Finance and Financial Management Commons^™

The Lehman Brothers Bankruptcy B: Risk Limits And Stress Tests, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Investment banks are in the business of taking calculated risks. Risk management infrastructure facilitates the safe pursuit of profits and the balancing of associated risks. By 2006, Lehman Brothers was thought to have a very respectable risk management system, and even its regulator, the Securities and Exchange Commission, viewed its risk framework as being fully compliant with regulatory requirements. In its public disclosures, Lehman characterized its risk controls as “meaningful constraints on its risk taking” and evidence of its continued financial stability. Beginning in late 2006, however, Lehman began dismantling its carefully crafted risk management framework as it pursued a …

2019 Private Capital Markets Report, Craig R. Everett

Pepperdine Private Capital Markets Report

The Pepperdine private cost of capital survey was originally launched in 2007 and is the first comprehensive and simultaneous investigation of the major private capital market segments. This year’s survey specifically examined the behavior of senior lenders, asset‐based lenders, mezzanine funds, private equity groups, venture capital firms, angel investors, privately‐held businesses, investment bankers, business brokers, limited partners, and business appraisers. The Pepperdine survey investigated, for each private capital market segment, the important benchmarks that must be met in order to qualify for capital, how much capital is typically accessible, what the required returns are for extending capital in today’s economic …

Essays On The Role Of Systematic And Idiosyncratic Volatility In Pricing Individual Equity Options, Mobina Shafaati

LSU Doctoral Dissertations

It is widely accepted that the value of an option is an increasing function of the underlying volatility. The positive relation between volatility and option price is intuitive only if we keep all other determinants of the option value constant, including the stock price. The notion that an asset price is completely unaffected by the volatility of the asset is virtually unacceptable in asset pricing theory and holds only in a stylized one-factor world in which the volatility change is completely diversifiable. In Chapter 1, I examine the role of the non-zero correlation of the underlying asset return and its …

The Effect Of Dental Therapists On Access To Dental Care, Jacob Caldwell

Research on Capitol Hill

Oral health is an important indicator of overall individual health and general well-being. Unfortunately, there is a lack of dental care availability and access in many parts of the United States. According to the Health Resources and Services Administration, as of December 31, 2018 there were nearly 6,000 Dental Health Professional Shortage Areas (HPSAs) in the US. Around 58 million people live in these shortage areas and it is estimated that over 10,000 practitioners are necessary to meet the needs of these populations.

How Sector Volatility Spills Into Related Markets, Singapore Management University

Perspectives@SMU

Research reveals the linkages that let a meltdown go global

Driving Sustainable And Responsible Investment, Singapore Management University

Perspectives@SMU

Appealing to the moral imperative is futile. Sustainable investment funds should work on target’s self-interest

Dynamic Credit Default Swap Curves In A Network Topology, Xiu Xu, Cathy Yi-Hsuan Chen, Wolfgang Karl Härdle

Sim Kee Boon Institute for Financial Economics

Systemically important banks are connected and their default probabilities have dynamic dependencies. An extraction of default factors from cross-sectional credit default swap (CDS) curves allows us to analyze the shape and the dynamics of default probabilities. In extending the Dynamic Nelson Siegel (DNS) model to an across firm multivariate setting, and employing the generalized variance decomposition of Diebold and Yilmaz [On the network topology of variance decompositions: Measuring the connectedness of financial firms. J. Econom., 2014, 182(1), 119–134], we are able to establish a DNS network topology. Its geometry yields a platform to analyze the interconnectedness of long-, middle- and …

Abuses And Penalties Of A Corporate Tax Inversion, James G.S. Yang, Leonard Lauricella, Frank J. Aquilino

Department of Accounting and Finance Faculty Scholarship and Creative Works

There is a serious problem in international taxation today. Many United States (U.S.) multinational corporations have moved abroad to take advantage of a lower tax rate in a foreign country. As a consequence, the tax base in the U.S. has been seriously eroded. This practice is known as “corporate tax inversion”. This paper discusses the abuses and penalties of this phenomenon. It is rooted in some deficiencies in the U.S. tax law. This paper points out that the U.S. has the highest corporate tax rate in the world. It imposes tax on worldwide income. It permits deferral of tax on …

