Finance and Financial Management Commons^™

Notes With Interest: Department Of Finance Newsletter, N04, Fall 2015, University Of Northern Iowa. Department Of Finance.

Department of Finance Newsletter

News about the activities of the Department of Finance

Nevada Continues To Lead Delaware And All Other States And Jurisdictions In 2014 Securities And Exchange Commission Trading Suspensions, Anthony J. Cataldo Ii, Xi (Cici) Cheng, Paul Christ, Thomas Miller

Accounting Faculty Publications

No abstract provided.

Essays On International Risk-Return Trade-Off Relations, Liang Meng

Finance Theses & Dissertations

This dissertation consists of two essays on the international risk-return trade-off relations. The first essay is titled “The Role of the US Market on International Risk-Return Trade-Off Relations” and the second essay is titled “The Role of Investor Sentiment on International Risk-Return Trade-Off Relations”.

In our first essay, we study the intertemporal risk-return trade-off relations based on returns from 18 international markets. Our main contribution is that we find the US market plays an important role affecting the international risk-return trade-off. We present striking new empirical evidence that the inclusion of US market variables significantly changes the estimated risk-return trade-off …

Innovations In Financial Is And Technology Ecosystems: High-Frequency Trading Systems In The Equity Market, Robert J. Kauffman, Jun Liu, Dan Ma

Research Collection School Of Computing and Information Systems

Technology-based financial innovations over the past four decades have led to transformations in the financial markets. Understanding technological innovations in financial information systems (IS) and technologies has been challenging for technology consultants and financial industry practitioners due to the underlying complexities though. In this article, we propose an ecosystem analysis approach by extending the technology ecosystem paths of influence model (Adomavicius et al., 2008a) to incorporate stakeholder actions, considering both supply-side and demand-side forces for technological change. Our ecosystem model brings together three original core elements: technology components, technology-based services, and technology-supported business infrastructures. We also contribute a fourth new …

Faculty Focus: Finance Professor Brings Real-World Lessons To Class

Business Exchange

Profile of Finance Professor Rebel Cole showcases his preference for using real-world case studies of international finance to challenge students to take on the role of decision-maker and learn from real-life examples.

Local Business Cycles And Local Liquidity, Gennaro Bernile, George Korniotis, Alok Kumar, Qin Wang

Research Collection Lee Kong Chian School Of Business

This study examines whether state-level economic conditions affect the liquidity of local firms. We find that liquidity levels of local stocks are higher (lower) when the local economy has performed well (poorly). This relation is stronger when local financing constraints are more binding, the local information environment is more opaque, and local institutional ownership levels and trading intensity are higher. Overall the evidence supports the notion that the geographical segmentation of U.S. capital markets generates predictable patterns in local liquidity.

Trading Costs On The Stock Exchange Of Thailand, Nattawut Jenwittayaroje, Charlie Charoenwong, David K. Ding, Yung Chiang Yang

Research Collection Lee Kong Chian School Of Business

This study examines the components of trading costs incurred in trading large and liquid stocks listed on the Stock Exchange of Thailand. We find that aggressive orders pay an immediacy price measured by price impact, whereas executed passive orders gain the immediacy price. We also find a sizable opportunity cost from the unexecuted portion of a limit order that more than offsets the benefit obtained from the partial fulfillment of the order. The total trading cost, which includes price impact and opportunity cost, is positively related to order size and stock price volatility, but negatively associated with firm size, stock …

Consumer Confidence Keeps Rising, Steven D. Dolvin

All Chapters

According to a recent article from US News, consumer confidence is at an 8-year high. It will be interesting to see how this impacts the economy and markets in light of the negative impacts of international problems, particularly in China.

Business Framing For Analytics, Beverly Wright

Atlantic Marketing Association Proceedings

Both the academic and business practitioner communities are faced with the challenges of discovery, innovation, and constant learning of their field, particularly within the marketing discipline, where content, processes, and even structure are dynamic in nature, with constantly evolving interests and focus. A solid research agenda with excellent analytics to address pertinent business questions is crucial for successfully expanding our understanding of the marketing function.

A Research Note On Street Pricing Requirements In Major U.S. Airport Retail Concessions Requests For Proposals, Blaise Waguespack

Atlantic Marketing Association Proceedings

When reviewing the subject of airport marketing, much of the literature is broken down into issues external or internal to the airport. The external literature tends to divide and differentiate airports on the issues of size (passenger counts) and who is the target of the marketing campaign. Those articles and books that tend to focus on the larger commercial airports (Jarach, 2005; Halpern and Graham, 2013) note the role the airport can play in economic development. Much of the external marketing tasks for the larger commercial airports are aimed at either attracting more airline service to the community or working …

Rembrandt Versus Van Gogh: A Qualitative Contrast Study Applying A Visual Arts Valutation Model, Rene Desborde, Kimball P. Marshall

Atlantic Marketing Association Proceedings

Few marketing scholars have explored the field of fine arts marketing despite its significance as an area of economic activity and human creativity. Billions of dollars change hands annually in the worldwide visual fine arts industry (Velthuis, 2007; Clark and Flaherty, 2002), defined here to include various paintings, sculptures, and ceramics. This lack of academic attention might be because marketing scholars perceive that issues related to fine arts have little to do with marketing. It could also be that the unique characteristics of fine arts marketing are thought not to lend themselves to a traditional analytical approach to explain a …

