Business Commons^™

Microcredit And Survival Microenterprises: The Role Of Market Structure, P.V. Viswanath

Faculty Working Papers

Poverty remains a pervasive problem all over the world, but the problem is worst in underdeveloped areas like Africa. While microfinance is supposed to address this problem through the promotion of viable businesses, it has not been very successful in helping survival microenterprises, i.e., businesses that the very poor with limited human capital have access to, in sectors with low barriers to entry and selling undifferentiated products. In this paper, I examine the role of market structure in mediating the impact of micro-lending to such survival enterprises. While there have been many evaluations of microfinance institutions (MFIs), there have been …

Pre-Management? How To Best Prepare: A Brief Overview For Potential Accounting, Finance, And Information Systems Students, Ammon Kou

Marriott Student Review

Many pre-management students are curious about the accounting, finance, and information systems majors offered at BYU. This article features an overview of each major and how best to prepare for those majors’ programs.

What Bitcoin Is, And How It Can Change Commerce, Jeffrey Bukhari

Capstones

The use of the digital currency Bitcoin has spiked dramatically over the last several years. Spurred by interest from investors and those excited about its commercial and banking potential, the value of the cryptocurrency has seen its value greatly increase since its beginning in 2009.

This project explains the underlying technology behind Bitcoin, how Bitcoin is and will change commerce, and what potential lies ahead for the digital currency.

A Study Of Undergraduate Personal Finance Courses At Public Universities In The Pacific Northwest Using An Action Research Approach, Melody Bell

CUP Ed.D. Dissertations

The purpose of this action research study was to examine undergraduate personal finance course instruction with a specific focus on student loan debt instruction at public universities in Oregon. This study focused on the central research question: What is the scope, sequence, and emphasis on the curriculum in undergraduate financial education courses and how could it be improved? Four personal finance professors from four public universities in Oregon participated in the study; with one of the universities serving as the focus. The first stage after the proposed study was to audit the personal finance course at the focus university. The …

The Market At Work, Patrick Flynn

Honors Projects

I believe my project will be the best project for me using both of my majors. It is a great way for me to take some of the knowledge I learned here at BGSU and apply it to a real life scenario I could pursue in future years. Investing at a young age is very important to help raise a lot of money for my retirement, something that I am learning right now in class. People coming out of college usually aren’t very concerned with investing at such a young age. I want to take advantage of this opportunity that …

The Retainer-Based Model Of Financial Planning, Savannah Stone

Mahurin Honors College Capstone Experience/Thesis Projects

Through attending my classes and working part-time at a financial planning firm, I have learned about many different types of compensation for financial planners, the most common being commissions and fees. Western Kentucky University allowed me to travel to San Diego in January of 2017 to attend the TD Ameritrade LINC 2017 conference, and it was there that I was introduced to the concept of a monthly retainer model of compensation. This grabbed my attention because it was a relatively new and unusual form of payment for financial planning services. Through curiosity, this topic encouraged my study of the past, …

Financial Synergies And Systemic Risk In The Organization Of Bank Afþliates, Elisa Luciano, Clas Wihlborg

Business Faculty Articles and Research

We analyze theoretically banks’ choice of organizational structures in branches, subsidiaries or stand-alone banks, in the presence of public bailouts and default costs. These structures are characterized by different arrangements for internal rescue of affiliates against default. The cost of debt and leverage are endogenous. For moderate bailout probabilities, subsidiary structures, wherein the two entities provide mutual internal rescue under limited liability, have the highest group value, but also the highest risk taking as measured by leverage and expected loss. We explore the effect of constraints on leverage and policy implications. The conflict of interests between regulators, who minimize systemic …

Are Disagreements Agreeable? Evidence From Information Aggregation, Dashan Huang, Jiangyuan Li, Liyao Wang

Research Collection Lee Kong Chian School Of Business

Most studies on disagreement focus on cross-sectional asset returns and well-recognized disagreement measures generally cannot predict the stock market with a horizon less than 12 months. This paper proposes three aggregate disagreement indexes by aggregating information across 20 disagreement measures. We show that disagreement measures collectively have a common component that has significant power in predicting the stock market both in- and out-of-sample. Consistent with the theory developed by Atmaz and Basak (2017), the indexes asymmetrically forecast the market with greater power in high sentiment periods. Moreover, the indexes negatively predict economic activities, and positively predict market volatility, illiquidity, and …

Proxy Access And Optimal Standardization In Corporate Governance: An Empirical Analysis, Reilly S. Steel

Fordham Journal of Corporate & Financial Law

According to the conventional wisdom, “one size does not fit all” in corporate governance. Firms are heterogeneous with respect to their governance needs, implying that the optimal corporate governance structure must also vary from firm to firm. This one-size-does-not-fit-all axiom has featured prominently in arguments against numerous corporate law regulatory initiatives, including the SEC’s failed Rule 14a-11—an attempt to impose mandatory, uniform “proxy access” on all public companies—which the D.C. Circuit struck down for inadequate cost–benefit analysis.

