Finance and Financial Management Commons^™

Solving A Hybrid Batch Production Problem With Unreliable Equipment And Quality Reassurance, Singa Wang Chiu, Hua Yao Wu, Tsu Ming Yeh, Yunsen Wang

Department of Accounting and Finance Faculty Scholarship and Creative Works

A hybrid batch fabrication plan involving an outsourcing option is often established to deal with the in-house capacity constraint and/or meet timely demand with a reduced cycle time. Besides, the occurrences of unpredictable equipment malfunction and imperfect product quality should also be effectively managed during in-house fabrication to meet the production schedule and the required quality level. To address these concerns, we examine a hybrid economic production quantity (EPQ) problem with an unreliable machine and quality reassurance; wherein, an outside provider helps supply a portion of the batch at a requested timing and desirable quality, but at the price of …

The Influence Of Expedited Fabrication Rate, Unreliable Machines, Scrap, And Rework On The Production Runtime Decision In A Vendor-Buyer Coordinated Environment, Yuan Shyi Peter Chiu, Yunsen Wang, Tiffany Chiu, Peng Cheng Sung

Department of Accounting and Finance Faculty Scholarship and Creative Works

Transnational manufacturing firms operate in highly competitive marketplaces. This means that they are continuously seeking ways to reduce order response and fabrication cycle times, maintain the desired product quality, manage unanticipated machine failures, and provide timely delivery to effectively minimize overall operating cost and maintain a competitive advantage over their intra-supply chains. To assist firms in achieving these operational goals, we examine a buyer-vendor coordinated system with an expedited fabrication rate, unreliable machines, scrap, and rework, with the objective of minimizing the overall operating costs. An imperfect manufacturing process is assumed, which arbitrarily produces repairable and scrap items, with the …

Ambiguity Aversion And Experiential Learning: Implications For Long-Term Savings Decisions, Bryan Foltice, Rachel Rogers

Scholarship and Professional Work - Business

This paper evaluates potential methods for reducing ambiguity surrounding returns on equity to improve long-term savings decisions. We evaluate 221 undergraduate students in the U.S. and first assess the degree of ambiguity aversion exhibited by individuals in the sample population as they decide between a risky (known probability) option and ambiguous (unknown probability) option pertaining to their chances of winning $0 or $1 in a hypothetical lottery. Allowing participants to experience the underlying probability through sampling significantly influences behavior, as participants were more likely to select the ambiguous option after sampling. Similarly, we test whether sampling historical return data through …

What Is The Effect Of The Cares Act On Public Companies’ Pension Plan Contributions?, Kyle Joseph Norman

Honors Theses and Capstones

No abstract provided.

Pcaob Inspection Reports And Perceived Audit Quality, Coleman Michael Russell

Honors Theses and Capstones

No abstract provided.

Weather Effects On Stock Market Returns In The United States, Maria Virginia Chandra

Honors Theses and Capstones

This study examined the correlation and impact of weather changes and average monthly temperature in the United States on the returns of the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ). Data collection includes average monthly temperature from four regions in the United States: Eastern, Central, Southern, and Western, excluding Alaska and Hawaii from the period of 2010 - 2020. Average monthly returns from the year 2010 – 2020 will also be used, which were collected from two stock exchanges in the United States: the New York Stock Exchange (NYSE) and the National …

Do Covid-19 Cases And Government Response To Covid-19 Drive Mispricing In Cross-Listed Companies?, Chomtarn Junanukul

Chulalongkorn University Theses and Dissertations (Chula ETD)

This research is to examine impact of COVID-19 cases and government response to COVID-19 to cross-listed companies’ stock return, mispricing and volatility of the mispricing, using evidence from 164 Canadian companies’ stocks listed on Toronto Stock Exchange (TSX shares) and cross-listed in New York Stock Exchange or NASDAQ (US shares). Our results show that there is negative impact from growth of COVID-19 cases to stock return and positive impact from government response to COVID-19 to stock return in both Canada and US. As for impact to mispricing, using price premium of stock listed in Canada relative to US as a …