Financial Market Implications Of Marketing Actions And The Disclosure Of Marketing Information, Sungkyun Moon

Dissertations and Theses Collection (Open Access)

This dissertation contributes to marketing literature by examining the effects of marketing actions and the disclosure of marketing information through the financial market perspective that has high managerial relevance and policy implications. Specifically, the first essay provides the first empirical examination of the effects of the disclosure of advertising spending on investors’ and analysts’ uncertainty. It is responsive to calls by Marketing Science Institute and Marketing Accountability Standard Board to examine the consequences of disclosure of marketing metrics. The second essay examines the effect of advertising spending on firm value and explores firm and market level contingency effects. By doing …

Unintended Consequences: How Suppliers Compensate For Price Concessions And The Role Of Organizational Justice In Buyer-Supplier Relations, Steven Carnovale, John W. Henke, Scott Duhadway, Sengun Yeniyurt

Business Faculty Publications and Presentations

“You get what you pay for” is one of life's lessons that predominates in purchasing decisions individuals make in their personal lives. The results of this study suggest this lesson should also prevail among management when price‐related purchasing decisions in businesses are being made. An evaluation of over 1,700 purchasing instances across seven years of a longitudinal panel data set collected from Tier 1 production suppliers to the six major North American automotive Original Equipment Manufacturers (OEMs), Chrysler, Ford, General Motors, Honda, Nissan, and Toyota, found that suppliers compensate for price concessions and price reduction pressure from the OEM in …

Activist Investors: A Corporate Social Responsibility Perspective On Hedge Fund Activism And The Need For Focus On All Stakeholders, Lucy Marie Ankenbauer

Honors Program: Senior Projects (Public)

Corporate social responsibility (CSR) can result in distinctly different visions when instituted under the enlightened stakeholder theory or the shareholder maximization theory. The critical variation between these two theories is the principal party that businesses consider when instituting strategic decisions. Firms following the enlightened stakeholder theory will base decisions on all the various stakeholders of the company and develop policies which increase long-term firm value. Companies pursuing shareholder value maximization will consider all strategies through the eyes of the stockholders and how these individuals will be affected. Neither theory is more valid than the other, since many factors must be …

Scaled Pca: A New Approach To Dimension Reduction, Dashan Huang, Fuwei Jiang, Guoshi Tong, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

The notion that bond risk premium varies with business cycles is challenged once real time macro data are used. In this paper, we argue that the macro factors extracted by using the standard PCA are not the most relevant for forecasting bond risk premium, because the PCA factors are designed to explain the most variation of macro data instead of the variation of bond risk premium. With the latter objective in mind, we propose a scaled PCA (sPCA) approach, which incorporates the information in bond risk premium in the factor extraction procedure. The real time macro sPCA factors have much …

Establishing An Asia-Pacific Cryptocurrency Hub, Arnat Leemakdej, Chiyachantana N. Chiraphol

Research Collection Lee Kong Chian School Of Business

Asia is leading the way in digital asset markets, but individual countries are taking markedly different paths toward regulation and management in establishing themselves as cryptocurrency hubs, balancing innovation and regulation. Investors should be vigilant about the risks associated with alternative capital-raising methods.

Quarterly Meeting Information Packet, Wku Board Of Regents

Board of Regents Documents

Quarterly meeting information packet:

• Sabbatical Leaves
• Emeritus Appointment
• Property Transfer
• Tyson Helton Contract
• Todd Stewart Contract Addendum
• Auditor's Reports & Financial Statements for WKYU-TV & WKYU-FM Radio
• 2019-20 Tuition & Mandatory Student Fees Schedule
• Personnel Actions
• Faculty One Time Payments
• Staff One Time Payments
• 2018-19 Operating Budget Revisions
• 2018-19 Second Quarter Statement of Revenues & Expenditures

Picking Flowers In An Ico Garden, Fam Guo Teng, Paul R. Griffin, Andrew Koh

Research Collection School Of Computing and Information Systems

The rise of Initial Coin Offerings (ICO) in recent times and their potential for investment opportunities have investors spending a lot of time researching ICOs or having to follow the crowd. This paper aims to explore four broad factors of ICOs: identity, credibility, investor sentiment, and price movement to develop a framework that is useful in determining ICO quality. Research is shown using data sources including public forums, chat groups, web sites, white papers as well as smart contract details. Finally, a system, based on the framework, is proposed that can be used to detect and regulate ICO activities and …