This Article presents an alternative theory as to the role of standardization in corporate governance—in which investors prefer standardized terms—and empirical …

Intraday Volatility And The Implementation Of A Closing Call Auction At Borsa Istanbul, A. Can Inci, Deniz Ozenbas

Department of Accounting and Finance Faculty Scholarship and Creative Works

The implementation of a closing call auction on market quality and volatility is examined at Borsa Istanbul in Turkey. Using 5- and 15-minute intervals, we document the accentuated volatility after the open and before the close during the morning and afternoon sessions. We show that the implementation of a closing call decreases volatility accentuation just prior to the market close, and increases market quality. We also document the evolution of intraday volatility patterns at Borsa Istanbul using the longest to date high frequency dataset available, and show that volatility has been increasing over time, especially at the close.

Foreign Capital Flows, Uncertainties Of Exchange Rates And Central Bank Independence: Implications For Emerging Economies, Hermann Sintim-Aboagye, Chandana Chakraborty, Serapio Byekwaso

Department of Accounting and Finance Faculty Scholarship and Creative Works

Utilizing time series data for a panel of 22 emerging countries and applying Granger causality tests, this paper extends the relationship between central bank independence (CBI) and uncertainties of inflation by including the phenomena of exchange rates and foreign capital flows. There are two specific objectives of this investigation. The first objective is to see whether uncertainty of inflation induces volatility of exchange rates, and vice versa, under differing degrees of CBI. The second objective is to explore whether the dynamics of the former relationship influence foreign capital flows in turn and, if so, whether the extent of CBI plays …

The Impact Of Culture On Hispanic Entrepreneurs As Mediated By Motivation, Challenge, And Success, Valerie V. Ballesteros

Theses & Dissertations

In the modern economic environment, demographic shifts in U.S. population resulting from changing immigration, changing economic policies and environments, and growing socioeconomic disparity, scholarly research examining the business behavior of specific groups and the impact of behavior on the broader marketplace is valuable and necessary. Hispanic entrepreneurs, when compared to both minority and non-minority business-owners, started and flourished in successful business ownership at a greater growth rate than any other group (Davila, Mora, & Zeitlin, 2014). Since the beginning of the 21st century, Hispanic entrepreneurs have become a measurable economic force. The cultural experience of the Hispanic entrepreneur is important …

Bank Lending Channel And Changing Credit Standards In The Residential Mortgage Market, Salman Tahsin

Graduate Theses and Dissertations

My dissertation examines the relationship between bank conditions and the residential mortgage market. The first essay investigates the effect of bank distress on the residential mortgage market during the 2007-09 financial crisis. We use the county-aggregated change in the ratio of jumbo to nonjumbo mortgage acceptance rate as an instrumental variable to control for endogeneity between bank distress and county economic conditions. The median decrease in the instrumental variable explains an additional 1.5 percentage point decline in county home prices and a 20 basis point rise in the county unemployment rate, which represent 15% and 5%, respectively, of their median …

Implementing The Heston Option Pricing Model In Object-Oriented Cython, Brandon Hardin

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

The 1973 Black-Scholes model, a revolutionary option pricing formula whose price is 'relatively close to observed prices, makes an assumption that the volatility is constant and thus, deterministic. This causes some inefficiencies and patterns in the pricing of options due to the model providing evidence of the volatility smile' of the volatility. Many scholars have suggested that the volatility should be modelled by a stochastic process and the (1993) Heston Model is one of many proposed solutions to remedy this problem. The Heston Model allows for the 'smile' by defining the volatility as a stochastic process. This thesis considers a …

2017 Q4 Private Capital Access Index Report, Craig R. Everett

Pepperdine Private Capital Access Report

The Pepperdine Private Capital Access Index (PCA) is a quarterly indicator produced by the Graziadio School of Business and Management at Pepperdine University, and with the support of Dun & Bradstreet. The index is designed to measure the demand for, activity, and health of the private capital markets. The purpose of the PCA Index is to gauge the demand of small and medium sized businesses for financing needs, the level of accessibility of private capital, and the transparency and efficiency of private financing markets.

