Media = Contrarian Indicator,
2012
Butler University
Media = Contrarian Indicator, Steven D. Dolvin
All Chapters
The media often focuses on financial stories; however, they tend to be late to the game. Meaning, once they report on an event, the market has likely already digested it. Recently, Bespoke Investment Group found that the number of financial stories posted on the Drudge Report was negatively correlated to the subsequent market performance. See the article here, Yahoo.
Weather Derivatives,
2012
Butler University
Weather Derivatives, Steven D. Dolvin
All Chapters
Most people are aware of stock options or futures contracts on commodities such as gold and oil. However, the derivatives market is very diverse, including such things as weather derivatives. With hurricane season upon us, you may want to do some research on hurricane futures and options (http://www.cmegroup.com/trading/weather/hurricanes/hurricane.html). Essentially, these contracts allow insurers to transfer risk to other parties, such as hedge funds. See the article here, CME Group.
Investor's Pain = Government's Gain,
2012
Butler University
Investor's Pain = Government's Gain, Steven D. Dolvin
All Chapters
In the wake of the Crash of 2008, the government stepped in to bail out multiple institutions, including AIG. Following the economic recovery (albeit a moderate one), the government was able to exit its position, netting a $17.7 billion gain. So, while many people opposed the bailout, it actually served as a transfer from investors (generally considered the wealthy) to the government. See article here, LA Times.
Short Sale Trading Glitch,
2012
Butler University
Short Sale Trading Glitch, Steven D. Dolvin
All Chapters
Following the Crash of 2008, the SEC reinstated the uptick rule, albeit a modified version. The uptick rule kicks in if a stock's price drops 10% in one day. This prevents short selling except on an uptick. However, a trading glitch (which are increasingly common) effectively overlooked the rule. .
Facebook Ipo Lockup Expiration,
2012
Butler University
Facebook Ipo Lockup Expiration, Steven D. Dolvin
All Chapters
When a firm undertakes an IPO, insiders (owners and venture capitalists, among others) agree to retain their shares (i.e., lockup) for a period of time, typically six months. When the lockup period expires, it is customary to see a large block of shares flood the market, having an adverse effect on the stock's price. Facebook just hit its lockup expiration. See article here, NY Times.
High Frequency Trading,
2012
Butler University
High Frequency Trading, Steven D. Dolvin
All Chapters
With recent events such as the Flash Crash and the trading glitch at Knight Capital, high frequency trading has come under increased scrutiny. So, what exactly is high frequency trading and flash orders? Essentially, these traders attempt to exploit differences in bid/ask prices and capture any spread that exists. Check out this video for an illustrated discussion.
Will Lightning Strike Twice?,
2012
Butler University
Will Lightning Strike Twice?, Steven D. Dolvin
All Chapters
Just before the real estate crisis really hit, the Fed said that the issue was "contained." As we know, this was not correct. Recently, Bernanke said that the $1 Trillion in asset backed student loans won't cause a crisis. Hopefully he is right this time. See article here, Kansas City Star.
Two Essays In Financial Economics,
2012
LSU New Orleans
Two Essays In Financial Economics, Jatin Ravikant Malhotra
LSU New Orleans Theses and Dissertations
In the first chapter of this dissertation, I examine the relationship between hedging and diversification effects on CEO compensation in the Real Estate Investment Trust (REIT) industry. The REIT industry is suitable for this investigation for various reasons; primarily being that the REIT sample represents a relatively clean sample to study the effects of diversification and hedging on compensations. I find a positive and significant relationship between the interaction variable which reflects the effects of both hedging and diversification and CEO pay-for-performance sensitivity. This is consistent with the notion that managers are in a better position to manage firm risk …
Target Date Funds,
2012
Butler University
Target Date Funds, Steven D. Dolvin
All Chapters
Target date funds (or lifecycle funds) have simplified the investment process for many people. However, they are not without their own potential problems and differences. This article (CNN Money) gives a good overview of the main issues.