Perceived Risk Reduction In E-Commerce Environments, C. Michael Powell, Chris Conca

Atlantic Marketing Association Proceedings

During the past three decades, the growth of e-commerce has presented marketers with many new arenas for research and application. Certainly e-commerce has become a significant portion of the world economy and in particular the consumer sector. As previous literature has consistently considered perceived risk as a major factor consumer purchase decisions, this research identifies several major components of consumer perceived risk (PR) and their normative implications in the e-commerce environment

National Culture Dimensions And Consumer Digital Piracy: A European Perspective, Irena Vida, Monika Kukar-Kinney, Mateja Kos Kokli, James Reardon

Atlantic Marketing Association Proceedings

Digital piracy as a ubiquitous phenomenon affects a number of stakeholders, such as consumers, enterprises, and governments. Considering its global nature, it has been of particular interest to consumer researchers. Hence, a large body of digital piracy literature sheds light on the demand side and illuminates various predictors of digital piracy behavior (Harris & Daunt, 2011). Despite these efforts, very little attention has been devoted to applying international perspective in investigating digital piracy across different countries (Ki, Chang, & Khang, 2006). This study aims to fill this void by examining the digital piracy behavior in three EU countries. In addition, …

Do You Feel Financially Secured? The Investigation Of Economic Indicators Of Financial Well-Being, Tommy Hsu, Leona Tam, Ryan T. Howell

Atlantic Marketing Association Proceedings

The economy has been in downward movement in the past few years in the United States as well as different parts of the world. Consumers’ financial situations have been found to influence their purchase behaviors. While some personal finance experts blame consumers’ (lack of) spending plans for their financial situations, others suggest that consumers’ perception of their financial standing influences their purchase plans. Using a nationwide large scale survey study, we examined the value of applying economic indicators as proxy measure of financial well-being. Instead of income or debts, wealth was found to be the most important economic indicator of …

Modification And Investment Intention In The Consumer-Possession Relationship, James D. Doyle

Atlantic Marketing Association Proceedings

The present-day automobile is at once a source of physical transportation, of course, but also an extension of self, a potential platform for self-expression and image enhancement, a source of social approval as well as psychological and physiological stimulation, and, perhaps, an object of beauty. This study examines motivations and antecedents of various vehicle-directed consumer behaviors, including modification and the intention of consumers to invest in their relationship with their vehicle. In this study, vehicle modification refers to the voluntary actions taken by a user or owner of a vehicle to differentiate the functional or aesthetic characteristics or performance of …

Examining Social Desirability Bias In Measures Of Financial Behavior, Nicole L. Kelly

Theses and Dissertations

Surveys that investigate the financial lives of consumers consist of direct questions about financial behavior, with college students being a heavily surveyed and convenient sample (Gutter 2013). However, the subjective nature of survey data is not bias-free, indicated by the presence of disparities between the respondents' reported and actual behavior. Due to the fact that many students begin to acquire loans, establish credit, and initiate saving behaviors in college, it is important that we have a complete understanding the financial behavior of college students.

The goal of this study was to investigate the role of socially desirable responding (SDR) in …

Essays On The Impact Of Ceo Gender On Corporate Policies And Outcomes, Nilesh Sah

USF Tampa Graduate Theses and Dissertations

In the first essay I examine the cash policies of female-led firms. Recent research finds that female CEOs eschew riskier corporate policies, but it makes contradicting claims whether this is due to risk aversion. Benchmarking risk aversion by the management of firms’ cash, I find that female CEOs are risk averse relative to male CEOs. Specifically, they hold significantly (18%) more cash, even for the same level of dividend payout as male CEOs. Further, they have significantly higher speed of adjustment for cash deficits, are more likely to use excess cash to increase dividends, but are equally likely to use …

Loss Aversion, Adaptive Beliefs, And Asset Pricing Dynamics, Kamal Samy Selim Prof, Ahmed Eltabee Okasha Dr., Heba M. Ezzat Dr.

Business Administration

We study asset pricing dynamics in artificial financial markets model. The financial market is populated with agents following two heterogeneous trading beliefs, the technical and the fundamental prediction rules. Agents switch between trading rules with respect to their past performance. The agents are loss averse over asset price fluctuations. Loss aversion behaviour depends on the past performance of the trading strategies in terms of an evolutionary fitness measure. We propose a novel application of the prospect theory to agent-based modelling, and by simulation, the effect of evolutionary fitness measure on adaptive belief system is investigated. For comparison, we study pricing …

Circuit Breakers, Steven D. Dolvin

All Chapters

The U.S. has had market-wide circuit breakers in place since the late 1980s, and individual stock circuit breakers were put in place more recently. Given the increasing volatility in Chinese markets, they are now following suit. See article here, Reuters.

The Impact Of Credit Default Swaps On Corporate Investment Policy, Xinshu Xue

Lingnan Theses

Credit Default Swaps (CDSs) play an important role in the financial markets. The introduction of CDSs has impacts on the bond market, and the financial characteristics and creditworthiness of the underlying reference entities. When financing is not frictionless, the investment policies of firms are related to their financial conditions. However, whether or how the introduction of CDS will directly affect the investment policy of the firm has not been examined empirically in the literature. To shed light on this issue, my study investigates the relation between credit default swaps trading and corporate investment policy for the listed firms in the …