Finance and Financial Management Commons^™

The Dark Side Of Ceo Inside Debt: Evidence From Stock Price Crash Risk, Amir Gholami, Ahmed M. Elnahas

Finance Faculty Publications

Despite being thought of as a governance mechanism, CEO inside debt seems to distort firms' information environment. Our results indicate that CEO inside debt alters managerial orientation and incentives in a way that increases stock price crash risk. Our results are robust after addressing endogeneity using the instrumental variable (IV) approach, a difference-in-differences test based on the implementation of Internal Revenue Code Section 409 A Final Regulations, and Oster's omitted variable diagnostic test, and selection bias using the propensity score matching (PSM) and Entropy balancing (EB) approaches. The results are stronger for firms that are poorly governed, operate in less …

Equity Fund Monthly Report, September 2025, Archway Investment Fund

Archway Investment Fund

No abstract provided.

Applying The Synergy Of Experience Accounting And Service Dominant Logic To Rank Customer Experiences In The Mainstream Cruising, Ganna Demydyuk, Mats Carlbäck

Journal of Global Hospitality and Tourism

This study analyzes how service-related experiences influence customer satisfaction and perceived value for money in the cruise industry. By integrating Service-Dominant Logic (S-D-L) and Experience Accounting (EA), it aims to support the development of customer-centric performance systems for managerial decision making in the all-inclusive hospitality sector. This is the first empirical study to merge data from three perspectives in service-for-service exchanges: customer review ratings from online platforms, ship-level operational characteristics, and financial metrics from corporate reports. This integrated approach allows for a holistic evaluation of the service ecosystem and cocreation of value onboard cruise ships. A quantitative analysis was conducted …

Regulatory Impacts On Us Hazardous Waste Exports, Xiaofan Ji, Mengyu Wang, Tianyi Zhang

Sim Kee Boon Institute for Financial Economics

This paper examines the impact of key domestic and international regulations on US hazardous waste exports, focusing on shifts in export destinations and waste types from 2002 to 2023. Since 2005, OECD countries and US Trade Agreement Partners have become primary destinations for US hazardous waste, with significant surges after 2018 and a notable decline in 2022. An analysis of the regulatory landscape reveals that, while international frameworks such as the Basel Convention of 2021 have had a relatively limited impact on reducing US hazardous waste exports, domestic policies—particularly those in California—have more directly influenced export behaviors. Additionally, the US …

Managing Rumors On Electronic Interaction Platforms: How Management Responses Affect Investor Reaction, Runyu Wang, Zili Zhang, Keng Siau, Ziqiong Zhang

Research Collection School Of Computing and Information Systems

This study investigates how listed firms respond to investors’ rumor-related inquiries and examines the impact of these responses on investor reactions, as indicated by subsequent daily abnormal stock returns (ARs). Using a unique dataset of question-and-answer (Q&A) interactions from China’s major e-interaction platforms, established by the stock exchanges, our study provides insights into regulated firm-investor communications in a structured Q&A setting. Unlike informal social media channels, these platforms enable official responses from firm representatives, typically board secretaries, under direct regulatory oversight. By analyzing rumor-related Q&A pairs with regression models and several robustness checks, we find that firms can benefit from …

Impact Of Aigc Application On E-Commerce: A Study In The Scenario Of Product Display And Recommendation, Ya Shen

Dissertations and Theses Collection (Open Access)

Artificial Intelligence Generated Content is widely expected to enhance efficiency and lower operation cost for e-commerce. This study aims to investigate on how AIGC technology would impact on the online shopping behavior and conversion rate, specifically in the scenario of product display and recommendations.

