Finance and Financial Management Commons^™

The Effect Of Financial Literacy On Firm Performance, Erwin Joseph

Doctoral Dissertations (DBA)

This study examines the influence of financial literacy on firm performance by integrating state-level financial literacy data with firm-level metrics including Market Capitalization, Tobin’s Q, ROA, ROE, and EBIT. Utilizing data from the National Financial Capability Study (NFCS) and COMPUSTAT for the years 2009 to 2024, and a sample size of 100,126 observations, it highlights how higher levels of financial literacy correlate with improved firm valuation and profitability. The study employs the Financial Literacy Index and its imputed counterpart using the Fully Conditional Specification (FCS) method to address missing data. Regression analyses reveal that financial literacy significantly impacts both valuation …

Optimal Prediction Of Bitcoin High And Low Prices: An Exploratory Analysis, Tatiana Rice

Doctoral Dissertations (DBA)

The purpose of this paper is to provide traders with a trader friendly model that would enable them to accurately predict Bitcoin’s high price and low price so that they are able to make more informed decisions for improved risk management when trading the highly volatile asset – Bitcoin. To achieve this purpose, this paper poses the following research question: Which statistical model-frequency combination best predicts – in terms of Mean Absolute Percent Error (MAPE), Akaike Information Criterion (AIC), and Schwart Information Criterion (SIC) – Bitcoin’s high price and low price? This paper also poses the objective of ensuring that …

Mortgage Default Classification Modeling For Variable Analysis, Brendan R. Goggins

Honors College Theses

The financial crisis of the early 2000’s is a prime example of the severe consequences that mortgage default and borrower insolvency can have on economies at large. Mortgage default specifically is a prime case with the popularization of mortgage backed securities and the commonality of this loan structure. Multiple hypotheses and models have been formed to understand the reasons, causes, and consequences of mortgage default. This paper uses both machine learning and statistical classification models to inform an understanding of the variables most significant and impactful to the default outcome of mortgages. Consideration is given to both loan-level microeconomic variables …

Kennesaw State University Student Managed Investment Fund Sector Sensitivity Analysis, John Kiersznowski, Joe Johnson, Kyler Howell, Geranger Lewis

Senior Design Project For Engineers

The Kennesaw State University Student Managed Investment Fund (SMIF) Sector Sensitivity Analysis focuses on improving the fund’s decision-making and performance through data science. The SMIF is a diversified index fund designed to outperform indices like the S&P 500. This project investigates how macroeconomic variables—such as GDP growth, inflation, interest rates, and commodity prices—impact sector performance. By structuring data, developing a sustainable data pipeline, and leveraging advanced statistical techniques and predictive modeling, our team was able to provide the framework and proof of actionable insights that enhance the fund's ability to manage risks and optimize returns.

Market Timing And Managerial Talent, Keming Li

All Faculty Scholarship (Archived)

Market timing is a well-documented phenomenon in financial markets. This paper tests whether managers with heterogeneous talents and qualities affect capital issuance timing differently. I find that skilled managers raise more capital (especially equity) when the market is overpriced, compared to unskilled managers. However, capable managers are less willing to issue equity when firms have high growth potential and are reluctant to share their future success with newcomers. Additionally, I found no significant effect of managerial ability on the relationship between market misvaluation and subsequent corporate investment. Overall, consistent with the market timing hypothesis, the results suggest that talented managers …

Winner’S Curse On Malaysian Ipos: Does The Phenomenon Still Exist?, Norliza Che Yahya, Rasidah Mohd Rashida, An Le Thuy Ngoc, Ayesha Anwar

The Indonesian Capital Market Review

This study examines the winner’s curse phenomenon through Amihud and Yong’s winner’s curse measurements. Amihud’s allocation rate (ALLOCTJ) is the natural log of the reciprocal of investor demand or oversubscription ratio while Yong’s institutional investor participation is gauged based on a type of IPOs which is issued via private placement (DPRIVATE). Using data set from 560 initial public offerings (IPOs) issued from January 2000 until December 2022 for listing on Bursa Malaysia, the results of the cross-sectional multiple regression analyses show that ALLOCTJ and DPRIVATE are consistently significantly negative in influencing initial returns of the IPOs. The former relationship indicates …

