Finance and Financial Management Commons^™

A Funding Challenge For Charities: Getting The Right Mix, Yew Kee Ho, Gregory Tan

Social Space

The current financial crisis has sparked many new challenges for charities with regards to the inflow of charity dollars. Ho Yew Kee and Gregory Tan examine current income sources of 37 institutions of public character (IPCs) in Singapore and urge charities to revisit their current funding mix.

The Case Against Exempting Smaller Reporting Companies From Sarbanes-Oxley Section 404: Why Market-Based Solutions Are Likely To Harm Ordinary Investors, John Orcutt

Law Faculty Scholarship

Section 404 is arguably the most controversial provision of Sarbanes-Oxley (“SOX”). The controversy focuses on whether Section 404’s substantial compliance costs exceed the statute’s benefits, with no consensus on Section 404’s cost-effectiveness. If Section 404 turns out to be cost-ineffective, the companies that are most threatened are smaller companies, as cost-ineffective regulations tend to disproportionately harm smaller companies. This Article considers whether Congress and the SEC should exempt smaller reporting companies from Section 404 compliance, as that would allow for a market-based resolution to the uncertain value of Section 404 for smaller reporting companies. Smaller reporting companies would be relieved …

Intertemporal Relations Between Stock Indices-Correlation Analysis For The Stock Markets Of The United States, England, And Singapore, Michael Nabil Razzouk

Theses Digitization Project

This research study examines the relationships between various equity markets throughout the world. In this study, returns from the Chicago Stock Exchange, the London Stock Exchange and the Singapore Stock Exchange are compared and analyzed to see if correlations between the markets exist.

The Impact Of Stock Split Announcements On Stock Price: A Test Of Market Efficiency, Carlos Garcia De Andoain

Theses & Honors Papers

The purpose of this study is to test whether the investor can make an above normal return by relying on public information impounded in a stock split announcement. Using risk adjusted event study methodology, this study tests "how" and "when" public announcements of forward and reverse stock splits affect stock price. Stock split announcement samples include 38 two for one, 39 three for two, and 10 reverse splits. A total o f 36,714 observations for the announcement samples and the corresponding S&P 500 stock index were analyzed using standard risk adjusted event study methodology. Results suggest that the firms' public …

Using Peer Grading And Proofreading To Ratchet Student Expectations In Preparing Accounting Cases, Laura R. Ingraham, B. A. Chaney

Faculty Publications

Accounting educators struggle with ways to incorporate the development of critical thinking and communication skills into the curriculum. Case analysis is one tool for developing these skills. We examine whether students’ case analysis scores improve as a result of participation in peer grading and peer review. We find that students improve their ability to perform case analyses after both evaluating and being evaluated by student peers. Students initially experience an Expectation Ratcheting learning effect after evaluating the case of a peer. Subsequently, students experience an Enhanced Feedback learning effect from the comments and suggestions made by the peers who evaluated …

Ethical And Faith-Based Investments: An Assessment Of Performance, Hisar Joel Munte

Theses Digitization Project

The purpose of this thesis will explore the risk and return characteristics of socially responsible investing by comparing three indices, the Domini 400 Social Index (DS400 Index.), the KLD Catholic Values 400 Index (CV400 Index), and the Dow Jones Islamic Market Index (DJIMI). The second objective of the thesis is to contrast the three Socially Responsible Investment (SRI) Indices with the Standard and Poor's 500 index (SP500). In a bid to meet investor demands, mutual fund managers have developed un-conventional portfolios that factor in ethics, sustainability, social, religious and environmental factors that affect returns.

Ua30/1/2 Planning, Design & Construction Building File, Wku Archives

WKU Archives Collection Inventories

Records created during the construction and renovation of buildings at WKU.

Exploring A New Financial Paradigm In Social Investment, Arthur R. Wood

Social Space

The business sector can be more involved in financing the work of the social sector. Arthur R. Wood makes his case through the sanitation issue and shares Ashoka’s plans in paving the way for more collaboration between the social and business sectors.

Quantitative Evaluation On Indigent Criminal Defense Funding, Ralph E. Mckinney, Lawrence P. Shao

Management Faculty Research

This article takes a quantitative approach to build upon McKinney and Shao's (2008) qualitative contribution concerning resource a/location of indigent criminal defense programs. By compating public funds of multiple societies over time, we are able to add important knowledge surrounding property rights valuations using a new concept called GDP Indexed Purchasing Power Parity. The findings of this study show that GDP-PPP provides for better indigent criminal defense analysis than per capita figures.

