Purpose: The purpose of this study is to investigate how a country's competitive tax policy influences its inward foreign direct investments (FDI) in the Asia–Pacific region, even when given particular constraints (e.g., population, public governance, skilled labor, and so on) exist. Design/methodology/approach: The paper uses the system GMM estimation approach to test the hypothesis. Data on FDI, corporate income tax, and various confounding factors were drawn from Ernst and Young's worldwide corporate tax guide, the World Bank, and other sources to create a panel of 28 economies over the period 2000–2016. Findings: The present research confirms the negative association between …
Influence Of Moody’S Rating Downgrade And Upgrade On The U.S. Equity Market: A Case Study Of Ibm, Ford, And Boeing,
2020
Pace University
Influence Of Moody’S Rating Downgrade And Upgrade On The U.S. Equity Market: A Case Study Of Ibm, Ford, And Boeing, Qianhe Zhang
Honors College Theses
The main purpose of my thesis is to determine the current influence of credit rating downgrades and upgrades made by Moody's on the U.S. equity market. Previous literature has already talked about the effect of credit ratings on stock or bond price, however, my paper is different from previous works. I will focus on a single nationally recognized credit rating organization; I will talk about the both downgrade effect and the upgrade effect; I will do a case study of the credit rating effect on Ford, IBM, and Boeing. The results indicates that overall, Moody’s rating announcements have an important …
Noise Traders, Fintech, And Equity Market Volatility,
2020
Georgia Southern University
Noise Traders, Fintech, And Equity Market Volatility, William T. Collins
Honors College Theses
The literature provides ample evidence that the last decades have seen an increase in noise trader activities, in part driven by the development of fintech. This paper strives to educate readers on the term noise traders as well as fintech. Moreover, it argues that the evolvement of noise trader activities accompanied with fintech has increased equity market volatility over time. The study finds that equity market volatility has indeed increased over time and is not driven by periods of crisis. Furthermore, this increase in volatility is more severe for small stocks versus large stocks, which is in line with the …
Governing The Gold Rush Into Emerging Markets: A Case Study Of Indonesia’S Regulatory Responses To The Expansion Of Chinese-Backed Online P2p Lending,
2020
Hong Kong University of Science and Technology, China
Governing The Gold Rush Into Emerging Markets: A Case Study Of Indonesia’S Regulatory Responses To The Expansion Of Chinese-Backed Online P2p Lending, Angela Tritto, Yujia He, Victoria Amanda Junaedi
Patterson School of Diplomacy and International Commerce Faculty Publications
Peer-to-peer (P2P) lending has the potential to boost financial inclusion in emerging markets. This paper contributes to the literature on fintech governance in emerging Asian markets. It examines the case of the Indonesian government’s approach in regulating the P2P lending sector using both primary interviews and secondary firm-level data. Driven by regulation tightening in China and regulatory gaps in Indonesia, Chinese investments became the largest in this sector contributing, however, to growing risks from illegal business practices. The Indonesian government responded by creating new regulations and institutions, mitigating risks without stifling the potential for financial inclusion. We conclude a proactive …
Using Macroeconomic Variables To Preserve The Predictive Power Of Bankruptcy Prediction Models Across Time,
2020
Bryant University
Using Macroeconomic Variables To Preserve The Predictive Power Of Bankruptcy Prediction Models Across Time, Edward Golas
Honors Projects in Finance
At its core, bankruptcy prediction is a binary classification problem where a researcher attempts to model a company’s financial status, defined as either bankrupt or non-bankrupt, based upon a slew of financial ratios, market indicators and even macroeconomic variables. Several studies (Altman and McGrough, 1974; Moyer, 1977 and Mensah, 1984) have noted that such models tend to suffer reduced accuracy when predicting bankruptcy for time periods other than the one in which they were trained. A possible solution to this problem is to include macroeconomic variables in the model, since such variables fluctuate over time and are suspected of impacting …
Implementing The Flipped Classroom In An Undergraduate Corporate Finance Course,
2020
Embry-Riddle Aeronautical University
Implementing The Flipped Classroom In An Undergraduate Corporate Finance Course, Jayendra S. Gokhale
