Corporate Finance Commons^™

Exploring Determinants Of Value For Money And Bundling Effects On Public–Private Partnership Projects: A Data-Driven Empirical Study, Gaurav Khadka

Department of Construction Engineering and Management: Dissertations, Theses, and Student Research

Public–private partnerships (P3s) are widely used to deliver public infrastructure, yet current understanding of what drives variation in Value for Money (VfM) and the effectiveness of project delivery strategies such as bundling remains largely conceptual and grounded in perception-based evidence. Consequently, governments lack empirically validated guidance on which project, financial, and macroeconomic conditions meaningfully influence VfM outcomes and whether bundling improves project performance within the P3 context. This study addresses these gaps through an integrated analysis of 180 Canadian P3 infrastructure projects (1992–2020), one of the most comprehensive datasets of realized VfM internationally, incorporating project characteristics, financial arrangements, and macroeconomic …

Where Intangibles Travel: Essays On The Tax-Motivated Geography Of Innovation And Capital, Xuerui Kou

Dissertations and Doctoral Documents, University of Nebraska-Lincoln, 2023–

This dissertation explores how taxation and institutional environments shape the global strategies of United States multinational enterprises (MNEs), with a particular focus on intangible assets and the cross-border allocation of innovation. Positioned at the intersection of international trade, public economics, and innovation studies, the three chapters collectively examine firm responses to international tax incentives and regulatory asymmetries.

Chapter 1 introduces the motivation and theoretical foundations of the dissertation, reviews related literature, and outlines the core research questions and empirical strategies. It highlights the increasing policy and academic interest in the geographic mobility of intangible capital, particularly in the context of …

Planting The Seed: Rumors And Ceo Dismissal, Diego Villalpando

Dissertations and Doctoral Documents, University of Nebraska-Lincoln, 2023–

Researchers have investigated the short-term performance implications of CEO dismissals as assessed through investor reactions to CEO dismissal announcements. While the corporate governance mechanism of dismissal that boards orchestrate when CEOs underperform could be positively perceived by investors, empirical evidence suggests that a positive association between CEO dismissals and investor reactions is equivocal. Thus, in my dissertation, I examine investor reactions to S&P 500 dismissal announcements and further understanding about this intriguing relationship through the development of theory that incorporates the important theoretical mechanism of information uncertainty. Since it is increasingly hard for boards to reduce the information uncertainty surrounding …

Vale Strategic Audit, Nikolas Mancio

Honors Program: Senior Projects (Public)

The Chinese government is critical in shaping the global mining and metals industry, specifically for companies like Vale S.A., the world’s largest iron ore and nickel producer. China’s dominance as the largest importer of iron ore significantly impacts commodity prices and demand, with its government exerting substantial influence through production quotas, infrastructure spending, and environmental regulations. Vale’s strategic position in the Chinese market is a cornerstone of its operations. It is supported by investments in distribution centers, blending facilities, and high-grade iron ore that align with China’s environmental goals. However, this reliance also makes Vale vulnerable to shifts in Chinese …

2024 Nebraska Agricultural Custom Rates With Statewide Survey Summary, Glennis Mcclure

Cornhusker Economics

The 2024 University of Nebraska-Lincoln Custom Rates Survey indicates that rate increases are the norm since the latest survey was completed in 2022. Table 1 provides a summary and percentage change for several common custom operations from 2022 to 2024. Custom field operations such as drilling and planting show increases in 2024 from seven to twenty-seven percent and harvesting rates for various crops indicate state average rate increases from fourteen to twenty-three percent, with the irrigated corn harvest now at $47.84 per acre for the state average. Other custom services, such as spraying for weed control using a self-propelled sprayer, …

Bidding Strategy For A Wind Power Producer In Us Energy And Reserve Markets, Anne Stratman

Department of Electrical and Computer Engineering: Dissertations, Theses, and Student Research