A New Explanation For Samuelson’S Dictum And The Stock Market: Novel Events And Knightian Uncertainty, Nicholas Mangee

Finance: Faculty Publications

Samuelson’s Dictum argues that aggregate stock markets do not convincingly reflect information on fundamentals, such as dividends or earnings, and are, thus, inefficient in setting prices. By contrast, firm-level stock prices share a much closer connection with fundamentals and are, therefore, deemed relatively efficient. This paper presents an alternative explanation: Knightian uncertainty stemming from historically unique events produces differential impacts on investor forecasting bounds at the aggregate versus firm level. Several uncertainty proxies are employed from millions of unscheduled events identified in the universe of Dow Jones & Co. financial news reports over the last twenty years. Uncertainty based on …

Visual Presentation Of Mirr And Mnpv Calculations, Tom Arnold, Joseph Farizo

Finance Faculty Publications

Project cash flows and modified cash flows are presented in an illustrative graphic within Excel for the live or virtual classroom. Further, the graphic computes and displays the relevant modified internal rate of return (MIRR) and modified net present value (MNPV), with associated formulas. The presentation allows for a discussion of the reinvestment assumption attributed to the internal rate of return (IRR) and the net present value (NPV) calculations.

Bending The Investment Advisers Act's Regulatory Arc, Joseph A. Franco

Fordham Journal of Corporate & Financial Law

The Investment Advisers Act of 1940 (“IAA”) and its regulatory purview have changed dramatically over the life of the statute. The statute began as a simple registration scheme with barebones conduct integrity prohibitions for wealth managers and purveyors of investment newsletters. Although the statute’s original minimalist cast was deficient, the IAA’s regulatory scope has undergone a fundamental transformation, both in terms of the expanding class of advisers covered by the statute’s substantive provisions and the statute’s expansive structural integrity requirements. Over a span of decades, the IAA’s focus has been reoriented so that it is directed at least as much, …

Corporate Innovation In A World Of Common Ownership, Cheng-Huei Chiao, Bin Qiu, Bin Wang

Finance Faculty Research and Publications

Purpose

The purpose of this paper is to examine the impact of common ownership on corporate innovation, including innovation input, innovation output and postgrant patents.

Design/methodology/approach

This paper uses the ordinary least square model and the difference-in-differences technique to evaluate the effect of institutional interlocking shareholdings on the life cycle of corporate innovation.

Findings

The results show that common ownership impedes innovation measured by patent grants and citations through reduced R&D expenditures. However, common ownership protects postgrant patents by lowering the likelihood that a co-owned firm gets involved in patent litigation and by accelerating the settlement of lawsuits between co-owned …

Performance Measurements On Concession Periods To Forecast Water Infrastructure Investment Returns, Reyneck Buthani Magudu Khoza

Walden Dissertations and Doctoral Studies

Public-private-partnership stakeholders in South Africa are inconsistent in applying performance measurements to optimize concession period agreements for water infrastructure development and drive infrastructure financial value at postconcession termination. The purpose of this qualitative e-Delphi study was to assess consensus among 17 public-private-partnership experts on the best practice within the South African context for using performance measurements to optimize concession period agreements for water infrastructure development and drive infrastructure financial value at postconcession termination. The research question pertained to their level of consensus. Determination and analysis of the concession period conceptual model that illustrates how to achieve benefits of the concession …

Strategies For Mitigating Voluntary Employee Turnover In Small Businesses, Eric Regneco Gant

