Corporate Finance Commons^™

Corporate Venture Capital And Its Effects On Company Valuation - An Analysis Of The Additions Of Cvc Arms, Joshua Lyman

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper examines the stock price reaction to the addition of corporate venture capital arms to publicly traded companies. Referencing venture capital resources, corporate press release announcements of the addition of CVC arms were hand collected. I calculate the cumulative abnormal returns (CARs) surrounding press release announcement dates and find immediate stock market reactions, positively increasing stock prices compared to the overall market. I further perform placebo event studies at random dates and with direct competitors using the same announcement dates and find no significant results. These findings suggest that corporate venture capital increases company valuation and that financial markets …

How Has Covid-19 Affected Financial Gains Of Big-Tech Companies?, Erin Flanigen

Finance Undergraduate Honors Theses

This study investigates the impact of the COVID-19 pandemic on the financial returns received by Big-Tech companies in order to predict future financial returns and related business activities. The main objectives of this paper are to delineate business models and financial statements of Big-Tech companies prior to and during the COVID-19 pandemic, present ample, relevant economic information regarding COVID-19, and encompass the effects of COVID-19 on global economies. This study then predicts the future economic effects of COVID-19 on Big-Tech companies. The selected Big-Tech companies included in this study are Facebook, Alphabet (Google), Apple, Microsoft, and Amazon; each company saw …

Effect Of Information Technology Capital: Technology Infrastructure, Database, Software, And Brainware Toward Optimize The Use Of Information Technology (Case Study : Uin Sunan Ampel Of Surabaya), Rismawati Br Sitepu, Ilham M.Said, Tanti Handriana, Praptini Yulianti

Library Philosophy and Practice (e-journal)

This research was conducted to determine the extent of the influence of technology infrastructure costs, software costs, database costs and brainware costs to increase the information technology budget of the Sunan Ampel State Islamic University in Surabaya and efficient use of the budget. The purpose of this study is to prove that there is a positive and significant influence of technology infrastructure costs, software costs, database costs and brainware costs to increase information technology budgets by using validity and reliability tests and classic tests such as the Normality test, Multicollinearity test, autocorrelation test, Heteroskedasticity test , and Linearity test. This …

Stock Trend Prediction Using Candlestick Charting And Ensemble Machine Learning Techniques With A Novelty Feature Engineering Scheme, Yaohu Lin, Shancun Liu, Haijun Yang, Harris Wu

Information Technology & Decision Sciences Faculty Publications

Stock market forecasting is a knotty challenging task due to the highly noisy, nonparametric, complex and chaotic nature of the stock price time series. With a simple eight-trigram feature engineering scheme of the inter-day candlestick patterns, we construct a novel ensemble machine learning framework for daily stock pattern prediction, combining traditional candlestick charting with the latest artificial intelligence methods. Several machine learning techniques, including deep learning methods, are applied to stock data to predict the direction of the closing price. This framework can give a suitable machine learning prediction method for each pattern based on the trained results. The investment …

Tree-Based Algorithm For Stable And Efficient Data Clustering, Hasan Aljabbouli, Abdullah Albizri, Antoine Harfouche

Department of Information Management and Business Analytics Faculty Scholarship and Creative Works

The K-means algorithm is a well-known and widely used clustering algorithm due to its simplicity and convergence properties. However, one of the drawbacks of the algorithm is its instability. This paper presents improvements to the K-means algorithm using a K-dimensional tree (Kd-tree) data structure. The proposed Kd-tree is utilized as a data structure to enhance the choice of initial centers of the clusters and to reduce the number of the nearest neighbor searches required by the algorithm. The developed framework also includes an efficient center insertion technique leading to an incremental operation that overcomes the instability problem of the K-means …

The Innovation Effect Of Dual-Class Shares: New Evidence From Us Firms, Xiaping Cao, Tiecheng Leng, Jeremy C. Goh, Paul Malatesta

Research Collection Lee Kong Chian School Of Business

The proliferation of dual-class structures in the US stock market presents a controversial trend since such shares are traditionally deemed to damage governance quality. We study the relationship between 362 firms with dual-class shares and their innovativeness using patent citations from Google Patents over the 1976 through 2006 period. We find dual-class shares have significant innovation effect in high-tech sectors, hard-to-innovate industries, firms with higher external takeover threat and firms heavily dependent on external equity financing. We also document a positive causality relationship between dual-class structures and the quality of innovation. The channel for this causal relationship is the protection …

The Substantial Growth Of Shadow Banking, Financial Technology And Digital Currency And Their Respective Roles In Shaping The Next Financial Crisis, Vardhan S. Chulani Mr.