Pricing Options On Foreign Currency With A Preset Exchange Rate,
2012
CUNY Bernard M Baruch College
Pricing Options On Foreign Currency With A Preset Exchange Rate, Avner Wolf, Christopher Heseel
Publications and Research
This paper presents a new option that can be used by agents for managing foreign exchange risk. Unlike the Garman Kolhagen model [1], (GK), this paper presents a new model with a preset exchange rate (PE), that allows the agent to take advantage of the his/her view on both the direction and magnitude of rate movement and as such provides this agent with more choices. The model has a provision for an automatic exchange of the payoff at a preset exchange rate, and upon expiration gives the agent the choice of keeping the payoff in the foreign currency or exchanging …
Quality Of Life For All Ages, By Design. A Conversation With Patricia Moore,
2012
MooreDesign, Associates, LLC
Quality Of Life For All Ages, By Design. A Conversation With Patricia Moore, Patricia Moore
Center for Policy Research
On November 3, 2011, Patricia Moore presented the Syracuse Seminar on Aging to a packed audience of over 250 faculty, students, and community members. She delivered an engaging lecture on “Quality of life for all ages, by design”. Afterwards Janet Wilmoth, Director of the Syracuse University Aging Studies Institute, and Patricia Moore had a chance to sit down and talk about her path-breaking career, ability-based design, and aging in America.
Sovereign Default Risk In The Euro-Periphery And The Euro-Candidate Countries,
2012
Halle Institute for Economic Research
Sovereign Default Risk In The Euro-Periphery And The Euro-Candidate Countries, Hubert Gabrisch, Lucjan T. Orlowski, Toralf Pusch
WCBT Working Papers
This study examines the key drivers of sovereign default risk in five euro area periphery countries and three euro-candidates that are currently pursuing independent monetary policies. We argue that the recent proliferation of sovereign risk premiums stems from both domestic and international sources. We focus on contagion effects of external financial crisis on sovereign risk premiums in these countries, arguing that the countries with weak fundamentals and fragile financial institutions are particularly vulnerable to such effects. The domestic fiscal vulnerabilities include: economic recession, less efficient government spending and a rising public debt. External ‘push’ factors entail increasing liquidity- and counter-party …
Integrating Care: Improving Overall Health By Integrating Behavioral/Mental Health Care Into Primary Care,
2012
University of Minnesota
Integrating Care: Improving Overall Health By Integrating Behavioral/Mental Health Care Into Primary Care, Macaran A. Baird
Center for Policy Research
Hippocrates noted that the patient must be attended in light of “his” diet, work, home, and community setting. Since that time, we have struggled with the dilemma of how to put the patient’s presenting problems in the context of the patient’s life circumstances. That goal has proven elusive. So how do we sort out where to put the emphasis with our healing arts?
Executive Compensation And Horizon Incentives: An Empirical Investigation Of Corporate Cash Payout,
2012
Singapore Management University
Executive Compensation And Horizon Incentives: An Empirical Investigation Of Corporate Cash Payout, Sheng Huang
Research Collection Lee Kong Chian School Of Business
The recent financial crisis has renewed the interest in executives’ compensation-related horizon incentives. This paper examines how the short-termism in CEO compensation affects corporate cash payout through share repurchases using a new measure of compensation horizon incentive. In contrast to the conventional wisdom that firms buy back shares after poor stock performance, we find that CEOs with short compensation horizons are more likely to buy back shares after good performance. To bolster already high stock price, they have incentives to repurchase to boost up reported EPS towards analysts’ expectations, and to cater to investors with short investment horizons. This short-termism …
Aiming For Average: The Effect Of Peer Standing On The Dynamic Process Of Corporate Social Responsibility,
2012
Singapore Management University
Aiming For Average: The Effect Of Peer Standing On The Dynamic Process Of Corporate Social Responsibility, Kuan Yong David Ding, Christo Ferreira, Wongchoti Udomsak
Research Collection Lee Kong Chian School Of Business
We evidence a non-linear relationship between firm value and corporate social responsibility, adding to the mixed evidence on this relationship. We show that corporate social responsibility exhibits a dynamic process, which is largely dependent on a firm’s industry, relative standing amongst peers and the distinction between responsible and irresponsible behavior. Surprisingly, we find that responsible behavior could sometimes destroy firm value, while irresponsible behavior could sometimes increase firm value. Endogeneity is mitigated through a novel process that allows us to keep constant the endogeneity inherent in this field, examining corporate social responsibility’s effect on firm value separately.
