Finance and Financial Management Commons^™

Financial Crises And Legislation, Peter Conti-Brown, Michael Ohlrogge

Journal of Financial Crises

Scholars frequently assert that financial legislation in the United States is primarily crisis driven. This “crisis-legislation hypothesis” is often cited as an explanation for various supposed shortcomings of US financial legislation, including that it is poorly conceived and inadequate to the problems it aims to address. Other scholars embrace the hypothesis, but from the perspective that crises are the needed impetus to prompt constructive reforms. Despite the prevalence of this hypothesis, however, its threshold assumption—that Congress passes major financial legislation only when financial crises arise—has never been analyzed empirically. This article provides that analysis. We first devise a new system …

Constructing Supportive Institutional System To Attract Social Investments To Fund Scientific Research, Ying Wang, Jialing Lyu, Yingming Li, Wei Xue

Bulletin of Chinese Academy of Sciences (Chinese Version)

Innovation always originates from scientific research (basic research and applied research). Investing in scientific research can create new products and new industries, and bring continuous and huge profit. It appeals to a wide range of social investment from market to fund scientific research in recent years. Such economical return, however, is often thwarted by the high risk and uncertainty of scientific research. The main obstacle to the social investments funding scientific research is analyzed in this paper and then some examples are presented as well. It illustrates that it is crucial for public policy to shorten the gap between the …

Green Banking Practices: The Impact Of Internet Banking On Bank Profitability In Egypt, Rania Pasha, Bassel Elbages

Business Administration

This is the first study to use a quantitative approach in examining the impact of internet banking implementation as a green banking practice on bank profitability in Egypt. Moreover, it is the first global study to differentiate the impact between basic and advanced transactional internet banking on bank profitability. A total of 20 banks operating in Egypt were sampled over two time periods: 2009–2018 and 2014–2018. Random effects generalized least squares (GLS) regression analysis and nonparametric analysis were used. Findings indicate that advanced transactional internet banking, as a green banking practice that contributes to the Egyptian sustainable development strategy (SDS), …

Responding To Financial Stress For Agricultural Producers And Couples, Jacob D. Gossner, Elizabeth B. Fauth, Tasha Howard

All Current Publications

Finances are a necessary component of running an agricultural production and with an uncertain economy, drought conditions, and rising costs, financial stress is increasingly common. Although financial stress is linked with poor individual and relationship outcomes, research suggests that there are effective ways to manage financial stress so that it does not reduce personal or relationship well-being. We review the body's response to stressors and how to respond rather than react to stress. We present specific strategies couples can use to navigate financial stress together. We include ideas for practical application for individuals seeking to improve the way they manage …

Disagreements And Proper Respect In Farm/Ranch Succession, Allan Vyhnalek

Cornhusker Economics

Adapted from "Does Disrespect Have a Place in Your Ag Legacy?" Volume 6, Issue 1, February 2021, Ag Legacy, by Caleb Carter, consultant to the Department of Agricultural and Applied Economics in the University of Wyoming College of Agriculture and Natural Resources.

Briefly covers disagreements and proper respect in farm/ranch succession.

An Analysis Of Selling Concessions, Reallowance Fees, And Price Changes In The Marketing Of Ipos, James C. Brau, Joseph J. Henry

The Journal of Entrepreneurial Finance

This paper provides an economic model resulting in two distinct marketing strategies available to investment bankers. First, we hypothesize that an increased selling effort by brokers is used most effectively when the investment clientele is uninformed. Second, adjusting the offer price of the issue is hypothesized to be employed primarily in large IPOs with a clientele of sophisticated investors, consistent with Shiller’s Impresario Hypothesis. Our pre-IPO bubble (1981-1996) empirical results yield evidence supporting both selling mechanisms. Under-demanded small IPO issues are ‘pushed’ by the brokers, while some under-demanded large IPO issues instead increase the offer price, with large first-day turnover …

Giving Shareholders Real Rights, Reducing Excessive Executive Pay, And Reducing One‐Size‐Fits‐All Regulation, Dan Palmon, Gary Kleinman, Ann F. Medinets

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper questions the effectiveness of shareholders’ protection from managers who may make choices contrary to the shareholders’ interests. We focus on “silent shareholders” who rarely vote because their goal is purely financial return with no intention or ability to participate in corporate strategies. Since they have virtually no influence on company policies, we argue that they should not be viewed as firm owners, but as consumers of managerial services. Therefore, we suggest the creation of a new class of “capital contract” stock that would grant silent shareholders an explicit legal contract that clearly specifies their rights and compensations in …

