Finance and Financial Management Commons^™

China's Anti‐Corruption Campaign And Financial Reporting Quality, Ole-Kristian Hope, Heng Yue, Qinlin Zhong

Research Collection School Of Accountancy

We examine the impact of China’s anti-corruption campaign on firm-level financial reporting quality (FRQ). As an important component of the anti-corruption campaign, in October 2013, “Rule 18” was issued to prohibit party and government officials from serving as directors for publicly listed firms. The regulation led to a large number of official directors resigning from their roles as directors involuntarily. As such, Rule 18 has effectively weakened, if not fullydiscontinued, the political connections of the firms that previously hired officials as directors. Our empirical analyses employ a difference-in-differences research design with firm fixed effects and PSM to examine the pre- …

Stochastic Capacity Management In The Presence Of Production Resource Disruption, Boya Yang

Dissertations and Theses Collection (Open Access)

This dissertation studies the capacity investment decision of a manufacturing firm facing demand uncertainty in the presence of shortage possibility in production resources, as often ignored in the literature. These production resources can be physical resources (component / raw material) or financial resources (working capital / budget). The shortage in these resources can be caused by a variety of supply chain disruptions; examples include global disruptions like COVID-19 and financial crisis in 2008 and local disruptions like shortage of components/workforce. The dissertation analyses two important issues related to capacity management: (i) the effect of production resource disruption on the capacity …

Fomc Playbook: The Only New Game In Town?, Thomas Lam

Sim Kee Boon Institute for Financial Economics

In light of the Covid-19 pandemic, the Federal Open Market Committee (FOMC), while taking more aggressive actions, seems to have stuck more or less to the standard playbook of responding to “unusual and exigent circumstances”. This essentially calls for slashing conventional policy rates to their effective lower bound, accompanied by forward guidance, embarking on asset purchases, rolling out emergency liquidity facilities and experimenting with lending programmes. But policymakers, with the required US Treasury backstop, have also introduced more creative programmes to encourage credit extension and reached into different market segments.

The Global Sustainability Footprint Of Sovereign Wealth Funds, Hao Liang, Luc Renneboog

Research Collection Lee Kong Chian School Of Business

With the emergence of sovereign wealth funds (SWFs) around the world managing equity of over $8 trillion, their impact on the corporate landscape and social welfare is being scrutinized. This study investigates whether and how SWFs incorporate environmental, social, and governance (ESG) considerations in their investment decisions in publicly listed corporations, as well as the subsequent evolution of target firms' ESG performance. We find that SWF funds do consider the level of past ESG performance as well as recent ESG score improvement when taking ownership stakes in listed companies. These results are driven by the SWF funds that do have …

Risk Premium Spillovers Among Stock Markets: Evidence From Higher-Order Moments, Marinela Adriana Finta, Sofiane Aboura

Research Collection Lee Kong Chian School Of Business

We investigate the volatility and skewness risk premium spillovers among the U.S., U.K., German, and Japanese stock markets. We define risk premia as the difference between risk-neutral and realized moments. Our findings highlight that during periods of stress, cross-market and cross-moment spillovers increase and that these increases are mirrored by a decrease in within-market effects. We document strong bidirectional spillovers between volatility and skewness risk premia and emphasize the prominent role played by the volatility risk premium. Finally, we show that several announcements drive the time-varying risk premium spillovers.

Gender And Beauty In The Financial Analyst Profession: Evidence From The United States And China, Congcong Li, An-Ping Lin, Hai Lu, Kevin Veenstra

Research Collection School Of Accountancy

We examine how gender and beauty affect the likelihood of being voted as an All-Star in the financial analyst profession in both the United States and China. We find that female analysts are more likely to be voted as All-Star analysts in the United States, but good-looking female U.S. analysts are less likely to be voted as All-Stars. The conclusion is the opposite for Chinese analysts. We find that female analysts in China are less likely to be voted as All-Stars, but the likelihood increases with their facial attractiveness. These findings implicate a beauty penalty for female analysts in the …

Are Corporate Spin-Offs Prone To Insider Trading?, Patrick Augustin, Menachem Brenner, Jianfeng Hu, Marti Subrahmanyam

Research Collection Lee Kong Chian School Of Business

Despite abundant empirical evidence of informed trading ahead of major corporate events, no such evidence has been reported in the case of corporate spinoff (SP) announcements. This is surprising, as SP announcements are unexpected, and are also associated with a positive price jump in the parent company’s stock. Using a sample of 280 US announcement events from 1996 to 2013, we document significant pre-announcement informed trading activity in options for about 9 to 16% of events in our sample. In contrast, we find statistically insignificant evidence of informed trading in stocks, suggesting that informed traders employ leverage through options. In …

