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Corporate Finance

2017

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Full-Text Articles in Business

Currency Mismatch And Balance Sheet Effects Of Exchange Rate In Turkish Non-Financial Corporations, Serkan Demirkilic Nov 2017

Currency Mismatch And Balance Sheet Effects Of Exchange Rate In Turkish Non-Financial Corporations, Serkan Demirkilic

Doctoral Dissertations

Until the East Asian Crisis of 1990s, literature exclusively focused on the assumed expansionary competitiveness channel of deprecation in the domestic currency. The East Asian and Latin American Crisis of 1990s proved that depreciation in the domestic currency caused fragilities through the deterioration in firms’ balance sheet net- worth. Many have argued that excessive reliance on short-term debt and un-hedged foreign currency borrowings of firms were responsible of fragilities, and resulting poor performances of firms in these countries. The latter body of the literature introduced the contractionary balance sheet effects of foreign currency indebtedness through depreciation, and argued that if …


Essays On The El Niño Anomaly And Stock Return Predictability, Zhijun Yang Oct 2017

Essays On The El Niño Anomaly And Stock Return Predictability, Zhijun Yang

Finance Theses & Dissertations

This dissertation is to examine the impact of the El Niño phenomenon on the international stock market, both at the aggregate level and the portfolio level.

In first essay, I study the predictive relation between the El Niño phenomenon and international stock market aggregate returns. I find that the El Niño anomaly can predict all 14 countries’ stock returns. Specifically, the El Niño unconditional effect can predict stock return negatively in Japan, Malaysia, and South Africa, while the El Niño conditional on winter season can predict positively stock returns in 13 countries’ stock markets except for Japan. This conditional effect …


Essays On Capital Structure And Institutional Ownership, Yuan Feng Sep 2017

Essays On Capital Structure And Institutional Ownership, Yuan Feng

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters about how institutional ownership and trading affect capital structure.

Chapter 1

The literature documents that firms issue equity following periods of high stock return and such behavior only occurs in concert with high returns that coincide with large amounts of buying by new institutions. My findings suggest this is also associated with strong institutional selling, the opposite of what one would expect. This positive relationship is not driven by outflow-motivated selling, but rather by informed selling by short-term institutions.

Chapter 2

I document a strong negative relationship between institutional ownership and leverage. I find …


Credit Risk And Corporate Governance, Olivier Mugisho Mudekereza Aug 2017

Credit Risk And Corporate Governance, Olivier Mugisho Mudekereza

Theses and Dissertations

Is the executive’s compensation structure influenced by the credit rating assigned to his company? I analyze a panel of U.S. public firms using the random-effects and fixed-effects estimations. Compared to firms with lower credit risk, I find that firms facing higher probability of default provide more incentives for their CEOs.


Social Norms And Stock Trading, Asem Alhomaidi Aug 2017

Social Norms And Stock Trading, Asem Alhomaidi

University of New Orleans Theses and Dissertations

The dissertation consists of two essays. In the first essay we compare the performance of Islamic and conventional stock returns in Saudi Arabia in order to determine whether the Saudi market exhibits characteristics that are consistent with segmented markets and investor recognition effects. We sample the daily stock returns of all Saudi firms from September 2002 to 2015 and calculate important measures, including idiosyncratic volatility (Ang et al, 2006), market integration (Pukthuanthong and Roll, 2009), systematic turnover (Loughran and Schultz, 2005), and stock turnover and liquidity (Amihud, 2002). Integration tests report that Islamic stocks are more sensitive to changes in …


Dividend Policy In A Frontier Market And Sector Equity Traded Funds In The United States, Abdulrahman Alharbi Aug 2017

Dividend Policy In A Frontier Market And Sector Equity Traded Funds In The United States, Abdulrahman Alharbi

University of New Orleans Theses and Dissertations

In chapter 1, we examine the nature and scale of the relationship between returns on sector Equity Traded Funds (ETFs) and their volatility. We discuss the source and direction of the effect between returns and risk and whether behavioral biases are prominent among sector ETFs. The study has implications for financial sector practitioners and investors, as it provides more information about the risk in sector ETF and whether that risk differs from that of other investment instruments. To this end, we test three hypotheses based on the relevant literature on volatility and returns: the leverage effect hypothesis, feedback hypothesis, and …