Wind power is one of the world's fastest-growing renewable energy resources and has expanded quickly within the US electric grid. Currently, wind power producers (WPPs) may sell energy products in US markets but are not allowed to sell reserve products, due to the uncertain and intermittent nature of wind power. However, as wind’s share of the power supply grows, it may eventually be necessary for WPPs to contribute to system-wide reserves. This paper proposes a stochastic optimization model to determine the optimal offer strategy for a WPP that participates in the day-ahead and real-time energy and spinning reserve markets. The …

Lockheed Martin Strategic Audit, Trevor Deboer, Gunnar Lombard, Sam Nelson, Tj Taylor, Paul Wynegar

Honors Program: Senior Projects (Public)

Abstract

This case study explores Lockheed Martin, a global leader in defense contracting. Our team performed a strategic audit using the theories of strategic management. Our research was pulled from various sources, including Lockheed Martin’s website, SEC filings, related news articles, and relevant industry analysis. The goals of this case study revolved around collecting data and performing analysis to evaluate Lockheed Martin’s potential for competitive advantage in the airplane and parts manufacturing industry.

Some of the various analyses performed on Lockheed Martin include firm analysis, industry analysis, internal analysis, external analysis, competitive dynamics, business-level strategy, corporate-level strategy, and exploring their …

Lululemon Strategic Audit, Tessa Mozingo, Olivia Eno, Molly Mitchell, Connor Morrissey, James Eshleman

Honors Program: Senior Projects (Public)

This case study focuses on lululemon, a prominent athleisure apparel company. Our team conducted an audit of the company revolving around strategic business management principles. Our research used publicly available information that included the company’s website, SEC filings, news articles, lululemon’s annual reports, financial statements, IBIS industry reports, and online sources. The goal of this strategic audit is to develop an understanding of lululemon’s business activities and strategies, collect and analyze both internal and external data, and evaluate lululemon based on strategic management concepts.

In this strategic audit, we conduct internal, external, performance, and competitive analyses and an examination of …

Jp Morgan Chase Strategic Analysis, Carson Swartzbaugh

Honors Program: Senior Projects (Public)

JP Morgan Chase is an American financial institution that touches all sides of the financial sector, including commercial banking, consumer banking, investment banking, and asset management, to name a few. JP Morgan Chase is the largest American Bank and a global leader in the financial industry. A PESTEL analysis of JP Morgan Chase and the financial sector of the United States will give an overall view of the industry while providing critical insight into the opportunities and challenges faced by JP Morgan Chase and its competitors. Additionally, Porter’s Five Forces will focus on the competitive environment in which JP Morgan …

Coinbase Global Inc. Strategic Audit, Decker Bobin

Honors Program: Senior Projects (Public)

Coinbase is a cryptocurrency exchange founded in the U.S during 2012 by Brian Armstrong and Fred Ehrsam. Coinbase’s application allows users to buy, sell, and exchange different cryptocurrencies on the open market. Cryptocurrencies are digital assets used as a medium to quickly transfer value, globally, without any middleman. Some cryptocurrencies have different technology than others, but all are based on blockchain, and cryptography. Blockchain technology allows transactions to be built into a chain that is forever accessible, hence the name “public ledger.” Cryptography is what ensures ultimate ownership, through seed phrases, and security through encryption. Coinbase has several large competitors …

A Strategic Audit Of Seaworld, Rachel Jendro

Honors Program: Senior Projects (Public)

This project is a strategic audit for SeaWorld Entertainment. The purpose of this report is to analyze the firm through multiple different perspectives and analyze the competitive advantage the business is pursuing. The project considers internal and external environments, strategic leadership, organizational structure, and resources to determine if and what type of competitive advantage the firm holds. Furthermore, it considers current events and strategic decisions, and how those relate to the overall strategy. A strategic audit is crucial to understanding the innerworkings of a firm. The factors that were analyzed are interconnected and performing a strategic audit can allow for …

A Strategic Audit Of A24, Jackson Bartak

Honors Program: Senior Projects (Public)

