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2019

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Articles 421 - 450 of 452

Full-Text Articles in Finance and Financial Management

Access To Capital Challenges And Opportunities, Rosalinda V. Maury, Brice M. Stone, Kicia Sears, Andrew M. Sander Jan 2019

Access To Capital Challenges And Opportunities, Rosalinda V. Maury, Brice M. Stone, Kicia Sears, Andrew M. Sander

Institute for Veterans and Military Families

This paper describes how veterans report financing their businesses, their potential difficulties accessing capital, and the potential reasons they may encounter credit and loan denials. We conclude with a discussion on the possible implications and put forward a preliminary argument for further study that would explore some of the more nuanced aspects of access to capital barriers. Helpful for veterans seeking information about financing their business.

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Financial Sector In Singapore, Hwee Kwan Chow, Sai Fan Pei Jan 2019

Financial Sector In Singapore, Hwee Kwan Chow, Sai Fan Pei

Research Collection School Of Economics

This chapter reviews the financial development strategies adopted by the Singapore government as it navigates internal and external changes to build a vibrant center of finance in the Asia Pacific region. Sections 2 and 3 provide an overview of the structure of the financial system and the financial governance framework respectively. This is followed by a discussion, in Section 4, on the outward looking development strategy that underpinned the successful development of Singapore’s financial sector. Section 5 highlights the reforms undertaken in the aftermath of the Asian financial crisis that led to the building of a well-diversified and thriving international …

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Organizational Decision-Making Through Employee Diversity, Kehinde Olayinka Taiwo Jan 2019

Organizational Decision-Making Through Employee Diversity, Kehinde Olayinka Taiwo

Walden Dissertations and Doctoral Studies

The global nature of today's business environment, coupled with technological advances, compels managers to work with an increasingly diverse workforce worldwide. The purpose of this multiple-case study was to explore how bank managers used employee diversity effectively in the organizational decision-making process. Participants were 10 frontline management staff (middle and executive managers) with the required employee engagement skills involved in the decision-making process of a Nigerian bank. The conceptual framework for this study was rational choice theory, also called rational action theory or choice theory. Participants responded to 8 open-ended semistructured interview questions. The data collection process included validating and …

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Risk Management Strategies For Sustainable Rental Real Estate Profitability, Christina Fusch Jan 2019

Risk Management Strategies For Sustainable Rental Real Estate Profitability, Christina Fusch

Walden Dissertations and Doctoral Studies

Some rental property owners lack risk management strategies that enable them to budget for sustainable profitability. This study provides rental property owners with risk management strategies for sustainable profitability to maintain business stability during market volatility and create stable, well-maintained housing for tenants. A mini ethnographic case study was conducted to determine the key risk management budgeting strategies rental property owners in the greater Seattle area have used to achieve sustainable profitability for at least 10 years. Enterprise risk management was applied to assess the role risk played in small rental property businesses and budgeting for sustainable profitability. Participant observation, …

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Regression Tree Construction For Reinforcement Learning Problems With A General Action Space, Anthony S. Bush Jr Jan 2019

Regression Tree Construction For Reinforcement Learning Problems With A General Action Space, Anthony S. Bush Jr

College of Graduate Studies: Theses & Dissertations

Part of the implementation of Reinforcement Learning is constructing a regression of values against states and actions and using that regression model to optimize over actions for a given state. One such common regression technique is that of a decision tree; or in the case of continuous input, a regression tree. In such a case, we fix the states and optimize over actions; however, standard regression trees do not easily optimize over a subset of the input variables\cite{Card1993}. The technique we propose in this thesis is a hybrid of regression trees and kernel regression. First, a regression tree splits over …

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Rational Choice Theory For Financial Strategy In Rural Michigan Community Colleges, Nicholas John Brege Jan 2019

Rational Choice Theory For Financial Strategy In Rural Michigan Community Colleges, Nicholas John Brege

Walden Dissertations and Doctoral Studies

Since 2011, drastic declines in tuition revenue for many rural community colleges have hindered institutional budgets and have been the primary driver for the financial strategy decisions made by college leaders. Recent declines in revenue for rural community colleges have created a constrained fiscal environment causing college leaders to increase focus on internal operations. The aim of this research was to expand the understanding of how management decisions influence tuition revenue when demand fluctuates. Data from multiple archival sources including several national and state statistical databases were used. This study used a multiple regression analysis to investigate the relationships between …

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Strategies To Reduce Risks Associated With Corporate Social Responsibility Lending, Victor Johnson Jan 2019

