Finance and Financial Management Commons^™

Competition And Concentration In Banking Sector: Evidence From Bangladesh, Junnatun Naym

2018 Awards for Excellence in Student Research and Creative Activity – Documents

Abstract

Considering the significance of competition and concentration in pricing, efficiency, productivity and stability of banking sector, this paper has explored the competitive behavior and concentration level in the banking sector of Bangladesh considering 20 commercial banks for the period of 2004-2013. The level of competition has been tested using the Panzar and Rosse model while the level of concentration has been analyzed using concentration indices and the Herfindahl-Hirschman indices in terms of assets, loans, and deposits. The findings point to a non-concentrated market with monopolistic competition in the banking sector of Bangladesh. This paper contributes to the understanding of …

The Impact Of Real Interest Rate On Real Exchange Rate: Empirical Evidence From Japan, Tomiwa Shodipe

2018 Awards for Excellence in Student Research and Creative Activity – Documents

Abstract

This paper examines the impact of real interest rate on the real exchange rate in Japan using Two Stage Least Square econometric techniques. The two instruments used are money supply and gross domestic product growth rates. The result provides support for the theoretical and empirical evidences of positive relationship between real interest rate and real exchange rate in Japan. The estimation also shows that there is positive relation between trade and Japanese Yen over the period considered in the study. In light of these findings, the study suggests the adoption of fiscal macroeconomic policy instruments that are capable of …

Glossary Of Business Evidence, Paul C. Boyd

MBA Faculty Conference Papers & Journal Articles

No abstract provided.

Are We There Yet, Impact Investing?, Manqi Shi

Independent Study Project (ISP) Collection

Impact investing has been an evolving field for the past ten years. More and more institutional investors are looking to change their investment approaches to impact investing. Academics, institutions, and international organizations are creating reports and publishing research on the impact investing field, tracking its growing progress. Without any incidents thus far, impact investing is an industry that is about to burst. A retrospective and internal analysis of the field is needed in order to grow at a better and faster pace. This paper is attempting to fill a hole in the information about impact investing. It provides a comprehensive …

Financial Literacy: Impact On Student Success, Alexandra Cummingham

Honors Projects in Accounting

Financial literacy has proven to be an essential skill for young adults to help in achieving success and reaching one’s potential. Many studies find that those with a stronger background in financial literacy are more likely to demonstrate positive behaviors, both financially and in other areas. This study will attempt to draw a link between Bryant University students’ background in financial literacy and benefits within the college classroom. Specifically, my study will look at whether having a stronger background in financial literacy leads to increased confidence in the classroom, decreased accounting anxiety, and superior academic performance. The study uses primary …

Can Students Studying Abroad Use Forward Exchange Rates As A Tool For Better Budgeting Their Semesters?, Emalee Dunbar

Honors Projects in Finance

Traveling abroad requires an immense amount of planning and attention to detail. Budgeting is a difficult task in one’s own country, but when planning across borders, that task becomes even greater. Differences in exchange rates and buying power have the potential to adversely affect the budget set ahead of time, placing more stress on the traveler. Financial tools available in the foreign exchange market, if used strategically, may provide a reliable method to budgeting travel abroad as accurately as possible. There are many individuals, students especially, that plan on traveling or studying abroad yet are on tight budgets. Having a …

Industry Tournament Incentives, Zhichuan Li

Business Publications

We empirically assess industry tournament incentives for CEOs, as measured by the compensation gap between a CEO at one firm and the highest-paid CEO among similar (industry, size) firms. We find that firm performance, firm risk, and the riskiness of firm investment and financial policies are positively associated with the external industry pay gap. The industry tournament effects are stronger when industry, firm, and executive characteristics indicate high CEO mobility and a higher probability of the aspirant executive winning.

Ethics And Effectiveness Of Microloans For Women In Developing Countries, Elizabeth Erika Killion 18

Honor Scholar Theses

No abstract provided.

