Corporate Finance Commons^™

Value Relevance Of Sustainability Report: Evidence From Indonesia, I Dewa Made Endiana, Ni Nyoman Ayu Suryandari

Jurnal Akuntansi dan Keuangan Indonesia

This present study aimed at providing empirical evidence of whether sustainability report has value relevance for investors in buying or selling shares and affects firm value. This study used two research models. The first research model was used to examine the effect of book value and earnings on firm value. The second research model was used to examine the effect of sustainability report on firm value and define the value relevance of sustainability report. The samples of this study were 306 companies listed on the Indonesia Stock Exchange in 2017-2020. As a result, this study found that sustainability report is …

The Effect Of Ceo Characteristics On Pre-Earnings Management Profitability, Adhitya Agri Putra

Jurnal Akuntansi dan Keuangan Indonesia

This research aims to examine the effect of CEO characteristics on pre-earnings manage­ment profitability. CEO characteristics include gender, tenure, age, education level, founding-family status, and nationality. Pre-earnings management profitability is measured by return on assets minus discretionary accruals. Data analysis uses firm and year fixed-effect regression analysis. The result shows that female CEO, longer tenure CEO, CEO with higher education levels, and foreign CEO increase firms' profitability without engaging in earnings management. On the other hand, there is no effect of CEO age and founding-family status on pre-earnings management profitability. This research contributes to filling the gap of inconsistent previous …

The Effect Of Personal And Situational Factors On The Intention Of Whistleblowing With Moderated Legal Protection, Daisar Rahman, Nur Hayati

Jurnal Akuntansi dan Keuangan Indonesia

This research is to determine the effectiveness of legal protection in strengthening the relationship between attitude toward behavior, subjective norm, perceived behavioral control, the seriousness of wrongdoing, status of the wrongdoer, and reward with whistleblowing intentions. The population in this research was civil servants who were Regional Inspectors in all regencies in Madura. The sampling technique in this study was purposive sampling consisting of 104 civil servants who had functional positions as auditors, staffing auditors, or supervisors of regional government (P2UPD). Data was collected by distributing questionnaires directly to the respondents. The data analysis technique used in this study was …

Is Mandatory Sustainability Report Still Beneficial?, Astrid Rudyanto

Jurnal Akuntansi dan Keuangan Indonesia

The latest regulations in Indonesia (SEOJK No 16/SEOJK.04/2021) have required public companies to make a sustainability report every year in order to increase sustainable in­vestment. Prior to this regulation, several public companies had made sustainability reports and received benefits of sustainability report. This makes issuers ask whether after being obligated, public companies still get the benefits that have been obtained from voluntary sustainability reports and under what conditions the mandatory sustainability reports are beneficial for public companies. This study answers the public companies' doubts by con­ducting a systematic literature review on research on mandatory and voluntary sustainability reports in Q1 …

Factors Influencing The Decision Of Granting Credit At Commercial Banks In Jenin Governorate, Zakaria Al-Jamal

Journal of the Arab American University مجلة الجامعة العربية الامريكية للبحوث

Banks perform many activities and functions and the most important function is the credit granted to current or prospective clients. This function will be profitable if it is managed by the credit department properly in terms of several factors .The decision of granting credit in banks is usually complicated and difficult, perhaps because the results of the credit decision only appear after a relatively long period of time. Therefore, understanding the determinants of credit risk plays a crucial role in the financial stability of the banks and decision of granting credit. The study aimed to identify the factors influencing …

Can You Really Build A Crypto Empire In The Empire State?, Cheyenne Ligon

Capstones

This capstone seeks to describe the cryptocurrency industry in New York City, and explain both the challenges industry participants face and the benefits of setting up shop as a crypto business in New York.

https://celizabethligon.wixsite.com/crypto-in-new-york

Corporate Social Responsibility And Bond Price At Issuances: Us Evidence, Hong Zhao, Wei Du, Hao Shen, Xinting Zhen

