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2025

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Articles 121 - 150 of 469

Full-Text Articles in Finance and Financial Management

Earnings Management In Borsa Istanbul During Seasoned Equity Offerings, Mahmoud Ashour, Asuman Atik Jul 2025

Earnings Management In Borsa Istanbul During Seasoned Equity Offerings, Mahmoud Ashour, Asuman Atik

The Indonesian Capital Market Review

To increase share prices during the issuance of seasoned equity shares, firms may be motivated to boost earnings through earnings management, particularly just before the offering. This study examines the earnings management practices of non-financial firms listed in Borsa Istanbul and surrounding seasoned equity offerings. Using the cross-sectional Modified Jones and Roychowdhury (2006) models, both accrual-based and real earnings management practices were analyzed from 2005 to 2018. The sample consists of 120 rights offerings within the research period. The results indicate that firms listed on Borsa Istanbul did not engage in earnings management the year before the offering. Instead, earnings …

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Factors Influencing Digital Technology Adoption And Use Among Msmes In Indonesia, Andry Manodotua Panjaitan, Niko Sudibjo, Cahya Pulupi Meilani Jul 2025

Factors Influencing Digital Technology Adoption And Use Among Msmes In Indonesia, Andry Manodotua Panjaitan, Niko Sudibjo, Cahya Pulupi Meilani

DLSU Business & Economics Review

The purpose of this study is to see how attitudes toward behavior, subjective norms, and digital technology literacy affect adoption intentions and their impact on digital technology usage behavior in small and medium enterprises in Indonesia. This study used 532 MSME samples and tested them using SEM PLS analysis. The test findings showed that eight proposed hypotheses were accepted, and one was rejected. Digitally literate MSME owners and leaders can increase market awareness and set clear digital transformation goals for their companies. Furthermore, with government support for technology in MSMEs, digital technology is expected to be used not just for …

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Can Esg Reduce Credit Risk? An Empirical Investigation Across Asean-5 Markets, Arrafif Pratama Zaini, Maria Ulpah Jul 2025

Can Esg Reduce Credit Risk? An Empirical Investigation Across Asean-5 Markets, Arrafif Pratama Zaini, Maria Ulpah

The Indonesian Capital Market Review

Based on stakeholder theory and signaling theory, companies with strong ESG performance send signals to various stakeholders, thus building trust and influencing better credit risk evaluation. This study empirically examines the effect of Environmental, Social, and Governance (ESG) performance on the credit risk of non-financial public companies in ASEAN-5 countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) over the period 2019-2023. Corporate credit risk is measured using 2 main approaches: the accounting-based and market-based models. Merton's KMV model calculates the probability of default (PD) using a market-based approach. In contrast, the Altman Z-Score predicts bankruptcy risk based on financial ratios in …

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The Impact Of Effective Tax Rate And Cash Effective Tax Rate On The Capital Structure, Nguyen Vinh Khuong Dr., Tran Thao Vy, Nguyen Phuong Anh, Pham Thi Anh Hong, Bui Thi Ngoc Trinh, Cao Phuong Uyen Jul 2025

The Impact Of Effective Tax Rate And Cash Effective Tax Rate On The Capital Structure, Nguyen Vinh Khuong Dr., Tran Thao Vy, Nguyen Phuong Anh, Pham Thi Anh Hong, Bui Thi Ngoc Trinh, Cao Phuong Uyen

The Indonesian Capital Market Review

The study examines the impact of tax avoidance on the capital structure of listed companies on the Vietnam’s stock market. Conducting GLS regression testing and analysis through data of 657 enterprises listed on the two stock exchanges of Hanoi and Ho Chi Minh City in the period from 2015 to 2022. Research results have shown that initially, when businesses carry out tax avoidance, it will reduce the capital structure of the business because the marginal benefits received from tax avoidance are lower than the marginal costs from tax avoidance. However, after businesses carry out tax avoidance and the benefits from …

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Underpricing Of The Malaysian Initial Public Offerings (Ipos), Wahidah Shari Jul 2025

