Finance and Financial Management Commons^™

Islamic Banking And Takaful : The Development And Future Challenges In Malaysia, Jalaludin Mohd Noor, Khairuddin Hanafiah

Student Works (2000-2009)

The establishment of the Mil Ghamr Local Savings Bank of Egypt in 1963 marked a new milestone in the development of Islamic banking system. The interest-free banking concepts introduced by Mil Ghamr signaled to the Muslim community that Islamic principles were applicable to modern day banking business. The government of Malaysia has been actively promoting Islamic banking with the view to have Islamic financial system operating side-by-side with the conventional interest-based system, Both are geared towards the nation's socio­economic development goals. The establishment of Bank Islam Malaysia Berhad in 1983 was the first step towards this vision. Ten years later, …

The Use And Usefulness Of Managed Fund Ratings In Australia, Paul Gerrans

Theses: Doctorates and Masters

Managed fund ratings have become an increasingly available piece of information to guide choice of managed funds. From the perspective of modem portfolio theory and specifically within the efficient markets paradigm, the value of such information is questionable. No profitable relationship should be able to be demonstrated between a fund rating and its subsequent performance. This thesis investigates the relationship between fund ratings and subsequent performance using Morningstar ratings, the most prominent Australian rating provider, for two of the largest and most important groups of managed funds. A positive relationship between a fund's star rating, its quantitative and qualitative components, …

A Rhetorical Analysis Of Theodore Hesburgh's Fund-Raising Speeches For The University Of Notre Dame, Peggie Mathaba Ncube

Dissertations

Problem Statement. Literature reveals that college or university presidents play a key role in raising funds for their institutions. These roles are well documented, and yet many presidents face challenges in raising adequate funds for their institutions. Success stories of some university presidents are recorded, but no research has studied their rhetoric in raising funds in an attempt to uncover their formula for success. One such president is Theodore Hesburgh of the University of Notre Dame.

Methodology. This study assumes a rhetorical design, specifically the Burkean dramatistic approach to analyze Theodore Hesburgh's fund-raising speeches to the alumni of the …

An Investigation Of Adjustable-Rate Mortgage Pricing Features, William K. Templeton, Robert S. Main, J. B. Orris

Scholarship and Professional Work - Business

Investigates costs and risks associated with the choice of terms for adjustable rate mortgages. Impact of mortgage-rate changes on the size of payments for adjustable-rate mortgages; Examination of the choice of length of the fixed period before the occurrence of the first interest rate; Assessment of the choice of annual and lifetime caps for a standard one year adjustable rate mortgages.

Firm Transparency And The Costs Of Going Public, James S. Ang, James C. Brau

Faculty Publications

We demonstrate that firms that are more transparent pay less, in all components of issuance costs, to go public.We employ a sample of 334 previous leveraged buyouts and a characteristic-matched control sample to test the hypothesis that greater firm transparency before the issue decreases the flotation costs of the initial public offering. These flotation costs are divided into initial underpricing, underwriter discount, administrative expenses, and the overallotment option required to take the firm public. Our results provide further evidence of the asymmetric information hypothesis as it applies to initial public offerings.

Do Tax-Deferred Exchanges Impact Purchase Price? Evidence From The Phoenix Apartment Market, Andrew Holmes, Barrett A. Slade

Faculty Publications

Many authors have commented on the compliance risk associated with taxdeferred exchanges. However, no published studies explicitly address whether the risks associated with the exchange process impact the price at which exchanged assets trade. Using a unique data set that documents transactions for nondirect exchanges, this study examines the price impact of tax-deferred exchanges on apartment transactions in the Phoenix, Arizona, market. Consistent with the price pressure hypothesis originally developed by Scholes (1972) and Kraus and Stoll (1972) and the tax capitalization hypothesis proposed by Oates (1969), the data show that exchange participants pay an economically significant premium to acquire …

Persistence Of Profits : Intra-And Inter-Sector Comparisons, Liew Toh Peng

Student Works (2000-2009)

The dynamics of the competition in a market economy is expected to function continuously to eliminate the profit differentials among different firms or industries in the· long run. The persistence of profit rates differentials was estimated with an autoregressive model for a sample of firms listed in 9 sectors of the Main Board of Kuala Lumpur Stock Exchange (KLSE). We applied the methodology proposed by lm et al. ( I 997) to test for the persistence of profits in a panel data structure. A few specifications were considered and the autoregressive model without a lagged difference term was the best …

A Metropolitan Transaction-Based Commercial Price Index: A Time-Varying Parameter Approach, Henry J. Munneke, Barrett A. Slade

Faculty Publications

This study examines the usefulness of time-varying parameter techniques for constructing reliable transaction-based commercial price indices for metropolitan areas. Time-varying parameter techniques allow the implicit prices of differing quality characteristics to vary intertemporally, overcoming the potential bias imposed by holding implicit prices fixed and simply interpreting time dummy variables as in a conventional hedonic approach. This paper empirically investigates three time-varying parameter methods (Chained, Laspeyres, and Paasche) and considers the potential for sample selection bias. Precision measures are constructed to examine the reliability of the respective indices.

