Business Commons^™

Strategic Working Capital Sourcing Strategies For The Survival Of Small Businesses, Gregory Smith

Walden Dissertations and Doctoral Studies

Fifty percent of small businesses fail before attaining their 5-year anniversary. The lack of sufficient working capital is one of the major reasons for small business failure. Pecking order theory was employed as the conceptual framework for this multiple case study to explore the working capital sourcing strategies of 6 purposely selected successful small business owners in the Southeast region of the United States used to sustain their businesses beyond 5 years. Data sources included semistructured interviews and company documents. Data analysis included thematic coding of the material using statistical software. The modified Van Kaam method was used to analyze …

Essays In Commodities And Freight Markets, Nelson Yap

Dissertations and Theses Collection (Open Access)

Chapter 1: Structural Changes in Functional Curves: Estimation and Testing

Abstract: This paper considers the estimation and testing of structural changes in functional curves that occurs at an unknown date. The functional principal component analysis is applied to the random functional curves, decomposing them into interpretable simple latent functions and random scalars. We model the random scalars using a simple autoregressive model and test for a change in parameters that occur at an unknown date. This method is applied to the crude oil futures market to estimate and date possible structural breaks during OPEC announcement periods from 1984 to 2017.

Essay On Asset Pricing, Fei Gao

Dissertations and Theses Collection (Open Access)

We uncover a novel stock return predictor from the options market, the volume-weighted strike-spot price ratio (VWKS) across all traded option contracts. High (low) VWKS indicates that the mass of options volume on an underlying stock centers at the out-of-the-money region of call (put) options. Empirically, VWKS has positive and robust predictive ability for underlying returns after controlling for a long list of variables including known return predictors from the options market, stock illiquidity, and past stock returns, and has more persistent and stronger predictive power for stocks with higher information asymmetry and arbitrage costs. We also find that VWKS …

U.S. Corporate Energy Productivity, Greenhouse Gas Productivity, And Return On Equity, Terry Geonnie Tate

Walden Dissertations and Doctoral Studies

Corporate leaders are expected to engage in corporate social responsibility by some stakeholders, but there is no consistent evidence that corporate social performance relates to financial performance. Grounded in instrumental stakeholder theory, the purpose of this correlational study was to examine the relationship among energy productivity, greenhouse gas productivity, and return on equity. The 2016 Newsweek Green Ranking U.S. 500 was the population for this study, which consisted of the largest companies in the United States with the highest corporate social performance scores. The secondary data were collected from Newsweek.com and Morningstar.com for this study. The multiple linear regression was …

Compliance Strategies To Reduce The Risks Of Money Laundering And Terrorist Financing, Cassandra Nottage

Walden Dissertations and Doctoral Studies

Ineffective compliance programs expose banking and trust companies to increased risk of money laundering (ML) and terrorist financing (TF). Using risk management theory, the purpose of this multiple case study was to explore compliance strategies that Bahamian bank and trust company managers use to reduce ML/TF risks. Study participants comprised 7 senior risk and compliance managers experienced in risk strategy development and implementation. Semistructured interview data were triangulated with data collected from internal policy and procedural documents, publicly available papers of the Financial Action Task Force on Money Laundering (FATF), the Basel Committee on Banking Supervision (BCBS), and the Central …

Strategies Church Financial Leaders Use For Financial Sustainability During Economic Crises, Jessie Hyman Jackson

Walden Dissertations and Doctoral Studies

Church financial leaders were affected by the economic crisis after the 2008 recession. In a 2009 group study conducted nationwide with church financial leaders, 57% stated that the economy had a negative effect on their church budgets. The purpose of this qualitative multiple case study was to explore successful strategies that some church financial leaders used to ensure financial sustainability during economic crises. Resource dependence theory was the conceptual framework. Data were collected from 6 church financial leaders at 4 churches in the northeastern region in the United States; church financial leaders were selected through purposeful sampling to participate in …

Chief Executive Officers' Compensation And Firms' Performance In The U.S. Banking Industry, Xin Li

Walden Dissertations and Doctoral Studies

The growth rate of chief executive officers' (CEOs) compensation has dramatically outpaced average employees' pay increases. Scholars have not been able to reach a consensus on whether the financial performance of firms has a positive influence on CEOs' compensation. Also, boards of directors lack a clear understanding of the relationship between financial performance of firms and CEOs' incentive compensation in the U.S. banking industry. The purpose of this correlational study was to examine the predictive relationship between financial performance of firms (measured by return on equity [ROE] and annual revenue) and CEOs' total compensation in the U.S. banking industry. According …

Homeowner's Equity, Rental Cash Flow, And Recourse As Predictors Of Default Mortgage Status, William Callian Iii

