Finance and Financial Management Commons^™

Award Winners: 2018 Atrs Global Airport Performance Benchmarking, Tae Oum, Chunyan Yu

Publications

The ATRS Global Airport Benchmarking Project measures and compares the performance of several important aspects of airport operations: Productivity and efficiency, unit costs and cost competitiveness, financial results and airport charges. The report also examines the relationships between various performance measures and airport characteristics as well as management strategies in order to provide a better understanding of observed differences in airport performance. The 2018 report includes 204 airports and 24 airport groups of various sizes and ownership forms in Asia Pacific, Europe and North America. This presentation highlights the top efficiency award winners.

Investigating Consumer Optimum Stimulation Level And Exploratory Online Buying Behavior, Claro G. Gañac

DLSU Business & Economics Review

Technology and the Internet have changed every facet of human life on the planet. It has spawned online marketplaces where consumers anywhere around the world can shop 24/7 throughout the year. This empirical study aimed to explain the meteoric rise of Internet shopping not just because of the leaps-and-bounds advances in technology but also by intrinsic predisposition of consumers to engage in exploratory buying and consumption. The Internet has brought about a shopping environment with high inherent avenues for exploratory behavior. It is the proposition of this study that online shopping has encouraged exploratory information acquisition, heightened evaluation involvement, and …

Editor's Note, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Do Hedge Funds Exploit Rare Disaster Concerns?, George P. Gao, Pengjie Gao, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

We find hedge funds that have higher return covariation with a disaster concern index, which we develop through out-of-the-money puts on various economic sector indices, earn significantly higher returns in the cross-section. We provide evidence that these funds’ managers are more skilled at exploiting the market’s ex ante rare disaster concerns (SEDs), which may not be associated with disaster risk. In particular, high-SED funds, on average, outperform low-SED funds by 0.96% per month, but have less exposure to disaster risk. They continue to deliver superior future performance when SEDs are estimated using the disaster concern index purged of disaster risk …

The Real Effects Of Exchange Traded Funds, Frank Weikai Li, Xuewen Liu, Chengzhu Sun

Research Collection Lee Kong Chian School Of Business

This paper investigates the effects of exchange-traded funds (ETFs) on the real efficiency of the underlying securities. We document strong evidence that being held by ETFs increases the sensitivity of a firm's investment to its own stock price. This is consistent with the model prediction on the managerial learning channel. Higher ownership by ETFs increases the firm's stock price informativeness about systematic shocks but may decrease the informativeness about firm-specific shocks; however, the firm manager cares most and wants to learn from the stock price mainly about systematic shocks in making investment decisions as he already has precise private information …

Masked Instability: Within-Sector Financial Risk In The Presence Of Wealth Inequality, Youngna Choi

Department of Applied Mathematics and Statistics Faculty Scholarship and Creative Works

We investigate masked financial instability caused by wealth inequality. When an economic sector is decomposed into two subsectors that possess a severe wealth inequality, the sector in entirety can look financially stable while the two subsectors possess extreme financially instabilities of opposite nature, one from excessive equity, the other from lack thereof. The unstable subsector can result in further financial distress and even trigger a financial crisis. The market instability indicator, an early warning system derived from dynamical systems applied to agent-based models, is used to analyze the subsectoral financial instabilities. Detailed mathematical analysis is provided to explain what financial …

Essays On Stock Repurchases And Exchange Listing, Dung Thi Bui

LSU Doctoral Dissertations

My dissertation consists of two essays on stock exchange switching and the association between discretionary payouts and real investment.

In the first essay, we examine 49 firms that voluntarily switch from the NYSE to Nasdaq for the period from 2000 to 2013 to determine whether the choice between listing on the NYSE versus on Nasdaq matters any more. We find that there is no documentable economic benefits to moving and some costs in the form of lower liquidity. Consistently, there is little evidence of a significant market reaction. We also find that switch firms are far more like the NYSE …

Special Budget Approval Meeting Agenda & Information Packet, Wku Board Of Regents

Board of Regents Documents

Special meeting agenda and information packet regarding the 2018-2019 operating budget, tuition and fee schedule.

The Impact We Can Make Through Investment: Securing Financial Freedom By Serving Others, Miles A. Flett

Honors Projects

Wage disparity is a major political issue in the United States, but it has far more to do with the health of the economy as a whole. Statistically speaking, it is very difficult for women to participate equally in an economy where they are systematically marginalized. This hurts businesses, it hurts global markets and it damages overall GDP. Statistical data drawn primarily from the Bureau of Labor Statistics underline the differences that women face from various standpoints. Race is a primary influencer, but across the board all women make significantly less than men of the same background for the same …

A Statistical Analysis Of The Predictive Power Of Japanese Candlesticks, Mohamed Jamaloodeen, Adrian Heinz, Lissa Pollacia

Journal of International & Interdisciplinary Business Research (2014-2019)

Japanese Candlesticks is a technique for plotting past price action of a specific underlying such as a stock, index or commodity using open, high, low and close prices. These candlesticks create patterns believed to forecast future price movement. Although the candles’ popularity has increased rapidly over the last decade, there is still little statistical evidence about their effectiveness over a large number of occurrences. In this work, we analyze the predictive power of the Shooting Star and Hammer patterns using over six decades of historical data of the S&P 500 index. In our studies, we found out that historically these …

The New Financial Framework For The Cuban Non-State Sector, Pavel Vidal, P.V. Viswanath

Faculty Working Papers and Articles

A cornerstone of the current Cuban economic model reforms is its opening to the non-state small-scale sector. Using the results of a survey of non-state businesses, we look at the provision of financial services to the small- and medium-sized enterprises in the non-state sector from two perspectives: first, the nature of the new credit regulations and bank policies and how they accomplish the evaluation of credit to a hitherto non-existent sector; and second, how these small business clients view their relationship with their lender state banks. We look at Cuba from the perspective of a socialist economy in transition and …

Basic Directions Developing The Internal Audit In Commercial Banks, Z. Umarov, Sh. Radjabov

International Finance and Accounting

This article discusses the main directions of improving the internal audit of commercial banks as an essential condition for improving the stability of the banking system and provides scientific recommendations.