Undergraduate Economic Review

Based on Goldman Sachs’ model and the state of current affairs, an underlying possibility of a financial crisis occurring in the foreseeable future does exist. This could be due to ongoing trade war and negotiations with different countries, the new policies introduced by political parties and their respective impacts, high amounts of corporate and student debts along with auto loans in the economy, thus indicating signs of excessive leverage and resulting in depressing consumer confidence. International issues such as Brexit, the existing currency and debt crisis with Turkey, and China’s debt bubble could also contribute to the global growth slowdowns. …

The Layers Of Digital Financial Innovation: Charting A Regulatory Response, Teresa Rodriguez De Las Heras Ballell

Fordham Journal of Corporate & Financial Law

The increasing penetration of digital technologies in financial markets is evidenced by promising adoption rates among users, expanding presence of fintech firms and bigtech providing techfin services, and the growing use of fintech solutions by incumbents. The increasingly popular term "fintech" captures the accelerated transformation of contemporary financial markets driven and enabled by technology, and encapsulates its multifarious potential impact on services, market structures, and business models. This Article first aims to devise and propose an analytical framework to understand the digital challenges to financial regulation based on the "layers of digital financial innovation" theory. Accordingly, digital innovation (fintech) is …

The Futurist, Ryan Stenquist

Marriott Student Review

Ubiquitous self-driving cars, robot workers, and massive political shifts may seem far away and irrelevant to our day to day lifestyles. However, Mr. Schenker proves that these changes are fast-approaching and come as timely responses to the problems and opportunities of today.

Strategic Alliances Between Banks And Fintechs For Digital Innovation: Motives To Collaborate And Types Of Interaction, Milan Frederik Klus, Todor Stefan Lohwasser, Friedrich Holotiuk, Jürgen Moormann

The Journal of Entrepreneurial Finance

In times of digitalization, established firms operating in the financial services sector increasingly form alliances with start-up companies to satisfy the customers´ demand for rapid innovation and cope with the growing dynamics of markets. Technology-enabled innovation challenges traditional business models of incumbent institutions (e.g., banks) and requires them to adapt swiftly to the needs of the digital age. However, young firms providing technological solutions for the financial services industry (fintechs) also face difficulties, such as meeting regulatory requirements and winning the trust of potential customers. To compensate for these shortcomings and to exploit synergies, banks and fintechs are increasingly pooling …

An Examination Of The Stock Market's Effect On Economic Inequality, Nicholas Golina

Williams Honors College, Honors Research Projects

The economic literature on economic inequality has shown that it can negatively impact aggregate demand because it indicates a higher concentration of wealth in the hands of the top 10% as opposed to the poor and middle class, who are more likely to consume. The literature has identified many factors that can lead to increasing inequality. The stock market could be one of those factors since it can either create an upward redistributive effect towards the top 10% or redistributive effect towards the middle class. This paper tested the effect of the stock market on inequality. This study contributes to …

Discussion Of The Potential Of Blockchain In Finance, Andrew Kincaid

Finance Undergraduate Honors Theses

This paper analyzes the current application of blockchain technology to demonstrate its disruptive potential has across different financial industries. This paper analyzes the potential difficulties that blockchain technology must face and overcome to realize this potential. Blockchain is currently in a stage in its development where there has not been enough research done to provide empirical answers to its benefits or added costs; however, there have been many early innovations that have helped propel blockchain forward. Blockchain in corporate finance is primarily used in corporate governance where blockchain has the ability to increase transparency and reduce possible corruption. Blockchain has …

Cryptocurrency Fraud: A Look Into The Frontier Of Fraud, Stafford C. Baum

Honors College Theses

This research project was conducted to look into what sort of frauds can be committed to steal unsuspecting investors’ cryptocurrencies. The inspiration for this research came in the form of the fact that millions of dollars are lost to cryptocurrency fraud each day, and many of these frauds are successful due to the public’s naivete towards the dangers of investing in cryptocurrencies. After researching many different cryptocurrency fraud cases, the frauds could be categorized into four major categories. These categories include Ponzi schemes, fake initial coin offering schemes, pump and dump schemes as well as cryptocurrency theft.

Reflective Practice Series: Selected Instructional Models Using Synchronous Video Conferencing Software, Martin W. Sivula

MBA Faculty Conference Papers & Journal Articles

With the vast array of resources available to instructors, one would think that instruction and teaching would yield success for all learners. Now, well into the 21^st century has much changed in the classroom? Certainly, movable desks and chairs, advanced audio and visual equipment, and a plethora of all types of technologies which might be able to enhance training and education. Over the last several decades research on individualized instruction, cognitive science, educational psychology, and multimedia instruction (to name a few) have permeated the literature on instruction. With all the research and the vast array of studies on improving …

Glossary Of Business Evidence, Paul C. Boyd

MBA Faculty Conference Papers & Journal Articles

No abstract provided.