Publications
This study analyzes flipped mode of instruction in Corporate Finance. In the current environment, with many students in quarantine and greater emphasis on self-study, it is even more relevant to understand how students understand and retain concepts derived from online environment. In this study, performance of students in flipped mode is compared with the performance in traditional lecture-style. In flipped class, students watched a brief video-lecture, took an online assessment quiz prior to attending an interactive discussion-based class session, unlike the traditional lecture style. The results of this study suggest that with flipped mode, most students take greater responsibility of …
Methodologies And Techniques For Determining The Value Of An Aircraft,
2020
Embry-Riddle Aeronautical University
Methodologies And Techniques For Determining The Value Of An Aircraft, Bijan Vasigh, Farshid Azadian, Kamran Moghaddam
Publications
Aircraft valuation and the estimation of an accurate aircraft price is undoubtedly a challenging task that has significant consequences for airlines. This paper presents an asset valuation model to show how a series of endogenous as well as exogenous factors can influence the value of an aircraft. Specifically, a discounted cash flow methodology is used to forecast the valuation of an old or new generation aircraft. Both total operating revenue and aircraft operating costs are taken into account to devise a reliable pre-tax profit measurement that is used as the basis of the discounted cash flow analysis. A sensitivity analysis …
Do User-Generated Ratings Affect Hotel Valuations? – An Analysis Of The Chicago Hotel Market,
2020
University of Missouri-St. Louis
Do User-Generated Ratings Affect Hotel Valuations? – An Analysis Of The Chicago Hotel Market, Shailesh Patel
Dissertations
Today’s travelers are increasingly relying on aggregated online opinions to make purchase decisions. One of the sectors most impacted by these online reviews is the hospitality industry, where consumer review websites such as TripAdvisor, Expedia, and Bookings.com play a critical role in influencing consumer's choice of hotel and the price they will pay for the room. Recently, there have been studies investigating the various aspects of user-generated online reviews and ratings. The purpose of this paper is to investigate the impact of user-generated ratings on hotel valuations. Our paper does this using regression analysis to study the impact of TripAdvisor …
Investors’ Reaction To Fund’S Performance: A Study On Fund Flow-Performance Relationship In Islamic Equity Funds - An International Evidence,
2020
Universiti Malaya
Investors’ Reaction To Fund’S Performance: A Study On Fund Flow-Performance Relationship In Islamic Equity Funds - An International Evidence, Maimunah Johari
Student Works (2020-2029)
For many Islamic fund investors, in particular, the Muslims, the aim of their investment is not solely for financial rewards. Spiritual merits accrued through the observance of the Islamic principles brought forth another form of satisfaction. The compulsion to any investment, which involves any prohibited elements and businesses as prescribed by Shari’ah law, becomes an unidentified persuasion. These were despite theories, which expound that Islamic investment is a unique category of ethical investment invites a myriad of issues of investment inefficiencies. Investors who choose to invest with Islamic funds are considered irrational as they are ignoring the profitability and performance …
A Cross-Country And Country-Specific Modelling Of Stock Market Performance, Bank Development And Global Equity Index In Emerging Market Economies: A Case Of Brics Countries,
2020
East Texas A&M University
A Cross-Country And Country-Specific Modelling Of Stock Market Performance, Bank Development And Global Equity Index In Emerging Market Economies: A Case Of Brics Countries, Ebere Ume Kalu, Augustine C. Arize
Faculty Publications
This study investigated in cross-country and panel form the interactions of bank development, stock market development and global equity index, focusing on the BRICS countries covering the period 1990 to 2018. We found a bidirectional causation between bank development (CPSGDP) and stock market performance as proxied by the depth of the markets (MCAPGDP) in the BRICS countries. Cointegration was also found using the panel cointegration framework and the bounds test for the ARDL estimators. This largely proves that a long-run relationship of both direct and reverse nature exists between bank development and stock market performance. For the bank development and …
