Business Commons^™

Two Essays On Investor Sentiment, Amin Amoulashkarian

Theses and Dissertations in Business Administration

The body of literature on investor sentiment underlines its impact on future stock returns, with general consensus that investor sentiments and future returns are negatively correlated (Baker and Wurgler, 2006; Brown and Cliff, 2004). This extends to the notion that a bullish investor would expect returns to be above average, while a bearish investor anticipates below-average returns (Brown and Cliff, 2004).

The first essay proposes a model to examine the influence of unexpected volatility of investor sentiment on the equity risk premium. Assumptions underpinning the model include risk-averse investors, homogeneous expectations regarding asset returns and price changes, and sentiment-influenced expectations …

Two Essays On Retail Trading, Qiqi Liang

Theses and Dissertations in Business Administration

Essay 1: Retail investors from the discount broker Robinhood swarm into stocks with pending earnings announcements and stay away from them immediately after the announcements. We study four competing explanations for this phenomenon: liquidity provision, informed trading, lottery preference, and attention-induced herding by noise traders. We find strong evidence that, immediately around earnings announcements, Robinhood investors’ behavior is primarily driven by attention-induced noise trading. Our results offer new insights into retail traders’ motivation for trading when they face heightened uncertainty from earnings announcements. Our study also goes beyond Barber et al.’s (2022) limited focus on the top 0.5% of the …

The Effect Of Sustainability Information Disclosure On The Cost Of Equity Capital: An Empirical Analysis Based On Gartner Top 50 Supply Chain Rankings, Lingyu Li, Xianrong Zheng, Shuxi Wang

Information Technology & Decision Sciences Faculty Publications

While disclosing financial information has been widely proved to reduce the financing cost of a company, the impact of non-financial information, such as sustainability information, disclosing on the financing cost of the company is still in debate. The goal of this paper is to explore the impact of disclosing sustainability-related information on the cost of equity for firms. The paper first introduces the concept of sustainability information disclosure, and then exhibits its benefit through exploring its impact on reducing a firm’s financing cost. It uses the Gartner supply chain top 50 rankings to construct the experiment environment to test for …

Two Essays In Real Estate Dynamics, Navid Safari

Theses and Dissertations in Business Administration

Real estate dynamics encompass a multifaceted interplay of various factors that shape the market. This dissertation presents two distinct essays that delve into critical aspects of real estate dynamics.

In the first essay, we investigate the influence of short-term rentals, specifically Airbnb activity, on neighboring house prices in Hampton Roads, Virginia. By employing robust measures such as active listings, reservations, and their cumulative impact over different periods, we uncover a positive association between prior Airbnb rental activity and housing sales prices. Moreover, we observe a spatial decay effect, where the localized impact diminishes with increasing geographic distance, particularly beyond 500 …

Two Essays On Industry Tournament Incentives, Sarah Almisher

Theses and Dissertations in Business Administration

A large body of literature has developed on the disparities in compensation among chief executive officers. Financial media has highlighted the fact that CEOs in the United States receive excessive pay and that the gap among executive compensation is soaring. High compensation creates incentives for CEOs to take higher risk in firm policies to land a more attractive position managing another firm and attaining higher pay which is considered the ultimate prize (Kale, Reis, and Venkateswaran 2009; Coles, Daniel, and Naveen 2006). This creates a tournament in the managerial labor market. We define this tournament as the pay differential between …

The Relationship Between Increased Wages And Nurse Satisfaction And Intent To Stay, Jean Andres

College of Health Sciences Posters

The recent COVID-19 pandemic contributed to a negative climate in healthcare and increased the workforce demands of nurses leading to decreased satisfaction and an unprecedented staffing crisis. Further compounding the problem, staffing agencies have offered fiscally lucrative contracts that enticed experienced nurses to leave permanent staff positions for external contract agency nursing.

Research Questions for this study are as follows:

• RQ1: What is the relationship between increased wages and nurse satisfaction?
• RQ2: What is the relationship between increased wages and intent to stay?
• RQ3: What is the relationship between demographic variables and nurse satisfaction?
• RQ4: What is the relationship demographic …

How Do Sustainability Stakeholders Seize Climate Risk Premia In The Private Cleantech Sector, Lingyu Li, Xianrong Zheng

Information Technology & Decision Sciences Faculty Publications

This paper explores the strategies and practices of capturing climate risk premia for venture capital (VC) fund managers and entrepreneurs in the private cleantech sector. It also examines the impact of the feed-in tariffs (FITs) policy on the management of cleantech investments. It is shown that a longer investment period, less investment capital in cleantech investment management strategies, and optimistic climate risk management practices will help investors to better capture climate risk premia. In fact, the FITs policy will give rise to VC fund managers and entrepreneurs having a positive view regarding the prospects of the cleantech sector, motivating them …

Accounting Reporting Complexity, Audit Engagement Partner Mandatory Rotation, And Audit Quality, Clement Chen, Zhenfeng Liu, Wenye Tang, Ling Tuo

Accounting Faculty Publications

This paper investigates the influence of a firm's accounting reporting complexity (ARC) on financial statement audit quality. We predict and find that there is a non‐linear relationship between a firm's ARC and audit quality. Specifically, a more complex accounting environment—measured by ARC—leads to higher quality audits, but this effect diminishes when ARC continues to increase. Further analyses reveal that the effect is more salient among client firms that do not purchase non‐audit services (NAS). We also examine whether ARC affects audit quality in the circumstance of mandatory audit partner rotation. Empirical results show a moderating effect of ARC on the …

Volatility Transmission: Evidence From U.K. Reit & Stock Market Implied Volatility, Mutale Katyoka, Simon Stevenson

Finance Faculty Publications

This paper investigates volatility transmission in the U.K. REIT market. It considers how REIT volatility is related to implied volatility in both the overall stock market as well as that derived from traded options on REIT stocks. The multivariate analysis utilizes both Constant Conditional Correlation (CCC) and Dynamic Conditional Correlation (DCC) GARCH specifications to analyse the interdependence of the data. The findings confirm the presence of volatility transmission across the implied volatility of U.K. REITs, the U.K. implied volatility index, and the U.K. REIT index. The study also applies the variance decomposition approach proposed by Diebold and Yilmaz to examine …

When Does Csr Payoff?, John A. Doukas, Rongyao Zhang

Finance Faculty Publications

We investigate whether firms engaging in corporate social responsibility (CSR) can preserve firm value during normal and unprecedented exogenous adverse events. Our evidence shows, in regular times, a negative relation between CSR engagement and firm value, but under adverse economic conditions, CSR protects firm value by decreasing firm risks. We also find that firms with high managerial attributes engage in greater CSR activities that benefit shareholders in both normal and aberrant financial times. Despite the controversy surrounding CSR, our evidence points out that CSR can be viewed as a set of intangible assets that can improve firm value across good …