Business Commons^™

Analyzing The Efficiency Of Response To News Regarding Legalization Of Sports Wagering, Kevin Krieger, Justin L. Davis

International Conference on Gambling & Risk Taking

A landmark decision (Murphy v. NCAA) by the Supreme Court of the United States (SCOTUS) in 2018 ruled the federal government could not prohibit states from allowing sports wagering. While the implications of this decision are far reaching at both an industry and societal level, our study assesses the market response to information available throughout the various phases leading up to this decision by SCOTUS. The timeline of events preceding the SCOTUS decision is tracked, and stock performances of relevant, publicly traded firms are analyzed across three inflection points. Findings suggest the market failed to adequately acknowledge key …

Kelly Fraction Estimation For Multiple Correlated Bets, William Chin

International Conference on Gambling & Risk Taking

It is well-known that expected portfolio growth is maximized by maximizing

expected logarithmic utility. This investment criterion is known as Kelly betting.

It has many optimality properties but is considered to be risky. Blackjack

teams and other advantage gamblers practice a fraction of the Kelly optimal to

decrease risk. Some hedge fund managers are thought to practice according to

Kelly principles. We use a continuous multivariate Geometric Brownian motion

model and present an interval estimate for the historical fraction for a portfolio

of correlated bets, possibly including a risk-free asset. Historical data comes

from a range of sources and the …

Esg Rating And Ownership Structure In U.S. Firms, Keondo Park

CURCE Annual Undergraduate Conference

Given the rising interest in the relationship between Environmental, Social and Governance rating (ESG) and its components, this paper investigates the relationship between insider/institutional ownership structure, ESG ratings and financial performance of the firm, using 398 companies in U.S. 2017 obtained from Bloomberg. This paper entails cross-sectional analysis of ESG rating and its components in 10 sectors (Communication, Consumer Discretionary, Consumer Staples, Energy, Financial, Health Care, Industrials, Materials, Technology, and Utilities) and Return on Asset as a matrix for financial performance. The results suggest that ESG rating and performance of the firm is positively and significantly associated, except environmental score. …

Innovation: The Determinant Of Success In Software., Oksana Pawlush

CURCE Annual Undergraduate Conference

This study examines the determinants of performance in the U.S. software sector. The emergence of the software industry has been a world changing phenomenon and created a highly competitive market and a profitable investment field. Using panel regression analysis on a sample of 730 U.S. based software firms spanning the period from 1995 to 2017, this study finds that intangible assets and staff expenses have a statistically significant positive impact on the performance of software companies, as measured by their return on assets and return on equity, respectively.

Corporate Deleveraging And Financial Flexibility, Dan Dreher

CURCE Annual Undergraduate Conference

Most firms tend to deleverage from the historical peak market-leverage (ML) ratios to near-zero ML while also insisting on growing and maintaining high cash balances. Among 424 publicly traded non United States companies that are based in developed countries that are not financial nor industrial firms with five or more years post peak ML data, the median ML at the peak is

0.369 and 0.021 at the subsequent trough. The median cash / total assets ratio rises from 0.046 to

0.080, respectively during the same period. These findings support theories in which firms deleverage from peak ML to restore ample …

The Impact Of Decreasing Defined Benefit Plans On Employee Turnover, Melissa Claire Gregory

EURēCA: Exhibition of Undergraduate Research and Creative Achievement

The gradual adoption of defined contribution retirement plans has been a significant change in the occupational pension system in the United States over the last few decades. By transitioning from defined benefit plans to defined contribution plans, companies are shifting the financial risk associated with saving for retirement onto the employee. Though the shift of this financial risk is the primary concern for many, there are other side effects that this transition may bring about. The principal side effect observed in this research is the potential of defined contribution plans to dis-incentivize employee loyalty and contribute to increased employee turnover …

An Inquiry Into The Regulation Of Social Media Disclosure Policy And Its Impacts On Retail Investor Trading Activity, Sebastian Georg Soldner

EURēCA: Exhibition of Undergraduate Research and Creative Achievement

Finance theory has evolved rapidly over recent decades, as the growth of mass electronic data sets have allowed researchers to apply theory and craft it to results seen in the real world. Financial policy has seen intense debate all across the world, but one of the more silent agents of advancement has been online financial disclosure policy. Through the past few decades, we have seen the mutual growth between technology and policy, and how their interplay shapes the modern world we live in. Investor relations policy has never been at a greater point of allowing information dissemination than today, as …

Public Capital Budgeting In Germany, Natalia Ermasova

Research Days

According to the WEF Global Competitiveness Report (2017), Germany’s infrastructure ranked eighth in the world. The public investment in Germany has increased significantly in last thirty years. The government gross fixed capital formation increased by 37% in 2018 in comparison to 1990 (German Finance Ministry, 2018). The government gross fixed capital formation in relation to nominal GDP (the investment-to-GDP ratio) was 2.6% in 2018, compared with 1.7% in 2001.These outstanding public infrastructure system and investment profiles are likely a consequences of the country’s healthy public finances, robust institutional framework, structural reforms, and continuous public investments to boost competitiveness.

The goal …

Exploiting Wall Street: An Algorithmic Approach To Investing, Sterling Lemon

Student Research Symposium

Technology has advanced dramatically over the years, yet the old investment strategy of "buy and hold" has remained prevalent. While this strategy performed well historically, it serves as a stark contrast to modern investing which, by utilizing machine learning and advanced data analytics, is generating unprecedented returns This research project will demonstrate the strength behind algorithmic investing and how the investment strategy of "buy and hold" will become a thing of the past.

Iposs, Executive Compensation, And Firm Performance, Nancy Lopez Rodriguez

Kansas State University Undergraduate Research Conference

IPOs, Executive Compensation, and Firm Performance

Nancy Lopez-Rodriguez, Dr. Ansley Chua

Department of Finance

College of Business Administration

Most businesses in the United States have had the chance to become public through initial public offerings, or IPOs. IPOs allow for some of the stock of a private company to be sold to the public. These IPOs generally bring in more capital to a business so the question of whether there is a specific determinant in executive compensation between males and females during these IPOs and if this has an impact on firm performance arises. The purpose of this research is …