House Divided: Executive Political Heterogeneity And Corporate Social Responsibility, Yongdong Wang, Ahmed M. Elnahas

Finance Faculty Publications

Empirical research in financial economics has been focused on studying the impact of CEO characteristics on corporate decision-making and performance. This practice overlooks the leadership and organizational research which postulates that for a senior leader to make a strategic change, managers at subordinate levels must support and reinforce such change. We investigate the effect of the top management team (TMT) political heterogeneity on the CEO’s ability to implant her/his ideology onto the firm’s CSR policies. We present evidence that a CEO’s ideology can shape CSR policies only in the existence of a politically homogeneous TMT. This result is robust to …

Socially Responsible Investing: The Role Of Investors' Demographics And Educational Background Towards Investments, Amy Maalouf

Honors Projects in Finance

Socially responsible investing is a crucial strategy to adopt as it fosters positive outcomes for the environment and society. Sustainability is gaining traction in society because investors are creating a beneficial impact in the community. They accomplish this by focusing on factors that involve environmental sustainability, diversity, and human rights. This study employs a survey approach to obtain both quantitative and qualitative data about the educational background and demographics of investors in the stock market. The empirical analysis will incorporate a multivariate regression that attempts to measure the impact of various demographics on one's "socially responsible investing score." A regression …

Agile Effects On Risk Management In The Financial Industry, Harasees Kaur

Harrisburg University Dissertations and Theses

The study investigates the ways in which agile practices are combined with traditional risk management frameworks within financial services institutions to achieve digital transformation, regulatory compliance, and stakeholder management. Three research questions drive the study: the ways in which financial institutions are adopting agile practices without undermining compliance, the challenges they face in adopting agile practices, and the mechanisms that enable alignment between agile values and risk governance. Grounded in stakeholder theory and agile transformation models, this study used open questionnaires to gather qualitative data from financial services professionals. Thematic analysis revealed a trend towards hybrid governance solutions that insource …

Agile And Lean Integration Effects In Financial Services Organizations, Ananya Sharma

Harrisburg University Dissertations and Theses

The financial services industry, predominantly in large investment banks, faces mounting pressure to improve operational efficiency, simplify communication channel, and meet rigorous regulatory requirements in a constantly changing market environment. This research assesses the incorporation of Agile and Lean practices within the financial services sector, particularly concentrating on their effect on front-office functions, such as sales and investment banking, and control operations like risk and compliance. The study investigates how Agile and Lean processes foster innovation, decrease inefficiencies, and promote partnership between front-office teams and control functions. By examining case studies from leading organizations such as Goldman Sachs, JP Morgan, …

The Use Of Stress Testing In Evaluating Systemic Risk: Lessons From The Global Financial Crisis, Katherine Laws

Honors Theses

This paper examines the role of stress testing as a crucial tool for assessing systemic risk in the financial system, particularly in the aftermath of the global financial crisis. The global financial crisis, which unfolded between 2007 and 2009, exposed significant vulnerabilities within financial institutions and highlighted the inadequacies of existing risk management frameworks. In response, regulators and financial institutions increasingly turned to stress testing to evaluate the resilience of financial systems against economic shocks.

The paper will begin by defining systemic risk and the importance of effective risk assessment strategies. The paper will outline how stress testing can simulate …

The Financial Implications Of Medical Education: An Roi Analysis Of School Type, Specialty, And Training Location, Hunter Ryan Cohn, Chase Moscovic, Alexis Kralovich, Simran Qureshi, Manoj Kulchania

Medical Student Research Symposium

The Financial Implications of Medical Education: An ROI Analysis of School Type, Specialty, and Training Location

Introduction

The financial burden of medical education profoundly influences career trajectories and long-term financial outcomes for physicians. This study examined the impact of medical school costs (comparing an in-state public and private medical school), specialty selection (focusing on Pediatrics, OB/GYN, and Orthopedic Surgery), and geographic factors on physicians' financial returns. Further, this study considered loan repayment strategies and their effects on career return on investment (ROI), offering insights into financial decision-making for future medical graduates.

