Corporate Finance Commons^™

Financial Market Intermediaries And Retail Investor Judgments, Timothy John Potsaid

2024

This dissertation examines how retail investors interact with three different financial market intermediaries – online stock brokerages, financial analysts, and auditors.

The first paper explores how trading restrictions impact retail investor perceptions of the brokerage that imposed the restriction contingent on the subsequent price trajectory of the stock. We find that when stock prices increase following a restriction (a non-gain), participants are more likely to react negatively to the brokerage than when stock prices decrease (a non-loss). This relationship is moderated by participants’ level of I-FoMO – or fear of missing out on investment information. These findings provide practical insight …

High-Cost Drug Formulary Stewardship: Health System Evaluation Of Intravenous Immunoglobulin (Ivig) Utilization, Christine J. Hurteau Pharmd, Christopher Flores Pharmd, Pcscp, Rebecca Pulk Pharmd, Ms, Bsp

Posters

• Intravenous immunoglobulin (IVIG) therapy is essential for treating various immune mediated conditions
• Dosing and duration of IVIG varies based on indication, and there is lack of consensus for some indications on ideal dosing strategy
• IVIG is a high cost medication that is being used at higher rates in a five hospital health system compared to similarly sized institutions
• Given the high utilization rates, evaluation of IVIG prescribing patterns and clinical appropriateness was

Three Essays On Investment Decisions And Stock Price Crash Risk, Andi Li

Finance and Real Estate Dissertations - Archive

My dissertation explores two main themes: institutional investors' investment decisions and stock price crash risk. The first essay analyzes how institutional investors manage their portfolios in the context of economic policy uncertainty. The second essay examines the effect of employee ownership on a firm's stock price crash risk, while the third essay investigates how the concentration of institutional ownership affects the stock price crash risk.

My first essay investigates the impact of economic policy uncertainty on institutional investors’ holdings of common stocks. Using a large sample of quarterly institutional ownership data from 28 countries/markets between 2000 and 2021, I find …

Nike's Product Recommendation System And Incorporation Of Ai, Quinton Truman Lamers

Undergraduate Theses, Professional Papers, and Capstone Artifacts

No abstract provided.

Renewable Energy Stocks' Performance And Climate Risk: An Empirical Analysis, Lingyu Li, Xianrong Zheng, Shuxi Wang

Information Technology & Decision Sciences Faculty Publications

This article studies the relationship between renewable energy stocks’ performance and climate risk. It shows that publicly held renewable energy stocks underperform as a reaction to climate policy information releases, modeled by feed-in tariff (FIT) legislation announcements. The study examined stock price behaviors 2 days before and 30 days after FIT policy announcements. The stock sample used in the study has 3702 firm-day combinations, which included 180 cleantech firms and 32 events from 2007 to 2017. Based on the residual analysis of the sample’s abnormal return, it indicated that the FIT announcements are associated with significant declines in returns. The …

Trading Cloud Computing Stocks Using Sma, Xianrong Zheng, Lingyu Li

Information Technology & Decision Sciences Faculty Publications

As cloud computing adoption becomes mainstream, the cloud services market offers vast profits. Moreover, serverless computing, the next stage of cloud computing, comes with huge economic potential. To capitalize on this trend, investors are interested in trading cloud stocks. As high-growth technology stocks, investing in cloud stocks is both rewarding and challenging. The research question here is how a trading strategy will perform on cloud stocks. As a result, this paper employs an effective method—Simple Moving Average (SMA)—to trade cloud stocks. To evaluate its performance, we conducted extensive experiments with real market data that spans over 23 years. Results show …

Green Bonds, Green Returns: The Impact Of Green Bond Issuances On Financial Performance In The U.S. Energy Sector, Adora Lei

Honors Theses

This paper investigates the impact of green bond issuances on the financial performance of U.S. energy firms, the largest greenhouse gas-emitting sector. To explore the incentives for adopting green projects among firms with the most significant margin for improvement, I focus on Gross Profit Margin (GPM) and the Tobin’s Q Ratio as key indicators of profitability and valuation. Using a dataset of 462 companies, I analyze green and conventional corporate bond issuances from 2010 onwards in the context of their financial reports. The findings reveal that green bonds positively influence long-term valuation, with Tobin’s Q showing significant increases from the …

Effects Of Physical Activity Intervention On Reducing Neck And Upper Extremity Pain Intensity For Female Office Computer Workers, Peng Cheng Sung, Tiffany Chiu, Yunsen Wang