Underpricing Of The Malaysian Initial Public Offerings (Ipos), Wahidah Shari

The Indonesian Capital Market Review

This study evaluates the short-term performance of 469 Malaysian IPOs between 2002 and 2020. Previous studies have found that IPOs are underpriced in the short-term yet underperform in the long term. The short-term underpricing describes the phenomenon characterized by a significant increase from the offer price to the first day of closing price. The finding shows that Malaysian IPOs are significantly underpriced by 24.6% using offer-to-close return (OTC), which confirms the findings reported in previous literature. Separating OTC to offer-to-ask (OTA) and ask-to-close (ATC) indicates that a significant positive return is observed only in the OTA period but not in …

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Do Search Costs Explain Persistent Investment In Active Mutual Funds?, Aljoscha Janssen, Jurre Thiel Jul 2025

Do Search Costs Explain Persistent Investment In Active Mutual Funds?, Aljoscha Janssen, Jurre Thiel

Research Collection School Of Economics

Active funds, though losing market share since the 1990s, make up nearly half of all mutual funds but charge more without better performance. We analyze fund data and a search model, highlighting the impact of search costs and active fund preferences. From 1993 to 2018, reduced search costs expanded the market and heightened competition, while a preference shift from active to passive funds increased the latter's market share. However, investors who choose active funds, facing higher search costs, and continue to show a strong preference for them, allow these funds to keep charging higher fees.

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Decomposing Crowding Out Effect In The Philippines: Leveraging Fiscal Policy To Drive Inclusive Growth, John Paolo R. Rivera, Mary Grace R. Agner, Viory Yvonne T. Janeo, John Angelo F. Cristobal Jul 2025

Decomposing Crowding Out Effect In The Philippines: Leveraging Fiscal Policy To Drive Inclusive Growth, John Paolo R. Rivera, Mary Grace R. Agner, Viory Yvonne T. Janeo, John Angelo F. Cristobal

DLSU Business & Economics Review

Fiscal stimulus programs have substantively kept the Philippine economy afloat during crises and in facilitating recovery. In pursuing steeper growth, there is a tendency to harness fiscal policy at the expense of crowding out private investment and consumption, which defeats the ultimate purpose of such policy. Using time series analysis, we assess the degree of crowding out effect in the Philippines and its implications for the effectiveness of fiscal policy as a macroeconomic stabilization and growth driver tool. Although scholarly literature has used aggregate government spending in probing the existence of a crowding out effect on aggregate investment and consumption …

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Multifaceted Skepticism: A Comprehensive Approach In Auditing Practice, Ida Ayu Budhananda Munidewi, Unti Ludigdo, Ali Djamhuri, Wuryan Andayani Jul 2025

Multifaceted Skepticism: A Comprehensive Approach In Auditing Practice, Ida Ayu Budhananda Munidewi, Unti Ludigdo, Ali Djamhuri, Wuryan Andayani

DLSU Business & Economics Review

This research uses a modified grounded theory approach to understand the behavior of auditors in Indonesia who have an Eastern cultural background in applying professional skepticism. The research results reveal that auditor behavior in practice applies multifaceted skepticism. Multifaceted skepticism refers to the idea that professional skepticism in auditing is not a one-dimensional approach. That recognizes the complexity of the audit environment and the need for auditors to consider various factors when applying their skepticism. Multifaceted skepticism brings us to a less simplistic view of professional skepticism, which until now has only been seen as an on-or-off switch. Instead, this …

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Social Message In Advertising And Social Change: An Empirical Investigation Of Relationships, Iqra Manzoor, Zia- Ul-Haq Jul 2025

Social Message In Advertising And Social Change: An Empirical Investigation Of Relationships, Iqra Manzoor, Zia- Ul-Haq

DLSU Business & Economics Review

This study was carried out to investigate consumer behavior toward advertisements that convey social messages. Not many studies have focused on the social message in ads and the subjective well-being of customers regarding such ads. To study this gap, the paper examined the relationship between (a) the attitude towards the ad with a social message and the purchase intention of the consumer and (b) the purchase intention of the consumer and their subjective well-being. Structural equation modeling (SEM) was used to study the interrelationships within the proposed model. The data was collected through an experiment and qualitative survey among university …

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Leveraging Capital Structures Of Philippine Publicly Listed Companies, Michael Angelo A. Cortez Jul 2025

Leveraging Capital Structures Of Philippine Publicly Listed Companies, Michael Angelo A. Cortez