Executive Summary_Financing Climate Resilience: Mobilizing Resources And Incentives To Protect Boston From Climate Risks, David L. Levy, Rebecca Herst

Sustainable Solutions Lab

This report explores the challenges of financing climate-resilience investments in the Boston region. As risks from storm surge, sea level rise, and extreme weather increase, there is growing urgency for pre-disaster investments to reduce physical risk, reduce social vulnerability, and increase capacity for emergency response and disaster recovery. However, these investments face significant barriers, including market failures, capital budget constraints, and misaligned incentives. The report identifies a range of funding mechanisms appropriate at different scales, including general obligation bonds, resilience fees, property tax surcharges, stormwater fees, tax increment financing, business improvement districts, and insurance-based funding. It evaluates these mechanisms using …

17 Days: Cross-Country With Social Media, Zachary Alvarado

Senior Theses

"Austin Prescott and Zach Alvarado travel from South Carolina to California using social media to find and communicate with hosts throughout the country..."

https://www.youtube.com/watch?v=V8k6EQnW5D4

Costs of investment were weighed against capital contributions throughout our campaign. While the film serves to inspire, entertain, and inform, the paper dives deeper into the brand-building, cost-savings, and logistics of the trip. In the end, we more than doubled our initial investment and had an awesome time while doing it.

Financial Literacy In South Carolina, Connor Pestovich, Matthew Travis

Senior Theses

Being wise with finances is a skill that many people tend to overlook as important. There are days when an individual can avoid using certain subjects learned in high school, but very rarely, if ever, is there a day when topics of finance are not used. This could be anything from purchasing food, driving to work, working on a computer, or receiving a paycheck. While most would agree that the ability to handle money wisely is very important, these concepts do not have a high priority of being taught in high schools in South Carolina. More than that, many parents …

The Propensity To Split And Ceo Compensation, Erik Devos, William B. Elliott, Richard S. Warr

2018 Faculty Bibliography

We analyze the relation between the delta and vega of a chief executive officer’s (CEO) compensation and the propensity of the firm to engage in a split. Controlling for other well-known factors, we find that CEOs with compensation that has higher levels of delta are more likely to split their shares. Furthermore, the choice of split factor is inversely related to delta. Our results are economically significant: for the average (median) firm in our sample, a stock split results in a CEO wealth gain of $4.9 million ($84,000).

Director Networks And Credit Ratings, Bradley W. Benson, Subramanian R. Iyer, Kristopher Kemper, Jing Zhao

Business Faculty Publications and Presentations

We explore the effect of director social capital, directors with large and influential networks, on credit ratings. Using a sample of 11,172 firm‐year observations from 1999 to 2011, we find that larger board networks are associated with higher credit ratings than both firm financial data and probabilities of default predict. Near‐investment grade firms improve their forward‐looking ratings when their board is more connected. Last, we find that larger director networks are more beneficial during recessions, and times of increased financial uncertainty. Our results are robust to controls for endogeneity. Tests confirm that causality runs from connected boards to credit ratings.

Uni Finance Newsletter, N01, Spring 2018, University Of Northern Iowa. Department Of Finance.

Department of Finance Newsletter

News about the activities of the Department of Finance

Strategies For Trading Volatility Using Options, Alyssa Hebert

Honors Capstones

No abstract provided.

Financing Climate Resilience: Mobilizing Resources And Incentives To Protect Boston From Climate Risks, David L. Levy, Rebecca Herst

Sustainable Solutions Lab

This report explores the challenges of financing climate-resilience investments in the Boston region. As risks from storm surge, sea level rise, and extreme weather increase, there is growing urgency for pre-disaster investments to reduce physical risk, reduce social vulnerability, and increase capacity for emergency response and disaster recovery. However, these investments face significant barriers, including market failures, capital budget constraints, and misaligned incentives. The report identifies a range of funding mechanisms appropriate at different scales, including general obligation bonds, resilience fees, property tax surcharges, stormwater fees, tax increment financing, business improvement districts, and insurance-based funding. It evaluates these mechanisms using …

The Path To Mainstream Finance: Exploring Complementary Currencies And Interest-Free Lending, Ema Di Fruscia

Independent Study Project (ISP) Collection

This paper explores elements of alternative finance including complementary currencies, credit clearing systems, and Islamic Banking practices. I begin first by outlining the issues created by the mainstream western banking model, including wealth inequality, socioeconomic discrimination, environmental degradation, and the collapse of small businesses and local economies. I go on to introduce and define the concepts of complementary currencies, Local Exchange Trading Systems, and credit clearing systems; I argue that these systems challenge the popularly held perceptions that currencies and mainstream banking practices in general are immutable, given, or ideal. To support this assertion, I transition into my research findings …

A Comparison Of Machine Learning Algorithms For Prediction Of Past Due Service In Commercial Credit, Liyuan Liu M.A, M.S., Jennifer Lewis Priestley Ph.D.

