Finance and Financial Management Commons^™

The Impact Of Investor Protection Law On Takeovers: The Case Of Leveraged Buyouts, Jerry Cao, Douglas J. Cumming, Jeremy Goh, Meijun Qian, Xiaoming Wang

Research Collection Lee Kong Chian School Of Business

This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders’ wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find evidence suggesting that club LBOs are not priced lower than non-club deals after accounting for endogeneity problem. These results suggest that investor protection law may act as an important safeguard for minority shareholders in LBO transactions.

Investment Patterns In Singapore's Central Provident Fund System, Benedict S. K. Koh, Olivia S. Mitchell, Toto Tanuwidjaja, Joelle Fong

Research Collection Lee Kong Chian School Of Business

Rising elderly life expectancies imply the need to accumulate sufficient savings for retirement. This paper investigates the role of recent changes in the investment menu of the Singaporean Central Provident Fund (CPF) system. Our research explores the investment patterns of CPF participants and articulates their implications for policymakers. We find that most investors use their money for housing purchase and default the remainder to the CPF investment pool. The bulk of non-housing saving sits in bank accounts paying a low return. A fraction of workers does elect outside investment products, with high-income earners and males taking more risk than low-income …

Short-Horizon Contrarian And Momentum Strategies In Asian Markets: An Integrated Analysis, Thomas H. Mcinish, David K. Ding, Chong Soo Pyun, Udomsak Wongchoti

Research Collection Lee Kong Chian School Of Business

In this paper, we test the profitability of short-term contrarian and momentum strategies, which take into account the effects of trading activity, size/value characteristics, and asymmetric investor responses to news regarding stock markets in Japan, Taiwan, Korea, Hong Kong, Malaysia, Thailand, and Singapore during 1990–2000. Except for the Taiwanese and Korean markets, “winner” (“loser”) portfolios experience subsequent reversal (momentum) of stock prices. Among actively traded stocks, significant contrarian profits can be obtained from only “winner” portfolios in Japan, while sizeable momentum profits from “loser portfolios” in both Japan and Hong Kong.

Discretionary Behavior With Respect To The Adoption Of Sfas 142 And The Behavior Of Security Prices, Yoonseok Zang

Research Collection School Of Accountancy

In June 2001, the Financial Accounting Standards Board (FASB) issued SFAS 142, Goodwill and Other Intangible Assets, which takes a very different approach to how goodwill is accounted for subsequent to the initial recognition. The new statement requires that goodwill no longer be amortized, but instead requires a transitional goodwill impairment (initial impairment loss or IIL) test in the adoption fiscal year and an annual impairment test thereafter. Since SFAS 142 allows firms substantial judgment in the adoption year in determining the amount of impairment loss, this dissertation first examines management discretionary behavior in measuring the IIL. The result shows …

The Impact Of State Anti-Predatory Lending Laws: Policy Implications And Insights, Raphael W. Bostic, Kathleen C. Engel, Patricia A. Mccoy, Anthony Pennington-Cross, Susan M. Wachter

Finance Faculty Research and Publications

The subprime mortgage market, which consists of high-cost loans designed for borrowers with weak credit, has grown tremendously over the past ten years. Between 1993 and 2005, the subprime market experienced an average annual growth rate of 26 percent. As this market emerged, so did allegations that subprime loans contained predatory features or were the result of predatory sales practices.3 In the worst cases, brokers deceived borrowers about the meaning of loan terms or falsely promised to assist them in obtaining future refinance loans with better terms. In other situations, borrowers entered into loans with low teaser rates, not aware …

Pre-Requisites Of Political Decentralization In Egypt: Case Studies Of Local Popular And Executive Councils In The Villages Of Shubra Babel (Al-Gharbeya Governorate) And Al-Mahamid (Qena Governorate), Omar Ahmed Fouad Abdalla

Archived Theses and Dissertations

No abstract provided.

Further Evidence On The Approximation Of Confidence Intervals For Sharpe Style Weights: The Case Of Australian Listed Managed Funds, Kok Fai Phoon, John Watson, Jayasinghe Wickramanayake

Research Collection Lee Kong Chian School Of Business

No abstract provided.