Experiment 1 is to evaluate which scenario would have better efficiency on e-commerce platforms when using AIGC. Using an A/B testing methodology, the effects of AIGC application were measured among key factors of six product display and recommendation scenario on Vipshop.com. Results show that AIGC application on model image has the greatest impact, increasing CTR by …

Do Companies’ Green Credentials Enhance Trade Credit Provisions? Global Evidence, Rashid Zaman, Nader Atawnah, Deepa Banigidadmath, Muhammad Nadeem, Jia Liu

Research outputs 2022 to 2026

We investigate the impact of corporate renewable energy (RE) adoption on suppliers’ trade credit provisions. Using a global sample of 30 countries, we establish that firms engaging in higher RE consumption secure increased trade credit. Our results remain robust to a variety of sensitivity tests and after accounting for potential endogeneity concerns using the Paris Agreement and companies switching to green energy as exogenous shocks. Our channel analysis reveals that RE take-up mitigates companies’ environmental risk (proxied by environmental violation fines, media coverage of environmental controversies, GHG emissions, and environmental policy stringency). Additional tests reveal that the relationship between RE …

Does Fintech Matter For Rigidity And Risk Aversion Among Incumbent Firms?, Kwaku Alex Gyan, Peter Galvin, Peter Adjei-Bamfo

Research outputs 2022 to 2026

Incumbent firms tend to seek less growth opportunities and are more risk-averse based on their core rigidities – premised on a behaviour of prioritising efficiency associated with improving existing processes. Recently, some firms have adopted FinTech to reduce core rigidity and advance their agility towards risk-taking. However, available research has not fully deconstructed FinTech's effect on the rigidity-risk relationship. We examine this observation among incumbent traditional financial services firms in Australia using both logit regression and fixed effect ordinary least squares. Our findings indicate that FinTech's impact on rigidity could be directional and counterproductive. While predictive FinTech (i.e., algorithmic routines …

Esg News, Future Cash Flows, And Firm Value, Francois Derrien, Philipp Krüger, Augustin Landier, Tianhao Yao

Research Collection Lee Kong Chian School Of Business

We investigate the expected consequences of negative environmental, social, and governance (ESG) news on firms' future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affects forecasts more strongly at longer horizons than other types of negative corporate news. The negative revisions of earnings forecasts following negative ESG news largely reflect expectations of lower future sales, rather than higher future costs. Quantitatively, forecast revisions can explain most of the negative impacts of ESG news on firm value. Analysts are correct to revise forecasts downward following negative ESG news.

In Crypto We Trust: A Cross-National Comparison Of Factors Affecting Trust In Cryptocurrencies, Arif Perdana, W. Eric Lee, Chu Yeong Lim, Gary Pan, Poh Sun Seow

Research Collection School Of Accountancy

Background: Trust in cryptocurrencies is a complex and evolving construct influenced by technological, economic, and social factors. Unlike traditional information systems that rely on institutional trust, cryptocurrency users often depend on underlying technology and community insights. Despite growing interest, existing research has primarily focused on narrow aspects of trust, with limited cross-national perspectives and comprehensive models.

Method: This study investigates how geographic differences impact user trust in cryptocurrencies by surveying 644 respondents from China, Germany, and the USA. Drawing on established trust formation theories, it utilizes a comprehensive model encompassing technological, economic, and social factors.

Results: Our analysis reveals multiple …

Banking On Incumbents: How Do Fintech Start-Ups Benefit From Collaborations, Theodor Florian Cojoianu, Pia Helbing, Vladimir Pazitka, Dariusz Wojcik, Beiyun Xiao

Research Collection College of Integrative Studies

We investigate whether collaborations with established incumbents bolster innovation and access to capital for FinTech start-ups. Collaborations increase patent applications and raise both short-and long-term citations. Collaborations with finance incumbents stimulate finance and technology citations and boost both short-and long-horizon venture capital fundraising. These effects persist after addressing endogeneity and conducting additional robustness tests. Theoretically, our findings test the resource based theory in the FinTech ecosystem and enrich the open innovation literature by showing that, despite power asymmetries, FinTech start-ups can sustain innovative momentum and capture innovation gains via collaborations with incumbents. Collaborations function as credible signals that confer capital …

Sistema De Costos. Ecosistemas De Emprendimientos Rurales De Chía. Sector Turístico, Luz Alejandra Riveros Sáchica, Luz Mireya Rincón Mora, Diana Karina López Carreño

