Finance and Financial Management Commons^™

Watch The Vote: Avoiding Undesirable Zero-Sum Outcomes, Knowledge@Smu

Knowledge@SMU

Luxury watches often invoke a lot of debate amongst its aficionados. After the great lengths to which people go to, to collect, study, appraise and critique these mobile mechanical clocks, it is no surprise that they feel very strongly about their picks. Decisions made by prestigious bodies, such as the Grand Prix d’Horlogerie, are hence quite delicate. People's money, ego, and pride are at stake. So picking the winner that will keep the majority satisfied is crucial, yet quite difficult to do. Drawing comparisons to political election outcomes, SMU Economics professor Massimiliano Landi explores a new voting system to address …

A New Regulatory Framework Of Financial Institutions In The Aftermath Of The Global Financial Crisis, Ingrid Zantis

WCBT Undergraduate Publications

Three years since the outbreak of the global financial and economic crisis and two years since the global markets’ turmoil following the Lehman Brothers’ bankruptcy and the US government’s bail-out of AIG, reforming the regulatory structure for financial institutions and platforms has achieved some visible progress. Though the new architecture is far from being finished, the main challenge is to implement what has been agreed upon in commitments and framework legislation, without losing track of the target to soundly improve global financial stability and effectively resolve future global crises on its way.

Against this background, this paper examines the emerging …

Financial Literacy: The Impact Of Financial Training In High School On The Credit Behavior Of College Students, Lisa Tenaglia

Honors Projects in Finance

Managing credit is increasingly important not only for adults, but for college students. In recent years with sky rocketing tuition and easily available credit, college students find themselves with increasing debt burdens that result in serious and lasting financial problems. In response, financial literacy programs are emerging in hopes that better educated people will make healthy financial decisions, as well as responsibly manage credit. Research suggests that financial education should begin in high school so that young adults can effectively manage credit during the college years. This study assesses both college students’ financial knowledge and their credit management practices. Specifically, …

Possible Solutions To The Rhode Island State Government’S Unfunded Pension Liability, Derek Blunt

Honors Projects in Finance

This paper examines the possible causes of the nationwide unfunded public pension liability problem in the U.S., and what solutions are being proposed to combat the issue. After examining the general problems associated with multiple states’ pension systems, a specific analysis of the Rhode Island public pension system will be conducted. Through this investigation, the factors that led to the crisis in Rhode Island will be unveiled, and possible solutions to the state-specific problem will be developed. In order to arrive at a set of final recommendations for the government, a model will be used to evaluate the effects of …

Non-Profit Organizations In A Down Economy: The Financial Performance Of Higher Education Institutions In The New England Area, Yuanjun Li

Honors Projects in Finance

An economic recession affects an entire economy, including the non-profit sector. The impact could result from changes in government support, a decrease in donations, investment income, service fees or a combination. Many private universities and colleges, which rely on tuition and endowment, have been affected by a dip in enrollments, while their endowments shrink because of the recession and declining stock values. This study will examine how an economic recession can affect non-profit organizations, focusing on private, four-year higher education institutions in New England. Different types and sizes of schools will be affected differently. Since the large, well-known schools have …

How To Implement Best Strategic Practices In Small And Medium-Sized Procurement Organizations During Difficult Economic Times, Peter O'Reilly

Publications

Presentation objectives:

• What are Small-sized and Medium-sized Sourcing Departments?
• What is a Strategic Best Practice and Why is it Important to a Sourcing Department?

Mass Business Report, College Of Management, University Of Massachusetts Boston

Financial Services Forum Publications

Welcome to the College of Management, UMass Boston, Financial Services Forum’s Spring 2010 report on the Massachusetts economy. The spotlight of this report is the Finance, Insurance and Real Estate (FIRE) sector in Massachusetts.