Accounting Conservatism In International Financial Reporting Standards And U.S. Generally Accepted Accounting Principles, Hang Minh Pham

Inquiry: The University of Arkansas Undergraduate Research Journal

During the past five years, the number of US. citizens who own foreign securities has increased by thirty percent. This trend has led to the need for a uniform accounting system that would increase the comparability and consistency of financial statements across countries in the world. Today, over 100 countries have adopted International Financial Reporting Standards (IFRS) as their primary accounting system. The European Union required the use of IFRS in 2005. In the U.S., the Securities and Exchange Commission is considering the adoption of IFRS in 2014. IFRS and U.S. Generally Accepted Accounting Principles (GAAP) are different in many …

Market Volatility Asymmetries: The Effects Of Stock Market Returns On Realized And Implied Volatilities, Matthew M. Chestnut

Inquiry: The University of Arkansas Undergraduate Research Journal

Volatility is an integral and inescapable variable of financial engineering, modeling, and finance theory itself Classical financial economics proxies volatility for risk itself, as it becomes difficult to predict future price realizations of a given asset when that asset exhibits significant price volatility over a given time. However, the nature of volatility as it is explained by classical financial economics has been extensively questioned in the previous three decades, since it is characterized as a function of uncertainty aggregate market psychology-that is, as a function of fear, greed, exuberance, and other fundamental human instincts and emotions. While previous research has …

Year-End And Quarter-End Effects In The Term Structure Of Sterling Repo And Eurepo Rates, Mark D. Griffiths, Vladimir Kotomin, Drew B. Winters

Faculty Publications – Finance, Insurance, and Law

Griffiths and Winters (1997) find a year-end preferred habitat for liquidity for US repo rates, and, later, Griffiths and Winters (2005) find a similar preferred habitat for US money market instruments. Kotomin et al. (2008) document the preferred habitat in LIBOR for the major world currencies, excluding the British pound. We examine the robustness of these results using pound sterling and euro repo rates and find a year-end preferred habitat for liquidity in the euro repo rates. The British interest rates continue to behave differently, and we provide a possible explanation as to why this occurs.

Price Discovery Of Credit Risk, Yibing Du

Finance and Real Estate Dissertations - Archive

This study investigates financial markets' price discovery for credit risk across the stock, bond, and credit derivatives markets. This study also examined what factors affect financial market's price discovery for credit risk. Four factors are studied: liquidity, transaction cost, credit ratings and maturities. Using weekly equity, bond and credit default swap market data from January 2000 to October 2007, it is found that stock market and bond market, credit derivative market and bond market are cointegrated for long term credit risk price discovery. In short term, both stock market and credit derivatives market lead the bond market for credit risk …

Customer Perception Of The Commercial Banks’ Services In Kano Metropolis, Ahmed Audu Maiyaki

Business Review

It is a general belief that business is changing and will continue to change the way we work and live in the twenty- first century. For instance, technology shrinks time and space, customers can be anywhere in the globe and they can transact business at anytime of the day. The business environment in the present time is practically undergoing a major revolution in the way customers buy, shop, and decide to come back or to take their business elsewhere. Companies are increasingly realising that the balance of power is shifting from sellers to buyers. The customers need exactly what they …

Asian Financial Crisis 1997: An Empirical Investigation, Khurshid M. Kiani

Business Review

Multinomial Asian Financial Crises are said to happen because of financial mismanagement due to post Bretton Woods era financial liberalization, enhancement in private sector debt, currency crises, investor panic as well as inept attitude of the governments in these countries after start of the crises. Since Taiwan is the only country that was not hit as hard as the other countries in the region due to the brunt of these crises we decided to analyze its firm structure to unfold the causes of its survival. Our analysis reveal evidence that manager operated firms finances their growth through external finance without …

