Finance and Financial Management Commons^™

The Intersection Of Theory And Action

Business Exchange

Ray Whittington, dean of the Driehaus College of Business, discusses the various ways that the university expresses its synergistic relationships with Chicago financial institutions and the benefits to DePaul alumni, students and the larger community.

Faculty Focus: Hongjun Yan Challenges Students To See Financial Decision-Making From A Fresh Perspective

Business Exchange

Chair and Director of Richard H. Driehaus Center for Behavioral Finance Hongjun Yan found himself drawn to alternative theories of behavioral finance when he was studying finance. His scholarly work probes how asset pricing is affected by market imprefections and "bounded rationality," and he relishes challenging a new generation of business students to question conventional thinking.

2017-2018 Budget Request, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University System Board and System Administration Budget Request 2017-2018, Fiscal Year Ending June 30, 2018.

Banking And The Third Industrial Revolution, Singapore Management University

Perspectives@SMU

Banks should leverage on the computer’s power to create value

Acquisitions And Regulatory Arbitrage By Captive Finance Companies, Deborah Smith, Mina Glambosky, Kimberly Gleason, K. Bryan Menk

Business Faculty Publications

Captive finance firms play an important role as financial intermediaries. Yet, they receive little attention in financial research. Recently, finance companies have grown by engaging in acquisition activities. Given their unique characteristics, finance companies may be more capable of extracting gains from acquisitions than other firms. We explain their advantages, and assess the market response and long-term valuation of finance companies that engage in acquisitions. Our results indicate that acquisitions by captive finance firms are wealth enhancing in the short term and the long term. However, the market reacts negatively when flexible captive financing firms acquire highly regulated depository institutions.

Notes With Interest: Department Of Finance Newsletter, N05, Fall 2016, University Of Northern Iowa. Department Of Finance.

Department of Finance Newsletter

News about the activities of the Department of Finance

Drivers Behind The Monitoring Effectiveness Of Global Institutional Investors: Evidence From Earnings Management, Incheol Kim, Steve Miller, Hong Wan, Bin Wang

Finance Faculty Research and Publications

This paper studies the drivers behind the monitoring effectiveness of institutional investors in curbing earnings management in an international setting. We identify three distinct drivers and propose two competing hypotheses: the hometown advantage hypothesis predicts that because of proximity to monitoring information, domestic institutions have a comparative advantage over foreign institutions in deterring earnings management, whereas the global investor hypothesis predicts that foreign institutions have a comparative advantage because of their proclivity toward activism and ability to deploy superior monitoring technologies. Consistent with the hometown advantage hypothesis, in aggregate, domestic, but not foreign, institutional ownership is associated with less earnings …

A Roadmap For Reducing Gun Violence In America, Daniel Webster

Center for Policy Research

How do you reduce gun violence in America? It seems rather daunting. I’m going to take you through some key things I think we can do to have far less gun violence in America

On Saving Money, Charles J. Higgins

Finance Faculty Works

In the consideration to save more money, whether for retirement or say for travel, many focus on the less important activities and ignore some of the more important ones.

The Price Contagion Effects Of Financial Reporting Fraud And Reputational Losses: Evidence From The Individual Audit Partner Level, Ferdinand A. Gul, Chee Yeow Lim, Kun Wang, Yanping Xu

Research Collection School Of Accountancy

This study investigates the existence of price contagion effects for the low-quality audits of individual audit partners and the associated reputational losses in China. Low-quality partners are identified as those whose clients have been sanctioned by regulators for financial reporting fraud. Our evidence shows that sanctions induce a significant stock price decline among the contagion firms that share common low-quality partners and common low-quality audit firms; however, the decline is greater for the former. We also find that the price contagion effects of low-quality partners are more pronounced for firms located in regions with weak institutional development and less pronounced …

Does It Pay To Be Different? Relative Csr And Its Impact On Firm Value, David K. Ding, Christo Ferreira, Udomsak Wongchoti

Research Collection Lee Kong Chian School Of Business

Conventional aggregation of Corporate Social Responsibility (CSR) raw scores and its interpreted impact on firm value have provided mixed evidence in the literature. We show that the value impact of CSR activities relies heavily on the industry-specific relative position of the firm. Only firms that distinguish themselves over their peers are associated with increased firm value. This finding is robust and holds for both responsible and irresponsible behaviors. Information concerns and portfolio construction can allude to a possible CSR clientele, suggesting the existence of an optimal CSR level. Our peer-effect results are robust to unobserved heterogeneity along the lines of …

Is Cash-Return Relation Risk Induced?, Chenxi Liu

Research Collection Lee Kong Chian School Of Business

Corporate cash holding is found to be able to predict stock return. Some scholars attribute this to the association of cash with systematic risk with respect to growth options. Others find that the relation is a mispricing effect. In this paper, I try to test whether the relation between cash and return is driven by systematic risk that captured by cash. The empirical results do not support the risk explanation of cash-return relation. First, the risk loading on CASH factor cannot predict returns, which is not consistent with rational frictionless asset pricing models. Second, CASH factor cannot reflect future GDP …