Assessing The Current Efficiencies Of Farm Credit Of Western Arkansas, Hailey Paulsen

Agricultural Economics and Agribusiness Undergraduate Honors Theses

Farm Credit is a unique banking structure, as it is a cooperative which pays patronage dividends to its members. As such, the rates for loans (nominal interest rates) that Farm Credit offers can be slightly higher than larger commercial banks because the patronage payment can offset some, all or more of interest rate difference, which results in an effective rate. Farm Credit, like other globally evolving industries, must continuously look for ways to differentiate themselves to compete for new customers and retain existing ones. Thus, this study sets out to survey the members of Western Farm Credit of Arkansas to …

Application: Solving For A Local Companys Optimal Storage Strategy, Dakota Ferrin

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

This project used historical spot and futures price data of two fairly closely correlated commodities to simulate many possible spot and futures price paths that could have occurred over a given time frame. These simulated prices were then used to test various commodity storage strategies available through futures contracts. This paper explains how results, including values such as the mean terminal cumulative profit and the standard deviation of the mean terminal cumulative profits for each strategy, can be interpreted to help determine a local company’s optimal storage strategy.

This paper specifically provides a way for a local company to find …

Performance Of Statistical Arbitrage In Future Markets, Shijie Sheng

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

This paper is the replication of Alizadeh and Nomikos (2008) Performance of Statistical Arbitrage in Petroleum Futures Markets. Cited methodology from the original paper, this paper investigates the linkages between commodities in the future markets and apply trading strategy based on statistical analysis. The trading strategy is established based on cointegration relationships between commodities and execute trading rules to determine long-short positions. The robustness of trading result will be implemented by using stationary bootstrap approach. From the result, we can see the trading strategy based on cointegration relationship analysis is efficient to set up trading strategies in given datasets.

Eva: An Indicator Of Corporate Bankruptcy?, Amanda (Jinxian) Lu

Honors College Theses

Economic value added (EVA) analysis is one of the most common methods to evaluate company’s performance in terms of value creation, which involves ROIC (Return on Invested Capital) and WACC (Weighted Average Cost of Capital) as key drivers. Past studies evaluate the superiority of EVA over other measures of performance and relationship between EVA and stock returns. This paper analyzes the relationship between EVA and bankruptcy on 373 public traded companies in U.S. of which 178 companies filed for bankruptcy between the year of 2015 to October 2017. We present descriptive statistics, conduct univariae grouping tests and correlation between ROIC, …

Performance Evaluation And Risk Management: Time Series Bootstrap Analysis Of The Mutual Funds And Banking Sectors, Lifa Huang

Graduate Theses and Dissertations

The Financial Services Modernization Act of 1999, also known as the Gramm–Leach–Bliley Act (“Act”), repealed a regulatory proscription in the Glass–Steagall Act of 1933 that prohibited commercial bank holding companies (BHCs) from underwriting most bonds, equities, and insurance policies. After the passage of the Act in November 1999, BHCs that converted to financial holding companies (FHCs) were allowed to engage in securities underwriting without restrictions. The first paper examines whether the removal of barriers to securities underwriting had an adverse impact on the overall stability of the financial sector, and thereby, contributed indirectly to the financial crisis of 2008. The …

Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim

Research Collection Lee Kong Chian School Of Business

Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks' substitution of home purchase loans for refinance loans: The risk capacity channel through which banks with limited risk appetites prefer safer loans over riskier loans, and the operating capacity channel through which banks with limited operating capacities prefer applications that require less screening time. We find that following the recent financial crisis, banks facing these capacity constraints indeed …

Volume Information In Nikkei And Topix Futures Transactions, Chyng Wen Tee, Christopher Ting

Research Collection Lee Kong Chian School Of Business

According to the Kyle (1985) model of informed trading, information in trade size is likely to effect a permanent price impact. However, two prominent structural models in the literature do not include trade size in their framework. In this paper, we present a nesting relationship of major structural models and formulate a generalized model that includes all trade variables. A new measure to quantify the amount of information in the order flow is proposed. Our empirical analysis shows that it is indeed the "surprise" in trade size that contributes significantly in reflecting the price change of Nikkei and TOPIX futures.

