Finance and Financial Management Commons^™

Green Credit, Climate Risk, And Credit Risk In The Indonesian Banking Industry, Titi Dewi Warninda, Shelby Devianty Widodo

The Indonesian Capital Market Review

As the largest archipelagic country, Indonesia's industries and regions are particularly vulnerable to the impacts of climate change. This research examines the effects of green credit policy and climate risk, specifically sea level rise and precipitation, on bank credit risk. Using data from 2019 to 2023 and system GMM, the research results show that the higher the sea level rise and precipitation, the higher the credit risk. The findings of this research also indicate that a higher proportion of green credit lowers bank credit risk, and bank inefficiency strengthens the impact of green credit on credit risk. The results of …

An Examination Of The Determinants Of Audit Quality: Implications From Firms Listed In Us Stock Markets, Abdelrahman Naser Elmaria

Theses and Dissertations

The purpose of this thesis is to examine the effect of several audit determinants, namely audit tenure, non-audit to audit fees ratio, auditing firm size, and firm size, impact on audit quality. This thesis extends the existing literature on audit determinants effect on audit quality using a Generalized Linear Model, (GLM) regression with robust estimation by analyzing a sample of 446 companies from the USA in the manufacture and service sectors. This is conducted through a series of diagnostic tests to identify an appropriate regression model. Such tests include testing and checking of baseline regression models to check for multicollinearity, …

The Effects Of Financing Green And Brown Sectors: What Do Theories And Evidence Say?, Hao Liang, Maria Teresa Punzi

Research Collection Lee Kong Chian School Of Business

This paper critically examines the economic and welfare implications of financing green and brown sectors. Drawing on a comprehensive review of recent theoretical and empirical literature, we highlight that while conventional green finance—allocating capital toward environmentally friendly (“green”) sectors and away from carbon-intensive (“brown”) sectors—can promote decarbonization, it may also produce unintended externalities. In particular, it can inadvertently incentivize higher emissions from brown firms and contribute to economic disruption. Using a dynamic stochastic general equilibrium (DSGE) model, we demonstrate that lowering the cost of capital for green sectors leads to only modest reductions in emissions, whereas raising it for brown …

Can Extended Asset Pricing Factors Predict Economic Growth?, Muhammad Zaid Imran

MS Finance Research Projects/Theses

This study examines whether the RMW and CMA factors of the Fama-French five-factor model predict future GDP growth beyond the information contained in the MKT, SMB, HML and WML factors and in standard macroeconomic indicators. It extends earlier framework to the United States, Italy, Canada and United Kingdom using samples that begin between 1991 and end in 2025. The six factors are constructed from firm-level data, and future GDP growth is regressed on past factor returns at quarterly frequency with Newey–West standard errors. The original study is also replicated on its 1978-1996 United States sample. CMA does not predict growth …

Three Essays On Corporate Bond Short Selling, Climate And Credit Risks, Manisha Thapa

Theses and Dissertations (Comprehensive)

This dissertation comprises three essays investigating topics on Corporate Bond Short Selling, Climate and Credit Risks.

The first essay addresses the question: Does climate risk influence bond short selling? We address this question by studying how climate risk influences the relationship between corporate bond short selling and subsequent credit default swap (CDS) spreads. We find that future CDS spreads are strongly related to bond short selling for the high climate risk firms. In particular, our fixed effects triple difference-in-differences (DiD) regressions show that sensitivity of subsequent CDS spreads to lagged bond short selling is significantly higher for firms with high …

Beyond The Stream: Valuing Music Catalogs As An Alternative Asset Class, Amelia Jade Magay

Honors Theses and Capstones

This thesis builds a quantitative valuation framework for music catalog transactions and tests its limits systematically. The goal is not to produce a formula that perfectly prices every deal. The goal is to identify where streaming-based financial analysis is a useful underwriting tool, where it breaks down, and what categories of value investors appear to be pricing beyond publicly available streaming data.

Debt Decisions: The Effects Of Paying For College In The United States With Student Loans, Kim E. Bullington, David J. Thomas, Minghui Hou, William L. Nuckols, Dennis E. Gregory, Joshua L. Howell, Kaycee L. Bills, Amy-Leah Joaquim

Educational Leadership & Workforce Development Faculty Publications

Student loans have increasingly become a burden on individuals. This qualitative analysis explores how structural inequities and financial literacy gaps influence US student loan borrowers’ decisions to finance postsecondary education. The study highlights racial and economic disparities, examining participants’ reflections on debt aversion and systemic barriers to equitable access. We asked why participants took out federal student loans, asked about their decision processes when taking on debt, whether participants took any action to reduce accumulated debt, and if they’d made any discoveries about their decisions to take on student loan debt. After coding and a thematic analysis, five themes and …

Large Owner Expropriation Threat And Stock Option Pay's Effect On Firm Risk-­Taking Behaviors In Weak Institutions, Cuili Qian, Lipeng (Gary) Ge, Xuesong Geng, Jiatao Li, Maria Hasenhuttl

