Finance and Financial Management Commons^™

International Evidence On The Relationship Between Financial Literacy And Corporate Cash Holdings, Kenneth Yung, Reza Kahibavil, Su Li, Arian Amidi

Finance Faculty Publications

This study is the first investigation of the relationship between corporate cash holdings and financial literacy (FL). We find that a one‐standard‐deviation increase in FL is associated with an 8%–27% reduction in corporate cash holdings, depending on the measure of FL used. Moreover, higher FL reduces the market value of excess cash, indicating that financially literate environments discourage value‐destroying cash accumulation. The results remain robust across alternative definitions of FL and cash holdings, estimation methods, and country subsamples. We further rule out the influence of endogeneity, refinancing risk, and variation in cash needs. Additional analyses identify agency costs as the …

Natural Resource Rents And Energy Poverty Nexus In Next Eleven Economies, Muhammad Salah Uddin, Ayub Ali, Zobayer Ahmed, Md Nasir Uddin Sikdar, Ahsan Habib, Abdullah Elah Al-Mahde

Finance Faculty Publications

Energy poverty (EP) remains a persistent global challenge with important implications for economic development, public health, and social welfare. While natural resources, particularly oil and gas, are often viewed as key sources of energy access, their effectiveness in mitigating EP remains underexplored in emerging economies. This study examines the relationship between natural resource rents (NRR), specifically oil rents (OR) and natural gas rents (NGR), and energy poverty (EP) in the Next Eleven (N-11) countries from 2000 to 2020. The primary objective is to assess how NRR influences EP at various levels of poverty using the Method of Moments Quantile Regression …

How Operational And Disclosure Complexity Shapes The Conglomerate Discount, Feng Dong, John A. Doukas, Son Wilson, Rongyao Zhang

Finance Faculty Publications

This study examines how firm operational diversification and disclosure complexity jointly drive the conglomerate discount. We disentangle disclosure complexity, which is determined by managerially influenced financial transparency, from accounting complexity, which is a direct informational consequence of operational complexity. We find that operational diversification is consistently associated with significant conglomerate discounts, while disclosure complexity independently reduces firm value and amplifies the magnitude of the discount when diversification is high. These findings suggest that transparent disclosures can mitigate valuation costs, offering important implications for managers seeking effective communication, investors assessing complex firms, and policymakers aiming to enhance disclosure quality and market …

Can Art Function As A Financial Asset Class? Conditions, Risks, And Emerging Solutions, Aurelia Labbé

MA Theses

The art market has grown significantly over recent decades, supported by rising global demand, record auction results and increasing interest from collectors pursuing financial returns. This evolution has encouraged the development of investment-oriented practices and strengthened the notion that artworks can function as financial assets. This shift takes place in a market shaped by subjectivity, opacity and limited regulatory oversight, where valuation methods, provenance documentation and professional standards remain highly uneven. These conditions make art investment particularly complex and raise essential questions about the factors that support or weaken the legitimacy of art as an asset class. This thesis examines …

Does Blue-Chip Art Genuinely Provide Diversification And Risk Mitigation Once Illiquidity, Transaction Frictions, And Survivorship Bias Are Explicitly Incorporated Into Performance Analysis, Or Is The “Safe Haven” Label Fundamentally Misleading?, Radhika Vissanji

MA Theses

Blue-chip art is widely presented as a safe haven and portfolio diversifier, particularly during periods of financial market uncertainty. This perception is reinforced by art price indices and industry reports that emphasise long-term appreciation, relatively low volatility, and weak correlation with traditional financial assets. Despite the growing prominence of these claims in advisory and institutional discourse, there remains limited agreement on whether such properties persist once the structural characteristics of the art market are fully taken into account. This thesis evaluates whether blue-chip art genuinely delivers diversification and risk-mitigation benefits under realistic market conditions. Focusing on three structural factors, illiquidity, …

Ceo Compensation Changes Following Acquisitions, Leonce Bargeron, David J. Denis

Finance and Quantitative Methods Faculty Publications

We find that CEO compensation increases following acquisitions only in those deals in which acquirer stock is used as the method of payment. These compensation increases are driven by increases in equity-based compensation and are concentrated in riskier acquirers, in riskier acquisitions, and in acquirers whose CEOs have low exposure to the stock price. We find little support for traditional agency cost explanations of changes in CEO pay following acquisitions. However, our findings are broadly consistent with compensation changes representing a contracting solution to a two-sided adverse selection problem that is present only in stock acquisitions.

