Finance and Financial Management Commons^™

India: Yes Bank Restructuring, 2020, Salil Gupta

Journal of Financial Crises

Yes Bank was suffering from liquidity outflows in the second half of 2019 owing to a combination of deposit withdrawals, invocation of pledged shares, losses from extraordinary credit provisions, and overexposure to stressed sectors like power and infrastructure. In December 2019, Yes Bank reported a Common Equity Tier 1 capital ratio at 0.6%, far below the Reserve Bank of India (RBI) mandated levels, and a quarterly loss of 185 billion Indian rupees (INR; USD 2.5 billion). In early March 2020, the RBI and the Ministry of Finance announced a restructuring plan for India’s fourth-largest private bank, Yes Bank, to prevent …

Fhlb Dividends: Low-Hanging Fruit For Reconfiguring Fhlb Lending, Steven Kelly, Susan Mclaughlin, Andrew Metrick

Journal of Financial Crises

In the United States, the lender-of-last-resort tool is the Federal Reserve’s discount window. Despite countervailing policy efforts, substantial market stigma remains associated with borrowing from the discount window. It is in this context that market participants have come to view the Federal Home Loan Banks (FHLBs) as an alternative to the Fed’s discount window for backstop liquidity needs—despite the FHLBs’ relatively constrained abilities to play this role. Notably, however, the FHLBs don’t just benefit from discount window stigma; the FHLBs reinforce discount window stigma with their subsidized pricing. The FHLBs are government-sponsored enterprises—and as such can fund themselves at government …

Converting Npv And Irr Cash Flows Into A Financial Calculator Using An Excel Template, Tom Arnold, Summer Liu, Cassandra D. Marshall

Finance Faculty Publications

An Excel template is developed that converts a series of cash flows on a timeline into the associated keystrokes for the TI BAII-Plus financial calculator in order to calculate NPV and IRR. Unlike videos and other presentations, the student is able to see, all at once, the keystrokes required for the financial calculator within the template after the student enters the correct inputs for how the cash flows occur through time. Many times, this crucial link of translating the cash flows through time into the financial calculator is lost. Further exercises are provided to reinforce proficiency.

Monetary Policy Impact On Stock Returns For Selected South Asian Countries, Neluka Devpura, Paresh Kumar Narayan, Navin Perera

Bulletin of Monetary Economics and Banking

In this paper, we examine the monetary policy impact on the stock market returns and volatility for four major South Asian countries (Bangladesh, India, Pakistan, and Sri Lanka). We test our hypothesis that monetary policy influences both the first and second order of stock returns by using monthly data. The short-term interest rate and the Treasury bill rate are employed as proxies for monetary policy. Controlling for industrial production, inflation, exchange rates (vis-à-vis the US dollar), US interest rate, and money supply, our findings indicate that there exists a statistically significant impact of short-term interest rates on stock returns only …

Assessing And Mitigating The Impact Of Geopolitical Risk Uncertainty On The Indian Financial Sector: A Policy Perspective, Satish Kumar, Amar Rao

Bulletin of Monetary Economics and Banking

The study explores the impact of geopolitical risk uncertainty on the Indian financial sector, focusing on bonds, banking, currency, and the equity markets. It uses a quantile vector autoregression (QVAR) approach to examine shock transmission under different market conditions. Results show that geopolitical risks significantly influence the Indian financial sector, with varying levels of shock transmission across different market conditions. The currency and banking sectors show heightened sensitivity during periods of increased uncertainty. The findings suggest the need for effective monitoring systems and comprehensive risk management strategies to mitigate the adverse effects of geopolitical risks.

Essays On Multivariate Risk, Lin Zhou

Lingnan Theses (MPhil & PhD)

The essays focus on the analysis of multivariate risk, and they present insights in three papers. The first paper extends stochastic dominance to bivariate analysis by incorporating a reference function. Our approach offers flexibility in the selection of a reference function, improving upon previous studies by addressing their limitations more cohesively. The second paper explores a general choice-theoretic characterization of the duality that exists between a mean-utility-preserving increase in correlation and an increase correlation aversion. This sheds light on monotone comparative statics and characterizes cross-partial derivatives of the utility function. The last paper investigates optimal prevention in the presence of …

Consumers’ Financial Literacy In Poland - The Research And The Resulting Conclusions, Andrzej Bień, Łukasz Gębski

Journal of Banking and Financial Economics

Background & Purpose of the article: The research paper raises important issues in the field of consumer financial literacy in Poland. The authors note that efforts made in financial education are not fully effective and the number of wrong decisions made by consumers is high. The study led to two interesting observations: high self-assessment of knowledge is not confirmed in practice. The mistakes made do not result solely from the lack of knowledge of consumers. They are very often a result of their personality and a way of perceiving reality.

