Corporate Finance Commons^™

From Poolside To Profit Margins: A Deep Dive Into Playa Hotels & Resorts, Elisabeth Zygmunt, Hai Tran

Honors Thesis

From a consumer perspective, all-inclusive leisure travel requires few worries coupled with plenty of enjoyment and relaxation. However, from a managerial perspective, there are countless operations to run to ensure a positive guest experience. Playa Hotels & Resorts (NASDAQ: PLYA) is a leader in all-inclusive resorts in vacation destinations worldwide. Compared to some of the biggest names and players in the industry, Playa has a relatively small market cap of $1.49B. To maintain its growth trajectory, Playa must capitalize on the increasing popularity of all-inclusive models and consumer health concerns, along with continuing to expand its portfolio through collaborations with …

Corporate Environmental (Ir)Responsibility Of Chinese Construction Companies, Bin Zhang

Dissertations and Theses Collection (Open Access)

Grounded in a multi-stakeholder perspective, this study delves into the impact of Corporate Environmental Responsibility (CER) on the performance of firms in the Chinese construction industry. Utilizing a panel dataset of listed companies in the Chinese construction sector from 2008 to 2023, the research conducts empirical analysis by incorporating key stakeholder relationship indicators (customer concentration, government support, and bank loan costs) while controlling for firm characteristics, aiming to assess the effect of corporate environmental information disclosure on financial performance. The findings reveal that CER significantly positively affects financial performance. More crucially, this relationship is partly attributed to the strengthening of …

The Impact Of Eva Performance Evaluation System On Market Value Management Of State-Owned Listed Companies, Xiaohua Cai

Dissertations and Theses Collection (Open Access)

Against the backdrop of intensifying global economic competition and the deepening reform of state-owned enterprises (SOEs), improving the operational efficiency of central state-owned enterprises has become a core issue in China’s pursuit of high-quality economic development. Meanwhile, as market-oriented reforms advance and capital markets open further in both directions, central state-owned enterprises’ market value management has increasingly emerged as a pivotal mechanism connecting national strategies with market value, necessitating the establishment of an institutional framework that balances value creation and value realization. In 2009, the State-owned Assets Supervision and Administration Commission of the State Council introduced the Economic Value Added …

Sex & Startups, Jens Frankenreiter, Talia B. Gillis, Eric L. Talley

Faculty Scholarship

Private law offers a unique solution to the problem of long-term fiscal commitment. When Congress enacts a spending program that will take many years to reach fruition, there is a risk of a subsequent Congress or President cutting off funding in the interim. There is no escape from the problem within appropriations law itself. One solution, however, is to entrust private sector allies as vessels of long-term commitment. As a matter of political economy, that solution draws on policy-feedback theory. As a matter of law, the solution rests on a mechanism that Congress already uses but has not recognized its …

Capital Formation, The Sec, And Accredited Investors, Neal F. Newman, Lawrence J. Trautman, Brian Elzweig

Faculty Scholarship

Protecting the investing public, while simultaneously facilitating the efficient flow of capital needed by all new and growing businesses continues as a primary responsibility of the U.S. Securities and Exchange Commission (SEC). Enhancing the capital formation process is a necessary step in the creation of jobs and growth of any economy. Central to the SEC’s regulatory schematic is the proposition that some particularly sophisticated and wealthy investors require less protection than those with less knowledge, experience, and resources. During December 2023, for just the third time, the SEC staff issued a report examining the status of the natural person accredited …

Institutional Cross-Ownership Of Peer Firms And Revelatory Price Efficiency, Young Jun Cho, Holly I. Yang, Yue Zhao

Research Collection School Of Accountancy

We argue that cross-ownership increases the amount of private information in stock price, enhancing the ability of stock price to provide feedback to managers. Consistent with this argument, we find greater cross-ownership heightens a firm’s investment-q sensitivity. This effect is stronger for firms with a lower propensity for voluntary disclosure and for firms whose managers hold less private information. Furthermore, we find that cross-ownership is negatively associated with the sensitivity of a firm’s investment to its peers’ stock prices. Additionally, cross-ownership has a stronger impact on the investment-q sensitivity when measured among investors who trade more actively the …

Aircraft Leasing And Its Effects On Ireland's Airline Sector, Aaron Christian, Jeanne Sumrall