Sociability, Golf Courses, And The Performance Of Institutional Investors, Chi Shen Wei, Lei Zhang

Research Collection Lee Kong Chian School Of Business

We hypothesize that prestigious golf courses attract golfers and visitors from across the country, providing greater opportunities for nearby investors to build social connections. Our evidence suggests that institutional investors located near prestigious golf courses earn significantly better benchmark- and risk-adjusted returns. This reflects the benefits of sociability as our findings are stronger for golf courses with reciprocal guest policies that allow wider participation and increase when major golf championships rotate to the state. Their portfolios reveal hallmarks of active trading – higher concentration, greater selectivity, more frequent turnover – and include more distant stocks. To establish a causal link, …

Political Turnovers, Ownership, And Corporate Investment In China, Jerry X. Cao, Julio Brandon, Tiecheng Leng, Sili Zhou

Research Collection Lee Kong Chian School Of Business

We examine the impact of political influence and ownership on corporate investment by exploiting the unique way provincial leaders are promoted in China. The tournament-style promotion system creates incentives for new governors to exert influence over investment in the early years of their term. We find a divergence in investment rates between state owned enterprises (SOEs) and private firms following political turnover. SOEs increase investment by 6.0% following the turnover while investment rates for private firms decline, suggesting that the political influence exerted over SOEs may crowd out private investment.

Territorial Tax System Reform And The Financial Behavior Of Multinational Firms, Jing Xing, Stephen Bond, Giorgia Maffini

Research Collection School Of Economics

We investigate whether the move from the worldwide tax system to the territorial tax system in Japan in 2009 affects the financial behavior of overseas affiliates of Japanese multinational companies. The reform substantially reduces the tax costs of profit repatriation in the form of dividends for Japanese overseas affiliates. We use this reform as a quasi-natural experiment to investigate whether and how the tax system affects multinationals’ cash holding and financing policies. Findings from our study sheds some light on possible outcomes of similar tax reforms in countries such as the United States. Based on a sample of Japanese overseas …

Why Do Countries Matter So Much In Corporate Social Performance?, Ye Cai, Carrie Pan, Meir Statman

Finance

Why do levels of corporate social performance (CSP) differ so much across countries? We answer this question in an examination of CSP ratings of more than 2,600 companies from 36 countries. We find that firm characteristics explain very little of the variations in CSP ratings. In contrast, variations in country factors such as stages of economic development, culture, and institutions account for a significant proportion of variations in CSP ratings across countries. In particular, we find that CSP ratings are high in countries with high income-per-capita, strong civil liberties and political rights, and cultures oriented toward harmony and autonomy. Furthermore, …

Long Term Optimal Portfolio Selection Problem In Different Models, Bowen Hu

Mathematics Theses and Dissertations

In this project, we mainly focus on how to set up a complete methodology for finding the best investment portfolio which is meeting investor's risk preferences. In order to consider different aspects of their risk preferences, we use a combination of several risk and performance metrics in the ranking function. After applying this ranking system to select most suitable funds from a large pool, we use different models to optimize the portfolio. Past 5-10 years data set has been extracted from Bloomberg. We find out that the asymmetric multivariate t-distribution can dominate the multivariate normal distribution and the symmetric t-distribution …

2016-2017 Operating Budget: Form Bor-10, Salaries Of Non-Classified Employees; Form Bor-11, Salaries Of Classified Employees, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University System 2016-2017 Operating Budget. FOR BOR-10 Salaries of Non-Classified Employees, FORM BOR-11 Salaries of Classified Employees.

An Examination Of The Efficacy Of Christian-Based Socially Responsible Investment Funds, Richard Stultz

Doctoral Dissertations and Projects

This applied doctoral research project examined the efficacy of Christian-based socially responsible investment funds. The researcher performed quantitative analysis of the risk-adjusted yields of the funds as compared to the S&P 500 Index as well as other types of socially responsible investment funds to accomplish this task. The timeframe for the study was 1995 to 2015. An examination of the differences in the performance of funds within the Christian-based category was also completed. Overall, the Christian-based funds underperformed the S&P 500 Index. The difference was statistically significant at the α = .10 level for each time period (i.e., 1-, 3-, …

Asset Pricing With Financial Bubble Risk, Ji Hyung Lee, Peter C. B. Phillips

Research Collection School Of Economics

This paper characterizes systematic risk stemming from the possible occurrence of price bubbles and measures the impact of this additional risk factor on asset prices. Historical stock market behavior and recent empirical experience have led economists and policy makers to acknowledge that price bubbles in financial markets do occur and need to be accounted for in risk analysis. New econometric tools for analyzing mildly explosive behavior (Phillips and Magdalinos, 2007; Phillips et al., 2011) have made it possible to detect the presence of bubbles in data and to date stamp their origination and collapse, providing empirical confirmation of such episodes …

Sentiment And Stock Returns: Anticipating A Major Sporting Event -- Online Appendix, Geoffrey C. Friesen, Brian C. Payne, Jiri Tresl

Department of Finance: Faculty Publications

Table 3 (Appendix): Average Daily Raw Returns around NFL Super Bowl Events for Firms Headquartered in Losing, Winning, Favored, and Non-Favored States and the S&P 500