Funding Science With Science (And, Admittedly, A Lot Of Math), John R. Ziegler, Dylan Hunzeker, Edward Lehner

Publications and Research

Scientific funding within the academy is an often complicated affair involving disparate and competing interests. Private universities, for instance, are vastly outpacing public institutions in garnering large, prestigious grants. Inequities also extend to the kinds of research funded, with government, corporate, and even military interests privileging certain types of inquiry.This work proposes an innovative type of research fund using cryptocurrencies, a fast growing asset class. Although not a total funding solution, staking coins, specifically, can be strategically invested in to yield compound interest. These coins use central hub technology to collateralise the network and speed transaction pace. Additionally. These staking …

The Big Patent Short: Hedge Fund Challenges To Pharmaceutical Patents And The Need For Financial Regulation, Ariel D. Multak

Fordham Journal of Corporate & Financial Law

The enactment of the America Invents Act (AIA) in 2011 ushered in a new system for post-grant patent review. In the interest of enhancing the efficiency of the patent regime by invalidating “bad” patents, certain requirements were relaxed. For example, the AIA created an examination process called inter partes review, which allows a party without legal standing to challenge the validity of a patent in front of the Patent Trial and Appeal Board. In the pharmaceutical patent context, it was expected that inter partes review would be utilized mostly by generic drug makers seeking to invalidate patents without incurring the …

Event-Based Biotechnology Stock Price Movement: Valuing Success And Failure In Biotechnology Product Development, Faris Sumadi

Honors College Theses

Biotechnology investment, in the second quarter of 2015, hauled in a record $2.3 billion worth of venture capital. The 126 deals struck marked the biggest quarterly investment (up 32% from the prior quarter) since reporting started in 1995. With $3.8 billion invested in these pre-IPO ventures by mid-2015, the biotech industry soared past the $6 billion of venture capital cash invested in 2014. These numbers illustrate how early-stage research, with unproven science, has been revived after a decade of VCs shying away. Out of the $2.3 billion raised in Q2, $1.5 billion went to early-stage companies while $733 million went …

Perceived Risk Reduction In E-Commerce Environments, C. Michael Powell, Chris Conca

Atlantic Marketing Association Proceedings

During the past three decades, the growth of e-commerce has presented marketers with many new arenas for research and application. Certainly e-commerce has become a significant portion of the world economy and in particular the consumer sector. As previous literature has consistently considered perceived risk as a major factor consumer purchase decisions, this research identifies several major components of consumer perceived risk (PR) and their normative implications in the e-commerce environment

The Relevance Of Economic, Institutional And Cultural Determinants For Venture Capital Investments. A Us-Europe Comparison., Nadja Benes

Master's Theses

This study analyzes the determinants of early-stage VC investments by identifying characteristics in the economic, institutional, as well as cultural framework that could explain the diverging levels of early-stage VC investments across countries. Data was assembled for 16 countries during the period from 1995 until 2013. The results indicate that countries that are more open to trade are associated with higher levels in early-stage venture capital. A higher unemployment rate negatively affects a country’s level of early-stage VC funds. Higher R&D expenditures as a proxy for the technological and innovation capacity in a country as well as a higher value …

Financial Resources And Technology To Transition To 450mm Semiconductor Wafer, Thomas Earl Pastore

2010-2016 Archived Posters

Financial models that can be applied by management to build giant wafer foundries to manufacture low cost semiconductor products are demonstrated. This advanced semiconductor technology will likely drive a new frontier called the Internet of Everything, an expected $14 trillion market that will likely contribute to global positive social change.

Dynamic Advantage, Stephen Wyatt

Asian Management Insights

Reaping the advantages of a global resource network.