DLSU Business & Economics Review

In this study, I revisit the determinants of corporate capital structures of publicly listed businesses in the Philippines, emphasizing major characteristics previously identified in academic literature, including tangibility, profitability, company size, non-debt tax shields, and growth. I investigate how companies’ financial actions correspond with or deviate from traditional capital structure theories within the context of the Philippine economy’s reliance on short-term, high-cost lending and its evolving capital market. Using a descriptive-exploratory approach to analyze 210 observations from 21 businesses listed on the Philippine Stock Exchange from 2014 to 2023, I performed a quantitative analysis of construct relationship using cross-sectional generalized …

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Examining The Volunteering Behavior Of Filipino Youth Using The Extended Theory Of Planned Behavior, Reynaldo B. Bautista, Christine Joy A. Ballada, Joy Rabo Jul 2025

Examining The Volunteering Behavior Of Filipino Youth Using The Extended Theory Of Planned Behavior, Reynaldo B. Bautista, Christine Joy A. Ballada, Joy Rabo

DLSU Business & Economics Review

Young people are vital human resources who can significantly contribute to social change through volunteerism. This study sought to examine Filipino youth’s volunteering behavior using an extended theory of planned behavior with behavioral modeling by family and peers as additional antecedents of volunteering intention. Participants in this study were undergraduate students of De La Salle University – Manila. A total of 438 students (60% female, 39% male, and 1% preferring not to say) aged 17 to 23 years old (M = 19.60 years, SD = 1.12) participated in the study. The scales were found to have good internal consistency reliability. …

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Determinants Of Bangladeshi Banking Inefficiency: Do Non-Performing Loans And Basel Iii Affect Banking Inefficiency?, Mohammad Abdul Matin Chowdhury, S. M. Shamsul Alam, Wan Rohaida Wan Husain, Rafikul Islam, Anwar Hossain Jul 2025

Determinants Of Bangladeshi Banking Inefficiency: Do Non-Performing Loans And Basel Iii Affect Banking Inefficiency?, Mohammad Abdul Matin Chowdhury, S. M. Shamsul Alam, Wan Rohaida Wan Husain, Rafikul Islam, Anwar Hossain

DLSU Business & Economics Review

The efficiency of commercial banking is a crucial determinant of the longevity of the financial system. High credit risk is a significant feebleness that leads to high non-performing loans (NPLs), which reduce banking efficiency in any economy. In this context, this study aims to identify the determinants of banking inefficiency in Bangladesh. The Data Envelopment Analysis (DEA) technique was employed to measure banking efficiency, whereas TOBIT regression was performed to identify the determinants of inefficiency of 38 commercial banks from 2016–2022. Findings demonstrated size, ownership structure and orientation, capital structure regulations (BASEL III), GDP growth, and inflation as significant determinants …

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Budget Deficit Spending Causes Inflation, Roberto B. Raymundo, Paulynne J. Castillo Jul 2025

Budget Deficit Spending Causes Inflation, Roberto B. Raymundo, Paulynne J. Castillo

DLSU Business & Economics Review

Using the Cochrane-Orcutt iterative procedure, the paper provides strong statistical evidence that inflation is a monetary phenomenon caused by budget deficit spending when the central bank buys government debt. Regression results validate that increasing budget deficits lead to the issuance of more debt securities the central bank uses to back the creation of new money. The central bank purchases government securities from commercial banks to implement expansionary monetary policy. The increase in money supply is not possible without the issuance of government debt securities, which, in turn, is only undertaken by the Bureau of Treasury when it finances budget deficits. …

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Information Production By Institutions And Information Extraction By Underwriters In Hybrid Ipo Auctions, Thomas J. Chemmanur, Pengfei Ma, Qianqian Yu Jul 2025

Information Production By Institutions And Information Extraction By Underwriters In Hybrid Ipo Auctions, Thomas J. Chemmanur, Pengfei Ma, Qianqian Yu

Research Collection Lee Kong Chian School Of Business

We analyze the informational properties of hybrid IPO auctions using a large and unique database of institutional bids from Chinese IPO auctions. We find strong evidence of information production by institutions about the intrinsic values of IPO firms and of underwriters extracting and using this information in IPO pricing. The IPO offer price is more sensitive to bids from institutions able to produce more precise information. In particular, the offer price is more sensitive to bids from domestic institutions, compared to bids from foreign institutions who likely have less knowledge or experience about the Chinese firms and financial market due …

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Editor's Note, Marites Tiongco Jul 2025

