Finance and Financial Management Commons^™

[Abstract For] Excel Functions For Option Prices And Greeks Without Vba, Tom Arnold, Joseph Farizo, Jonathan M. Godbey

Finance Faculty Publications

The =LAMBDA function within Excel provides a powerful new tool for investors and analysts. In this treatment, we demonstrate =LAMBDA functions that calculate an option’s intrinsic value, price, and Greeks based on the Black-Scholes model. We additionally construct an =ALLGREEKS function within Excel’s built-in =MAKEARRAY function that quickly produces option prices and Greeks given six parameters: the underlying spot price (S), strike price (X), annual return volatility (V), days to maturity (DTM), days in a year (DIY), and the annual risk-free rate (RF). In addition to writing this guide on how to create these useful functions, we provide a downloadable …

Challenges And Prospects Of Islamic Financial Services Industry (Ifsi), Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Dr. Ishrat Husain addresses a distinguished gathering of Shariah scholars from across the globe on the transition from conventional to Islamic finance. He raises ten critical questions that explore the challenges and prospects of the Islamic Financial Services Industry.

The Impact Of Emotional Intelligence On Project Success And Team Dynamics In Finance Organizations, Richa Shah

Harrisburg University Dissertations and Theses

This research investigates the impact of emotional intelligence (EI) on leadership effectiveness within the finance industry, with a focus on its influence on team dynamics, decision-making, and the overall success of projects. The study seeks to address a gap in the current literature by examining how finance leaders apply emotional intelligence in high-pressure, fast-paced environments, where quick decisions and high-stakes situations are common. While emotional intelligence has been widely studied in other sectors, there is limited understanding of how it operates in finance, a sector known for its high demands and intense work culture.

The research employs a qualitative methodology, …

How To Communicate Your Estate Plan To Family When Dividing Assets Unequally, Anastasia Meyer

Cornhusker Economics

Provides a guide on how to effectively approach estate planning conversations with family members.

Effectively communicating an estate plan with unequal division of assets can be challenging, but approaching it with honesty, clarity, and empathy can help prevent misunderstandings and family disputes. Open, respectful dialogue—paired with thoughtful explanations and transparent documentation—ensures that your family understands your intentions and feels valued, even when tough decisions are involved.

Ultimately, your goal isn’t just to pass down financial assets, but also to preserve family harmony and, where applicable, secure the future of a viable business. By fostering open communication, you can create a …

Portfolio Optimization Tools In Excel, Tom Arnold, Joseph Farizo, Terry D. Nixon

Finance Faculty Publications

The calculus and matrix algebra associated with finding the optimal portfolio weights for a set of securities is tedious. However, Excel tools make the computations simple, with minimal programming needed to arrive at optimal portfolio weights for securities in a portfolio. We provide this Excel template and techniques for acquiring optimal weights, which is useful for personal and institutional investors alike.

Takeaways:

• The calculus and matrix algebra associated with optimizing portfolio weights is tedious, but not necessary for finding optimal portfolio weights
• Based on the results of the associated mathematics for optimizing portfolio weights, a very accessible Excel template can …

Political Stability As A Risk Factor In Global Markets, Noel Pavel Jeutang

Mountain Plains Business Conference

Using a unique and comprehensive measure of political stability, we evaluate the relationship between countries’ political stability and stock market performance around the world from 2000 to 2022. We find this risk factor is unique relative to other well-established risk factors across emerging and developed markets and that it is a priced risk factor in emerging countries.

Alumni Giving At A Christian Liberal Arts College That Originated As A Bible College, Joel K. Johnson

PhD in Organizational Leadership

Alumni giving is a critical revenue stream for Christian liberal arts colleges that originated as Bible institutions. This dissertation includes an in-depth case study of the patterns and determinants of alumni donations, focusing on the transition from Bible colleges to liberal arts institutions and the subsequent impact on alumni giving behaviors. Quantitative data from a member institution of the Council for Christian Colleges and Universities were analyzed to explore the influence of demographic variables of age, marital status, and era of institutional operation on alumni contributions. This research addressed six key questions, including comparisons of the participants' mean giving to …

Local Environmental Organizations And Long-Term Investor Value Appropriation, Chune Young Chung, Gia Han Doan, Kainan Wang

Finance Faculty Publications

Highlights

• We explore how external and internal firm factors influence the impact of local activism.
• Our results indicate a positive effect of local activism on LIVA.
• Firms tend to increase their environmental disclosures in response to local activism.
• Local activism effects are greater when long-term value is prioritized.
• The findings support the social movement theory.

