Business Commons^™

Analisis Pengaruh Risiko Kredit, Risiko Likuiditas, Serta Risiko Operasional Terhadap Kinerja Perbankan: Studi Kasus Pada Bank Umum Konvensional Yang Terdaftar Di Bursa Efek Indonesia Periode 2016-2020, Jihan Yunike, Imo Gandakusuma

Jurnal Manajemen dan Usahawan Indonesia

Researchers conducted research on banks in Indonesia to assess the effect of credit risk, liquidity risk, and operational risk on banking financial performance. Data is obtained from the IDX website and banks from 38 conventional commercial banks that met the criteria for the 2016-2020 period. Researchers used the fixed-effect model (FEM) to analyze the results of this study.The results of this study indicate that credit and operational risks have a significant effect on the company's financial performance. On the other hand, liquidity risk has an insignificant effect on the company's financial performance. The results can be used by the company's …

Pengaruh Nilai Esg Dengan Kebutuhan Modal Kerja: Analisis Perusahaan Listing Indonesia Periode 2015-2020, Vani Rahmita, Eko Rizkianto, Hendro Prabowo

Jurnal Manajemen dan Usahawan Indonesia

This study aims to analyze the effect of ESG score and its pillars (environmental, social, and governance score), as a proxy of sustainable companies, on working capital requirements (WCR) and cash conversion cycle (CCC) of Indonesian listing companies for the period 2015-2020. The ESG and pillar scores are obtained from the Thomson Reuters Refinitiv Eikon terminal. The research covers 29 non-financial listed companies in Indonesia in the six years with a total of 174 observations through the purposive sampling technique. This study finds that on average non-financial companies in Indonesia use a conservative working capital strategy which makes the company's …

Peran Pendidikan Ceo, Keberagaman Gender , Dan Dimensi Keuangan Perusahaan Terhadap Pengungkapan Csr Sektor Manufaktur Di Indonesia, Fanindya Dwimartha, Muthia Pramesti, Liyu Adhi Kasari Sulung, Imo Gandakusuma

Jurnal Manajemen dan Usahawan Indonesia

This study aims to analyze the effect CEO education, board gender diversity, and firm’s financial dimension on CSR disclosure. The sample used in study includes 22 publicly listed manufacturing firms in the Indonesia Stock Exchange that disclosed their ESG scores during the period of 2015 until 2019. This research used panel data which was later run using fixed effects model data. The result explains that both firm size and CEO education positively impact CSR disclosure at manufacturing firms and the impact is significant.

Optimizing Repayment Strategies For Egyptian Construction Companies With Multiple Loans, Moataz Elkady

Theses and Dissertations

Optimizing Repayment Strategies for Egyptian Construction Companies with Multiple Loans is of utmost importance to efficiently allocate monthly income for loan repayment. The conventional practice of paying the minimum balance due each month leads to increased interest charges and prolonged repayment periods. In response, this research proposes a model for multiple loan repayment that considers the computational complexity involved.

The model is built on the foundation of mixed integer linear programming and aims to establish an optimal repayment schedule by minimizing the total cash required to repay the loans, prioritizing the repayment of loans before personal expenses. The implementation of …

A Path To Conventional Equity For Cdfis: Cdfi Equity Project Report, Charles Tansey, Michael E. Swack

Carsey Publications

In this report designed to serve the Community Development Financial Institution (CDFI) sector, authors Charles Tansey and Michael Swack describe a step-by-step blueprint for accessing private equity in Stage One and conventional equity in the public market in Stage Two through participating CDFIs. In addition to providing a blueprint, the report documents the affirmation that a portion of CDFI equity can be—and should be—self-sustaining. It also demonstrates how this equity can be widely accessible by the broader CDFI industry over time.

