Business Commons^™

The Impact Of The Foreign Corrupt Practices Act On American Business From 1977-2010, Ajani Harris

CMC Senior Theses

This paper seeks to present the moral and ethical frameworks in which to consider the effect of bribing on business and the great community; confront the cultural differences that lie between American businesses and its potential interest abroad, as well as the growing international move to implementation similar to that of the FCPA; analyze prior anti-bribery legislation and the historical events that prompted the need for a policy like the FCPA, discuss the basic elements of the policy’s two pronged approach of anti-bribery and disclosure regulation; examine several cases in the enforcement of the FCPA on American businesses; and consider …

Angel Financing: Matching Start-Up Firms With Angel Investors, Emily M. Rodriguez

CMC Senior Theses

The hardest time to receive financing for a venture is at its earliest stage.  These ventures are among the riskiest investments for an investor, which creates a gap in financing that is often bridged through a source of funding called Angel Financing.  Angel investors are one of the best providers of early stage funding.  This thesis will explain what angel investing is, how they work, and what angels look for.  This information will help entrepreneurs be better equipped to find an angel investor for their venture.

Quantifying The Variance Risk Premium In Vix Options, Reed M. Hogan

CMC Senior Theses

This thesis uses synthetically created variance swaps on VIX futures to quantify the variance risk premium in VIX options. The results of this methodology suggest that the average premium is -3.26%, meaning that the realized variance on VIX futures is on average less than the variance implied by the swap rate. This premium does not vary with time or the level of the swap rate as much as premiums in other asset classes. A negative risk premium should mean that VIX option strategies that are net credit should be profitable. This thesis tests two simple net credit strategies with puts …

Analyzing The Effects Of Credit Rating Changes, The Recent Financial Crisis And Other Variables On Firms' Debt Levels, Sean M. Wasserman

CMC Senior Theses

This paper utilizes a sample of firms over the years 2000–2009 to test the effects of credit rating changes, the financial crisis, interest rates, and other variables on short-term, long-term, and total debt levels on the balance sheet. Each independent variable was created using a one year lag in order to run the regressions. The values of these variables from the previous year are being analyzed to see if they can predict debt levels for the following year. The results of this paper suggest that levels of long-term and total debt are somewhat reliant on and are positively correlated with …

A Theoretical Analysis Of The Future Of Nato, Kaj W. E. Pedersen

CMC Senior Theses

My argument about NATO’s future is a combination of both neo-realist and constructivist thought, an adaptation of both neo-realist power struggles and constructivist institutional structures. Due to a lack of a significant threat, NATO will collapse as a military alliance. However, due to the longevity of the Trans-Atlantic Relationship, the similarities in the governmental structure of its members and the history of peaceful interactions between the allies on both sides of the Atlantic, the current “security community” will remain despite the collapse of the military aspects of the Alliance. NATO has been held together through organizational inertia and shifting the …

A Theory Of Mental Credit, Jason Soll

CMC Senior Theses

Many philosophical subjects attempt to analyze the basis of human welfare. Theories of desert, distribution of property, and happiness tend to dominate philosophical discourse. Mental credit, which is the mental acquisition of credit for one’s accomplishments and the satisfaction one derives from this credit, is absent from this discourse despite its underlying role in the way people think about their lives. Mental credit is an eternal cognitive good that deserves thoughtful attention and pious decisions for implementation. The following theory of mental credit seeks to serve as a unifying theory for the mental calculations that guide life’s most imperative decisions, …

Determinants Of Corporate Cash Holdings, Yun Lai (William) Li

CMC Senior Theses

The paper explores the driving forces behind corporate cash holdings by analyzing past literature and extending this research to the behavior of firms after the 2008 recession. I look at the cash to assets and net debt to assets ratios from October 1980 to October 2011 to obtain an understanding of the past and current state of cash holdings. A comprehensive literature review is done on agency costs and transactional motives to give the reader an overview of the costs and benefits of holding cash. This provides the foundation for the precautionary motives for companies today to keep cash as …

Ethics In Accounting: Sustainability As A Predictor Of Financial Statement Usefulness, Kyle L. Shipley

CMC Senior Theses

This paper examines the impact of ethics on financial statement usefulness in 120 publicly traded companies. Because ethics are difficult, if not impossible, to quantify, Corporate Social Responsibility ratings are used as a proxy. The potential implications of this study are vast, though the main idea is that investors would be able to make better financial decisions should the hypothesis come to fruition. Contrarily, investors will also be able to avoid potentially bad investments if they can ascertain certain companies that lack ethical values. In this paper, I will discuss several facets of corporate ethics such as creative accounting in …

