Business Commons^™

Evaluating Government Programs For Enhancing The Welfare Of The Youth Towards Entrepreneurship, Mitzie Irene P. Conchada, Marites M. Tiongco, Paulynne J. Castillo, Divina E. Edralin

DLSU Business & Economics Review

No abstract provided.

Role Of Education In Encouraging Youth Employment And Entrepreneurship, Brian C. Gozun, John Paolo R. Rivera

DLSU Business & Economics Review

More than half of the Philippines’ jobless sector is comprised of the youth. This warrants the need to identify the constructs and create policy frameworks that would facilitate employability and entrepreneurship among the Filipino youth. Using the Community Based Monitor System (CBMS) survey on Accelerated Poverty Profiling among member schools of De La Salle Philippines, we estimate a multinomial logistic regression that highlights how demographic characteristics and level of education influence a youth’s likelihood to be employed or to be entrepreneurial. Our results provide a framework for policymakers in improving program design and policy implementation targeted towards youth employment and …

Determining The Credit Risk Factors In Accessing Debt Financing For Entrepreneurial Activities, Junette A. Perez, Denmark C. Alarcon, Mar Andriel S. Umali

DLSU Business & Economics Review

Access to debt financing can be explained by the capability to pay of the borrower. The idea is that the better the capability to pay of a borrower, the wider his option to access debt financing and secure bank capital. As a derivative function of the individual and business characteristics of the borrower, the credit risk factors among others include housing type, education, share of income, total sales and total expenses, business and unemployment and economic skills. Using the Community Based Monitoring(CBMS) data, a three stage methodology has been implemented. Regression results show that having business capital is positively affected …

Togolese Informal Sector Workers’ Willingness To Pay For Access To Social Protection, Esso-Hanam Atake, Akoété Ega Agbodji

DLSU Business & Economics Review

In Togo, the informal sector accounts for 84% of the workforce with an annual growth rate of 5%. Despite the importance of the informal sector workers in the Togolese productive activity, they do not benefit from social protection. To address this situation, Act No. 2011-006 was adopted by the Togolese National Assembly in 2011 to provide social security to informal sector workers. However, this was not applied, which means they are still not covered by social protection. This paper seeks to estimate the willingness-to-pay (WTP) of informal workers to have access to social protection services offered by National Social Security …

Making Social Health Insurance And Micro-Savings Programs Work For The Informal Sector In The Philippines, Mitzie P. Conchada, Marites M. Tiongco

DLSU Business & Economics Review

In the Angelo King Institute annual report of Monitoring the Philippine Economy, the Philippines maintained its growth momentum in 2014, besting other Asian economies. Given this backdrop, it is interesting to find out whether various sectors have benefited from this growth, particularly the informal sector which includes bulk of the poor who are self-employed and are mostly engaged in the services sector. The intention of this study is aimed to determine the effect of social protection, particularly social health insurance program (known as PhilHealth Insurance) and the micro-savings scheme (known as AlkanSSSya) on informal sector especially those who are poor …

The Economics Of Brand And Marketing Activities, Mehir Baidya, Bipasha Maity, Kamal Ghose

DLSU Business & Economics Review

Understanding the contributions of brand and marketing activities to sales is vital to make smart decisions. This study attempts to investigate this issue empirically. Data were gathered from two brands in frequently purchase packaged goods category. Two double-log regression models were fitted to data. We find that brand and marketing activities contribute to sales significantly. Managers may find our findings useful to allocate fund between short-term and long-term marketing actions. As far as our knowledge is concerned, this constitutes the first empirical work of economics of branding for regional brands in India.

Market Sensing Capability And Product Innovation Advantages In Emerging Markets: The Case Of Market Entry Quality And Marketing Performance Of Batik Industry In Indonesia, Gita Sugiyarti, Elia Ardyan

DLSU Business & Economics Review

The purpose of this study is to test the effect of market sensing capabilities and product innovation advantage on market entry quality and marketing performance in emerging markets. The samples of this research are 122 respondents. The analysis used in this study is structural equation modeling (SEM). To process the data, AMOS version 21 is employed. The results show that (1) the product innovation advantage can improve market entry quality and market performance, (2) the quality of market entry has significant and positive effect on marketing performance, and (3) the capability to market sense positively and significantly affect the quality …