Islamic Banks' Decomposed Financing And Industrial Output Growth In Pakistan, Sadia Yasmin, Mohammad Ayaz Dr

Business Review

Abstract

Finance is considered as "the lifeblood of an economy" and imperative to a country's growth and stability. However, this perception has been called into two propositions, "More finance more growth "and "Does too much finance harm economic growth”? Existing literature considered only a single indicator i.e. total financing, assuming all financing has the same effect on growth. Furthermore, these studies also overlooked the nonlinear dynamics of Islamic decomposed financing and sectoral growth. As the composition of every economic sector is different, therefore financing can impact differently. This gap is covered in this study by decomposing Islamic financing into Islamic …

The Administrative, Financial, And Technological Requirements For The Success Of The Financial Technology Industry In The Arab Countries, Yusuf Abu Fara, Sharif Abukarsh

Journal of the Arab American University مجلة الجامعة العربية الامريكية للبحوث

This study aimed at identifying the requirements of the success of financial technology industry in the Arab countries. The use of technology in financial transactions began a long time ago; for example, the ATM technology has been in services since 1967. Recently, the use of technology has expanded significantly in many financial areas. In recent years (especially since 2014), the term financial technology has spread as a new term in the world of finance and business. The financial technology has significant and clear effects on the methods of providing financial services and payment processes, virtual currencies and others. It also …

Assessing The Effect Of Fintech Adoption On Country's Productivity, Mai Metwally

Theses and Dissertations

The relationship between total factor productivity of countries, for both low-income and high-income countries, and Fintech adoption will be examined in this paper. Also, a background on Fintech history will be discussed and explored briefly along with Fintech future risks and opportunities. Starting off with the importance of TFP, it is also known to be "Solow residual" (named after American Economist "Robert Solow"). TFP shows and examines the performance along with efficiency of the entity or country. It shows how well and efficient the firm or country in transforming its inputs to the desired outputs. Moreover, it is the ratio …

Fintech Companies Valuation Using Real Options: Fawry Empirical Study, Yassmen Abou Elwafa

Theses and Dissertations

This thesis presents an improved valuation approach for Fintech companies, which are high-growth technology-based firms. We first identify the shortcomings of traditional valuation methods in valuing high-growth technology firms. Then, an alternative valuation technique based on real options theory is discussed to value fintech companies. The relevance and validity of using real options valuation to value fintech firms are also discussed. We propose a new flexible framework for valuing fintech companies by extending the Schwartz-Moon (2001) model to include various types of real options. To validate the practical application of the Extended Schwartz-Moon model, we conduct an empirical study to …

An On-Ramp To Financial Inclusion: Measuring The Impact Of Mercy Corps' Community Investment Trust Program On Minority Investors, Lexi Yokote

University Honors Theses

Mercy Corps' Community Investment Trust (CIT) was launched in 2017 as a low-risk real estate investment and education initiative. The program is now working to replicate this in cities across the United States. However, it has not been able to collect much feedback from existing investors about their experiences and needs. This paper will use primary and secondary research in the form of a literature review and original surveys to collect information about investor demographics, attitudes toward the CIT and investing, risk perceptions, and future investment plans. The results show that U.S.-born versus foreign-born status, ethnicity, and gender affect the …

Female Ceos And Investment Efficiency In The Vietnamese Market, Jun Myung Song, Chune Young Chung

Sim Kee Boon Institute for Financial Economics

This paper proposes female CEOs’ overconfidence and risky behavior stem from gender stereotype threats. With two subsamples in Vietnam—firms in the Northern and Southern regions–we empirically show that female CEOs in the North, where there is less gender stereotype, tend to overinvest relative to male CEOs. However, in the South, they are indifferent. Additional analysis reinforces the main finding that female CEOs from the North tend to take more risks even when dealing with market volatility and uncertainty (e.g., the COVID-19 pandemic). Such risky behaviors of female CEOs in the North do not deteriorate firm value but instead, possibly improve …

Air Pollution, Regulations On Emission And Firms' Social Responsibility, Jun Myung Song

