Finance and Financial Management Commons^™

Two Essays On Insider Trading And Option Grants Around The Filing Of Influential Patents, Liu Pan

Doctoral Dissertations

Research documents that insiders, who have access to private information, appear to trade with profits before major corporate events like mergers, bankruptcy, dividend announcements, and future cash flow news (see, e.g., Seyhun, 1990; Seyhun and Bradley, 1997; John and Lang, 1991; Jiang and Zaman, 2010). Another recent stream of studies find that the size and quality of a firm's patent portfolio are positively related to the firm's future stock returns (Hirshleifer, Hsu, and Li, 2012; Pandit, Wasley, and Zach, 2011). However, there is little systematic evidence on whether insiders act opportunistically when they possess private information about the firm's patent …

Two Essays On Insider Trading And Option Grants Around The Filing Of Influential Patents, Liu Pan

Doctoral Dissertations

Research documents that insiders, who have access to private information, appear to trade with profits before major corporate events like mergers, bankruptcy, dividend announcements, and future cash flow news (see, e.g., Seyhun, 1990; Seyhun and Bradley, 1997; John and Lang, 1991; Jiang and Zaman, 2010). Another recent stream of studies find that the size and quality of a firm's patent portfolio are positively related to the firm's future stock returns (Hirshleifer, Hsu, and Li, 2012; Pandit, Wasley, and Zach, 2011). However, there is little systematic evidence on whether insiders act opportunistically when they possess private information about the firm's patent …

Interest-Rate And Calendar-Time Effects In Money Market Fund And Bank Deposit Cash Flows, Vladimir Kotomin, Stanley D. Smith, Drew B. Winters

Faculty Publications – Finance, Insurance, and Law

We examine the sensitivities of aggregate balances of retail and institutional money market funds (MMFs) and their potential substitutes, bank deposits, to changes in short-term interest rates while controlling for calendar-time effects. We find that institutional MMF and time deposit cash flows are sensitive to recent changes in short-term interest rates. Institutional MMF investors appear to take advantage of arbitrage opportunities created by MMFs using the amortized cost technique. Retail MMF investors are much less responsive to changes in interest rates.

Reassessing Anomalies And Puzzles, Keming Li

Finance and Real Estate Dissertations - Archive

While standard asset pricing models assume a frictionless environment and investors are risk-averse individuals who maximize their utility based on all the available information in real time. The asset pricing literature has empirically documented numerous anomalies and puzzles, which cannot be explained by the traditional finance theory. Investors are exposed to these entire abnormal phenomenons, but at the same time investors do not fully understand them. This problem motives numbers of recent publications and also my dissertation.My dissertation is consisting of three essays. The first essay looks at the components of information uncertainty. Specically, I decompose information uncertainty into fundamental …

In Times Of Financial Distress: Perspectives From Valuation, Information Asymmetry And Returns, Ramya Rajajagadeesan Aroul

Finance and Real Estate Dissertations - Archive

The dissertation addresses unanswered questions in asset valuation through the lens of financial distress in three different asset markets namely equity market, residential property market and REITs market. The first two essays explore the valuation impact of financial distress in equity and residential property markets while the third essay examines the role of information asymmetry in REITs market around credit rating announcements. In the first essay, I investigate why highly distressed firms earn low returns. By employing a direct misvaluation measure, I find that distressed firms with substantial overvaluation earn negative returns. I also further study the characteristics 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 …

Sustainable Revenue Generation System For Nonprofit Institutions Of Higher Education, Graig Arcuri

Walden Dissertations and Doctoral Studies

Social and individual spending on higher education has outpaced social and individual economic growth, resulting in nonprofit institutions of higher education (NIHEs) growing increasingly dependent upon unsustainable governmental subsidies and tuition increases. The purpose of this study was to examine the interactions among components of the nonprofit university system, existing revenue generation methods, and sustainability of revenue generation, thereby generating a new sustainable revenue theory for nonprofit universities within the United States. This qualitative grounded theory study used a multiphase design incorporating data from the literature review, historical documents, and phone interviews from a theoretical sampling of 10 NIHEs. Participants …

Financial Resources And Technology To Transition To 450mm Semiconductor Wafer Foundries, Thomas Earl Pastore