The Success Of Long-Short Equity Strategies Versus Traditional Equity Strategies & Market Returns, Lauren J. Buchanan

CMC Senior Theses

This study examines the performance of long-short equity trading strategies from January 1990 to December 2010. This study combines two financial screens that will yield candidates for both long and short positions for each month during the aforementioned time period. Two long-short strategies are tested: (1) perfectly-hedged, or equal allocation to long and short positions, and (2) net-long. The results of this thesis reveal that if a long-short equity manager is able to successfully determine what companies are overvalued and undervalued and actively rebalance their portfolio, perfectly-hedged and net-long strategies can generate superior risk-adjusted alpha.

Performance Of The Indian Banking Industry Over The Last Ten Years, Saumya Lohia

CMC Senior Theses

This paper analyzes the performance of Indian banks over the period of the last ten years. It uses the CAMEL Framework to determine the performance of public and private banks in India. The paper also conducts an empirical analysis to determine the share price performance of Indian banks relative to the share price performance of banks in Hong Kong, Europe and the US. This paper finds that private banks perform better than public banks overall based on the CAMEL Framework. In addition it also finds that the Indian banks share price performance is dependent on the share price performance of …

The Effect Of Culture On The Implementation Of International Financial Reporting Standards, Mitchell A. Skotarczyk

CMC Senior Theses

As globalization increases at a blistering pace, more and more business entities continue to get involved in cross-border capital investments. A considerable cost can be applied to these types of transaction for the translation of financial statements prepared under dissimilar accounting guidelines into a comparable form. There exist a multiple number of accounting systems that create these dissimilarities, because accounting is a language of business that has been created by society to provide information as to the economic health of an entity. Similar to any other language, varying types of “accounting language” are used across different regions of the globe …

Life Planning For Nfl Players, Ryan Pedersen

CMC Senior Theses

With players in the National Football League (NFL) making what seems to be the most money out of any entry-level position, it might come as a shock to many people to hear that so many players end up in financial distress afterwards.  Sports Illustrated has put this number at 78% of players filing for bankruptcy or are in serious financial trouble within only two years of leaving the league (Torre).

The problems that the players run into are their short careers, which average 3 ½ years, their poor financial decisions and their very optimistic approach to life.  The 3 ½ …

Effect Of Lockup Agreements On Buyout Backed Initial Public Offerings, Grant B. Heffernan

CMC Senior Theses

Using a sample of 279 buyout backed firms, I examined the effect of lockup agreements on the firm’s stock returns. I found there to be a negative .8 percent cumulative abnormal return for the three-day period surrounding lockup expiration. Consistent with my hypothesis the CAR for the three-day period surrounding lockup expiration was less negative for buyout backed IPOs compared to venture capital backed IPOs. In addition, I found there to be an abnormal 24.24 percent increase in trading volume for the three days surrounding lockup expiration.

The Estimated Value Of A Premium Division One Football Player: The Argument Supporting Pay For Play, Travis S. Roher

CMC Senior Theses

Abstract

The gap between the revenue generated by division one football players and the value of an athletic scholarship is the marginal revenue product of these athletes.  Because of the monopsonistic behavior of the NCAA, division one institutions capture an economic rent from their student athletes. This paper measures the rents generated by NCAA division one football players in the six powerhouse conferences by using linear regressions based on variables such as university revenue, future NFL draft picks, undergraduate population, and weekly AP Top-25 rankings. This paper will inform its readers on how much money these student athletes are generating …

Does An Academy Award Affect Stock Return?, Kelli M. Maltsbarger

CMC Senior Theses

This study examines the affect of winning an Academy Award on the stock price of parent companies.  On average, receiving an Oscar has no significant impact on the stock of parent companies during the few days surrounding the broadcast of the Academy Awards.  The findings of this study introduce questions of external interference and possible limitations on this type of research.  However, my study sheds light on future topics of investigation for analyzing the effects of televised award shows on the stock market.