Department of Accounting and Finance Faculty Scholarship and Creative Works

The computer usage among office workers had increased tremendously in past recent years and the surge in computer usage has created a surge in work-related musculoskeletal disorders (WRMSDs) on arm, neck, and shoulder. For prevalence of musculoskeletal symptoms in relation to gender and age, females had higher risk and prevalence of upper limb complaints and the prevalence of WRMSDs generally increases with age. Systematic review studies had reported effectiveness of various physical activity (PA) interventions on improvements of upper extremity musculoskeletal disorders (UEMSDs) or neck pain for office workers. However, the degree of adherence of PA interventions with WHO guidelines …

Product Elimination Decision And Its Impact On Consumers: The Special Case Of A Local Speedway, Mark Mitchell, Jacob Voegel, Michael Smith

Atlantic Marketing Journal

After 60+ years of operation, Myrtle Beach Speedway was closed and the property sold. The new owners will redevelop the property for commercial and residential purposes. Businesses routinely eliminate products for a variety of reasons, including under-performance and/or a desire to redeploy those resources elsewhere. What is often overlooked is the impact on consumers. In addition to reducing fan access to racing, a closed race track removes a racing opportunity for aspiring race car drivers and crew members. It can also mean shuttering tracks that once had historical significance. The history of raceway closures in the Myrtle Beach, SC area …

Leading Financial Indicators Of Corporate Bankruptcy, Macee Patritti

Undergraduate Theses, Professional Papers, and Capstone Artifacts

No abstract provided.

Corporate Law As Decolonization, Martin W. Sybblis

Faculty Articles

After centuries of colonial subordination, Black and Brown former colonies are still fighting to achieve the fruits of decolonization. The traditional theory is that former colonies will emerge from the colonial period with the legal mandate and international recognition needed to chart their own futures. But, for those Black and Brown British colonies that achieved political independence, it became clear that, without economic strength to care for their societies, legal separation could not deliver on its promise of freedom from subordination. This Article argues that investments in corporate law innovations by some jurisdictions, such as Bermuda, the British Virgin Islands, …

Essays On Corporate Finance And Real Estate, Hanh T. H. Phan

Finance and Real Estate Dissertations - Archive

My dissertation consists of two essays. In the first essay, I study the impact of local economic policy uncertainty on corporate cash holdings for U.S. firms. While national economic policy uncertainty has been examined extensively, few studies have investigated the impact of local economic policy uncertainty. I use the state-level economic policy uncertainty developed by Baker, Davis, and Levy (2022) to examine the impact of local economic policy uncertainty on firm cash holdings. Using a sample of publicly traded U.S. firms from 1985-2022, I find that firms increase their cash holdings in response to higher local economic policy uncertainty. The …

The Effects Of Esg On The Financial Performance Of Aerospace & Defense Companies, Cooper Trimble

Honors Undergraduate Theses

This study examines the relationship between Environmental, Social, and Corporate Governance (ESG) activity and financial performance in the context of firms operating in the Aerospace & Defense industry. As societal pressure increases for companies to adopt ESG and related corporate sustainability practices, it is crucial to understand the repercussions of such adoptions. As the Aerospace & Defense industry continues to grow and capitalize on post-COVID travel booms, military modernization efforts, and increased demand for advanced aerospace technology, it is essential to understand the consequences of ESG implementation. By examining data from 2012 – 2023, this study produced results regarding the …

Initial Financial Assessment Of The Fraport Greece Cluster A Concession, Dimitrios V. Siskos, Alexander Maravas, Ronald Mau

International Journal of Aviation, Aeronautics, and Aerospace

There is a worldwide trend in the privatization of transport infrastructure and airports. Likewise, the Greek government launched an extensive privatization program that granted Fraport AG the right to operate 14 airports for the next forty years. The two separate concessions for clusters of seven airports each are named "Cluster A" and "Cluster B." The financial assessment of privatization contracts is crucial so decision-makers can accurately assess the value of aviation enterprises. This paper applies the Economic Value Added (EVA) methodology and enterprise valuation on Cluster A by assessing the concession company's balance sheets and income statements. We concluded that …

Enhanced Prediction Of Stock Markets Using A Novel Deep Learning Model Plstm-Tal In Urbanized Smart Cities, Saima Latif, Nadeem Javaid, Faheem Aslam, Abdulaziz Aldegheishem, Nabil Alrajeh, Safdar Hussain Bouk

School of Cybersecurity Faculty Publications

Accurate predictions of stock markets are important for investors and other stakeholders of the equity markets to formulate profitable investment strategies. The improved accuracy of a prediction model even with a slight margin can translate into considerable monetary returns. However, the stock markets' prediction is regarded as an intricate research problem for the noise, complexity and volatility of the stocks' data. In recent years, the deep learning models have been successful in providing robust forecasts for sequential data. We propose a novel deep learning-based hybrid classification model by combining peephole LSTM with temporal attention layer (TAL) to accurately predict the …