Strategies To Reduce Risks Associated With Corporate Social Responsibility Lending, Victor Johnson

Walden Dissertations and Doctoral Studies

Bank managers have transacted six trillion dollars of new loans in low and moderate income (LMI) communities because of the Community Reinvestment Act (CRA) mandate. CRA originated mortgages accounted for over 42% of the defaulted loans because of limited risk strategies. Based on the Aguilera conceptual framework, the purpose of this exploratory single case study was to explore the strategies CSR bank managers used to reduce the risks associated with lending in LMI communities. Data were collected and analyzed from semistructured interviews of five bank managers working in one financial organization located within the U.S. Northeast. Data also included the …

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Strategies Small Business Owners Use To Remain Sustainable, Desire Luamba Jan 2019

Strategies Small Business Owners Use To Remain Sustainable, Desire Luamba

Walden Dissertations and Doctoral Studies

In the United States, 41% of small retail businesses fail to succeed for longer than 5 years. The purpose of this multiple case study was to explore strategies small retail business owners used to remain sustainable for more than 5 years. The conceptual framework that grounded this study was Schumpeter's innovation theory. The sample size of this research included 4 successful retail business owners located in the southeastern region of the United States who have successfully started and managed their business activities for more than 5 years. Data were collected using semistructured face-to-face interviews with successful owners of small retail …

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Transfer Pricing Legislation: Effect On Multinational Enterprises In The United States, Ravi Taklalsingh Jan 2019

Transfer Pricing Legislation: Effect On Multinational Enterprises In The United States, Ravi Taklalsingh

Walden Dissertations and Doctoral Studies

Multinational enterprises (MNEs) engage in tax-planning strategies between their related parties that affect their profit and consequently their tax liability. Transfer pricing (TP) legislation addresses these tax planning strategies of MNEs resulting in increased tax revenues. Despite the updated 2006 TP legislation, shifting of profit and taxes is still occurring by MNEs; therefore, the implications of this legislation need to be examined. The purpose of this study was to compare the reporting of profit, before and after change in legislation, as well as to examine the cost of services mediation of the relationship between the status of the legislation and …

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An Analysis Of Momentum Strategy’S Failure In Stock Exchange Of Thailand, Intha Thithapand Jan 2019

An Analysis Of Momentum Strategy’S Failure In Stock Exchange Of Thailand, Intha Thithapand

Chulalongkorn University Theses and Dissertations (Chula ETD)

This study examines the negative return characteristic of momentum strategy, also known as momentum crashes, in Stock Exchange of Thailand from January 2001 to December 2018. This study aims to answer one main question. Do momentum crashes exist in Stock Exchange of Thailand? The result show that momentum crashes do exist in Stock Exchange of Thailand, where momentum portfolio perform poorly during panic state, defined by period that market rebound from its decline with high volatility. This poor performance is mainly driven by the option-like payoff characteristic of momentum portfolio, where the portfolio behave itself as a short call option, …

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The Effect Of Control-Ownership Disparity On Earnings Management: Evidence From Korean Large Business Groups, Jaehyeok Kim Jan 2019

The Effect Of Control-Ownership Disparity On Earnings Management: Evidence From Korean Large Business Groups, Jaehyeok Kim

Chulalongkorn University Theses and Dissertations (Chula ETD)

This study examines the difference in the use of earnings management at family-controlled firms belonging to Korean large business groups (chaebol) versus non-chaebol firms belonging to Korean large business groups from 2002 to 2016. Firms belonging to large business groups are subject to similar regulations by authorities. This study also tests whether a divergence between voting rights and cash flow rights affects earnings management by controlling shareholders. This study examines both accrual-based earnings management (AEM) and real-activities earnings management (REM), using two measures of accrual-based earnings management and three measures of real-activities earnings management. This study finds that chaebol firms …

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The Effect Of U.S. Presidential Elections On Stock Market Liquidity In Emerging Economies, Phatarakorn Thongsathit Jan 2019

The Effect Of U.S. Presidential Elections On Stock Market Liquidity In Emerging Economies, Phatarakorn Thongsathit

Chulalongkorn University Theses and Dissertations (Chula ETD)

This paper examines the effect of uncertainties that arises from U.S. presidential elections on emerging stock market liquidity over five period of elections from 2000 to 2016. The U.S. presidential elections created two uncertainties, which are political uncertainty and election uncertainty, before the election day. It is argued that the political uncertainty affects the emerging stock market liquidity through the change in future macroeconomic fundamentals while the election uncertainty is an uncertainty about the eventual winner of the election that affects the emerging stock market liquidity through market sentiment. Using monthly Iowa Electronic Markets data, this paper finds the evidence …