Linkages Between The Malaysian And Other Selected Stock Markets Before And After The 1997 Financial Crisis : Evidence From Cointegration Tests, Ai Ting Foo

Student Works (2000-2009)

A lot of focus has been placed on the interdependence of stock markets over the last two decades in view of the trend towards market deregulation and globalization of economies. Therefore, this paper attempts to examine the linkages among the stock markets pre- and post-1997 financial crisis. This paper analyzes the linkages between the Malaysian stock market with the United States of America (US), Hong Kong, Taiwan, South Korea, Singapore, Thailand, Indonesia and Philippines using pairwise cointegration. The study uses weekly data from January 1994 to Jun 2001. Johansen and Juselius (JJ) ( 1990) co integration approach is used to …

Daman Al-Mithl In The Contract Of Al-Ijarah And Al-Rahn : A Comparative Jurisprudential Study, Hossam Eldin Ibrahiem

Student Works (2000-2009)

Al-daman (guarantee) is one of the legitimate means used to protect ownership and other financial rights. It is one of the means of security upon which people have been dependent for a long time. As people use it, it develops with the development of their economic and commercial dealings. Al-daman has, as such become an important means which plays a vital and basic role in the development of modem economies. Its role is so vital that it is not an exaggeration to say that al-daman  has become the basic pillar of the modem economies and all commercial dealings for banks, …

Pemikiran Abu Yusuf Mengenai Kewangan Islam : Kajian Dalam Kitab Al-Kharaj, Hanin Mahamud Azaki

Student Works (2000-2009)

This dissertation explains the contribution of Abu Yusuf in Islamic Finance based on his Kitab al-Kharaj in which he has been regarded as an outstanding Muslim thinker of Hanafi school of thought. In this work, Abu Yusuf highlighted the position of land taxation (al-kharaj) according to Islamic perspective. ln other words, it tries to view Islamic rulings concerning land tax, its procedures as well as its measurement. Hopefully it will assist in the implementation of land tax accordance with the spirit of Islam. Chapter one explains the background of Abu Yusuf, his teachers and writings. Chapter two mentions the theory …

Risk-Based Audit Approach In The Internal Audit Department Of A Financial Institution : A Qualitative Study, Jans Mei Lin Lim

Student Works (2000-2009)

Traditionally, the internal auditing approach has been very procedures or process driven. Lately, however, there is greater emphasis on the risk-driven approach in an attempt to achieve greater effectiveness and efficiency in internal auditing. This new approach which is risk-driven is called Risk Based Auditing. A risk­based audit focuses on the organization's business risks, that is, risks which can affect a company's profitability and which hold the key to its survival. To analyze this risk, the internal auditor has to look into the working of the company to understand how it operates, and the short and long term business risks …

Finding The True Performance Of Australian Managed Funds, Victor Soucik

Theses: Doctorates and Masters

When making conclusions about the performance of managed funds, it is critical that the framework in which such performance is measured provides an accurate and unbiased environment. In this thesis I search for true performance of the two major classes of funds- equity as well as fixed interest managed funds. Focusing, first on the former class, I examine five measurement models across three risk-free proxies, nine benchmarks proposed by the extant literature (covering conditional and unconditional as well as single and multi factor definitions) and over three independent periods in an effort to identity (in a consistent setting) the most …

Do Banks Price Owner–Manager Agency Costs? An Examination Of Small Business Borrowing, James C. Brau

Faculty Publications

Ang, Cole, and Lin (2000) provide evidence that supports the theoreticalwork of Jensen and Meckling (1976) on agency costs. As a further examination, I conduct a test to determine the economic significance of owner–manager agency conflicts. Using the same data source and empirical framework as Ang, Cole, and Lin (2000), I test to determine if banks chargeapremiumwhenextendingloans tofirmswith variousownership structures. In empirical tests, I find that banks do not require an owner–manager agency premium either through increased interest rates or through the requirement of collateral. Instead, I find that the interest rate is significantly affected by the length of the …

Akad Al-Bay Bi Thaman Ajil Di Bank Rakyat Mengikut Perspektif Undang-Undang Kontrak Islam, Hamizan Mohd. Nor