Trans-Pacific Partnership And Political Motivations: Interpretive Work Based On Analyses Of The Chinese State Media, Tai Wei Lim

DLSU Business & Economics Review

This writing is about studying political motivations for and against the Trans-Pacific Partnership (TPP) through interpretive work based on analyses of Chinese state media articles. My criteria for article selection centers on the use of Google index search for such articles drawn from three newspapers: China Daily, People’s Daily, and Global Times. From receiving the call for paper by this journal on 6 January 2016 to the submission deadline for the call for paper on 15 April 2016, a period of about three months, I downloaded articles from these three dailies for analysis. The motivation for the selection of these …

Forecasting The Term Structure Of Philippine Interest Rates Using The Dynamic Nelson-Siegel Model, Elvira P. De Lara-Tuprio, Ramil T. Bataller, Allen Dominique D. Torres, Emmanuel A. Cabral, Proceso L. Fernandez Jr.

DLSU Business & Economics Review

The three-factor Nelson-Siegel model is a widely used model for forecasting the term structure of interest rates. Several extensions have recently been proposed. Even for the original model, different methods of treating the parameters have been shown. Ultimately, what works best depends on the data used to estimate the parameters. In this paper, the original three-factor model with fixed shape parameter was applied to forecast the term structure using market data from the Philippines. Instead of giving a pre-determined model for the latent factors, the best time series model for them was searched using standard statistical tools. Based on the …

How To Enable Future Faster Payments? An Evaluation Of A Hybrid Payments Settlement Mechanism, Zhiling Guo, Yuanzhi Huang

Research Collection School Of Computing and Information Systems

In the era of Fintech innovation and e-commerce, faster settlement of massive retail transactions is crucial for business growth and financial system stability. However, speeding up payments settlement can create periodic liquidity shortfalls to banks which would incur high cost of funds in the settlement process. We propose a new hybrid settlement mechanism design that integrates features of real-time gross settlement, deferred net settlement, and central queue management structure. The hybrid mechanism is managed by an intermediary and is particularly suitable to settle large volume of small-value retail payments. We evaluate the mechanism using computer experiments and simulation. We find …

Does Director Interlock Impact The Diffusion Of Accounting Method Choice?, Jie Han, Nan Hu, Ling Liu, Gaoliang Tian

Research Collection School Of Computing and Information Systems

This paper examines the influence of director interlock on firms' discrete accounting method choices from the perspective of behavior diffusion. We argue that firm managers will imitate their interlocked-partner firm's accounting method choices when choosing their own accounting methods. We find that when there is an interlock relationship between two firms, their accounting method choices, including inventory and depreciation methods, are similar to each other, indicating that accounting method choices can diffuse across firms through director interlock. In addition, such similarity is greater the longer the interlock relationship between the two firms is and as uncertainty increases. Further, the interlock …

Innovation And Price Informativeness, Ani Manakyan Mathers, Bin Wang, Xiaohong Wang

Finance Faculty Research and Publications

We study whether the innovation decisions of a firm are improved as a result of information reflected in the firm's stock price. We show that firms with more informative stock prices, as measured by price nonsynchronicity, have better innovation outcomes, as measured by the number of patents and patent citations. Our results are not driven by managerial private information and are robust to various alternative specifications. We also find that price informativeness is more important to innovation when managers are less experienced or face greater uncertainty about the optimal innovation strategy, and that these effects are primarily observed in small- …

Key Findings: 2017 Atrs Global Airport Performance Benchmarking, Chunyan Yu

Publications

The ATRS Global Airport Benchmarking Project measures and compares the performance of several important aspects of airport operations: Productivity and efficiency, unit costs and cost competitiveness, financial results and airport charges. The report also examines the relationships between various performance measures and airport characteristics as well as management strategies in order to provide a better understanding of observed differences in airport performance. This report includes 206 airports and 24 airport groups of various sizes and ownership forms in Asia Pacific, Europe and North America. This presentation highlights key findings on efficiency and cost.