An Evaluation Of Corporate Social Responsibility Initiatives Implemented By Alcoa, Votorantim, And Vale As A Means To Aid In Poverty Alleviation In The Brazilian Regions These Mining Companies Operate, Emily A. Coleman

CMC Senior Theses

This thesis evaluates the corporate social responsibility (CSR) initiatives implemented by Alcoa, Votorantim, and Vale as a means to aid in poverty alleviation in the Brazilian regions these mining companies operate. Even though Brazil is ranked as the eighth largest economy in the world, 50 million Brazilians are living on less than US$1 per day. The presence of large mining corporations in Brazil’s poorest regions represents an opportunity for corporate social responsibility investments to improve social, economic, and environmental conditions in these locations. This research highlights the importance of designing corporate social responsibility programs according to the specific characteristics of …

Managing The Millennials: Employee Retention Strategies For Generation Y, Nicholas W. Thompson

CMC Senior Theses

This paper provides a comprehensive analysis of Millennials' beliefs and attitudes and how that will affect their conception of the employer-employee psychological contract. This analysis should provide a greater understanding of how the childhoods of Millennials have affected their attitudes for life and career aspirations. Further, it explores retention strategies for workplace culture, management style, and growth and advancement.

Imf Conditionality, Fiscal Policy, And Income Inequality In Latin America, Nicholas Egger-Bovet

CMC Senior Theses

The International Monetary Fund (IMF) is the leading international economic crisis manager, but the effects of its loans and conditionality reach far beyond overarching macroeconomic indicators. This paper will examine the consequences of IMF fiscal policy conditions on income inequality and poverty by examining cases in Latin America, and specifically Mexico during the 1980s. The role that internal politics within borrowing countries plays is also closely examined. The paper concludes with policy recommendations for the IMF to ensure the most equitable and effective means of overcoming balance of payments crises.

The Stable American Mind: Understanding Attitudes Towards Government And Taxes, 1990-2011, Christopher P. Eldred

CMC Senior Theses

As the federal government seeks ways to stimulate our economy and reduce our national debt, understanding public attitudes on the role and size of government and the taxes that support it is important. This thesis evaluates how US public opinion towards government and taxes has changed from 1990 to the present, and analyzes several potential causes for changes that have occurred. It is intended to be an update of William G. Mayer’s 1992 book entitled The Changing American Mind, which analyzed changing public opinion from 1960-1988. In following his analysis, the causes I have analyzed are generational replacement, fiscal …

The Importance Of Leadership And Culture In Mergers, Aravind Swaminathan

CMC Senior Theses

The purpose of this paper is to show how leadership and culture are critical factors in organizational change. The vehicle through which this point is proved is by

analyzing the organizational change processes of mergers, as mergers involve

leadership and culture. Successful mergers are very rare, and it is hypothesized

that not enough attention is paid to leadership and culture during mergers. This

paper analyzes many of the factors that related to leadership and culture, such as

transparency, trust, communication, and vision. Not only does this paper analyze

these topics, but it also examines and applies a successful change strategy, …

Take Me Out Of The Ball Game: The Efficacy Of Public Subsidies In The Success Of Professional Sports Stadiums, Jonah Chodosh

CMC Senior Theses

This paper weights the relative advantages of multiple factors that lead to the success of professional sports stadiums in major markets, though a discussion of the arguments for and against public subsidies towards these projects. Using a logit statistical model, the paper determines that the two factors determining the highest likelihood of venue success include multiple tenants and access to mass transit. The analysis demonstrates that public subsidies towards stadiums don’t generate sufficient economic returns, and that successful stadiums can be created without using taxpayer funds.

The Persistence Of Pricing Differentials In Dual-Listed Companies In Hong Kong And China, Justin Spitzer

CMC Senior Theses

Over the past two decades a number of Chinese companies have issued shares on both the Hong Kong Stock Exchange and on one of the Chinese stock exchanges. The Hong Kong-listed H-shares of Chinese dual-listed companies have traded at a persistent discount rate relative to the China-listed A-shares. As these shares represent the same ownership rights and cash flows, the shares should theoretically trade at the same price. The price differential between H-shares and A-shares should decrease as international markets continue to converge. The paper analyzes the persistence of the discount rates and the effects of both market and investor …

Emotional Brand Attachment: Marketing Strategies For Successful Generation, Katie Bilotti

CMC Senior Theses

Modern society is structured around consumption. The climate of the current consumer culture is one of intense competition. In order to differentiate their brands and products, companies are beginning to focus on differentiating their brands on the basis of distinctive emotional, rather than functional, characteristics. Emotional brand attachment is defined as the bond that connects a consumer with a specific brand by involving feelings of affection, passion, and connection. When established, emotional brand attachment is a powerful tool for building brand equity and influencing the purchasing decisions of consumers. This paper explores the marketing tactics utilized by Dove brand and …

