Finance and Financial Management Commons^™

Corporate Or Network Governance? The Case Of The Italian Productive Chains And Their Scaffolding Finance Approach., Guido Max Mantovani, Teresa Guidone

The Journal of Entrepreneurial Finance

We investigate and find out the inner differences between stand-alone firms and those participating to Productive Chain Networks (PCNs) as far as ownership and corporate governance characteristics are concerned. PCNs are typical Italian economic realities made of small and medium enterprises (SMEs) which behave like a unique meta-firm. Different clusters are found from an empirical analysis: firms outside PCNs, leaders in PCNs and suppliers participating to PCNs. The clusters differentiate on corporate governance practices and the consequent capability to attract funding from financial institutions. The inner differences in governance structure relate to the underpinnings of the competitive advantage of the …

Measuring Egyptian Banks Efficiency Using Co-Plot, Mohamed Rashwan

Business Administration

Measuring the efficiency of the banking industry has been a significant challenge, especially in the developing countries. This research aims at measuring the efficiency of the Egyptian banks through the period of 2010-2013, in which the 25th of January revolution took place. The research applied an intermediation approach using the Co-Plot technique on 27 Egyptian licensed banks. Data were collected from Bank scope and banks’ annual reports. It is found that, the political unrest has no significant impact on the banking efficiency and that the state owned banks are more efficient than the privately owned ones. Moreover, the majority of …

Rewards To Meet Market Expectations: Evidence Of Stock Market Sophistication, Weishen Wang, Mark Pyles, Rachel Graefe-Anderson

Business

Very often, firms report earnings that meet or beat market expectation (MBE). In this study, we empirically document that managers are rewarded more cash bonus when their firm MBE more often, and this relation holds same regardless of the extent of managerial entrenchment. We find that stock market reacts positively overall when firms MBE, but it reacts less positively for firms with entrenched managers. The study shows that stock market is more sophisticated in rewarding firms for meeting or beating market expectation than a firm's cash bonus system does.

Words Worth Price And Value, Tom Dunne

Articles

TOM DUNNE explains the terms used in relation to the valuation of property, and the need for common understanding among all parties using those terms. -

Ethics And Market Economic System: A General Review And A Survey, Reza G. Hamzaee

International Journal of Applied Management and Technology

Recent global recession has motivated this predominantly historical and exploratory research of thoughts and perceptions. A continuous planning of governmental correction of any market failure, such as various types of externalities and information asymmetry, has been strongly recommended by the pioneers of free enterprise systems. Capitalism—in which private ownership of means of production, physical capital, human capital, financial capital, brand-name capital, social capital, land, and mineral deposits are all protected by law without implementation of a series of certain evolving ethical standards and principles—may not continue to be the same efficient system as implied to be by the cost-benefit balancing …

The Deadweight Loss Of Equity-Based Compensation, Jessica Pence

CMC Senior Theses

In order to maximize shareholder value, firms attempt to align the incentives of the executives with those of the shareholders by giving them equity as a portion of their compensation package. The terms associated with this equity compensation forces the executives to hold undiversified portfolios, resulting in a sizeable deadweight loss. This paper uses the formula developed by Meulbroek (2001)1 to calculate the dollar value of this deadweight loss, in order to quantify the costs associated with equity-based compensation. We find that the 56 executives in our data set have a combined deadweight loss of $70 billion, and that on …

Mergers & Abenomics: The Determinants Of M&A In Japan's New Economy, Ethan S. Hallberg

CMC Senior Theses

This paper investigates the influence of various macroeconomic variables on Japan’s merger and acquisition (M&A) activity, both in terms of total deal value and total number of deals. Looking at monthly data from June 1997 to December 2013, I use econometric time-series analysis to find that: First, total deal value per month is not well explained by our macroeconomic variables, but about half of the variation in number of deals per month can be explained by our dataset. Second, the most important determinant in the total number of deals per month during our period is the level of national debt, …

