Finance and Financial Management Commons^™

One Size Does Not Fit All: Contract Design In Fintech Lending, Jianfeng Hu, Changcheng Song, Gloria Yang Yu

Research Collection Lee Kong Chian School Of Business

Many fintech lenders rely on standardized contract terms to support scale and operational speed. This paper examines whether modest tailoring of loan contracts can improve credit market outcomes. We conduct a randomized field experiment with a large fintech lender that varies loan due dates relative to borrowers' salary paydays. Synchronizing repayment schedules with income cycles reduces delinquency by 29.1% in the experiment and 15.7% in the administrative data. Effects concentrate among liquidity-constrained borrowers: young, low-income, and low-creditlimit individuals. Tailored repayment timing generates substantial economic benefits: borrowers save on overdue penalties, lenders accelerate cash flows, and improved repayment increases future credit …

A Transaction Cost Perspective On Option Anomalies, James O'Donovan, Gloria Yang Yu

Research Collection Lee Kong Chian School Of Business

We examine the impact of transaction costs on the profitability of long-short portfolios of delta-hedged option returns. Of the 24 portfolio sort variables studied, 17 generate positive and significant gross returns, but none remain profitable after accounting for trading costs. We propose a cost-mitigation approach that restores profitability to 7 key portfolios. Furthermore, we demonstrate that the choice of delta-hedging frequency has a first-order impact on transaction costs. Our findings underscore the central role of implementation costs in shaping the investment opportunity set in equity–option markets, highlighting the need to account for transaction costs when evaluating option-based strategies.

Exploratory Innovation: A New Perspective On Family Firms' Under-Diversification Puzzle, Po-Hsuan Hsu, Sterling Huang, Massimo Massa, Yaru Qian, Hong Zhang

Research Collection Lee Kong Chian School Of Business

We propose a new perspective on family firms’ puzzling under-diversification in product spaces: these firms first need to succeed in exploratory innovation so they may diversify into new product markets. We construct a large database of family ownership and patent records of U.S. public firms, and show that family firms produce more exploratory patents than others, a relation that is stronger among under-diversified family firms. In addition, we find that such innovation indeed helps family firms diversify business risks. A causal interpretation of our result is supported by (i) using the property division standard in state-level divorce laws as an …

Bank Efficiency And Monetary Policy Transmission, Md Asad Iqbal Chowdhury, Md Harun Ur Rashid, Mohammad Shamsu Uddin

Research outputs 2022 to 2026

We offer new insights into how bank efficiency influences the transmission of monetary policy through the bank lending channel (BLC) in an emerging economy context. The study draws on a balanced panel of 29 banks listed on the Dhaka Stock Exchange (DSE), covering the period from 2006 to 2024. We first measure bank efficiency using the non-parametric Data Envelopment Analysis (DEA), which captures both technical efficiency (TE) and scale efficiency (SE). Subsequently, we employ three regression techniques such as Ordinary Least Squares (OLS), Fixed Effects (FE), and the two-step Generalized Method of Moments (GMM) to examine the moderating effects of …

Is Complexity Virtuous?, Ryan Elmore, Jack Strauss

Business Information and Analytics: Faculty Scholarship

(Kelly et al., 2024) show that increasing complexity in linear models, with potentially thousands of predictors, is "virtuous". Their work contradicts the dogma of model selection, including the Principles of Parsimony and Occam's Razor. They find that when the number of predictors far exceeds the number of observations, the bias-variance trade-off breaks down, the variance declines, and the Sharpe ratio increases. In the context of ridge regression, we find that very high complexity coupled with large penalty terms (excessive shrinkage) generate forecasts that converge to a rolling window of past returns. For example, we show the past twelve-month moving average …

Unpacking Alpha In Innovation-Driven Etfs: A Comparative Study Of Artificial Intelligence And Blockchain Funds, Davinder K. Malhotra

School of Business Faculty Papers

This paper evaluates the performance and portfolio role of Artificial Intelligence (AI) and Blockchain exchange-traded funds (ETFs) based on monthly returns from 2010 to 2025. The findings show that both AI and Blockchain ETFs generate positive alpha and high standalone returns but also display considerable drawdown risk. Their weak correlations with each other and with broad indices highlight diversification benefits, particularly when combined with U.S. benchmarks. Portfolio optimization reveals that Global Minimum Variance (GMV) and Tangency portfolios ascribe lower weights to these ETFs, while Risk Parity portfolios have a more balanced exposure, helping to diversify risks. Efficient frontier analysis highlights …