Walden Dissertations and Doctoral Studies

Future 450mm semiconductor wafer foundries are expected to produce billions of low cost, leading-edge processors, memories, and wireless sensors for Internet of Everything applications in smart cities, smart grids, and smart infrastructures. The problem has been a lack of wise investment decision making using traditional semiconductor industry models. The purpose of this study was to design decision-making models to conserve financial resources from conception to commercialization using real options to optimize production capacity, to defer an investment, and to abandon the project. The study consisted of 4 research questions that compared net present value from real option closed-form equations and …

Cointegration, Causality And Price Discovery In The Nafta Markets: A Study Of Sector Indices And Trade Flow Data From The Perspective Of Us Markets, Aamir Khan

Finance and Real Estate Dissertations - Archive

This dissertation examines the long-run linkage among the equity markets and sectors of the NAFTA economies by employing Cointegration and Vector Error Correction Model (VECM) framework. In addition, I also seek to identify the short-run & long-run causality and the direction of adjustment factor among the sectors of the US, Canadian and Mexican markets. Furthermore, I develop a multivariate model to examine the long-run impact of exchange rates on the linkage among the NAFTA markets & sectors. In addition, I also investigate the impact of US trade flow on the causal relationship it has with that of the Canadian & …

"Through The Looking Glass; Understanding Consumer Inaction In Retail Financial Services", Tara Rooney, Katrina Lawlor, Eddie Rohan

Reports

Understanding why consumers choose to remain in relationships which they find less than satisfactory is a key concern for relationship marketing theory. In this paper we explore the alternative choices available to consumers after exit has been considered and then declined. Applying a narrative methodology within a social constructionist framework, the paper presents a theory of Relationship Neutrality. We go through the looking glass, into to a world of relationship contradictions and irrationality to consider long term relationship engagement which is different from the one theory has grown accustomed to.

The Bankruptcy-Law Safe Harbor For Derivatives: A Path-Dependence Analysis, Steven L. Schwarcz, Ori Sharon

Faculty Scholarship

U.S. bankruptcy law grants special rights and immunities to creditors in derivatives transactions, including virtually unlimited enforcement rights. This article argues that these rights and immunities result from a form of path dependence, a sequence of industry-lobbied legislative steps, each incremental and in turn serving as apparent justification for the next step, without a rigorous and systematic vetting of the consequences. Because the resulting “safe harbor” has not been fully vetted, its significance and utility should not be taken for granted; and thus regulators, legislators, and other policymakers—whether in the United States or abroad—should not automatically assume, based on its …

Regulating Systemic Risk In Insurance, Daniel Schwarcz, Steven L. Schwarcz

Faculty Scholarship

As exemplified by the dramatic failure of AIG, insurance companies and their affiliates played a central role in the 2008 global financial crisis. It is therefore not surprising that the Dodd-Frank Act—the United States’ primary legislative re-sponse to the crisis—contained an entire title dedicated to insurance regulation, which has traditionally been the responsibility of individual states. The most important insurance-focused reforms in Dodd-Frank empower the Federal Reserve Bank to impose an additional layer of regulatory scrutiny on top of state insurance regulation for a small number of “systemically important” nonbank financial companies, such as AIG. This Article argues, however, that …

Extraterritorial Impacts Of Recent Financial Regulation Reforms: A Complex World Of Global Finance, Lawrence G. Baxter

Faculty Scholarship

No abstract provided.

Comments On The September 29, 2014 Fsb Consultative Document, ‘Cross-Border Recognition Of Resolution Action’, Steven L. Schwarcz, Mark Jewett, Bruce Leonard, Catherine Walsh, David Kempthorne

Faculty Scholarship

This CIGI Paper No. 51 was released on December 3, 2014 by the Centre for International Governance Innovation (CIGI) as a response to the Financial Stability Board’s (FSB) Consultative Document, “Cross-Border Recognition of Resolution Action.” Principally authored by CIGI Senior Fellow Steven L. Schwarcz (who works with the think tank’s International Law Research Program), the Paper comments on the policy measures proposed by the FSB, an international body that monitors and makes recommendations about the global financial system, to address the cross-border legal uncertainties of troubled systemically important financial firms. In that context, the Paper explains why a statutory approach …