Student Works (2000-2009)

Al-bay bi thaman ajil (BBA) is a financing contract according to Islamic principles. It is a well-known product and is offered by Islamic Banking System in Malaysia including Bank Rakyat itself. The product is an alternativies to the financing scheme of the conventional bank. Therefore, the dissertation studies the practice of SBA contract with attention given to the concept and nature of BBA contract in the Islamic transaction and its practise at Bank Rakyat. The study also discusses certain relevant concept such as debt, buy and selling (transaction), profits and usury in Islam all of which constitute some important aspects …

An Evaluation Of The Financial Sector Master Plan & The Capital Market Master Plan, Soo Yeong Ewe

Student Works (2000-2009)

The financial sector is poised to enter a new era of institutional development and maturity with the unveiling of both the Financial Sector Master Plan (FSMP) by Bank Negara Malaysia and the Capital Market Master Plan (CMP) by the Securities Commission in 2001. FSMP is a blueprint to chart the way forward for the country's banking, insurance and other financial sectors for the next decade from year 2001 to 20 I 0. It aims Lo develop a more resilient. competitive and dynamic financial system that will be able to meet the challenges of further liberalization and globalization. CMP is a …

Community Banking In The E-Business Era, Peter Southard, Keng Siau

Research Collection School Of Computing and Information Systems

This paper reviews how existing and potential uses of Internet technology can generate a competitive advantage for rural community banks. To do so, it offers a framework for analyzing Internet technology investment decisions. Organizations in this segment of the banking industry are often more removed from centers of technology and have traditionally been more conservative in their approaches to information technology (among other things). Banking Associations have developed in the U.S., such as the Independent Bankers Association, to try and help community banks coordinate marketing, legislative, and other issues that they have in common. The use of Internet technology can …

Differences Of Opinion And The Cross Section Of Stock Returns, Karl B. Diether, Christopher J. Malloy, Anna Scherbina

Faculty Publications

We provide evidence that stocks with higher dispersion in analysts' earnings forecasts earn lower future returns than otherwise similar stocks. This effect is most pronounced in small stocks and stocks that have performed poorly over the past year. Interpreting dispersion in analysts' forecasts as a proxy for differences in opinion about a stock, we show that this evidence is consistent with the hypothesis that prices will reflect the optimistic view whenever investors with the lowest valuations do not trade. By contrast, our evidence is inconsistent with a view that dispersion in analysts' forecasts proxies for risk.

Defined Contribution Pensions: Plan Rules, Participant Choices, And The Path Of Least Resistance, James J. Choi, David Laibson, Brigitte C. Madrian, Andrew Metrick

Faculty Publications

We assess the effect on savings behavior of several different 401(k) plan features, including automatic enrollment, automatic cash distributions, employer matching provisions, eligibility requirements, investment options, and financial education. We also present new survey evidence on individual savings adequacy. Many of our conclusions are based on an analysis of micro-level administrative data on the 401(k) savings behavior of employees in several large corporations that implemented changes in their 401(k) plan design. Our analysis identifies a key behavioral principle that should partially guide the design of 401(k) plans: employees often follow the path of least resistance. For better or for worse, …

Testing The Capital Asset Pricing Model Efficiently Under Elliptical Symmetry: A Semiparametric Approach, Douglas J. Hodgson, Oliver Linton, Keith Vorkink

Faculty Publications

We develop new tests of the capital asset pricing model that take account of and are valid under the assumption that the distribution generating returns is elliptically symmetric; this assumption is necessary and sufficient for the validity of the CAPM. Our test is based on semiparametric efficient estimation procedures for a seemingly unrelated regression model where the multivariate error density is elliptically symmetric, but otherwise unrestricted. The elliptical symmetry assumption allows us to avoid the curse of dimensionality problem that typically arises in multivariate semiparametric estimation procedures, because the multivariate elliptically symmetric density function can be written as a function …

A Cross-Firm Analysis Of The Impact Of Corporate Governance On The East Asian Financial Crisis, Todd Mitton

Faculty Publications

In a sample of 398 firms from Indonesia, Korea, Malaysia, the Philippines, and Thailand, firm-level differences in variables related to corporate governance had a strong impact on firm performance duringthe East Asian financial crisis of 1997–1998. Significantly better stock price performance is associated with firms that had indicators of higher disclosure quality (ADRs and auditors from Big Six accounting firms), with firms that had higher outside ownership concentration, and with firms that were focused rather than diversified. The results suggest that individual firms have some power to preclude expropriation of minority shareholders if legal protection is inadequate.