Corporate Finance Commons^™

Twitter Sentiment Analysis: Applications In Healthcare And Finance, Jiali Wang

Dissertations

This research explores the influence of Twitter sentiment on healthcare and finance industries. It assesses how Twitter sentiment and culture measure influence COVID-19 statistics, and it investigates the impact of Twitter sentiment on S&P 1500 stock mispricing. Furthermore, it examines how tweet sentiment predicts major industry returns.

The first part examines how Hofstede’s Culture Dimensions (HCD) and Twitter economic uncertainty index (TEU) relate to COVID-19 infection rate and death rate. The results show certain aspects in HCD, such as power distance index (PDI) and masculinity (MAS) both are negatively and significantly associated with the infection rate, while indulgence (IVR) and …

Esg And Intellectual Capital Efficiency: Evidence From Asean Emerging Markets, Etikah Karyani, Muhamad Resa Perdiansyah

Jurnal Akuntansi dan Keuangan Indonesia

This study aims to investigate the impacts of Environmental, Social, and Governance (ESG) in total and individual performance (“E”, “S”, and “G”) on firms’ intellectual capital (IC) efficiency. The Value-Added Intellectual Coefficient (VAIC) and Modified Value-Added Intellectual Coefficient (MVAIC) were used to measure IC efficiency. Meanwhile, the annual ESG index data from the ASEAN-4 were used to measure ESG from 2015 to 2020. The results show “E”, “S”, and “G” and total ESG positively affect firms’ efficiency in managing IC. In addition, the industry type moderates these relationships in terms of that banks have a greater influence than non-banks. Our …

Ethical Compatibility Of Socially Responsible Banking: Comparing The Japanese Main Bank System With The Usa, Kanji Kitamura

School of Business: Faculty Publications and Other Works

Although the broad idea of socially responsible banking is widely accepted, no precise definition of ethical banking is available because of various ethical preferences. This paper develops the concept of ethical compatibility as a theoretical description of ethical banking. It offers a multi-level framework to illustrate the compatibility between the regional ethics and preferred forms of ethical banking prevalent in Japan and the USA. This paper first revisits the two paradigms of financial systems and examines the two types of business purposes as ethics. Drawing on the literature concepts, this study posits a conceptual framework demonstrating the compatibility between the …

Financial Institutions Continue To Adopt Crypto Despite Industry Turmoil, Andre Beganski

Capstones

Even though this calamitous year has raised doubts about crypto's future, not a single large financial institution has backed away from their forays into digital assets. And despite a period of turmoil that’s seen the market value of all cryptocurrencies crater to under $880 billion from over $3 trillion, many sizable firms continue to view crypto as an emerging sector of finance and technology that’s rife with opportunity.

While financial firms have the potential to foster a widespread perception of cryptocurrencies as a legitimate asset class, their involvement runs counter to the intent of those who pioneered blockchain technology for …

The Effect Of Climate Change On Firm Level Costs With Focus On Mena Region, Farah Osama Saieed

Theses and Dissertations

This paper has a main objective of identifying the relationship between environmental factors and climate change on operating costs incurred by firms. This paper also attempts to compare the direction and intensity of the effect on different sectors in order to analyze whether climate change effect differs based on the nature of the business operations. Several papers have previously addressed the relationship between climate change factors ad profits. This literature will add to previous studies by observing the effect on the cost rather than the profits. In addition to providing results that minimize endogeneity, which is found in a large …

A Comparison Of M&T Bank And Citizens Bank Net Income Changes During The Coronavirus Pandemic, Alex R. Glasier

Applied Economics Theses

The COVID-19 pandemic had a tremendous impact on every aspect of life, particularly within the world of banking & finance. All banks saw sharp drops in their stock prices and net income, but my hypothesis is that larger, more established banks maintained more stability during 2020 than smaller banks. This paper analyzes the income statements and balance sheets of M&T Bank (an older, more well-established bank) and Citizens Bank (a less-established bank) during this difficult time.

