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Finance and Financial Management

Utah State University

2021

Articles 1 - 9 of 9

Full-Text Articles in Business

The Volatility Implications Of The Chinese Cryptocurrency Ban, Keaton Manwaring Dec 2021

The Volatility Implications Of The Chinese Cryptocurrency Ban, Keaton Manwaring

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

In this paper, I examine the effect of the May 18th, 2021 Chinese ban of cryptocurrency transactions on the overall volatility of the cryptocurrency market. To do this, I analyze, in both univariate and multivariate settings, range-based volatility in various event windows surrounding the event. I find clear economic and statistical change in volatility in the five days after the ban. In the ten-day period after the ban, there is a moderate economic change in volatility. In the forty-day period after the ban, there is little economic change in volatility. I conclude that the Chinese ban had a …

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A Reexamination Of The Illiquidity Premium In Cryptocurrencies, Wyatt Fitz Dec 2021

A Reexamination Of The Illiquidity Premium In Cryptocurrencies, Wyatt Fitz

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

In this study, I examine the illiquidity premium amongst the 372 most actively traded cryptocurrencies from September 2014 to May 2021. I find that the average returns on the most illiquid cryptocurrencies are larger than those on the most liquid cryptocurrencies. My results are robust to different weighting mechanisms for the market index and to various asset pricing model specifications. These results suggest that an investor might be able to go long a portfolio of illiquid cryptocurrencies while simultaneously shorting a portfolio of liquid cryptocurrencies to effectively generate a positive risk-adjusted return.

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Factors Associated With Financial Stressors, Financial Stress, And Financial Behaviors, Paula Andrea Lopez Alvarado Dec 2021

Factors Associated With Financial Stressors, Financial Stress, And Financial Behaviors, Paula Andrea Lopez Alvarado

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

As of the end of the first quarter of 2021, overall consumer debt reached $14.64 trillion. The more debt a family has, the higher the reported levels of financial stress the family reports. Using data from the 2018 National Financial Capability Study (NFCS), the purpose of this study was to examine the associations among financial stressors, financial stress, and positive and negative financial behaviors. The findings of this study suggested that Black individuals had the highest levels of financial stressors, financial stress, and negative and positive financial behaviors among four racial/ethnic groups. The findings also suggested that high financial stress …

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Association Between Financial Education, Affective And Cognitive Financial Knowledge, And Financial Behaviors, Lucy M. Delgadillo, Yoon Lee Aug 2021

Association Between Financial Education, Affective And Cognitive Financial Knowledge, And Financial Behaviors, Lucy M. Delgadillo, Yoon Lee

Applied Sciences, Technology and Education Faculty Publications

Using data from the 2018 National Financial Capability Study, this paper examined the relationship between financial education participation and affective and cognitive financial knowledge. Involvement in financial education yielded statistically significant associations between affective and cognitive domains. The results showed that participation in financial education was associated with both cognitive and affective financial knowledge as well as long-term financial behaviors. The findings supported the case for life-long learning of financial education for young adults, Blacks and Hispanics, and women. One important implication was the need to include both the affective and cognitive domains when teaching or researching financial education.

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Short Selling Around Reverse Stock Splits, Ryan Voges May 2021

Short Selling Around Reverse Stock Splits, Ryan Voges

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

I examine whether short selling increases around reverse stock splits using 2019 daily short selling data instead of bimonthly short interest data required by FINRA. In my difference-in-difference analysis, I find that average short selling increases significantly for firms that reverse split their stock, relative to matched control firms that do not, around the split dates. I also find that firms that reverse split their stock experience negative cumulative abnormal returns in the 20-day period after the reverse stock splits, particularly for those firms that are heavily shorted. These results are in agreeance with existent literature and suggest that short …

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The Effects Of Bank Lobbying And Elections Surprises, Gregory Logan Tarbet May 2021

The Effects Of Bank Lobbying And Elections Surprises, Gregory Logan Tarbet

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper examines the stock market reaction to banks that lobby relative to banks that did not lobby in the period around the November 9, 2016, U.S. presidential election. Using three different methods of event studies to calculate the cumulative average return, we find that lobbying in banks has a meaningful relationship to an abnormal increase in those firm’s stock prices. Then we attempt to control for both the systemic importance and size of these institutions by performing cross-sectional regressions that include matched size, and the systemic nature of the banks. The results suggest that a heavily regulated industry such …

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Retail Trading And Stock Volatility: The Case Of Robinhood, Cooper Jones May 2021

Retail Trading And Stock Volatility: The Case Of Robinhood, Cooper Jones

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

We examine the relation between Robinhood usership and stock market volatility. We show that daily fluctuations in Robinhood usership, which is used to proxy retail trading, significantly influence various measures of volatility. These results might suggest that Robinhood users contribute to noise trading as they are generally individuals trading on name recognition, media coverage, popularity, and familiarity of products, rather than on fundamental values. In our empirical approach, we find that the percentage increase in Robinhood usership Granger causes increases in daily stock volatility.

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Pharmaceutical Stock Prices Around Medicare Part D Expansion, Spencer Powell May 2021

Pharmaceutical Stock Prices Around Medicare Part D Expansion, Spencer Powell

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

On January 1, 2006 Medicare part D expanded, giving prescription coverage to many Americans. This event offers an interesting question regarding market efficiency, specifically because Medicare expansion was introduced into congress as far back as 1999. Because Medicare part D affected pharmaceutical drug coverage, this study focuses specifically on securities in the pharmaceutical industry. Following an efficient market hypothesis, we would expect to see significant abnormal returns in the post event window, anticipating the legislations effect on demand within the industry. Results showed significant abnormal returns in post-event window, but not in the pre-event window. The returns in the post-event …

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Corporate Venture Capital And Its Effects On Company Valuation - An Analysis Of The Additions Of Cvc Arms, Joshua Lyman May 2021

Corporate Venture Capital And Its Effects On Company Valuation - An Analysis Of The Additions Of Cvc Arms, Joshua Lyman

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper examines the stock price reaction to the addition of corporate venture capital arms to publicly traded companies. Referencing venture capital resources, corporate press release announcements of the addition of CVC arms were hand collected. I calculate the cumulative abnormal returns (CARs) surrounding press release announcement dates and find immediate stock market reactions, positively increasing stock prices compared to the overall market. I further perform placebo event studies at random dates and with direct competitors using the same announcement dates and find no significant results. These findings suggest that corporate venture capital increases company valuation and that financial markets …

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