Walden Dissertations and Doctoral Studies

In the aftermath of the Great Recession of 2007-2009, banking executives feared the impact of increased capital reserve requirements for losses from mortgage defaults. One reason was that home price declines during the Great Recession precipitated mortgage defaults, which increased the percentage of foreclosures as well as accelerated negative equity, and default. The purpose of this correlational study, grounded in Fishbein's expectancy of value and Vroom's expectancy theories, was to examine the relationship between the independent variables of homeowner's equity, rental cash flow value, and recourse, and the dependent variable, default mortgage status. Archival data comprised a sample of 408 …

Regulatory Change And Corporate Acquisitions, Arya Rishi

Chulalongkorn University Theses and Dissertations (Chula ETD)

This thesis investigates the impact on foreign investment activities of the equity market liberalization introduced in response to the 1997 crisis, which primarily involves the relaxation of the foreign ownership restrictions as well as improvements in corporate governance practices. These regulatory changes, which occurred in Indonesia, the Philippines, Malaysia, and Thailand, should have resulted in a lower amount of frictions in the capital market. With this lowering of frictions, we should observe higher gains from cross-border corporate acquisitions in addition to a higher volume of cross-border acquisitions. When I use combined announcement excess returns to measure acquisition gains, I find …

The Contributors, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Strategic Position Of Bond Markets In Asean-5: Challenges And Directions For Development, Sorasart Sukcharoensin

DLSU Business & Economics Review

This study compares and analyzes the strategic position of bond markets in ASEAN-5 countries using the Strategic Position and Action Evaluation matrix approach as a diagnostic tool. The results reveal that the bond markets in Malaysia, Singapore, and Thailand are in an aggressive posture, whereas the bond market in the Philippines is in the conservative position and the Indonesian bond market is the one in a defensive posture. The current strategic position of each bond market, together with scores in each dimension, helps identify key prospects and challenges that could considerably affect strategic development of bond markets in the region.

Ownership Structure And Stock Return Asymmetries In Asean-5 Stock Markets: A Firm-Level Analysis, Sorasart Sukcharoensin, Pariyada Sukcharoensin

DLSU Business & Economics Review

This paper explores the relationship between ownership structure and the skewness in the stock return distribution among ASEAN-5 equity markets, including Indonesia, Malaysia, the Philippines, Singapore, and Thailand during 2007–2015. This study adds to the existing literatures that ownership structure can explain skewness of the stock returns. The empirical results reveal that stock returns in ASEAN-5 markets present asymmetric distribution. Further, by employing firm-level data, the results show that ownership structure, cumulative daily stock returns, firm size, and market-to-book ratio significantly affect future skewness of the stock returns.

Inflation And Public Debt Dynamics In Asean, Yuthana Sethapramote, Athakrit Thepmongkol

DLSU Business & Economics Review

This paper studies how inflation affects the debt dynamics focusing on six ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Using projection data, we perform simulations of debt dynamics under various inflation policies. It results that Vietnam has the highest ability of inflating debt, while the Philippines is lastly ranked. Moreover, the optimal inflation rate for each member country and also the common policy rate for ASEAN integration are calculated under additional debt management motive. We found that if the ASEAN happened to use the common inflation policy rate, Malaysia and the Philippines would not be much affected …

Regime-Switching Business Cycle Synchronization In The Asean, Yuthana Sethapramote, Athakrit Thepmongkol

DLSU Business & Economics Review

This paper investigates patterns of business cycle synchronization and analyzes the underlying common factors in six ASEAN countries, that is, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Two important findings result. First, according to resulting regime probabilities calculated from the Markov-switching model, Singapore is not synchronized with other ASEAN members, while Indonesia, Malaysia, and the Philippines are highly correlated. Second, according to the principal component analysis, we find that the world’s import value growth, the output growth of China, and the capital flow of Singapore are most likely to account for 88% of variation in probabilities of the ASEAN …

Compliance Theory: A Case Study Approach In Understanding Organizational Commitment, Nelson J. Celis

DLSU Business & Economics Review

The Electronic Commerce (e-Commerce) Act of 2000 or Republic Act (RA) No. 8792 mandates all government agencies to transact business and perform government functions using electronic documents within two years from the date of its effectivity in June 2000. Unfortunately, only a handful of government agencies were ready to implement the said law in the year 2002 despite the availability of applicable information technology (IT) resources and appropriated budget. After 17 years, there is considerable improvement in the compliance with the said law, though there are still non-compliances of government offices that could not manage to be at par with …

Determinants Of Earnings Management Choice Among Publicly Listed Industrial Firms In The Philippines, Cynthia P. Cudia, Aeson Luiz C. Dela Cruz