Sim Kee Boon Institute for Financial Economics

This paper examines whether firms adjust their strategy in emission when air pollution is severe. Considering high PM 2.5 as severe air pollution across 65 countries, I show that firms from countries with severe air pollution have low emission score, suggesting that they put less effort in reducing emission. This is because if they improve emission strategy, firm performance deteriorates. However, such relationship disappears when the government’s environmental stringency is strong, suggesting that government’s intervention is crucial for sustainable environment. This paper concludes with analysis on the factors which can mediate the negative impact of air pollution on firms’ emission …

Philippine Stock Market: What Value Does The Selected Market Information Hold For Filipino Investors?, Edna Delantar

Center for Business Research and Development

There is a high level of information efficiency in the stock market. An efficient market adjusts security prices quickly and accurately to new information, without having to digest it for very long. Often, the pace of adjustment is remarkably rapid. This study focuses on the importance of market information as assessed by 250 retail investors in the Philippine Stock Market. The participants have active accounts and engaged in active trading with selected stock brokers and are at least 18 years old and above (or the age of eligibility to open an account with a broker). The gender of the respondents …

An Empirical Research On The Financial Distress Risk In The Garden And Construction Industry, Jianlin Guan

Dissertations and Theses Collection (Open Access)

In recent years, the garden and construction industry has faced significant financial distressdue to the downward pressure on the macro economy. This financial distress not onlyposesrisks to the financial stability and management of enterprises but also has far-reachingimpactson society.

This paper utilizes various analytical methods such as case analysis, empirical analysis, andevent analysis to derive the following conclusions:(1)The participation of garden constructionindustry enterprises in public-private partnership (PPP) projects leads to increased financial distress.(2)The higher the debt ratio of the local government where listed gardenandconstruction enterprises are located, the greater the financial distress theyexperience.(3)Enterprises in the garden and construction industry, whose …

The Response Of Money Market Funds To The Covid-19 Pandemic, Kyle D. Allen, Ahmed Baig, Drew B. Winters

Finance Faculty Publications and Presentations

The Covid-19 Pandemic has increased the attention paid to money market funds. Using Covid-19 cases and a measure of lockdowns, shutdowns, etc., we analyze if money market fund investors and managers responded to the intensity of the pandemic. We ask whether or not the Federal Reserve implementation of the Money Market Mutual Fund Liquidity Facility (MMLF) had an effect on market participant behavior. We find that institutional prime investors responded significantly to the MMLF. Fund managers responded to the intensity of the pandemic but largely ignored the reduction in uncertainty created by the implementation of the MMLF.

Could Investors’ Attention In News Hunting Affect The International Capital Market?, Sukmawati Sukamulja, Stefanny Thedora

The Indonesian Capital Market Review

The study of investors’ attention while making decisions in the capital market focuses on some spe- cific keyword searches in the leading search engine platform, namely Google Search Volume Index. This is because investors need to gather related information for the efficiency and effectiveness of their decision-making process. This study aims to provide empirical evidence regarding the effect of investors’ attention on the rate of return, trading activity, and volatility. It offers a new broad perspec- tive on the international capital market, which is projected as the key player in the global economy in the upcoming years, representing both developing …

Electronic Money And Economic Growth: What Implications For E-Naira Policy Adoption In Nigeria?, Jonathan Oniore, Obukohwo Oba Efayena

Bullion

This study examines the potential economic implications of the e-Naira policy in Nigeria. Employing the autoregressive distributed lagged model in evaluating quarterly data from 2009 to 2020, the study found that there is a long-run relationship between electronic transactions and economic growth. This implies that in the long-run, adopting the e-Naira policy will significantly impact economic growth. The study suggests that there is urgent need to adopt both technological and monetary apparatus fo ensure the e-Naira policy efficacy in Nigeria.

