Finance and Financial Management Commons^™

Economic Freedom And Labor Market Outcomes Of Immigrants: Evidence From The Dominican Republic And Haiti, Sarah Carvalho, Kathleen Pinkston, Logan Tucker, Corey Denzel

[Archive] Belmont University Research Symposium (BURS)

When two people receive the same gift and person A initially had significantly less than person B, wouldn’t person A be able to utilize the gift more? Why then do immigrants from Haiti fare so poorly compared to those from the Dominican Republic when exposed to the economic freedom levels of the United States? Using data from the last 30 years, we will be using an OLS model to analyze the impact of economic freedom on the labor market outcomes of immigrants from Haiti compared to those from the Dominican Republic. In this OLS model, we will take into account …

Lehman Brothers Bankruptcy: Reasons, Effects, And Outcome, Christian J. Reller

Finance Undergraduate Honors Theses

Lehman Brothers’ bankruptcy was a major turning point during the 2008 Financial Crisis, and Lehman Brothers itself has become a prime example of regulatory failure since its closing. The demise of Lehman stemmed from the repeal of the Glass-Steagall Act of 1933. The deregulation of investment banking in the 1990s forged the way for new investment practices on Wall Street. The relaxation of rules allowed investment banks to be heavily invested in volatile assets. Lehman’s issues were an extremely high leverage ratio, illiquid assets, and poor corporate governance. An extremely high leverage ratio left Lehman susceptible to large movements in …

Monitoring Institutional Ownership And Corporate Innovation, Steve Miller, Bin Qiu, Bin Wang, Tina Yang

Finance Faculty Research and Publications

We document a positive effect of monitoring institutional ownership on firm innovation after controlling for traditional measures of institutional ownership. We further find that monitoring institutions enhance firm innovation by: (1) incentivizing CEO risk-taking and reducing intense board monitoring, (2) alleviating agency problems, (3) attenuating managerial career concerns, and (4) mitigating corporate misvaluation. Overall, our findings highlight the importance of considering institutions’ monitoring incentives when examining the outcomes of their portfolio firms’ activities associated with high information asymmetry.

A Comparison Of M&T Bank And Citizens Bank Net Income Changes During The Coronavirus Pandemic, Alex R. Glasier

Applied Economics Theses

The COVID-19 pandemic had a tremendous impact on every aspect of life, particularly within the world of banking & finance. All banks saw sharp drops in their stock prices and net income, but my hypothesis is that larger, more established banks maintained more stability during 2020 than smaller banks. This paper analyzes the income statements and balance sheets of M&T Bank (an older, more well-established bank) and Citizens Bank (a less-established bank) during this difficult time.

The first part of my thesis describes similarities and differences between M&T Bank and Citizens Bank. I explain how these similarities and differences may …

Exploring Mortgage Loan Opportunities For Native 360, Donald Nam, Brooks Douglass, Michael Buehre Stackpole, Broderick Diez

Honors Program: Senior Projects (Public)

Native 360 is a Community Development Financial Institution (CDFI) that aims to provide affordable capital, credit, and assistance to develop strong and self-sufficient Native Americans. Native 360 currently accomplishes this by specializing in providing personal and business loans. However, Native 360 would like to expand into home mortgages as an additional offering. Native 360 has reached out to us to have us develop a strategy to raise capital for their ambitious new business line in an attempt to strengthen the Native American community through home ownership.

Understanding Sentiment Through Context, Richard M.Crowley, M.H. Franco Wong

Research Collection School Of Accountancy

We examine whether empirical results using text-based sentiment of U.S. annual reports depend on the underlying context, within documents, from which sentiment is measured. We construct a clause-level measure of context, showing that sentiment is driven by many different contexts and that positive and negative sentiment are driven by different contexts. We then construct context-level sentiment measures and examine whether sentiment works as expected at the context-level across four prediction problems. Our results demonstrate that document-level sentiment exhibits significant noise in prediction and suggest that document-level aggregation of sentiment leads to missed empirical nuances. The contexts driving sentiment results vary …

Don't Interfere With My Rights! Employee Rights Violation And The Cost Of Bank Loans, Amirhossein Fard, Ibrahim Siraj, Bin Wang

Finance Faculty Research and Publications

We study the relationship between the cost of bank loans and the charges filed to the National Labor Relations Board (NLRB) due to managerial interference in employee rights. Loans issued after the filing of the allegations are associated with significantly higher loan spreads than loans initiated before the filing of allegations. Strong allegations that result in withdrawal with adjustments or compliance tend to positively affect the loan pricing. Further, interfering firms tend to experience higher default risks in the years following the filing of charges. Our paper is the first in the literature to show the impact of violation of …