DLSU Business & Economics Review

Earnings management involves the use of acceptable accounting rules and procedures as well as circumventing business activities to achieve desired ends. In the literature, earnings management through discretionary accruals has always been associated with an opportunistic motive to mislead various stakeholders about a business’ financial performance to the advantage of owners and managers. However, the literature presented two possible motives behind earnings management, namely: an opportunistic, a self-serving perspective which mirrors the agency problem; and an efficient motive which utilizes earnings management as a signalling mechanism to send signals about the firm to its stakeholders. In this paper, we investigate …

Predictors Of Humanistic Sustainability Hrm Practices, Ana Liza Asis-Castro, Divina M. Edralin

DLSU Business & Economics Review

We determined and compared the degree of implementation of humanistic sustainability human resource management (HRM) practices. We analyzed which among the firm demographics, such as the number of years of operation, size, and type of ownership, is its significant predictor. Based on the Motivations of Humanistic “Sustain Ability” framework where the HRM practices were rooted, we used the descriptive, correlational, and causal research designs to analyze the 137 samples responses of various companies who participated in the survey. Our results showed that Philippine companies were moderately implementing humanistic sustainability HRM practices. It also indicated that those that were registered as …

Analysis Of Food Demand Elasticity Of Rice For The Poor In Aceh, Indonesia: An Almost Ideal Demand System Approach, -- Suriani, Diana Sapha A.H, Cut Zakia Rizki

DLSU Business & Economics Review

The purpose of this study is to empirically explore the effect of rice for the poor (Raskin) or subsidized rice consumption on the food demands elasticity of poor households. The study utilizes the primary data collected in 2015 based on the purposive sampling method for establishing the homogeneity characteristics of Raskin beneficiary’s households. An Almost Ideal Demand System approach is adopted to measure the proportion of food commodities expenditure of the poor and the demand elasticity as well as their responses to the income elasticity. Additionally, the correlation analysis is utilized to investigate the relationship between the selected socioeconomic variables …

Mlb Rule Iv Draft: Valuing Draft Pick Slots, Anthony Cacchione

Dissertations and Theses

This study explored the Net Present Value (NPV) in dollar terms of draft pick slots in the Major League Rule IV Draft. In order to accomplish this, the cumulative performance of players selected in each slot within the draft was evaluated and brought to the Present Value of the time they were selected using a discount rate. The performance of the players was determined using the baseball-reference Wins Above Replacement (WAR) metric. It is intuitive that earlier draft picks are the most valuable; however, it is unclear how quickly the value of draft picks decline. This research demonstrates that the …

The Dogs Of The Dow Strategy Applied To The S&P 500, Autumn Wilson

Theses and Dissertations

The Dogs of the Dow trading strategy popular strategy that invests in the ten stocks with the highest dividend yield in the Dow Jones Industrial Average. We examine a newer variation of this strategy that involves investing in the five highest dividend yield stocks from each sector of the S&P 500. We compare returns of this this strategy to those of the Dogs of the Dow and to those of the S&P 500. We find that this strategy has higher raw returns than both the Dogs of the Dow and S&P.

Real-Time Inbound Marketing: A Use Case For Digital Banking, Alan Megargel, Venky Shankararaman, Srinivas K. Reddy

Research Collection School Of Computing and Information Systems

Over the years banks have been strategically using digital technologies to help transform various aspects of their business. In recent times, this strategy has evolved into one of digital augmentation of the bank’s processes, products and channels. This allows for reaching out to customers and partners through digital platforms, for example; the addition of mobile apps for customers to access and perform service transactions. Marketing continues to play a major role in supporting the expansion of business and increasing revenue for the bank. Marketing has evolved from mass direct targeting to more personalised, face-to-face and real-time targeting. In the digital …

Microfinance: Combating World Poverty One Small Business At A Time, Alison Basney

Senior Honors Theses

Poverty is a major problem that reaches millions of people around the world. Although many organizations and individuals work daily to combat this, much of the work done to reduce poverty lacks sustainability and serves only to remedy to the effects of poverty, rather than create a solution to the causes of poverty. Microfinance can be very basically defined as the provision of banking to the impoverished who would not otherwise have access to these services. This purpose of this thesis is to show that microfinance is the ideal solution to the poverty problem by using research and evidence from …

Public Ownership And The Local Economy, Jess Cornaggia, Matthew Gustafson, Jason Kotter, Kevin Pisciotta

Faculty Publications

We provide evidence that a firm’s transition from private to public ownership stunts local economic growth, especially in less populated and poorer areas. After accounting for endogeneity in the ownership decision, areas hosting companies that go public experience muted growth in employment, establishments, population, and wages, relative to areas where firms file to go public and remain private. Establishment-level analyses reveal that transitioning to public ownership causes firms to geographically diversify their establishments and employee base. These findings are consistent with public ownership reducing a firm’s reliance on local agglomeration economies, to the detriment of the local community.