SACAD: Scholarly Activities

The aircraft leasing industry sits at the heart of Ireland’s aviation sector, making Ireland the global leader in the business. The presence of major leasing companies’ headquarters, including Avolon, SMBC and AerCap, in Ireland, allows for country to benefit from these companies’ revenue. In return, Ireland provides the companies with supportive tax and regulatory frameworks that benefit the aviation sector. The research on this topic explores different ways aircraft leasing contributes to airline efficiency through cost reductions and fleet modernization while minimizing financial risks associated with aircraft acquisition by utilizing computer programs. Operational modeling has become an essential tool for …

In The Eye Of The Storm: Investor Sentiment And Audit Quality In Korean Financial Reporting, Antonios Persakis, Georgios Kolias

Economic and Business Review

Background and objective: We investigate whether financial reporting quality is associated with economic policy uncertainty and examine the moderating roles of investor sentiment and audit quality during periods of high uncertainty.

Methods: This study focuses on firms listed on the Korea Stock Exchange over the period 1998–2021. We employ a dynamic panel-data model and utilize the Arellano–Bover/Blundell–Bond system estimator, a two-step generalized method of moments estimator that leverages instrumental variables to mitigate the issue of endogeneity.

Results: The empirical result provides support for the hypothesis suggesting that Korean economic policy uncertainty is positively associated with financial reporting quality, indicating that …

Family Succession And Corporate Investment Policy, Weiting Lin

Dissertations and Theses Collection (Open Access)

Family firms play a significant role in economic and social development, making substantial contributions to wealth creation, employment generation, and the enhancement of social welfare. However, the development of family firms faces numerous challenges, among which intergenerational succession stands out as one of the most critical. The intergenerational succession of family firms is crucial for their long-term sustainable development. In China, since the reform and opening up, private enterprises have experienced rapid growth, with most family firms still under the control of their first-generation founders. These firms are now entering a critical period of succession. The unique political, business, and …

How Do Firms Respond To Reduced Private Equity Buyout Activity?, Yi-Hsin Lo

Dissertations and Theses Collection (Open Access)

I investigate how firms respond to reduced private equity buyout activity in their home states by exploiting the state-by-state adoption of laws that increase the cost of buyouts. I find evidence suggestive of reduced firm efficiency. The firms also become less likely to go bankrupt or to relocate to other states. These findings suggest that the firms' managers may be starting to enjoy the quiet life. I also find a reduction in layoffs. Overall, the results indicate a trade-off: Whereas reduced private equity buyout activity increases managerial entrenchment, it also lowers firm exits and strengthens employees' job security.

Beyond The Disaster Zone: How Disruptive Climate Event Shape Epa Oversight And Firm Behavior, Grace Fan

Research Collection School Of Accountancy

We examine how experiences with disruptive climate events impact the Environmental Protection Agency’s (EPA) monitoring activities and subsequent firm behaviors. Using plausibly exogenous variation in the exposure of EPA regional offices to major hurricanes, we find that exposed EPA regulators increase their monitoring efforts, measured by both inspection frequency and length, at facilities located in their jurisdictions but outside the disaster zone. This effect diminishes over time and is stronger for regulators located closer to the disaster area or experiencing the disaster for the first time. Importantly, the heightened regulatory monitoring following disasters has real effects on regulated facilities–they face …

Unexpected Defaults: The Role Of Information Opacity, Aytekin Ertan, Yun Lee, Regina Wittenberg-Moerman

Research Collection School Of Accountancy

Bond defaults are undesirable yet natural outcomes of risky investments. What is also crucial but hitherto underexplored is the unexpectedness of defaults. We develop a parsimonious measure of default unexpectedness and highlight its economic importance by demonstrating that unexpected defaults are associated with unfavorable recovery outcomes and adverse price changes in peer firm bonds. We then examine how default unexpectedness relates to information opacity. We find that firms with opaque financial reporting and weak voluntary disclosure experience more unexpected defaults. Defaults also occur more unexpectedly when the external information environment is opaque—when rating agencies disagree on a firm’s credit risk …

Venture Capital, Marketization, And Corporate Innovation Performance, Jia Dong

Dissertations and Theses Collection (Open Access)

The paper explores the impact of venture capital (VC) on the innovation performance of companies listed on the ChiNext and STAR markets of China’s A-share market. By examining the effect of VC involvement on the number of patent applications and patents granted to listed companies, the study reveals the role of VC in promoting corporate innovation and its potential mechanisms. The research finds that venture capital significantly enhances firms’ innovation performance through increased R&D investment and management incentives. Additionally, the degree of marketisation, as an important external factor, significantly amplifies the positive impact of VC on corporate innovation.