Learning From Manipulable Signals, Mehmet Ekmekci, Leandrro Gorno, Lucas Maestri, Jian Sun, Dong Wei

Research Collection Lee Kong Chian School Of Business

We study a dynamic stopping game between a principal and an agent. The agent is privately informed about his type. The principal learns about the agent’s type from a noisy performance measure, which can be manipulated by the agent via a costly and hidden action. We fully characterize the unique Markov equilibrium of this game. We find that terminations/ market crashes are often preceded by a spike in (expected) performance. Our model also predicts that, due to endogenous signal manipulation, too much transparency can inhibit learning. As the players get arbitrarily patient, the principal elicits no useful information from the …

Factors Affecting The Growth Of Small Privately-Owned Financial Planning Businesses, Darren A. Pawski, Robert J. Powell, Anna Golab

Research outputs 2022 to 2026

Over the past 10 years, there have been many financial scandals in the financial advice industry, which has caused substantial losses for investors. Large wealth institutions controlled by major Australian banks have significantly contributed to investor losses by promoting their products which were not always in the best interests of clients. The aim of this study was to explore the factors affecting the current and future growth of small privately-owned financial planning businesses as a competitive marketplace provides better consumer outcomes. The study undertook a qualitative approach using an exploratory research design which involved the recruitment of 51 privately-owned financial …

Safe Havens In Islamic Financial Markets: Covid-19 Versus Gfc, M. Kabir Hassan, Hadrian Geri Djajadikerta, Tonmoy Choudhury, Muhammad Kamran

Research outputs 2022 to 2026

Using a bivariate dynamic conditional correlation (DCC) generalized autoregressive conditional heteroskedasticity (GARCH) model, this study compares the safe-haven properties of various assets against the major Gulf Cooperation Council (GCC) stock indexes during two periods of financial turmoil, the COVID-19 pandemic and the 2008 Global Financial Crisis (GFC). Sovereign bonds offered the highest hedging benefits under both crises. The traditional safe assets, gold and silver, which were reasonably productive under the GFC, have been less so during the pandemic. The Japanese yen emerged as a very safe choice for investors holding GCC stock indexes. Both sector indexes and stock indexes failed …

Does Time Equal Money? Temporal Discounting And Self-Control: Insight Into The Rationality Of Personal Financial Decision-Making, Joshua Epstein

USF Tampa Graduate Theses and Dissertations

Exponential and hyperbolic intertemporal choice models have been widely investigated to measure an individual’s degree of impulsivity in behavioral economics. Hyperbolic discounting research identifies subject’s disproportionately high subjective value to immediate rewards, to the extent that it is not in their best interest. Furthermore, preference reversals have shown subjective value demonstrates an inversely relationship proportional to delay.

Investigation into whether visual representations influence conservative personal finance savings behavior was demonstrated in this study by presenting a multitude of visualizations before allocation of limited monetary resources. Evaluation of the neighbor effect was tested to determine whether comparing individuals to their peers …

The Effect Of Accounting Conservatism On Measures Of Financial Constraints, Taewoo Kim, Brandon Byunghwan Lee, Bo Meng, Daniel Paik

Accounting Faculty Publications

This study examines the relationship between accounting conservatism and measures of financial status. We find that, in general, a higher level of accounting conservatism is associated with a lower level of financial constraints – thereby making external funds less costly. The results also show that for a firm with a higher bid-ask spread or a higher likelihood of bankruptcy, this negative relationship between conservative financial reporting and financial constraints is intensified. In other words, a higher level of accounting conservatism is likely to make external funds less costly especially for those firms with a higher level of bid-ask spread or …

Essays In Political Insider Trading, Jan Hanousek Jr.

USF Tampa Graduate Theses and Dissertations

In this dissertation, I examine senators’ stock transactions, filled both electronically and on paper, between 2012 and 2020 to assess the extent of politicians’ insider trading and its impact on the market. The results suggest that senators use inside political information when investing. I find that both the estimated realized returns and buy-and-hold market abnormal returns are positive and significant. The extent of returns depends on the various personal characteristics of senators. Furthermore, there is evidence that senators attempt to obscure their more profitable trades, further suggesting that they use inside information when trading.