Walden Dissertations and Doctoral Studies

AbstractVoluntary employee turnover costs businesses significant resources in training and recruitment. An employee’s voluntary turnover could cost small business owners $3,000 to $10,000 in training and recruitment costs and reduce company performance, profitability, and competitive advantage. Grounded in Vroom’s expectancy theory of motivation, the purpose of this multiple case study was to explore strategies that owners of small businesses in the eastern United States use to mitigate voluntary employee turnover. Data were collected from semistructured telephone interviews with five small business owners with at least three years of experience mitigating voluntary employee turnover. Data were analyzed using Yin’s five-step approach. …

Crummer Suntrust Portfolio Recommendations: Crummer Investment Management [2021], Ryan Abronski, Louis Charpentier, Hannah Johnson, David Baldock, Austin Hieb, Luiggi Reno, Shawn Hudson, Eric Necamp, Brandon Carlin, Jackson Pliska, Jacob Carroll

Crummer Truist Portfolios

SunTrust endowed this portfolio to provide scholarships for future Crummer students and to give current students a practical, hands-on learning opportunity. This year, we are pleased to be able to award $50,000 in scholarships. We are extremely grateful for SunTrust’s generosity and investment in higher education. We have all learned a great deal from this experience and the responsibility of managing real money.

Our first challenge is to establish a portfolio position that takes advantage of economic opportunities while avoiding unnecessary risk and conforming to the Crummer SunTrust Investment Policy Statement (IPS). We are also tasked by the IPS to …

Specialization And Institutional Investors’ Performance – Evidence From Publicly Traded Real Estate, Eli Beracha, George D. Cashman, Hilla Skiba

Finance Faculty Research and Publications

We examine the extent to which 50,620 global institutional investors’ specialization in publicly traded real estate securities is related to their investment performance. Consistent with the information advantage theory (Merton Journal of Finance 42, 483–510, 1987; Van Nieuwerburgh and Veldkamp Journal of Finance, 64, 1187–1215, 2009), we show a positive relation between the percentage of the institution’s portfolio invested in real estate securities and the return generated on those securities. Moreover, we present evidence that the institution’s level of active share to real estate securities is positively related to performance. Additionally, we find that the benefits related to …

Tracking School-To-Work Transition Among The Youth In The Philippines, Futoshi Yamauchi, Marites Tiongco

DLSU Business & Economics Review

This paper examines wage variations and turnovers using a unique tracking survey data of Filipino youth who were initially sampled at Grade 6. The analysis also uses mathematics and English test scores at Grade 6 to proxy for cognitive abilities. The empirical results show that returns to education and ability increase with labor market experience and occupational upgrading. The study highlights the importance of academic achievements, measured by both years of schooling completed and academic test scores, in upgrading occupations of youth to realize higher returns in the labor market, even though many youths often start with irregular and undesirable …

Effects Of Advance Refunding Municipal Bonds After The U.S. Tax Cuts And Jobs Act, Sarah Curry

Doctor of Business Administration Dissertations

The process when U.S. municipalities retire callable bonds early and refinance them with bonds of a lower coupon rate is called advance refunding. The advance refunding of debt is a widespread practice in municipal finance; however, the Tax Cuts and Jobs Act of 2017 removed the option to keep this debt tax-exempt and now requires municipalities to convert from tax-exempt to taxable. The purpose of this research was to evaluate the impact eliminating advance refunding of municipal debt into tax-exempt status has on the municipality’s advance refunding decision making process, specifically at the state level. Municipal governments are still …

Relationship Between Working Capital Management, Strategies, And Performance Of Nigerian Manufacturing Firms, Ayebainasuoton Francis Alagoa

Walden Dissertations and Doctoral Studies

Many Nigerian manufacturing firms have faced working capital management anomalies due to concerns of balancing profitability and liquidity that led to most business failures. To remain competitive corporate managers and business leaders of manufacturing firms need to operate optimally in working capital by understanding the association between working capital management (WCM), working capital strategy (WCS), and performance. Using the cash conversion cycle theory as the linchpin, the purpose of this quantitative correlational study was to examine the relationship between WCM, WCS, and performance. The study utilized secondary financial data spanning 2014 to 2018 from a random sample of 54 publicly …