The Next Catalyst For Change: How Corporate Shared Value Is Reshaping Capitalism, Emily Davenport

CMC Senior Theses

Both corporations and their global conglomerates are looking into the face of an evolving idea of capitalism.  As businesses become more intertwined with society, this special relationship is becoming increasingly deterministic of the condition of the world.  This paper explores the possibility that if businesses integrate shared value -- a way to combine economic and social value -- into their long-term business plans, that not only will society be better off, but the businesses themselves may be able to explore previously unrecognized potential for profits.

Public Dollar Private Owners; Tax Subsidies For New Stadiums In Professional Sports, Grant J. Bunnage

CMC Senior Theses

The growing popularity of North American professional sports over the last twenty years directly coincides with the recent trend of urban communities using tax dollars to publically subsidize professional football, baseball, and basketball stadiums. Communities across North America invest substantial amount of public tax dollars in private facilities in light of a consensus among policy analysts that the economic impact of the new stadium is greatly exaggerated. The economic impact of new stadiums has been extensively researched, the focus  of this paper rather, is to examine the impact publically subsidized facilities built in the last twenty years have on the …

Market Value Vs Historical Cost Valuations Of Fixed Assets In The Context Of International Convergence, Alexander Y. Varga

CMC Senior Theses

The purpose of this paper is to discuss the differences between accounting for fixed assets under IFRS and U.S. GAAP.  Primarily the discussion will be driven by the question: which standard should the FASB lobby for in its joint effort with the IASB to converge U.S. GAAP with IFRS?  The paper will start by establishing that financial reporting, as it has evolved in the United States, was developed primarily to assist in the accountability relationships between management and both credit and equity investors.  From there the paper will look at which standard is better suited to fulfill this goal and …

The Impact Of Terrorism On Foreign Direct Investment: Which Sectors Are More Vulnerable?, Shivani Agrawal

CMC Senior Theses

The impact of conflict and violence on foreign direct investment (FDI) is not a topic that has been done justice by the literature, and what few studies exist have contradictory results. This paper studies the impact that transnational terrorism has on FDI inflows by economic sector, in developed countries. Results indicate a statistically significant negative correlation between terrorist events and total FDI inflows. Amongst a list of 12 broad industrial sectors, FDI inflows for manufacturing, trade and repair, and construction were found to have a statistically significant negative correlation with terrorist events.

Scholarship In International Technical Communication, 1950-1989: A Historical Study, Xiaoyan Huang

Masters Theses

"This thesis is a study of the published scholarship in international technical communication from 1950 to 1989. It provides insight into the four decades' worth of scholarship as well as a resource for the development of present and future scholarship in international technical communication. It attempts to answer the following research questions: What did scholars of international technical communication study in each decade? What are the similarities and differences among the four decades in terms of scholarship in international technical communication? What are the strengths and weaknesses of the relevant scholarship in the four decades? What can we learn from …

The Perspectives Of African American Nonprofit Female Executives From The Northeastern Region Of The United States About The Work-Family Balance, Tammy Evans-Colquitt

Walden Dissertations and Doctoral Studies

Although many studies have been conducted on the increased pressure and stress facing women who are trying to fulfill work and family demands, little is known about African American women in executive positions and their perspectives about work-life balance. A particular gap in the research literature exists on the lived experience of African American nonprofit executive women in maintaining work-life balance. The conceptual framework of this phenomenological study was the bidirectional frame of both work interfering with family and family interfering with work. Data were collected through semistructured telephone interviews of 12 African American women ages 30 to 45 and …

Exploring Increased Productivity Through Employee Engagement, Wayne K. Richards Jr.

Walden Dissertations and Doctoral Studies

Disengaged employees cost U.S. companies billions of dollars annually in lowered productivity, a cost which has been compounded by the difficult economic situations in the country. The potential for increasing productivity through increased employee engagement was examined in this study. Using personal engagement theory and the theory of planned behavior, the purpose of this phenomenological study was to explore how the experiences of salaried aerospace employees affected productivity and the financial performance of an organization. Interviews were conducted with a purposive sample of 20 aerospace employees whose responses were codified and analyzed to identify themes. The analysis indicated that (a) …