The paper …

Is Carbon Risk Priced In The Cross Section Of Corporate Bond Returns?, Tinghua Duan, Frank Weikai Li, Quan Wen

Research Collection Lee Kong Chian School Of Business

This article examines the pricing of a firm’s carbon risk in the corporate bond market. Contrary to the “carbon risk premium” hypothesis, bonds of more carbon-intensive firms earn significantly lower returns. This effect cannot be explained by a comprehensive list of bond characteristics and exposure to known risk factors. Investigating sources of the low carbon alpha, we find the underperformance of bonds issued by carbon-intensive firms cannot be fully explained by divestment from institutional investors. Instead, our evidence is most consistent with investor underreaction to the predictability of carbon intensity for firm cash-flow news, creditworthiness, and environmental incidents.

Industry Peer Information And The Equity Valuation Accuracy Of Firms Emerging From Chapter 11, Bingxu Fang, Sasan Saiy, Dushyantkumar Vyas

Research Collection School Of Accountancy

Valuation plays a central role in determining Chapter 11 reorganization outcomes. However, obtaining accurate valuation estimates of reorganized firms is challenging because of limited firm-specific market-based information and the oft-conflicting incentives of claimholders. We examine the role of industry peer information in reducing misvaluations and its implications for unintended interclaimant wealth transfers and postreorganization performance. First, we find that the availability of relevant industry peer information is negatively associated with equity valuation errors for firms emerging from Chapter 11. Cross-sectional results suggest that the relation between industry peer information and valuation errors varies substantially with debtors’ information environment and case …

Green Innovation And Firms’ Financial And Environmental Performance: The Roles Of Pollution Prevention Versus Control, Qiang Cheng, An-Ping Lin, Mengjie Yang

Research Collection School Of Accountancy

This study examines the effects of firms' green innovation on their future financial and environmental performance. If pollution is primarily a manifestation of wasted resources, then investments in pollution prevention technologies can both reduce the environmental impact of production and improve financial performance. In contrast, investments in pollution control technologies likely reduce the environmental impact of production without improving financial performance. Using green patents to capture firms' investments in these two types of technologies, we find that the value of a firm's pollution prevention patents is positively associated with its future financial and environmental performance, and that the positive impact …

Information Spillover And Corporate Policies: The Case Of Listed Options, Gennaro Bernile, Jianfeng Hu, Guangzhong Li, Roni Michaely

Research Collection Lee Kong Chian School Of Business

Information production associated with derivatives markets is not a sideshow; rather, it has significantly positive spillover effects on an array of corporate decisions of underlying firms. Using a regression-discontinuity design based on exogenous variation in options availability as an instrument for changes in the information environment, we show that options introductions have causal effects on corporate policies on both sides of the balance sheet. Through improved information efficiency, options availability reduces the need for debt and payout, increases efficient investment, and yields superior innovation. We conduct two independent experiments demonstrating that our instrument s impact is not derived from alternative …

The Boundaries Of The Law: Can Us Private Enforcement Discipline Foreign Firms?, Massimo Massa, Xiaoqiao Wang, Bohui Zhang, Hong Zhang

Research Collection Lee Kong Chian School Of Business

Existing studies tend to focus on how a legal system reinforces the efficiency of its domestic firms or foreign companies that are subject to its domestic jurisdiction (e.g., via cross-listing). Our study provides critical normative implications in the era of financial globalization by showing that the influence of a country’s legal institutions extend beyond its territorial boundaries. We examine whether US shareholder-initiated class action lawsuits can discipline non-US firms. Using an international sample of firms over the period 1994–2019, we find that a US class action lawsuit against a non-US firm cross-listed in the US negatively affects the value of …