Global Market Liquidity And Corporate Investments, Abdulrahman Alhassan Aug 2017

Global Market Liquidity And Corporate Investments, Abdulrahman Alhassan

University of New Orleans Theses and Dissertations

The dissertation consists of two essays. The first essay investigates how oil market factors impact on liquidity commonality in global equity markets. I identify two transmitting channels of the effect on liquidity commonality, namely oil price return and volatility. Using a sample of firms drawn from 50 countries spanning from Jan 1995 to Dec 2015, I find that both effects in oil explain the liquidity commonality in countries with higher integration to oil market. In addition, I show that oil volatility effect is more pronounced in net oil exporters compared to net oil importers after controlling for oil sensitivity. My …


Hedge Fund Performance And Derivative Hedging, Yongjia Li Aug 2017

Hedge Fund Performance And Derivative Hedging, Yongjia Li

Graduate Theses and Dissertations

This dissertation is comprised of three essays which focus on hedge fund performance and derivative hedging. The first essay uses ETF returns as proxies for tradable risk factors in hedge fund performance evaluation and identifies contemporaneously relevant risk factors from the entire universe of ETFs. The model provides more informative estimates of alpha and beta coefficients for predicting hedge fund out-of-sample performance compared with other widely used hedge fund factor models. Portfolios of top alpha hedge funds selected by the model generate statistically significant out-of-sample performance that is substantially higher compared with portfolios selected by other models. In addition, the …


Numerical Methods For Option Pricing Under The Two-Factor Models, Jiacheng Cai Aug 2017

Numerical Methods For Option Pricing Under The Two-Factor Models, Jiacheng Cai

UNLV Theses, Dissertations, Professional Papers, and Capstones

Pricing options under multi-factor models are challenging and important problems for financial applications. In particular, the closed form solutions are not available for the American options and some European options, and the correlations between factors increase the complexity and difficulty for the formulations and implements of the numerical methods.

In this dissertation, we first introduce a general transformation to decouple correlated stochastic processes governed by a system of stochastic differential equations. Then we apply the transformation to the popular two-factor models: the two-asset model, the stochastic volatility model, and the stochastic interest rate models. Based on our new formulations, we …


Social Network Impact On Corporate Performance And Governance, Jonathan Chew Hoe Khoo Jul 2017

Social Network Impact On Corporate Performance And Governance, Jonathan Chew Hoe Khoo

Dissertations and Theses Collection

Motivated by the centrality measures constructed in Larcker, So and Wang (2013), I affirm that board connectedness positively affect firm performance in Singapore, and even if we were to measure firm performance by Tobin's Q. The impact on firm performance persists over at least four years. Controlling for Corporate Governance using a proprietary database, the Singapore Corporate Governance Index, only the Eigenvector centrality under simple-weighted and hyperbolic-weighted projections survives the robustness test, suggesting that firstly, the local proxy of Corporate Governance based on OECD principles possibly controls for what is proxied by the Betweenness, Closeness and Degree centrality measures, and …


Essays On Capital Structure And Public Debt Markets, Viktoriya Staneva Jun 2017

Essays On Capital Structure And Public Debt Markets, Viktoriya Staneva

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters that examine capital structure determinants as well as the evolution of credit rating standards in the market for public debt.