Retrospective And Forecasting Analysis Of Increased Long Term Care Demand In Niagara, Breanne Alissa Hines

Walden Dissertations and Doctoral Studies

A problem exists within the Canadian healthcare system as many patients experience longer lengths of stay (LOS) in acute care (AC) and complex care (CC) beds within hospitals because of a lack of long term care (LTC) facilities. The purpose of this study was to evaluate the extra days patients wait for placement and assess the benefits of increasing the number of LTC beds. The theoretical framework used was the four-level model of the health care system. Research questions involved 2017-2019 data for the number of LTC beds required to eliminate waits and evaluate beds needed in the future. This …

Small And Medium Scale Firms Financing Strategies In Nigeria, Anthony Ogochukwu Chukwu

Walden Dissertations and Doctoral Studies

Past studies highlighted that small and medium scale enterprises contributions to nations’ economy have been minimal due to their inability to access the sufficient funds for their operations. The challenge is that small business owners lack the right strategies to raise finances required for business operations. The purpose of this study was to explore the lived experiences of small and medium scale enterprise owners in raising of finances from lending institutions. The conceptual framework emphasized the concepts of business environment, financing institutions, knowledge, and experience of small business owners as related to small and medium scale enterprise funding. The research …

Asymmetry Risk And Asset Pricing, Jiahao Gu

Graduate Theses, Dissertations, and Problem Reports (ETD)

The dissertation primarily focuses on asymmetry risk and its role in asset pricing. Asymmetry risk is a crucial component of systematic risk. However, it does not attract much attention, probably because of the misconception that it is similar to other asymmetry measures (e.g., skewness). Chapter 1 defines the asymmetry risk. The risk indifference curve (RIC) predicts two asymmetry premiums in the return distribution rather than one in the downside. I also derive the risk-neutral measure of asymmetry risk.

Chapter 2 empirically investigates the asymmetry beta's return predictability and tail risk hedging ability. Consistent with the risk indifference curve, the asymmetry …

Short-Term Capital Flows, Exchange Are Expectation And Currency Internationalization: Evidence From China, Mingming Li, Fengming Qin, Zhaoyong Zhang

Research outputs 2014 to 2021

This paper intended to employ a portfolio approach to assess the effect of exchange rate expectation on Chinese RMB internationalization and empirically test the interactive effects among short-term capital flows, RMB appreciation expectation and the internationalization process using a VAR model with monthly data ranging from February 2004 to December 2020. The results suggest that RMB exchange rate appreciation could lead to an increase in the foreign demand for RMB and RMB denominated assets, while RMB internationalization would attract more short-term capital inflow due to the reduced transaction costs. The empirical evidence from the VAR model estimation confirms the finding …

Honors Research Project Goodyear Business Suggestion, Drew Hodgson, Seth Gwirtz, Isabel Hartzler, Heather Kriston, Savannah Novak

Williams Honors College, Honors Research Projects

Our project takes on the task of evaluating the current market of the tire industry in todays pandemic. We are taking our findings to the local company Goodyear, and supplying suggestions to their firm in order to help their bottom line going forward. At the end of this, we will propose to Goodyear a solution within their firm on whether to pivot, expand, or downsize their current operations.

Less Commute Miles. Decreased Tire Wear. What Would You Do?, Dylan Schwarz, Brendon M. Ford, Brandon D. Hadinger, Abbie N. Pearce, Jacinta M. Pikunas

Williams Honors College, Honors Research Projects

With the flagrant recognition of the coronavirus as one of those most impactful viruses in the history of the world, it is important to study how the effects of such a disease can create troublesome ripple effects in the world. Covid-19 has caused the death of hundreds of thousands of individuals and has negatively impacted the lives of American’s all across the country during the nationwide lockdown. Decreased work commuters, minimal road travel, and little need for car repairs hit the Goodyear Tire and Rubber Company hard. The University of Akron has teamed up with Goodyear to explore such effects …

