Two Essays On Analyst Bias And Management Entrenchment,
2010
Louisiana State University and Agricultural and Mechanical College
Two Essays On Analyst Bias And Management Entrenchment, Bahar Ulupinar
LSU Doctoral Dissertations
This dissertation examines the interactions of corporate governance on analyst behavior. Analyst bias is well documented in the previous literature. However, the relationship between managerial entrenchment and analyst bias has not been explored. In my first essay, I hypothesize that while analysts strike a balance between personal reputation and revenue generation for their employers, entrenched managers of covered firms are more likely to induce analysts’ collaboration using management access and underwriting businesses. My hypothesis suggests that managerial entrenchment is a potential source of analyst bias. Consistent with my hypothesis, using the G-Index as a proxy for managerial entrenchment, I show …
Did We Tame The Beast: Views On The Us Financial Reform Bill,
2010
Duke Law School
Did We Tame The Beast: Views On The Us Financial Reform Bill, Lawrence G. Baxter
Faculty Scholarship
Prof. Lawrence Baxter takes a microscope to the ‘Dodd-Frank’ Bill (Dodd-Frank Wall Street Reform and Consumer Protection Act, H.R. 4173) finding a veritable ’Micrographia’ of doubt. The Bill was devised to address problems associated with the global financial crisis of 2007-2009. This paper was written in anticipation of the US Financial Reform Bill’s passage through Congress. The legislation has since been enacted as Public Law No. 111-203, signed by President Obama on July 21, 2010.
Moving Towards A Culturally Diverse Accounting Profession,
2010
San Jose State University
Moving Towards A Culturally Diverse Accounting Profession, Elizabeth K. Jenkins, M. Calegari
Elizabeth K. Jenkins
This paper discusses the increasing diversity in the accounting profession. Evidence is presented substantiating that over one third of recent accounting graduates are from ethnic minority backgrounds, the majority of whom are Asian/Pacific Islanders. In our university specific data, we find an even higher percentage (71%) of ethnic minorities receiving accounting degrees, with Asian/Pacific Islanders as the majority group. We also show that over one fourth of new accounting graduates hired by accounting firms are ethnic minorities of which fifty percent are Asian/Pacific Islanders.
Esops And Corporate Officers' Compensation.,
2010
San Jose State University
Esops And Corporate Officers' Compensation., Stoyu Ivanov
Faculty Publications
In the literature two major hypotheses have been developed for Employee Stock Ownership Plans used as a takeover defense, the management entrenchment and shareholder interest hypotheses, with the existing research not finding conclusive evidence for either one. In this paper we provide evidence that the entrenchmenthypothesis is not supported by finding that Employee Stock Ownership Plan firms pay less to their managers than non-Employee Stock Ownership Plan firms. If managers were truly entrenched they would have been able to expropriate wealth from the existing shareholders, which appears not to be the case for Employee Stock Ownership Plan firms.
Moving Towards A Culturally Diverse Accounting Profession,
2010
San Jose State University
Moving Towards A Culturally Diverse Accounting Profession, Mary F. Calegari, E. Jenkins
Mary F. Calegari
This paper discusses the increasing diversity in the accounting profession. Evidence is presented substantiating that over one third of recent accounting graduates are from ethnic minority backgrounds, the majority of whom are Asian/Pacific Islanders. In our university specific data, we find an even higher percentage (71%) of ethnic minorities receiving accounting degrees, with Asian/Pacific Islanders as the majority group. We also show that over one fourth of new accounting graduates hired by accounting firms are ethnic minorities of which fifty percent are Asian/Pacific Islanders. However, a recent survey by the AICPA indicates that only 4% of partners in accounting firms …
Corporate Social Responsibility And Earnings Reporting,
2010
San Jose State University
Corporate Social Responsibility And Earnings Reporting, Mary F. Calegari, T. Chotigeat, M. A. Harjoto
Mary F. Calegari
Despite increasing interests on corporate social responsibility (CSR) activities among managers, the relationship between CSR and firm value through earnings reporting quality is still unclear. Absence of a strong positive effect of CSR on firm value has led researchers to believe that CSR is a res ult of a principal-agent issue between shareholders and managers. This study argues CSR represents a corporate culture that influences how a corporation reports its earnings. CSR influ ences earnings reporting ·instead ofearnings reporting drives CSR to delude shareholders. CSR induces better earnings reporting quality, therefore, CSR has an indirect but positive effect on firm …
Changing Careers -- Six Options For Becoming A Cpa,
2010
San Jose State University
Changing Careers -- Six Options For Becoming A Cpa, Elizabeth V. Grace, T. G. Black
Elizabeth V. Grace
No abstract available.