To extend traditional return-based methods, I …

A Hybrid Delayed Differentiation Multiproduct Epq Model With Scrap And End-Products Multi-Shipment Policy, Yuan-Shyi Peter Chiu, Ya-Lei Lo, Tsu-Ming Yeh, Yunsen Wang, Hung-Yi Chen

Department of Accounting and Finance Faculty Scholarship and Creative Works

The present work intends to optimize a hybrid delayed differentiation multiproduct economic production quantity-EPQ model with the scrap and end-products multi-shipment policy. Since the requirements of multi-goods have a standard part in common, our fabrication planning adopts a two-phase delayed differentiation strategy to make the standard components first and produce the finished multi-goods in the second phase. Implementing a partial subcontracting option (with the additional expense) for the standard parts helps us to expedite the required uptime in the first phase. A screening process identifies the faulty items that need to be removed to ensure the in-house production quality. A …

Innovation In Futures Markets: Event Contracts, Speculation, And Hedging, Fabio Mattos

Cornhusker Economics

The CME Group has recently launched a new type of contract whose payoffs are based on specific events. These contracts are called event contracts but are also known as prediction contracts or information contracts. They are short-term contracts that expire at the end of each trading day. Traders can take positions in these contracts as they predict whether the price of a given asset will finish the trading day above or below a set value.

Discusses: How are they traded? Main characteristics of event contracts. Event contracts offered by CME group and event examples on October 21, 2022. Why were …

The Hidden Costs Of Financing A National Football League Stadium With Municipal Bonds: The Case Of Allegiant Stadium In Las Vegas, Leobardo Diosdado, Marco Lam, Charlie Parrish

Journal of Applied Sport Management

The development of professional sports stadiums in the United States typically relies on public funding in the form of municipal bonds. Prior research has identified several economic and noneconomic reasons local governments choose to direct public funds towards the construction of stadiums. The overall conclusion of this research suggests sport stadiums do not result in significant increases in economic activity and therefore subsidized stadium development projects lack economic justification. In this study, the process of issuing bonds is examined. The authors describe the bond issuance process and utilize data associated with the bonds for the development of Allegiant Stadium in …

The Effects Of Prior Trading Performance Have On Risk-Taking Of Subsequent Trading – The House Money Effect, Lenz Tan Koon Bin

Dissertations and Theses Collection (Open Access)

This study tests for house money effect on 2,030 non-professional FX investors trading through an Australian Financial Service provider. The results indicate that, in general, investors display a positive relationship between prior gains and the change in subsequent weekly risk-taking - the house money effect. The results also suggest that astute investors display a stronger house money effect than mediocre investors following prior gains. In comparison, mediocre investors display a stronger disposition effect following prior losses than astute investors. The study further reveals that investors who initially demonstrated the house money effect became more prone to the disposition effect during …

Responsible Hedge Funds, Hao Liang, Lin Sun, Song Wee Melvyn Teo

Research Collection Lee Kong Chian School Of Business

Hedge funds that endorse the United Nations Principles for Responsible Investment (PRI) underperform other hedge funds after adjusting for risk but attract greater investor flows, accumulate more assets, and harvest greater fee revenues. Consistent with an agency explanation, the underperformance is driven by PRI signatories with low environmental, social, and governance (ESG) exposures and is greater for hedge funds with poor incentive alignment. To address endogeneity, we exploit regulatory reforms that enhance stewardship and show that the ESG exposure and relative performance of signatory funds improve post reforms. Our findings suggest that some hedge funds endorse responsible investment to pander …

Towards Automated Safety Vetting Of Smart Contracts In Decentralized Applications, Yue Duan, Xin Zhao, Yu Pan, Shucheng Li, Minghao Li, Fengyuan Xu, Mu Zhang

Research Collection School Of Computing and Information Systems

We propose VetSC, a novel UI-driven, program analysis guided model checking technique that can automatically extract contract semantics in DApps so as to enable targeted safety vetting. To facilitate model checking, we extract business model graphs from contract code that capture its intrinsic business and safety logic. To automatically determine what safety specifications to check, we retrieve textual semantics from DApp user interfaces. To exclude untrusted UI text, we also validate the UI-logic consistency and detect any discrepancies. We have implemented VetSC and applied it to 34 real-world DApps. Experiments have demonstrated that VetSC can accurately interpret smart contract code, …

The Impact Of Performnace Scorecard On Drilling Operations Effectivness: The Case Of Abu Dhabi National Oil Company (Adnoc), Adnan Mohamed Almenhali

Dissertations

The balanced scorecard (BSC) has been newly introduced to drilling operations. This research evaluates the impact of performance scorecard implementation on drilling operations in Abu Dhabi National Oil Company (ADNOC) and the ability to develop and construct a new framework for performance scorecards. The oil and gas sector is critical to the UAE since it is one of the main sources of income driving the economy. UAE is one of the leaders in the region in oil and Gas production. As a result, studies to enhance the performance of the industry and UAE companies are critical for overall economic wellbeing. …