Releasing Information In Xbrl: Does It Improve Information Asymmetry For Early U.S. Adopters?, Marshall A. Geiger, David S. North, Daniel D. Selby

Accounting Faculty Publications

Information released in XBRL is intended to improve the quality and accessibility of SEC filings, leading to less information asymmetry in the equity market. Research findings on the effects of XBRL on information asymmetry in the US., however, are mixed. Kim et al. (2012) reports that XBRL reduces information asymmetry while Blankespoor et al. (2012) reports that XBRL increases information asymmetry. In contrast to these prior studies, we report that the answer as to whether XBRL affects information asymmetry is matter of firm size. In this study we examine shifts in two measures of information asymmetry for early adopters of …

2013 Q4 Market Pulse Report, Craig R. Everett

Pepperdine Market Pulse Report

The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2MM) and the lower middle market (values $2MM -$50MM). The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. The IBBA and M&A Source present the Market Pulse Survey with the support of the Pepperdine Private Capital Markets Project and the Graziado School of Business and Management at Pepperdine University.

A Theoretical Analysis Of Iso9000 Suppliers, Chiaho Chang

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper looks at the economic behavior of suppliers under different ISO9000 standards, especially that of ISO9001 and ISO9002. Considering the information asymmetry, given the same quality provided, the cost-reducing efforts of the ISO9001 SUPPLIER and ISO9002 SUPPLIER under a fixed, cost-plus contract are investigated. The result shows that the cost-reducing effort of the ISO9002 SUPPLIER is in line with the main manufacturer's expectations while the ISO9001 SUPPLIER is able to keep some of the information rent and exerts less effort. The bargaining power of the ISO9001 SUPPLIER is also stronger relative to that of the ISO9002 SUPPLIER. It is …

What Are Analysts Really Good At?, Rong Wang, Leonardo Madureira, Rong Wang, Tzachi Zach

Research Collection Lee Kong Chian School Of Business

Sell-side analysts employ different benchmarks when defining their stock recommendations. For example, a ‘buy’ for some brokers means the stock is expected to outperform its peers in the same sector (“industry benchmarkers”), while for other brokers it means the stock is expected to outperform the market (“market benchmarkers”), or just some absolute return (“total benchmarkers”). We use these benchmarks to analyze the role of stock picking, industry picking and market timing in contributing to the performance of stock recommendations. We are able to do so given that different benchmarks suggest the use of different sets of abilities. Analysis of the …

2013 Q3 Market Pulse Report, Craig R. Everett

Pepperdine Market Pulse Report

The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2MM) and the lower middle market (values $2MM -$50MM). The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. The IBBA and M&A Source present the Market Pulse Survey with the support of the Pepperdine Private Capital Markets Project and the Graziado School of Business and Management at Pepperdine University.

Leverage Buy-Out Case Study, Binh Duc Nguyen

Honors Theses and Capstones

No abstract provided.

Women In The Workforce: An In-Depth Analysis Of Gender Roles And Compensation Inequity In The Modern Workplace, Rebecca L. Ziman

Honors Theses and Capstones

This paper explores the increase in participation and education of American women in the workforce with a special focus on women in business and accounting roles. The paper then goes on to discuss the wage gap between genders, how to remedy inequality in the workplace, and highlights several reasons why pursing a solution to gender inequality is beneficial for both the employee and the company.

Assessing Revenue Managers' Level Of Trust In Information Systems: An Exploratory Study Of Las Vegas Casino Resorts, Landon Taylor Shores

UNLV Theses, Dissertations, Professional Papers, and Capstones

This study examined revenue managers' level of trust in their revenue management system (RMS) at Las Vegas casino resorts. The study utilized an e-mail interview to measure revenue managers' attitudes about their RMS's degree of reliability and dependability, the degree to which they trust their RMS's pricing recommendations, and if a revenue manager's level of trust in technology had any effect on their likelihood of trusting their RMS.