The Evolving Enforcement Of E.U. Competition Laws, Martin A. Goldberg, James Mohs

Finance Faculty Publications

Entrepreneurship and new business development has been increasingly moving to the forefront of media, public and governmental attention. Many countries have enacted competition laws to curb abuses and specifically prevent unfair competition. Unlike the Unites States, enforcement of competition law in Europe has historically been the domain of the government, generally under the of the European Commissioners for Competition, and does not rely on private actions of entrepreneurs and new business developers. By combining existing worldwide case law, legislation and governmental policies as a lens, this paper is intended to fill a gap in the existing literature relating to the …

The Robust "Maximum Daily Return Effect As Demand For Lottery" And "Idiosyncratic Volatility Puzzle", Jared Egginton, Jungshik Hur

Marketing Faculty Publications and Presentations

We form indexes of overpriced and underpriced stocks by ranking stocks based on the disposition effect and anchoring bias. We document the negative relation between maximum daily return and future returns (MAX effect) is confined to overpriced stocks which make up about half the entire sample. We find that the average cross-sectional correlation between maximum daily return and idiosyncratic volatility is nearly 90%. Consistent with prior studies the idiosyncratic volatility puzzle disappears after controlling for the MAX effect. However, when using a sample with a $5 price breakpoint and controlling for overpriced stocks the idiosyncratic volatility puzzle and the MAX …

An Exploration Of Internal Controls And Their Impact On Employee Fraud In Small Businesses, Kent Lachney

Doctoral Dissertations and Projects

The purpose of this qualitative study was to gain greater understanding of the current practices of the internal control systems of small businesses and to explore the effectiveness of their systems in comparison with anti-fraud activities recommended by forensic accountants. The researcher selected five small businesses that were members of the Central Louisiana Regional Chamber of Commerce and had fewer than 100 employees. The researcher interviewed the owners and/or managers of the businesses, reviewed and analyzed company documentation, interpreted data, made observations, and offered recommendations. The researcher asked each participant to respond to questions related to the five elements of …

An Overview Of The Cheque Payments System In Nigeria, Onyeka Samuel Okonkwo

Bullion

This paper is designed to examine critically the modern trends in the cheque payments system in Nigeria. In the light of this, the paper is divided into nine parts. The second part of the paper examines the concepts of payment , clearing and settlement. The evolution of cheque clearing in Nigeria is examined in part three. The part four presents the cheque standard in Nigeria. The part five gives the synopsis of cheque payment in Nigeria while the cheque truncation system(CTS) and its benefits and challenges are examined in part six and part seven respectively. The paper concludes with recommendations …

Shareholder Coordination And Stock Price Informativeness, Incheol Kim, Christos Pantzalis, Bin Wang

Finance Faculty Publications

We show that firm-specific information is more likely to be incorporated into stock prices when firms have stronger shareholder coordination. The premise of our work is that geographic proximity reduces communication costs among shareholders, thereby leading to better coordination. The positive coordination-informativeness relation is driven mainly by shareholder coordination among dedicated and independent institutions. We further show that the positive effect is more pronounced for firms with weaker governance mechanisms, suggesting that shareholder coordination could serve as a substitute conduit of price discovery. Lastly, we propose that shareholder coordination improves stock price informativeness through the channel of enhanced voluntary disclosure …

On The Fintech Revolution: Interpreting The Forces Of Innovation, Disruption And Transformation In Financial Services, Peter Gomber, Robert J. Kauffman, Chris Parker, Bruce W. Weber

Research Collection School Of Computing and Information Systems

Firms in the financial services industry have been faced with the dramatic and relatively recentemergence of new technology innovations, and process disruptions. The industry as a whole, and many newfintech start-ups are looking for new pathways to successful business models, the creation of enhanced customerexperience, and new approaches that result in services transformation. Industry and academic observers believethis to be more of a revolution than a set of less impactful changes, with financial services as a whole due formajor improvements in efficiency, in customer centricity and informedness. The long-standing dominance ofleading firms that are not able to figure out how …

Acquiring Organizational Capital, Peixin Li, Frank Weikai Li, Baolian Wang, Zilong Zhang

Research Collection Lee Kong Chian School Of Business

Organizational capital is the accumulation and use of private information to enhance economic efficiency for a firm. Theory has argued that organizational capital is typically embodied in employees and the organizational structure, and is hard to transfer across organizations. In this paper, we study whether organizational capital is transferable across firms via mergers. The evidence shows that acquirers gain more from acquiring firms with higher organizational capital and acquirers are also willing to pay a higher premium for higher organizational capital targets. The evidence suggests that acquiring higher organizational capital targets creates synergies which are shared between acquirers and targets.

Benefits Of Relationship Banking: Evidence From Consumer Credit Markets, Sumit Agarwal, Souphala Chomsisengphet, Chunlin Liu, Changcheng Song, Nicholas S. Souleles

Research Collection Lee Kong Chian School Of Business

Using a unique panel dataset that contains comprehensive information about the relationships between a large bank and its credit card customers, we show that relationship accounts exhibit lower probabilities of default and attrition, and have higher utilization rates, than non-relationship accounts. Dynamic information about changes in the behavior of a customer's other accounts at the same bank helps predict the behavior of the credit card account over time. These results imply that relationship banking offers significant potential benefits to banks: information the lender has at its disposal can be used to mitigate credit risk on the credit card account.