Determinants And Consequences Of Risk Management Committee Formation,
2012
University of Arkansas, Fayetteville
Determinants And Consequences Of Risk Management Committee Formation, Chris Hines
Graduate Theses and Dissertations
This paper examines the determinants and consequences of financial institutions voluntarily forming risk management committees (RMCs). Specifically, I determine whether RMCs are related to a change in risk outcomes, an increase in profitability, a change in hedging and trading derivative structures, and greater financial reporting quality during the post-committee formation period compared to a control group. I use a sample of financial institutions that form a RMC in any year from 1994 through 2008 and a control sample of financial institutions that do not form a RMC during the sample period. The results provide evidence to suggest that financial institutions …
The Impact Of Financial And Trade Openness On Economic Growth And Stock Returns: The Case Of Africa,
2012
University of Texas-Pan American
The Impact Of Financial And Trade Openness On Economic Growth And Stock Returns: The Case Of Africa, Tibebe Abebe Assefa
Theses and Dissertations - UTB/UTPA
The debate on whether financial development and stock market help growth is ongoing. In the context of Africa where there exists a strong need and potential for growth, it is important to revisit the topic in order to address the problem of economic underdevelopment. In this dissertation, we focus on seventeen African countries with two main objectives: First, to investigate the relationship between financial and trade openness, and economic growth. Second, we investigate the association of African real stock index returns with financial and trade openness. For all analysis, we use Fixed Effect Models (FEM) and System Generalized Method of …
Executive Compensation, Firm Performance And Liquidity Under Imperfect Corporate Governance,
2012
University of Texas-Pan American
Executive Compensation, Firm Performance And Liquidity Under Imperfect Corporate Governance, Yongli Luo
Theses and Dissertations - UTB/UTPA
This dissertation examines the relationship between executive compensation, firm performance and liquidity under imperfect corporate governance institution by using a novel Chinese dataset over 2001-2010. The first essay examines the determinants of Chinese executive compensation from the agency-based theoretical framework. I find that there is a positive relationship between Chinese executive compensation and firm performance. The weak corporate governance in China exhibits strong liquidity and control effects after the split-share structure reform. It seems that CEO duality, the establishment of compensation committee, and the involvement of state ownership in Chinese public firms may lead executive compensation to a relation-based rather …
Capm And Irrational Market: Theories And Empirical Studies,
2012
University of Texas-Pan American
Capm And Irrational Market: Theories And Empirical Studies, Jaehan Koh
Theses and Dissertations - UTB/UTPA
With a new interpretation of the Capital Asset Pricing Model (CAPM), this dissertation explains that the CAPM has an implied assumption of no mispricing. The CAPM should work if mispricing is removed from all assets in the market, leading to the Rational CAPM. The Rational CAPM measures value changes of the market, and then yields value changes of an asset/portfolio by employing value changes of the market in the model. For the Rational CAPM, this dissertation explains that risk, mispricing, irrationality and (investor) sentiment all indicate the same. Using the value changes from the Rational CAPM and historical dividend yields, …
Analysis Of Bank Failure And Size Of Assets,
2012
University of Nevada, Las Vegas
Analysis Of Bank Failure And Size Of Assets, Guancun Zhong
UNLV Theses, Dissertations, Professional Papers, and Capstones
The financial health of the banking industry is an important prerequisite for economic stability and growth. Bank failures in the United States have run in cycles largely associated with the collapse of economic bubbles. The number of bank failures has increased dramatically over the last thirty years (Halling and Hayden, 2007). In this thesis, we try to address the following two questions: 1) What is the relationship, if any, between a bank's asset size and its likelihood of failures? 2) How can we use statistical tools to predict the numbers of bank failures in the future? Various modeling techniques are …