A Behavioral Life-Cycle Approach To Understanding The Wealth Effect, Diane K. Schooley, Debra Worden

Faculty Publications - College of Business

The somewhat surprising strength in consumer spending in recent years has focused renewed attention on the much-debated wealth effect, the notion that when individuals feel wealthier, they consume more. This study utilizes survey data to examine the wealth effect within the context of the behavioral life-cycle model of savings. The results indicate that the likelihood of households spending more when their assets increase in value decreases with the portion of assets held in home equity. This unexpected finding is due to homeowners responding to the perceived wealth gain from increased home values by cashing out their equity. The likelihood increases …

2007-2008 Financial Summary, Morehead State University. Budget & Financial Planning Office.

Morehead State University Financial Summaries Archive

2007-2008 Financial Summary of Morehead State University.

Indiana State University Financial Report 2008, Indiana State University

Financial Reports

No abstract provided.

Underpricing, Overhang, And The Cost Of Going Public To Preexisting Shareholders, Steven D. Dolvin, Bradford D. Jordan

Scholarship and Professional Work - Business

IPO underpricing has been extensively studied; however, its impact on the wealth of preexisting shareholders has not been closely examined. We address the question of whether or not periods of high underpricing adversely affect preexisting shareholders. We find that high levels of underpricing are associated with increased share retention, which effectively offsets much of the potential cost. Overall, we find that the percentage of shareholder wealth lost is surprisingly stable over time, unlike underpricing itself. We also find that many factors known to be related to underpricing are not significant determinants of the cost of going public to preexisting owners.

Earnings Quality And Corporate Governance In Ipo Firms, Mary F. Calegari, M. A. Harjoto

Faculty Publications

No abstract provided.

Improving The Quality And Quantity Of Commercial Loans For Today's Lenders, Jeffrey Scott Kowallis

Theses Digitization Project

The purpose of this project is to create financial models and techniques that will streamline the loan process as well as improve the risk quality.

Test For The Existence Of Casualty Relationships Between The Market Indices Of The United States And The Gulf Cooperation Council Countries, Yusef Abdullah Yusef Alyusef

Theses Digitization Project

The purpose of this project was to test for such relations between the markets of the Gulf Cooperation Council (GCC) and the United States (U.S.). The GCC countries include the six countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). All six countries stock markets are put to the test to look for correlations and to determine the impact of any relationship between them and the U.S. On the other hand, the U.S. is the largest economy, as it represents one of the largest energy consumers of their oil production.

Behaviors Of The Stock Indexes-Correlation Analyses For The Stock Markets Of Japan, The United States, And China, Kazuma Koseki

Theses Digitization Project

The purpose of this project was to reveal relationships among the stock market performances of the most eye-catching countries the United States, China, and Japan.

Long And Short-Term Effects Of Regime Change On Emerging And Established Markets, Joseph Edward Mayne

Theses Digitization Project

The purpose of this study was to examine a 149-day period surrounding the capture of former Iraqi leader Saddam Hussein on December 13th, 2003. Daily stock returns were obtained from ten major stock market indexes, five from emerging Middle Eastern countries and five from established markets such as the United States and Japan. The ultimate significance of this study is that it can provide insight into whether or not the change of regime in Iraq had a stabilizing or destabilizing impact on the emerging markets of Iraq. This can shed light on future political escalation of violent conflict and give …

European Equity Markets And Currency Markets Interlinkages, Lucia Morales

Conference papers

This thesis examines the relationship between exchange rates and stock prices in a number of European countries. We focus our attention in three different regions of Europe that are: four Eastern European markets, Czech Republic, Hungary, Poland and Slovakia, four South European Countries: Greece, Italy, Portugal and Spain and one West European Country: Ireland, using daily data we analyze the relationship between these two financial markets from 1996 to 2006. Both the long-run and the short-run association between these variables are analyzed. We employed the Engle and Granger two step and Johansen cointegration techniques, Vector Error Correction Modeling Technique and …

Volatility Spillovers Between Stock Returns And Foreign Exchange Rates: Evidence From Four Eastern European Countries, Lucia Morales