Editor's Note, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

The Contributors, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Effects Of Informal Institutions On The Relationship Between Accounting Measures Of Risk And Bank Distress, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

We investigate the effects of informal institutions (trust, religiosity and the media) on the relationship between accounting-based risk measures and bank distress. We conduct our analysis in two stages. In the first stage, we extend the prior literature by documenting a link between accounting-based risk measures and bank distress during the 2008-2009 financial crisis. In particular, given the environment characterized by rapid growth in financial innovation and complex financial transactions prior to the crisis, simple accounting-based risk measures continue to predict bank distress during this crisis period. In the second stage, we address our main research question related to the …

Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik

Research Collection Lee Kong Chian School Of Business

The desire of risk-averse households to hedge rent risk is thought to increase home ownership and prices. While evidence for the ownership implication is compelling, support for the price effect is mixed. We show that an important reason is search frictions. Rent risk reduces outside options, leading to less-picky buyers and worse home/buyer matches. This attenuates the rise in the price-to-rent ratio that would otherwise occur without frictions. Consistent with our model, a house remains on the market for fewer days when rent risk is higher. Accounting for frictions significantly increases the effect of rent risk on home prices.

Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik

Research Collection Lee Kong Chian School Of Business

The desire of risk-averse households to hedge rent risk is thought to increase home ownership and prices. While evidence for the ownership implication is compelling, support for the price effect is mixed. We show that an important reason is search frictions. Rent risk reduces outside options, leading to less-picky buyers and worse home/buyer matches. This attenuates the rise in the price-to-rent ratio that would otherwise occur without frictions. Consistent with our model, a house remains on the market for fewer days when rent risk is higher. Accounting for frictions significantly increases the effect of rent risk on home prices.

Forecasting Stock Returns In Good And Bad Times: The Role Of Market States, Dashan Huang, Fuwei Jiang, Jun Tu, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

This paper proposes a two-state predictive regression model and shows that stock market 12-month return (TMR), the time-series momentum predictor of Moskowitz, Ooi, and Pedersen (2012), forecasts the aggregate stock market negatively in good times and positively in bad times. The out-of-sample R-squares are 0.96% and 1.72% in good and bad times, or 1.28% and 1.41% in NBER economic expansions and recessions, respectively. The TMR predictability pattern holds in the cross-section of U.S. stocks and the international markets. Our study shows that the absence of return predictability in good times, an important finding of recent studies, is largely driven by …

Two Essays On Forced Ceo Turnover During Envy Merger Waves, And Dividends, Bader Almuhtadi

Finance Theses & Dissertations

Scholars have provided different theories that aim to explain merger waves throughout the years. However, a recent stream of the finance literature addresses the behavioral aspect behind mergers waves and imply that envy motivated CEOs tend to create merger waves. On the other hand, the decision to oust a CEO is considered one of the most important corporate decisions made in the lifetime of corporations. In Essay 1, we participate into the study stream by focusing on whether the incident of forced CEO turnover is higher during the late stages of merger waves where envy turns out to be more …

Blockholder Characteristics And Earnings Quality, Aslihan G. Korkmaz, Qingzhong Ma, Haigang Zhou

Business Faculty Publications

This study focuses on the impact of blockholder characteristics on earnings quality. Most of the studies in
literature make the implicit assumption that blockholders are a homogeneous group. This study is one of
few studies that acknowledges the heterogeneity of blockholders and attempts to understand the
unexplained proportion of blockholder heterogeneity. Earnings quality is calculated using the modified
Dechow and Dichev (2002) model with fixed effects (FDD model) by Lee and Masulis (2009), and it is
regressed on various blockholder characteristics. The results show that earnings quality is lower for
firms with market-driven and multilateral blockholders.

Identification Of Key Drivers For Municipal Utility Performance, Jasmin Alsaied

Pursuit - The Journal of Undergraduate Research at The University of Tennessee

This report explores the various performance indicators for municipal electric utilities and the greatest impact financial investments can make for improving these indicators. A literature search provided key detail about performing an analysis that would prove useful to utilities. The analysis identifies key performance indicators that allowed for the most prudent of investments. Data mining techniques and statistical analyses were performed on data sets concerning the 51 North Carolina municipal electric utilities to identify several key ratios and performance indicators that have the greatest impact on cost of service, system reliability, and customer satisfaction. Statistical analyses were used to determine …

Committee Agendas, Wku Board Of Regents

Board of Regents Documents

Committee agendas for Academic Affairs and the Finance & Budget Committees.