Abstract

This study uses datasets representing local non-governmental organizations (NGOs) to examine how local environmental organizations enhance long-term investor value appropriation (LIVA). We explore how external and internal firm factors influence the impact of local activism. Our results indicate a positive effect of local activism …

How To Make Everything About Sanctions? Review Of “How Sanctions Work, Iran And The Impact Of Economic Warfare” By Bajoghli, Nasr, Salehi-Isfahani, And Vaez (2024), Siamak Javadi, Alborz Pakravan, Ojan Bahadori, Alireza Akhondi

Finance Faculty Publications

A 2024 book titled “How Sanctions Work, Iran and the Impact of Economic Warfare” by Narges Bajoghli, Vali Nasr, Djavad Salehi-Isfahani, and Ali Vaez argues that sanctions have had no impact on the behavior of the Islamic Republic in Iran (IR hereafter) and have instead inflicted pain on the ordinary Iranians. While the book does offer a useful description of the evolution of the sanctions against the IR, it fails in its analysis and conclusions.

Impact Of Industrial Park Platforms On Sme Financing: Evidence From The Ld Park, Zhendong Liu

Dissertations and Theses Collection (Open Access)

Small and medium-sized enterprises (SMEs) are essential to the Chinese economy. However, when seeking financing, SMEs often face stricter financing conditions and higher financing costs due to information asymmetry in the market, commonly referred to as the problem of “difficult and expensive financing.” This issue severely limits the growth potential of SMEs. This study explores the positive role that industrial parks play as a bridge between banks and SMEs in alleviating the “difficult and expensive financing” problem. The study surveyed 54 industrial parks and collected 268 valid questionnaires from banks, industrial parks, and SMEs. The data analysis yielded the following …

Production Box Cost Estimating Relationships For Dod Avionics, Carla J. Cisneros, Edward D. White, Brandon M. Lucas, Jonathan D. Ritschel, Robert D. Fass, Shawn M. Valentine

Faculty Publications

The authors use historical information obtained from the Cost Assessment Data Enterprise to estimate recurring production unit cost for DoD avionics via cost estimating relationships (CERs). The specific modeled responses include mean unit cost, median unit cost, and the 100th production unit cost (T100) utilizing learning curve theory. For T100, the authors adopt both a multiplicative and an additive error for CER comparison. Recommended CERs consist of the mean unit cost and the T100 utilizing a multiplicative error. Moreover, results reveal that weight has a significant effect on cost as well as a potential underaccounting of real price change or …

Anomalies, Option Volume, And Disagreement, Allaudeen Hameed, Byoung-Hyun Jeon

Finance Faculty Research and Publications

We document robust amplification of stock market anomaly returns associated with elevated option trading volume driven by disagreement trades. Consistent with the correction of mispricing associated with biased beliefs, anomaly returns are higher when disagreement option volume is high prior to earnings announcements. Additionally, we demonstrate that disagreement-based option volume is negatively related to future stock returns among stocks that are overpriced based on anomaly characteristics. Our findings also concentrate in stocks that are also difficult to short, emphasizing the combined impact of investor bias and shorting costs. Leveraging the staggered adoption of extensible Business Reporting Language, we establish a …

Sequential Investment Decisions For Mining Projects Using Compound Multiple Volatility Real Options Approach, Atul Chandra, Peter R. Hartley

Research outputs 2022 to 2026

Managers evaluating investment decisions in mining projects have reported using the net present value approach (NPV). However, NPV has the drawback of collapsing variations from uncertainties in future project cash flows into a fixed expected project value today. Ignoring future uncertainties and contingencies can lead managers to make incorrect up-front binary decisions, such as investing in or abandoning the project now. The real options analysis approach (ROA) instead captures variations from uncertainties as volatilities in project value and allows flexibility in investment decisions to be contingent on information as it is revealed. Managers we consulted agreed that ROA is superior …

Temporal Relational Graph Convolutional Network Approach To Financial Performance Prediction, Jeyaraman Brindha Priyadarshini, Bing Tian Dai, Yuan Fang

Research Collection School Of Computing and Information Systems

Accurately predicting financial entity performance remains a challenge due to the dynamic nature of financial markets and vast unstructured textual data. Financial knowledge graphs (FKGs) offer a structured representation for tackling this problem by representing complex financial relationships and concepts. However, constructing a comprehensive and accurate financial knowledge graph that captures the temporal dynamics of financial entities is non-trivial. We introduce FintechKG, a comprehensive financial knowledge graph developed through a three-dimensional information extraction process that incorporates commercial entities and temporal dimensions and uses a financial concept taxonomy that ensures financial domain entity and relationship extraction. We propose a temporal and …

