Finance and Financial Management Commons^™

Setting Up The Right Guardrails, Vijaya Sunder, Ram Nidumolu, Milind Sohoni, Siddhartha Modukuri

Asian Management Insights

1. Emerging economies need public-private partnerships (PPPs) to deliver much-needed large-scale infrastructural projects.

2. An ‘orientation precedes strategy’ approach to partnerships generates wider societal acceptance and financial viability for stakeholders.

3. The stakeholder-orientation framework improves decision-making by promoting adaptability and inclusive engagement, as illustrated by the success of India’s Hyderabad Metro Rail Project.

The Yields That Bind: Treasury Bill Yields And The Philippine Corporate Bond Yield Spreads (Pre-Covid 2012–2019), Maurice Arce, Carlos Dorado, Justine Pascua, Paul Robles, Junette Perez

DLSU Business & Economics Review

The paper’s base reference is Duffee (1998). He examined the inverse relationship between the U.S. Treasury bill yields (TBY) and the corporate bond yield spreads (CBYS). Eight years of historical data on the Philippine CBYS from 2012–2019 and data on TBY were analyzed using OLS regression. To examine, if the results hold in the Philippines and given that the bond market in the country differs from the U.S. bond markets, will the results of Duffee (1998) persist? Although the paper focused on providing evidence on one of the most basic, well-established inverse relationships between TBY and inflation to CBYS, the …

Share Pledge And Accounting Conservatism In Share-Pledging Firms: Evidence From A Natural Experiment In China, Xin Wang, Yue Sun, Yanlin Li, Cuijiao Zhang

Research outputs 2022 to 2026

This paper focuses on firms in which insiders pledge their shares as collateral for loans. By investigating a natural experiment—China’s enactment of provisions on share reductions that restrict pledge creditors’ cashing-out behavior—we find that pledging firms exhibited more conservative financial reporting after the implementation than non-pledging firms. This effect was pronounced in firms with a higher ratio of pledged shares, a longer maturation period of the pledged shares, and more concentrated pledge creditors. Additionally, we show that pledging firms increased their accounting conservatism after the shock, leading to a lower risk of margin calls and stock price crashes. The effect …

Who Profits From Trading Options?, Jianfeng Hu, Antonia Kirilova, Gilbert Seongkyu Park, Doojin Ryu

Research Collection Lee Kong Chian School Of Business

We use account-level transaction data to examine trading styles and profitability in a leading derivatives market. Approximately 66% of active retail investors predominantly hold simple, one-sided positions in only one class of options, whereas institutional investors are more likely to use complex strategies. Hypothesizing that the complexity of trading styles reflects investors' skills, we examine the effect of options trading styles on investment performance. We find that retail investors using simple strategies lose to the rest of the market. For both retail and institutional investors, selling volatility is the most successful strategy. We conclude that these style effects are persistent …

Two Essays On Asset Prices Around Securities Class Action Lawsuits, Sounak Saha

Theses and Dissertations in Business Administration

Essay 1: Prior studies on securities class action lawsuits have found that there are large negative abnormal returns and an increase in short-selling activity in the days preceding the lawsuit filing. These findings have largely been attributed to anticipatory inference and private information. However, our analysis of a large sample spanning 2009-2019 reveals that more than half of the lawsuits had a public announcement about the law firm investigation in the days leading up to the lawsuit filing. Strikingly, we find that the average cumulative abnormal return during the 10-day pre-filing period was: (1) over -17% for lawsuits with a …

Two Essays On Labor Heterogeneity, Enxi An

Theses and Dissertations in Business Administration

Labor heterogeneity limits firm flexibility, subsequently affecting a firm's capacity to adapt and grow within a dynamic economic landscape and to formulate effective financial strategies. Firms with high labor heterogeneity tend to incur significant labor adjustment costs, making it costly and challenging to adjust their workforce in response to economic changes. While retaining skilled labor can be advantageous in preserving valuable human capital, it also incurs considerable economic costs that significantly influence firms' financial strategy and decision-making processes. This dissertation comprises two essays that explore the implications of firms' dependence on skilled labor.

The first essay empirically investigates how labor …

Editor’S Note

DLSU Business & Economics Review

No abstract provided.

