Accounting Commons^™

The Development Of A Rag-Based Artificial Intelligence Research Assistant (Aira), Hamid Vakilzadeh, David A. Wood

Faculty Publications

No abstract provided.

The Information Content Of Private Information Acquisition: Evidence From Foia Requests To The Sec, Dichu Bao, Janja Brendel, Michael S. Drake, Lixin (Nancy) Su

Faculty Publications

We analyze Freedom of Information Act (FOIA) requests submitted to the Securities and Exchange Commission (SEC), focusing on the value-relevance hypothesis and the directtrading hypothesis. Our empirical analysis reveals nuanced value relevance associated with different types of requests: Requests related to ongoing investigations and submitted by anonymous requesters are negatively correlated with future returns, while requests from investment firms and intellectual property firms predict positive future returns. Our findings also provide some support to the direct-trading hypothesis, showing that investment firms increase holdings of stocks for which they have filed FOIA requests, and short sellers exhibit heightened activity following requests …

Does Social Capital Mitigate Managerial Self-Dealing? Evidence From Insider Trading, Sung Gon Chung, Jimmy Lee, Sang Hyun Park

Research Collection School Of Accountancy

In this study, we examine whether the social capital surrounding the firm’s corporate headquarters mitigates managerial self-dealing in the form of opportunistic insider trading. We find strong evidence that the level of social capital in the region surrounding the firm’s headquarters is negatively and significantly associated with insider trading profitability. We also find that the negative association between social capital and insider trading profitability is more pronounced when governance is weaker and corporate opacity is higher, instances where insiders have greater opportunities to trade on their private information. Further analyses on the potential mechanisms suggest that the negative association is …

Bed Allocation Model For Infection Control During A Pandemic, Rosemary R. Seva, Dennis E. Cruz, Lourdes Marie Tejero

DLSU Business & Economics Review

This study proposes a model of allocating beds in a hospital considering infection control during a pandemic. The problem was formulated using the quadratic assignment problem (QAP) in a multi-period planning horizon. The main objective is to

minimize the spread of infection by maximizing the total distance (TD) between areas assigned to the pandemic and non- pandemic patients. Model validation using GAMS showed that the assignment of patient groups to areas is determined by

the arrival rates of patients and the area’s capacity. The model was able to identify periods when the sharing of space was more advantageous. The model’s …

The Follower Fallacy: Revisiting Engagement Hypothesis By Evidencing Nonlinear Dynamics In Influencer Marketing, Pranjal Jain, Pooja Jain, Anju Jain

DLSU Business & Economics Review

The traditional premise posits a positive correlation between influencer following (indegree) and engagement metrics, covering likes, shares, comments, and so forth. This study aims to either affirm or dent this engagement hypothesis. Through a methodical analysis of engagement data, this research recognizes potential deviations from the anticipated linear trajectory. Contrary to antecedental social influence, campaign customization, indegree composition, and post components define diverse nonlinear trajectories, empirically challenging the existing research assumptions underlying hypothesis. By evidencing the multifaceted dynamics of influencer engagement, this study offers critical insights for marketers navigating the complexities of contemporary digital marketing landscapes, facilitating the optimization of …

Portfolio Construction Analysis, Liam Peoples

Senior Honors Theses and Projects

This project examines the construction and evaluation of a diversified equity portfolio designed to generate positive risk-adjusted alpha relative to the S&P 500 over a five-year investment horizon. The analysis is conducted within a macroeconomic environment characterized by structurally higher interest rates, slowing real GDP growth, and elevating geopolitical and political risks. A comprehensive top-down assessment of financial, economic, industrial, global, political, housing, and trade dynamics forms the foundation for establishing portfolio selection criteria. Emphasis is placed on balance sheet strength, durable cash flows, and pricing power, reflecting the higher cost of capital and increased volatility relative to the pre- …