Physical Frictions And Digital Banking Adoption, Hyun Soo Choi, Roger Loh

Research Collection Lee Kong Chian School Of Business

The behavioral literature suggests that minor frictions can elicit desirable behavior without obvious coercion. Using closures of ATMs in a densely populated city as an instrument for small frictions to physical banking access, we find that customers affected by ATM closures increase their usage of the bank's digital platform. Other spillover effects of this adoption of financial technology include increases in point-of-sale (POS) transactions, electronic funds transfers, automatic bill payments and savings, and a reduction in cash usage. Our results show that minor frictions can help overcome the status-quo bias and facilitate significant behavior change.

Do Women Receive Worse Financial Advice?, Utpal Bhattacharya, Amit Kumar, Sujata Visaria, Jing Zhao

Research Collection Lee Kong Chian School Of Business

We arranged for trained undercover men and women to pose as potential clients and visit all 65 local financial advisory firms in Hong Kong. At financial planning firms, but not at securities firms, women were more likely than men to receive advice to buy only individual or only local securities. Female clients who signaled high confidence, high risk tolerance, or a domestic outlook were especially likely to receive this suboptimal advice. Our theoretical model explains these patterns as a result of statis-tical discrimination interacting with advisors’ incentives. Taste-based discrimination is unlikely to explain the results.

A Garch-Midas Approach To Modelling Stock Returns, Ezekiel N.N. Nortey, Ruben Agbeli, Godwin Debrah, Theophilus Ansah-Narh, Edmund F. Agyemang

School of Mathematical & Statistical Sciences Faculty Publications

Measuring stock market volatility and its determinants is critical for stock market participants, as volatility spillover effects affect corporate performance. This study adopted a novel approach to analysing and implementing GARCH-MIDAS modelling methods. The classical GARCH as a benchmark and the univariate GARCH-MIDAS framework are the GARCH family models whose forecasting outcomes are examined. The outcome of GARCH-MIDAS analyses suggests that inflation, interest rate, exchange rate, and oil price are significant determinants of the volatility of the Johannesburg Stock Market All Share Index. While for Nigeria, the volatility reacts significantly to the exchange rate and oil price. Furthermore, inflation, exchange …

Examining Performance Disparities In Palestinian Banks: A Comparative Analysis Of Islamic And Conventional Banks, Ra'fat Al-Jallad, Luai Antari

An-Najah University Journal for Research - B (Humanities)

The study investigates the performance differentials between Islamic and conventional banks operating in Palestine across a number of dimensions. Research Problem: The study addresses the lack of comparative analysis between Islamic and conventional banks in Palestine, specifically examining performance disparities using the CAMEL approach. This is critical due to the recent trend of conventional banks acquiring Islamic banks, raising questions about the underlying performance differences. Purpose: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset …

College Students’ Financial Literacy At An Eastern Kentucky Regional University, Hannah Barrett, Steve S. Chen, Christy L. Trent

Atlantic Marketing Journal

Financial literacy is essential knowledge for recent college graduates to be able to manage a stable job, career, and personal wealth. This study examined the financial literacy of 228 college students (49.8% males; 50.2% females) at a regional public university in Eastern Kentucky. The participants were randomly invited to complete a 22-item online financial literacy survey, which was created based on the work of Cude et al. (2006). The survey contents included five demographic questions and 17 five-point Likert scales (1= strongly agree/ always, 5= strongly disagree/ never) to rate participants’ knowledge on investing, saving, budgeting, and credit. The data …

The Impact Of Rising Interest Rates, Bank Deposit Betas, And Credit Risk, Abby Craig, Jarrett Grose, Justin Tersoglio, Noah Vanhoy, Brooke Vivenzio

James Madison Undergraduate Research Journal (JMURJ)

Inflation of the U.S. dollar drove the Federal Reserve Board to enact four interest rate hikes of 0.75% and additional smaller hikes between March 2022 and April 2023. This paper examines how interest rate hikes affect bank deposit betas and credit risk for community banks, hot money banks, and alternative lending institutions based on data from March 2022 to April 2023. After analyzing data from the Federal Reserve Economic Database, this research found that bank deposit betas increase as interest rates rise, that community banks’ betas increase at a slower rate than hot money banks’ betas, and that the level …