Editor's Note, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

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Multi-Period Portfolio Allocation: A One-Shot Stochastic Optimization Approach, Peng Liu, Chyng Wen Tee, Xiaofei Xu Jul 2025

Multi-Period Portfolio Allocation: A One-Shot Stochastic Optimization Approach, Peng Liu, Chyng Wen Tee, Xiaofei Xu

Research Collection Lee Kong Chian School Of Business

Multi-period portfolio optimization is a central problem in finance, yet it is computationally intractable for traditional dynamic programming methods due to the curse of dimensionality. This paper develops a tractable and theoretically grounded 'one-shot' stochastic optimization framework that recasts the sequential decision problem into a single, high-dimensional optimization task. Our approach models the predictive distribution of factor returns using Gaussian Processes (GPs), allowing it to capture complex, non-linear market dynamics. We make three primary contributions. First, for the special case of a linear GP kernel, we derive an analytical solution for the optimal portfolio path, providing a clear economic interpretation …

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Pengaruh Emotional Intelligence, Locus Of Control, Risk Aversion, Dan Financial Literacy Terhadap Risky Investment Intention Di Indonesia, Sekar Savira Ramadhani, Maria Ulpah, Wardatul Adawiyah Jun 2025

Pengaruh Emotional Intelligence, Locus Of Control, Risk Aversion, Dan Financial Literacy Terhadap Risky Investment Intention Di Indonesia, Sekar Savira Ramadhani, Maria Ulpah, Wardatul Adawiyah

Jurnal Manajemen dan Usahawan Indonesia

This study investigates how individual factors—namely emotional intelligence, external locus of control, risk aversion, and financial literacy—affect the intention to invest in risky financial instruments in Indonesia. The research explores both the direct and indirect effects of these factors on risky investment intentions. Data were collected from 507 respondents through an online questionnaire. The findings indicate that emotional intelligence, external locus of control, and financial literacy positively influence the intention to invest in risky assets, while risk aversion has a negative effect. Additionally, the analysis of indirect effects shows that financial literacy moderates the relationship between emotional intelligence and risk …

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Enhancing Participation In Indonesia's Islamic Capital Market: Exploring Technology Acceptance, Socio-Psychological Factors, And Islamic Financial Literacy, Muhammad Hanif Ibrahim, Akmalia Lutfiaturrosyida Agung Putri, Imas Hasanah, Apia Dewi Agustin, Afnani Rosyida Jun 2025

Enhancing Participation In Indonesia's Islamic Capital Market: Exploring Technology Acceptance, Socio-Psychological Factors, And Islamic Financial Literacy, Muhammad Hanif Ibrahim, Akmalia Lutfiaturrosyida Agung Putri, Imas Hasanah, Apia Dewi Agustin, Afnani Rosyida

Jurnal Akuntansi dan Keuangan Indonesia

Background: This research aims to examine the factors influencing Indonesian Muslims' intention to invest in the Islamic capital market by synthesizing three theoretical frameworks: the Technology Acceptance Model (TAM), the Theory of Planned Behavior (TPB), and Islamic Financial Literacy (IFL). Methods: The study utilizes a sample of 250 participants with previous experience in Islamic investment, employing Partial Least Squares Structural Equation Modeling (PLS-SEM) for hypothesis testing and model evaluation. Findings: The findings indicate that perceived convenience substantially influenced perceived usefulness and ease of use. Moreover, perceived usefulness, Islamic financial literacy, and past behavior significantly and positively affect investment attitudes, which …

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Dampak Covid-19 Terhadap Kecepatan Penyesuaian Struktur Modal: Studi Perbandingan Antara Perusahaan Sharia-Compliant Dan Non-Compliant Di Indonesia, Abdul Karim, Karina Wulandari Jun 2025

Dampak Covid-19 Terhadap Kecepatan Penyesuaian Struktur Modal: Studi Perbandingan Antara Perusahaan Sharia-Compliant Dan Non-Compliant Di Indonesia, Abdul Karim, Karina Wulandari

Jurnal Manajemen dan Usahawan Indonesia

This study aims to examine the impact of the COVID-19 pandemic on capital structure adjustment among firms in Indonesia, with a focus on differences between Sharia-compliant and non-compliant companies. The research utilizes panel data from non-financial firms listed on the Indonesia Stock Exchange (IDX) during the 2017–2022 period. Capital structure adjustment is analyzed using panel regression methods, controlling for variables such as profitability, growth, firm size, tangibility, liquidity, and income volatility. The findings indicate that the pandemic increased leverage and accelerated capital structure adjustment overall. However, Sharia-compliant firms exhibited a slower adjustment speed compared to non-compliant firms, due to constraints …