Fossil Fuel Asset Risk Analysis: Clark University Endowment, Travis A. Dodge, B. Maiwand Akbari

Student Works

The environmental and social risks of climate change are well known and perhaps inevitable. The economic and financial risks are less so. The many financial risks associated with climate change embedded in endowment portfolio fossil fuel holdings are leading many institutional stakeholders to enter into dialogue and take action. Divestment is emerging as an effective strategy for limiting portfolio exposure and tackling climate change itself.

Our team’s goals were to assess whether the Clark University endowment portfolio faces any of these risks and evaluate the impacts on asset values. Our findings show that the Clark endowment does face these same …

P/E Ratios And Value Investor Attention, Jordan Moore

Rohrer College of Business Departmental Research

Price-earnings (P/E) ratios, the most popular value proxy, are widely reported using the last four quarters of earnings. Corresponding earnings yields (4QEP) have significantly greater return predictability than lagged earnings yields or current book-to-market ratios. The weekly pattern in returns is consistent with individual investor trading activity. The return predictability is robust to fundamentals, price momentum, earnings momentum, volume, and liquidity. 4QEP relates positively to volume and liquidity and negatively to idiosyncratic volatility. Financial data providers only report P/E ratios for stocks with positive earnings; 4QEP only predicts returns, volume, and liquidity for these stocks.

The Impact Of Geographic And Cultural Dispersion On Information Opacity, George D. Cashman, David M. Harrison, Michael J. Seiler, Hainan Sheng

Finance Faculty Research and Publications

This paper investigates the influences of intrafirm geographic and cultural dispersion, the distance between the location of a firm’s investments and its headquarters, on the firm’s information environment. Specifically, using a sample of publicly traded real estate companies across the Asia-Pacific region, we examine how intrafirm geographic and cultural distance impacts a firm’s capital acquisition costs. As a consequence of both the heavily regulated operating environment faced by these firms, as well as the capital intensive nature of this industry, funding costs should be of pronounced importance to firms within this sector. Consistent with this paradigm, we find that firms …

Essays On Capital Structure And Public Debt Markets, Viktoriya Staneva

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters that examine capital structure determinants as well as the evolution of credit rating standards in the market for public debt.

Chapter 1 This chapter shows that firm fixed effects in panel leverage regressions act as a noisy proxy for managerial effects that drive persistence in leverage. Firms that do not change their CEO for prolonged periods of time are more likely to keep debt ratios within a narrow bandwidth and to display persistent differences in their time-series averages for up to 20 years. A CEO turnover is associated with considerable modifications to the financing …

Essays On Investor Sentiment In Asset Pricing, Liya Chu

Dissertations and Theses Collection

The dissertation addresses three topics on investor sentiment in asset pricing.

The first essay investigates the impact of market sentiment on the recent debate on equity premium forecasting. Particularly, market sentiment may break the link between fundamental economic predictors and equity premium. We find that economic predictors tend to lose their power and various remedies proposed in recent studies, such as non-negativity constraints, no longer work during high sentiment periods. In contrast, economic predictors actually do have strong performances even without using any such remedies, as long as the sentiment stays low enough so as not to distort the link. …

Essays In Corporate Cash Holdings, Chenxi Liu

Dissertations and Theses Collection

This dissertation addresses three topics in corporate cash holdings. The first paper provides a new determinant of cash holdings by examining the impact of earnings transparency on corporate cash holdings. Motivated by Barth et al. (2013), who show that firms with less earnings transparency tend to have higher cost of equity, this paper shows that the cross-section differences in earnings transparency cause variations in firm cash holdings because firms with less earnings transparency have more incentives to hold cash in order to avoid costly external financing. Using data of US firms from 1980 to 2013, it is found that earnings …

Financial Reporting And The Accounting Expectations Gap, James Mohs

Finance Faculty Publications

The overall goal of financial reporting is to provide high quality financial information regarding reporting entities that is useful for informed decision making. Considering most organizations have multiple groups of stakeholders which often have differing and competing informational needs, as well as expectations and desired outcomes, the accounting expectations gap has become a topic of current debate in many business circles. Historically, the accounting expectations gap has centered around the role of the auditor and audit responsibility. The financial accounting expectations gap encompasses what the preparers of the statements and auditors believe they should contain and includes what stakeholders believe …