The Emergence Of Buy Now Pay Later Platforms: A Business Analysis Study, Asher Frye

CMC Senior Theses

This thesis dives into the growth of Buy Now, Pay Later (BNPL) financing and its implications for consumer financial health. Using Affirm’s 2019-2024 data and recent reporting from regulators, it documents strong BNPL expansion alongside emerging concerns about repayment risk and credit score impacts. These insights motivate me to conduct an experiment testing whether clearer disclosure affects consumer BNPL choices. While the experiment shows no statistically significant effects, it underscores the need for further study of BNPL understanding and consumer behavior.

The Prestige Paradox: Can Venture Capital Prestige Lead To Lower Startup Exit Rates?, Charlie Fenollosa

Honors Theses

This project investigates how the prestige of VC firms investing in early-stage startups affects the likelihood of successful exits, defined as IPOs or acquisitions. Using Crunchbase data on companies, funding rounds, and investments, I construct six measures of prior VC success to proxy for prestige. Contrary to conventional expectations, VC prestige is not associated with increased exit probability, a finding robust to composite, LASSO-selected, and PCA-based indices. Further analysis suggests this relationship is driven by mechanisms through which high VC prestige paired with large syndicates and high funding may create frictions, while prestigious VCs help smaller companies grow more effectively.

Policy Uncertainty Reduces Green Innovation, Mengyu Wang, Jeffrey Wurgler, Hong Zhang

Research Collection Lee Kong Chian School Of Business

Policy uncertainty can undermine the power of government subsidies to stimulate environmentally friendly research and development. We show that Chinese firms’ green R&D falls as the uncertainty of environmental subsidies rises: Exogenous, weather-driven air pollution variability induces subsidies to fluctuate, and firms in areas with high weather-driven subsidy variability undertake less green R&D and hire fewer technical employees, controlling for the average level of subsidies. Heavy emitters and environmental technology firms are more affected. The results also illustrate how policy uncertainty can arise when policymakers are influenced by conditions that are salient but with causes that are difficult to disentangle.

Signals Of Value: A Comparative Analysis Of Sde And Ebitda In Predicting Microbusiness Sale Price, Joseph E. Turley

Theses, Dissertations and Capstones

This dissertation compares the predictive accuracy and stability of Seller’s Discretionary Earnings (SDE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in explaining realized sale prices of microbusinesses. Microbusinesses, defined as firms with fewer than ten employees and annual revenue below $2.5 million, face persistent valuation challenges due to information asymmetry, owner dependence, and informal financial reporting. The study analyzes 5,499 completed U.S. transactions from the DealStats database (2014–2024) after applying microbusiness criteria and outlier trimming. Predictive accuracy is measured by absolute percentage error between actual sale prices and prices implied by each metric. Findings show that SDE-based predictions …

Corporate Disclosure Meets Natural Language Processing: Topic Modeling, Disclosure Strategy, And Audit Implications, Wanxin Yu

2026

Corporate disclosures serve as a critical channel for firms to communicate their financial performance, strategic initiatives, and firm-specific risks. In recent years, rapid advances in natural language processing (NLP) have provided powerful new tools for extracting insights from the growing volume and complexity of corporate disclosures. This dissertation consists of three studies that explore how advanced textual analysis can reveal deeper insights into corporate disclosures, managerial behavior, and auditor practices.

The first paper (co-authored) develops a topic-based approach to measuring the substantive content of risk factor disclosures. Using an embedding-based topic modeling framework, we identify 30 interpretable risk topics and …

Board Characteristics And Bank Performance: An Empirical Analysis Of The Size Effect In Emerging Economies, A. Bouteska, M. Kabir Hassan, Luca Pezzo, Jose Perez-Amuedo

Finance Faculty Research and Publications

Purpose

This paper aims to estimate the impacts of the board characteristics on bank performance in emerging countries, mainly focusing on the role of moderating factor.

Design/methodology/approach

Based on the literature review and the feasible generalized least squares econometric method approach, 137 deposit banks from seven emerging countries, including Saudi Arabia, Kuwait, United Arab Emirates, Bahrain, Qatar, Malaysia and Turkey, are all examined in the 2010–2022 year period.