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The Impact Of Cost Leadership On Financial Distress Mediated Environmental, Social, And Governance, Steven Asher, Meythi Meythi, Riki Martusa, Rapina Rapina Jun 2025

The Impact Of Cost Leadership On Financial Distress Mediated Environmental, Social, And Governance, Steven Asher, Meythi Meythi, Riki Martusa, Rapina Rapina

Jurnal Akuntansi dan Keuangan Indonesia

Background: This study investigates the mediating role of environmental, social, and governance (ESG) performance in the relationship between cost leadership and financial distress among companies in Indonesia. Methods: Using path analysis, the research analyzed a sample of 43 firms listed on the Indonesia Stock Exchange from 2018 to 2022. Findings: The findings indicate that cost leadership positively affected ESG; however, no direct relationship was observed between cost leadership or ESG and financial distress. The mediation analysis reveals that ESG acted as a mediator, linking cost leadership to a reduced risk of financial distress. Conclusion: These results highlight the importance of …

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Lessons Learned: Vincenzo La Via, Mercedes Cardona Jun 2025

Lessons Learned: Vincenzo La Via, Mercedes Cardona

Journal of Financial Crises

Vincenzo La Via joined the World Bank Group in 2005 as chief financial officer, in charge of financial reporting, accounting, strategic planning and budgeting, credit risk, corporate finance, market risk, liquidity and asset management, and product development. During his tenure, La Via took part in the bank’s response to the Global Financial Crisis (GFC) and the subsequent European Sovereign Debt Crisis. He left the bank in 2012 to become director general of the Treasury in the Italian Ministry of Economy and Finance as the Italian government took on reform of the banking sector. He left the public sector in 2019 …

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Lessons Learned: Luis Jácome, Mercedes Cardona Jun 2025

Lessons Learned: Luis Jácome, Mercedes Cardona

Journal of Financial Crises

Luis Jácome was appointed president of the board of Ecuador’s central bank in 1998 by newly elected President Jamil Mahuad. He and other members of the board resigned in 1999 in protest against a number of crisis-intervention measures they saw as threatening the bank’s independence to set monetary policy. Since the 1970s, Ecuador’s economy had experienced a period of growth fueled by oil exports, but by the mid-1990s the economy was reeling from a series of shocks, among them: a sharp drop in the price of oil, the effects of severe flooding on the country’s agricultural production, and the cost …

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Lessons Learned: Benoît Cœuré, Mercedes Cardona Jun 2025

Lessons Learned: Benoît Cœuré, Mercedes Cardona

Journal of Financial Crises

Benoît Cœuré held several positions in the French Treasury in the years leading to the Global Financial Crisis (GFC). He was an economic adviser to the director general of the French Treasury from 1997–2002, deputy chief executive and chief executive of the French debt management office from 2002–2007, and assistant secretary for multilateral affairs, trade, and development from 2007–2009. He served as chief economist and deputy director general in 2009–2011. He joined the European Central Bank (ECB) during the European Sovereign debt Crisis and was responsible for market operations, market infrastructure supervision and European and international relations as a member …

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Lessons Learned: Miguel Carcaño, Mercedes Cardona Jun 2025

Lessons Learned: Miguel Carcaño, Mercedes Cardona

Journal of Financial Crises

During the Global Financial Crisis (GFC), Miguel Carcaño served as head of the Spanish Treasury’s Fund for Orderly Bank Restructuring, the authority in charge of managing the restructuring process of the country’s credit institutions. The fund, known today as the Spanish Executive Resolution Authority, is integrated into the European network led by the Single Resolution Board (SRB) of the European Union’s banking union. Carcaño has held a number of posts within the SRB and in 2022 became head of the Single Resolution Fund, the SRB’s emergency fund, which serves as backstop for institutions across the banking union’s 21 countries.