Methods: The authors compared Polish and foreign research results in …

Can Financialisation Counteract Banking Exclusion? A Study On The Example Of The European Union Member States, Tomasz Florczak, Marika Ziemba

Journal of Banking and Financial Economics

The purpose of the article is to assess the relationship between financialization and banking exclusion. The research hypothesis that financialization contributes to the reduction of financial exclusion was also verified. The research was based on an analysis of the variables describing financialization and banking exclusion of 27 European Union countries in the 2014–2021 period. The zero-unitarization method and Pearson’s correlation coefficient were used. The results of the study indicate that a high degree of financialization is found in Croatia, Greece, Cyprus and Portugal. In contrast, the level of banking exclusion is the highest in Finland, Sweden, the Netherlands and Latvia. …

Board Gender Diversity And Its Impact On Financial Performance And Risk-Taking: A Study Of Listed North American Companies, Ambrose Houphouet

Doctoral Dissertations (DBA)

In today's globalized world, gender diversity is increasingly recognized as vital for companies, yet women remain underrepresented in leadership positions. The lack of representation of women in leadership roles and their possible impact on business performance have led to a greater awareness of gender diversity on corporate boards in recent years. However, men dominate in some fields and the representation of women in decision-making levels is very low and it is unclear whether gender diversity brings any benefits to the company in terms of financial performance and risktaking. Therefore, the study examines the impact of gender diversity on financial performance …

Study On The Structural Influence Mechanism Of Robot Construction On Real Estate Project Costs: Moderating Effect Of Management Change, Xiujuan Wei

Dissertations and Theses Collection (Open Access)

Cost control in construction is crucial for the survival of real estate enterprises. Especially in the context of cyclical downturns in the real estate industry, it is essential to achieve cost reduction and efficiency improvement in real estate projects. Currently, the widespread application of robotics technology may hold the key to achieving this goal. Robotics technology is widely recognized for its ability to automate tasks and reduce labor costs. However, it also brings about transformative impacts on management, organization, production, and processes, which can paradoxically increase project costs. Unfortunately, there is a lack of research focusing on the impact of …

Mega-Influencers And Brand Dynamics: Shaping Attitudes Toward Leading And Challenger Brandsthrough Electronic Word Of Mouth, Riccardo Rialto, Lamberto Zollo, Kacy Kim, Sukki Yoon

Mathematics and Economics Faculty Journal Articles

The aim of this paper is to explore how mega‐influencers' electronic word of mouth (eWOM) messages on social media influence consumers' brand attitudes in duopolistic markets. Through three experimental studies, we observe that when mega‐ influencers send positive (vs. negative) eWOM messages about a leading brand, followers form positive (vs. negative) brand attitudes, but these effects fail to occur when influencers back challenger brands. The findings are consistent across three duopolistic market rivals (Apple vs. Samsung; UPS vs. FedEx; Nike vs. Adidas), three social media platforms (Facebook, Instagram, and X), and four mega‐influencers (Marques Brownlee, Gary Vaynerchuk, Kanye West, and …

Exploring Mean Reversion Dynamics In Financial Markets: Insights From Hurst Exponent Analysis, Shifa Hasan, Renu Ghosh

The Indonesian Capital Market Review

The current study investigates mean reversion and the speed of mean reversion within financial mar- kets at BSE 200 and NSE Nifty 200 for a data set of 20 years (2004–2024). It employs a variety of techniques, including traditional tests like the Augmented Dickey-Fuller (ADF) and Philips-Perron (PP) tests, as well as long-term dependency analysis using the Hurst exponent. The Ornstein-Uhlen- beck process facilitated the speed of mean reversion. Empirical data demonstrates that mean rever- sion processes exhibit Hurst exponent values less than 0.5, suggesting mean reverting behaviour. This signifies the importance of adopting long-term perspectives in decision-making and trading …

The Response Of Mena Country Stock Markets To The Conflict In The Red Sea: Evidence From An Event Study Approach, Necati Altemur, Berna Doğan Başar, Ibrahim Halil Ekşi

The Indonesian Capital Market Review

The impact of Houthi attacks on commercial vessels in the southern Red Sea and the Gulf of Aden on the stock markets of 10 MENA countries is analyzed using an event study. The event day is 10.01.2024, when the Houthis announced targeting the US navy. Significant results are found regarding stock market efficiency and portfolio investors. The t-test shows that CAR (Cumulative Abnormal Return) values are statistically significant for some MENA countries. Positive abnormal returns are found in Morocco, Bahrain, and Egypt, while negative abnormal returns are found in Lebanon and Tunisia within the event window. In other countries analyzed, …

Empirical Tests Of The Existence Of Industry Momentum On The Indonesian Stock Exchange, Irene Natalia Verda

The Indonesian Capital Market Review

Momentum is one of strategy to generate return for profit seeker. This research was conducted to see the existence of momentum strategy at the industry level with the object of all stocks on the Indonesia Stock Exchange consists of 880 stocks grouped into 11 industries based on ICB (Industry Classifi- cation Benchmark). Research period start in July 2014 until December 2023. There are 6 industry momentum strategies, 3 strategies to form portfolio quarterly and 3 strategies to form portfolio in each semester. Tests are conducted on mean returns and risk-adjusted returns using the Fama-French Three Factor model. The method of …

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 …

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.

Contributors

DLSU Business & Economics Review

No abstract provided.

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 …