Essays On Corporate Debt Structure, Kyuyoung Oh

Theses and Dissertations--Finance and Quantitative Methods

The dissertation consists of three chapters exploring three different facets of corporate debt structure choice. In the first chapter, “Risk Management and the Choice between Secured and Unsecured Debt: Evidence from Natural Experiment,” I study whether and how corporate hedging affects firms’ choice between secured and unsecured debt. Exploiting the introduction of steel futures as a natural experiment, I provide causal evidence that risk management enables firms to switch from secured to unsecured debt without sacrificing debt capacity. Cross-sectional evidence supports the interpretation that risk management drives the results. The effects are stronger for firms that are more likely to …

Investor Reaction To Spacs' Voluntary Disclosures, Vincent Castellani, Karl A. Muller, K.J. Park

Research Collection School Of Accountancy

SPACs are formed to combine with and provide a private firm public trading status and a capital infusion. Firms that enter the public market through a SPAC combination are believed to possess greater voluntary disclosure discretion than traditional IPOs as they obtain their public trading status through a merger. Consistent with regulators’ concerns, recent research finds that SPACs use this discretion opportunistically by issuing optimistic guidance. This study examines how investors respond to these disclosures. We find that optimistic projections increase retail purchasing, which is higher than that of institutional purchasing. Additionally, we find that investors partially see through the …

Protecting The Sovereign's Money Monopoly, Gary B. Gorton, Jeffery Zhang

Articles

Sovereign states have held a monopoly over the production of circulating money for well over a century. Governments, not private entities, issue circulating money. The advent of stablecoins—privately issued digital money that can circulate—raises the question of the sovereign’s money monopoly from the grave. Should private money circulate alongside sovereign money in the twenty-first century? We argue against coexistence to preserve financial stability and monetary sovereignty.

Through the lens of economic theory, we explore the coexistence question by revisiting the original debates that led to the sovereign’s money monopoly in England, the United States, Canada, and Sweden. In each case, …

Financial Literacy In The Era Of Artificial Intelligence. Towards Financial Inclusion. Opening Remarks, Łukasz Kurowski, Anna Szelągowska

Journal of Banking and Financial Economics

Financial Literacy in the Era of Artificial Intelligence. Towards Financial Inclusion. Opening Remarks

Entire Volume Journal Of Banking And Financial Economics 2024, 1(21)

Journal of Banking and Financial Economics

Entire Volume Journal of Banking and Financial Economics 2024, 1(21)

Betting On The Market: The Influence Of Match-Day Odds On Price Reactions Of European Football Clubs, Pascal Alterauge, Marc Mehlhorn

Journal of Banking and Financial Economics

This research investigates the relationship between football match outcomes, betting odds and the stock prices of publicly traded European football clubs, spanning from 11 February 2004 to 7 April 2022. Drawing data from 12 major European and publicly traded clubs, the study utilised betting odds as a key metric. These odds, aggregated from the Odds Portal, serve as a gauge for expected versus unexpected match outcomes. Preliminary findings showed a market value increase of 0.44% after a win and a decrease of 1.08% post-defeat. Moreover, deviations from betting odds predictions significantly influenced stock prices, with unexpected wins and losses resulting …

European Union Sanctions Impact On The Sector Stock Prices – The Ukrainian War Effect?, Patrycja Chodnicka, Piotr Jaworski, Marcin Kot

Journal of Banking and Financial Economics

The aim of this paper is to analyze the current impact of the implementation of the European Union sanctions related to the Ukrainian War on the abnormal rates of return on the stock prices of companies listed on the stock exchanges. It was hypothesized that the implementation of the European Union sanctions related to the Ukrainian War is causing the varied abnormal rates of return on the stock prices of companies listed on the stock exchanges, taking into consideration the type of sector and the geographical proximity to the military conflict. The analysis used panel data event studies prepared using …

Indirect Measure Of Financial Constraints: Evidence From Unquoted Innovative Smes, Katarzyna Prędkiewicz

Journal of Banking and Financial Economics

This paper examines whether companies’ innovativeness affects the availability of capital and, therefore, whether this group is financially constrained. It uses an objective, indirect way of measuring financial constraints based on the assumption that financially restricted firms only invest when internal cash flow allows them to do so. Therefore, the research was based on the investment-cash flow equation, more precisely the adjusted ECM model adapted to the SME sector. The companies’ innovativeness was measured based on a proprietary synthetic indicator covering a broad range of information on innovation activity. The research was conducted on a sample of 403 firms, including …

