Finance and Financial Management Commons^™

Financial Development And Firms’ Growth In Textile Industry Of Pakistan: A Panel Data Analysis, Ijaz Hussain

Business Review

This discussion uses secondary data from “Balance Sheet Analysis (2000- 2009) of Joint Stock Companies Listed on the Karachi Stock Exchange published by Statistics Department of State Bank Of Pakistan” and covers a panel of 75 textile firms of textile industry in Pakistan . Findings of this study indicate that all explanatory variables included in our model have significant influence on firms’ growth. Lagged profitability and efficiency and financial development have statistically significant and positive impact on firms’ growth while financial leverage, size, risk, real cost of debt, energy crisis and abolishment of textile quota have negative impact. Acute energy …

Fruit Of The Loom (Sc 2457), Manuscripts & Folklife Archives

Manuscript Collection Finding Aids

Finding aid and scan (Click on "Additional Files" below) for Manuscripts Small Collection 2457. Stock certificate issued to Julius and Emilie Twesten on 7 June 1950 for eleven shares of preferred stock of Fruit of the Loom, Inc.

Ua3/9 Recommendation On 2011-2012 Budget, Wku President's Office, Gary Ransdell

WKU Administration Documents

Memo from President Gary Ransdell to the faculty and staff regarding the budget submitted to the WKU Board of Regents.

Listings From The Emerging Economies: An Opportunity For Reputable Stock Exchanges, Nicholas Tay, Reza Olati

Finance

We provide current evidence to show that the numbers of sponsored depositary receipts created and cross‐listed have increased by more than two‐fold over the last decade and a substantial proportion of this growth came from the emerging and developing economies. We argue that the needs of this clientele and the inadequacies of existing legal and financial system create an opportunity for reputable stock exchanges to play the role of an information and reputation intermediary and in so doing allow exchanges to leverage on their reputation capital to compete more effectively for the growing business from the emerging and developing economies. …

Using Monte Carlo Simulations To Establish A New House Price Stress Test, James R. Follain, Seth H. Giertz

Department of Economics: Faculty Publications

The focus of this paper is on the house price stress test (termed ALMO) that was designed to assess the fiscal strength of Fannie Mae and Freddie Mac and, if necessary, to trigger remedial action in order to avert a crisis. We assess whether the ALMO stress test was an adequate representation of an extremely weak housing market, given the best available information leading up to the Great Recession. A Monte Carlo simulation model is developed to estimate the severity of low probability events (i.e., severe house price declines). We illustrate the complexity and subjective nature of the process used …

Feasibility Study For Building A Tasting Room In Napa Valley, Trevor Mitchell

Agribusiness

This study was undertaken to determine if it would be financially feasible for Altamura Winery to build and operate a wine tasting room in Napa Valley over the course of a 30 year period.

This report used a feasibility study to examine the investment of the tasting room.  The study used the cost approach of valuation to value the construction costs.  Then capital budgeting was used as a method to determine if the tasting room should be constructed.  The capital budgeting methods of this study include the use of a cash flow budget, break-even analysis, and a net present value …

Financial Hedging Decision On Procurement Risk For Newsvendor Model With Value-At-Risk Constraint, Yuan Wen, Qing Ding, Jian Chen

Research Collection Lee Kong Chian School Of Business

Manufacturers must now deal with increasingly fluctuating procurement prices for commodities and industrial component parts. However, it is hard for them to pass cost increases on to downstream markets efficiently. Therefore, manufacturers have sought to solve this problem with various supply management tactics. While vertical integration of key suppliers or signing long-term contracts is possible, financial hedging emerges as the most effective approach to counter commodities price risks. In situations where market demand uncertainty is still unresolved and often interplays with upstream price volatilities, Value-at-Risk (VaR) can help managers handle the multi-fold uncertainties and their potential interactions, by effectively measuring …

Earnings Management Surrounding Seasoned Bond Offerings: Do Managers Mislead Ratings Agencies And The Bond Market, Gary L. Gaton, Chiraphol New Chiyachantana, Choong Tze Chua, Jeremy Goh

Research Collection Lee Kong Chian School Of Business

We study earnings management (EM) efforts surrounding seasoned bond offerings using discretionary current accruals. We find that issuers tend to inflate earnings performance prior to an offering. In order for EM efforts to effectively mislead ratings agencies and the bond market, they must lead to inflated bond ratings and decreased offering yields. Regression results indicate the opposite; aggressive EM efforts are associated with lower initial ratings and higher offering yields. We also find a statistically lower proportion of subsequent downgrades for firms with the most aggressive EM efforts, which is inconsistent with these firms’ inflated initial ratings. While some firms …

Adverse Selection And Corporate Governance, Charlie Charoenwong, David K. Ding, Vasan Siraprapasiri

Research Collection Lee Kong Chian School Of Business

This paper examines the impact of corporate governance on the adverse selection component of the bid-ask spread of stocks listed on the Singapore Exchange. These companies have been identified by Credit Lyonnais Securities Asia (CSLA) with the highest level of corporate governance among 25 emerging markets. We measure corporate governance by several criteria: discipline, transparency, independence, accountability, responsibilities, fairness, and social awareness. The results show that corporate governance has an inverse relationship with adverse selection. However, only the transparency dimension exhibits a significant inverse relationship with adverse selection. In addition, Government-Linked Companies (GLCs) are shown to have a smaller adverse …

A Martingale Approach For Testing Diffusion Models Based On Infinitesimal Operator, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