Internationalization And Investment Efficiency, Alireza Askarzadeh, Kenneth Yung

Graduate Student Government Association Research Conference

Conflicting results in the literature regarding the effect of internationalization on firm performance motivate this study to examine this effect through an important but less studied channel. Unlike previous literature mainly focusing on the impact of internationalization on firm financial performance, this study examines operational performance and probes how internationalization affects firms’ investment inefficiency, thus demonstrating an important aspect in determining the success of international strategies. By applying the concepts of transaction cost economics and agency theory to a sample of US firms between 1989 and 2022, we find evidence that internationalization has a positive relationship with investment inefficiency and …

Exploration Of Designing An Automatic Classifier For Questions Containing Code Snippets—A Case Study Of Oracle Sql Certification Exam Questions, Hung-Yi Chen, Po-Chou Shih, Yunsen Wang

Department of Accounting and Finance Faculty Scholarship and Creative Works

This study uses the Oracle SQL certification exam questions to explore the design of automatic classifiers for exam questions containing code snippets. SQL’s question classification assigns a class label in the exam topics to a question. With this classification, questions can be selected from the test bank according to the testing scope to assemble a more suitable test paper. Classifying questions containing code snippets is more challenging than classifying questions with general text descriptions. In this study, we use factorial experiments to identify the effects of the factors of the feature representation scheme and the machine learning method on the …

Can Whistleblowing Improve Organizational Effectiveness? Evidence From Financial Reporting Misconduct, Hong Kim Duong, Sadok El Ghoul, Omrane Guedhami, Emmanuel Sequeira, Zuobao Wei

Accounting Faculty Publications

Background

While whistleblowing (WB) has attracted growing research interest in recent years, several critical WB-related issues remain underexplored.

Purpose

This study examines the impact of external WB allegations on a firm’s organizational capital (OC). Such allegations often indicate management’s failure to address employee concerns internally, spotlighting potential deficiencies in internal reporting systems, employee communication, training, and trust in organizational fairness. To mitigate reputational damage, restore employee trust, and prevent future incidents, we posit that WB firms respond by increasing OC investment.

Research design

We employ a difference-in-differences approach, comparing OC changes in WB-targeted firms with those in a propensity score-matched …

Solving The Proxy Advisory Problem: Minimum Regulation For Maximum Competition, Dominic P. Keilty

Michigan Business & Entrepreneurial Law Review

The proxy advisory industry is often criticized on two primary accounts: the lack of accountability for informational accuracy in the development of voting standards and the conflicts of interest faced by advisors when they make proxy voting recommendations on issuers to which they have previously provided corporate governance consulting services. The industry has also been accused of having “anemic” levels of competition, since only two advisors command a vast majority of the market share. While much has been written about curtailing the prevalence and effects of proxy advisor conflicts of interest through increased regulation, the regulatory route toward increased informational …

The Integration Of Big Data In Fintech: Review Of Enhancing Financial Services Through Advanced Technologies, Soudeh Pazouki, Mohammad B. Jamshidi, Mirarmia Jalali, Arya Tafreshi

Management Faculty Publications

Big data analytics is revolutionizing the FinTech industry, offering new opportunities for real-time decision-making, personalized financial services, and improved risk management. By leveraging advanced technologies like machine learning and artificial intelligence, financial institutions can efficiently detect fraud, predict market trends, and create innovative solutions tailored to customer needs. Big data also plays a critical role in promoting financial inclusion through alternative credit scoring models, providing access to credit for underserved populations and fostering broader participation in the financial system.

However, the integration of big data into FinTech is not without its challenges. Issues such as data privacy concerns, regulatory complexities, …

Merchant Guild Culture And Companies’ Sustainable Development: An Empirical Investigation Based On Esg Performance, Yi Wang

Dissertations and Theses Collection (Open Access)

In the context of global economic growth and growing emphasis on sustainable development, this study focuses on the impact of merchant guild culture, an important part of traditional Chinese culture, on the sustainable development of enterprises. Through an in-depth exploration of the historical evolution and cultural connotations of merchant guild culture, this paper systematically analyzes its potential influence on corporate behavior and sustainable development. Using a sample of A-share listed companies and applying regression analysis and other empirical research methods, this study finds that merchant guild culture facilitates the sustainable development of enterprises. Mechanism analysis reveals that merchant guild culture …

Partner Performance Evaluation, Disclosure Of Key Audit Matters, And Audit Quality, Shenghua Chen