Fin Vs. Tech: Are Trust And Knowledge Creation Key Ingredients In Fintech Start-Up Emergence And Financing?, Theodor Florian Cojoianu, Gordon L. Clark, Andreas G. F. Hoepner, Vladimir. Pažitka, Dariusz. Wójcik

Research Collection College of Integrative Studies

We investigate how the emergence of fintech start-ups and their financing is shaped by regional knowledge creation and lack of trust in financial services incumbents across 21 OECD countries, 226 regions and over the 2007–2014 period. We find that knowledge generated in the IT sector is much more salient for fostering new fintech start-ups than knowledge generated in the financial services sector. Additionally, the importance of new knowledge created in the financial services sector (IT sector) increases (decreases) as fintech start-ups grow and seek financing. When the level of trust in financial services incumbents falls within a region, this is …

Two Essays On The Microstructure Of The Housing Market: Agents' Diffused Effort And Sellers' Behavior Bias, Zhaohui Li

Theses and Dissertations in Business Administration

For the first essay, we generalize the classic Williams [1998 RFS] brokerage model by introducing the diffused effort. That is, the agent can cross-utilize effort spending on one listing to another one. Besides, the agent can manage heterogeneous housing assets. One counterintuitive finding in Williams’ paper is the absence of the agency problem. As a special case in our model, we recover the agency problem. We examine the positive externality due to the diffused effort and show that it depends on the agent’s inventory size. Hence there exists a trade-off between agents’ effort spending on existing listings and on finding …

Three Essays On Ceo Characteristics And Corporate Bankruptcy, Rajib Chowdhury

Theses and Dissertations in Business Administration

Scholarly studies have focused on the impact of managerial characteristics on various corporate activities. Following this stream of literature, this dissertation empirically examines the potential effects of three major Chief Executive Officer (CEO) characteristics, i.e., CEO ability, CEO risk taking behavior induced by compensation structure, and CEO overconfidence on corporate bankruptcies. Essay 1 examines whether chief executive officers (CEOs) are to be blamed for corporate failure. Using alternative measures of CEO ability, we document that high-ability CEOs are less likely to be associated bankruptcy. Bankruptcy-related high-ability CEOs manage to salvage their post-bankruptcy careers either with the reorganized firms or with …

Strategies To Prevent And Detect Occupational Fraud In Small Retail Businesses, Marquita V. Davis, David Harris Iii

International Journal of Applied Management and Technology

The objective of this multiple case study was to explore internal control strategies owners of small retail businesses in southeastern Pennsylvania used to prevent and detect occupational fraud. The results of this study indicated that there are areas for action that owners of small retail businesses could take to prevent and detect occupational fraud. Strategies business owners could implement to protect their businesses from occupational fraud include monitoring, employee identity documents to track employee activity, separation of duties, and communication with employees. Small business owners serve their communities by focusing on wealth distribution, including donations to local charities that foster …

Buffett’S Derivatives: Disruptive Financing At Low Cost, Florencia Roca, Juan Carlos Sanchez Meyer

Journal of New Finance

The well-established methodology for valuing options, the Black & Scholes formula, has been successfully challenged by Warren Buffet; who not only has been critical of the formula for the case of long-dated options, but has also applied a different approach in multi-billion derivative contracts. We study Berkshire Hathaway’s Equity Put transactions from a value-investing point of view. We show that Buffett is not using them as speculative investments, but as a disruptive -and cheap- financing source. We uncover Buffett’s methodology for valuing long-dated Equity Puts as long-term loans.

Are Coco Bonds Suitable As Core Capital Instruments?, Kevin Dowd

Journal of New Finance

Basel III introduced significant innovations in bank regulation. One of them is the minimum required leverage ratio. To help banks implementing the new measure , Basel III created two different core capital measures: Common Equity Tier 1 (CET1) and Additional Tier 1 (AT1). Since raising capital for CET1 is expensive, other instruments are used to build up AT1 in case of need, like for example Contingent Convertible (CoCo), which can convert to equity or written-down when a bank is under stress. In this paper we show that CoCos are not suitable as regulatory core capital instruments. Problems of timing, incentives, …