Strategic Financial Management: Evidence From Seasoned Equity Offerings,
2010
University of Rochester
Strategic Financial Management: Evidence From Seasoned Equity Offerings, Michael Barclay, Fangjian Fu, Clifford Smith
Research Collection Lee Kong Chian School Of Business
Extant theories of capital structure assume myopic financial managers. So they have hard time to explain the financing behavior of seasoned equity offering (SEO) firms. In contrast with the pecking order theory, SEO firms typically are financially healthy companies with significant cash balances, low leverage, and unused debt capacity. At odds with the tradeoff theory, SEOs often move firms away from, rather than closer to, their target leverage ratios. SEOs appear to be driven by capital needs associated with large investment projects rather than by market timing considerations. Firms issue debt following the SEO to finance investment further and to …
Tunneling As An Incentive For Earnings Management During The Ipo Process In China,
2010
Singapore Management University
Tunneling As An Incentive For Earnings Management During The Ipo Process In China, Jiwei Wang, Joseph Aharony, Hongqi Yuan
Research Collection School Of Accountancy
Using a sample of 185 Chinese IPO firms listed on the Shanghai Stock Exchange during the period 1999-2001, we show that related-party (RP) sales of goods and services could be used opportunistically to manage earnings upwards in the pre-IPO period. We also provide evidence that such behavior may be motivated by the prospect of tunneling opportunities in the post-IPO period, i.e., exploiting economic resources from minority shareholders for the benefit of the parent company. We provide evidence of one such opportunistic tunneling tool: non-repayment by Chinese parent companies of net outstanding corporate loans made to them by their newly listed …
Financial Liberalization And Banking Crises: A Cross-Country Analysis,
2010
Milken Institute
Financial Liberalization And Banking Crises: A Cross-Country Analysis, Apanard P. Angkinand, Wanvimol Sawangngoenyuang, Clas Wihlborg
Business Faculty Articles and Research
Several studies indicate that financial liberalization contributes to the likelihood of a financial crisis. We focus on banking crises and argue that they are most likely to occur after an intermediate degree of liberalization. Using a recently updated dataset for financial reforms in 48 countries between 1973 and 2005, we find an inverted U-shaped relationship between liberalization and the likelihood of crisis. We ask whether the relationship remains when institutional characteristics of countries and dynamic effects of liberalization are considered. The empirical results indicate that the relationship between liberalization and banking crises depends strongly on the strength of capital regulation …
Discounts And Termination Of Close-End Funds,
2010
Singapore Management University
Discounts And Termination Of Close-End Funds, Chen Chen
Dissertations and Theses Collection (Open Access)
Based on an extensive sample of U.S. closed end funds undergoing termination, this study offers a comprehensive analysis of closed end fund exiting behaviors. There are four ways for a fund to exit: merger into other closed-end fund, liquidation, conversion to open-end mutual fund and merger into open-end mutual fund. Closed-end funds that exit must choose the most efficient and optimal mechanisms corresponding to funds‟ characteristics and organizational forms. In this study, I find that closed-end funds exit optimally. First, funds with persistently larger discount and smaller size are more likely to exit and consistent with rational expectation, market incorporates …
Is Regime Switching In Stock Returns Important In Asset Allocations?,
2010
Singapore Management University
Is Regime Switching In Stock Returns Important In Asset Allocations?, Jun Tu
Research Collection Lee Kong Chian School Of Business
The stock market displays regime switching between upturns and downturns. This paper provides a Bayesian framework for making portfolio decisions that takes this regime switching into account, together with asset pricing model uncertainty and parameter uncertainty. The findings reveal that the economic value of accounting for regimes is substantially independent of whether or not model and parameter uncertainties are incorporated: the certainty-equivalent losses associated with ignoring regime switching are generally above 2% per year, and can be as high as 10%. These results suggest that the more realistic regime switching model is fundamentally different from the commonly used single-state model, …
An Experimental Analysis Of The Demand For Payday Loans,
2010
Chapman University
An Experimental Analysis Of The Demand For Payday Loans, Bart J. Wilson, David W. Findlay, James W. Meehan Jr., Charissa P. Wellford, Karl Schurter
Economics Faculty Articles and Research
The payday loan industry is one of the fastest growing segments of the consumer financial services market in the United States. We design an environment similar to the one that payday loan customers face and then conduct a laboratory experiment to examine what effect, if any, the existence of payday loans has on individuals' abilities to manage and to survive financial setbacks. Our primary objective is to examine whether access to payday loans improves or worsens the likelihood of financial survival in our experiment. We also test the degree to which people's use of payday loans affects their ability to …
Airline Bankruptcy: The Determining Factors Leading To An Airline's Decline,
2010
Claremont McKenna College
Airline Bankruptcy: The Determining Factors Leading To An Airline's Decline, Jason Tolkin
