Finance and Financial Management Commons^™

Performance Implications Of Stage-Wise Lead User Participation In Software Development Problem Solving, Jorge A. Colazo

School of Business Faculty Research

The problem-solving view of new product development sees the innovation process as a series of problem-solving loops broken down into three stages: problem detection, analysis and removal. We link this framework with lead user-driven innovation regarding software and show that effort by lead users (LUs) in each stage of the innovation problem solving process is, in varying degrees, associated with the source code’s quality, the productivity of the development process and the software’s popularity. We also test whether front loading the problem solving process is associated with development performance and we find that front loading is associated with increased code …

Developing A Framework For Sustainable Manufacturing Strategies Selection, Lanndon A. Ocampo, Eppie Estanislao–Clark

DLSU Business & Economics Review

Manufacturing organizations adopt sustainability manufacturing in their attempt to address the triple-bottomline (TBL): environmental stewardship, economic growth, and social well-being. This study was conducted in order to characterize the programs adopted by a manufacturing firm with respect to the TBL and in the end, recommend a framework that could be utilized by decision-makers in the firm as they start to pursue a more sustainable strategy. This paper utilized the case study of a prime multinational semiconductor firm that promotes sustainability among their corporate initiatives.The semiconductor industry was chosen because of its prominence in sustainability efforts worldwide. Weaknesses of the current …

An Empirical Analysis Of The Relationship Between Capital Flows And The Real Exchange Rate In India, Shashank Goel

International Journal of Applied Management and Technology

This paper analyzes the relationship between the net capital flows (NCFs) and other fundamentals and the real exchange rate (RER) in India consequent to the liberalization of the capital account in 1990s for the period 1996–1997 to 2012–2013 using the Autoregressive Distributed Lag approach to cointegration. Most studies in the literature emphasize the role of a number of real and monetary variables and domestic policies in determination of RER. But there is no consensus on what actually determines the RER. The estimation includes NCFs, government consumption expenditure, terms of trade, trade openness, Gross Domestic Product growth rate, change in foreign …

Bank Valuation In Malaysia: An Empirical Comparison Of Conventional And Interest-Free (Islamic) Banking Models, Charlie Charoenwong, Ramin Cooper Maysami, David K. Ding

Research Collection Lee Kong Chian School Of Business

Islamic banking, according to institute for Islamic Banking and Insurance "refers to a system of banking or banking activity that is consistent with the principles of the Shari'ah (Islamic rulings) and its practical application through the development of Islamic economics. Shari'ah prohibits the payment or acceptance of interest charges (riba) for the lending and accepting of money, as well as carrying out trade and other activities that provide goods or services considered contrary to its principles." The thrust of the current article is to examine the underlying factors and variables that guide the valuation of a sample of five Malaysian …

Economies And Cultures Can’T Be Separated, Aldemaro Romero Jr.

Publications and Research

No abstract provided.

Using Tips To Discount To Present Value, Raymond Strangways, Bruce L. Rubin, Michael Zugelder

Finance Faculty Publications

The practice of forensic economics has a long history of trying to identify the correct interest rate to use when valuing economic losses in personal injury and wrongful death cases. We trace the legal history as it relates to the appropriate interest rates and adjustments for inflation. We then discuss the use of Treasury Inflation Protected Securities, TIPS, and an analysis of the combined effect of realized inflation and taxes on the effective return. We come to the unexpected conclusion that the use of TIPS does not lend itself to a simple adjustment to the rate for taxes nor eliminate …

Online Portfolio Selection: A Survey, Bin Li, Steven C. H. Hoi

Research Collection School Of Computing and Information Systems

Online portfolio selection is a fundamental problem in computational finance, which has been extensively studied across several research communities, including finance, statistics, artificial intelligence, machine learning, and data mining. This article aims to provide a comprehensive survey and a structural understanding of online portfolio selection techniques published in the literature. From an online machine learning perspective, we first formulate online portfolio selection as a sequential decision problem, and then we survey a variety of state-of-the-art approaches, which are grouped into several major categories, including benchmarks, Follow-the-Winner approaches, Follow-the-Loser approaches, Pattern-Matching--based approaches, and Meta-Learning Algorithms. In addition to the problem formulation …

