Finance and Financial Management Commons^™

Decimalization, Ipo Aftermath, And Liquidity, Charlie Charoenwong, David K. Ding, Tiong Yang Thong

Research Collection Lee Kong Chian School Of Business

We investigate the effect of decimalization on the aftermarket trading of NYSE-listed IPOs. We find that the relation between bid–ask spread and underpricing becomes negative post-decimalization, suggesting that benefits from the increased price competition accrue more to hot IPOs. The quoted depth is generally smaller post-decimalization due to a higher probability of front running, which aggravates the cost of adverse selection and limit order submission. We show that underwriters continue to provide price support but are only willing to cover the initial short position, if profitable to do so. Decimal pricing does not affect the flipping strategy of institutions for …

Knowledge Will Set You Free: Financial Awareness And Inclusion In The Bottom Of The Pyramid, Aurobindo Ghosh

Research Collection Lee Kong Chian School Of Business

In this project, we explored whether financial literacy and economic awareness alleviates financial exclusion for the general population, particularly the financially underserved sections of the population in Ho Chi Minh City (HCMC) in Vietnam. We overcame the problem of identifying the financially excluded by looking at multiple measures of financial inclusion including frequency of bank use, access to borrowing for business, having a regular savings plan and having some insurance for possible future unfavorable outcomes. Using an innovative principal component (PCA) based method we identified a single score factor that can be construed as an overall measure of the degree …

State Ownership And Corporate Innovation Efficiency, Jerry X. Cao, Douglas J. Cumming, Sili Zhou, Lu Zhou

Research Collection Lee Kong Chian School Of Business

The conventional wisdom is that state ownership may hinder patenting through reduced incentives and pronounced agency problems associated with state-owned enterprises (SOEs). Empirical evidence from a variety of contexts, including the U.S., Europe, and China, is consistent with this view, including evidence that shows that reductions in state ownership are associated with an increase in patent counts. In this paper, we investigate the innovative efficiency of Chinese SOEs. Innovative efficiency refers to patents/R&D expenditure, and not patent counts. The data indicate that SOEs, and especially central government SOEs, are substantially more innovatively efficient than non-SOEs. The relative innovative efficiency of …

Stranded Assets: A Climate Risk, Ben Caldecott, Elizabeth Harnett, Theodor Florian Cojoianu, Irem Kok, Alexander Pfeiffer

Research Collection College of Integrative Studies

Over the last few years, the topic of "stranded assets" resulting from environment-related risk factors has loomed larger. These factors include the effects of physical climate change as well as societal and regulatory responses to climate change. Despite the increasing prominence of these stranded assets as a topic of significant interest to academics, governments, financial institutions, and corporations, there has been little work specifically looking at this issue in Latin America and the Caribbean (LAC). This is a significant omission, given the region's exposure to environment-related risk factors, the presence of extensive fossil fuel resources that may become "unburnable" given …

Bank Of Kentucky (Sc 3063), Manuscripts & Folklife Archives

Manuscript Collection Finding Aids

Finding aid and scan (Click on "Additional Files" below) for Manuscripts Small Collection 3063. Certificate for 100 shares of stock in the Bank of Kentucky, issued to May Humphreys on 1 February 1858. Signed by Virgil McKnight, President, and S. H. Bullen, Cashier.

How The Great Recession Affected Casino Staffing In Nevada Casinos, Toni Repetti

UNLV Gaming Research & Review Journal

In service based industries, as revenue increases so does the need for employees to provide that service, but no known academic research has been conducted on what the most efficient level of that service should be for casinos. In Nevada casinos, significant results show that for each 1% increase in gaming revenue, casino employees increase 0.80%, salaries and wages increase 0.91%, and total payroll increases 0.95%. During fiscal years 2008 – 2010, what many consider the most significant recession to date for Nevada casinos, gaming divisions significantly decreased employees 11.6%, salaries and wages 8.7%, and total payroll 8.8% beyond that …

Federal Home Loan Bank Advances And Bank And Thrift Holding Company Risk: Evidence From The Stock Market, Scott Deacle, Elyas Elyasiani

Business and Economics Faculty Publications

Using bivariate GARCH models of stock portfolio returns and risk, we find that bank and thrift holding companies that relied the most on Federal Home Loan Bank (FHLB) advances exhibited less total risk and market risk than those that relied on them the least between 2001 and 2012. When we control for differences in holding company size, stock trading volume, residential mortgage lending, and holding company type (bank vs. thrift), the most FHLB-reliant holding companies sustain the aforesaid risk advantages except during the crisis of 2007–2009, when they exhibit greater idiosyncratic risk. The latter finding suggests that investors perceived the …

Apprisen Financial Coaching Program: Changing Financial Behaviors, Sharon Miller

Learning Showcase 2016: A Celebration of Discovery, Transformation and Success

No abstract provided.