Fractile Graphical Analysis In Finance: A New Perspective With Applications, Anil K. Bera, Aurobindo Ghosh

Research Collection Lee Kong Chian School Of Business

Fractile Graphical Analysis (FGA) was proposed by Prasanta Chandra Mahalanobis in 1961 as a method for comparing two distributions at two different points (of time or space) controlling for the rank of a covariate through fractile groups. We use bootstrap techniques to formalize the heuristic method used by Mahalanobis for approximating the standard error of the dependent variable using fractile graphs from two independently selected “interpenetrating network of subsamples.” We highlight the potential and revisit this underutilized technique of FGA with a historical perspective. We explore a new non-parametric regression method called Fractile Regression where we condition on the ranks …

Trusting The Stock Market: Further Evidence From Ipos Around The World, Kiridaran Kanagaretnam, Kiat Bee Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of IPO firms from 36 countries and a country-level index for societal trust, we find strong evidence that societal trust is negatively associated with the degree of IPO underpricing. In cross-sectional analyses, we find that the effect of societal trust in reducing IPO underpricing is more pronounced when the information environment is less transparent, when the stock market environment is less robust, and when legal institutions are weaker, settings where the effect of trust is likely to be more salient. Our study contributes to and extends the literature by providing strong evidence that an informal institution …

Insider Trading Restrictions And Real Earnings Management: International Evidence, Jiwei Wang, Yuanto Kusnadi, Jiwei Wang, Yujie Wang

Research Collection School Of Accountancy

We examine the implications of insider trading restrictions on firms’ real activities earnings management in an international setting. Using a sample of 28 countries over the period from 1992 to 2007, we find evidence that is supportive of the substitution hypothesis, in that managers have incentives to substitute accruals earnings management for real activities earnings management. This effect is found to be more pronounced for firms in countries with more restrictive insider trading regulation. Our result is robust to alternative measures of real activities earnings man- agement and insider trading restrictions, alternative sub-samples, alternative regression specifi- cations, and controlling for …

Uncovering The Value Of Blockchain Applications In The World Of Finance, Qiang Cheng

Research Collection School Of Accountancy

This article discusses the benefits of using blockchain in the context of asset-backed security (ABS) issuance: reducing information asymmetry between issuers and investors, reducing yield spread of ABS, disciplining credit rating agencies, increasing the quality of underlying assets, and reducing issuers’ risk exposure. Such benefits should apply to other blockchain applications in the world of finance.

Secure Hierarchical Deterministic Wallet Supporting Stealth Address, Xin Yin, Zhen Liu, Guomin Yang, Guoxing Chen, Haojin Zhu

Research Collection School Of Computing and Information Systems

Over the past decade, cryptocurrency has been undergoing a rapid development. Digital wallet, as the tool to store and manage the cryptographic keys, is the primary entrance for the public to access cryptocurrency assets. Hierarchical Deterministic Wallet (HDW), proposed in Bitcoin Improvement Proposal 32 (BIP32), has attracted much attention and been widely used in the community, due to its virtues such as easy backup/recovery, convenient cold-address management, and supporting trust-less audits and applications in hierarchical organizations. While HDW allows the wallet owner to generate and manage his keys conveniently, Stealth Address (SA) allows a payer to generate fresh address (i.e., …

A Study On The Impact Of Technological Innovation Attributes On Listing Success Rate And Post-Listing Performance, Yijun Xu

Dissertations and Theses Collection (Open Access)

"Key and core technology" enterprises form the backbone of great powers. China’s STAR Market (technological innovation board) is committed to implementing strategies that will lead to technological innovation-driven sustainable development and strengthen the country by building a secure and independent industrial chain that can support the development of cutting-edge technology. From the outset, the STAR Market put forward clear requirements for "key and core technology" enterprises. The technological innovation attributes of the enterprises listed on the STAR Market are the most essential core characteristics, but a question arises as to how best to evaluate their technological innovation attributes. Are these …

Working Capital Management Of Manufacturing Companies In Bangladesh: What Factors Make Significant Impact?, Sumaiya Zaman