Published and Grey Literature from PhD Candidates

Credit risk modeling has carried a variety of research interest in previous literature, and recent studies have shown that machine learning methods achieved better performance than conventional statistical ones. This study applies decision tree which is a robust advanced credit risk model to predict the commercial non-financial past-due problem with better critical power and accuracy. In addition, we examine the performance with logistic regression analysis, decision trees, and neural networks. The experimenting results confirm that decision trees improve upon other methods. Also, we find some interesting factors that impact the commercials’ non-financial past-due payment.

Inflation Expectations In Singapore: A Behavioural Approach, Alexander Clark, Aurobindo Ghosh, Samuel Hanes

Research Collection Lee Kong Chian School Of Business

The expectations of economic agents have significant impact on their decisions and are key determinants of macroeconomic outcomes such as inflation, economic growth and unemployment. For example, if a worker believes that consumer prices will rise sharply next year, she would demand a wage increase. Similarly, a homeowner with a fixed interest mortgage might make an early repayment if she expects price levels to fall, knowing that the real value of her mortgage debt will increase. In these cases, expectations about inflation could lead to changes in behaviour and in the aggregate, influence prices and become self-fulfilling.

Quantitative Easing Auctions Of Treasury Bonds, Zhaogang Song, Haoxiang Zhu

Research Collection Lee Kong Chian School Of Business

The Federal Reserve uses (reverse) auctions to implement its purchases of Treasury bonds in quantitative easing (QE). To evaluate dealers’ offers across multiple bonds, the Fed relies on its internal yield curve model, fitted to secondary market bond prices. From November 2010 to September 2011, a one standard deviation increase in the cheapness of a Treasury bond (how much the market price of the bond is below a model-implied value) increases the Fed’s purchase quantity of that bond by 276 million and increases the auction costs on that bond by 2.6 cents per $100 par value, controlling for standard covariates. …

Short Covering Trades, Ekkehart Boehmer, Truong X. Duong, Zsuzsa R. Huszar

Research Collection Lee Kong Chian School Of Business

Short sellers are known to have private information about security prices. Empirical evidence of short selling, however, is based on only half of short sellers’ trading activity; specifically, the opening of the position. Using disclosed large short position data from the Japanese stock market, we provide the first detailed evidence of covering trades and find a positive reaction to short covering that only partially reverses. While these results are consistent with substantial transaction costs for closing large short positions, they also reveal that some short sellers are privately informed about positive future events and have timing ability in covering positions.

Pricing Asian Options: Volatility Forecasting As A Source Of Downside Risk, Adam T. Diehl

Undergraduate Economic Review

Asian options are a class of derivative securities whose payoffs average movements in the underlying asset as a means of hedging exposure to unexpected market behavior. We find that despite their volatility smoothing properties, the price of an Asian option is sensitive to the choice of volatility model employed to price them from market data. We estimate the errors induced by two common schemes of forecasting volatility and their potential impact upon trading.

2018 Private Capital Markets Report, Craig R. Everett

Pepperdine Private Capital Markets Report

The Pepperdine private cost of capital survey was originally launched in 2007 and is the first comprehensive and simultaneous investigation of the major private capital market segments. This year’s survey specifically examined the behavior of senior lenders, asset‐based lenders, mezzanine funds, private equity groups, venture capital firms, angel investors, privately‐held businesses, investment bankers, business brokers, limited partners, and business appraisers. The Pepperdine survey investigated, for each private capital market segment, the important benchmarks that must be met in order to qualify for capital, how much capital is typically accessible, what the required returns are for extending capital in today’s economic …

Analysis Of Influences Of Separation Decisions In The Financial Management Career Field, Shauna Young

Theses and Dissertations

The purpose of this research was to analyze influences on separation decisions of active duty Air Force financial management officers. Researchers tested nine variables to determine their separation implications. The tested variables were major command, age, prior enlisted service, spouse, commissioning source, AFIT cost analysis master’s degrees, engagement, crystallization of job alternatives, and exhaustion. Results proved that age, prior enlisted service, having a spouse, and being an Air Force Academy or AFIT graduate correlates to whether a financial management officer will separate from the Air Force. In addition, the engagement level or having a defined list of job alternatives readily …