Comparables Pricing, Justin Murfin, Ryan Pratt

Faculty Publications

Finance professionals commonly set prices based on the analysis of recently closed, comparable transactions. Using data on syndicated loans, we exploit the lag between loans’ closing dates and their inclusion in a widely used comparables database to identify the effect of past transactions on new transaction pricing. Comparables pricing is an important determinant of individual loan spreads, but a failure to account for overlap in information across loans leads to pricing mistakes. Comparables used repeatedly are overweighted as they develop redundant channels of influence on later transactions. Market conditions prevailing at the time a comparable was priced also unduly influence …

Credit Supply And The Rise In College Tuition: Evidence From The Expansion In Federal Student Aid Programs, David O. Lucca, Taylor Nadauld, Karen Shen

Faculty Publications

We study the link between the student credit expansion of the past 15 years and the contemporaneous rise in college tuition. To disentangle simultaneity issues, we analyze the effects of increases in federal student loan caps using detailed student-level financial data. We find a pass-through effect on tuition of changes in subsidized loan maximums of about 60 cents on the dollar and of about 20 cents on the dollar for unsubsidized federal loans. The effect is most pronounced for more expensive degrees and degrees offered by for-profit and 2-year institutions.

Private Equity Indices Based On Secondary Market Transactions, Brian Boyer, Taylor D. Nadauld, Keith Vorkink, Michael S. Weisbach

Faculty Publications

Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund’s final distribution. We propose a new approach to evaluating performance using actual prices paid for limited partner shares of funds in secondary markets. We construct indices of buyout and venture capital performance using a proprietary database of secondary market prices between 2006 and 2017. These transaction-based indices exhibit significantly higher betas and volatilities, and lower alphas than NAV-based indices built from Preqin and obtained from Burgiss. There are a number …

The Capitalization Of Consumer Financing Into Durable Goods Prices, Bronson Argyle, Taylor Nadauld, Christopher Palmer, Ryan Pratt

Faculty Publications

Using loan-level data on millions of used-car transactions across hundreds of lenders, we study the consumer response to exogenous variation in credit terms. Borrowers offered shorter maturity decrease expenditures enough to o set 60-90% of the monthly payment increase. Most of this is driven by shifting toward lower quality cars, but affected borrowers are able to o set 20-30% of a monthly payment shock by negotiating lower prices for equivalent cars. Our results suggest that durable goods prices adjust to reflect credit terms even at the individual level, with one year of additional loan maturity increasing a given car’s price …

Get In Line: Chapter 11 Restructuring In Crowded Bankruptcy Courts, Benjamin Iverson

Faculty Publications

Bankruptcy costs depend not only on the laws that govern financial distress but also on the ability of the court to rehabilitate distressed firms. This paper tests whether Chapter 11 restructuring outcomes are affected by time constraints in busy bankruptcy courts. Using the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act as an exogenous shock to caseloads, I find that commercial banks report lower charge-offs on business lending when court caseloads decline, suggesting that the costs of financial distress are lower in less-congested courts. Further, court caseload affects how restructuring takes place. Less-busy bankruptcy judges liquidate fewer small …

Trade Creditors' Information Advantage, Victoria Ivashina, Benjamin Iverson

Faculty Publications

Using information on the sales of debt claims for 132 U.S. Chapter 11 bankruptcy cases, we show that large trade creditors’ decisions to sell receivables of a distressed company in bankruptcy are predictive of lower recovery rates, and that in such cases these creditors sell ahead of less informed suppliers and other creditors. This result is especially pronounced for more opaque distressed firms, when trade creditors’ information advantage is likely largest. This evidence shows that suppliers that extend significant amounts of trade credit hold private information about their trade partners. Trade creditors who are geographically closer or in similar industries …

Long-Run Linkages Of Asean+3 Floating Currencies, Cesar C. Rufino

DLSU Business & Economics Review

The extent with which currencies of the expanded ASEAN grouping commonly known as the ASEAN+3 have attained long-run currency linkages—an important requisite for an eventual monetary integration—is the main focus of this study. High-frequency interbank call rates (nominal exchange rate vis-à-vis the US dollar) data on seven floating currencies of the region with sufficient historical time series covering the period of 1998 to 2012 (weekly: January 7, 1998, to December 26, 2012—average of bid and ask rates on Wednesdays) constitute the primary database of the study. The goal is to establish through cutting-edge econometric procedures three crucial outcomes: the bilateral …