The study invited 11 property and corporate revenue managers from Las Vegas casino resorts to participate in an e-mail interview, with nine revenue managers agreeing to participate. The main findings of the …

Getting Your Accounting Right, Themin Suwardy, Jiwei Wang

Research Collection School Of Accountancy

The book brings together authors from the industry and the academic world to contribute articles on the topic of high quality financial reporting. The objective is to help business directors and accounts preparers to understand the importance of high quality financial reporting to their business and get it right from the start.

Women As Leaders In Differing Microfinance Models, Rae M. Randleman

Journal of Interdisciplinary Feminist Thought

One of the original microfinance institutions (MFIs) is Grameen Bank in Bangladesh and the founder of the bank is Muhammad Yunus (2007). Yunus (2007) initiated a discourse that stated that microloans granted to women resulted in, among other things, increased female empowerment. Much of the global microfinance industry (MFI) has mimicked Yunus’ focus on women and thus created a global master narrative which stated that the capitalist system of credit provided to marginalized women can alleviate poverty and empower women. Other development organizations contend that by itself microfinance cannot empower women; empowerment also requires long-term efforts to influence change in …

Acquisitions Driven By Stock Overvaluation: Are They Good Deals?, Fangjian Fu, Leming Lin, Micah Officer

Research Collection Lee Kong Chian School Of Business

Theory and recent evidence suggest that overvalued firms can create value for shareholders if they exploit their overvaluation by using their stock as currency to purchase less overvalued firms. We challenge this idea and show that, in practice, overvalued acquirers significantly overpay for their targets. These acquisitions do not, in turn, lead to synergy gains. Moreover, these acquisitions seem to be concentrated among acquirers with the largest governance problems. CEO compensation, not shareholder value creation, appears to be the main motive behind acquisitions by overvalued acquirers.

2013 Q2 Market Pulse Report, Craig R. Everett

Pepperdine Market Pulse Report

The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2MM) and the lower middle market (values $2MM -$50MM). The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. The IBBA and M&A Source present the Market Pulse Survey with the support of the Pepperdine Private Capital Markets Project and the Graziado School of Business and Management at Pepperdine University.

Outward U.S. Foreign Direct Investment Performance During Recent Financial Crises, Lucyna Kornecki

Accounting, Economics, Finance, and Information Sciences - Daytona Beach

Foreign direct investment (FDI) plays an extraordinary and growing role in the global markets and represents an integral part of the U.S. economy. This research has descriptive character and focuses on the latest trends in outward United States foreign direct investment (US FDI) illustrating the impact of the recent financial crises on FDI performance.

The study analyzes the outward US FDI stock contribution to the global FDI stock and its performance during the last decade including geographical and sectorial distribution. The next paragraph focuses on outward US FDI corporate players ranking MNC’s by revenue and foreign assets. The essential part …

Examining Exchange Rate Exposure, Hedging And Executive Compensation In Us Manufacturing Industry, Mohammad N. Rahman

LSU New Orleans Theses and Dissertations

In essay one, my primary objective is to see the sensitivity of foreign exchange rate risk on firm performance in US manufacturing industry and examine if the hedging help reduce the foreign exchange rate risk. I am particularly interested in manufacturing industry because of the nature of business operation of manufacturing firms. Manufacturing firms in US are not only exposed to foreign exchange fluctuation from sales and revenue but also are exposed to foreign exchange rate risk for procurement, placement and investment. I find that the firms with extreme foreign exchange rate risk exposure exhibit lower daily return and firms …

Relationship Between Interest Rate And Bank Common Stock Return: Evidence From The Top 10 United States Banks And Financial Sector Index, Hieu Trung Tran

Honors Projects in Finance

This research paper investigates the effect of changes in long-term interest rates on the returns of the top 10 US banks included in the Financial Sector Index. There are three main parts of this paper.