The first part of my thesis describes similarities and differences between M&T Bank and Citizens Bank. I explain how these similarities and differences may …

Forecasting Variance Swap Payoffs, Jonathan Dark, Xin Gao, Thijs Van Der Heijden, Federico Nardari

WCBT Faculty Publications

We investigate the predictability of payoffs from selling variance swaps on the S&P500, US 10-year treasuries, gold, and crude oil. In-sample analysis shows that structural breaks are an important feature when modeling payoffs, and hence the ex post variance risk premium. Out-of-sample tests, on the other hand, reveal that structural break models do not improve forecast performance relative to simpler linear (or state invariant) models. We show that a host of variables that had previously been shown to forecast excess returns for the four asset classes, contain predictive power for ex post realizations of the respective variance risk premia as …

The Effect Of The Syrian Crisis On The Profitability Of The Country's Private Banking Sector, Osama Alyousef

BAU Journal - Creative Sustainable Development

This research analyses the effect of the Syrian crisis on the profitability of local private banks during the period from 2011 to 2018 using fixed effects estimator on panel data. The research studies all of the 14 Syrian private banks and includes bank-specific variables calculated from the published quarterly and annual reports of all the banks, as well as a variable for the Syrian crisis measured by the following macro-economic factors: the number of crisis-related casualties, the number of Syrians who fled the country as refugees or asylum seekers, and the Syrian Pound exchange rate against U.S. Dollar during the …

Coeur Mining Inc. A Financial Statement Analyis, Justin Czech

Dissertations, Theses, and Projects

This Financial Statement Analysis of Coeur Mining Inc. looks at the firms, past, present, and future projects, trends, and financial statements in order to come to a conclusion about the firm as a whole, and the stock of the firm. In this analysis, I will discuss the firm as compared to a competitor firm; Compass Minerals Inc. Through this comparison, I will decide the strength and legitimacy of the financial statements of Coeur Mining Inc.

The Effect Of Accounting Conservatism On Measures Of Financial Constraints, Taewoo Kim, Brandon Byunghwan Lee, Bo Meng, Daniel Paik

Accounting Faculty Publications

This study examines the relationship between accounting conservatism and measures of financial status. We find that, in general, a higher level of accounting conservatism is associated with a lower level of financial constraints – thereby making external funds less costly. The results also show that for a firm with a higher bid-ask spread or a higher likelihood of bankruptcy, this negative relationship between conservative financial reporting and financial constraints is intensified. In other words, a higher level of accounting conservatism is likely to make external funds less costly especially for those firms with a higher level of bid-ask spread or …

A Hybrid Delayed Differentiation Multiproduct Epq Model With Scrap And End-Products Multi-Shipment Policy, Yuan-Shyi Peter Chiu, Ya-Lei Lo, Tsu-Ming Yeh, Yunsen Wang, Hung-Yi Chen

Department of Accounting and Finance Faculty Scholarship and Creative Works

The present work intends to optimize a hybrid delayed differentiation multiproduct economic production quantity-EPQ model with the scrap and end-products multi-shipment policy. Since the requirements of multi-goods have a standard part in common, our fabrication planning adopts a two-phase delayed differentiation strategy to make the standard components first and produce the finished multi-goods in the second phase. Implementing a partial subcontracting option (with the additional expense) for the standard parts helps us to expedite the required uptime in the first phase. A screening process identifies the faulty items that need to be removed to ensure the in-house production quality. A …

The Effects Of Prior Trading Performance Have On Risk-Taking Of Subsequent Trading – The House Money Effect, Lenz Tan Koon Bin

Dissertations and Theses Collection (Open Access)

This study tests for house money effect on 2,030 non-professional FX investors trading through an Australian Financial Service provider. The results indicate that, in general, investors display a positive relationship between prior gains and the change in subsequent weekly risk-taking - the house money effect. The results also suggest that astute investors display a stronger house money effect than mediocre investors following prior gains. In comparison, mediocre investors display a stronger disposition effect following prior losses than astute investors. The study further reveals that investors who initially demonstrated the house money effect became more prone to the disposition effect during …