Crummer Suntrust Portfolio Recommendations: Crummer Investment Management [2014], Elena Anemogiannis, Tatiana Castillo, Saken Smailov, Juan Iznaga, Christopher Simmonds, Garrett Flick, Thomas Trevisani, Charles Ward, Ang Li

Crummer Truist Portfolios

On balance, we believe the market will move modestly higher in the short-term. As we believe the economy is still recovering, we recommend over weighting the portfolio in cyclical sectors and underweighting countercyclical sectors. Like all soothsayers, we can only hope our glass is half‐full.

Reaching The Yield In The Non-Investment Grade Corporate Bond Market, Michael Willar

Theses

The spread1between non-investment grade corporate bonds and Treasury bonds have contracted nearly 16% since the depths of the credit crisis in 2008, buoyed by strong investor demand. In this study, I conduct an empirir.al analysis on the relationship between unconventional monetary policy instituted in 2008 and market participants reaching for yield (RFY) in the speculative grade corporate bond market. This study uses the BofA High Yield Master II Index to quantify the RFY phenomenon, and is regressed against a number of interest and independent variables over two separate time periods namely, Ql 2003: Q3 2008 and Q4 2008-Q3 2014. The …

Essays On Corporate Innovation, Lai Van Vo

LSU Doctoral Dissertations

In this dissertation, I explore the underlying mechanisms through which a firm innovates and invests in Research and Development (R&D). It consists of two essays. The initial essay investigates the effects of aggregate stock market liquidity on innovation at both the aggregate and firm levels for publicly traded firms in the U.S., and shows a significant and positive effect at both levels of aggregation. Next, the essay provides two underlying mechanisms through which aggregate stock liquidity enhances innovation. First, high stock market liquidity reduces the cost of raising external capital, making it easier for firms, especially for small firms and …

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, …

Determinants Of Public Funding For Professional Athletic Venues, John K. Holland

CMC Senior Theses

This paper examines the financing of professional athletic venues and why certain franchises are able to obtain high percentages of overall stadium funding from the public. Existing literature shows the negligible effect of new athletic venues on the local economy and per capita income, and therefore the benefits from such a project are largely intangible. I use an ordinary least squares regression and show that the more successful a team is the less public funding they tend to receive. I also find that broad city statistics do not represent the specific areas that policy makers consider when making decisions about …

An Analysis Of Bitcoin Market Efficiency Through Measures Of Short-Horizon Return Predictability And Market Liquidity, William L. Brown

CMC Senior Theses

Bitcoins have the potential to fundamentally change the way value is transferred globally. Their rapid adoption over the past four years has led many to consider the possible results of such a technology. To be a viable currency, however, it is imperative that the market for trading Bitcoins is efficient. By examining the changes in availability of predictable outsized returns and market liquidity over time, this paper examines historical Bitcoin market efficiency and establishes correlations between market liquidity, price predictability, and return data. The results provide insight into the turbulent nature of Bitcoin market efficiency over the past years, but …

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.

Evaluating Retirement Planning : The Proper Mix Of Investments?, Woodrow D. Richardson, Rachel Graefe-Anderson

Business

This decision-based case developed from primary sources utilizes disguised names, but actual data to afford students the opportunity to evaluate and suggest changes to a real retirement portfolio. Leon and Billie Reynolds have asked their niece, Stacie, to review their retirement planning. The couple has accumulated just over $1,000,000 in investments with Teachers Insurance Annuity Association (TIAA) and College Retirement Equities Fund (CREF). The case gives the couple’s net worth, current salaries, insights into their spending habits, target retirement ages, family situation, and current allocations of their retirement funds. The case asks students to apply his or her financial planning …

Examining The Costs Of Providing An Adequate Education For Michigan's K-12 Public School Students, Sean Haskin Wightman