Going Green - Impact On Residential Property Values, Ramya Rajajagadeesan Aroul

Finance and Real Estate Theses - Archive

Hedonic pricing model is generally used to empirically understand the relationship between various housing characteristics and the housing values. In the past hedonic studies have looked at the relationship between the housing prices and structural features, environmental amenities, neighborhood characteristics, time variables and even financing. But real estate researchers have greatly overlooked to study the impact of greenness on residential properties though there has been a huge interest among the researchers and practitioners on green buildings. This study poses the primary question of if any potential relationship exists between greenness and property values. This study further extends the research question …

The Association Between Data Intermediaries And Bond Rating Classification Model Prediction Accuracy, Pavani Tallapally

Doctoral Dissertations

Kamstra et al. (2001) developed a bond rating classification model that was based on a similar model developed by Ederington (1985). While both studies use Moody's bond ratings as dependent variables, the studies differ with respect to the independent variable data source, that is, Kamstra et al. (2001) use financial statement data extracted from Moody's Industrial Manual (now known as Mergent) while Ederington (1985) uses financial statement data extracted from Compustat. Given this, and given the divergent results of the two studies, the following question must be addressed: Do different data sources yield models that differ considerably with respect to …

Personal Financial Knowledge Of College Students, Adam Moehn

Honors Program Theses

This research is about looking at what affects the personal financial knowledge and behaviors of college students. Primarily this research is focused on the effects of taking a personal financial course by answering the following questions.

- Does taking a personal finance course increase personal financial knowledge?

- Does taking a personal finance course improve financial behaviors?

- Does an increase in personal financial knowledge improve financial behaviors?

The answers to these questions will help to determine how important personal finance courses and personal financial knowledge are. This research will also look at other areas which may affect personal financial …

The Financial Fiasco: What Started It And How Long Will It Last?, Jodi Sweeney

Honors Program Theses

Throughout my college career, I have been able to watch something quite phenomenal unfold within my fields of study, real estate and finance. In the fall of 2005, the real estate market was still hot and booming. As the months and years have gone on, something happened that very few saw coming: A financial crisis that caused such turmoil Wall Street as we knew it will be dramatically changed. What caused this inevitable downturn? How much damage will it cause before it stops? What changes are needed to bring an end to this financial predicament? After thoroughly analyzing the critical …

Risky Asset Substitution In The Insurance Industry: An Historical Example, Brenda Wells, Karen Epermanis, Larry A. Cox, Michael Mcshane

Finance Faculty Publications

In the 1980s, life insurers sold guaranteed investment contracts (GICs) to pension plan sponsors, then backed these contracts with portfolios heavily weighted with higher risk assets such as common stocks and junk bonds. Ultimately this caused considerable loss, and history has repeated itself in many respects in recent years via holdings of equities and mortgage-backed securities. We evaluate the risky asset substitution in the life insurance industry from an historical perspective to determine if organizational form or other factors might be rationale for managerial decisions to engage in asset substitution. We find evidence that stock insurer managers are more likely …

Does Size Matter In The Hedge Fund Industry?, Song Wee Melvyn Teo

Research Collection Lee Kong Chian School Of Business

We document a negative and convex relationship between hedge fund size and future risk-adjusted returns. Small hedge funds outperform large hedge funds by 3.65 percent per year after adjusting for risk. This over performance is not driven by fund age, leverage, serial correlation, or self-selection biases. The capacity constraints manifest across various investment styles and regions. In particular, they are strongest for funds managed by multiple principals who trade small, illiquid securities, suggesting that the observed diseconomies can be traced to price impact and hierarchy costs (Stein, 2002). While investors direct disproportionately more capital to smaller funds, they do not …

Idiosyncratic Risk And The Cross-Section Of Expected Stock Returns, Fangjian Fu

Research Collection Lee Kong Chian School Of Business

Theories such as Merton (1987, Journal of Finance) predict a positive relation between idiosyncratic risk and expected return when investors do not diversify their portfolio. Ang, Hodrick, Xing, and Zhang (2006, Journal of Finance 61, 259-299) however find that monthly stock returns are negatively related to the one-month lagged idiosyncratic volatilities. I show that idiosyncratic volatilities are time-varying and thus their findings should not be used to imply the relation between idiosyncratic risk and expected return. Using the exponential GARCH models to estimate expected idiosyncratic volatilities, I find a significantly positive relation between the estimated conditional idiosyncratic volatilities and expected …

Hdtv Division Of Global Electronics, Inc., Alan J. Kirkpatrick, Leonard K. Gashugi