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A Neural Network-Based Method For Solving A Dynamic Investment And Consumption Problem With Transaction Costs And Stochastic Volatility, Kittipong Noonoi Jan 2019

A Neural Network-Based Method For Solving A Dynamic Investment And Consumption Problem With Transaction Costs And Stochastic Volatility, Kittipong Noonoi

Chulalongkorn University Theses and Dissertations (Chula ETD)

Optimal investment and consumption problem with proportional transaction costs known as Davis \& Norman problem is a challenging portfolio free-boundary problem to solve. According to the HJB equation, see Davis and Norman (1990), there are three optimal regions i.e. no-trade region, buy region, and sell region in which different actions are prescribed. However, the two boundaries separating the three regions are unknown and it is crucial to discover them in order to obtain the optimal policy. Nonetheless, under a special class of model in which the excess return of stock is assumed to be positively linear in variance reflecting the …

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A Reinforcement Learning Model For Lending Problems With Limited Budget And Insufficient Data, Radaporn Autravisittikul Jan 2019

A Reinforcement Learning Model For Lending Problems With Limited Budget And Insufficient Data, Radaporn Autravisittikul

Chulalongkorn University Theses and Dissertations (Chula ETD)

Traditional lending policy requires sufficient data for making lending decisions, therefore, some small companies could not access to the fund. In this study, we propose a decision making model that can decide whether to accept or reject a sequence of unfamiliar loan applications while having a limited budget. Our model does not have any knowledge about the incoming loans, therefore, it can predict the default probability with low accuracy at the beginning. The model can learn by observing the outcomes of the accepted loans. The model's budget increases every time the model accepts a fully paid loan and decreases when …

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การควบคุมราคาหุ้นก่อนถึงวันหมดอายุหุ้นใบสำคัญแสดงสิทธิ; หลักฐานจากตลาดหลักทรัพย์ไทย, วัฒนพาศน์ รุ่งจรูญ Jan 2019

การควบคุมราคาหุ้นก่อนถึงวันหมดอายุหุ้นใบสำคัญแสดงสิทธิ; หลักฐานจากตลาดหลักทรัพย์ไทย, วัฒนพาศน์ รุ่งจรูญ

Chulalongkorn University Theses and Dissertations (Chula ETD)

การแทรกแซงของ บริษัท ในตลาดหุ้นเกิดขึ้นทั่วโลกผ่านการเปิดเผยข้อมูลการดำเนินงานด้านบัญชีและการเงินที่ใช้ประโยชน์จากความไร้ประสิทธิภาพของตลาดที่มีอยู่ มันเกิดจากความไม่สมดุลของข้อมูลที่ยังคงมีอยู่ระหว่างฝ่ายต่าง ๆ มักจะทำให้เกิดการสูญเสียที่หลีกเลี่ยงไม่ได้กับนักลงทุน การวิจัยนี้ตรวจสอบผ่านเครื่องมือทางการเงินที่ช่วยให้เกิดความกระจ่างว่าการจัดการราคาของ บริษัท ดำเนินการอย่างไรในตลาดหุ้นไทยโดยเฉพาะก่อนวันใช้สิทธิ การผันผวนของราคาหุ้นก่อนวันหมดอายุของใบสำคัญแสดงสิทธิจะถูกตรวจสอบเพื่อกำหนดลักษณะการปรับราคาและระดับความอ่อนไหว ผลแสดงให้เห็นว่าผลตอบแทนที่ผิดปกติเชิงลบเกิดขึ้นในช่วงเวลา [42, 84] วันก่อนที่ใบสำคัญแสดงสิทธิ ITM จะหมดอายุ ตัวแปรขององค์กรพิสูจน์แล้วว่ามีผลกระทบต่อระดับความอ่อนไหวของการเคลื่อนไหวในราคาหุ้นซึ่งเป็นผลมาจาก บริษัท มีอัตราส่วน D/E สูง CGR และ MCAP แสดงให้เห็นถึงความต้านทานต่อการเคลื่อนไหวของราคาหุ้นติดลบ การปรับราคามีความเป็นไปได้ที่จะได้รับผลกำไรจากการเคลื่อนไหวของราคาหุ้น อย่างไรก็ตามทางงานวิจัยจำเป็นต้องมีข้อมูลเพิ่มเติมเกี่ยวกับวิธีการดำเนินการจัดการเพื่อยืนยันทฤษฎีนี้ ผู้ลงทุนควรตระหนักถึงความเสี่ยงและหลีกเลี่ยงการซื้อขายในทางตรงกันข้ามของทิศทางของการเคลื่อนไหวในราคาหุ้นในช่วงเวลาที่ใบสำคัญแสดงสิทธิใกล้วันหมดอายุ