Research Collection Lee Kong Chian School Of Business

Research Question/Issue: This study investigates the impact of managerial stock option pay on firm risk-­ taking behaviors in aweak institutional context, a critical question that has been overlooked by the literature. Specifically, we build on the comparative corporate governance perspective that emphasizes the implications of large shareholders' expropriation threat in weak institutions to develop predictions about their impact on the stock option's incentive alignment effect. We further explore the boundary conditions of such a relationship.Research Findings/Insights: Based on a sample of Chinese listed firms between 2006 and 2016, we find that a high level of large shareholders' expropriation threat weakens …

When Money Moves In: The Consequences Of Housing Wealth, Darren Aiello, Jason Kotter, Gregor Schubert

Faculty Publications

We construct a novel dataset of millions of household moves over 25 years to examine how housing wealth affects purchase decisions. We find that a $1 exogenous increase in housing equity leads movers to pay a $0.06 premium on their next home, controlling for property characteristics and time-varying local prices. This behavior is driven by search frictions— wealthier households pay a premium rather than incur additional search costs. In aggregate, these decisions spill over to the broader housing market and cause upward regional price pressure. A 10% increase in equity gain among incoming movers increases local house price growth by …

When Money Moves In: The Consequences Of Housing Wealth, Darren Aiello, Jason Kotter, Gregor Schubert

Faculty Publications

We construct a novel dataset of millions of household moves over 25 years to examine how housing wealth affects purchase decisions. We find that a $1 exogenous increase in housing equity leads movers to pay a $0.06 premium on their next home, controlling for property characteristics and time-varying local prices. This behavior is driven by search frictions— wealthier households pay a premium rather than incur additional search costs. In aggregate, these decisions spill over to the broader housing market and cause upward regional price pressure. A 10% increase in equity gain among incoming movers increases local house price growth by …

Gambling Away Stability: Sports Betting’S Impact On Vulnerable H, Scott R. Baker, Justin Balthrop, Mark J. Johnson, Jason Kotter, Kevin Pisciotta

Faculty Publications

We estimate the causal effect of online sports betting on households’ investment, spending, and debt management decisions using household transaction data and a staggered difference-in-differences framework. Following legalization, sports betting spreads quickly, with both the number of participants and frequency of bets increasing over time. This increase does not displace other gambling or consumption but significantly reduces savings, as risky bets crowd out positive expected value investments. These effects concentrate among frequent bettors and low-savings households. Our findings highlight the potential adverse effects of online sports betting on vulnerable households.

Bitcoin Halving: How Effective Is It In Driving Cryptocurrency Market Dynamics?, Nyoman Sri Subawa, Caren Angellina Mimaki, I. Made Oka Mahendra, Made Srinitha Millinia Utami

Research outputs 2022 to 2026

Bitcoin halving is a quadrennial event that halves mining rewards and is believed to influence cryptocurrency prices and cryptocurrency market dynamics. This study examines the effect of Bitcoin halving on Cryptocurrency Prices, with Government Regulations, Market Sentiment, and Cryptocurrency Performance as mediating variables. A quantitative research approach was employed, gathering original data via survey instruments from 294 participants within the cryptocurrency community in Bali, which were analyzed using PLS-SEM. The findings indicate that Bitcoin halving exerts a favorable and statistically meaningful influence on Government Regulations, Market Sentiment, Cryptocurrency Performance, and Cryptocurrency Prices. Market Sentiment fully mediates the influence of Government …

Crisis, Credit Risk, And Productivity: Lessons From The Vietnamese Banking Sector During Covid-19, Van Nguyen, Phuong Thanh Le, Reza Kiani Mavi, Amir Arjomandi

Research outputs 2022 to 2026

This study investigates how an unprecedented systemic shock, the COVID-19 pandemic, reshaped bank productivity and intermediation efficiency in Vietnam, one of the fastest-growing emerging economies. We develop a novel risk-adjusted total factor productivity (TFP) measure based on the by-production Luenberger–Hicks–Moorsteen (LHM) indicator, which incorporates non-performing loans as undesirable outputs to better capture credit-risk dynamics. Using a balanced panel covering both the pre-pandemic and pandemic periods (2016–2022), our results show that Vietnamese banks experienced a general decline in productivity before and during COVID-19, driven largely by reductions in technical and scale efficiency. However, foreign and state-owned banks recorded stronger technological progress …

Information-Processing Gap And Insider Trading Profitability: Evidence From The Xbrl Mandate, Yuyun Huang, Jerry T. Parwada, Yuan George Shan, Joey W. Yang

Research outputs 2022 to 2026

The information processing costs faced by external investors may provide corporate insiders with a comparative advantage. We examine how the phased introduction of the eXtensible Business Reporting Language (XBRL) mandate, designed to lower investors' costs of processing public disclosures, affects insiders’ trading profitability. We find that opportunistic insider sales, but not purchases, become significantly less profitable following the first wave of mandatory XBRL adoption. This decline is consistent with a reduced number of insider sales preceding 10-K filings that convey unfavorable news, as well as with a general fall in insider trading activity and profitability across all three mandate waves. …