Faculty Publications

CASE DESCRIPTION: The primary objective of this case is to describe realistic capital budgeting issues within a large organization. The case illustrates ways that staff inside a corporate finance department (and in related departments) position themselves in the capital planning process. The case also stresses steps that a large firm can take to leverage its size to gain the maximum benefit of investment projects. Further,, the case demonstrates sensitivity analyses in the capital budgeting process, and the resulting internal rates of return. We suggest the case be used to follow the related case “HDTV Systems”, which shows the firm as …

Chicago Islamic Microfinance Project, Karen Ahmed, Cynthia Shawamreh

College of Business Faculty and Staff Works

No abstract provided.

Where Is Islamic Finance Going? Ethical Investment Strategies, Karen Ahmed

College of Business Faculty and Staff Works

No abstract provided.

Reit Ipos And The Cost Of Going Public, Steven D. Dolvin, Mark Pyles

Scholarship and Professional Work - Business

We examine Initial Public Offerings (IPOs) of Real Estate Investment Trusts (REITs) that went public between 1986 and 2004. Consistent with previous studies, we find that REIT IPOs are associated with lower levels of underpricing relative to traditional issues. We also find that REITs are associated with smaller file price revisions. Both findings are potentially attributable to the lower level of uncertainty associated with pricing REITs. In contrast, using an alternative measure of issuance costs that incorporates the share retention decision by preexisting owners, we find no significant difference between REIT and non-REIT issues, suggesting the results of previous studies …

The Rise Of Private Equity Media Ownership In The United States: A Public Interest Perspective, Matthew Crain

Publications and Research

This article examines the logic, scope, and implications of the influx of private equity takeovers in the United States media sector in the last decade. The strategies and aims of private equity firms are explained in the context of the financial landscape that has allowed them to flourish; their aggressive expansion into media ownership is outlined in detail. Particular attention is paid to the public interest concerns raised by private equity media ownership relating to the frenzied nature of the buyout market, profit maximization strategies, and the heavy debt burdens imposed on acquired firms. The article concludes with discussion of …

The Importance Of Police Performance As A Determinant Of Satisfaction With Police, James E. Larsen, John P. Blair

Finance and Financial Services Faculty Publication

Problem statement: Citizen satisfaction with police performance is an important concern of public managers because police performance is central to citizens and accounts for a large share of urban budgets. Also, there is substantial disagreement in the literature regarding determents of citizen satisfaction.

Approach: Logistic regression was used to investigate the results of three public opinion surveys, conducted biannually, to identify determinants of citizen satisfaction with police.

Results: The explanatory power of the models was indicated by concordance of over .80. The findings indicated that satisfaction was largely determined by citizen perception of police behaviors. Four variables reflecting perceptions of …

Crummer/Suntrust Portfolio: Analysis And Recommendations [2009], Troy Mcclell, Victor Genev, Justin Fitch, Tyler Tedrow, Tim Russell, Abigail Martin, Greg Gabowski, Kate Bauernschmidt, Lander Iriarte, Arif Somji, Joe Volpe, Bessie Newman, Danny Gardner, Renaldo Lama, Grant Mccaghren

Crummer Truist Portfolios

The first consideration was determining the amount of risk that should be taken. At present, the portfolio has a defensive position, guarding against a turbulent economy. However, as the portfolio trades only once a year, the question facing the team was when the market will rebound. If we believe the market will rebound between now and May, 2010, it would be prudent to position the portfolio more aggressively than it is currently allocated. Conversely, if the market remains uncertain, continuing a defensive position is sensible. The determination of the team was to take a more aggressive position than the portfolio …

Manchester Center: A Comparative Analysis Of Similar Local Nonprofits Using Financial Ratios, Brittani Wilson

MPA/MPP/MPFM Capstone Projects

The Manchester Center is a nonprofit agency located in Lexington, KY whose mission is "to enrich lives in our neighborhood through educational, recreational, and social activities." A project team from the University of Kentucky studied the Center's finances, internal business processes, employee development, and services to customers to develop a balanced scorecard. It became evident to the team that the center was strained financially and additional funds would be beneficial to the organization However, before any suggestions could be made it was important to determine where the Manchester Center stood financially compared to similar nonprofit organizations in the Lexington area. …