Chapter 1 This chapter shows that firm fixed effects in panel leverage regressions act as a noisy proxy for managerial effects that drive persistence in leverage. Firms that do not change their CEO for prolonged periods of time are more likely to keep debt ratios within a narrow bandwidth and to display persistent differences in their time-series averages for up to 20 years. A CEO turnover is associated with considerable modifications to the financing …


Do Environmentally Friendly Companies Outperform Environmentally Unfriendly Companies In Financial Markets? An Analysis Of Financial Performance & Corporate Social Responsibility, Katherine E. Quinlan Jun 2017

Do Environmentally Friendly Companies Outperform Environmentally Unfriendly Companies In Financial Markets? An Analysis Of Financial Performance & Corporate Social Responsibility, Katherine E. Quinlan

Honors Theses

Over the last century, the ideology regarding the relationship between humans and the natural world has shifted from a period of major exploitation to a time of conservation and appreciation. Recent catastrophic events such as Hurricane Katrina in 2005, a result of sea level rise and wetland degradation, have really opened the public's eyes to the negative impacts that humans have on the environment, and what will come if we do not change our ways. Implementing sustainability practices has become a norm, if not a necessity, in the corporate world if companies wish to prosper. Using cross-sectional data from Newsweek's …


Essays On Corporate Finance, Sili Zhou Jun 2017

Essays On Corporate Finance, Sili Zhou

Dissertations and Theses Collection

Economic, Policy uncertainty under political opaqueness imposes great impact in the capital market. I construct ex ante cross-section of firm sensitivity to China Economic Policy Uncertainty (CEPU) index from Baker, Bloom and Davis (2013). This measure of policy sensitivity is significantly negatively predictive of a firm’s market value and Tobin’s Q. Cross sectional tests show that the negative effects are stronger in SOEs= for firms with higher agency problems, and for firms operating in market with lower degree of competition or market disciplining. The evidence suggests that high level of policy influence causes significant value destruction in the capital market.


Essays In Corporate Cash Holdings, Chenxi Liu Jun 2017

Essays In Corporate Cash Holdings, Chenxi Liu

Dissertations and Theses Collection

This dissertation addresses three topics in corporate cash holdings. The first paper provides a new determinant of cash holdings by examining the impact of earnings transparency on corporate cash holdings. Motivated by Barth et al. (2013), who show that firms with less earnings transparency tend to have higher cost of equity, this paper shows that the cross-section differences in earnings transparency cause variations in firm cash holdings because firms with less earnings transparency have more incentives to hold cash in order to avoid costly external financing. Using data of US firms from 1980 to 2013, it is found that earnings …


Essays On Investor Sentiment In Asset Pricing, Liya Chu Jun 2017

Essays On Investor Sentiment In Asset Pricing, Liya Chu

Dissertations and Theses Collection

The dissertation addresses three topics on investor sentiment in asset pricing.

The first essay investigates the impact of market sentiment on the recent debate on equity premium forecasting. Particularly, market sentiment may break the link between fundamental economic predictors and equity premium. We find that economic predictors tend to lose their power and various remedies proposed in recent studies, such as non-negativity constraints, no longer work during high sentiment periods. In contrast, economic predictors actually do have strong performances even without using any such remedies, as long as the sentiment stays low enough so as not to distort the link. …


Political Contributions And Firm Performance: Evidence From Lobbying And Campaign Donations, Omer Unsal May 2017

Political Contributions And Firm Performance: Evidence From Lobbying And Campaign Donations, Omer Unsal

University of New Orleans Theses and Dissertations

The following dissertation contains two distinct empirical essays which contribute to the overall field of Financial Economics. Chapter 1 titles as “Corporate Lobbying, CEO Political Ideology and Firm Performance”. We investigate the influence of CEO political orientation on corporate lobbying efforts. Specifically, we study whether CEO political ideology, in terms of manager-level campaign donations, determines the choice and amount of firm lobbying involvement and the impact of lobbying on firm value. We find a generous engagement in lobbying efforts by firms with Republican leaning-managers, which lobby a larger number of bills and have higher lobbying expenditures. However, the cost of …


Valuation And Value Drivers For Us Based Airlines, An Analysis Of An Industry, Ryan Caveney May 2017

Valuation And Value Drivers For Us Based Airlines, An Analysis Of An Industry, Ryan Caveney

Chancellor’s Honors Program Projects

No abstract provided.


Samsung Technical And Fundamental Analysis, Stephen Janeczko Apr 2017

Samsung Technical And Fundamental Analysis, Stephen Janeczko

Honors Program Contracts

In this report, you will find a summary of current events with Samsung, current events in the South Korean economy, financial statement analysis, ratio analysis for Samsung and competitors, and stock recommendations based on current trading history.