Replenishment-Shipment Decision For A Multiproduct Producer-Client Coordinated Fpr Model With Postponement, Rework And Subcontracting, Yuan-Shyi Peter Chiu, Ting-Fang Yan, Yunsen Wang, Hui-Chi Wang

Department of Accounting and Finance Faculty Scholarship and Creative Works

This research constructs a mathematical scheme to explore replenishment-shipment decisions for a multiproduct producer-client coordinated finite production rate (FPR) model with the postponement, rework, and subcontracting plan. The considered multiple goods have a common component, and a batch FPR fabrication with postponement is planned to meet the annual multiproduct requirements. The first fabricating phase makes only the standard components needed for a batch and subcontracts a proportion of them (with additional cost) to expedite the process. In contrast, the second fabricating phase produces the finished multiple merchandise in sequence. The in-house rework processes with extra expense help retain the desirable …

Doing Well By Doing Good: Analyzing The Dynamics And Effectiveness Of Corporate Engagement, Gillian Meyers

Independent Study Project (ISP) Collection

Sustainable investing and corporate climate action have grown exponentially in the last decade, generating a simultaneous need for customers, investors, and policymakers to determine when companies are genuinely achieving positive impact related to environmental, social, and corporate governance (ESG) factors. As a result, investors are increasingly employing ESG engagement, which typically takes the form of direct communication with holdings to determine and positively shape their impacts on their stakeholders. In this paper, I explore the reasoning for conducting ESG engagement and refute arguments against it. I fill an existing research gap by analyzing the benefits of ESG engagement to both …

10 Good Reasons Why Llcs Should Not Elect To Be S Corporations, Paul N. Iannone, Danny A. Pannese

WCBT Faculty Publications

Since 2004, the IRS has administratively made S elections for limited liability companies (LLCs) very easy. An LLC that is otherwise eligible to be an S corporation that is classified as a partnership or a disregarded entity can simultaneously elect to be classified as both a corporation and an S corporation by timely filing Form 2553, Election by a Small Business Corporation, without the need to also file Form 8832, Entity Classification Election. The Treasury regulations treat the "one-stop-shop" rule as a "deemed election" under the entity classification regulations.

Impact Of Geographical Diversification And Limited Attention On Private Equity Fund Returns, Victor Hock Keong Ong

Dissertations and Theses Collection (Open Access)

This study analyzes the effect of geographical diversification on global private equity (PE) fund returns. I find that there is a negative correlation between geographical diversification and PE fund returns. To establish the causality between geographical diversification and PE fund returns, I employ an instrument variable analysis where the instrument used is the stock market capitalization value of the host country where the PE fund is based. My results apply to Net IRR, multiple and DPI as dependent variables used to proxy for PE fund returns in the main regression model. A one standard deviation increase in geographical diversification results …

Empirical Studies Of Esg Scores With Corporate Credit Spreads (Insights From Popularity-Based Pricing), Eugene Okyere-Yeboah

Doctoral Dissertations (DBA)

This study examines various factors or characteristics (risk and non-risk) that determine a firm’s credit risk premium, as measured by its credit default swap (CDS) spread, with a particular focus on the impact of environment, social, and governance (ESG) scores. The framework employed is a general equilibrium asset pricing model which integrates classical and behavioral finance elements, known as popularity-based asset pricing. It treats all attributes or characteristics of an asset as ”factors” to which investors assign a degree of popularity, which changes over time. Non-risk characteristics are classified as ”tastes” or ”disagreements”, Fama French (2007). Firms’ degree of adherence …

Cfo Gaps: Determinants And Impact On The Corporate Information Environment, Xia Chen, Na Li, An-Ping Lin