Economics & Finance Faculty Publications

Bondholders are arm's-length lenders with limited insider information. In this paper, we explore whether corporate social responsibility (CSR) activities could work as an information channel for bondholders to better understand the riskiness of bond-issuing firms. We find a significant negative relation between CSR scores and corporate bond yield spread, especially for firms which invest heavily in diversity and community relations, suggesting that CSR firms are less risky. The result is robust to different model specifications and endogeneity issues. In addition, the negative relation between the CSR score and bond yield spread is significant only if a firm has a strong …

Essays In Mutual Funds, Aadhaar Verma

Doctor of Business Administration Dissertations

This dissertation examines mutual fund portfolio formation, the economic forces that determine how fund managers construct their portfolios, and the market effects of fund portfolio disclosures.

In the first chapter of my dissertation, I study how funds modify their portfolios around disclosure dates in order to cater to their investors’ non-financial preferences. Using social norms and investor boycotts surrounding tobacco and firearm sectors as a proxy for non-financial preferences, I find that these stocks experience significant negative returns on portfolio disclosure dates and significant positive returns on the day after the portfolio disclosure. I also find that funds accelerate their …

The Impact Of The Ifrs 9 Expected Loss Approach On Accounting Conservatism, Clarence Goh, Chu Yeong Lim, Kevin Ow Yong

Research Collection School Of Accountancy

Using an experimental setting, this paper examines the impact of the International Financial Reporting Standard (IFRS 9) expected credit loss (ECL) approach on accounting conservatism. The ECL approach enables banks to incorporate loan loss provisions (LLP) on a timelier basis and help bank regulators anticipate weaknesses in banks’ loan portfolios. Conversely, the ECL model could be more susceptible to managerial discretion. More conservative bank managers might make excessivecredit provisions. Our findings show that high conservatism is positively associated with higher levels of LLP. In addition, the effect of accounting conservatism is contingent upon the type of loan loss model. We …

The Impact Of Target Audit Quality On The Likelihood Of Future Goodwill Impairment, Elizabeth Boyle

Dissertations

US Generally Accepted Accounting Principles (GAAP) require that in an acquisition, the purchaser must record a premium when the purchase price exceeds the fair value of the target’s identifiable net assets (both tangible and intangible). This premium lives on the balance sheet as an intangible asset called goodwill. Goodwill has an indefinite life, but over time it may become impaired due to overpayment of the original acquisition, unrealized synergies, changes in the business, legal issues, etc., and as a result, require a write-down. This impairment not only impacts the acquirer’s balance sheet but can also impact the market value of …

Identifying Board Of Director Network Influence For Firm Characteristics, Aparna Gupta, Abena Owusu, Lei Zou

Department of Accounting and Finance Faculty Scholarship and Creative Works

We utilize multiplex network analysis to evaluate the relationship between firms’ characteristics and board of director networks. Studying a sample of 384 board members of 20 largest US energy and utility firms, 10 from each sector, the firms are differentiated by a clustering analysis on their firm-level characteristics. The firms’ board member connections are represented in a multiplex network consisting of two layers, one for the board members’ direct connections and another for their indirect connections. Four additional sub-layers are identified for each major layer of the multiplex network to represent corporate, non-profit organization, education and government/military connections between the …

Socially Responsible Corporate Customers, Rui Dai, Hao Liang, Lilian Ng

Research Collection Lee Kong Chian School Of Business

Corporate customers are an important stakeholder in global supply chains. We employ several unique international databases to test whether socially responsible corporate customers can infuse similar socially responsible business behavior in suppliers. Our findings suggest a unilateral effect on corporate social responsibility (CSR) only from customers to suppliers, an evidence further supported by exogenous variation in customers’ close-call CSR proposals and by product scandals. Customers exert influence on suppliers’ CSR through positive assortative matching and their decision-making process. Enhanced collaborative CSR efforts help improve operational efficiency and firm valuation of both customers and suppliers but increase only the customers’ future …

Local Political Corruption And M&As, Chun Liu, Yang Chen, Shanmin Li, Liang Sun, Mengjie Yang