CMC Senior Theses
The purpose of this study was to determine what the critical factors are to an airline’s financial turmoil, leading ultimately to a bankruptcy filing. Over the past decade, the airline industries’ performance has been dismal, leading to 20 bankruptcy filings. As competition increases, it is crucial for airlines to know which core business areas are essential to success. This paper identifies 8 specific industry metrics that are used to compare airlines, revealing where certain airlines falter and others shine. Some of these metrics are later applied to a case study examining Trans World Airlines (TWA) and American Airlines (AA), highlighting …
The Effect Of Age Upon Ceo Compensation: A Cross-Industry Study,
2010
Claremont McKenna College
The Effect Of Age Upon Ceo Compensation: A Cross-Industry Study, Anthony Bouvier
CMC Senior Theses
The compensation of CEO’s has been at the forefront of the public’s mind for the past few years. During the recession, one could not go a day without hearing about the atrocious salaries and bonuses that executives were being paid. Although it only recently became an explosive topic, academics have been researching all aspects of compensation for many years. One of the earliest looked at the idea of pay for performance (Jensen and Murphy 1990), and the field has taken off from there. Many studies have been done on the determinants of compensation, and I was interested in how age …
Do Investors View Excess Capacity As A Determinant Of Mergers And Acquisitions In The Pharmaceutical And Biotechnology Industry?,
2010
Claremont McKenna College
Do Investors View Excess Capacity As A Determinant Of Mergers And Acquisitions In The Pharmaceutical And Biotechnology Industry?, Jennifer M. Volk
CMC Senior Theses
I examine investors’ reaction to the announcement of mergers and acquisitions in the pharmaceutical and biotechnology industry from 2002 to 2008. Over this period, investors anticipate the announcements, as demonstrated by the fact that the cumulative abnormal returns are not statistically significant. In addition, I test to determine the effect of excess capacity on investors’ reactions. From 2002 to 2004, investors do not recognize acquisitions as a response to excess capacity, as the excess capacity measures utilized have no effect on the size of the cumulative abnormal return. From 2005 to 2008, however, excess capacity measures have a positive effect …
The Impact Of Ceo Compensation On Firm Performance In The Oil Industry,
2010
Claremont McKenna College
The Impact Of Ceo Compensation On Firm Performance In The Oil Industry, Christophe M. Bindert
CMC Senior Theses
Critics often cite poor executive compensation schemes as one of the leading causes of the recent credit crisis. This paper investigates whether compensation structures at the end of the 2006 fiscal year created incentives for Chief Executive Officers (CEOs) in the oil industry to take on excessive risk, which subsequently may have lead to weaker firm performance during the crisis. I find no evidence to support the argument that higher pay sensitivity through option and other incentive awards lead to worse firm performance. In fact, results do not provide any evidence that company performance during the crisis was related to …
Deposit Insurance Coverage, Ownership, And Banks' Risk-Taking In Emerging Markets,
2010
Milken Institute
Deposit Insurance Coverage, Ownership, And Banks' Risk-Taking In Emerging Markets, Apanard P. Angkinand, Clas Wihlborg
Business Faculty Articles and Research
We ask how deposit insurance systems and ownership of banks affect the degree of market discipline on banks' risk-taking. Market discipline is determined by the extent of explicit deposit insurance, as well as by the credibility of non-insurance of groups of depositors and other creditors. Furthermore, market discipline depends on the ownership structure of banks and the responsiveness of bank managers to market incentives. An expected U-shaped relationship between explicit deposit insurance coverage and banks' risk-taking is influenced by country specific institutional factors, including bank ownership. We analyze specifically how government ownership, foreign ownership and shareholder rights affect the disciplinary …
Operational Risk In Trading Platforms,
2010
Singapore Management University
Operational Risk In Trading Platforms, M. Thulasidas
Research Collection School Of Computing and Information Systems
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. A trading platform is a system, and therefore comes under the umbrella definition of operational risk.
Long-Term Earnings Growth Forecasts, Limited Attention, And Return Predictability,
2010
University of Notre Dame
Long-Term Earnings Growth Forecasts, Limited Attention, And Return Predictability, Zhi Da, Mitchell Craig Warachka
Research Collection Lee Kong Chian School Of Business
Long-term earnings expectations are critically important to stock price valuations. We identify relative optimism and relative pessimism in long-term analyst forecasts by comparing these forecasts with implied short-term earnings growth forecasts across rms within the same industry. Stocks with relatively optimistic and relatively pessimistic long-term analyst forecasts have negative and positive risk-adjusted returns, respectively. This return predictability depends critically on short-term forecasts since relative optimism and relative pessimism originate from the slow diffusion of information from short-term to long-term analyst forecasts. Our results indicate that market participants have limited attention regarding the long-term earnings implications of information.