Advising Communication In Finance, Jordan J. Schumann

Communication Studies

Communication is an important factor in relationships. When it comes to financial advising and the advisors’ relationship with their clients, it is no different. However, the driving factor of what makes a client choose one advisor over another remains in question. As such a question builds: what does an advisor do to maintain a client and promote gaining new ones? This study examines the experiences current advisors have had in their respective careers. To examine this topic, communication theories (Social Cognitive Theory, Source Credibility Theory, and Uncertainty Reduction Theory) are called upon to inform the outcomes of advisors' experiences. The …

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 …

Cryptocurrency Investing: Millennial Decision Making, Angelin S. Kiruba Dr, Bharathi R Dr, Madhumithaa N Dr

The Indonesian Capital Market Review

Investor perceptions of various investment modes can differ based on factors such as experience, earnings, risk tolerance, liquidity preferences, and so on. Understanding the viewpoints of young in- vestors is essential when assessing cryptocurrency investments. This study evaluates the investment decisions of 103 young investors in the cryptocurrency market, using regression and factor analysis for data analysis. The findings indicate that investors have a fundamental understanding of the risks associated with cryptocurrency investments. However, there is a notable need for enhancing the ef- fective management of these risks. The study affirms the reliability of the measures used, accurately capturing the …

Hfts And Dealer Banks: Liquidity And Price Discovery In Fx Trading, Wenqian Huang, Peter O'Neill, Angelo Ranaldo, Shihao Yu

Research Collection Lee Kong Chian School Of Business

In this paper, we characterise the liquidity provision and price discovery roles of dealers and HFTs in the FX spot market during the sample period between 2012 and 2015. We find that they have different responses to adverse market conditions: HFT liquidity provision is less sensitive to spikes in market-wide volatility, while dealer bank liquidity is more robust ahead of scheduled macroeconomic news announcements when adverse selection risk is high. In periods of extreme levels of volatility, such as the `Swiss De-peg' event in our sample, HFTs appear to withdraw almost all liquidity while dealers remain. In normal times, we …

Capital Structure Decision And Separating Risk From Optionality, Yang Xu

Dissertations, Theses, and Capstone Projects

Chapter 1 This paper treats a firm’s capital structure decision as an optimal risk-taking decision based on its risk-return tradeoff prospect. The paper proposes to construct mean-variance ratio forecasts based on return-on-asset histories and shows that the forecasts can explain a large proportion of the cross-sectional company leverage variation. The leverage predicted by the mean-variance ratio forecast maximizes a firm’s relative value. Once the mean-variance ratio forecast is accounted for, contributions from other commonly identified variables become small. Furthermore, some of the additional explained variations do not constitute value-maximizing leverage target variations, but rather variations away from the target.

Chapter …

Essays On Tax Impacts On Corporate Finance, Corporate Governance And Regional Disparity, Mei Li

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters that cover topics on tax impacts on corporate finance, regional disparity and corporate governance.

Chapter 1 - How Do Net Operating Loss Carryforwards Affect Tax Impact on Corporate Capital Structure? This paper examines the impact of net operating loss (NOL) carryforwards on the tax implications of corporate capital structure. Leveraging the Tax Cuts and Jobs Act of 2017 (TCJA), the largest tax reform in four decades, this paper investigates the effect of NOL carryforwards on firms' sensitivity to tax reforms. As NOL carryforwards have become increasingly significant since 2000, but not widely researched due …

Essays On Stakeholder Economy, Hanyu Zhang

Dissertations and Theses Collection (Open Access)

The dissertation consists of two chapters on stakeholder economy. It looks at how firms interact with the stakeholders, including not only investors, employees, customers, governments, but also the broader community and society at large, and examines how such interactions affect corporate behavior in China and the global setting. The first chapter studies how societal culture shapes firm behavior and growth by analyzing the trade-off of relying on trust in acquiring stakeholder resources, and testing with data on the number of historic Confucian schools surrounding a current firm’s location in China. Companies more exposed to Confucianism have greater social contributions and …