Ciencias Administrativas, Económicas y Contables

Sistema de costos. Ecosistemas de emprendimientos rurales de Chía. Sector turístico subraya la importancia de los emprendedores rurales a diferentes niveles, señalando la falta de información en las bases de datos gubernamentales. Además, busca que los emprendedores reconozcan el significado de su trabajo para identificarse como tales y participar activamente en la comunidad emprendedora. En este sentido, se describe cómo este grupo social no se ha articulado, ni han establecido mecanismos de cohesión que permitan la conformación de ecosistemas sostenibles direccionados hacia un mayor desarrollo. El presente libro sugiere temáticas puntuales para capacitaciones y asesorías educativas, especialmente en aspectos económicos …

The Cost Of Capital Calculation In The Project Finance Settings, Paweł Mielcarz, Dmytro Osiichuk, Adrian Struciński

Journal of Banking and Financial Economics

The paper aims at elucidating and solving the methodological problems around the estimation of the cost of capital in the project finance settings. By convention, capital budgeting analysts evaluate project finance ventures using the free cash flow for equity (FCFE) method, whereby cash flows, including cash, whose distribution is limited by debt covenants, are discounted with the project’s cost of equity. We argue that this approach is erroneous. From the standpoint of the sponsor company, only distributable cash flows should be taken into consideration when evaluating project finance ventures. In turn, the discount rate should be equal to the weighted …

When Positive Sentiment Is Not So Positive: Textual Analytics And Bank Failures, Aparna Gupta, Cheng Lu, Majeed Simaan, Mohammed J. Zaki

Department of Accounting and Finance Faculty Scholarship and Creative Works

We examine U.S. publicly traded bank holding companies (BHCs) that failed during the 2007–2009 global financial crisis. Using consolidated data at the BHC level and 10-K filings, we investigate the determinants of bank failures during this period using nonlinear machine learning (ML). The in-sample analysis demonstrates that 90% of the failed banks can be classified during 2007–2009. In addition, our sensitivity analysis for interpretable ML shows that net tone is among the top five important features. However, the power of tone/text is less evident when we consider predictive (out-of-sample) analysis. While nonlinear ML models such as random forest and support …

The Impact Of Monetary Trend On Prices And Nominal Income In The Uk During The Covid-19 Pandemic, Sebastian Meyer

Journal of New Finance

The essay addresses the Bank of England’s (BoE) key role in explaining the development of the UK economy during the Covid-19 pandemic. Focus will be provided on the impact of changes in money growth M4 and M4x on prices and nominal income, respectively. In so doing, the reader will be equipped with some theoretical basis from a neoclassical monetarist and Keynesian point of view to understand the importance of the BoE’s decisions in the explanation of inflation and household spending along the business cycle. The policy conclusions support classical economics with monetarism.

Valuing Firms Using The Price-To-Sales Ratio: A Practical Perspective, B. Brian Lee, Haeyoung Shin, Dong-Kyoon Kim

Southwestern Business Administration Journal

The price-to-earnings (P/E) ratio is a key financial metric used to assess a firm's value by comparing its stock price to earnings. However, the P/E ratio becomes ineffective for firms with losses (Joos & Plesko, 2005). In such cases, the price-to-sales (P/S) ratio is an alternative valuation metric. However, while the P/S ratio helps compare firms with similar business models, financial leverage can distort the interpretation of the P/S ratio, potentially misleading investors. This study offers practical guidance for accounting and finance professionals on enhancing the utility of the P/S ratio by considering leverage effects. Using 147,951 firm-year observations from …

Low Beta Anomaly In Some European Emerging Markets, Tadeusz Winkler-Drews, Mateusz Mogilski

Journal of Banking and Financial Economics

The aim of the study was to identify the low beta anomaly and analyse the causes of its occurrence in five European emerging markets that were components of the MSCI Emerging Markets Europe index in the period 2010–2019. It was hypothesized that the determinants of the low beta anomaly in the analysed markets are factors from at least two of the three categories of variables. Using the Betting Against Beta model proposed by A. Frazzini and L. H. Pedersen (2014), we found that this phenomenon was not identified in three markets, but occurred in the remaining two markets, for which …