Do Managers Use Meeting Analyst Forecasts To Signal Private Information? Evidence From Patent Citations, Katherine Gunny, Tracey Chunqi Zhang

Research Collection School Of Accountancy

This study examines whether firms manage earnings to meet analyst forecasts to signal superior future performance. Prior research finds that firms use earnings management to just meet analyst forecasts and that these firms have a positive association with future performance (Bartov et al., 2002). There are two potential explanations for the positive association – signaling and attaining benefits that allow for better future performance (i.e., the real benefits explanation). Prior studies cannot provide evidence of signaling because they do not control for the real benefits explanation. Our research design enables us to control for the real benefits explanation because we …

Aspirations, Innovation, And Corporate Venture Capital: A Behavioral Perspective, Vibha Gaba, Shantanu Bhattacharya

Research Collection Lee Kong Chian School Of Business

This study takes an organizational decision-making perspective to examine when firms are likely to utilize CVC units as a mechanism for externalizing R&D. We draw insights from the behavioral theory of the firm to argue that managerial aspirations for innovation-related goals are an important driver of CVC initiatives within firms. We test our argument by examining both the adoption and termination of CVC units for a sample of information technology firms from 1992 to 2003. Results show that a firm is more likely to adopt and less likely to terminate a CVC unit when its innovation performance is closest to …

F.A.C.E.S. (Faculty Academic Community Education Showcase): Professional Growth Experiences In A Career University, Paul J. Colbert, Ph.D.

MBA Faculty Conference Papers & Journal Articles

Institutes of higher education exist for the purpose of developing, fostering, nurturing, and stimulating the intellectual growth and development of students. The core values of a college education provide students conceptual and practical educational opportunities that focus on improving their skills and knowledge. These skills and knowledge translate into purposeful, real-life learning experiences. However, in the academic community, learning is not restricted to students. Faculty, too, must be supported and provided opportunities for personal and professional growth and development. Although professional development is not a novel concept in the education profession, schools often take up the gauntlet, but fall short …

Lessons From The Flash Crash For The Regulation Of High-Frequency Traders, Edgar Ortega Barrales

Fordham Journal of Corporate & Financial Law

Are equity markets vulnerable to a sudden collapse if the traders who account for about half of the volume have no regulatory obligations to stabilize prices? After the “Flash Crash” of May 6, 2010, policymakers have resoundingly answered this question in the affirmative. During the worst of the crash, some of the so-called high-frequency trading firms that dominate equity markets stopped trading and prices collapsed, momentarily wiping out almost $1 trillion in market value. In response, the U.S. Securities and Exchange Commission is considering whether high-frequency trading firms should be required to act as the traders of last resort. This …

Effects Of Early Round Venture Capital Syndication On Ipo Exits In Europe And The United States, Rosabella M. Magat

CMC Senior Theses

While the importance of venture capital (VC) can be highlighted by policy goals outlined in the 'Lisbon agenda', the European VC industry remains nascent in comparison to the more sophisticated VC market in the US. Researchers have identified key determinants that foster VC success on a broad level, and have often identified syndication as an important factor of success. This paper seeks to understand the role of syndication on the VC-backed company's success. I take a novel departure from past research in this area in three ways 1) I measure performance from the perspective of the portfolio company, rather than …

Creditor Rights And R&D Expenditures, Bruce Seifert, Halit Gonenc

Finance Faculty Publications

Manuscript Type: Empirical

Research Question?Issue: This study examines the impact of creditor rights on R&D intensity (R&D/total assets). We argue that managers in countries with strong creditor rights have more incentives to reduce cash flow risk and therefore limit expenditures on R&D more than managers located in countries with weak creditor rights.

Research Findings/Insights: Using a sample of over 21,000 firms from 41 countries, our research is one of the first to document that strong creditor rights are indeed associated with reduced R&D intensity. This negative relationship is observed in market‐based countries, but not in bank‐based countries. Moreover, the results …

Developing A Culturally Responsive Classroom Collaborative Of Faculty, Students, And Institution, Paul J. Colbert

MBA Faculty Conference Papers & Journal Articles

Culture is integral to the learning process. It is the organization and way of life within the community of students and teachers and directs the way they communicate, interact, and approach teaching and learning. Although founded in particular values and principles, the academy, like most organizations, is impacted day-to-day by its culture. Yet, the traditional higher education institution has not been designed to operate within a racially or ethnically diverse student population. The social, political, economic, and cultural forces that support the institution influence the teaching and learning environments. To better address cultural diversity in the classroom, faculty must first …

Bankers Perceptions Of Electronic Banking In Pakistan, Ahmad Kaleem, Saima Ahmad

Business Review

Electronic distribution channels provide alternatives for faster delivery of banking services to a wider range of customers. E-channels have gained increasing popularity and have attracted the attention of both academics and practitioners. This paper aims to collect bank employees’ perceptions of the potential benefits and risks associated with electronic banking in Pakistan. The outcomes may help the management of banks develop effective strategic planning for the future of electronic banking in developing countries like Pakistan. Primary sources were used to collect the data and were analyzed via frequency analysis and mean score analysis. The results suggest that bankers in Pakistan …