Research Collection School Of Accountancy

A CFO gap arises when the CFO position is left vacant for a period between the departure of the old CFO and the appointment of a new CFO. We find that CFO gaps are fairly common; over the sample period 2004–2016, approximately one-third of CFO turnovers are associated with a CFO gap, lasting on average two quarters and two months. CFO gaps are more likely for firms that face more labor market search frictions and with financial reporting and performance issues, and are less likely for firms with succession plans and with greater growth opportunities. While CFO gaps are not …

Giving Shareholders Real Rights, Reducing Excessive Executive Pay, And Reducing One‐Size‐Fits‐All Regulation, Dan Palmon, Gary Kleinman, Ann F. Medinets

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper questions the effectiveness of shareholders’ protection from managers who may make choices contrary to the shareholders’ interests. We focus on “silent shareholders” who rarely vote because their goal is purely financial return with no intention or ability to participate in corporate strategies. Since they have virtually no influence on company policies, we argue that they should not be viewed as firm owners, but as consumers of managerial services. Therefore, we suggest the creation of a new class of “capital contract” stock that would grant silent shareholders an explicit legal contract that clearly specifies their rights and compensations in …

Trusting The Stock Market: Further Evidence From Ipos Around The World, Kiridaran Kanagaretnam, Kiat Bee Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of IPO firms from 36 countries and a country-level index for societal trust, we find strong evidence that societal trust is negatively associated with the degree of IPO underpricing. In cross-sectional analyses, we find that the effect of societal trust in reducing IPO underpricing is more pronounced when the information environment is less transparent, when the stock market environment is less robust, and when legal institutions are weaker, settings where the effect of trust is likely to be more salient. Our study contributes to and extends the literature by providing strong evidence that an informal institution …

Subsidiary Governance And Corporate Tax Planning: The Effect Of Parent-Subsidiary Common Directors And Offficers, Xin Wang, Yongxin Xu, Liandong Zhang, Gaoping Zheng

Research Collection School Of Accountancy

Top executives of the parent company often take positions as the directors and officers (D&Os) of subsidiaries. These parent-subsidiary common D&Os have better access to subsidiary information and can exert more influence over subsidiary operations. Therefore they can better identify tax-planning opportunities and coordinate tax arrangements. Using the mandatory disclosure of top executives' subsidiary positions for Chinese listed firms, we find that effective income tax rate is lower for firms with common D&Os. The tax-saving effect is stronger for firms with more intangible assets and with related-party transactions involving subsidiaries. The effect is also stronger when common D&Os have positions …

Strategic Disclosure And Debt Covenant Violation, Thomas Bourveau, Derrald Stice, Rencheng Wang

Research Collection School Of Accountancy

This study examines how managers change their forecasting behavior as a debt covenant violation approaches. Using a sample of firms that disclose a debt covenant violation (DCV) in their financial statements, we find that management forecasts are more optimistic in the period leading up to a DCV, and this result is not driven by managers’ unintentional forecast bias. Additionally, we find that managers who are more optimistic in their forecasts also take on more risk and increase dividend payouts before violations, consistent with managers strategically using earnings forecasts to justify their activities favorable to shareholders but likely to be curtailed …

Working Capital Management Of Manufacturing Companies In Bangladesh: What Factors Make Significant Impact?, Sumaiya Zaman

Journal of Global Business Insights

The paper aims to determine factors that make a significant impact on working capital management of a manufacturing company in Bangladesh. Of 221 service and manufacturing firms listed on the Dhaka Stock Exchange, 109 companies are chosen based on data availability for the five-year period 2014-2018. The study examines literature on working capital management and tests theory on manufacturing companies listed on the Dhaka Stock Exchange. Cash conversion cycle is used as a measurement of working capital efficiency. Financial ratios representing six aspects of company's financial performance are taken as explanatory variables. They represent company asset management, debt structure, growth, …

Corporate Social Responsibility Influence On Organizational Performance: Moderating Effect Of Corporate Reputation Performance: Moderating Effect Of Corporate Reputation, Eti Jain, Anuja Shukla, Shiv K. Sharma, Arvind Kumar

Management Dynamics

No abstract provided.