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Asset Allocation In Bankruptcy, Shai Bernstein, Emanuele Colonnelli, Benjamin Iverson Jan 2019

Asset Allocation In Bankruptcy, Shai Bernstein, Emanuele Colonnelli, Benjamin Iverson

Faculty Publications

This paper investigates the consequences of liquidation and reorganization on the allocation and subsequent utilization of assets in bankruptcy. Using the random assignment of judges to bankruptcy cases as a natural experiment that forces some firms into liquidation, we find that the long-run utilization of assets of liquidated firms is lower relative to assets of reorganized firms. These effects are concentrated in thin markets with few potential users and in areas with low access to finance. These findings suggest that when search frictions are large, liquidation can lead to inefficient allocation of assets in bankruptcy.

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The Liquidity Cost Of Private Equity Investments: Evidence From Secondary Market Transactions, Taylor Nadauld, Berk A. Sensoy, Keith Vorkink, Michael S. Weisbach Jan 2019

The Liquidity Cost Of Private Equity Investments: Evidence From Secondary Market Transactions, Taylor Nadauld, Berk A. Sensoy, Keith Vorkink, Michael S. Weisbach

Faculty Publications

This paper uses proprietary data from a leading intermediary to explain the magnitude and determinants of transaction costs in the secondary market for private equity stakes. Most transactions occur at a discount to net asset value. Buyers average an annualized public market equivalent of 1.023 compared with 0.976 for sellers, implying that buyers outper- form sellers by a market-adjusted 5 percentage points annually. Both the cross-sectional pattern of transaction costs and the identity of sellers and buyers suggest that the market is one in which relatively flexible buyers earn returns by supplying liquidity to investors wishing to exit.

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Who Finances Durable Goods And Why It Matters: Captive Finance And The Coase Conjecture, Justin Murfin, Ryan Pratt Jan 2019

Who Finances Durable Goods And Why It Matters: Captive Finance And The Coase Conjecture, Justin Murfin, Ryan Pratt

Faculty Publications

We propose that, by financing their own product sales through captive finance subsidiaries, durable goods manufacturers commit to higher resale values for their products in future periods. Using data on captive financing by the manufacturers of heavy equipment, we find that captive-backed models have lower price depreciation. The evidence is consistent with captive finance helping manufacturers commit to ex-post actions that support used machine prices. This, in turn, conveys higher pledgeability for captive-backed products, even for individual machines financed by banks. Although motivated as a rent-seeking device, captive financing generates positive spillovers by relaxing credit constraints.

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Systematic Regulation Of Systemic Risk, Steven L. Schwarcz Jan 2019

Systematic Regulation Of Systemic Risk, Steven L. Schwarcz

Faculty Scholarship

A decade after the financial crisis, regulators worry that the regulation enacted to help stabilize the financial system may be insufficient to prevent another crisis. Examining that regulation with the benefit of hindsight, this Article finds that much has been accomplished but much remains to be done. Most of the existing regulation is ad hoc, providing “tools” rather than a coherent framework. It also is unduly entity-based, largely ignoring markets and other critical elements of the financial system. Furthermore, some of that entity-based regulation is punitive and misguided, responding to the human intuition to assign blame for harm. Financial stability …

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Veterans Affairs Employees’ Perceptions Of Financial Incentives, Organizational Justice, Satisfaction, And Performance, Kingsley Chigbo Ihekwoaba Jan 2019

Veterans Affairs Employees’ Perceptions Of Financial Incentives, Organizational Justice, Satisfaction, And Performance, Kingsley Chigbo Ihekwoaba

Walden Dissertations and Doctoral Studies

Veterans Affairs (VA) inconsistently distributes financial incentives, which might affect how VA employees perceived organizational justice, affecting employees’ job satisfaction and performance. The purpose of this qualitative transcendental phenomenological study was to explore the lived experiences of VA employees that informed their perceptions of their workplaces’ levels of organizational justice, their job satisfaction, and their performances due to inconsistent distribution of financial incentives by gathering data through interviews with 13 VA employees from the Southeastern United States. The research question concentrated on the lived experiences of VA employees with respect to the inconsistent distribution of financial incentives, and how these …