Public Company Health Insurers And Medical Loss Ratios: An Event Study Of Dates Associated With The Affordable Care Act, Rachelle Quinn Mar 2017

Public Company Health Insurers And Medical Loss Ratios: An Event Study Of Dates Associated With The Affordable Care Act, Rachelle Quinn

Doctor of Business Administration (DBA)

The Affordable Care Act (ACA) has proved to be a contentious regulatory and political topic. Although key features were established within the law the complexity of the new provisions and political opposition resulted in a series of federal and state governmental process changes, rule clarifications, and legal challenges. One component of the ACA is the introduction of a federal Medical Loss Ratio (MLR), which requires insurers to spend specified percentages of their premium revenue dollars on medical services and quality improvement actions. If thresholds are not met, insurers must refund premiums to their members, potentially removing millions of dollars from …


Essays In Corporate Responsibility And Finance, Mert Demir Feb 2017

Essays In Corporate Responsibility And Finance, Mert Demir

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters:

Chapter 1: The Effects of Corporate Social Performance and Social Norms on Market Valuation of Nonfinancial Disclosures Using a novel measure of the quality of corporate social responsibility (CSR) disclosures by global companies, this paper analyzes how CSR report quality affects firm value when mediating roles of social pressure and CSR performance are considered. I find that firms operating in socially controversial industries enjoy higher valuations when they issue high-quality CSR reports. I also find that for firms with poor CSR performance, higher-quality CSR disclosure is associated with a decline in firm value, while …


Gender Matters: Perceptions Of Corporate Leadership, Kylie A. Braegelmann Jan 2017

Gender Matters: Perceptions Of Corporate Leadership, Kylie A. Braegelmann

Electronic Theses and Dissertations

Women remain conspicuously underrepresented at the highest levels of corporate management; thus, it seems, gender matters. Gender bias in financial markets would imply an inefficient market, which necessarily constrains economic performance and social welfare more generally. To measure gender bias, I examine the cumulative abnormal returns around CEO announcements from 1992 through 2016 using a modified event study methodology. Existing event studies in this field are inconclusive as to whether or not such a bias exists. Therefore, this research contributes to the literature by extending the data, using a larger event window, and studying bias over time and firm size. …


Three Essays On Banking, Capital Market Frictions And Corporate Payout Policy, Hosein Nooriaan Jan 2017

Three Essays On Banking, Capital Market Frictions And Corporate Payout Policy, Hosein Nooriaan

Theses and Dissertations (Comprehensive)

The prevalence of financial market frictions is far from uncommon. Between 1970 and 2011, Laeven & Valencia (2012) identify 147 banking crises, along with 218 episodes of currency crises, and 66 episodes of sovereign debt default. Thus, understanding a firm’s behavior in the presence of financial crisis is an important issue for future financial research. My dissertation explores corporate payout and liquidity policy either during a financial market crisis, or in anticipation of a financial market crisis.

In the first essay, “Capital Market Friction and Corporate Payout Policy”, I focus on the role of supply of capital on corporate payout …


Marital Status Of Executives And Company Performance, Ilona Day Jan 2017

Marital Status Of Executives And Company Performance, Ilona Day

Honors Undergraduate Theses

This research paper explores differences in company performance levels, as measured by selected company fundamentals and annual return, with regard to the marital status of top executives, specifically the chief executive officer and the chief financial officer. It examines whether the differences in firm performance are determined by the marital status of the respective business executive. Groups of never married, married, and divorced executives are compared against each other to establish if and how the company performance changes between these groups. Summary statistics of the examined variables in conjunction with the results of the simple and multiple regression analyses indicate …


Short-Termism And Corporate Myopia: The Values Assigned By The Market To Short-Term And Long-Term Firms, Justin Alexander Jan 2017

Short-Termism And Corporate Myopia: The Values Assigned By The Market To Short-Term And Long-Term Firms, Justin Alexander