Developing And Assessing The Drivers Of Usage Of Computer-Assisted-Audit-Techniques (Caats) And The Factors That Impact Audit Quality Perceptions In Government Internal Audit, Ashraf Alhabsi

Doctoral

This research aims to develop two models, the first of which is capable of predicting the internal auditor’s intention to adopt audit technologies, and second of which is to predict the factors that impact on the internal auditor’s perception of internal audit quality in the context of public sector auditing in Oman. The models proposed by this research are developed from existing research on technology adoption in general, as well as research on technology adoption specific to the internal audit context (Curtis & Payne, 2014; Dowling & Leech, 2014; Mahzan & Lymer, 2014). Given that Oman is only in the …

Financial Engineering: Negative Interest Rate Policy And Quantitative Easing As Forms Of Alternative Monetary Policy, Calli A. Farrell

Honors Theses

No abstract provided.

The Money Mentors Program: Increasing Financial Literacy In Utah Youths, Zurishaddai A. Garcia, Dave Francis, Amanda Christensen, Stacey S. Macarthur, Margie Memmott, Paul A. Hill

All Current Publications

Utah 4-H and Fidelity Investments collaborated on a program for increasing the financial literacy of teens and children. The collaboration resulted in positive impacts for both Extension and Utah youths. Extension benefited through partnership with a corporation that provided content expertise, volunteers, and funding for a financial literacy program. Youths benefited from improved financial literacy. A Teens Reaching Youth (TRY) team approach was used for the training of 81 teens, who then taught 530 youths statewide. The curriculum addressed research-based financial concepts through activities and technologies that were interactive, appealing, and engaging. The program development and implementation processes may serve …

Are Inflation Measures Really Measuring Inflation?, Peter L. D'Antonio Ph.D.

Faculty Works: Business (1973-2022)

This paper challenges the underlying assumptions that form the basis for current US inflation measurement. Standard inflation models implicitly treat all divergences of sector price changes as temporary noise. Based on this logic, the only force driving price level changes over time must be the underlying inflation rate. This paper proposes an alternative model that allows for persistent sector-specific price changes, and then conducts statistical tests to determine if sector price changes represent significant alternate forces driving measured inflation. The tests show that several sectoral forces are distorting measured inflation, indicating that traditional inflation gauges are not measuring underlying inflation …

Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim

Research Collection Lee Kong Chian School Of Business

Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks' substitution of home purchase loans for refinance loans: The risk capacity channel through which banks with limited risk appetites prefer safer loans over riskier loans, and the operating capacity channel through which banks with limited operating capacities prefer applications that require less screening time. We find that following the recent financial crisis, banks facing these capacity constraints indeed …

The Equity-Financing Channel, The Catering Channel, And Corporate Investment: International Evidence, Yuanto Kusnadi, John K. C. Wei

Research Collection School Of Accountancy

We examine how stock market mispricing affects corporate investment in an internationalsetting. We find that investment is more sensitive to stock prices for equity-dependent firms thanfor non-equity-dependent firms in our international sample. Investment is also more sensitive tostock prices for firms located in countries with more developed capital markets (i.e., lower costsof raising capital), higher share turnover (i.e., shorter shareholder horizons), and higher R&Dintensity (i.e., more opaque assets). More importantly, the positive relation between equitydependence and the sensitivity of investment to stock prices is more pronounced for firmslocated in these same countries. These findings are consistent with the equity-financinghypothesis and …

Hedge Fund Franchises, William Fung, David Hsieh, Narayan Y. Naik, Melvyn Teo

Research Collection Lee Kong Chian School Of Business

Duplicate, see https://ink.library.smu.edu.sg/lkcsb_research/5964/. We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. Motivated by the aforementioned spillover effects, first funds outperform follow-on funds, after adjusting for risk. The multiple-product growth strategy hurts investors while benefiting hedge fund firms; multiple-product firms underperform single-product firms but harvest greater fee revenues. Investors respond to this growth strategy by redeeming from first funds of firms with follow-on funds that do poorly. Moreover, skilled investors allocate …

Factors Driving Financial Inclusion And Financial Performance In Fintech New Ventures: An Empirical Study, Miguel Angel Soriano

Dissertations and Theses Collection (Open Access)

Financial inclusion, or providing access to and active use of affordable financial products to the 2 billion unbanked adults globally, can facilitate individual prosperity, reduce poverty and increase economic development. Digital technologies such as mobile phones, cloud computing, data analytics and blockchain are one of the biggest enablers of financial inclusion by making it economically possible to serve these individuals. This dissertation examined the role of digital technologies in financial inclusion from the perspective of new financial technology (Fintech) ventures serving the unbanked and underbanked. Supported by strategy management theories, I identified key factors that impact the success of these …