Base Erosion And Profit Shifting (Beps) And The Digital Economy: Challenges And Issues, Marianne Ojo, James A. Digabriele

Department of Accounting and Finance Faculty Scholarship and Creative Works

The digital economy, undoubtedly, has contributed to the immense task of clearly identifying, ascertaining, and accounting for sources, rationales, and audit trails relating to tax transactions. This is not only evident owing to difficulties associated with cross-border transaction regulations which govern different jurisdictions as well as the enforcement of such regulations, but also in respect of risks associated with the present global financial environment - all having generated from the rise in automation, increased and improved sophisticated technologies, globalization, and conglomeration. This chapter not only seeks to highlight the extent, contribution, and significance of the digital economy in respect of …

Transformational Leadership And Supply Chain Ambidexterity: Mediating Role Of Supply Chain Organizational Learning And Moderating Role Of Uncertainty, Divesh Ojha, Chandan Acharya, Danielle Cooper

Publications and Research

This paper examines the impact of top management transformational leadership on supply chain organizational learning and supply chain ambidexterity. We also evaluate the influence of uncertainty, present in the operating environment, on these relationships. Integrating multiple perspectives of organizational behavior relating to learning and leadership, we develop our research model and evaluate it using survey data. Results from our analysis support the notion that supply chain organizational learning orientations fully mediate the relationship between transformational leadership and supply chain ambidexterity. Also, uncertainty in the operating environment positively moderates the relationship between transformational leadership and supply chain learning.

Toward A Corporate Finance Theory For The Entrepreneurial Firm, James S. Ang

The Journal of Entrepreneurial Finance

Corporate finance for the entrepreneurial firm is fundamentally different from that of the traditional firm. The standard problems and solutions to both investment and financing are reformulated in this paper. The formulation is intended to capture two distinguishing features of entrepreneurial finance: 1) Although new ventures yield negative returns on average, they are in aggregate welfare increasing for the economy, after considering their positive externalities. 2) Due to new ventures’ lack of consistent cash flows, which precludes the use of debt, the debt versus equity financing choice is replaced by the choice between the entrepreneurs’ desire for wealth versus control; …

Cryptocurrency: A New Investment Opportunity?, David Kuo Chuen Lee, Li Guo, Yu Wang

Research Collection Lee Kong Chian School Of Business

Bitcoin was the first cryptocurrency to use blockchain and has been the market leader since the first bitcoin was mined in 2009. After the birth of Bitcoin with the genesis block, more than 1,000 altcoins and crypto-tokens have been created, with at least 919 trading actively on unregulated or registered exchanges. This entire class of cryptocurrencies and tokens has been classified by some tax authorities as having the same status as commodities. If cryptocurrency is viewed in the same class as commodities, how different is it in terms of its risk and return structure? This article sets out to help …

Are Overconfident Ceos Better Leaders? Evidence From Stakeholder Commitments, Kenny Phua, T. Mandy Tham, Chi Shen Wei

Research Collection Lee Kong Chian School Of Business

We find evidence that the leadership of overconfident chief executive officers (CEOs) induces stakeholders to take actions that contribute to the leader's vision. By being intentionally overexposed to the idiosyncratic risk of their firms, overconfident CEOs exhibit a strong belief in their firms’ prospects. This belief attracts suppliers beyond the firm's observable expansionary corporate activities. Overconfident CEOs induce more supplier commitments including greater relationship-specific investment and longer relationship duration. Overconfident CEOs also induce stronger labor commitments as employees exhibit lower turnover rates and greater ownership of company stock in benefit plans.

Resilience Of The Us Securities Industry To The Global Financial Crisis, Dariusz Wójcik, Theodor Florian Cojoianu

Research Collection College of Integrative Studies

The global financial crisis was underpinned by the securitization of subprime mortgages led by US investment banks, and its outbreak was marked by the bankruptcy of Lehman Brothers on 15 September 2008. This paper investigates the resilience of the US securities industry to this shock and its evolution between 2008 and 2016, with focus on employment, location, remuneration, sell-side versus buy-side dynamics, and gender. Results show that the US securities industry has suffered significant losses in terms of employment and its recovery has been slow. Under the pressures of depressed demand, new regulation and cost cutting, the industry has gone …