Wayne State University Dissertations

ABSTRACT

EXAMINING THE COSTS OF PROVIDING AN ADEQUATE EDUCATION

FOR MICHIGAN'S K-12 PUBLIC SCHOOL STUDENTS

by

SEAN WIGHTMAN

February 2014

Advisor: Dr. Michael F. Addonizio

Major: Educational Leadership and Policy Studies

Degree: Doctor of Philosophy

Because the Federal No Child Left Behind Act of 2001, which requires students to perform at predefined proficiency levels on state standardized testing instruments, adequate school funding has become arguably the single most important factor influencing the success of children in schools. Because State legislators are the one's primarily responsible for establishing annual budgets for K-12 public education, it is essential they are made aware …

Essays On Financial Constraints, Export, And Entrepreneur Gender In Latin America, Maria Barulina

Open Access Theses & Dissertations

This research focuses on financial constraints faced by firms in Latin America and the Caribbean and their financing patterns. Unique firm level survey data from World Bank Enterprise Survey (WBES) is leveraged for this study. The sample used in this research consists of over 22,000 firms from 31 Latin American and Caribbean (LAC) countries for the period between 2006 and 2010.

First, this author empirically estimates the effect of financial constraints on a firm's export behavior in terms of probability to export and export intensity. The analysis shows that older, larger firms with a share of foreign ownership, and those …

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. -

A Stochastic Volatility Model With Leverage Effect And Regime Switching, Hong Jiang

Legacy Theses & Dissertations (2009 - 2024)

Modeling the volatility of asset returns is a very important study in financial economics. Among the time-varying volatility models, the Stochastic Volatility (SV) models are argued to have advantages over the autoregressive conditional heteroskedasticity (ARCH) models. The purpose of this article is to put forward a generalized and flexible Stochastic Volatility model, the Stochastic Volatility Model with Leverage Effect and Regime Switching (SVLR model), which could capture the complex features of financial time series to the most extent.

Geometric Information Of Yield Curve, Unspanned Stochastic Volatility, And Affine Heath-Jarrow-Morton Models, Qingbin Wang

Legacy Theses & Dissertations (2009 - 2024)

The differences between the daily routine of fitting the yield curve (or equivalently, the forward rate curve) and the dynamic

Understanding Consumers' Thoughts And Feelings About Financial Literacy And How Financial Literacy Affects Their Lives Using The Zaltman Metaphor Elicitation Technique (Zmet), Belle Marie

Doctor of Business Administration (DBA)

Financial literacy impacts the lives of individuals, families, and communities. Not all individuals appear to possess the basic financial knowledge necessary to plan for a comfortable lifestyle (Mandell, 2008). Some individuals possess financial knowledge but other psychosocial factors interfere with the ability of that knowledge to influence their actual consumer financial behavior (Dodaro, 2011; Estelami, 2008; Huston, 2010). Personal construct theory (Kelly, 1955) posits that behavior reflects self-constructed meaning and reality derived from a combination of experience and anticipation of future events that frame an individual's worldview. Meaning is self-constructed yet influenced by society's complex interrelationships. Thus, behavior reflects social …

Global Expansion Of National Securities Laws: Extraterritoriality And Jurisdictional Conflicts, Junsun Park

The University of New Hampshire Law Review

[Excerpt] “As securities fraud has grown increasingly transnational, it has become necessary to expand the reach of anti-fraud provisions to persons and entities participating in global securities markets. So far, however, no single antifraud provision exists to govern the entire global marketplace. Although each country strives to combat international securities fraud by using its own regulatory regime, problems can develop when extraterritorial application of national securities laws leads to regulatory overlapping or conflicts. In light of these problems, it is necessary to set forth clear guidelines for determining whether national securities laws can apply extraterritorially and, if so, how far …

Putting Retirement At Risk: Has Financial Risk Exposure Grown More Quickly For Older Households Than Younger Ones?, Christian Weller, Sara Bernardo

Gerontology Institute Publications

Financial markets have been characterized by boom and bust cycles since the 1980s, while the responsibility for managing retirement wealth has increasingly shifted onto individual households at the same time. Policymakers and experts have expressed concern over rising risk exposure among older households, who appear to be increasingly exposed to the growing financial risks just as they near retirement. We consider household data from the Federal Reserve’s Survey of Consumer Finances from 1989 to 2010 to analyze the correlation between age and risk exposure. We test if older households’ risk exposure has indeed grown over time, if it has increased …