Money, Fdi And Economic Growth In Mena Countries., Huda Alsayed

LSU New Orleans Theses and Dissertations

First chapter examines the link between FDI, trade, capital formation and economic growth in 12 MENA countries using panel analysis for yearly data between the period 2001 to 2017. Using cointegration and Hausman test, our results indicate that, all the variables are stationary at first level, and long run relationship exist between our variables. A model of endogenous growth highlight that MENA countries favored FDI to trade, where trade has negative relation with economic growth. Capital formation and labor has positive and significant relation. We also, address the relation of education level, as we know that increase in Education level …

Regulatory Impacts On U.S. Financial Institutions, Ngeyan Almutairi

LSU New Orleans Theses and Dissertations

In this paper, I examine data from 2000 to 2019 to assess the impact of banks’ regulations on the U.S. financial institutions’ performance. The first essay examines the impact of the Dodd-Frank Act on the U.S. banking industry. The findings show that the Dodd-Frank Act has a negative impact on banks’ profits, efficiency, solvency and cost of intermediation, the effect is stronger for smaller banks. The act shrinks the advantage of banks that are members of bank holding company compared to standalone banks. Capital requirements are associated with higher profitability, efficiency, and cost of intermediation, while assets liquidity ratio has …

Liquidity Creation With Respect To Discretionary Loan Loss Provision And Dominant Determinants Impacting Banking Bnchmarks, Sanzid A. Haq

LSU New Orleans Theses and Dissertations

No abstract provided.

The Substantial Growth Of Shadow Banking, Financial Technology And Digital Currency And Their Respective Roles In Shaping The Next Financial Crisis, Vardhan S. Chulani Mr.

Undergraduate Economic Review

Based on Goldman Sachs’ model and the state of current affairs, an underlying possibility of a financial crisis occurring in the foreseeable future does exist. This could be due to ongoing trade war and negotiations with different countries, the new policies introduced by political parties and their respective impacts, high amounts of corporate and student debts along with auto loans in the economy, thus indicating signs of excessive leverage and resulting in depressing consumer confidence. International issues such as Brexit, the existing currency and debt crisis with Turkey, and China’s debt bubble could also contribute to the global growth slowdowns. …

Investing In The Land Of O.Z.: The Promise Of Qualified Opportunity Zone Investing In Ameliorating Urban Blight, Lukas John Foy

Undergraduate Honors Theses

In 2017, President Trump’s landmark Tax Cuts and Jobs Act introduced one of the most prolific federal incentives for real estate development in decades. In an effort to stimulate investment in neglected neighborhoods across all 50 states and five territories, the Federal Government authorized the designation of almost 9,000 blighted census tracts across the country as eligible for tax incentives. Investment in these tracts, deemed Qualified Opportunity Zones, allow investors to receive substantial capital gains deferral and possible capital gains exclusion at the end of the designated holding period, assuming they comply with the regulations of the program. While designed …

Observation Status Stays May Result In Financial Losses For Children’S Hospitals, David C. Synhorst

Research Days

No abstract provided.

Beyond A Tube Of Red Lipstick: An Economic Valuation Of Estee Lauder And The Beauty Industry, Aisea Odencrantz, David Offenberg

Honors Thesis

The current valuation of the beauty industry is approximately $532 billion, yet this industry is not commonly suggested by investment professionals as a way to add diversification into their investors’ portfolios. The current craze of the market is technology and fossil fuels, but the beauty industry has remained a major player in consumer spending patterns throughout time. Through examining the historical financial statements of the publicly-traded cosmetic conglomerate Estēe Lauder, as well as several of its competitors, I modeled the future valuation of Estēe Lauder using the Discounted Free Cash Flow and Comparable Firm Multiples models. This analysis demonstrated how …

Financial Reporting Principles And Accounting Concepts: A Collection Of Case Studies, Caroline Mcleod

Honors Theses

The following thesis is a collection of solutions to case studies related to various financial accounting and reporting standards in agreement with Generally Accepted Accounting Principles as set forth by the Financial Accounting Standards Board. In alignment with the topics learned in Intermediate Financial Accounting, each case focuses on a unique area of financial reporting along with application relevant to real world companies. The thesis demonstrates an understanding of accounting principles, financial statement preparation and analysis, and current accountancy topics. The case studies were completed under the direction of Dr. Victoria Dickinson in fulfillment of the requirements for the University …

A Tale Of Two Cities, Maybe Three A Look At Financial Literacy And Economic Development In Three Mississippi Cities: Fulton, Clarksdale, And Oxford, Kellie Reed Cleveland

Honors Theses

This paper explores the backbones of economic growth and how the backbones influence economic development in three cities in Mississippi. It further seeks to promote education in financial literacy throughout the state to create a base for individuals to further their financial education, create small businesses, or to simply be a knowledgeable citizen. The research sifts through backbones such as population health and small & big business influence, to explore how financial literacy influences daily life and the catalyst for businesses to start and grow. The Mississippi cities Fulton, Clarksdale, and Oxford are studied more in-depth through photos of the …

