Finance and Financial Management Commons^™

Topics In International Finance, Jonathan Lennon Hsu

Olin Business School Graduate Student Theses and Dissertations

This dissertation focuses on two main unanswered questions that lie at the intersection between international financing, international trade, and supply chains. Firstly, to what extent can international trade networks offer borrowing opportunities for firms that face significant barriers in traditional financing markets? Second, what are the potential impacts of financial globalization on firms’ borrowing and extension of trade credit?

The first chapter seeks to answer the first research question listed above: to what extentcan international trade networks offer borrowing opportunities for firms that face significant barriers in traditional financing markets? I show that firms use their trade flows to borrow …

Examination Of The Role Of Peer Effect On Board Diversity Among Us-Listed Companies, Liyang Wang

Olin Business School Graduate Student Theses and Dissertations

Traditionally, government mandates and investor activism influence board diversity in the United States. This study proposes peer effects as a third important determinant of board diversity. The results suggest that companies consider the progress made by their peers when deciding their own diversity. Interestingly, companies only match the performance of their peers and will spend comparable efforts in improving their diversity according to their peer's progress. Meanwhile, the peer effect has grown stronger in recent years, and companies are more likely to track the performance of mid-level peers. The results provide evidence on a new channel that can affect board …

The Effect Of Climate Change On Firm Level Costs With Focus On Mena Region, Farah Osama Saieed

Theses and Dissertations

This paper has a main objective of identifying the relationship between environmental factors and climate change on operating costs incurred by firms. This paper also attempts to compare the direction and intensity of the effect on different sectors in order to analyze whether climate change effect differs based on the nature of the business operations. Several papers have previously addressed the relationship between climate change factors ad profits. This literature will add to previous studies by observing the effect on the cost rather than the profits. In addition to providing results that minimize endogeneity, which is found in a large …

The Importance Of Teaching Personal Finance, Ryan Brewer

Honors College Theses

Personal finance is a foreign concept to many, yet it is an essential concept for all. This research project considers the impact of a personal finance course being taught in an organized, non-profit setting. A community church offers a finance course to their congregants on an annual basis that is designed to teach short- and long-term personal finance concepts to individuals and families to encourage adequate budgeting and investment practices. This specific project will evaluate the participants skillset and confidence in their financial goals before and after they are involved with the course. The data of study will be collected …

Payday Loans In The Mountain West, 2022, Issac Hernandez-Alcaraz, Vanessa M. Booth, Katie M. Gilbertson, Caitlin J. Saladino, William E. Brown Jr.

Economic Development & Workforce

This fact sheet examines data on payday loans, produced by the Pew Charitable Trusts. We examine payday lending costs, most common loan type, and the average annual percentage rate in the Mountain West (Arizona, Colorado, Nevada, New Mexico, and Utah), and include specific analysis on differences between the states by regulatory category.

Entrepreneurial Finance, Jackson Stewart

Honors Theses

The writings and research presented in this document are for a chapter of a textbook the focuses on entrepreneurship. The chapter focuses on many areas of entrepreneurship including: opportunities, networking, roles, economics, innovations, and history. The area that the potential writings focus on is entrepreneurial finance, or how one acquires capital to start their own business.

There are many ways to gain capital to start a business. These include a variety of investors that can give someone funds or loan that are given out by financial institutions. Investors are a great way to gain capital as investors will give the …

The Livingston Survey 2022, S. Anderson, B. Bovino, M. Brown, Thomas Lam, Et Al

Sim Kee Boon Institute for Financial Economics

The 16 participants in the December Livingston Survey weakened their forecasts for real GDP growth, compared with their projections in the June 2022 survey. The forecasters, who are surveyed by the Federal Reserve Bank of Philadelphia twice a year, expect 2.0 percent annualized growth in real GDP during the second half of 2022. They project 0.4 percent annualized growth over the first half of 2023. The forecasters predict that real GDP will continue to decline and reach -1.0 percent annualized growth in the second half of 2023.

The Financials Of Water: The Case Of Maynilad And Manila Water, Junette A. Perez, Janrick Razon

Center for Business Research and Development

What is water? It is defined in the English Oxford Living Dictionaries as a colorless, transparent, odorless liquid that forms the seas, lakes, rivers, and rain and is the basis of the fluids of living organisms. The paper uses financial ratio analysis to examine the financial performance of the two dominant water and wastewater companies in Metro Manila. It attempts to appreciate how water and wastewater companies perform financially as they confront the complexities of operating an essential utility, water, and wastewater.

Financial Statement Analysis Project: "The Big Simulation", Luna Y. Goldblatt, João Branco Chaves, Andrew M. Landman, Salmin B. Mwinjuma, Braden C. Vitelli

Open Educational Resources

This project uses real-world financial statements (for Best Buy Co. Inc. and Nvidia Corporation) and creates a role-playing game where students can choose to be one of 4 capital market participants: an innovator that designs a brand-new accounting system, a company that prepares its best version of financial statements, an investor that chooses its ideal portfolio stocks, and a forensic accountant that looks for evidence of earnings management. The project helps student learn to conduct financial statement analysis and appreciate the impact of these statements on company financial ratios and capital market performance.

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 …

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 …

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 …

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.

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 …

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 …