Research Collection School Of Accountancy

We examine the relation between local political corruption and firms' cross-province M&As using provincial-level data on corruption in China. The results show that firms in more corrupt regions are less likely to engage in cross-province M&As. Further analyses reveal that the effects of local corruption on the probability of cross-province M&As are stronger when corrupt officers have greater impeding benefits or lower impeding costs. Meanwhile, Both ex-ante intervention and ex post punishment are important channels through which corrupt officers hinder firms' cross province M&As. Moreover, informal institutions, such as social capital and informal networks can help to alleviate the negative …

What Are The Four Traits Of Digitally Mature Organizations?, Clarence Goh, Gary Pan, Poh Sun Seow, Yuanto Kusnadi, Gek Choo Shirlena Tan

Research Collection School Of Accountancy

A study conducted by Deloitte Southeast Asia and the Singapore Management University said there are four traits that could identify digitally mature organisations based on how they manage the governance, risk, and compliance aspects of digital transformation.

The Profitability Of Warrant Issuers: An Empirical Investigation Of Single Stock And Index Warrants, Ichaya Wongnapakarn, Arnat Leemakdej, Chiyachantana N. Chiraphol, Pattarawan Prasarnphanich, Eakapat Manitkajornkit

Research Collection Lee Kong Chian School Of Business

This study examines the derivative warrant's profit of issuers compensated with the risk from issuing call and put derivative warrants because they have commitments in risk management and managing risk by hedging the underlying exposure. The average profit of issuers is a cumulative profit from the first trading day until the last trading day. Consistent with the imperfect competition for issuing put derivative warrants on single stock from different securities borrowing and lending advantages, the profit margin of a put warrant is higher than the call warrant. However, the profit margin from a put warrant is not necessarily higher than …

Board Composition, Board Diversity And Stock Performance, Chiyachantana N. Chiraphol, Siripen Pattanawihok, Pattarawan Prrasarnphanich

Research Collection Lee Kong Chian School Of Business

The study investigates the relationship between six board compositions and stock returns. The results indicate a significant association between various board compositions and stock returns. Specifically, board size and executive directors have a negative impact, whereas independent directors enhance stock returns. Busy directors positively impact the abnormal stock returns for the companies in the non-financial industry, which implies that busy directors who serve on more boards tend to be well connected. More importantly, the results indicate a significant positive relationship between board tenure and stock returns. Board service time is perceived as the board quality of knowledge and experience from …

A Bayesian Approach To Assessing The Risk Premium On Catastrophe Bond Derivatives At Issuance, Dickson K. Nkwantabisa

Doctoral Dissertations (DBA)

Catastrophe (CAT) bond pricing is a challenging task due to the uncertainty inherent in the incomplete market setting in which they operate as such various pricing approaches have been proposed. In this paper, we offer an alternative Bayesian methodology which is a natural approach in the context of uncertainty. Our Bayesian model is highly flexible and can be implemented under different model assumptions without losing generalization. We develop an entire Bayesian framework to model the two fundamental sources of risks in CAT bond pricing – catastrophe and interest rate risks. Using a Hierarchical Dirichlet Process model (Teh et al., 2006), …

Collective Impact Of Scrap, Random Breakdown, Overtime And Discontinuous Issuing On Batch Production Planning In A Supply-Chain Environment, Yuan-Shyi Peter Chiu, Jia-Ning Lin, Yunsen Wang, Hung-Yi Chen

Department of Accounting and Finance Faculty Scholarship and Creative Works

This research explores the collective impact of overtime, random breakdown, discontinuous issuing rule, and scrap on batch production planning in a supply-chain environment. In today’s global business environment, manufacturing firms encounter numerous operational challenges. Externally, they must promptly satisfy the customers’ various requests, while internally, they must cautiously manage several inevitable issues in the fabrication process. These issues might be concerned with scrap, random breakdown, etc. Resolving such issues is crucial for meeting the due dates of customers’ orders, adhering to the expected manufacturing schedules, product quality, and minimizing the total fabrication-transportation-inventory costs. The study develops a model to characterize …

Payout Policy, Managerial Perquisites, And Sticky Sg&A Costs, Deborah Smith

Business Faculty Publications

Background

Sticky SG&A costs provide a novel opportunity to investigate whether payout policy serves as a remedy for management overspending on perquisites that are embedded in SG&A expenses. Payout policy, especially under strong governance, may reduce overspending. Another possibility is that management may use sales declines opportunistically to repurchase shares when sales are expected to rebound.