Three Essays On Insider Trading, Haoyang Xiong

Theses and Dissertations

In the first essay we study whether and how personal off-the-job managerial indiscretions impact corporate insiders’ trading behavior. We find that executives accused of personal indiscretions earn significantly higher abnormal returns from their insider purchases and sales in a 15-day window around each trade. The results are robust to matched sample analyses. Further, insiders’ historical trading pattern or corporate culture has less explanatory power than personal attributes. We also document that exposure of these indiscretions to the public provides a disciplinary effect, as insider trading profits significantly drop following the announcement of an indiscretion, despite this drop being temporary. Corporate …

Essays On Insider Trading, Innovation, And Political Economy, Jiawei Chen

Theses and Dissertations

I study how insider trading interacts with the political economy, regulators, and other corporate governance mechanisms. In the first section, I examine the impact of insider trading restriction enforcement on firm innovation. U. S. Securities and Exchange Commission enforcement actions are intended to protect investors and limit expropriation by firm insiders, but enforcement could impact insiders’ incentives to contribute to value enhancing activities. Therefore, I explore how corporate innovation and performance respond to insider trading restrictions imposed by firms and regulators. Using manually collected data on SEC indictments against corporate insiders, I document more innovative activity following external insider trading …

How To Create Cash Flows That Give A Priori Irrs?, Charlie Charoenwong, Xinxin Li, Chee K. Ng

Southwestern Business Administration Journal

We illustrate algebraically the way to numerically derive the cash flows of an investment project yielding a set of desired IRRs. This is significant given the dearth of practice questions with the appropriate cash flow numbers, and their corresponding sign, in widely adopted Finance textbooks that will allow students to find multiple IRRs as learning exercises. The note serves to fill that void by allowing the readers to change the IRR inputs in an Excel spreadsheet and have the corresponding cash flows output ready for an assignment. Instructors can use the Excel codes to create different cash flows that yield …

Sustainability: Jobs And Skills For The Accountancy Profession, Jiwei Wang, Holly I. Yang, Liandong Zhang

Research Collection School Of Accountancy

Sustainability is a megatrend that is changing the way we think about business and offering new opportunities and jobs for the accountancy sector. At the 26th Conference of the Parties (COP26), also known as the United Nations Climate Change Conference, the international business community was galvanised into action. Singapore, too, has intensified its sustainability plans with the Singapore Green Plan 2030

Bank Ownership And Decline In Loan Growth Due To The Pandemic, Ruthana Bitia, Zuliani Dalimunthe

The Indonesian Capital Market Review

This study aims to analyze the effect of bank ownership structure on loan growth before and during the pandemic. Specifically, we developed four models to capture different loan types provided in the Indonesian banking system; working capital, investment, consumer, and total loan growth. This study used 150 observations of commercial banks for 2019 (before the pandemic) and 2020 (during the pandemic). We conducted the regression method to test hypotheses. The main finding of this study was that foreign banks’ consumer credit growth significantly lower than domestic banks. Similar findings occurred for other types of loans, and this conclusion has controlled …

“Fiscal Trap”, The Case Of Greece, Titos Ritsatos

Southern University College of Business E-Journal

Present research aims at the introduction of the term “Fiscal Trap” in economic literature, as a comprehensive definition of the economic situation in which any available combination of fiscal-only policy measures (tax increases and austerity measures), would fail to fulfill fiscal targets during periods of recession. Using recent experience from the case of Greece, an ex-post evaluation of adopted policy effectiveness is pursued. Fiscal austerity and increased taxation enforced in Greece during the years 2009-2012, resulted in decreased tax revenues, lower GDP and increased debt-to-GDP ratio. In order to slip away from the vicious cycle generated by austerity and tax …