Steering Through The Investment Potential Of Lear Corporation, Wazni Abed Jaber

Senior Honors Theses and Projects

Lear Corporation stands for the intersection of innovation and tradition within the electrically, autonomously, and sustainability-driven world. Based on our financial analysis of Lear using free cash flow projections, dividend valuation, and WACC modeling, we estimate the stock’s value at $140.28. Yet it seems that behind all those financial numbers there are so much larger questions: Can a 100-year-old automotive giant reform itself when consumer needs change rapidly, competition remains relentless, and regulators are under ever-increasing pressure? This analysis examines Lear’s financial strength and how it plans to adapt and grow amid ongoing industry change. In the end, Lear’s story …

Signaling Innovation: The Nontax Benefits Of Claiming R&D Tax Credits, Bradford F. Hepfer, Hannah W. Judd, Sarah C. Rice

Faculty Publications

Using the IPO setting, we test whether firms signal the quality of their investments in innovation activities by claiming R&D tax credits. We find the presence and amount of the R&D credit are each associated with lower information asymmetry and with higher investor demand at IPO. Conservatively, we estimate that sample firms realize additional IPO proceeds of 32–45 percent of their creditable R&D expenditures, indicating economically significant non-tax benefits associated with the R&D credit. We verify the R&D credit signal by showing its positive association with firms’ future patenting activity, patent citations, and post-IPO stock returns. Results from these tests …

Comparing Esg Reporting And Market Dynamics In The Technology And Consumer Industries: Analyzing Investor Reactions And Understanding The Future Of Corporate Reporting, Sophia Nguyen

CMC Senior Theses

The increasing emphasis on Environmental, Social, and Governance (ESG) reporting has sparked debate about its influence on market reactions and corporate transparency. This thesis investigates the impact of ESG disclosures on investor behavior and market dynamics within the technology industry specifically, focusing on the correlation between ESG performance and stock price volatility, as well as other financial ratios. This relationship will be compared to those of various companies within the consumer business industry, to determine whether investors have the same reactions towards consumer business companies compared to consumer-facing technology companies and other technology companies. Additionally, the study explores whether investors …

Uncovering Earnings Management In The U.S. Tech Industry: Strategies To Meet Or Just Beat Analyst Eps Expectations, Morgan Schilling

CMC Senior Theses

This paper investigates earnings management practices within the U.S. tech industry, focusing on firms that meet or just beat analyst EPS expectations. I specifically built off the Stubben (2010) model that used discretionary revenue to identify potential mismanagement across multiple industries. The modified model incorporates deferred revenue as well as accounts receivable to identify revenue recognition practices in an industry where subscription based revenue is highly relevant. I hypothesize that tech firms with aggressive revenue recognition strategies, particularly those with higher levels of accounts receivable, are more likely to engage in earnings management in order to meet EPS targets. A …

Altman Z-Score Relationship With Stock Price Performance After Layoff Announcements, Natalie Phillips

CMC Senior Theses

This paper examines the broader implications of such workforce reductions, historically prevalent in corporate environments since the advent of "new capitalism" in the late 20th century. Characterized by intense global competition, deregulation, and technological advancements, this era saw a surge in corporate downsizing as a means to enhance efficiency and competitiveness. Despite the strategic intentions, layoffs often signal underlying organizational challenges, prompting critical inquiry into their short- and long-term impacts on firm performance and investor sentiment. Central to this study is the exploration of whether a firm's Altman Z-Score, a metric predicting bankruptcy risk, influences stock price reactions following layoff …

Labor Versus Capital: Impacts Of Employment Lawsuits On Capital Expenditures, Victoria Williams

CMC Senior Theses

This thesis explores the relationship between employment-related litigation and capital expenditures (CapEx) within firms, particularly focusing on the trade-off between labor and capital as automation becomes increasingly viable. It investigates whether legal challenges in the form of labor lawsuits prompt companies to increase investments in automation to mitigate future labor risks and costs related to employing human workers. The research includes analysis of the impact of litigation on CapEx across different time periods and industries. Results suggest a significant, though not unequivocally robust, positive correlation between litigation and CapEx increases. Notably, the impact of litigation on CapEx was more pronounced …