Conference papers

This paper investigates the nature of volatility spillovers between stock returns and exchange rates changes for the Czech Republic, Hungary, Poland and Slovakia for the 1999-2006 period. We divide our sample in two sub period, prior to the introduction of the Euro as since the single currency has been introduced. We use an EGARCH modelling which takes into account whether bad news has the same impact on volatility as good news. Our results show that in terms of volatility spillover effects from stock returns to exchange rates returns, there is non-existence of significant spillovers in these countries, what suggest the …

Indigent Criminal Defense: Qualitative Review On Economic Value, Ralph Mckinney, Lawrence P. Shao

Management Faculty Research

This article reviews indigent criminal defense programs on an international level and generally concludes that societies want to protect legitimate society members', within the respective society's jurisdiction, fundamental property rights concerning criminal prosecution. While this conclusion was as the researchers expected, several unexpected and contrary observations were noted. Society wealth and a greater return on investments of public funds can dramatically shift a society's value of basic shared rights.

Preferred Habitat For Liquidity In International Short-Term Interest Rates, Vladimir Kotomin, Stanley D. Smith, Drew B. Winters

Faculty Publications – Finance, Insurance, and Law

Risk-shifting window dressing and a preferred habitat for liquidity have been offered as possible explanations as to why U.S. money market rates are higher before the year-end than afterwards. The two hypotheses differ in the timing of the rate decline at the year-end and the evidence on the timing of the decline supports the preferred habitat hypothesis in U.S. money markets. This paper extends this line of research to the behavior of international short-term interest rates at year-ends and quarter-ends using London Interbank Offer Rates (LIBOR) for 11 different currencies. The results suggest that the behavior of LIBOR for five …

Outcomes Of The Transition Process In Central And Eastern Europe: The Roles Of Culture And Society In Adopting Democratic Capitalism, Brian Lee

Inquiry: The University of Arkansas Undergraduate Research Journal

In this paper, the author explores the reasons why some states have achieved higher levels of progress in transitioning from a communist system to a system rooted in democratic capitalism. Unlike the majority of scholars, though, he does not fault any one government's policies or the reform path chosen for a country's success or supposed failure along the way. Instead, the author concludes that the outcome of the transition process is dependent upon the interaction between the new formal institutions being adopted and the prevailing informal societal institutions and rules found throughout the region. If the formal institutions are in …

Flights-To-Quality: The Effects Of Market Volatility On Short Term U.S. Treasury Yields, Craig Michael Cox

Inquiry: The University of Arkansas Undergraduate Research Journal

Flights-to-quality are the sudden, and sometimes irrational, rebalancing of investment portfolios to include more liquid and safer investments during times of uncertainty, high market volatility, or other unusual stock market environments. While previous research has explained flights-to-quality in terms of liquidity needs and credit risk premiums, this paper examines the significant statistical relationship between the VIX Index of implied market volatility and yields on U.S. Treasury bills. I found that the VIX Index explains a significant portion of U.S. Treasury yield variability and that the models become more significant and accurate as the maturity of the Treasuries increases. In terms …

On Nonlinearities In Kse 100 Index Stock Return, Khurshid M. Kiani

Business Review

This research investigates possible existence of asymmetries in business cycle fluctuations in Karachi Stock Exchange (KSE) 100 index over money market rates. I model the relationship between excess stock return in KSE 100 index using a number of nonlinear time series models for constructing linearity tests for testing linearity in KSE 100 excess returns. These tests include Keenan test, Ramsay RESET test, and its improved versions i.e. RESET1 and RESET2 tests. The results based on Keenan test show statistically significant evidence of nonlinearities in KSE 100 excess returns. Likewise the results from Ramsay RESET test confirm this behavior. However, the …

Wheat Invest. A Compelling Business Case For Investment In The Western Australian Wheat Industry, Department Of Agriculture And Food, Western Australia

Farm Systems and Economics published reports

Western Australia (WA) is an ideal location for wheat production. It has competitive advantages including:

• A proven track record in wheat production accounting for approximately 50 per cent of Australia's production. Based on a five year average from 2003/04 to 2007/08*, WA produces around 7.7 million tonnes of wheat per year.