Real Earnings Management Among Industries: Does Market Competition Matter?, Michał Comporek

Journal of Banking and Financial Economics

This paper investigates real earnings management (REM) practices in public non-financial companies listed on the Warsaw Stock Exchange (WSE) from 2014 to 2023, focusing on sectoral differences and the influence of market competition. REM, defined as deviations from normal business operations aimed at manipulating reported earnings, can distort financial information and harm long-term firm value. This study contributes to the existing literature in two key ways. First, it examines variations in abnormal levels of production costs, sales, and discretionary expenditures – REM proxies based on Roychowdhury’s methodology – across sectors classified according to the WSE’s industry framework. This sectoral classification, …

[Abstract And Associated Files For] Multi-Variable Monte Carlo Simulation For Portfolio Analysis In Excel, Tom Arnold, C. Mitchell Conover, Joseph Farizo, Nancy Tran

Finance Faculty Publications

Monte Carlo (MC) simulation has several applications in finance, including risk management, valuation, and portfolio management. In this paper, we use multiple correlated Geometric Brownian motion (GBM) processes that allow for very robust portfolio analysis. In this treatment, five correlated funds make up a portfolio. MC is used to not only forecast possible future portfolio and fund outcomes, but to also evaluate the benefits and costs of a hedging strategy and to consider the effects of different correlation structures between the funds on portfolio performance. Because the programming is in Excel, the analysis is very accessible and available to analysts …

Paying The Education Debt: How Community Colleges Can Lead In Restoring Higher Education Access In U.S. Prisons, Tammy Zimmer

Instructional Leadership Abstracts

Discusses paying education debt with respect to how community colleges can lead in restoring higher education access in United States prisons.

"The question is no longer can we provide higher education in prison, it’s will we. For those of us already engaged in this work, the answer is clear. I invite you to join us."

Fixed Income Fund Report, August 2025, Archway Investment Fund

Archway Investment Fund

No abstract provided.

Equity Fund Monthly Report, August 2025, Archway Investment Fund

Archway Investment Fund

No abstract provided.

Two Essays On Firms’ Reactions To Major Events In Rival Companies, Alireza Askarzadeh

Theses and Dissertations in Business Administration

The first essay of this dissertation examines the influence of peer credit rating downgrades on firms’ financial decisions. The results show that firms respond to a rival’s downgrade by increasing excess debt capacity, excess cash holdings, excess net working capital, and the excess cash conversion cycle. They also accelerate their speed of adjustment (SOA) toward target capital structures. These adjustments are motivated by a desire to mitigate the higher costs and risks associated with financial distress and to preserve competitive advantage. Moreover, firms with more capable managers, and those operating in environments with greater market competition, higher information asymmetry, and …

Two Essays On Index-Based Risk Management In U.S. Rangeland And Livestock Production, Wajdi Belgacem

Dissertations and Doctoral Documents, University of Nebraska-Lincoln, 2023–

This dissertation investigates two distinct but complementary dimensions of risk management in United States rangeland agriculture. Essay 1 measures spatial variation in basis risk within the Pasture, Rangeland, and Forage (PRF) rainfall-index program for 176 Nebraska grid cells (1988–2023). By linking official NOAA rainfall indices with 30-m Rangeland Analysis Platform biomass estimates, we find rainfall–forage correlations that peak at 0.45 but display pronounced heterogeneity. The probability that neither insured interval triggers during an actual forage loss averages 12%, rising to nearly 30% in several Sandhills cells, whereas optimally pairing late-spring and summer intervals reduces complete misses below 10%. These results …