How Did The Implementation Of Asc 842 Affect Credit Markets And Stock Performance Among Publicly Traded Firms With Extensive Lease Obligations?, Eduardo Hernandez

CMC Senior Theses

I investigate whether the mandatory lease capitalization under ASC 842 led to measurable shifts in market-based assessments of firm risk, from both a creditor and investor perspective. Sampled firms and financial quarters are segmented based on lease intensity (a proxy for a firm’s reliance on leases) and firm size (based on market capitalization). Contrary to initial expectations, the results suggest that firms with higher lease intensity experienced a significant increase in stock returns and a decline in bond yields following the implementation of ASC 842, which indicates that the added transparency may have reassured equity and credit investors. This study …

Accounting Metrics And Stock Sensitivity: A Comparative Analysis Between Small Cap And Large Cap Companies, Diana B. Carranza

CMC Senior Theses

This study examines whether the cumulative abnormal returns (CARs) of small-cap companies are more sensitive to accounting metrics such as return on assets (ROA), return on investment (ROI), return on equity (ROE), and the debt-to-equity (D/E) ratio compared to large-cap companies. Using a sample of firms from the S&P 500 and S&P 600, moderated linear regression models were applied to test the relationship between profitability, leverage, and stock price reactions. The models include interaction terms with firm size and control for time-fixed effects. The results show that while profitability metrics are positively and significantly associated with CARs for large-cap firms, …

Optimal Capital Allocation Decisions And Investments In The Nba, Anderson Cynkar

CMC Senior Theses

This thesis investigates the relationship between salary concentration and winning in the NBA, primarily focusing on how the concentration of payroll among top-earning players influences success. Several concentration metrics were constructed and employed including the use of a Herfindahl-Hirschman Index (HHI) to measure the share of payroll each player receives across a team. I used fixed effects regressions and clustered standard errors at a team level to control for unobserved factors that remain the same over time. The results revealed a consistent inverted U-shape curve, signaling that an optimal concentration of capital exists for the highest paid player, two highest …

The Pricing Of Forecast-Based Earnings Uncertainty In Equity Markets, Brenda G. Galvan

CMC Senior Theses

This paper constructs a firm-level measure of earnings forecast uncertainty by adapting the macroeconomic methodology of Jurado et al. (2015) to micro-level financial statement data from Compustat and CRSP. Using a two-stage estimation procedure, I first forecast the scaled year-over-year changes in earnings, defined as the change in income before extraordinary items normalized by firm sales,based on lagged firm fundamentals. I then model the squared forecast errors to extract the unpredictable component of earnings variation, generating a forward-looking, firm-specific measure of ex-ante uncertainty. Empirically, I examine whether this forecast uncertainty measure is priced in equity markets by regressing future stock …

The Effect Of The Tcja And Cares Act On Charitable Contributions And The Financial Health Of The Nonprofit Sector, Nathanio A. Bright

CMC Senior Theses

This thesis examines the impact of the Tax Cuts and Jobs Act of 2017 and the Coronavirus Aid, Relief, and Economic Security Act of 2020 on charitable contributions and nonprofit financial health. The standard deduction increase introduced by the TCJA disincentivized middle to low-income earners from making contributions. In March 2020, Congress temporarily increased the AGI limit on charitable deductions while simultaneously offering an above-the-line deduction for all U.S. taxpayers. While earlier studies have analyzed the effect of the TCJA in disincentivizing charitable contributions, no study has examined the moderating effect of the TCJA and CARES Act in affecting contributions …

The Counter-Cyclicality Of Earnings Management: Evidence Through 2024, William J. Hall

CMC Senior Theses

This thesis examines the relationship between macroeconomic conditions and earnings management, extending the analysis of Hillegeist and Lin (2019) using updated data through 2024. Based on 16,635 firm-quarter observations, my study affirms the results found in prior literature and confirms that there is a negative association between the change in GDP and the direction of firms’ earnings management behavior, indicating that earnings management is counter-cyclical. My study also finds that firms manage earnings asymmetrically based on the current macroeconomic state, with firms managing earnings more in economic downturns and less in expansions. My findings suggest that despite major macroeconomic and …