Louisville Bridge Company - Louisville, Kentucky (Sc 3057), Manuscripts & Folklife Archives

Manuscript Collection Finding Aids

Finding aid and scan (Click on "Additional Files" below) for Manuscripts Small Collection 3057. Certificate no. 1653 dated 21 August 1890 for ten shares of stock in the Louisville Bridge Company, issued to J. S. Bell. The certificate is endorsed by Bell and bears a cancellation stamp of 4 April 1896. Includes an engraving of the bridge spanning the Ohio River and the canal at Louisville, Kentucky.

2017-2018 Budget Request, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University System Board and System Administration Budget Request 2017-2018, Fiscal Year Ending June 30, 2018.

Banking And The Third Industrial Revolution, Singapore Management University

Perspectives@SMU

Banks should leverage on the computer’s power to create value

Acquisitions And Regulatory Arbitrage By Captive Finance Companies, Deborah Smith, Mina Glambosky, Kimberly Gleason, K. Bryan Menk

Business Faculty Publications

Captive finance firms play an important role as financial intermediaries. Yet, they receive little attention in financial research. Recently, finance companies have grown by engaging in acquisition activities. Given their unique characteristics, finance companies may be more capable of extracting gains from acquisitions than other firms. We explain their advantages, and assess the market response and long-term valuation of finance companies that engage in acquisitions. Our results indicate that acquisitions by captive finance firms are wealth enhancing in the short term and the long term. However, the market reacts negatively when flexible captive financing firms acquire highly regulated depository institutions.

Notes With Interest: Department Of Finance Newsletter, N05, Fall 2016, University Of Northern Iowa. Department Of Finance.

Department of Finance Newsletter

News about the activities of the Department of Finance

A Roadmap For Reducing Gun Violence In America, Daniel Webster

Center for Policy Research

How do you reduce gun violence in America? It seems rather daunting. I’m going to take you through some key things I think we can do to have far less gun violence in America

On Saving Money, Charles J. Higgins

Finance Faculty Works

In the consideration to save more money, whether for retirement or say for travel, many focus on the less important activities and ignore some of the more important ones.

The Price Contagion Effects Of Financial Reporting Fraud And Reputational Losses: Evidence From The Individual Audit Partner Level, Ferdinand A. Gul, Chee Yeow Lim, Kun Wang, Yanping Xu

Research Collection School Of Accountancy

This study investigates the existence of price contagion effects for the low-quality audits of individual audit partners and the associated reputational losses in China. Low-quality partners are identified as those whose clients have been sanctioned by regulators for financial reporting fraud. Our evidence shows that sanctions induce a significant stock price decline among the contagion firms that share common low-quality partners and common low-quality audit firms; however, the decline is greater for the former. We also find that the price contagion effects of low-quality partners are more pronounced for firms located in regions with weak institutional development and less pronounced …

The Intersection Of Theory And Action

Business Exchange

Ray Whittington, dean of the Driehaus College of Business, discusses the various ways that the university expresses its synergistic relationships with Chicago financial institutions and the benefits to DePaul alumni, students and the larger community.

Faculty Focus: Hongjun Yan Challenges Students To See Financial Decision-Making From A Fresh Perspective

Business Exchange

Chair and Director of Richard H. Driehaus Center for Behavioral Finance Hongjun Yan found himself drawn to alternative theories of behavioral finance when he was studying finance. His scholarly work probes how asset pricing is affected by market imprefections and "bounded rationality," and he relishes challenging a new generation of business students to question conventional thinking.

Political Turnovers, Ownership, And Corporate Investment In China, Jerry X. Cao, Julio Brandon, Tiecheng Leng, Sili Zhou

Research Collection Lee Kong Chian School Of Business

We examine the impact of political influence and ownership on corporate investment by exploiting the unique way provincial leaders are promoted in China. The tournament-style promotion system creates incentives for new governors to exert influence over investment in the early years of their term. We find a divergence in investment rates between state owned enterprises (SOEs) and private firms following political turnover. SOEs increase investment by 6.0% following the turnover while investment rates for private firms decline, suggesting that the political influence exerted over SOEs may crowd out private investment.