Methods

Regression analysis is used to examine the effect of payout mechanisms (dividends, share repurchases, and combinations thereof) and shareholder rights (EIndex) to determine whether managerial overspending on perquisites is reduced through payout policy.

Results

The results indicate that dividends and share repurchases are …

Trust In Fair Value Accounting: Evidence From The Field, Clarence Goh, Chu Yeong Lim, Jeffery Ng, Gary Pan, Kevin Ow Yong

Research Collection School Of Accountancy

We survey stakeholders in the financial reporting process to examine trust in fair value accounting. Although respondents demonstrate high confidence in financial statements, they believe that fair value accounting decreases trust in financial reporting and that preparing fair value numbers is costly but beneficial. They also strongly believe in the Conceptual Framework underlying standard setting. Using multivariate regression analyses, we find that perceiving fair value accounting as beneficial is positively associated with trust in it, consistent with the theory of reasoned action that people engage in behavior (e.g., trust) based on expected positive outcomes of that behavior. We find that …

Inside Brokers, Frank Weikai Li, Abhiroop Mukherjee, Rik Sen

Research Collection Lee Kong Chian School Of Business

We identify the broker each corporate insider trades through, and find that analysts and mutual fund managers affiliated with such “inside brokers” have a substantial information advantage on the insider’s firm. Affiliated analysts issue more accurate earnings forecasts, and affiliated mutual funds trade the insider’s stock more profitably than their peers, following insider trades through their brokerage. Notably, this advantage persists well after these insider trades are publicly disclosed. Our results challenge the prevalent perception that information asymmetry arising from insider trading is acute only before trade disclosure, and suggest that brokers facilitating these trades are in a position to …

Corporate Social Responsibility And Financial Performance: Does Board Diversity Matter?, Ozgur Ozdemir, Murat Kizildag, Tarik Dogru, Ilhan Demirer

Journal of Global Business Insights

In this study, the moderating effect of board diversity on the complex relationship between corporate social responsibility (CSR) performance and financial performance is examined. The resource-based view of the firm and stakeholder theory are used as the theoretical foundation of the study. The hypotheses of the study are tested via fixed-effects regression using data for a sample of 1,234 firms and 5,102 firm-year observations for the period 2009–2013. The study finds evidence that CSR performance and financial performance are positively related, and the magnitude of this relationship is contingent on the level of board diversity. As corporate boardrooms become more …

2021 Private Capital Markets Report, Craig R. Everett

Pepperdine Private Capital Markets Report

The Pepperdine private cost of capital survey was originally launched in 2007 and is the first comprehensive and simultaneous investigation of the major private capital market segments. This year’s survey specifically examined the behavior of senior lenders, asset‐based lenders, mezzanine funds, private equity groups, venture capital firms, angel investors, privately‐held businesses, investment bankers, business brokers, limited partners, and business appraisers. The Pepperdine survey investigated, for each private capital market segment, the important benchmarks that must be met in order to qualify for capital, how much capital is typically accessible, what the required returns are for extending capital in today’s economic …

Bonds Duration And Covid-19: A Study On United Kingdom Conventional Gilts, Riffat Abdul Latif Mughal

Business Review

This article studies whether the government bonds portfolio developed based on bonds duration produces abnormal returns in London Stock Exchange fixed income market during the phase of double-dip recession and COVID-19. The sample consists of UK conventional gilts traded from February 2004 till February 2021. The daily data is obtained from Thomson Reuters / Refinitiv Eikon. For this study, the data is divided into two subsamples July 2009-December 2018 and December 2019-February 2021. The findings reveal that all the bonds produced abnormal returns during the complete sample and sub-sample period when returns of UK gilts 1 year maturity are kept …