Three Essays On Cross-Listing, Liu Wang

Theses and Dissertations in Business Administration

This dissertation examines the role of cross-listing in shaping corporate earnings quality, stock price informativeness, and firm valuation, as well as its impact on a listing firm's home country information asymmetry and stock misvaluation.

The first essay addresses the information asymmetry between Chinese local A-share and foreign B-share markets and its impact on the B-share discount puzzle. In contrast with the widespread belief that domestic investors are better informed than foreign investors, this study indicates that foreign investors actually possess more value-relevant, firm-specific information in an emerging market such as China, where information transparency and investor protection are relatively weak. …

Economic Thinking And Risk Attitudes: An Empirical Study, Peter Slepcevic-Zach, Ph.D., Thomas Koeppel

International Journal for Business Education

In the light of the current economic crisis, which had its roots in high risk dealings in the international financial markets, the question how economically minded students are and what propensity towards risk they have, are essential to improving their financial literacy. In a broad survey including economic and non-economic schools 649 students aged 14 and 18 were questioned. In this paper results are presented and implications for classroom teaching and curricular development are derived.

Interpreting Financial Results, Bridget Lyons, Rupendra Paliwal, Danny A. Pannese

WCBT Faculty Publications

The article discusses three accounting changes issued by the Financial Accounting Standards Board (FSAB). The Statement of Financial Accounting Standards (SFAS) No. 158 "Employers' Accounting for Defined Benefit Pension and Other Retirement Plans" and the SFAS No. 160 "Noncontrolling Interests in Consolidated Financial Statements" are mentioned. Financial Interpretation 48 "Accounting for Uncertainty in Income Taxes, an Interpretation of FSAB Statement No. 109" is mentioned.

The takeaway? Financial analysts, investors, and creditors need to carefully interpret ratios and measures, including debt to equity, liabilities to equity, and return on equity. Financial ratios used in loan covenants should be clearly designed and …

A Case Study On The Credit Guarantee Scheme., Mohd Rizal Zubair

Student Works (2010-2019)

A brief description of Bank Perusahaan Kecil dan Sederhana Malaysia Berhad (SME Bank) and Credit Guarantee Scheme (CGS) Bank Perusahaan Kecil dan Sederhana Malaysia Berhad or better known as SME Bank was established more than 30 years ago as Bank Industri dan Infrastruktur Malaysia Berhad. SME Bank is a Development Financial Institution and 100% owned by Ministry of Finance Incorporated and Ministry of Industrial and International Trade acts as the Supervising Ministry. As a Government Agency, SME Bank has its mandated role to provide financing as well as financial and business advisory services to Malaysian SMEs residing within predefined categories …

The Impact Of Inflation Targeting Regime On The Relationship Between Stock Returns And Inflation: International Evidence, Unro Lee

Eberhardt School of Business Faculty Articles

Twenty six industrialized and emerging countries have adopted inflation targeting monetary policy since 1990 to combat persistently high inflation rate. This policy accords either the government and/or the central bank the authority to assign an explicit numerical target for inflation rate and implement an appropriate monetary policy to achieve its goal. This study investigates whether the adoption of inflation targeting strategy has affected the relationship between stock returns and inflation rate. Specifically, this study tests a hypothesis that, in an economy where inflation targeting has been adopted as a new monetary policy strategy, real stock returns should be sensitive to …

Ua37/29 Gary Ransdell - Federal Reserve Board - Federal Reserve's Role In Bank Supervision, St. Louis Federal Reserve Board

Faculty/Staff Personal Papers

Email sent to members of the St. Louis Federal Reserve Board of testimony given by Ben Bernanke to the U.S. House of Representatives Committee on Financial Services.

Hedge Fund Contagion, Melvyn Teo

Research Collection BNP Paribas Hedge Fund Centre

Why do correlations all go to one when economic conditions turn bad? We review the latest research on funding liquidity (the ease with which hedge funds obtain capital) and discuss its implications on the asset liquidity and valuations of securities held by funds, on subsequent fund performance, and on contagion across hedge fund investment styles.