Research Project In Finance: Nve Corporation (Nvec), Houston Little

Student Scholarship

This project gives an overview of the well-being of the economy as a whole and also does a deep dive into the historical performance of the company while projecting future growth. Each of the future estimations are subject to change, based on numerous factors including but not limited to, US economic growth, international market development, management at NVE, and product innovation. There are many moving parts, but as an analyst, I will use the historical patterns, future expectations, and current financial well-being of NVE Corporation to decide whether this would be a good place for investors to rest their hard-earned …

2020 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 …

The Implementation Of Eportfolios As A High Impact Practice In The Real Estate Practice Class, Yu Liu

Q2S Enhancing Pedagogy

I would like to implement the ePortfolio to my Fin 481 Real Estate Practice course. Real Estate Practice course introduces students to a broad spectrum of practical issues and activities in real estate markets. It provides the opportunity for the students to get an in-depth understanding of the real estate business. Subjects include Understand Real Estate Market; Math for Real Estate; Buying Real Estate, Mortgage, Escrow, Title Company, Inspection, Home Insurance Company; Selling Real Estate, Repairing, Brokerage, Staging; Comparative Market Analysis; Brokerage and Marketing Strategies; Investing in Real Estate Market, Debt Utilization; Flipping and Wholesaling; Construction Fundamentals; Legal Protection and …

Alumna Leads Launch Of Innovative New Bank

Business Exchange

Marianne Markowitz (MBA ’92) is leading the launch of Illinois’ first new commercial bank in a dozen years. Called First Women’s Bank, the innovative, Chicago-based institution will serve small and midsize businesses and individual depositors, with a focus on women’s banking needs. Markowitz brings experience as the former Midwest regional director of the Small Business Administration to her role as bank CEO. In this interview, she shares why she is passionate about this groundbreaking bank startup, which is scheduled to open this year.

The Influence Of News Sentiment On Common Asset Pricing Models, Liam Mahler

Honors Projects in Finance

This paper aims to explore the influence of daily news article sentiment as a predictor of the returns on an investment. A daily sentiment score is developed and it is used to augment five commonly researched models, CAPM, Fama & French Three Factor, Carhart Four Factor, Fama & French Five Factor, and Fama & French Five Factor with Momentum. This study looks at six different securities over a five-year period. Along with this, two different variations of the factor are looked at, one of which is a simple factor that scores days without an article as zero and another that …

A Stochastic Approach To Portfolio Optimization Using Competing Risk Metrics, Juan Gonzalez

Honors Projects in Finance

This thesis presentation presents a stochastic approach to portfolio construction using various risk metrics as underlying models for portfolio optimization. The risk models utilized in this thesis include Mean-Variance, Minimum-Variance, Value-at-Risk (VaR), Conditional Value-at-Risk (CVaR). To evaluate the efficiency and overall performance of these models, historical data for 30 specific stocks was selected. The stock selection process focused on the selecting stocks that are highly volatile and correlated with one another. Empirical results reveal that portfolio optimization strategies outperform the benchmark. Additionally, results showed that the Minimum-Variance model constructed the best portfolio for the predetermined backtesting time period.

How Does The Buffett Indicator Work In China?, Ruixue Gao

Undergraduate Honors Theses

This study investigates whether the Buffett indicator can be used to make investment decisions in China. The investigation has two approaches. First, this study determines the scaling relationship between the Buffett Indicator and the GDP in China. Previous research and findings in this research regarding the scaling relationship can help international investors when comparing China with a different country as potential investment opportunities. Second, this study also examines whether the Buffett Indicator, the P/E ratio and composite models including the Buffett Indicator can be used as tools for international investors in predicting the Shanghai Index and making investment decisions for …

A Tale Of Two Smips: Equity And Fixed Income, Thomas S. Howe, Vladimir Kotomin, Min-Yu (Stella) Liao, Abhishek Varma

Faculty Publications – Finance, Insurance, and Law

Purpose – The purpose of this paper is to document and compare the characteristics of two student-managed investment funds at the University.

Design/methodology/approach – This study uses a case study approach to achieve this purpose.

Findings – Consistent with other studies, this study finds considerable differences in funding, oversight and the structure of the courses in which the students manage the portfolios. This is the case even though the portfolios are managed by students in courses offered by the same department at the same university.

Originality/value – This study presents different possible ways of obtaining funds and structuring courses in …