Business Commons^™

Differential Impact Of Investor Sentiment On The Capital Asset Pricing Model And Discounted Cash Flows Model Estimates Of The Rate Of Return On Equity, Vinh Tran

Senior Honors Theses

Traditional asset pricing models such as Capital Asset Pricing Model (CAPM) and Discounted Cash Flow (DCF) have been used widely in academics and practice due to their simplicity and popularity. The CAPM is a prescriptive model that describes the relationship between a stock’s required return and risk relative to the movements in the market, while the DCF is a descriptive model that measures the realized rate of return on a stock based on the market price of the stock, which in turn incorporates investor perceptions about the stock and the market. In an ideal, efficient market where investors behave rationally, …

A Swot Analysis Of The Lodging And Tourism Industry In New Orleans, Kristyn Williams

Senior Honors Theses

The objective of this paper is to analyze the resiliency of the New Orleans lodging and tourism industry by conducting a SWOT analysis. A SWOT analysis is composed of four key parts: the internal influences that are the strengths (S) and weaknesses (W) and the external influences that are the opportunities (O) and threats (T). New Orleans is characterized by the ability to use its internal strengths to drive growth in its lodging and tourism market. The main internal strengths I identified were the city’s strong cultural identity, and destination attractiveness in both the convention and leisure markets.

However, New …

Effects Of Negative Online Word-Of-Mouth On Consumer Evaluations Of An Underdog Brand, Anja P. Luethi

Senior Honors Theses

Research on underdogs has suggested that consumers feel sympathy for and a desire to support the underdog. However, it is unclear how their evaluations of the underdog will change if they receive negative information about it. The current research aims to explore the role of negative word-of-mouth of the underdog, compared to the top dog, in consumers’ brand attitude, brand value, and purchase intention. Specifically, drawing on two streams of research, two competing hypotheses are proposed and tested. An experiment was conducted with online consumer panel members. Consistent with confirmation bias and familiarity principle, the results supported a hypothesis that …

The Compatibility Of National Culture In International Mergers And Acquisitions, Chaoyun Liu

Senior Honors Theses

This paper examines the relationship between national culture differences and five-day cumulative abnormal returns of acquirers around cross-border merger announcements. The sample consists of 1,200 cross-border deals by frequent acquirers from emerging countries for the period of January 1, 1985 to June 30, 2008. The main objective is to analyze the relation between the difference in Hofstede (1984)’s four cultural dimensions --- power distance, individualism, masculinity, and uncertainty avoidance and the merger performance. The results imply the compatibility of some cultural dimensions, individualism in particular, that result in gains in merger. The results also show that the cultural effects vary …