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Articles 1 - 5 of 5
Full-Text Articles in Business
The Effect Of Changes In Us Money Supply On S&P 500 Returns During The Global Financial Crisis And Covid-19 Recession, Connor Cryan
The Effect Of Changes In Us Money Supply On S&P 500 Returns During The Global Financial Crisis And Covid-19 Recession, Connor Cryan
CMC Senior Theses
The goal of this paper is to perform a comparative analysis between the United States Federal Reserve’s response to the 2008 Global Financial Crisis and the COVID-19 recession, and determine how each response affected the United States stock market. I have found that during the 2008 Global Financial Crisis, money supply increases did not have a substantial impact on the US stock market, while factors such as market volatility and unemployment rate had highly significant negative effects on stock returns. During the COVID-19 recession, money supply changes did have an impact on stock returns, and had a positive relationship with …
Listed Private Equity Returns: The Forecasting Power Of Premiums And Discounts, Daniel Krasemann
Listed Private Equity Returns: The Forecasting Power Of Premiums And Discounts, Daniel Krasemann
CMC Senior Theses
In this paper, I assess the ability of premiums and discounts to predict future listed private equity returns. I hypothesize that the premiums and discounts of the net asset value of the listed private equity funds with monthly lags hold forecasting power. I use four distinct listed private equity indices and their respective NAV P/D values for my research. To ensure my analysis is realistic in scope, I incorporate a variety of macroeconomic variables that have been proven to influence listed private equity returns. I structure my time-period analysis around the 2008-09 financial crisis. I generally find that a two-month …
Executive Option Mix And Firm Litigation Risk, Andrew Cohen
Executive Option Mix And Firm Litigation Risk, Andrew Cohen
CMC Senior Theses
Compensating executives with stock options creates incentives for executives and aligns their goals with shareholders. When examining specific components of equity-based compensation, stock options have a larger incentive effect on executives compared to stock awards as options are priced as a function of stock volatility. Since the option incentive effect is more profound than the stock incentive effect, executives may take on more risk. The relationship between firm risk and litigation can be demonstrated by the pricing of directors’ and officers’ liability insurance, which protects them from the costs of litigation. The purpose of this study is to examine the …
Does Firm Payout Behavior Serve As A Signal For Future Profitability?, Michael Colangelo
Does Firm Payout Behavior Serve As A Signal For Future Profitability?, Michael Colangelo
CMC Senior Theses
In this paper I explore the potential signaling capability that payout behavior, in the forms of dividends and share repurchases, has on the profitability of a firm. To do so, I analyze the relationship that dividends paid, share repurchases, and total payout have with asset turnover, return on assets, and EBITDA margin across different time structures. Next, I aim to understand if there is a significant differential impact of negative payout growth compared to positive payout growth, on the growth of the same performance measures above. I found that an increase in share repurchases and total payout both lead to …
Doing Well While Doing Good? The Cost Of Responsible Investing, Elizabeth Iwicki
Doing Well While Doing Good? The Cost Of Responsible Investing, Elizabeth Iwicki
CMC Senior Theses
In this paper, I estimate the monthly alpha of highly rated ESG stocks, with the motivation to assess the effects of ESG investors on public equity markets. I hypothesize, consistent with the motivating theory of Heinkel et al. (2001), that the shift in investor preferences toward ESG-friendly investments leads to the underperformance of a broad ESG portfolio relative to a portfolio of comparable stocks. I test my hypothesis using the methodology of Hong and Kacperczyk (2009) and Wallace (2022), where I apply the methods to an ESG portfolio rather than a “sin” portfolio. Consistent with my hypothesis, I find that …