The Contributors, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Determinants Of Corporate Capital Structure And The Emerging Role Of Intangibles And Innovation: The Case Of Japanese Corporations, Michael Angelo A. Cortez

DLSU Business & Economics Review

This study aims to modernize capital structure determinants in line with changing economic environments by incorporating the function of intangible assets, particularly innovations, into capital structure decisions. Traditional independent variables such as tangibility, firm size, profitability, growth opportunities, and profitability have been thoroughly researched, but the growing importance of intangible assets and innovations in the contemporary economy with advanced technology calls for a reassessment of their impact on capital structures. I examine 95 enterprises listed in the Nikkei over 11 years (2014–2024) using cross-section generalized least squares regression and dynamic panel data estimation. Results show that corporate leverage decisions (debt-to-equity …

Impact Of International Trade Competitiveness On Unemployment And Poverty Reduction In Ecowas Region, Ikubor Ofili Jude, Yahaya U. Isah, Ojih U. Abraham, Mazeli O. Mark, Abdul Y. Mary

DLSU Business & Economics Review

This study investigates the impact of trade competitiveness on unemployment and poverty in the ECOWAS region. The study relied on POLS, FE, and RE techniques to analyze the impact of export value and trade openness on unemployment and poverty in the ECOWAS region from 2001 to 2020. Annual time series data were sourced from World Bank and World Integrated Trade Solution databases. Major findings from this study show that unemployment responds strongly and favorably to export value and trade openness, whereas poverty responds favorably to trade openness. Further investigation revealed that trade regulatory environment is a determinant of unemployment and …

Assessing The Impact Of Shifting To Non- Combusted Alternatives To Reduce The Economic Cost Of Tobacco-Related Illnesses: A Cost Of Illness Approach In The Philippine Case, Christopher James Cabuay

DLSU Business & Economics Review

Smoking continues to be one of the leading causes of death and disability around the world. Recent health studies, however, have reported that these diseases are more likely to be due to the smoke from burning rather than the actual nicotine content. This study uses a cost-of-illness approach in estimating the cost of smoking-related illness in the Philippines and calculating the potential reduction in costs if a significant portion of the adult smoking population switches to the exclusive use of non-combusted alternatives (NCAs), which drastically reduces the risk of contracting smoking-related diseases. This study finds that cost reductions in the …

Vocational Education And Training (Tvet) And Its Impact On The Employment Prospects Of The Als Graduates, Martha Joy J. Abing, Mitzie Irene P. Conchada

DLSU Business & Economics Review

The pressure for technical-vocational education and training to deliver skilled and competent laborers has become a major concern in the labor market. As such, the strong desire to explore the effectiveness of TVET’s skills training programs remains. There is limited literature on the employability of the alternative learning system graduates in comparison to those graduates of the ALS program who did not pursue TVET. Using the dataset of the World Bank STEP Skills Measurement Household Survey for the Philippines, 2015-2016, this study seeks to determine whether completing TVET has significantly increased the employability of ALS graduates. Utilizing the method of …

A Review Of Climate Change And Its Financial Impact On The Transportation Sector, Ray Anthony L. Almonares

DLSU Business & Economics Review

In this paper, I review the existing literature on climate risks—both transition and physical—and their relationship with firm performance, with a specific focus on transportation finance. I find that the broad literature on carbon emissions and firm performance overlooks two critical characteristics of the global transportation sector: its heavy reliance on fossil fuels and the international scope of its operations. As a result, the conclusions drawn from this body of work may not be directly applicable to global transportation companies. Furthermore, I examine existing studies on extreme sea levels and the global maritime transportation sector, noting that these studies have …

Individuals' Trust Of Bank Acquisitions, Christy Mccollum Knight

Graduate Theses, Dissertations, and Problem Reports (ETD)

Recent transactions within the financial services industry have seen an uptick in credit unions acquiring traditional community banks. Between the years 2020 and 2024, there were 64 announced bank mergers and acquisitions by Credit Unions, and this trend is expected to continue (S&P, 2025). As there are fundamental differences between credit unions and traditional community banks, the question arises, “How will consumer confidence and trust be affected by these mergers and acquisitions?”