I develop an omnibus specification test for diffusion models based on the infinitesimal operator. The infinitesimal operator based identification of the diffusion process is equivalent to a “martingale hypothesis” for the processes obtained by a transformation of the original diffusion model. My test procedure is then constructed by checking the “martingale hypothesis” via a multivariate generalized spectral derivative based approach that delivers a  asymptotical null distribution for the test statistic. The infinitesimal operator of the diffusion process is a closed-form function of drift and diffusion terms. Consequently, my test procedure covers both univariate and multivariate diffusion models in a unified …

The Implications Of Sovereign Wealth Fund Investment On Capital Markets: A Bottom-Up View, David Fernandez

Research Collection Lee Kong Chian School Of Business

The buzz around sovereign wealth funds has been turned down a notch, but they remain a hot topic. The accusations of sovereign wealth funds having hidden agendas remain, but with the very public losses suffered by some during the recent financial turmoil, such talk has even less credibility. And given that most of those losses were from investments in US, UK, and European financial institutions, hope that sovereign wealth funds would be the saviors of Wall Street has also faded. At its base, four trends continue to keep sovereign wealth funds in focus. First, there is the phenomenal rise of …

Sec Rule 105 And Price Discovery In The Secondary Market, C. Charoenwong, David K. Ding, P. Wang

Research Collection Lee Kong Chian School Of Business

No abstract provided.

Investor Heterogeneity, Investor-Management Agreement And Open Market Share Repurchase, Sheng Huang, Anjan V. Thakor

Research Collection Lee Kong Chian School Of Business

This paper develops and tests a new theoretical explanation for why a firm conducts open-market stock repurchases. Investors may disagree with the manager about the firm’s investment projects. A repurchase causes a change in the investor base as investors who are more likely to disagree with the manager tender their shares. This model leads to the following predictions: first, a firm is more likely to buy back shares when the level of investor-management agreement is low, and second, the level of agreement improves following a repurchase. Our empirical tests provide strong support for these predictions. The results are robust to …

Key Findings Of 2011 Atrs Global Airport Performance Benchmarking Project, Tae Hoon Oum, Chunyan Yu, Yapyin Choo

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. This report includes 156 airports and 19 airport groups of various sizes and ownership forms in Asia Pacific, Europe and North America. This presentation highlights key findings on efficiency and cost.

Examining Capm In Today's Markets, David R. Knox

Honors Scholar Theses

The purpose of this work is to empirically assess the validity of the Capital Asset Pricing Model (CAPM) in terms of how can it model an equity’s return. The goal of this work is not to challenge the theory behind CAPM, nor compare it to alternatives, but simply to test whether or not it is applicable in the real world. This is an exploratory research study: rather than testing a specific hypothesis, my goal is to let the data speak for itself.

The main difficulty with assessing CAPM is that there is no consensus on how much data we ought …

The Greek Sovereign Debt Crisis And Potential Implications For Other Sovereign Nations, Gregory Gambill

Honors Scholar Theses

At least four countries in the Eurozone are in poor economic shape, and Greece has already defaulted on its loans, sending the country into a state of disarray while it works on implementing fiscal austerity measures. Meanwhile, Portugal, Ireland, and Spain are next in line for a possible default. Using Portugal, Ireland, Greece, and Spain as examples of countries that are on the verge of economic collapse, this paper contains an analysis of what other countries need to do in order to avoid this situation.

The Role Of Emerging Market In Investment Portfolios, Kelly Hallinan

Honors Scholar Theses

This thesis explores the role of emerging markets in investment portfolios. Could an investment portfolio consisting of emerging market securities have outperformed similar portfolios that did not contain emerging markets over recent years? Gathering data from January 1, 2009 to December 31, 2010, mean-variance efficiency and the efficient frontier were used to compare the risk-return tradeoff for six constructed portfolios comprised of emerging markets, developed markets, and the risk-free asset. Brazil, Russia, India, and China were chosen to represent the emerging market allocation of the portfolios, accomplished by working with a BRIC Exchange Traded Fund (ETF). The S&P 500 was …

Lesser Known Option Trading Strategies, Charles J. Higgins

Finance Faculty Works

Options are bought to hedge (insure) or to speculate on securities. This article examines instead the sale of options in a conservative approach (in lieu of limit orders) and in an aggressive approach (in lieu of margin interest expense). Many know that an investor can use options to increase or decrease risk. This article will explore aspects of options that are lesser known in terms of option level approvals, option use in lieu of limit orders, and no interest expense versions of speculative leverage

Achieving Service-Learning Goals In A Financial Accounting Class Project, Darwin D. Yu

Finance and Accounting Faculty Publications

Background: A financial accounting class in a Philippine university has a service-learning group project that involves setting up a simple accounting system for microenterprises. Aims: This paper examines the extent to which service-learning goals such as course learning, teamwork, civic responsibility, and impact on the client organization are achieved through this project, as well as how the level of student participation affects the achievement of these service-learning goals. It identifies measures to improve the quality of the service-learning experience for future implementation. Sample: 187 second year business students in a Philippine university Method: The students filled out a questionnaire which …

Back To Basics: The Little Book That Still Beats The Market, Knowledge@Smu

Knowledge@SMU

Investment theories and principles can be complex and befuddling for many. Yet, one man has devised a formula so simple that it could speak to novices and children. In The Little Book That Still Beats the Market, Columbia University lecturer Joel Greenblatt explains, in large fonts, how he derived what has been termed "the magic formula" and provides some examples as proof of its wizardry. As for weather-beaten investors with no latitude left for "magic", Greenblatt offers a humorous revision of the fundamentals.