A24 is an independent film production and distribution company founded in 2012. The company performs both duties for independent films as well as television programs, and a small portion of company revenue comes from merchandise it sells in an online kiosk. As of 2021, A24 had around 300 employees while maintaining a large catalog of movies and shows. Using a focus strategy, the company targets a more cultured audience for its unique (and sometimes outright bizarre) subject matter. To achieve this, A24 attempts to cast top B-list personnel both in acting and technical roles in order to corner its market. …

The Business Case For Industrial Safety: Revealing The Comprehensive Value Of Ergonomic Investments For Manufacturing Enterprises In Industry 4.0, Shane Stan

Honors Program: Senior Projects (Public)

How can today’s manufacturing enterprises construct, implement, and optimize modern safety initiatives in a manner that will present maximum return on investment and facilitate enterprise growth? Furthermore, how can these manufacturers assure individual ergonomic investments become part of a larger strategy to facilitate organizational change in safety? This work addresses these questions by placing industrial ergonomics in a business improvement context which comprehensively presents the financial returns and growth opportunities poised by modern safety initiatives. Additionally, to further strengthen the business case for industrial safety, an ergonomic action planning framework is established to guide the creation of holistic safety programs …

Activist Investors: A Corporate Social Responsibility Perspective On Hedge Fund Activism And The Need For Focus On All Stakeholders, Lucy Marie Ankenbauer

Honors Program: Senior Projects (Public)

Corporate social responsibility (CSR) can result in distinctly different visions when instituted under the enlightened stakeholder theory or the shareholder maximization theory. The critical variation between these two theories is the principal party that businesses consider when instituting strategic decisions. Firms following the enlightened stakeholder theory will base decisions on all the various stakeholders of the company and develop policies which increase long-term firm value. Companies pursuing shareholder value maximization will consider all strategies through the eyes of the stockholders and how these individuals will be affected. Neither theory is more valid than the other, since many factors must be …

Two Essays On Stock Repurchases And Insider Trading, Noel Pavel Nangatie Jeutang

College of Business: Dissertations, Theses, and Student Research

The first essay examines how the outcome of prior repurchasing activity influences future repurchasing decisions. We find strong evidence that future decisions to repurchase equity are negatively influenced by poorly timed past repurchases. Specifically, we show that the past losses on stock repurchases reduce the propensity to engage in additional repurchases in the future. We find almost no evidence that past gains on repurchases positively or negatively influence future repurchasing activity. These results are robust to various firm characteristics, estimation and sampling methods. Further analyses show that losses on past repurchases influence dividend policy. We show that the dividend-repurchase substitution …

Pricing Mortality Securities With Correlated Mortality Indexes, Yijia Lin, Sheen Liu, Jifeng Yu

Department of Management: Faculty Publications

This article proposes a stochastic model, which captures mortality correlations across countries and common mortality shocks, for analyzing catastrophe mortality contingent claims. To estimate our model, we apply particle filtering, a general technique that has wide applications in non-Gaussian and multivariate jump-diffusion models and models with nonanalytic observation equations. In addition, we illustrate how to price mortality securities with normalized multivariate exponential titling based on the estimated mortality correlations and jump parameters. Our results show the significance of modeling mortality correlations and transient jumps in mortality security pricing.

The Predictive Content Of Aggregate Analyst Recommendations, John S. Howe, Emre Unlu, Xuemin (Sterling) Yan

Department of Finance: Faculty Publications

Using more than 350,000 sell-side analyst recommendations from January 1994 to August 2006, this paper examines the predictive content of aggregate analyst recommendations. We find that changes in aggregate analyst recommendations forecast future market excess returns after controlling for macroeconomic variables that have been shown to influence market returns. Similarly, changes in industry-aggregated analyst recommendations predict future industry returns. Changes in aggregate analyst recommendations also predict one-quarter-ahead aggregate earnings growth. Overall, our results suggest that analyst recommendations contain market- and industry-level information about future returns and earnings.