Price Discovery On Decentralized Exchanges, Agostino Capponi, Ruizhe Jia, Shihao Yu

Research Collection Lee Kong Chian School Of Business

Decentralized exchanges (DEXs) allow traders to express their willingness to pay for quick execution through a public priority fee bidding mechanism. This influences the trading strategy of informed traders and creates a distinct price discovery process on DEXs compared to centralized exchanges. We present empirical evidence that high-fee DEX trades contain more private information. Informed traders bid high fees not only to avoid execution risk from blockchain congestion, but also to compete for execution priority. Using a dataset of Ethereum mempool orders, we demonstrate that informed traders employ a ``jump bidding'' strategy, placing high initial bids to deter potential competitors.

Cds Channels Of Influence On Discretionary Accruals, Hao Cheng, Kian Guan Lim

Research Collection Lee Kong Chian School Of Business

Existing studies indicated that firm debt holders can use the credit default swap (CDS) market to hedge their credit risk, and thus they would reduce their monitoring of the firms, leading to largely distressed firms shirking and increasing positive abnormal earnings accruals. Besides providing insurance, however, the CDS spreads also perform price discovery of credit risk information sought by trade creditors and potential lenders who are not protected. High absolute abnormal discretionary accruals or bad earnings quality, especially negative abnormal accruals, would lead adverse CDS price signals that are very costly to the firm. This compels the firm under nondistressed …

Accounting For The Eu Green Taxonomy: Exploring Its Concept, Data And Analytics, Lucia Alessi, Theodor Florian Cojoianu, Andreas G. F. Hoepner, Giovanna Michelon

Research Collection College of Integrative Studies

The European Union's Green Taxonomy has been used by corporations to account for and disclose hundreds of billions of Euros in capital expenditures. The aim of the taxonomy is to set a common and clear definition about which economic activities are most needed for the transition to a low-carbon economy, in line with the objectives of the European Green Deal. It is essential that academic research explores (a) to what extent the taxonomy is clearly understood, (b) if it impacts financial, environmental and societal outcomes, and (c) how it can be advanced. We review the nascent literature on this new …

Contributors

DLSU Business & Economics Review

No abstract provided.

Green Bond Premiums In The Asia-Pacific And European Markets, Parath Wongaree, Chiyachantana N. Chiraphol, Kuan Yong David Ding, Wasin Siwasarit

Research Collection Lee Kong Chian School Of Business

We examine green bond premiums in the primary and secondary bond markets in the Asia-Pacific and Europe. In both regions, green bond yields are significantly lower than those of conventional bonds in the primary market, indicating that a green bond premium exists. Asia-Pacific investors in the secondary market are more willing to accept lower yields than European ones. We find that green bonds have a lower risk than conventional bonds. Investment grade issuers, financial sector issuers, and local currency green bonds are associated with lower yields due to their stronger reputation, higher credit ratings, and absence of foreign exchange risk.

Pengaruh Tanggung Jawab Sosial Terhadap Performa Keuangan Perusahaan Dan Efek Moderasi Dari Struktur Kepemilikan Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Periode 2018-2022, Muhammad Ridwan Triadi, Mona Ridho Sidjabat

Jurnal Manajemen dan Usahawan Indonesia

This study investigates the effect between corporate social responsibility (CSR) and corporate financial performance (CFP) and the moderating effect of ownership structure. This study divides ownership structure into ownership concentration and ownership type. Data was taken from Thomson Reuters includes 37 sample companies listed on the Indonesia Stock Exchange for the period 2018-2022. This study uses the least squares regression method (OLS) and the two-stage least squares method (2SLS). The result show a positive and significant effect between CSR and CFP. However, ownership concentration inhibits the positive effect and CSR in non-SOE companies cannot increase CFP better than SOE companies.