Table 5 (Appendix): Average Daily Abnormal Returns around NFL Super Bowl Events for Firms Headquartered in Losing, Winning, Favored, and Non-Favored States

Table 6 (Appendix): Average Daily Abnormal Returns around NFL Super Bowl Events for Firms Headquartered in Losing, Winning, Favored, and Non-Favored States Conditioned on whether the Firm is in a Losing or Winning State

Table 7 (Appendix) : Sample Split into Size Quintiles

Table 8 (Appendix) : Characteristics of the Matched Sample …

Can Information Be Locked Up? Informed Trading Ahead Of Macro-News Announcements, Gennaro Bernile, Jianfeng Hu, Yuehua Tang

Research Collection Lee Kong Chian School Of Business

Government agencies routinely allow pre-release access to information to accredited news agencies under embargo agreements. Using high-frequency data, we find evidence consistent with informed trading during embargoes of Federal Open Market Committee (FOMC) scheduled announcements. The E-mini Standard & Poor’s 500 futures’ abnormal order imbalances are in the direction of subsequent policy surprises and contain information that predicts the market reaction to the policy announcements. The estimated informed trades’ profits are arguably large. Notably, we find no evidence of informed trading prior to the start of FOMC news embargoes or during lockups ahead of nonfarm payroll, US Producer Price Index, …

Textual Analysis And Machine Leaning: Crack Unstructured Data In Finance And Accounting, Li Guo, Feng Shi, Jun Tu

Research Collection Lee Kong Chian School Of Business

In finance and accounting, relative to quantitative methods traditionally used, textual analysis becomes popular recently despite of its substantially less precise manner. In an overview of the literature, we describe various methods used in textual analysis, especially machine learning. By comparing their classification performance, we find that neural network outperforms many other machine learning techniques in classifying news category. Moreover, we highlight that there are many challenges left for future development of textual analysis, such as identifying multiple objects within one single document.

Will Analysts Learn From Other Analysts Who Possess Superior Private Information, Hangyuan Shi

Lingnan Theses

Based on a valuable testing venue in China where listed companies are required to disclose corporate site visit records of financial analyst to the public, this study examines whether analysts will learn from visiting analysts' forecasts that contain superior private information. I find that visiting forecasts tend to attract more analysts to issue forecasts in their aftermath than the prior forecasts issued by the same analysts but without conducting corporate site visit (non-visiting forecasts). The following effect is weaker when the visiting forecasts are more informative. In addition, other analysts’ forecasts following the visiting forecasts tend to move closer to …

Tipping The Scales: Is Right-To-Work Legislation On The Path To Prosperity?, Jessica Canada

Mahurin Honors College Capstone Experience/Thesis Projects

With West Virginia having just become the twenty-sixth state to pass right-to-work (RTW) legislation, the U.S. labor relations movement is at a tipping point. Other policy makers are closely watching the recent revival of RTW laws that has occurred over the last five years and are analyzing relevant studies to determine whether passing legislation that would outlaw union shops in their states might be worth a second look.

With this paper I intend to examine one of the dominant arguments against enacting RTW legislation in a state, which is that this legislation results in a greater degree of state-level income …

Two Essays In Corporate Finance, Youngha Ki

LSU New Orleans Theses and Dissertations

For more than a decade, to reduce the agency problem, various ways have been examined on how to align the interest of manager with shareholders. Evidence and empirical findings are conflicting on the agency problem. Recently, deferred compensation as one incentive compensation draws the attention as a means to incentivize CEOs to make them work for the firm. However, it is still not evident if deferred compensation has effect on aligning CEOs with the firm’s goal possibly due to the issue on data. Therefore, the first essay investigates if deferred compensation has the effect on the agency problem and on …

B.E.I.B. And Financial Inclusion In Northwest Cameroon, Kareen Ngendape Atchala

Capstone Collection

The Bee Effect Initiative Bank uses an integrated approach to foster financial inclusion in the North West region of Cameroon. This paper has several services under three main themes; economic wellbeing, capacity building, and insurance. Its theory of change and objectives while seeking to make profit centers on creating social change. The mechanics in the paper seek to evoke sustainable economic change in cross sectors- savings, credit, capacity building, and insurance with ROSCAs as target clientele.

How Does Fintech Drive, Singapore Management University

Perspectives@SMU

Banks could learn from fintech companies’ use of unstructured data to extend financial services to do good and turn a profit

Working With Fintech, Singapore Management University

Perspectives@SMU

The rise of financial technology in China has transformed how businesses operate, as Japan eases into it amidst existing cultural and institutional norms

2016 Q3 Private Capital Access Index Report, Craig R. Everett

Pepperdine Private Capital Access Report

The Pepperdine Private Capital Access Index (PCA) is a quarterly indicator produced by the Graziadio School of Business and Management at Pepperdine University, and with the support of Dun & Bradstreet. The index is designed to measure the demand for, activity, and health of the private capital markets. The purpose of the PCA Index is to gauge the demand of small and medium sized businesses for financing needs, the level of accessibility of private capital, and the transparency and efficiency of private financing markets.