Incorporating Active Adjustment Into A Financing Based Model Of Capital Structure, Neal Maroney, Wei Wang, M. Kabir Hassan

Business Faculty Publications

The conventional partial adjustment model, which focuses on leverage evolution, has difficulty identifying deliberate capital structure adjustments as it confounds financing decisions with the mechanical autocorrelation of leverage. We propose and estimate a financing-based partial adjustment model that separates the effects of financing decisions on leverage evolution from mechanical evolution. The speed of adjustment (SOA) is firm specific and stochastic, and active targeting of capital structure has a multiplier effect that depends on the size of financial deficit. Overall, we find expected SOA from active rebalancing
(30%) more than doubles what is expected from mechanical mean reversion alone (13%).

Financial Repression In China: Short-Term Growth But Long-Term Crisis, Guangdong Xu, Michael Faure

Loyola of Los Angeles International and Comparative Law Review

No abstract provided.

The Evolution Of Entrepreneurial Finance: A New Typology, J. Brad Bernthal

BYU Law Review

There has been an explosion in new types of startup finance instruments. Whereas twenty years ago preferred stock dominated the field, startup companies and investors now use at least eight different instruments—six of which have only become widely used in the last decade. Legal scholars have yet to reflect upon the proliferation of instrument types in the aggregate. Notably missing is a way to organize instruments into a common framework that highlights their similarities and differences. This Article makes four contributions. First, it catalogues the variety of startup investment forms. I describe novel instruments, such as revenue-based financing, which remain …

Count On Your Subordinates: Young Managers And Innovation Efficiency, Lei Gao, Christine X. Jiang, Mohamed Mekhaimer

Business Faculty/Staff Publications

We investigate the relationship between executives’ horizons and firms’ innovation efficiency. Motivated by Acharya, Myers, and Rajan’s (2011, JF) theory, we devise a measure of internal governance based on the difference in expected horizons between a CEO and her subordinates. Consistent with our conjecture, we find robust evidence that subordinate managers with longer horizon compared to the CEO can improve firm’s innovation efficiency. Internal governance has a stronger effect on innovation efficiency for firms with elder, generalist CEOs and when the number of subordinates on the board is higher. However, while the presence of powerful CEOs attenuates the effect, overconfident …

Committee Meetings Information Packet, Wku Board Of Regents

Board of Regents Documents

Information Packet:

• Auditor's Reports & Financial Statements for WKYU-TV & WKYU-FM Radio
• 2019-20 Tuition & Mandatory Student Fees Schedule
• Personnel Actions
• Faculty One Time Payments
• Staff One Time Payments
• 2018-19 Operating Budget Revisions
• 2018-19 Second Quarter Statement of Revenues & Expenditures
• Quarterly Internal Audit Report
• Sabbatical Leaves

Risk Pooling, Supply Chain Hierarchy, And Analysts' Forecasts, Nan Hu, Jian-Yu Ke, Ling Liu, Yue Zhang

Research Collection School Of Computing and Information Systems

We investigate whether a firm's risk pooling affects its analysts' forecasts, specifically in terms of forecast accuracy and their use of public vs. private information, and how risk pooling interacts with a firm's position in the supply chain to affect analysts' forecasts. We use a social network analysis method to operationalize risk pooling and supply chain hierarchy, and find that risk pooling significantly reduces analysts' forecast errors and increases (decreases) their use of public (private) information. We also find that the positive (negative) relationships between risk pooling and analyst forecast accuracy and analysts' use of public (private) information are more …

Improving Vix Futures Forecasts Using Machine Learning Methods, James Hosker, Slobodan Djurdjevic, Hieu Nguyen, Robert Slater

SMU Data Science Review

The problem of forecasting market volatility is a difficult task for most fund managers. Volatility forecasts are used for risk management, alpha (risk) trading, and the reduction of trading friction. Improving the forecasts of future market volatility assists fund managers in adding or reducing risk in their portfolios as well as in increasing hedges to protect their portfolios in anticipation of a market sell-off event. Our analysis compares three existing financial models that forecast future market volatility using the Chicago Board Options Exchange Volatility Index (VIX) to six machine/deep learning supervised regression methods. This analysis determines which models provide best …