Journal of Global Business Insights

The paper aims to determine factors that make a significant impact on working capital management of a manufacturing company in Bangladesh. Of 221 service and manufacturing firms listed on the Dhaka Stock Exchange, 109 companies are chosen based on data availability for the five-year period 2014-2018. The study examines literature on working capital management and tests theory on manufacturing companies listed on the Dhaka Stock Exchange. Cash conversion cycle is used as a measurement of working capital efficiency. Financial ratios representing six aspects of company's financial performance are taken as explanatory variables. They represent company asset management, debt structure, growth, …

Corporate Actions And The Manipulation Of Retail Investors In China: An Analysis Of Stock Splits, Sheridan Titman, Chi Shen Wei, Bin Zhao

Research Collection Lee Kong Chian School Of Business

We identify a group of “suspicious” firms that use stock splits, perhaps along with other activities, to artificially inflate their share prices. Following the initiation of suspicious splits, share prices temporarily increase, and subsequently decline below their presplit levels. Using account level data from the Shanghai Stock Exchange, we find that small retail investors acquire shares in firms initiating suspicious splits, while more sophisticated investors accumulate positions before suspicious split announcements and sell in the postsplit period. We also find that insiders sell large blocks of shares and obtain loans using company stock as collateral around the initiation of suspicious …

A Study On The Mechanisms Of Shareholders’ Equity Adjustment In Bankruptcy Reorganization Of Listed Companies, Yongliang Zhang

Dissertations and Theses Collection (Open Access)

In recent years, amid cyclical macroeconomic fluctuations, national economic slowdown, economic restructuring, and over-expansion of some enterprises, a number of listed companies have faced serious debt and operational challenges, many of which are worthy of keeping afloat. From June 1, 2007 when the Enterprise Bankruptcy Law of the People’s Republic of China came into effect, up to the end of 2021, a total of 93 listed companies in China have gone through bankruptcy reorganization, one of the major means to save the listed companies in distress.

The bankruptcy reorganization of listed companies, by its nature, is a process of game …

Using Blockchain To Track Dod Funding And Auditing, Prithvi Prasanna

Theses and Dissertations

The Department of Defense (DoD) currently faces a significant problem when it comes to auditing and tracking financial transactions. The DoD has failed every audit since 2017 although it is gradually improving its auditable rating year after year. Concurrently, Blockchain is an emerging technology that has typically been used for cryptocurrencies but has slowly been adapted by private enterprises for their auditing and invoicing problems. This study investigates the value proposition of blockchain technology to improve DoD financial tracking and auditing. To test the hypothesis that blockchain is the optimal option for the DoD, this paper employs an industry blockchain …

Private Market Impact Investing Firms: Ownership Structure And Investment Style, Theodor Florian Cojoianu, Andreas G. F. Hoepner, Yanan Lin

Research Collection College of Integrative Studies

Impact investing and ESG investing are specific “ethical” investing types integrating social, environmental, and moral values with financial goals. Despite receiving heightened scholarly attention, the difference between impact and ESG investing is largely unexamined, and it is not clear how they differ from conventional investment. To explain the differences between ESG, impact, and conventional investing, this paper draws on a dataset of over 8000 private market investment (PMI) firms. It compares impact, ESG, and conventional investment across firm characteristics, investment preference, and ownership. Results show that impact investors are more likely to be owned by the government, focusing on agriculture, …

Overnight Returns, Daytime Reversals, And Future Stock Returns, Ferhat Akbas, Ekkehart Boehmer, Chao Jiang, Paul D. Koch

Research Collection Lee Kong Chian School Of Business

A higher frequency of positive overnight returns followed by negative trading day reversals during a month suggests a more intense daily tug of war between opposing investor clienteles, who are likely composed of noise traders overnight and arbitrageurs during the day. We show that a more intense daily tug of war predicts higher future returns in the cross section. Additional tests support the conclusion that, in a more intense tug of war, daytime arbitrageurs are more likely to discount the possibility that positive news arrives overnight and thus overcorrect the persistent upward overnight price pressure.

Essays In Asset Pricing, Muhammed Yonac

Dissertations, Theses, and Capstone Projects

This dissertation consists of three essays in asset pricing with the common theme of return predictability.

Chapter 1: This chapter introduces the motivation, results, and structure of the dissertation.

Chapter 2: I examine the relation between the social ties between firms' headquarters locations and co-movements between their fundamentals and stock returns. The evidence indicates that firms in the same industry with socially connected locations exhibit co-movement in fundamentals and stock returns that exceed those without socially connected locations. However, the stock returns reflect the location information with a lag. To exploit this lagged relationship, we form portfolios that buy (sell) …