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Lessons Learned: Ignazio Angeloni, Mercedes Cardona Jun 2025

Lessons Learned: Ignazio Angeloni, Mercedes Cardona

Journal of Financial Crises

Ignazio Angeloni was an adviser on financial integration, financial stability, and monetary policy to the Executive Board of the European Central Bank during the European Sovereign Debt Crisis and later became director general of financial stability. He coordinated the preparations for establishing the Single Supervisory Mechanism (SSM), a component of the European banking union. The SSM was created to address macroprudential gaps identified during the Global Financial Crisis and the Sovereign Debt Crisis. Angeloni has advocated in his academic papers for completing the work of the SSM by establishing a regional deposit insurance scheme that would backstop the work of …

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Lessons Learned: Mark Branson, Mercedes Cardona Jun 2025

Lessons Learned: Mark Branson, Mercedes Cardona

Journal of Financial Crises

Mark Branson joined the Swiss Financial Market Supervisory Authority (FINMA) as head of the banking division in 2010, during the European Sovereign Debt Crisis. He became deputy director of FINMA in 2013 and was named director a year later. Although Switzerland is not a member of the European Union (EU) or its banking union, the nation participates in bilateral agreements that govern trade with the EU, its largest trading partner. In the wake of the Global Financial Crisis (GFC), it enacted a number of regulations to improve oversight of the financial sector. Branson left FINMA in 2021 to become head …

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How Us Bank Regulation Failed Svb And Its Supervisors, Greg Feldberg, Carey K. Mott, Jill Cetina Jun 2025

How Us Bank Regulation Failed Svb And Its Supervisors, Greg Feldberg, Carey K. Mott, Jill Cetina

Journal of Financial Crises

It is well known that Silicon Valley Bank (SVB) failed in March 2023 because of a toxic combination of uninsured deposits and underwater securities. This article argues that the bank’s failure could have been avoided if SVB had been subject to two global standards established by the Basel Committee on Banking Supervision. First, the interest-rate risk in the banking book (IRR-BB) standard, never fully implemented in the United States, would have identified the bank’s extremely risky asset-liability management strategy and required remedial action 10 quarters before it failed. Second, the liquidity coverage ratio (LCR), from which US regulators had exempted …

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Emergency Liquidity Assistance And Monetary Financing In The European Union: A Case Study In Fiscal Cooperation?, Vincient Arnold Jun 2025

Emergency Liquidity Assistance And Monetary Financing In The European Union: A Case Study In Fiscal Cooperation?, Vincient Arnold

Journal of Financial Crises

In the European Union (EU), primary EU treaty law prohibits central banks from engaging in monetary financing, which includes lending to insolvent firms. This legal prohibition exists alongside, and in parallel to, various regulatory provisions of the Eurosystem. As a result, EU Member State central banks face unique legal limitations when acting in their roles as lenders of last resort, providing emergency liquidity assistance (ELA). In practice, European central banks—both members of the Eurosystem and not—lend to firms of questionable solvency with some frequency, often creatively employing fiscal guarantees to limit their balance sheet exposure and shift the lending risk …

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United States: Rhode Island Limited Bank Holiday, 1991, Ayodeji George, Sophia Alden Jun 2025

United States: Rhode Island Limited Bank Holiday, 1991, Ayodeji George, Sophia Alden

Journal of Financial Crises

In 1990, the Rhode Island Share and Deposit Indemnity Corporation (RISDIC) was a private mutual deposit insurance corporation funded by member institutions. Late that year, after the failures of two of its insured institutions in July and October, other RISDIC member institutions faced large depositor withdrawals, as concerns began to focus on the financial health of RISDIC itself. RISDIC had maintained inadequate reserves, and on December 31, 1990, it found itself lacking the resources to cover depositor withdrawals from member institutions. RISDIC leadership requested a state-appointed conservator, which meant that all its member institutions no longer had the deposit insurance …

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United States: Reserve Primary Fund Suspension, 2008, Anmol Makhija Jun 2025

United States: Reserve Primary Fund Suspension, 2008, Anmol Makhija

Journal of Financial Crises

In 2008, the Reserve Primary Fund was the world’s third-largest money market fund with $62.5 billion in assets. Following Lehman Brothers’ bankruptcy filing on September 15, the Primary Fund’s $785 million position in Lehman debt securities was underwater, and the fund faced severe redemption pressures from investors. In just two days, redemption requests surpassed $40 billion. Owing to the fund’s inability to liquidate assets at or above par value in the frozen markets and the inability of its sponsor, the Reserve Management Company, Inc. (RMCI), to support investors, the Reserve announced on September 16 that the Primary Fund had “broken …

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