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Strategies For Increasing Employee Morale And Mitigating Turnover In The Banking Industry, Deniqua Arshay Ladson Jan 2019

Strategies For Increasing Employee Morale And Mitigating Turnover In The Banking Industry, Deniqua Arshay Ladson

Walden Dissertations and Doctoral Studies

Bank leaders who fail to implement effective leadership strategies experience low employee morale and high employee turnover. The estimated failure rate of bank industry leadership to attain some organizational targets such as desired levels of employee morale, employee retention, and profitability is as high as 60%. The purpose of this single case study was to explore strategies bank leaders implemented to improve employee morale and mitigate employee turnover. The population for this study included 4 bank leaders in the United States who successfully applied effective leadership to improve morale and mitigate employee turnover for more than 5 years. Data were …

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Small Business Merger And Acquisition Strategies For Raising Capital In Emerging Economies, Bennet Kpentey Jan 2019

Small Business Merger And Acquisition Strategies For Raising Capital In Emerging Economies, Bennet Kpentey

Walden Dissertations and Doctoral Studies

About 70% of mergers and acquisitions (M&As) involving small and medium-sized enterprises (SMEs) in emerging economies fail because the strategies employed do not integrate all the critical success elements, leaving SMEs without the needed capital to take advantage of strategic and market opportunities. The purpose of this multiple case study was to explore the M&A strategies SME owners in Ghana employed to raise capital. Seth's value creation theory was the conceptual framework adopted for this study. The population consisted of 5 SME owners in Ghana who had successfully raised financial resources through inbound M&As within the past 10 years. Data …

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Strategies To Sustain A Real Estate Small Business In Postnatural-Disaster Area, Vianka Miranda Jan 2019

Strategies To Sustain A Real Estate Small Business In Postnatural-Disaster Area, Vianka Miranda

Walden Dissertations and Doctoral Studies

Many small real estate business leaders lack effective strategies to resume and sustain operations in a postnatural-disaster environment. This multiple case study investigated strategies that 3 small real estate business leaders in southeastern Louisiana used to resume and sustain operations in the aftermath of a natural disaster. The chaos theory and stakeholder theory were the conceptual frameworks for this study. Data were collected from semistructured interviews, and reviews of business continuity plan documents and member checking. The themes that emerged from data analysis were leaders' strategies relating to business planning and innovation, stakeholder engagement, operations management, and disaster responsiveness. Implications …

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Heterogeneity In Reactions To Monetary Policy Of Thai Stock Returns, Siraphop Swingthong Jan 2019

Heterogeneity In Reactions To Monetary Policy Of Thai Stock Returns, Siraphop Swingthong

Chulalongkorn University Theses and Dissertations (Chula ETD)

This paper investigates the effect of Thailand and U.S. monetary policy shock on stock market in Thailand for three level; market, industries and firm level from June 2000 to December 2018. In addition, this paper studies which firm characteristic cause the heterogeneity effect of stock and industry return on monetary policy innovation. Structural Vector Error Correction model follows Kim & Roubini (1999) and Ivrendi & Gulogu (2010) is applied to identify monetary policy shock.This paper finds that SET index return is statistically decrease 1.12 percentage point, on average in reaction to one standard deviation of unexpected increase in Thailand monetary …

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Volatility Spillovers Among Oil And Stock Markets In The Us And Saudi Arabia, Marinela Adriana Finta, Bart Frijns, Alireza Tourani-Rad Jan 2019

Volatility Spillovers Among Oil And Stock Markets In The Us And Saudi Arabia, Marinela Adriana Finta, Bart Frijns, Alireza Tourani-Rad

Research Collection Lee Kong Chian School Of Business

In this article, we use high frequency data and an identification via changes in volatility approach to assess the volatility spillovers among oil and the US and Saudi Arabian stock markets. We document the existence of asymmetry in contemporaneous spillover effects. Particularly, during the times when oil’s trading hours overlap with the US and Saudi Arabian stock markets, the volatility spillover from oil to the stock markets is higher than the other way around. We highlight the importance of taking into consideration the information present during continuous trading hours of oil, especially during simultaneous trading hours with the stock markets. …

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Strategic Alliances Between Banks And Fintechs For Digital Innovation: Motives To Collaborate And Types Of Interaction, Milan Frederik Klus, Todor Stefan Lohwasser, Friedrich Holotiuk, Jürgen Moormann Jan 2019