Findings

Bank size is suggested as the statistically significant factor that moderates the association among the board characteristics, i.e. board size, duality, government ownership and bank performance. Based on the bank size, …

Evaluating Machine Learning Models For Corporate Financial Forecasting: A Study Of The Dow Jones 30, Faizan Arjamand Ali

Senior Honors Theses and Projects

This research seeks to determine the effectiveness of machine learning models in predicting revenues of corporations compared to conventional models of financial forecasting. The investigation is based on a group of 21 companies that maintained membership in the Dow Jones Industrial Average (DJIA) between 2010 and 2025. Two machine learning algorithms are assessed: Random Forest and XGBoost. They are compared with the naïve growth model and deterministic linear trend, which serve as benchmarks. To check for statistical significance, the Wilcoxon signed-rank tests are used to compare the mean absolute percentage error (MAPE) and the root mean squared error (RMSE) of …

Essays In Consumer Credit Markets, Sarah Najafzadeh Khoei

Theses and Dissertations--Finance and Quantitative Methods

This dissertation studies how technology, market structure, and contract design shape outcomes in consumer credit markets, with a particular focus on auto lending and leasing. In the first chapter, I investigate the performance of automated underwriting systems relative to human underwriters in the auto loan market. While prior studies document the advantages of automated underwriting, I show that its performance deteriorates under conditions of heightened data uncertainty. Exploiting the COVID-19 pandemic as an exogenous shock and using a combination of difference-in-differences and regression discontinuity designs, I find that automated underwriting performs significantly worse than human underwriting during this period, particularly …

Do The Oscars Move Markets? Best Picture Recognition And Public Equity Responses, Avi Dayani

CMC Senior Theses

This thesis examines when culturally salient events become financially material by testing whether Academy Awards recognition is reflected in public equity markets. The central question is whether Best Picture nomination announcements and wins generate abnormal returns or abnormal trading activity for the publicly traded parent firms linked to nominated films, and whether those responses depend on the firm’s exposure to filmed entertainment. I study Best Picture nominees from 2000 through 2024, map each film to the public parent of its primary distributor, and construct a firm-by-Oscar-year sample of 119 observations. Using an event-study framework, I calculate abnormal returns as firm …

Impact Of Attention And Yield Curve On Term Structure Of Equity, Matthew C. Aved

CMC Senior Theses

This paper examines the term structure of equity and specifically focuses on the impact of term spread and market attention. The paper builds on prior work that developed the concept by adding behavioral explanations for differences between the short-term and long-term returns while also attempting to link the term structure of equity and the bond yield curve. The study examines these influences by running t-tests and regressions on dividend strip and S&P 500 return data (1996-2017) and attention data collected by Bloomberg (2010-2017). The results provide some insight into how these variables influence short-term and long-term returns; however, limited instances …

Attention And Technical Analysis: State‑Dependent Predictability Of Cnn‑Based Stock Return Forecasts, Crystal Y. Ma

CMC Senior Theses

This thesis studies how investor attention around Federal Open Market Committee (FOMC) announcements affects cross-sectional return predictability measured by a convolutional neural network (CNN) trained on price charts. I replicate Jiang, Kelly, and Xiu’s (2023) image-based CNN using 20-day OHLCV “price images,” train it on U.S. equities from 1993–2000, freeze the model, and apply it out of sample to 2001–2024 CRSP data. The CNN assigns each stock a weekly probability of outperforming which is then sorted into deciles that form high–minus–low (H–L) long–short portfolios at horizons of 1 to 10 trading days. For matched non-FOMC (control) weeks, the equal-weighted CNN …

Investor Reactions To Clinical Trial Outcomes: Interpreting Impacts Using Ai-Based Measures Of Investor Sentiment, Sofia K. Weinstein

CMC Senior Theses

This thesis examines how investors react to biotechnology firms’ clinical trial announcements and whether artificial intelligence (AI) can enhance our understanding of those market reactions. Using a representative sample of 95 firm-event observations between 2014 and 2025, the study measures cumulative abnormal returns (CARs) surrounding clinical readouts, regulatory decisions, and partnership disclosures. Event-study regressions test for heterogeneity across trial phase, therapeutic area, and textual sentiment derived from company press releases. Consistent with expectations, later-phase trials, particularly Phase II and III, produce stronger short-term abnormal returns. However, categorical variables such as phase or therapeutic area explain little of the total variation …