Trusted Advisor: Reality Or Fading Myth?, Stephen C. Carlson, Susanna Warnock, Gerald Sullivan, Margaret Ryder

Atlantic Marketing Journal

The role of trusted advisor has long differentiated the role of community banking from traditional national banks in its relationship with small businesses. This study serves two purposes. First is to confirm presence of a trusted advisor relationship and secondly, understand the impact of digital banking services on the community banker – small business owner relationship. Using data collected in a survey of community bankers and small business owners in five southeastern United States, this study assesses the viability of the trusted advisor construct by applying the Integrative Model of Organizational Trust (Mayer, Davis, & Schoorman, 1995, 2007), trust-building behaviors …

Financial Safety Nets, Bank Risk And Depositor Behaviour In Central And Eastern Europe, Dorota Skała

Journal of Banking and Financial Economics

We studied expansions in financial safety nets and their relation to bank risk and depositor behaviour in Central and Eastern Europe, using time-varying regulatory data. In general, we find that stronger deposit insurance and state aid granted to banks are linked with both bank risk and depositor behaviour. However, these relations critically depend on whether safety net instruments are used separately or simultaneously. When deposit insurance is strengthened or state aid is granted, we confirm the standard moral hazard behaviour of banks visible in higher bank risk. In parallel, we observe more elevated deposit growth, implying lower market discipline. Conversely, …

Connectedness Of Uncertainty, Volatility, And Stock Market Performance, Szczepan Urjasz

Journal of Banking and Financial Economics

This study examines the dynamic connectedness and spillover effects among various financial and economic indicators, including uncertainty indices, market volatility, and stock market indices, from 3 June 2008, to 30 December 2024. This interconnectedness implies that shocks originating in one market or asset class can rapidly transmit to others, underscoring the potential for systemic risk and financial contagion. The US emerges as a significant net transmitter of influence within the global financial system, with the VIX playing a crucial role in influencing global financial conditions. Major European equity markets also transmit influence, while the Geopolitical Risk Index (GRI) and the …

Daniels Distinction Portfolio By Maggie Schoeny, Maggie Schoeny

Finance: Undergraduate Distinction Portfolios

A Daniels Distinction Portfolio of experiential education by Maggie Schoeny

Exploring The Bank Lending Channel: How Bank Characteristics Shape Monetary Policy Effectiveness, Filip Świtała

Journal of Banking and Financial Economics

This paper examines how individual bank characteristics influence the transmission of monetary policy through the bank lending channel. Using panel data and a Fixed Effects model validated by the Hausman test, the author analyses how bank size, capitalization, profitability and asset quality affect responses to monetary tightening. The study highlights the importance of inter-bank differences in shaping monetary policy effectiveness and offers insights for regulatory frameworks and macroprudential policies aimed at strengthening financial stability.

Effect Of Servant Leaders’ Humility, Active Listening, And Trust-Building On Employee Engagement In U.S. Private Financial Organizations, Sunny Sung Phd, Tom Butkiewicz Ph.D.

International Journal of Applied Management and Technology

Ineffective leadership characteristics hinder employee engagement in the financial industry, leading to negative organizational outcomes. The purpose of this quantitative, correlational, cross-sectional study was to examine the relationship between servant leaders’ humility, active listening, and trust-building and employee engagement in U.S. private financial organizations. The servant leadership theory of serving followers and the social exchange theory of reciprocity grounded this study. Using simple random sampling, the participants comprised190 employees from private financial organizations in the United States. They completed the Servant Leadership Scale-7; Servant Leadership Assessment Instrument factors 6 and 7; the hearing, understanding, remembering, interpreting, evaluating, and responding (HURIER) …

Social Media Marketing And Business Performance Of Small And Medium Fashion Enterprises In Tanzania: The Moderating Role Of Social Media Strategic Capabilities, Pamela Kishimbo, Juma James Masele, Dev Jani

Business Management Review

This study examines the influence of social media marketing (SMM) on the business performance of small and medium fashion enterprises (SMFEs) in Tanzania, with social media strategic capabilities (SMSCs) as a moderating variable in this relationship. The study is grounded in the Uses and Gratification Theory (UGT) and Resource-Based View (RBV). The study used a cross-sectional survey design, collecting data from 397 SMFEs through structured questionnaires. Data were analysed using descriptive statistics and structural equation modelling (SEM). The findings revealed a significant positive relationship between SMM and the business performance of SMFEs in Tanzania. Furthermore, the findings show that SMSCs …