The Core, Periphery, And Beyond: Stock Market Comovements Among Eu And Non-Eu Countries, Michael A. Goldstein, Joseph Mccarthy, Alexei G. Orlov

Finance Department Faculty Journal Articles

We thank conference participants at the 2016 Financial Management Association and our discussant Fernando Moreira, and two anonymous referees for immensely helpful comments. We also thank Andrew Patton and James P. LeSage for sharing their MATLAB codes for computing quantile dependence. The authors of this paper are responsible for any errors or omissions. The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. The views expressed herein are those of the authors and do not necessarily reflect the views of the Commission or the authors' colleagues on …

Governance Structure And Performance Of Private Family Firms, Tarun Mukherjee, Vighneshwara Swami, Wei Wang

Business Faculty Publications

A debate exists on the issue of whether a governance system is value additive or even necessary for a privately-held firm. One side of the debate suggests that, since agency problems do not exist in a small private firm, it does not need a costly governance system. The other side argues that a private firm indeed faces agency costs in the form of altruism and, therefore, could extract net gains from a governance system. In this paper, we empirically investigate whether a good governance system crates or destroys value of private family firms. We first demonstrate that a multifamily firm …

Fraud In Small Businesses: A Preliminary Study, Esther Bunn, Jack Ethridge, Kaili Crow

Faculty Publications

This study investigates the attitudes small business owners and managers have towards fraud and internal controls. Commonly small businesses consist of long-term friends and relatives and tend to embody a culture of family, love, and trust. Four factors were identified that lend themselves to a lack of internal controls and a breeding ground for fraud. A survey was distributed to small business owners and management. The responses were analyzed and compared to the data in the 2016 American Certified Fraud Examiners Report to the Nations. Of the four expectations studied, only the anticipated results of Expectation 1 were confirmed.

Women's Entrepreneurship Report 2018/2019, Amanda B. Elam, Candida G. Brush, Patricia G. Greene, Benjamin Baumer, Monica Dean, René Heavlow, Babson College, Smith College, Global Entrepreneurship Research Association (Gera)

Financial Education and Entrepreneurship Research

This year marks the 20th anniversary of Global Entrepreneurship Monitor (GEM) conducting entrepreneurship research in economies around the world through a system of rigorous data collection, extensive analysis, and widespread dissemination of results. Studies on women’s participation in entrepreneurial behaviors have long been a part of this project, with reports developed approximately every two years. The 2018/2019 report provides analysis from 59 economies, aggregating data from two GEM data collection cycles: 10 economies reporting in 2017 and 49 reporting in 2018. For the purpose of analysis and to allow for comparisons, these countries are grouped into three levels of national …

Estimation Of Multivariate Asset Models With Jumps, Angela Loregian, Laura Ballotta, Gianluca Gianluca Fusai, Marcos Fabricio Perez

Business Faculty Publications

We propose a consistent and computationally efficient two-step methodology for the estimation of multidimensional non-Gaussian asset models built using Levy processes. The proposed framework allows for dependence between assets and different tail behaviors and jump structures for each asset. Our procedure can be applied to portfolios with a large number of assets as it is immune to estimation dimensionality problems. Simulations show good finite sample properties and significant efficiency gains. This method is especially relevant for risk management purposes such as, for example, the computation of portfolio Value at Risk and intra-horizon Value at Risk, as we show in detail …

Ua25/1 Finance & Administration Accounts & Fiscal Services, Wku Archives

WKU Archives Collection Inventories

Financial records of historic value.

Bachelor Of Science In Business Administration In Finance_2019-2020, Nova Southeastern University

Huizenga Undergraduate Course Catalogs

No abstract provided.

Ua25/2 Memoranda, Wku Human Resources

WKU Administration Documents

Memoranda issued by WKU Human Resources to faculty & staff via email.

• Human Resources' Staffing & Services
• General Update - Compensation & Performance Management/Development Projects
• Pension Reform Update
• 2019 Special Legislative Session Update