Two Essays On The Low Volatility Anomaly, Timothy B. Riley

Theses and Dissertations--Finance and Quantitative Methods

I find the low volatility anomaly is present in all but the smallest of stocks. Portfolios can be formed on either total or idiosyncratic volatility to take advantage of this anomaly, but I show measures of idiosyncratic volatility are key. Standard risk-adjusted returns suggest that there is no low volatility anomaly from 1996 through 2011, but I find this result arises from model misspecification. Caution must be taken when analyzing high volatility stocks because their returns have a nonlinear relationship with momentum during market bubbles.

I then find that mutual funds with low return volatility in the prior year outperform …

Three Essays On Investments, Xin Hong

Theses and Dissertations--Finance and Quantitative Methods

This dissertation consists of three essays on investments. The first essay examines the incidence, determinants, and consequences of hedge fund share restriction changes. This paper finds that nearly one in five hedge funds change their share restrictions (e.g., lockup) over the period of 2007-2012. Share restriction changes are not random. Fund’s asset illiquidity, liquidity risk, and performance are related to share restriction changes. A hazard model indicates that funds who actively manage liquidity concerns live longer by adjusting share restrictions. The paper examines whether changes in share restrictions create an endogeneity bias in the share illiquidity premium (Aragon, 2007) and …

Two Essays On Nonbank Financial Institutions, Di Kang

Theses and Dissertations--Finance and Quantitative Methods

Evidence shows that nonbanks, which are now significant participants in the corporate loan market, exploit information gained from lending to trade in public securities. In the first essay, I examine whether these institutions use loan-based information to facilitate merger and acquisition (M&A) deals. I find that firms are more likely to become targets if they borrow from nonbanks rather than banks. Borrowing from a larger number of nonbanks or from those with a sizeable client network also enhances a firm’s acquisition prospects. When nonbanks gain more information about borrowers through loan amendments or multiple loans, the impact of nonbank lending …

An After Tax Valuation Of Debt Instruments, Charles J. Higgins

Finance Faculty Works

The net present value of any loan at is own discount rate is shown to be zero in both pre tax and after tax worlds. This allows separation from any investment net present value analysis. Further, it simplifies the analysis and it is argued is appropriate even in weighted average cost of capital scenarios wherein the cost of capital equal to its own after tax discount rate and remains a zero in terms of its own net present value.

Performance Persistence Of Institutional Investors In Ipo Market : Evidence From China, Sibo Liu

Lingnan Theses

Using a dataset consisting of complete bid information for 477 bookbuilt IPOs that took place during Nov 2010 to Oct 2012 in China, I examine whether the performance of institutional investors demonstrates persistence in the IPO market. Building on the adverse selection model as developed by Rock (1986) and a twoperiod analysis, I develop three hypotheses and obtain empirical results that are consistent with the hypotheses. Firstly, I find that the performance of institutional investors continues into the next period. Secondly, I find that the performance persistence exists only for the investors with good past performance but not for investors …

The China Renaissance: The Rise Of Xi Jinping And The 18th Communist Party Congress By The Writers, Artists And Editors Of The South China Morning Post, Edited By Jonathan Sharp, Tai Wei Lim

DLSU Business & Economics Review

No abstract provided.

Volatility Of The Utilities Industry: Its Causal Relationship To Other Nine Industries, Kuo-Hao Lee, Ahmed Y. Elkassabgi, Wei-Jen Hseih

Faculty Publications - The LeMoyne Smith School of Business

The goal of this study is to investigate the causality relationship between the Utilities industry and the nine other industries. Previous literatures show that volatility of stock prices is informative; Granger causality is applied in this research by using of a leveraged bootstrap test developed by Hacker and Hatemi-J (2006) to examine the behavior of the volatility. The results indicate that causality of the volatility of the Utilities industry on the volatility of seven other industries, except the Information Technology and Telecommunication Services industries. The data also suggest that Financials industry has impact on the Utilities industry.