Dissertations and Theses Collection (Open Access)

Transparency of information and audit quality are crucial for the efficiency and stability of the market. The disclosure of key audit matters has become an essential part of audit reports, yet there remains widespread debate regarding the role of key audit matters. This study finds a significant positive correlation between the extent of key audit matter disclosures and audit quality. Detailed disclosures can enhance information transparency, strengthen auditors’ sense of responsibility, and reduce information asymmetry. However, over-templating may have negative effects on audit quality, leading to a lack of personalized judgment by auditors. Additionally, this paper suggests that the partner …

“The Entire Art Movement Has Become An Enormous Business Venture” Financing The American Art Museum, Lucy Owen

MA Theses

This thesis examines the intricate relationship between financial operations and the public function of American art museums. The distinctive American nonprofit model relies heavily on private funds for its survival and success. The thesis traces the historical development of this model, and then analyzes the contemporary state of American art museums, with a specific focus on two prominent institutions: MoMA PS1 and the Yale University Art Gallery. The analysis highlights the significant influence of board members' financial contributions and their business expertise on museum operations. Moreover, the thesis argues that the museum world has undergone rapid financialization in the twenty-first …

Provision Cfo: Empowering Strategic Financial Excellence For Small Businesses And Entrepreneurs, Cindra Vang

Doctor of Strategic Leadership (DSL) Capstone Abstracts

Project Overview

ProVision CFO offers strategic financial management solutions tailored to the unique needs of entrepreneurs, small businesses, and rapidly growing organizations. This project aims to equip clients with robust financial strategies and actionable insights necessary for sustainable growth, operational excellence, and long-term success. ProVision CFO provides comprehensive financial guidance including fractional CFO and accounting services.

Project Themes

The ProVision CFO framework encompasses three key components designed to optimize financial performance and organizational effectiveness. Component One—Strategic Clarity: Establishing clear financial goals aligned with organizational vision, mission, and values. Component Two—Financial Optimization: Providing accounting services to streamline financial processes and enhance …

Deconstructing The Greenium: Exploring Mispricing In The Green Bond Market, Koto Yamada

Honors Theses

This paper investigates the sources and conditions under which the greenium – a yield discount observed for green bonds relative to comparable conventional bonds – appears in global fixed income markets. Using a dataset of over 26,000 bonds issued between 2012 and 2024 across 37 countries and 5,400 firms, I find that the existence of the greenium is highly context-dependent, shaped by factors such as issuer reputation, institutional trust, and green capital allocation across sectors. Repeat green issuers receive yield discounts of up to 57 basis points, particularly in the EU and Nordic countries, where strong climate policies and disclosure …

Proof Of Reserves: A Double-Helix Framework, Maksym Lazirko, Deniz Appelbaum, Miklos Vasarhelyi

Department of Accounting and Finance Faculty Scholarship and Creative Works

Cryptocurrency exchanges face increasing pressure to demonstrate reserve adequacy following platform failures, yet current Proof of Reserves (PoR) systems suffer from incomplete verification approaches that examine either on-chain or off-chain assets separately. This study introduces the Double-Helix Framework, a verification methodology that integrates on-chain blockchain analysis with off-chain consensus algorithms to provide complete assessment of exchange financial positions. The framework employs parallel verification strands that simultaneously validate blockchain-recorded transactions and off-chain financial information, creating a unified assessment mechanism that addresses the verification gaps in existing PoR systems. The framework's integration of traditional auditing principles with distributed ledger verification creates new …

Do Environmental Risks Explain The Sovereign Sukuk Yields In Malaysia?, Roslina Mohamad Shafi, Norhasimah Shaharuddin, Norsaliza Abu Bakar, Amirul Afif Muhamat, Mosab I. Tabash

The Indonesian Capital Market Review

Given the increasing risks posed by environmental degradation, severe climate change, and recent pandemics, the establishment of a sustainable economy has become a priority for numerous nations. From this perspective, it is crucial to emphasize sustainable finance since it has the potential to serve as a vehicle for accomplishing a green economic agenda. Sovereign sukuk held a prominent position in the sukuk market, both domestically and internationally, but its influence was particularly significant inside the domestic sphere. The study seeks to examine the link between environmental risks and the yield performance of sovereign sukuk. Sukuk performed less favourably compared to …