Can Corporate Sustainability Performance (Csp) Overcome Indonesia's Corporate Debt Problems?, Johnson Ferry Febrian, Nora Sri Hendriyeni

Jurnal Akuntansi dan Keuangan Indonesia

Based on IMF publications (2022), Indonesian companies have a risky debt level that may cause bankruptcy, so companies are required to make leverage adjustments to return the debt to its optimal level. In recent years, corporate sustainability performance (CSP) practices have been proven to improve performance and overcome financial problems such as debt by integrating sustainability aspects into business processes. Based on stakeholder theory and trade-off theory, this study aims to examine the effect of CSP on leverage adjustment and the role of competitive advantage, equity mispricing, profitability, and firm size in moderating this relationship. This study used a sample …

Do Fundamental Financial Ratios Affect The Company's Stock Price? Indonesia Evidence, Arumega Zarefar, Armadani Armadani

Jurnal Akuntansi dan Keuangan Indonesia

The objectives of this research aims to examine the effect of corporate fundamental financial ratios on stock prices and to examine whether firm age determine stock prices in the perspective of signaling theory. Here Generalized Least Squares (GLS) approach was used as the main analysis technique, and Ordinary Least Squares (OLS) was incorporated for the robustness test. The research was conducted on companies listed on the Indonesia Stock Exchange during the 2014-2020 period. This study finds that return on assets, solvency ratio, and Tobin's Q positively affect stock prices, that cash ratio has a negative effect on stock prices, and …

Esg Performance, Debt Equity Choices, And Rapid Adjustments In Indonesia, Arum Pujiastuti, Rizki Dini Shandra Yunita, Fitria Yuni Astuti

Jurnal Akuntansi dan Keuangan Indonesia

Previous research has explored the relationship between sustainability performance and firm performance; however, there is a noticeable scarcity of studies addressing the intricate connection between sustainability performance and firm financing. This study aims to bridge this gap by investigating how sustainability performance impacts firm financing decisions and capital structure adjustment in the context of Indonesia. Leveraging Environmental, Social, and Governance (ESG) performance data specific to Indonesia, this research contributes novelty to financing choices and the speed at which firms adjust their leverage. Through a combination of fixed-effect modelling and dynamic panel Generalized Method of Moments (GMM), the study employs a …

واقع ضوابط الاستثمار, Safa Fleih

Al Jinan الجنان

This study came under the title of the reality and controls of investment in investment funds in Islamic banks in Iraq, and the problem was summarized by the following main question: What is the reality and controls of investment in investment funds in Islamic banks in Iraq? The importance of the topic is highlighted by not singling out this topic for independent research in this way according to the researcher’s knowledge, and the need of Islamic societies to study these urgent topics and know the position of Islamic Sharia regarding them, and the large number of types of investment funds …

Policy Frameworks And Citizens’ Use Of Fintech Solutions: The Pros And Cons In Egypt, Salma Al-Mohamady

Theses and Dissertations

This thesis provides a comprehensive analysis of the significant influence of financial technology (FinTech) on the banking industry, consumer finance, and economic growth. It specifically concentrates on the swiftly changing FinTech environment in Egypt. The study investigates the impact of incorporating advanced technologies on worldwide financial practices, which has significantly transformed traditional banking models and facilitated the emergence of inventive financial services. The transition is clearly apparent in Egypt, where the expansion of FinTech has been driven by advances in regulations, adaptation to technology, and a population that is becoming more comfortable with digital solutions.

Using a combination of quantitative …

Financial Inclusion And Human Development: A Comparative Analysis Of Mena And Brics, Mohammad Eid

Theses and Dissertations

Various efforts to enhance human development in several countries has been underway for years now, but the level of human development attained by countries in BRICS and MENA regions vary. This study empirically examines the role of financial inclusion and its impacts on human development; it investigates whether financial inclusion can be used to drive human development by examining and comparing its results in MENA and BRICS countries. The dependent variable is the score of Human Development index HDI. This study provides a unique comparative analysis of the role of financial inclusion and its effects on human development in MENA …

Essays On Machine Learning And Corporate Disclosure, Zicheng (Leo) Xiao

USF Tampa Graduate Theses and Dissertations

This dissertation contains two essays that shed new light on the dynamic of information disclosure on the capital market. For both two essays I leverage computational linguistics and 20 million turns of dialogues from earnings conference calls from 2006-2022. In the first essay, I introduce a novel measure that quantifies the disparity in narrative focus between managers’ disclosures and analysts’ questions during these calls, denoted as Topic Attention Divergence (TAD). A higher level of TAD indicates a higher level of firm-investor asymmetry and lower information quality. My results confirm that higher TAD in earnings conference calls inversely (positively) predict firms’ …