A Note On The Instability Of The Unprojected Individual Level Premium Cost Method, Pierre Devolder, Valerie Goffin

Journal of Actuarial Practice (1993–2006)

We compare the unit credit and the unprojected individual level premium cost methods in a continuous time environment and show that the latter may produce unstable contribution rates in a dynamic environment. Specifically, assuming there are no unfunded liabilities, we prove that the unprojected individual premium cost method may produce non-bounded contributions if benefits change too close to the normal retirement age.

Journal Of Actuarial Practice - Volume 13 (2006) - Contents And Masthead

Journal of Actuarial Practice (1993–2006)

Contents

Editorial Policy: Topics suitable for this journal include AIDS, annuity products, asset-liability matching, cash-flow testing, casualty rate making, credibility theory, credit insurance, disability insurance, expense analysis, experience studies, FASB issues, financial reporting, group insurance, health insurance, individual risk taking, insurance regulations, international issues, investments, liability insurance, loss reserves, marketing, pensions, pricing issues, product development, reinsurance, reserving issues, risk-based capital, risk theory, social insurance, solvency issues, taxation, valuation issues, and workers' compensation

Review Process

Editor - Colin Ramsay, University of Nebraska

Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of Omaha ○ Ruy Cardoso, Actuarial Frameworks ○ …

Estimation Of Large Insurance Losses: A Case Study, Tine Buch-Kromann

Journal of Actuarial Practice (1993–2006)

This paper demonstrates an approach to analyzing liability data recently developed by a Danish insurance company. The approach is based on a Champernowne distribution, which is corrected with a non-parametric estimator. The correction estimator is obtained by transforming the data set with the estimated modified Champernowne cdf and then estimating the density of the transformed data set by using the classical kernel density estimator. Our approach is illustrated by applying it to an actual data set.

Solvency Of Life Insurance Companies: Methodological Issues, Rosa Cocozza, Emilia Di Lorenzo

Journal of Actuarial Practice (1993–2006)

The paper deals with solvency assessment for life insurance business; some methodological issues concerning the solvency of life insurance companies, particularly connected to the investment risk, are suggested. Considerations about the technical equilibrium of an insurance portfolio and the financial regulation lead to a dynamic system involving risk measure and solvency assessment. The formal model is applied to a life annuity cohort in a stochastic context in order to exemplify the potential of the model, especially referred to the need to frame solvency assessment in a dynamic perspective.

On Some Risk-Adjusted Tail-Based Premium Calculation Principles, Edward Furman, Zinoviy Landsman

Journal of Actuarial Practice (1993–2006)

This paper explores two tail-based premium calculation principles, the tail standard deviation (TSD) premium and the tail conditional expectation (TCE) premium, in their risk-adjusted and unadjusted forms. They are risk-adjusted using so-called distortion functions. We prove that the proportional hazard (PH) risk-adjusted TCE premium is larger than the unadjusted TCE premium. Additionally, given a risk distribution with location and scale parameters, we prove that the PH risk-adjusted TCE premium reduces to the unadjusted TSD premium.

Bayesian Analysis Of A Health Insurance Model, Helio S. Migon, Edison M.O. Penna

Journal of Actuarial Practice (1993–2006)

We consider the problem of determining health insurance premiums based on past information on size of loss, number of losses, and size of population at risk. The size of loss and the number of losses are treated as mutually independent random variables. The number of losses is assumed to follow a Poisson process, and the loss sizes are independent and identically distributed non-negative random variables, and the population at risk is assumed to follow a non-linear growth model. An expression for the premium is obtained through maximization of the insurer's expected utility under a Bayesian model. The parameter estimation process …

Analysis Of An Insurance Risk Model With Thinning Dependence And Common Shock, Lai Mei Wan, Kam Chuen Yuen, Wai Keung Li

Journal of Actuarial Practice (1993–2006)

We consider a continuous-time insurance risk model with m dependent classes of business with dependent claim number processes due to thinning dependence and a common shock. The impact of the dependence is studied via the adjustment coefficient. The case m = 2 is investigated analytically for exponential claim distributions and via simulation for non-exponential claim distributions.