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 …

Something Old Is New Again: Airline-Airport Consortia And Key Stakeholder Benefits, Janet K. Tinoco, Brian W. Sherman

Management, Marketing and Operations - Daytona Beach

Although consortia in the aviation sector predate deregulation by decades, this type of cooperative agreement, particularly in the airline industry, is experiencing a resurgence of interest from industry participants and academia. Airlines are searching for new innovative ways to reduce costs while airports are searching for private partners to improve terminal facilities and equipment and update services. Passengers, on the other hand, continue to balance price versus performance in their travel experience. This empirical research study finds evidence of positive influences of airline consortia to all key stakeholders; however the majority of benefit appears to be felt by the airlines …

Retail Islamic Financial Services In North America: The (Upper) Michigan Connection, Brian A. Zinser

Journal Articles

The purpose of this paper is to explore how a small remote Midwestern bank reformulated itself into a major marketer of retail Islamic financial services in the United States and influenced Islamic financial services marketing in North America. The paper is based on a review of existing literature and a case study of how University Bank, now based in Ann Arbor, Michigan, has become the leading providerof Islamic financial services in the United States. University Bank whose principals are Roman Catholic identified the Muslim market in Southeast Michigan as measurable, differentiable, accessible and substantial. As part of the Bank’s reformulation …

Financial Forest, Karen Carlson

Electronic Theses and Dissertations

Regular savings behavior is critical for low-income Americans to achieve financial mobility. New technology tools are being used to improve personal awareness and attention to financial goals. This thesis reviews mobile learning (mLearning) research and leading commercial personal finance smartphone apps, both of which inform the design of Financial Forest, a savings app. Participants in the 4-week Financial Forest savings study are found to have a statistically significant improved perception of the difficulty of building an emergency fund.

An Exploratory, Correlational, Self-Rater Study On Authentic Leadership Values Of Adventist Local Conference Chief Financial Officers In The United States, Juan R. Prestol-Puesán

Dissertations

The Problem

Seventh-day Adventist (SDA) local conference treasurers, or Chief Financial Officers, are trusted by church members to manage the finances of the church and provide financial leadership, yet the denomination does not know how treasurers develop their values and leadership capacity as financial administrators. This study examined how treasurers compare with the leadership values of morality, integrity, and fairness prevalent today in positive forms of leadership theories. It explores SDA treasurer or financial officer self-assessment with the rating that their team members provide, allowing us to know the authenticity of their values as leaders.

Method

This is a census …

Essays On Authorized Shares, Stock Splits, And Top-Up Options, Hilmi Songur

Open Access Theses & Dissertations

This Dissertation consists of two separate but broadly related essays investigating the role of authorized shares in corporate events. In the first essay, I examine the relation between management's power to issue new shares of stock and stock split abnormal announcement returns. I posit that the mechanical reduction in excess authorized shares (EAS) caused by a stock split, decreases management's power to issue stock. I argue that this results in lower agency costs and thereby increases shareholder's value. After controlling for other factors, and consistent with my hypothesis, I find that the pre-split ratio of unissued authorized shares to total …

Performance Analysis Of Banks Headquartered In Hollywood Versus Silicon Valley., Stoyu Ivanov

Faculty Publications

In this study we examine the performance of banks headquartered in Hollywood and banks headquartered in Silicon Valley in the period - first quarter 2008 until second quarter 2012, which includes the period of the Great Recession - December 2007 to June 2009. We find that during the financial crisis both Silicon Valley and Hollywood banks suffered but Silicon Valley banks much less than Hollywood banks. After the recession, banks in both regions improved performance again Silicon Valley banks recovering faster. We also find that the level of deposits, the leverage ratio and total loan chargeoffs consistently play a role …

The Contributors, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Essays On Dividend Equivalent Rights And Ceo Compensation, Zi Jia