Organizational And Financial Considerations Of Inter-District School Of Choice On One Small District In The Detroit Metropolitan Area, Lori Lucas

Wayne State University Dissertations

The research study investigated the organizational and financial structure of a school district that participated in inter-district school of choice. The goal was to see if choice, resident and non-resident, had any influence on these structures. The literature that I reviewed highlighted the various organizational and funding mechanisms that school districts need to account for when considering options such as school of choice. This research study was conducted on a smaller scale compared to studies that have been completed on a grander scale. The goal of this study was to review the organizational and financial changes that districts make to …

Uncovering Real Earnings Management: Pay Attention To Risk-Taking Behavior, Samar Alharbi, Md Al Mamun, Nader Atawnah

Research outputs 2014 to 2021

We examine the impact of corporate risk-taking on firm-level real earnings management. We find that firms with higher risk-taking engage in higher real earnings management. Our results are robust to a series of robustness tests, including simultaneous least squares approach, firm fixed effect, change analysis, and pseudo difference-in-difference analysis. Additional analyses reveal that the impact of risk-taking on real earnings management is more pronounced among firms that experience prior-year loss and are run by top-echelons who are risk lovers. Sarbanes-Oxley Act (SOX) regulation does not attenuate the positive effect of risk-taking on real earnings management. However, external monitoring by institutional …

Mapping The Knowledge Of Islamic Accounting Studies On Shariah Audit: A Bibliometric Analysis, Luqman Hakim Handoko, Sepky Mardian

Library Philosophy and Practice (e-journal)

The issues of shariah audit appeared more than three decades ago along with the progress of the Islamic financial industries. But it is challenging to obtain a study explaining the current state of shariah audit research to date. Therefore, it is necessary to assess the research on the Shariah audit. Thus, this study aimed to analyze and visualize the current state of shariah audit using a bibliometric approach. The bibliometric analysis was conducted by using VOSviewer software. To fulfill this goal, the keywords such as shariah audit, shariah auditing, and its variations were searched from the Scopus database. The articles …

Are Monthly Market Returns Predictable?, Jussi Keppo, Tyler Shumway, Daniel Weagley

Faculty Publications

We document significant persistence in the market timing performance of active individual investors, suggesting that some investors are skilled at timing. Using data on all trades by active Finnish individual investors over almost 15 years, we also show that the net purchases of skilled versus unskilled investors predict monthly market returns. Our results lend credibility to the view that market returns are predictable, without having to specify which variables active investors use to successfully time the market.

Portfolio Construction Under Group Risk Parity Strategy In The Stock Exchange Of Thailand, Warintorn Sornpradit

Chulalongkorn University Theses and Dissertations (Chula ETD)

Risk parity strategy has been commonly applied to construct a portfolio with multiple asset classes. For single asset class, group risk parity is introduced such that risks from each group are equally contributed. This study investigates and compares performances of group risk parity strategy in Thai market under two different grouping methods which are sector and size with non-group risk parity, minimum-variance, and equal-weight strategies. The study mainly focus on two periods which are during 2016-2020 and in years with highly volatile down market. The analysis indicates that there is no clear evidence that group risk parity strategy outperforms others …

Deterring Algorithmic Manipulation, Gina-Gail S. Fletcher

Faculty Scholarship

Does the existing anti-manipulation framework effectively deter algorithmic manipulation? With the dual increase of algorithmic trading and the occurrence of “mini-flash crashes” in the market linked to manipulation, this question has become more pressing in recent years. In the past thirty years, the financial markets have undergone a sea change as technological advancements and innovations have fundamentally altered the structure and operation of the markets. Key to this change is the introduction and dominance of trading algorithms. Whereas initial algorithmic trading relied on preset electronic instructions to execute trading strategies, new technology is introducing artificially intelligent (“AI”) trading algorithms that …