Out Of The Black Hole: Regulatory Reform Of The Over-The-Counter Derivatives Market, Michael Greenberger

Faculty Scholarship

Unregulated OTC derivatives have been at the heart of recent systemic or near systemic collapses. After each financial crisis, governments worldwide proclaim that the OTC market has to be regulated for transparency, capital adequacy, regulation of intermediaries, self regulation, and strong enforcement of fraud and manipulation. But, aided by the passage of time, Wall Street always deflates those aspirations with aggressive lobbying. The present financial reform regulatory effort may be the only chance to get this issue right before the country devolves into a further financial quagmire with more bankruptcies and more job losses. This paper is a chapter of …

Rewriting The World Order: China's Footprint On The Credit Crisis And International Affairs, Knowledge@Smu

Knowledge@SMU

Tired of reading conventional theories to what caused the recent financial crisis? How about a theory that places the blame on China, for a change? Giles Chance, author of “China and the Credit Crisis”, dances between the fine lines as he gives a fresh spin on the crisis, blind Western policymakers, a global currency and the world order that is to come as the "China effect" dominates familiar Western models of capitalism, politics and diplomacy.

Real Options Analysis And The Assumptions Of Corporate Finance: A Non-Technical Review, Tom Arnold, Richard L. Shockley Jr.

Finance Faculty Publications

This paper provides a non-technical presentation of the theoretical foundations of corporate financial decision making and the net present value (NPV) rule. Our objective is to show that the concepts of value and value creation arise from a single, unified framework that is firmly rooted in neoclassical microeconomic theory. This, in turn, allow us to demonstrate that the corporate valuation approach generically known as real options analysis is perfectly justifiable - without further qualification - in any situation when investors want managers to maximize NPV.

Cal Poly Organic Farm Business Plan, Eric Ryan Mccarthy

Agribusiness

This study was undertaken to determine which strategies would allow the Cal Poly Organic Farm to operate as a profitable business without compromising educational and agricultural objectives. Three strategies were analyzed to determine the most profitable approach. The first strategy, expanding CSA sales, emphasizes marketing efforts to increase products and services awareness. This should increase CSA, CPOF, merchandise, and farmers’ markets sales. The second strategy implements new CSA produce boxes that cater to specific groups. Existing produce boxes will remain available to CSA members. Expanding produce boxes can be done with the produce on hand or expanding crop selection. The …

Overinvestment And The Operating Performance Of Seo Firms, Fangjian Fu

Research Collection Lee Kong Chian School Of Business

Prior studies have documented that firms' operating performance deteriorates following seasoned equity offerings (SEOs). This paper proposes and empirically tests the hypothesis that the poor performance is caused by managers' overinvestment. I show that, subsequent to the offering, SEO firms tend to invest more heavily than non-issuing control firms that are in the same industry and have enough financial slack and similar amounts of investment opportunities. More importantly, I find a negative relation between post-issue investment and operating performance, controlling for investment opportunities and pre-issue performance. The evidence supports an overinvestment interpretation as it stands in contrast to the prediction …

Index-Exciting Caviar: A New Empirical Time-Varying Risk Model, Dashan Huang, Baimin Yu, Zudi Lu, Sergio Focardi, Frank Fabozzi, Masao Fukushima

Research Collection Lee Kong Chian School Of Business

Instead of assuming the distribution of return series, Engle and Manganelli (2004) propose a new Value-at-Risk (VaR) modeling approach, Conditional Autoregressive Value-at-Risk (CAViaR), to directly compute the quantile of an individual asset's returns which performs better in many cases than those that invert a return distribution. In this paper we explore more flexible CAViaR models that allow VaR prediction to depend upon a richer information set involving returns on an index. Specifically, we formulate a time-varying CAViaR model whose parameters vary according to the evolution of the index. The empirical evidence reported in this paper suggests that our time-varying CAViaR …