Engaged Employees Deliver Returns: Evidence On Financial Performance From Spain, Carlos Gomez-Mugica

Engaged Management ReView

Does investing in your employees create long-term value? Although many firms pursue employee-focused policies, studies show little agreement on which specific dimensions of employee satisfaction yield sustainable financial performance. Building on Edmans (2011), who linked employee satisfaction to superior stock performance in the United States, this study turns to the Spanish market. Using 15 years of data from Actualidad Económica—Spain’s most recognized benchmark for employee satisfaction—we apply Herzberg’s (1968) two-factor theory to distinguish between motivators, such as sense of belonging, talent management, and training, and hygiene factors, like compensation and work environment. Applying a Carhart (1997) four-factor model, we find …

Investigating The Relationship Between Noun Classes And Plant Folk Taxonomy In Chasu Language Of Kilimanjaro Region In Tanzania, Peter Rabson Mziray

Journal of Humanities and Social Sciences

The current study investigates the relationship between noun classes and plant folk taxonomy in Chasu (G 22). The study focuses on two objectives: the first objective is to describe the plant folk taxonomy in Chasu and the second objective is to determine the relationship between noun classes and plant folk taxonomy in Chasu. Data were collected from rural villages in Same and Mwanga districts by using free listing, field interviews (jungle-walk-and-identify), and written texts containing Chasu plant names. The findings reveal that Chasu folk taxonomy reflects different ethnobotanical categories; including a unique beginner which is mmea/mimea ‘plant(s)’, and three life …

Can Limited Partners Mitigate Negative Externalities In Private Equity?, Teodor Duevski, Chhavi Rastogi, Tianhao Yao

Sim Kee Boon Institute for Financial Economics

We show how Limited Partners' (LPs) environmental and social (E&S) concerns transmit to private equity (PE) rms through capital supply. E&S incidents in portfolio companies reduce PE fundraising, as E&S-concerned relationship LPs refrain from recommitting and are not easily substituted. Using a legal reform that expands E&S-concerned public pension capital to PE, we causally show that PE rms internalise LPs' E&S concerns, reducing dirty sector portfolio allocation and increasing ESG hiring. Additionally, PE rms with E&S- concerned relationship LPs engage with portfolio companies to manage E&S risks. Limited capital substitutability enables LPs to delegate E&S preferences, shaping PE allocation and …

Fixed Income Fund Report, November 2025, Archway Investment Fund

Archway Investment Fund

No abstract provided.

Equity Fund Monthly Report, November 2025, Archway Investment Fund

Archway Investment Fund

No abstract provided.

The Resource Characteristics Of Small And Medium-Sized Enterprises (Smes) And The Impact Of Platform Participation On Business Performance, Xue Tan

Dissertations and Theses Collection (Open Access)

Against the backdrop of deeply integrated digital and platform economies, the resource characteristics of small and medium-sized enterprises (SMEs) and platform participation’s impact on business performance have emerged as key interdisciplinary research focuses between strategic management and digital economy studies. Building upon the resource-based view (RBV) and dynamic capabilities theory (DCT), the study establishes a theoretical framework of “resource characteristics-platform participation-business performance.” It systematically examines the relationships and moderating mechanisms among SMEs’ resource endowment, platform embedding strategies, and performance outcomes.

The study adopts a mixed-method design, combining quantitative analysis with qualitative case studies. Using valid samples of 333 Chinese SMEs, …

Mda Services: 4 Reasons To Call In The Embezzlement Protection And Investigation Professionals, Reva Darling

The Journal of the Michigan Dental Association

With over 50% of dentists experiencing embezzlement, often due to over-trusting staff with financial tasks, the MDA endorses Prosperident for protection and investigation. Four reasons to seek their help include: inheriting an office manager who knows more about the practice management software than the new owner; financial reports showing income is lower than expected based on patient volume; identifying "red flags" such as an employee refusing vacation or cross-training; and needing proactive strategies to protect cash flow. The average loss is about $109,000. Prosperident offers a $1,500 "First Look" service to covertly review records and identify anomalies, providing evidence needed …