CMC Senior Theses

Short-termism and myopia on the part of corporate managers, analysts, and investors have created a business environment driven by the excessive focus on short-term results and the need to meet earnings targets at the expense of long-term value creation. These are accompanied by numerous consequences, including the potential for short-term-oriented firms, particularly in the U.S., to lag behind global long-term-oriented firms, as well as the potential for short-term mindsets in the corporate world to catalyze financial crises. In this paper, I demonstrate that the market generally assigns higher values to long-term firms rather than short-term ones. This is evidenced by …


Is Silence The Answer?, Gator Adams Jan 2017

Is Silence The Answer?, Gator Adams

CMC Senior Theses

This study examines the relationship between company management guidance, and ex-ante crash risk over the duration of 2008(Jan 2006-Dec 2009) financial crisis using the implied volatility skew, which is based upon ex-ante volatility implied by the pricing model developed by Black-Scholes (1973). The study finds that over the duration of this crisis period, management guidance decreases with a rise in ex-ante crash risk. Further, the study provides evidence on the relationship of management guidance and earnings volatility, and how that is affected by a firm's industry product concentration based on the Herfindahl-Hirschman Index (HHI) score.


Stock Returns And Industrial Production: A Sectoral Analysis, Griffin Lazarus Jan 2017

Stock Returns And Industrial Production: A Sectoral Analysis, Griffin Lazarus

CMC Senior Theses

This paper analyzes the relationship between stock returns and future industrial production growth rates from 1926-1940. It replicates the work of Fama (1990) and Schwert (1990) with the intent to see if the relationship continues to hold using sector data. Furthermore, this paper focuses on the 1926-1940 sample period to explore how the relationship is affected by the stock market crash of 1929. It is expected that the relation will be weak for the industry sectors experiencing strong growth prior to the crash. The results indicate that the relationship between stock returns and future industrial production growth rates persists on …


Australian Real Estate Stock Reactions To Firb Regulation Changes, Henry Wei Jan 2017

Australian Real Estate Stock Reactions To Firb Regulation Changes, Henry Wei

CMC Senior Theses

This study analyzes the share price reactions to real estate development and building/construction materials corporations in relation to FIRB rule changes. It appears companies as a whole were indifferent to the rule changes; however individual securities returns were wildly different. These findings suggest that the FIRB rule changes had a mixed effect on different corporations possibly based on their exposure to the Australian real estate market.


The Risk-Return Characteristics And Diversification Benefits Of Fine Wine Investment, Tania Salomon Jan 2017

The Risk-Return Characteristics And Diversification Benefits Of Fine Wine Investment, Tania Salomon

CMC Senior Theses

This thesis evaluates the risk-return characteristics and diversification benefits of fine wine investment. It compares the historical performance of wine to that of equity, fixed income, real estate, and commodities. I calculate the correlation, volatility, and expected returns of these assets to examine whether adding wine to a portfolio increases its risk-adjusted return. I do this through the Markowitz portfolio optimization technique. The findings suggest that wine has a low correlation with traditional assets, providing diversification benefits. My results also show that adding wine to a portfolio increases its risk-adjusted return only when there is an allocation constraint of 0 …


Helca Mining Company, Claire Dalman Jan 2017

Helca Mining Company, Claire Dalman

Undergraduate Theses, Professional Papers, and Capstone Artifacts

No abstract available.


Money Power In Politics, Jonathan Peterson Fisher Jan 2017

Money Power In Politics, Jonathan Peterson Fisher

Senior Projects Spring 2017

Money power in politics has been bolstered over the last thirty years thanks to Supreme Court decisions that hinder the Federal Election Commission’s ability to regulate financial influences on campaigns. Increases in corporate ability to impact campaigns through independent expenditures are principally against democratic values as they create a political climate of inequality favoring wealthy speakers. Additionally, money power’s influences on campaigns lead to impacting policy both directly through access to politicians and indirectly through the broad success of pro-contributor candidates. With an inability to govern over money power in elections comes a trend of anti-majoritarian policies that are inherently …