Strategic Alliances Between Banks And Fintechs For Digital Innovation: Motives To Collaborate And Types Of Interaction, Milan Frederik Klus, Todor Stefan Lohwasser, Friedrich Holotiuk, Jürgen Moormann

The Journal of Entrepreneurial Finance

In times of digitalization, established firms operating in the financial services sector increasingly form alliances with start-up companies to satisfy the customers´ demand for rapid innovation and cope with the growing dynamics of markets. Technology-enabled innovation challenges traditional business models of incumbent institutions (e.g., banks) and requires them to adapt swiftly to the needs of the digital age. However, young firms providing technological solutions for the financial services industry (fintechs) also face difficulties, such as meeting regulatory requirements and winning the trust of potential customers. To compensate for these shortcomings and to exploit synergies, banks and fintechs are increasingly pooling …

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Start-Up Financing In The Digital Age – A Systematic Review And Comparison Of New Forms Of Financing, Maximilian Klein, Florian Neitzert, Thomas Hartmann-Wendels, Sascha Kraus Jan 2019

Start-Up Financing In The Digital Age – A Systematic Review And Comparison Of New Forms Of Financing, Maximilian Klein, Florian Neitzert, Thomas Hartmann-Wendels, Sascha Kraus

The Journal of Entrepreneurial Finance

Start-ups are seen as the leading force in dynamically growing economies. Limited financing opportunities often prevent entrepreneurs from realizing their innovative business ideas or taking growth opportunities. However, in the context of the technological revolution, a fundamental change in the entrepreneurial finance landscape is observed. Innovative, digital financial instruments such as Business Angel Networks, Crowdfunding, or Initial Coin Offerings provide young companies with attractive financing opportunities. Although a large number of studies focus on start-up financing in the digital age, the literature is still fragmented. By providing a systemic literature review of 85 high-quality peer-reviewed journal articles published between 1990 …

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Trading Regularity And Fund Performance, Jeffrey Busse, Lin Tong, Qing Tong, Zhe Zhang Jan 2019

Trading Regularity And Fund Performance, Jeffrey Busse, Lin Tong, Qing Tong, Zhe Zhang

Research Collection Lee Kong Chian School Of Business

We construct a new measure of trading regularity, capturing the extent to which investors trade on a regular basis. Institutional investors that regularly trade outperform those that trade less regularly. The performance of funds that regularly trade persists for at least a year. Among those who trade most regularly, larger funds perform relatively worse, because they incur higher transaction costs associated with their larger trades. Institutions that regularly trade generate superior performance, in part, by behaving as contrarians and by trading more aggressively on information. By contrast, we find no relation between trading regularity and performance among index funds.

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Intraday Information From S&P 500 Index Futures Options, Kian Guan Lim, Chen Ying, Kian Leong Nelson Yap Jan 2019

Intraday Information From S&P 500 Index Futures Options, Kian Guan Lim, Chen Ying, Kian Leong Nelson Yap

Research Collection Lee Kong Chian School Of Business

In this paper we employ intraday transaction prices of liquid E-mini S&P 500 index futuresoptions to form 10-minutes ahead risk-neutral skewness forecasts and show profitable optionstrading strategy net of transaction costs. We do not find profitable trading based on 10-minutesahead risk-neutral volatility and only very marginal cases of profitable trading using kurtosisforecasts. The skewness profitability anomaly may be an indication of informational marketinefficiency in intraday S&P 500 futures options markets, which is contrary to findings usinglonger-span daily and weekly moments. Our results lend credence to the persistence of intradaytrading activities in the markets.

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Overseas Listing Location And Cost Of Capital: Evidence From Chinese Firms Listed In Hong Kong, Singapore, And The United States, Warrington College Of Business, Frank Weikai Li, Central University Of Finance And Economics Jan 2019

Overseas Listing Location And Cost Of Capital: Evidence From Chinese Firms Listed In Hong Kong, Singapore, And The United States, Warrington College Of Business, Frank Weikai Li, Central University Of Finance And Economics

Research Collection Lee Kong Chian School Of Business

As at the end of 2012, more than 600 nonstate-owned Chinese firms were listed in overseas stock markets. We find that Chinese firms listed in the US have the lowest cost of capital when compared to those listed in Hong Kong and Singapore, and these results hold when controlling for firm characteristics and the endogeneity of listing locations. Cross-sectional tests indicate that listing in the US is more beneficial to those firms which face higher information asymmetry and agency costs. Overall, our evidence supports the view that the institutional environment has a first-order impact on a firm’s cost of capital.

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