Auditor Independence And Its Impact On Debt Financing Outcomes, Harry Zhou

CMC Senior Theses

This study investigates whether perceived auditor independence, proxied through proportions of non-audit service fees and client dependence of the auditor, is associated with the outcome of debt contracts. While prior research examines how these proxies relate to auditor independence itself, and other strands of literature assess how audit quality influences debt contracting, few studies evaluate whether lenders interpret auditor independence signals in ways consistent with auditors. This study aims to contribute to the broader literature by examining the auditor independence proxies and its direct relationship to debt contract structure holistically. Two OLS models were employed to investigate the relationship between …

Audit Fee Spillovers Following Sec Scrutiny: Evidence From Auditor Portfolio Effects, Rakhshaan R. Adamjee

CMC Senior Theses

This paper examines whether audit firms reprice clients that are not under Securities and Exchange Commission (SEC) review when a greater share of the auditor’s other clients face SEC scrutiny. Results indicate economically meaningful pricing spillovers. In the full sample, a ten-percentage-point increase in auditor-level exposure is associated with approximately 2% higher fees for non-scrutinized clients. The effect is stronger for Big Four networks: the Big Four slope is about 3.6% per ten points, and a Big Four only replication yields roughly 8.9%. Among Big Four, measuring exposure at the signing-office level also produces a positive but smaller association (~0.4% …

From Static Λ To Moving Penalties: Dynamic Regularization In Mean-Variance Portfolio Choice, Ariel Santiago

CMC Senior Theses

This thesis evaluates whether dynamically tuned weight penalties can improve high-dimensional mean-variance portfolio choice. Classical Markowitz portfolios perform poorly when the number of assets is large relative to the data, because small estimation errors in means and covariances can generate extreme, fragile allocations. A common remedy is to regularize the weights using L1 (lasso), L2 (ridge), or elastic-net penalties, but these are typically chosen once and held fixed. Using monthly excess returns on the 48 Fama-French industry portfolios from January 2010 to June 2025, this thesis compares penalized mean-variance and minimum-variance strategies under long-only and long-short constraints, with and without …

Artificial Intelligence–Enabled Revenue Cycle Management And Financial Performance In Healthcare Organizations, K’Reesa Webster

Theses, Dissertations and Capstones

The purpose of this review was to examine how artificial intelligence–enabled revenue cycle management (AI-enabled RCM) systems have been associated with financial performance outcomes in healthcare organizations. A literature review following a systematic process consistent with PRISMA 2020 guidelines was conducted to identify quantitative studies published between 2015 and 2026. Eligible studies were required to report at least one financial outcome related to claim denial rate, days in accounts receivable, or operating margin. Twenty-seven studies met all inclusion criteria. Findings across these studies indicated that AI-enabled RCM systems have been associated with lower denial rates, shorter accounts receivable timelines, and …

2026 Crummer Truist Portfolio, Alexis Matton, Carlos Meyer, Amelia Kondal, Numair Aziz, Madison Kalhor, Taylor Payne, Hannah Gilbert, Chris Brennan, Ian Dean, Tully Njoroge, Dylan Reilly

Crummer Truist Portfolios

We would like to thank you for your service to the Crummer Truist Portfolio. Without your participation, Crummer students would not benefit from the unique insight you bring to managing an active portfolio. We have been fortunate to listen and learn from some outstanding guest speakers who have been generous with their time and expertise: Dr. J. Clay Singleton, Emeritus Professor, Crummer Graduate School of Business; Amy Martin, Executive Director (Corporate Credit Strategy) at Wells Fargo; Davis Moshier, Investment Banking Associate at Lucid Capital Markets; Jay Kineon, Analyst at PFM Financial Advisors; Marc Miller, Partner, DePrince, Race, and Zollo; Matej …

Does A More Functionally Diverse Top Management Team Make The Financial Statements More Comparable?, Md Mahmudul Hasan, Audrey Wen-Hsin Hsu, Sayan Sarkar, Tsung-Hsuan Joey Yang

Accounting Faculty Publications

We examine whether top management team (TMT) functional diversity affects financial statement comparability. Drawing upon upper echelons theory and the information sharing perspective in diversity research, we argue that TMT functional diversity produces more comparable financial statements due to better information sharing and integration. Using a sample of US firms, we find that financial statement comparability is positively associated with TMT functional diversity. We also find that the positive relationship between TMT functional diversity and comparability is more pronounced in firms with a poor information environment. Our findings remain robust after addressing endogeneity concerns. This study contributes to the existing …

Fiscal Illusion And Property Tax Porportionality, Cathy Lynn Johnson

Dissertations of Practice

Tax Increment Financing (TIF) has become a widely utilized economic development tool, allowing municipalities to capture future increases in property tax revenue within designated redevelopment areas.