Methods

Data on medical school costs, including tuition and …

Data-Driven Default Prediction: Insights From Lending Club, Shumaila Gilani, Viktoria Kleer Kliimand

SPARK Symposium Presentations

Peer-to-peer (P2P) lending has transformed consumer credit markets by providing an alternative to traditional banking institutions. LendingClub, a pioneer in this space, facilitates lending between individual investors and borrowers through a data-driven risk assessment model. Our research aims to enhance loan default prediction by developing a more precise classification model based on LendingClub’s historical loan data, ultimately improving risk assessment for investors.

Utilizing a dataset of approximately 650,000 loans from 2007 to 2015, we construct a predictive model to classify loan default risk. Our approach focuses on key financial indicators, including interest rates, borrower grades, debt-to-income ratio, and delinquency history, …

Regression: Skill For Salary, Lani Berg

Undergraduate Research Conference

No abstract provided.

Debt Analysis And Evaluation, Anh Nguyen

Undergraduate Research Conference

Abstract: The household debt dynamics in the United States have been influenced by some socio-demographic factors. This study examines the socio-demographic factors by using a dataset of 15,000 households from the 2019 Survey of Consumer Finances. The research analyzes determinants including age, education, marital status, college level, race, kids, job, rent, knowledge, willingness to take financial risks, financial literacy, and the total value of a checking account.

The Ethics Of Ai In Wealth Management, Vivian Bivens, Kailey Fischer

Undergraduate Research Conference

This paper examines the ethical implications of AI in wealth management by analyzing regulations from international and national securities bodies and evaluating how firms implement AI responsibly. While current regulations are not perfect, they generally promote ethical AI use, and firms are actively working to reduce biases and enhance data security.

Lessons Learned: Fabrizio López-Gallo, Mercedes Cardona

Journal of Financial Crises

Fabrizio López-Gallo served as the Bank of Mexico’s director general of financial stability during the COVID-19 pandemic, having been financial sector specialist and risk analysis and special projects manager for the central bank during the 2007–09 Global Financial Crisis (GFC). The Mexican government declared a health emergency at the outbreak of the pandemic and implemented a general economic shutdown. The Bank of Mexico intervened by cutting rates and initiating extraordinary measures, such as adding bond swaps and loosening rules for minimum deposits at commercial banks to provide liquidity. It gave flexibility to commercial banks to grant forbearance on mortgage payments …

Lessons Learned: Cecilia Skingsley, Maryann Haggerty

Journal of Financial Crises

During the Swedish banking crisis of the early 1990s, Cecilia Skingsley was the press secretary for the Ministry of Finance. She held various roles, including chief economist, at Swedbank, one of Sweden’s largest banks, from 2007 to 2013, a period that included the Global Financial Crisis (GFC) and European Sovereign Debt Crisis. Swedbank suffered heavy losses amid the GFC and relied on a government guarantee program for support. In 2013, she became a deputy governor of Sveriges Riksbank, Sweden’s central bank; in 2019, she became first deputy governor. Skingsley left the Riksbank in September 2022 to become head of the …

Lessons Learned: Philip Lane, Mary Anne Chute Lynch, Rosalind Z. Wiggins

Journal of Financial Crises

Philip Lane served as governor of the Central Bank of Ireland from 2015 to 2019. He introduced countercyclical capital and systemic buffer tools and initiated research into the role and risks of cross-border inflows across Ireland. As a member of the Governing Council of the European Central Bank (ECB) since 2015, Lane has advocated for the European Union to adopt macroprudential policies and tools. He hailed the work of the European Systemic Risk Board and similar institutions established after the Global Financial Crisis (GFC) and the European Sovereign Debt Crisis to share data, information concerning risks, and concerns over financial …

Lessons Learned: J. Christopher Flowers, Mary Anne Chute Lynch

Journal of Financial Crises

J. Christopher Flowers has been managing director, CEO, and chairman of the private investment firm J.C. Flowers & Co. LLC for many years. During the Global Financial Crisis (GFC) of 2007–2009, Flowers was involved with investing in some of the largest banks and financial institutions in the world and advising and consulting with them on possible acquisitions, mergers, and sales as several of these firms began to collapse. In the fall of 2008, Flowers worked closely with the Bank of America (BofA) on proposals to acquire Lehman Brothers and Merrill Lynch, and he developed a plan for private investors to …