This dissertation investigated how consumer trust would be affected by their propensity to trust others (Disposition to Trust), their perception of the financial services industry (Institution-Based Trust), their …

The Dark Tetrad And The Intention To Invest In Cryptocurrency, Amy Bauer-Sinicin

Graduate Theses, Dissertations, and Problem Reports (ETD)

The Dark Tetrad comprises four distinct negative personality traits with some overlapping qualities: narcissism, Machiavellianism, psychopathy, and sadism. Characterized as being risky and speculative, cryptocurrencies are not backed by government banks like fiat currencies, nor do they offer the same privacy when engaging in transactions.

Narcissists may view cryptocurrency investment as an opportunity to showcase their financial acumen, reinforcing their self-image. Machiavellians see the decentralized, loosely regulated market as ideal for exploiting opportunities through strategic manipulation. Psychopaths, drawn by the market’s volatility, may engage in exploitative schemes for personal gain. Sadists may find satisfaction in the power and control they …

Effect Of Trade Openness On Food Security In Economic Community Of West African States Region, Yahaya Umar Isah, Ikubor, Ofili Jude, Bernard, O. A., Zakari Saheed S., Ayodeji, S.

DLSU Business & Economics Review

This study investigates the impact of trade openness on food security in the ECOWAS trade zone. The study relied on the system GMM approach to analyze the impact of trade openness on overall and disaggregated components of food security in the ECOWAS trade zone during the period 2014 and 2021. Annual time series data were sourced from the Food and Agriculture Organization, World Bank Metadata base, and World Integrated Trade Solution. Major findings from the study reveal that trade openness has a significant positive impact on overall food security indicators. However, trade openness has not significantly impacted food availability and …

The Global Value Chain Effects Of Rcep: Estimating The Impact On The Philippines, Caesar B. Cororaton

DLSU Business & Economics Review

This paper extends the global CGE model results of Cororaton (2022) by disaggregating further the RCEP trade creation effects on the Philippines into global value chain (GVC) impacts. The GVC analysis indicates that the trade agreement in RCEP results in higher Philippine exports of US$ 2.8 billion in 2031, of which the increase in Philippine domestic value added is US$ 2.4 billion, significantly higher than the foreign value added of US$ 403 million. Electronic products contribute 67% of the value added generated within the Philippines. The increase in the import contents of Philippine exports is only US$ 413 million. Furthermore, …

The Future Performance Implications Of Non-Gaap Motivated Investment, Minkwan Ahn, Theodore E. Christensen, Ryan G. Johnson, Melissa F. Lewis-Western

Faculty Publications

We investigate whether consistent non-GAAP reporting is associated with investment efficiency. Prior research finds a positive association between non-GAAP reporting and investment levels, concluding that it represents overinvestment. We corroborate this positive association, but additional tests are not consistent with the conclusion of inefficient overinvestment. Specifically, we explore the relation between investment and future cash flows as a proxy for the realization of investments in positive net present value projects. We find that the investments of firms that consistently report non-GAAP metrics are associated with similar or higher future cash flows than the investments of firms reporting only GAAP earnings, …

Price Transparency And Patient Engagement: Social Messaging Matters, Jace B. Garrett, Keaton C. Helquist, Steven D. Smith, William B. Tayler

Faculty Publications

OBJECTIVES: To examine the effects of price transparency and prosocial messaging on price-protected consumers’ health care choices as a potential cost-saving strategy to manage rising US health care expenditures.

STUDY DESIGN: Cross-sectional study. Participants were recruited to complete a basic questionnaire via Amazon’s Mechanical Turk program. Participants’ selections were subsequently collected and analyzed.

METHODS: Participants (N = 567) selected a sleep study provider from 5 options, with manipulations including financial responsibility, provision of price information, and a prosocial message encouraging high-value options.

RESULTS: Price transparency increased the selection of lower-cost options among participants who were solely responsible for paying for …