Journal Of Banking And Financial Economics 2024, 2(22)

Journal of Banking and Financial Economics

Journal of Banking and Financial Economics 2024, 2(22)

Common Ownership And Analyst Forecasts, Qiang Cheng, Shuqing Luo, Jinping Zhang

Research Collection School Of Accountancy

We examine the effect of the common ownership relation between brokerage houses and the firms covered by their analysts (referred to as co-owned brokerage houses, co-owned firms, and connected analysts, respectively) on analyst forecast performance. Common ownership can help the connected analysts have better access to co-owned firms, leading to higher-quality analyst research. However, common owners have incentives for higher valuation of the co-owned firms and thus can exert pressure on the connected analysts to issue optimistically biased research reports for these firms. We find that common ownership improves analyst forecast accuracy. This result is robust to a difference-in-differences design …

Owning Green: Evaluating The Effects Of Actively Managed Sustainability Fund Ownership On Esg Scores, Caleb Young

CMC Senior Theses

The growing trend of acknowledging ESG performance as a material concern when conducting due diligence on investment opportunities has exacerbated the number of assets being managed by investors with sustainability-oriented goals. At the same time, as social and climate-related issues have become more intense, investors want to use their agency as shareholders to influence companies to act in ways that align with their values. Frequently, this can be most effectively achieved through proxy voting and corporate engagement, particularly if the fund is an active manager. This thesis explores the interaction between ESG-focused ETFs and mutual funds and their management style …

Unions’ Impact On Firms’ Financial Decision Making: A Look At Right-To-Work Laws And Their Impact On Firms’ Leverage Decisions, Rachana Muvvala

CMC Senior Theses

I study the impact of unions on firms’ financial decision making by exploring their capital structure, specifically leverage. I test two opposing hypotheses to understand the relationship between unions and firms’ leverage: (1) the bargaining hypothesis which suggests that firms use higher leverage as a bargaining device with unions, and (2) the crowding-out hypothesis which suggests that firms have lower leverage because unions crowd out their debt capacity due to their perceived riskiness. Focusing on the 2007 to 2022 period, I examine right-to-work (RTW) laws, since they are exogenous shocks that decrease union power in five different states. Then, I …

Market Reaction Test On Banks & Brokers Based On Bitcoin Price History. A Look At National Commercial Banks And Security Broker, Exchanges, And Service Stocks Following The Most Volatile Swings In Bitcoin’S Price., Payton Earl

CMC Senior Theses

This paper examines if there is an inverse correlation between Bitcoin’s most volatile price swings and national commercial banks and security brokers, exchanges and service companies performance. Company performance in the dataset is measured by Cumulative Abnormal Returns during 2021 within a two-day period where Bitcoin has had the most significant uptick and downtick events. Using a market-adjusted model for my regression, it is concluded that Bitcoin’s largest uptick event did indeed have an inversely negative effect on traditional banks and trading securities companies, as the Cumulative Abnormal Returns were negative for my 107 observations and the event was statistically …

Three Essays On Corporate Debt Contracting And Innovation, Olaleye Morohunfolu

Theses and Dissertations (Comprehensive)

This dissertation comprises three essays investigating topics in Corporate Debt Contracting and Innovation. The first essay examines the relation between Passive Institutional Ownership (IO) and debt covenants. Using Russell 1000/2000 annual index reconstitution as a source of exogenous variation in passive IO, I find that passive IO leads to reduced covenants in the bond market. Specifically, I find that passive IO leads to reduced (a) Investment, (b) Dividend restriction, and (c) Subsequent financing restriction. However, I observe weaker results for loan covenants, implying that loans, usually collateralized, are less sensitive to changes in passive ownership. The overall effect of passive …

International Diversification And Stock-Price Crash Risk, Alireza Askarzadeh, Mostafa Kanaanitorshizi, Maryam Tabarhosseini, Dana Amiri

Finance Faculty Publications

Despite the recent proliferation of research on internationalization, little attention has been paid to understanding the reasons behind the decrease in firm value accompanying international expansion. By delving into the underlying mechanisms and applying the concept of agency theory to a sample of US firms spanning from 2000 to 2022, we posit that an increased level of information asymmetry in internationally diversified firms incentivizes managers to prioritize their own interests. To protect their careers, CEOs of internationally diversified firms often suppress bad news. This behavior can lead to the accumulation of negative news and heighten the risk of a stock-price …