The first part uses the Augmented Dickey-Fuller (ADF) test to test the “Random Walk” of banks’ common stock returns. Based on the test’s results, returns of banks’ common stock do not solely follow the “Random Walk”.

In the second part, the Two-Factor Arbitrage Pricing Theory is employed to test the effect of changes in long-term interest rate on the return of banks’ common stocks. The …

2013 Q1 Market Pulse Report, John K. Paglia

Pepperdine Market Pulse Report

The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2MM) and the lower middle market (values $2MM -$50MM). The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. The IBBA and M&A Source present the Market Pulse Survey with the support of the Pepperdine Private Capital Markets Project and the Graziado School of Business and Management at Pepperdine University.

Corporate Governance, Institutional Ownership, And The Decision To Pay The Amount Of Dividends: Evidence From Usa, John Obradovich, Amarjit Gill

Faculty Publications and Presentations

The decision to pay dividends is influenced by many financial factors. The purpose of this study is to find the relationships between corporate governance, institutional ownership, and the decision to pay dividends in American service firms. A sample of 296 American firms listed on New York Stock Exchange (NYSE) for a period of 3 years (from 2009-2011) was selected. This study applied a co-relational and non-experimental research design. The findings of this study indicate that the decision to pay dividends is a positive function of board size, CEO duality, and internationalization of the firm, and a negative function of institutional …

The Impact Of Corporate Governance And Financial Leverage On The Value Of American Firms, John Obradovich, Amarjit Gill

Faculty Publications and Presentations

This study examines the impact of corporate governance and financial leverage on the value of American firms. This study also seeks to extend the findings of Gill and Mathur (2011a). A sample of 333 firms listed on New York Stock Exchange (NYSE) for a period of 3 years from 2009-2011 was selected. The co-relational and non-experimental research design was used to conduct this study. Overall, findings show that larger board size negatively impacts the value of American firms, and CEO duality, audit committee, financial leverage, firm size, return on assets, and insider holdings positively impact the value of American firms. …

Director Ownership, Governance, And Performance, Sanjai Bhagat, Brian Bolton

Business Faculty Publications and Presentations

We study the impact of the Sarbanes-Oxley Act on the relationship between corporate governance and company performance. We consider 5 measures of corporate governance during the period 1998–2007. We find a significant negative relationship between board independence and operating performance during the pre-2002 period, but a positive and significant relationship during the post-2002 period. Our most important contribution is a proposal of a governance measure, namely, dollar ownership of the board members, that is simple, intuitive, less prone to measurement error, and not subject to the problem of weighting a multitude of governance provisions in constructing a governance index.

2013 Private Capital Markets Report, John K. Paglia

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 …

A Case Study On Risk Management: Lessons From The Collapse Of Amaranth Advisors Llc, Ludwig B. Chincarini

Finance

No abstract provided.

Performance Prediction Of Commodity Prices Using Foreign Exchange Futures, Yisa Ajao

2010-2016 Archived Posters

In an experimental quantitative research design, data from the Futures Market for commodities and foreign exchange futures covering 1986-2011 were obtained and addressed. A General Regression Neural Network was overlaid on this data to deduce a time-series prediction model for wheat prices. Performance prediction error was only 4.42%.

The Use Of Financial Data To Monitor Competing Models Of Firm Growth, Mohamed Rashwan, Tarek Ibrahim Eldomiaty

Business Administration

This paper examines three possible explanations for firm growth:

1 a firm grows according to the growth of sales revenues

2 a firm grows according to cost savings

3 a firms grows according to the two factors simultaneously

This paper introduces a new measure for firm growth based on sales-weighted growth of fixed assets. The estimation method uses the properties of the discriminant analysis to build three Z-score models, each of which discriminates low-growth firms from high-growth firms based on:

a sales ratios

b cost ratios

c sales and cost ratios together

The results show that the three discriminant models …