Finance and Financial Management Commons^™

The Platform Architecture Of Health Insurance And Managed Care, Laurell G. Richardson

Doctoral Dissertations (DBA)

No abstract provided.

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.

Corporate Innovation In A World Of Common Ownership, Cheng-Huei Chiao, Bin Qiu, Bin Wang

Finance Faculty Research and Publications

Purpose

The purpose of this paper is to examine the impact of common ownership on corporate innovation, including innovation input, innovation output and postgrant patents.

Design/methodology/approach

This paper uses the ordinary least square model and the difference-in-differences technique to evaluate the effect of institutional interlocking shareholdings on the life cycle of corporate innovation.

Findings

The results show that common ownership impedes innovation measured by patent grants and citations through reduced R&D expenditures. However, common ownership protects postgrant patents by lowering the likelihood that a co-owned firm gets involved in patent litigation and by accelerating the settlement of lawsuits between co-owned …

Cleaning Corporate Governance, Jens Frankenreiter, Cathy Hwang, Yaron Nili, Eric L. Talley

Faculty Scholarship

Although empirical scholarship dominates the field of law and finance, much of it shares a common vulnerability: an abiding faith in the accuracy and integrity of a small, specialized collection of corporate governance data. In this paper, we unveil a novel collection of three decades’ worth of corporate charters for thousands of public companies, which shows that this faith is misplaced.

We make three principal contributions to the literature. First, we label our corpus for a variety of firm- and state-level governance features. Doing so reveals significant infirmities within the most well-known corporate governance datasets, including an error rate exceeding …

A New Explanation For Samuelson’S Dictum And The Stock Market: Novel Events And Knightian Uncertainty, Nicholas Mangee

Finance: Faculty Publications

Samuelson’s Dictum argues that aggregate stock markets do not convincingly reflect information on fundamentals, such as dividends or earnings, and are, thus, inefficient in setting prices. By contrast, firm-level stock prices share a much closer connection with fundamentals and are, therefore, deemed relatively efficient. This paper presents an alternative explanation: Knightian uncertainty stemming from historically unique events produces differential impacts on investor forecasting bounds at the aggregate versus firm level. Several uncertainty proxies are employed from millions of unscheduled events identified in the universe of Dow Jones & Co. financial news reports over the last twenty years. Uncertainty based on …

Creating An Optimal Portfolio With Covariance Adjustments For Moving Average Trends, Jayden Moore

Honors Program Theses

In this analysis, I investigate whether combining these two traditional methods of portfolio construction, mean-variance optimization and trend following, enhance the performance of a portfolio. Specifically, I consider whether stock trends within a pool of stock mechanically influences the covariance matrix for this pool of assets–a crucial input for mean-variance optimization. I then use these trend modified covariances to form a new mean-variance optimized portfolio and then evaluate performance. Instead of using the trends to determine whether or not to invest in a stock, as trend analysis postulates, I will be using trends to create new covariances between assets that …

Digging Into Selection Criteria For Accelerator Acceptance: What Kind Of Owners Are More Attractive?, Veronika Ermilina, Matthew Farrell, Fatemeh Askarzadeh

Management Faculty Publications

Drawing on signaling theory, we aid in the identification of the rarely acknowledged impact of business owner’s features on acceptance to accelerator programs. Using a multi-national sample of 10,298 observations for startups in 166 countries over 2016-2018, we show that accelerators do not evaluate applicants uniformly. We find that entrepreneurs from developing countries are less likely to be accepted by accelerators than entrepreneurs from developed economies. Counterintuitively, we also find an advantage for female entrepreneurs in accelerator acceptance. Further, our results suggest a positive impact of education. Accelerators are a growing provider of entrepreneurial resources and a main driver of …

Small And Medium Scale Firms Financing Strategies In Nigeria, Anthony Ogochukwu Chukwu

Walden Dissertations and Doctoral Studies

Past studies highlighted that small and medium scale enterprises contributions to nations’ economy have been minimal due to their inability to access the sufficient funds for their operations. The challenge is that small business owners lack the right strategies to raise finances required for business operations. The purpose of this study was to explore the lived experiences of small and medium scale enterprise owners in raising of finances from lending institutions. The conceptual framework emphasized the concepts of business environment, financing institutions, knowledge, and experience of small business owners as related to small and medium scale enterprise funding. The research …

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. …

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 …

How The Rise In Student Loan Debt Affects Residential Real Estate, Heather Nicole Dufour

Walden Dissertations and Doctoral Studies

Student loan debt has increased significantly over the past several years. At the same time, there has been a historic drop in first-time home buyers. What remains uncertain is if these two trends are related. The purpose of this quantitative study was to determine the relationship between student loan debt and home ownership for young adults in the United States. The theoretical foundation focused on consumer behavior through Maslow’s motivation-need theory. Individual-level longitudinal data from the National Longitudinal Survey of Youth 1997 was used to examine more than 3,000 participants’ responses regarding their student loan debt and home ownership status, …

College Administrators Strategies To Implement Online Education Services For Increasing Enrollment Revenues, Denise Williams

Walden Dissertations and Doctoral Studies

Financial stability in higher education continues to decrease as enrollment declines. Higher education administrators who do not address declining enrollment may experience lost revenues, potentially leading to inoperability. Grounded in Kotter’s eight-stage process for leading change, the purpose of this qualitative single case, descriptive study was to explore strategies college administrators use to increase enrollment revenues. The participants were four college administrators who successfully increased enrollment revenues. Data were collected using semistructured, virtual interviews and organizational documents. Yin's 5-step approach was used to analyze the data, and five themes emerged: dedicated support from leadership, enhance online services, improve communication, reinforce …

