Digital Commons Network^™

The Threat Of Activist Intervention: A Determinant Of 8-K Disclosure For Industrial Companies, Audrey Guilloteau

CMC Senior Theses

In the face of an activist threat, management may be inclined to provide additional disclosure to discourage potential intervention. This paper constructs an empirical model to measure the threat of activism and voluntary disclosure using a data set of 92 industrials focused activist events from 2008 to 2019. Propensity score matching is used to identify close peer firms that experience a threat of activism at the time a campaign is announced. Results from a difference in differences analysis indicate that firms targeted by hedge fund activists provide additional disclosure in the two-year period following the campaign announcement, as seen through …

Misvaluing Effective Investors In Intangible Capital, Dustin Lind

CMC Senior Theses

Cohen et al. (2013) measure a firm’s ability at investing in knowledge capital, a type of intangible capital, through a model that captures how well a firm translates R&D intensity into future sales growth. Using this model, they show that an investment portfolio comprised of firms that have high R&D spending ability and high R&D intensity earn significant positive abnormal returns. I modify their model to capture a broader investment in intangible capital by replacing R&D intensity with SG&A intensity and substituting sales growth with gross profit growth. My measure of ability at investing in intangible capital has two main …

Securing The Overnight Rates: A Study Of Alternative Reference Rates In Illiquid Overnight Tri-Party Repo Markets, Michael Murphy

CMC Senior Theses

Since 2011, the London Interbank Offer Rate (LIBOR) has been on the way out for practitioners and researchers alike due to its manipulation in key bank quotes during the Great Financial Crisis (GFC). This paper intends to examine key rates being introduced as LIBOR substitutes, such as SOFR, BSBY, and Ameribor. Specific to its concern, the paper will back test these rates during times of illiquidity in both their respective markets and the broader financial markets to determine which rates will be able to sustain an abnormal drop in transaction volumes. Furthermore, this paper will try to determine whether a …

Containing Compounding Container Congestion, Curtis Salinger

CMC Senior Theses

The Covid-19 pandemic caused major disruptions throughout the container shipping supply chain. Professor Dongping Song of Liverpool University wrote a paper discussing the logistical vulnerabilities in the supply chain, including the issue of congestion in ports. This paper examines the Port of Los Angeles from 2018-2021 as it relates to Song’s paper to see how its operations were impacted during the Covid-19 timeframe. It is found that labor shortages, chassis shortages, and change in trade behavior each contributed to the congestion. Unfortunately, the implemented policies were insufficient to bolster the port against sustained challenges and congestion continues to worsen.

The Rising Power Of The Individual Investor: How Social Media Sentiments And User Activity Impact Stock Price Volatility And Trading Volume, Nandini Jayaram

CMC Senior Theses

This paper investigates the relationship between social media sentiments and user activity on the ability of online platforms like Robinhood, Reddit, and Twitter to drive volatility in stock returns and trading volume of shares. The research contributes to the existing literature by studying the potential power of social media communities to influence the stock market parameters. The dataset includes information for several stocks of daily Robinhood users, mentions in r/wallstreetbets, number of Twitter followers, as well as closing price and trading volume data. Using a fixed effects panel data model, the regressions yield statistically significant results that indicate higher WallStreetBets …

Source Credibility And Persuasive Communication: Effects On Social Media Influencers, Influencer Marketing, And Consumer Attitude Change, Isabelle Jia

CMC Senior Theses

Social psychology has long been researching how source credibility influences persuasive communication. With the world transitioning into a society interested in digital consumption, communication, and connection, this paper serves as a literature review of how different characteristics of source credibility can aid influencer credibility through various modes of social media messaging. The examination of three source credibility characteristics: 1) expertise, 2) trustworthiness, and 3) likability showcase how social media influencers can establish credibility with their consumers and build further connections with them. The results underline the importance of source credibility in influencing consumer attitude change and behavior over continued exposure …

Cross-Cultural Examination Of Vacation Policy On Employee Satisfaction And Happiness, Ketan D. Parekh

CMC Senior Theses

With the advent of technological advancement, entrepreneurship, and a higher emphasis on meritocracy, societies across the globe have experienced intense competition to outdo one another. This has pushed companies to place increased importance on worker productivity; large and small companies want to see their employees work harder, longer, and faster. With this increased demand for work, companies today are making sure they have suitable reward systems to ensure worker satisfaction and quality work production. However, what these reward systems look like and how they function contrast significantly across cultures, especially as it pertains to corporate leave policies. This thesis examines …

In Search Of Unicorns: An Analysis Of Japan's Startup Ecosystem, Kaito Komoriya

CMC Senior Theses

While Japan previously dominated global consumer markets in innovative electronic products, the economy has failed to live up to this performance since the burst of the asset price bubble in 1992 and the subsequent lost decades. In the modern economy, startup companies have become synonymous with innovation. Most of these companies have emerged from Silicon Valley, as well as other startup hubs around the globe. However, critics have criticized Japan for the limited number of notable startup companies from the country.

My thesis seeks to answer the two following questions: First, what is the current state of Japan’s startup ecosystem? …

The Transforming Importance Of Social Skills In The Labor Market In The 2010s, Andrew Bradjan

CMC Senior Theses

The growing importance of social skills has led to an increase in returns to wages and employment for workers specializing in social skill-intensive occupations. Between 2012 and 2019, social skill-intensive occupations grew by 3 percentage points as a share of the U.S. labor force. Math-intensive occupations also grew by a similar amount during this time. To analyze these patterns, I utilize a model of team production where workers trade tasks to exploit their comparative advantage. Social skills reduce coordination costs between workers and allow them to specialize and cooperate with other workers more effectively by trading tasks. This model predicts …

Greenpeace In Germany And The U.S.: A Case Study In Non-Profit Web Design, Maximilian J. Weirauch

CMC Senior Theses

This thesis draws on Geert Hofstede’s cultural dimensions model, connects it to basic principles of web design, and applies it to a website analysis of the global non-profit organization Greenpeace. This case study of cultural dimensions in web design utilizes Hofstede’s framework from 1974 throughout all its chapters and focuses on the cultural differences between Germany and the U.S. My hypothesis that successful marketing materials such as websites must communicate differently with their U.S.-American and German audiences is partially borne out. But it is important to note that Hofstede’s cultural dimensions model cannot fully account for certain intercultural dimensions of …

How A Supply Chain Stumble Changes A Company’S Policies And Progress 20 Years Later: A Case Study Of Gap Inc., Alexandra Futterman

CMC Senior Theses

Gap Inc. is the third-largest American retailer. Founded in 1969, Gap Inc. holds four brands, Gap, Banana Republic, Old Navy and Athleta. In the late 1990s and early 2000s Gap Inc. made headlines for child labor abuses along with many other large brands. After this negative attention, Gap Inc. began developing policies and practices to combat ethical supply chain issues. These policies included a Human Rights Policy, a Code of Vendor Conduct, working conditions standards, and even capacity building programs that boarded company reaches into communities they touch. In conjunction with the policies Gap Inc. has published several social responsibility …