Pricing Insurance Policies With A Distribution-Free Financial Pricing Model, Min-Ming Wen

Journal of Actuarial Practice (1993–2006)

The highly skewed and heavy tailed distributions used to model insurance losses (claims) raise a concern about the validity of the applications of the capital asset pricing model (CAPM) to insurance pricing when market risks are essential. This paper provides an alternative pricing model, called the Rubinstein-Leland model, which can be used to price insurance contracts. The Rubinstein-Leland model has a distribution-free feature that can fully capture the asymmetry embedded in insurance losses. Thus, this model is better able to derive fair prices for insurance policies than is the CAPM.

Bivariate Archimedean Copula Models For Censored Data In Non-Life Insurance, Michel Denuit, Oana Purcaru, Ingrid Van Keilegom

Journal of Actuarial Practice (1993–2006)

We describe a methodology based on Archimedean copulas for analyzing nonlife insurance data with censoring present. Specifically, we propose a graphical selection procedure for the nonparametric estimation of the generator. An actual loss-ALAE data set is used for the numerical illustrations and for comparisons of our approach to a few others.

Consistent Assumptions For Modeling Credit Loss Correlations, Jan Dhaene, Marc J. Goovaerts, Robert Koch, Ruben Olieslagers, Olivier Romijn, Steven Vanduffel

Journal of Actuarial Practice (1993–2006)

We consider a single period portfolio of n dependent credit risks that are subject to default during the period. We show that using stochastic loss given default random variables in conjunction with default correlations can give rise to an inconsistent set of assumptions for estimating the variance of the portfolio loss. Two sets of consistent assumptions are provided, which it turns out, also provide bounds on the variance of the portfolio's loss. An example of an inconsistent set of assumptions is given.

Bayesian Analysis Of Insurance Losses Using The Buhlmann-Straub Credibility Model, Abraham J. Van Der Merwe, Kobus N. Bekker

Journal of Actuarial Practice (1993–2006)

We propose a Bayesian analysis to develop credibility estimates of the well known Biihlmann-Straub model. We describe simple numerical methods to obtain exact posterior distributions and predictive densities under this model. These distributions are obtained through Monte Carlo simulations that generate independent samples from the joint posterior distribution. Our methods are therefore preferable to methods such as Gibbs sampling, which generates dependent samples from the joint distribution. The methods discussed also can be extended to more complicated credibility models.

Spatial Distribution Of Frequency And Severity Of Water Claims In California, Gurbhag Singh, Max Tang, Don Mcneill, Lyn Hunstad

Journal of Actuarial Practice (1993–2006)

We examine the frequency and severity of water loss claims for homeowners insurance across the state of California for the experience years 2000, 2001, and 2002. The spatial distribution patterns of frequencies and severities are mapped and analyzed at the zip code level. The maps reveal the pockets of high frequencies and severities. The information provided in this paper will assist actuaries and policy makers in their quest to set accurate rates for homeowners insurance.

Journal Of Actuarial Practice, Volume 13, 2006, Colin Ramsay , Editor

Journal of Actuarial Practice (1993–2006)

ARTICLES

Bivariate Archimedean Copula Models for Censored Data in Non-Life Insurance • Michel Denuit, Dana Purcaru, and Ingrid Van Keilegom 5

Bayesian Analysis of Insurance Losses Using the Biihlmann-Straub Credibility Model • Abraham J. van der Merwe and Kobus N Bekker . 33

Bayesian Analysis of a Health Insurance Model • Helio S. Migon and Edison M. O. Penna 61

Solvency of Life Insurance Companies: Methodological Issues • Rosa Cocozza and Emilia Di Lorenzo . 81

Pricing Insurance Policies with a Distribution-Free Financial Pricing Model • Min-Ming Wen . 103

A Note on the Instability of the Unprojected Individual Level …