Strategies For Improving Small Restaurant Success Rates Beyond Three Years, Joseph Wilder

Walden Dissertations and Doctoral Studies

Only 65% of new restaurants remain in business after the first three years of operations. Leaders of small restaurants who lack strategies to ensure sustainability witness significant financial losses in their organizations. Grounded in the general systems theory, the purpose of this qualitative multiple case study was to explore the strategies small restaurant owners use to sustain their business beyond three years. A purposeful sampling of three small restaurant owners in Washington County, TN, who successfully used strategies to ensure sustainability beyond three years participated in this study. Data were collected from semistructured interviews, financial documents, and public websites and …

Relationship Between Working Capital Management, Strategies, And Performance Of Nigerian Manufacturing Firms, Ayebainasuoton Francis Alagoa

Walden Dissertations and Doctoral Studies

Many Nigerian manufacturing firms have faced working capital management anomalies due to concerns of balancing profitability and liquidity that led to most business failures. To remain competitive corporate managers and business leaders of manufacturing firms need to operate optimally in working capital by understanding the association between working capital management (WCM), working capital strategy (WCS), and performance. Using the cash conversion cycle theory as the linchpin, the purpose of this quantitative correlational study was to examine the relationship between WCM, WCS, and performance. The study utilized secondary financial data spanning 2014 to 2018 from a random sample of 54 publicly …

Retrospective And Forecasting Analysis Of Increased Long Term Care Demand In Niagara, Breanne Alissa Hines

Walden Dissertations and Doctoral Studies

A problem exists within the Canadian healthcare system as many patients experience longer lengths of stay (LOS) in acute care (AC) and complex care (CC) beds within hospitals because of a lack of long term care (LTC) facilities. The purpose of this study was to evaluate the extra days patients wait for placement and assess the benefits of increasing the number of LTC beds. The theoretical framework used was the four-level model of the health care system. Research questions involved 2017-2019 data for the number of LTC beds required to eliminate waits and evaluate beds needed in the future. This …

The Impact Of Financial Education On The Lives Of Cherokee Nation Citizens, Ron Pense

Walden Dissertations and Doctoral Studies

Financial literacy is something that is important for financial well-being for individuals, but it is lacking, leading to problems such as inadequate saving and poor financial decision making. This research was conducted to examine the impact of financial education for citizens of Cherokee Nation on saving and financial decision making and was grounded in prospect theory and quasi-rational economics. Accordingly, the research questions focused on the extent of differences between individuals with and without financial education for decision making and saving as well as the extent demographic factors play a role. The research design was non-experimental causal comparative with financial …

Uncovering Real Earnings Management: Pay Attention To Risk-Taking Behavior, Samar Alharbi, Md Al Mamun, Nader Atawnah

Research outputs 2014 to 2021

We examine the impact of corporate risk-taking on firm-level real earnings management. We find that firms with higher risk-taking engage in higher real earnings management. Our results are robust to a series of robustness tests, including simultaneous least squares approach, firm fixed effect, change analysis, and pseudo difference-in-difference analysis. Additional analyses reveal that the impact of risk-taking on real earnings management is more pronounced among firms that experience prior-year loss and are run by top-echelons who are risk lovers. Sarbanes-Oxley Act (SOX) regulation does not attenuate the positive effect of risk-taking on real earnings management. However, external monitoring by institutional …

Non-Traditional Systemic Risk Contagion Within The Chinese Banking Industry, Tonmoy Choudhury, Simone Scagnelli, Jaime L.P. Yong, Zhaoyong Zhang Prof

Research outputs 2014 to 2021

Systemic risk contagion is a key issue in the banking sector in maintaining financial system stability. This study is among the first few to use three different distance-to-risk measures to empirically assess the domestic interbank linkages and systemic contagion risk of the Chinese banking industry, by using bivariate dynamic conditional correlation GARCH model on data collected from eight prominent Chinese banks for the period 2006–2018. The results show a relatively high correlation among almost all the banks, suggesting an interconnectedness among the banks. We found evidence that the banking system is exposed to significant domestic contagion risks arising from systemic …

Does Corporate Eco-Innovation Affect Stock Price Crash Risk?, Rashid Zaman, Nader Atawnah, Muhammad Haseeb, Muhammad Nadeem, Saadia Irfan

Research outputs 2014 to 2021

We examine the effect of corporate environmental innovation (hereafter eco-innovation) on stock price crash risk and document a significant negative association. Utilising a large sample of publicly listed U.S. firms for the period 2003 to 2017, we find that an increase in eco-innovation from the 25th to the 75th percentile is associated with 17.62% reduction in stock price crash risk. This outcome remains robust to a variety of sensitivity tests and after accounting for potential endogeneity concerns. Eco-innovative firms attract more institutional investors and equity analyst following and disclose more information leading to lower stock price crash risk. Additional tests …

Trading Macro-Cycles Of Foreign Exchange Markets Using Hybrid Models, Joseph Z. B. Ling, Albert K. Tsui, Zhaoyong Zhang Prof

Research outputs 2014 to 2021

Most existing studies on forecasting exchange rates focus on predicting next-period returns. In contrast, this study takes the novel approach of forecasting and trading the longer-term trends (macro-cycles) of exchange rates. It proposes a unique hybrid forecast model consisting of linear regression, multilayer neural network, and combination models embedded with technical trading rules and economic fundamentals to predict the macro-cycles of the selected currencies and investigate the predicative power and market timing ability of the model. The results confirm that the combination model has a significant predictive power and market timing ability, and outperforms the benchmark models in terms of …