The study’s purpose was to examine how TIF districts in Illinois affect the proportional distribution of property tax burdens and the allocation of property tax revenues to public school districts. Guided by Resource Allocation Theory, Public Choice Theory, and Fiscal Illusion, the study investigated how the exclusion of incremental EAV alters tax rate calculations and redistributes tax responsibility among taxpayers both within and outside of TIF boundaries. A quantitative analytical framework was developed and …

Reassessing Argentina’S 2018 Crisis: Fiscal Imbalances, External Constraints, And Imf Policy, Michael Garcia

Honors Theses

This thesis will evaluate the causes of Argentina’s 2018 financial crisis, examining how it should be evaluated through the lens of fiscal imbalance or by external constraints. The dominant interpretation is shown in the International Monetary Fund’s (IMF) 2018 Standby Agreement. It attributed the crisis to excessive fiscal deficits, inflation, and weak monetary discipline. This perspective is supported by the Polak model. The model itself connects domestic credit expansion to balance of payment imbalances. It views external crises resulting from internal policy excess.

This paper offers an alternative interpretation of a post-Keynesian that emphasizes external vulnerability, foreign currency debt, and …

Beyond Price: How Platform Power Shapes Demand Allocation In Online Hotel Channels, Ling Ling, Timothy Webb, Zvi Schwartz

Human Movement Studies & Special Education Faculty Publications

Rate disparity remains a widely used but poorly understood pricing strategy in the hotel industry. While previous research generally assumes that lower prices shift demand toward less expensive channels, this study investigates whether such effects occur in practice. Using high-frequency booking and pricing data from five full-service hotels across multiple online travel agencies (OTAs), we analyze how rate disparity relates to the distribution of demand across channels. The findings show that the impact of price differences is limited, highly non-linear, and strongly dependent on contextual factors. Channel market power and hotel-specific characteristics seem to play a more significant role than …

Heartbeats: Sustainable Practices In Business, Natalie Pham, Shareef Awadallah, Lily Lisco, Logan Blissenbach, Nikolaos Verginis

Williams Honors College, Honors Research Projects

HeartBeats Co. LLC is a premier audio and software technology brand that brings renewed character and performance to a stagnant space, revolutionizing the listening experience by engineering a digital music platform and headphones that possess distinct style and exceptional performance. While our team identifies and tracks trends in the market, we strive to establish market trends rather than to follow them. We are a company founded on innovation, redefining the music streaming market by combining the importance of wellness with the latest audio and software technologies and innovative functionalities. This document outlines a ten-year plan for efficient and impactful scaling, …

How Does Economic Policy Uncertainty Affect Individual Contributions To Retirement Accounts?, David I. Becker

Honors Undergraduate Theses

This study tests whether Economic Policy Uncertainty (EPU) is associated with U.S. retirement contributions and whether responses differ across account types. Using annual contribution data for defined contribution plans and Traditional and Roth IRAs with the Baker, Bloom, and Davis EPU index, I estimate multivariate regressions with standard macroeconomic controls and compare contemporaneous and lagged specifications. EPU is positively associated with 401(k) contributions, negatively associated with Traditional IRA contributions in the contemporaneous model, and not statistically significant for Roth IRAs. These results suggest uncertainty may shift how households save for retirement rather than uniformly reducing retirement saving.

Stringency Of Family Firms And Owner-Managers In The Transition To Low-Carbon Emissions, Morten Bennedsen, John Doukas, Halit Gonenc

Finance Faculty Publications

This study examines the relationship between carbon emissions and stock returns, with a focus on the role of family ownership and management. Using a sample of 435 publicly listed firms from 14 Western European countries over the period 2010–2020, we explore whether financial markets perceive family-controlled firms, particularly those led by family-member CEOs, differently in terms of their commitment to sustainable practices. Consistent with prior research, our results indicate that firms with higher emissions earn higher stock returns while simultaneously experiencing lower market valuations, consistent with the presence of a carbon risk premium driven by elevated carbon transition risk. Crucially, …