Two Essays On Lottery-Like Stocks, Reihaneh Haghighi Zadeh

Theses and Dissertations in Business Administration

Essay 1: Momentum and Investors' Lottery-like Preference

Previous empirical studies have consistently shown that lottery-like stocks exhibit unconditionally low average returns due to investor overreaction to extreme short-term gains. However, the results show when the momentum strategy is jointly conditioned on stocks with high maximum daily returns (MAX), high-MAX stocks yield significantly higher future returns than their low-MAX counterparts. For value-weighted portfolios, a momentum strategy applied within the high-MAX category generates an average monthly return of 2.5%, compared to only 0.25% in the low-MAX category. This return premium exceeds that of the standard momentum strategy proposed by Jegadeesh and Titman …

Social Connections And Capital Allocation In Multidivisional Firms, Tomas Jandik, Tatiana Salikhova

Finance Faculty Publications and Presentations

The inefficiency of internal capital allocation is considered one source of losses due to diversification. We use a hand-collected sample of divisional managers in S&P 500 industrial conglomerates and find that social connections among divisional managers are associated with capital allocation improvements. Segments' investments become more sensitive to segments' growth opportunities when these segments are led by better-connected managers. For connected managers, the probability of being assigned to a segment with low investment opportunities increases significantly with investment opportunities of connected segments. Firm-level connectedness is associated with higher firm values primarily in firms with high diversity in segment investment opportunities, …

The Role Of Microfinance In Improving Global Economy, Khamphou Milayome

Doctoral Dissertations (DBA)

This study investigates microfinance’s role in enhancing the global economy by examining its impact on economic growth, unemployment, and political stability. Secondary data from MIX Market and WDI were used in this study to assess these relationships. Multiple regression was conducted with EViews software to test regression models with the independent variables related to microfinance and microfinance institutions (MFIs). Using the data from South Asia and Southeast Asian countries, this study finds that microfinance significantly improves economic growth, reduces the unemployment rate, and strengthens political stability. Microeconomic variables used in the study are borrowing amounts and the cost per borrower. …

Would Order-By-Order Auctions Be Competitive?, Thomas Ernst, Chester Spatt, Jian Sun

Research Collection Lee Kong Chian School Of Business

We model two methods of executing segregated retail orders: brokers’ routing,whereby brokers allocate orders using the market maker’s overall performance, andorder-by-order auctions, where market makers bid on individual orders, a recent U.S.Securities and Exchange Commission proposal. Order-by-order auctions improve al-locative efficiency, but face a winner’s curse reducing retail investor welfare, partic-ularly when liquidity is limited. Additional market participants competing for retailorders fail to improve total efficiency and investor welfare when entrants possess in-formation superior to incumbent wholesalers. Our results hold when new entrants are less informed or the information structure differs. We also examine the cross-subsidization of brokers’ routing.

On The Origin Of Green Finance Policies, Theodor Florian Cojoianu, D. French, Andrea G. F. Hoepner, Sheenan L., Anh Vu

Research Collection College of Integrative Studies

Despite the rising number of green finance policies, the socioeconomic determinants shaping them remain largely unexamined. Drawing from the literature analysing the relationship between regulation, market development and institutional economics, we contend that green finance policy adoption is driven by both market-based and institutional factors. Using a survival analysis approach to understand the levers influencing green finance policy adoption across 188 countries from 2000 to 2019, we find that exposure to the fossil fuel industry predominantly drives the initial issuance of green finance policies. The positive effect of fossil fuel commercial financing on the adoption of green finance policies exists …

Essays On Stablecoins’ Stability, Ravi Joshi

LSU Doctoral Dissertations

In this dissertation, I present three independent essays that contribute to the literature on stablecoins, the run-on stablecoin (Terra), and the information narrative surrounding the run. The first essay offers a comprehensive overview of the stablecoin ecosystem, the structural frictions that challenge peg maintenance, and the evolving regulatory landscape governing stablecoin issuance and use. In the second essay, I investigate the collapse of the TerraUSD (UST) algorithmic stablecoin and provide evidence that the collapse mimicked a run by demonstrating liquidity shortages on centralized exchanges. I show that Terra’s arbitrage mechanism broke on May 7, 2022, and that sustained price deviations …