Esg Ratings Rewriting Or Recalibration?, Chengshuang Zhang

Dissertations and Theses Collection (Open Access)

ESG ratings are the nexus of sustainable development. Are ongoing retroactive adjustments of ESG scores rewriting or recalibration? Using datasets from 20 random weeks of downloads of Refinitiv ESG universe between 7 October 2021 to 14 December 2022, we find that the positive link between ESG scores or E&S scores to firms’ stock returns existed between 2011 to 2017, disappeared between 2002 to 2011 and attenuated between 2017 to 2021. Using the formation of the International Sustainability Standard Board on 3^rd November 2021 as the external shock event, we further find that the retroactive ESG score adjustments are not …

The Livingston Survey 2023, S. Anderson, B. Bovino, M. Brown, Thomas Lam, Et Al

Sim Kee Boon Institute for Financial Economics

The 15 participants in the June Livingston Survey predict higher output growth for the first half of 2023 than they predicted in the December 2022 survey. The forecasters, who are surveyed by the Federal Reserve Bank of Philadelphia twice a year, now project that the economy’s output (real GDP) will grow at an annual rate of 1.1 percent during the first half of 2023. They expect weaker conditions in the second half of 2023, when growth is expected to be at an annual rate of -0.7 percent. Both projections represent upward revisions from those of the December 2022 survey. Growth …

Policy Uncertainty Reduces Green Investment, Mengyu Wang, Jeffrey Wurgler, Hong Zhang

Research Collection Lee Kong Chian School Of Business

Government subsidies are often used to stimulate environment-friendly investment. We find that Chinese firms reduce green investment as the uncertainty of subsidies rises. This effect is identified from weather-driven fluctuations in air pollution that lead to fluctuations in subsidy allocations: Firms in cities where weather-driven subsidy uncertainty is high engage in less green R&D investment, patent applications, and research staff. Industries that are heavy emitters and those focused on environmental technologies are more affected. The results suggest that policy uncertainty may originate not only from political and macroeconomic shocks but from behavioral mechanisms that link policy to salient recent conditions.

Disagreement In Market Index Options, Guilherme Salome, George Tauchen, Jia Li

Research Collection School Of Economics

We generate new evidence on disagreement among traders in the S&P 500 options market from high-frequency intraday price and volume data. Inference on disagreement is based on a model where investors observe public information but agree to disagree on its interpretation; disagreement among investors is captured by the volume–volatility elasticity. For options, there are two natural variables related to disagreement: moneyness and tenor, which we relate to disagreement about the distribution of the market index at different quantiles and times. The estimated volume–volatility elasticity equals unity for options near the money and close to expiration, which is consistent with the …

Assessing Diversification Of S&P500 And Cdx Indexes, Jeffrey A. Palma

Doctoral Dissertations (DBA)

In this paper, I conduct a study of comovement between equity and corporate bonds using S&P500 and Investment Grade and High Yield CDX Indexes to evaluate the diversification benefits of holding these assets in portfolios. I assess comovement and diversification potential using DCC-GARCH and copulas. This approach allows for a review of equity and credit linkages through multiple lenses and evaluation of how these relationships have evolved over time. In general, I find only modest potential for diversification between equity and CDX markets and strong evidence of increased comovement over time.

Growing Up Under Mao And Deng: On The Ideological Determinants Of Corporate Policies, Hao Liang, Rong Wang, Haikun Zhu

Research Collection Lee Kong Chian School Of Business

Historically, economic activities have been organized around certain ideologies. We investigate the impact of politicians’ ideology on corporate policies by exploring a unique setting of ideological change—China from Mao to Deng around the 1978 economic reform—in a regression discontinuity framework. We find that the age discontinuity of politicians around 18 years old in 1978, who had already joined the Chinese Communist Party (CCP) or joined soon thereafter and later became municipal paramount leaders, has had a lasting effect on contemporary firm- and city-level policies. In particular, firms in cities with mayors that joined the CCP under the ideological regime of …