LSU Doctoral Dissertations

This dissertation studies a little-known executive compensation device called dividend equivalent rights (DERs). DERs entitle an executive to receive dividends, known as dividend equivalents (DEs), on unearned performance-based stocks and options. In the first essay we do empirical studies on the market reaction of news about DERs and the incentives that DERs can bring. We find that about 22% of S&P500 firms allow for these payments and about 10% actually make such payments. While investors react negatively to announcements of DE payments, DERs can be beneficial to shareholders by inducing a company to disgorge unproductive cash. If a firm allows …

Essays On Mortgage Securitizations, Hong Lee

LSU Doctoral Dissertations

This dissertation studies how the affiliation between different entities in securitization process make different market outcomes, and how this estimation of affiliation effects is susceptible to limitations in securitized residential mortgage data. Three essays constitute the dissertation. The first essay illustrates the limitations and potential bias in the loan-level trustee data. Substantial amounts of loan attributes and risk factors are missing. The patterns of data omissions dramatically vary across different risk factors, sponsors, and trustees, and over the time. Missing of one risk factor is in general positively correlated with missing of the other. Omissions of loan attributes are systematically …

On The Governance Of Innovation: Institutional Ownership Vs. Stock Price, Huong Thi Thu Le

LSU Doctoral Dissertations

Firms can change their outstanding shares to manage their stock price levels. Those with lower stock prices tend to attract more speculative trading, which causes higher price volatility and may force their managers to excessively focus on short-term earnings at the expense of R&D and other long-term projects. Thus, I hypothesize that keeping high stock price levels allows firms to (i) limit speculative traders’ influences on stock prices and thus mitigate investor short-termism, and (ii) enhance R&D productivity. Indeed, I find that high-priced firms are less likely to cut R&D to reverse an earnings decline, less likely to fire their …

Baker Hughes: Greasing The Wheels In Kazakhstan (Fcpa Violations And Implementation Of A Corporate Ethics And Anti-Corruption Compliance Program, Mark Holtzblatt, Norbert Tschakert

Business Faculty Publications

This case discusses the Foreign Corrupt Practices Act (FCPA) violations of Texas-based Baker Hughes, in connection with its oil service operations in Kazakhstan. You will assume the position of a newly assigned audit committee member who is trying to understand Baker Hughes’ FCPA violations related to its Kazakhstan operations. Your investigation will involve the examination of the SEC court complaint, press releases, government and company publications and 10-K annual reports. Baker Hughes’ FCPA experiences illustrate the corruption risks and difficulties that multinational corporations encounter in conducting international business. The subsequent creation of a new Baker Hughes Code of Conduct, FCPA …

Money Market Funds: Analyzing Reform, Paige M. Brooks

Honors Theses and Capstones

This thesis analyzes money market funds since inception in 1983 through the financial crisis in 2008 to current day. Specifically, it discusses the newly implemented reform and if this reform will be an effective way to minimize money market fund systemic risk.

How Large Are The Benefits Of Emerging Market Equities?, C. Mitchell Conover, Gerald R. Jensen, Robert R. Johnson

Finance Faculty Publications

We perform a comprehensive evaluation of the benefits of emerging market equities by extending previous research in four fundamental ways. The contribution of this study is that it 1) evaluates a more complete sample; 2) examines performance measures that account for asymmetric return distributions; 3) separates emerging markets by region; and 4) considers the influence that the market environment has on the benefits of emerging market investments. Our results suggest that previous research has understated the benefits associated with investing in emerging markets. We find that broad emerging market indices have relatively low downside risk, which results in Sortino ratios …

"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.

Deal Innovations In Mergers And Acquisitions: Do Go-Shop Provisions Create Real Benefits?, Chenguang Shang

Wayne State University Dissertations

Along with the private equity boom in the mid-2000s emerged a new M&A deal technology - the "go-shop" provision. In this paper, I address the question whether go-shop provisions are utilized by target managers to pursue private benefits or are used to protect the fiduciary interests of the target shareholder. I investigate the effectiveness of go-shop provisions by empirically testing two competing hypotheses: (a) the window-dressing hypothesis, and (b) the shareholder interest hypothesis.

This is the first study to shed light on the impact of go-shop provisions on the wealth of both the target and the bidder shareholders, and thereby …