• Over the past five years, the top 25 per cent of farmers averaged 10 per cent return on capital excluding changes in land value.

• Export focussed due to WA's small population. 90 per cent of WA's wheat is exported

• Abundant land at competitive prices and …

Entrepreneurial Spirit In Government Managed Enterprises: Evidence From The U.S. General Aviation Airports, Vitaly S. Guzhva, Massoud Bazargan, David A. Byers

Management, Marketing and Operations - Daytona Beach

While a number of studies introduce entrepreneurship in the public sector, there is still a need for empirical research in this field. We use a survey of U.S. general aviation airport managers to investigate the benefits of entrepreneurial spirit in public sector management. The results of logistic regressions suggest that the airport managers’ beliefs in importance of self-sustainability significantly improve the likelihood of general aviation airports to be self-sustaining. On the other hand, the airport specific characteristics, such as a favorable location, county population, and others are not statistically significant in achieving self-sustainability. Our findings support the literature that argue …

Jessica Burley On The Poor Always Pay Back: The Grameen Ii Story By Asif Dowla And Dipal Barua. Bloomfield, Ct: Kumarian Press, Inc. 2006. 320pp., Jessica Burley

Human Rights & Human Welfare

A review of:

The Poor Always Pay Back: The Grameen II Story by Asif Dowla and Dipal Barua. Bloomfield, CT: Kumarian Press, Inc. 2006. 320pp.

Stock Markets And Household Wealth: Can A Stock Market Crash Cause A Recession In The U.S. Economy?, Ishan Singh

Honors Theses

Stock market wealth effects on the level of consumption in the United States economy have been constantly debated; there is evidence for arguments for and against its prominence and its symmetry. This paper seeks to investigate the strength of its negative effect by creating models to analyze unexpected shocks to the Standard and Poor's 500 index. First, a transmission mechanism between the stock market and GDP is established through the use of second-order vector autoregressive models. Following which, theory from the life cycle model and adaptations of previous researchers' models are used to create a structural model. This paper finds …

Estimating The Dynamics Of Mutual Fund Alphas And Betas, Harry Mamaysky, Matthew Spiegel, Hong Zhang

Research Collection Lee Kong Chian School Of Business

This article develops a Kalman filter model to track dynamic mutual fund factor loadings. It then uses the estimates to analyze whether managers with market-timing ability can be identified ex ante. The primary findings are as follows: (i) Ordinary least squares (OLS) timing models produce false positives (nonzero alphas) at too high a rate with either daily or monthly data. In contrast, the Kalman filter model produces them at approximately the correct rate with monthly data; (ii) In monthly data, though the OLS models fail to detect any timing among fund managers, the Kalman filter does; (iii) The alpha and …

Cost Structures In Defined Contribution Systems: The Case Of Singapore's Central Provident Fund, Benedict S. K. Koh, Olivia S. Mitchell, Joelle H. Y. Fong

Research Collection Lee Kong Chian School Of Business

Retirement systems are increasingly asked to do an ever-better job of enhancing the performance of pension investments. The Singaporean Central Provident Fund permits pension system participants to keep their money in a government-run investment pool, or if they wish, they may select professionally managed unit trusts for their retirement accumulations. Opting for investment choice also exposes members to additional investment costs not charged by the government-managed account. This paper explores the charges levied by the private fund managers and we show that foreign ownership, active style of management and equity/balanced funds tend to be most expensive. We conclude with a …

Firm Diversification And Earnings Management: Evidence From Seasoned Equity Offerings, Chee Yeow Lim, Tiong Yang Thong, David K. Ding

Research Collection Lee Kong Chian School Of Business

Popular press suggests that diversified firms are more aggressive in managing earnings than non-diversified firms. We examine this claim in the seasoned equity offering (SEO) setting, where firms have been shown to have the incentive to manage earnings upwards. Using the cross-sectional modified Jones [(1991) J Accounting Res 29:193–228] model to measure discretionary current accruals, we find that discretionary current accruals are higher among diversified firms than in non-diversified ones. Our evidence is consistent with the view that the extent of firm diversification is directly related to the degree of earnings management. We further show that diversified issuers with high …