Controlling Externalities: Ownership Structure And Cross-Firm Externalities, Dhammika Dharmapala, Vikramaditya S. Khanna

Law & Economics Working Papers

In recent years, debates over the social purpose of corporations have taken center stage amidst rising concern about externalities (such as those associated with climate change and harmful speech) generated by firms. A key motivation is the claim that government regulation and liability regimes appear not to be functioning sufficiently well to force firms to internalize these externalities. There is thus rising interest in exploring alternative mechanisms. In particular, a rapidly growing body of scholarship argues that index funds increasingly approximate diversified “universal owners” with incentives to maximize portfolio value (and thus to internalize cross-firm externalities). However, much of this …

Merger, Efficiency, And Productivity In The Us Credit Union Industry, Khaled Q. Bataineh

LSU New Orleans Theses and Dissertations

First essay examines if mergers lead to more efficient credit unions. We use a two-step methodology of estimating efficiency scores (technical and scale efficiencies) one year before the merger and three years after the merger through using the Data Envelopment Analysis (DEA). We find that members of acquired US credit unions benefit from improving both technical and scale efficiencies. Conversely, members of acquiring US credit unions do not benefit as the efficiency scores have been unchanged. Therefore, profitability is the primary driver of mergers for the acquiring credit unions, while efficiency is the main one for the acquired credit unions. …

Inditex's Esg Performance In A Global Financial Market, Sara Habig

Honors Projects in Finance

Zara has become extremely popular as a global fashion enterprise and remains significantly profitable in the fashion industry. With a leading supply chain operation strategy, they have been a leading retailer for many decades. This empirical research study involves research and assessment of Inditex's ESG performance and evaluations based on ASSET4 data source's evaluations, using the Stata software. Results show that Inditex remains a strong competitor in the fast fashion industry when compared to its rivals within 4 different categorical markets: all sample firms in Spain, all global retailers, and all sample firms separated by continent. Inditex consistently outperformed their …

The Impact Of Rtgs On Internal Control - A Comparative Study Between Some Iraqi Banks, Salowan H. Al Taee, Noor A. Rahdi

University of South Florida (USF) M3 Publishing

The research aims to examine the impact of the Real time Gross settlement (RTGS) As an example of Electronic Payment Systems (EPS) in some Iraqi banks registered in the Iraq market for the securities and banks selected in the research sample (Iraqi Central bank, commercial Gulf Bank, United Bank for Investment of Iraq, Agricultural cooperative Bank) and researchers designed the resolution designed to achieve the objectives of research and test its hypothesis to gain access to the extent to which banks apply Sample search for internal controls of general procedures, application, security procedures and protection of proposed applications based on …

The Impact Of Working Capital On Cash Management Under Ias 7 Framework: An Examination Of Tourism Listed Companies In Indonesia And Turkey, Tri Damayanti, Tuba D. Baskan

University of South Florida (USF) M3 Publishing

The objective of this study is to find the impact of capital on cash management in tourism industries. We employ three models for measuring cash management. Working capital structure is measured by working capital turnover ratio. In order to get more understand of our analysis, we hired control variables such firm performance, firm size and country specific. We applied panel analysis of 93 financial reports of Indonesian and 27 Turkish tourism listed companies. We apply three models of cash management which could not be find in another prior research. The output shows that each model found that our hypotheses is …

A Nexus Between Mergers & Acquisitions And Financial Performance Of Firms: A Study Of Industrial Sector Of Pakistan, Fiza Quareshi, Mukhtiar Ali, Salar Hussain

University of South Florida (USF) M3 Publishing

Mergers and Acquisitions (M&As) have gained considerable interest in the last few decades and the purpose behind these events is to increase revenues, gain market share, achieve competitive edge and aimed to diversify the risk. This study aims to investigate the role of mergers and acquisitions on the financial performance of firms in the industrial sector of Pakistan. Financial Performance is measured on the basis of the stock market performance of the firms, which has been measured using the event study methodology as this is one of the recognized techniques in the conditions of M&As. Stock market performance is measured …