Drivers Behind The Monitoring Effectiveness Of Global Institutional Investors: Evidence From Earnings Management, Incheol Kim, Steve Miller, Hong Wan, Bin Wang

Finance Faculty Research and Publications

This paper studies the drivers behind the monitoring effectiveness of institutional investors in curbing earnings management in an international setting. We identify three distinct drivers and propose two competing hypotheses: the hometown advantage hypothesis predicts that because of proximity to monitoring information, domestic institutions have a comparative advantage over foreign institutions in deterring earnings management, whereas the global investor hypothesis predicts that foreign institutions have a comparative advantage because of their proclivity toward activism and ability to deploy superior monitoring technologies. Consistent with the hometown advantage hypothesis, in aggregate, domestic, but not foreign, institutional ownership is associated with less earnings …

Territorial Tax System Reform And The Financial Behavior Of Multinational Firms, Jing Xing, Stephen Bond, Giorgia Maffini

Research Collection School Of Economics

We investigate whether the move from the worldwide tax system to the territorial tax system in Japan in 2009 affects the financial behavior of overseas affiliates of Japanese multinational companies. The reform substantially reduces the tax costs of profit repatriation in the form of dividends for Japanese overseas affiliates. We use this reform as a quasi-natural experiment to investigate whether and how the tax system affects multinationals’ cash holding and financing policies. Findings from our study sheds some light on possible outcomes of similar tax reforms in countries such as the United States. Based on a sample of Japanese overseas …

Does It Pay To Be Different? Relative Csr And Its Impact On Firm Value, David K. Ding, Christo Ferreira, Udomsak Wongchoti

Research Collection Lee Kong Chian School Of Business

Conventional aggregation of Corporate Social Responsibility (CSR) raw scores and its interpreted impact on firm value have provided mixed evidence in the literature. We show that the value impact of CSR activities relies heavily on the industry-specific relative position of the firm. Only firms that distinguish themselves over their peers are associated with increased firm value. This finding is robust and holds for both responsible and irresponsible behaviors. Information concerns and portfolio construction can allude to a possible CSR clientele, suggesting the existence of an optimal CSR level. Our peer-effect results are robust to unobserved heterogeneity along the lines of …

Is Cash-Return Relation Risk Induced?, Chenxi Liu

Research Collection Lee Kong Chian School Of Business

Corporate cash holding is found to be able to predict stock return. Some scholars attribute this to the association of cash with systematic risk with respect to growth options. Others find that the relation is a mispricing effect. In this paper, I try to test whether the relation between cash and return is driven by systematic risk that captured by cash. The empirical results do not support the risk explanation of cash-return relation. First, the risk loading on CASH factor cannot predict returns, which is not consistent with rational frictionless asset pricing models. Second, CASH factor cannot reflect future GDP …

Sociability, Golf Courses, And The Performance Of Institutional Investors, Chi Shen Wei, Lei Zhang

Research Collection Lee Kong Chian School Of Business

We hypothesize that prestigious golf courses attract golfers and visitors from across the country, providing greater opportunities for nearby investors to build social connections. Our evidence suggests that institutional investors located near prestigious golf courses earn significantly better benchmark- and risk-adjusted returns. This reflects the benefits of sociability as our findings are stronger for golf courses with reciprocal guest policies that allow wider participation and increase when major golf championships rotate to the state. Their portfolios reveal hallmarks of active trading – higher concentration, greater selectivity, more frequent turnover – and include more distant stocks. To establish a causal link, …

Why Do Countries Matter So Much In Corporate Social Performance?, Ye Cai, Carrie Pan, Meir Statman

Finance

Why do levels of corporate social performance (CSP) differ so much across countries? We answer this question in an examination of CSP ratings of more than 2,600 companies from 36 countries. We find that firm characteristics explain very little of the variations in CSP ratings. In contrast, variations in country factors such as stages of economic development, culture, and institutions account for a significant proportion of variations in CSP ratings across countries. In particular, we find that CSP ratings are high in countries with high income-per-capita, strong civil liberties and political rights, and cultures oriented toward harmony and autonomy. Furthermore, …

Long Term Optimal Portfolio Selection Problem In Different Models, Bowen Hu

Mathematics Theses and Dissertations

In this project, we mainly focus on how to set up a complete methodology for finding the best investment portfolio which is meeting investor's risk preferences. In order to consider different aspects of their risk preferences, we use a combination of several risk and performance metrics in the ranking function. After applying this ranking system to select most suitable funds from a large pool, we use different models to optimize the portfolio. Past 5-10 years data set has been extracted from Bloomberg. We find out that the asymmetric multivariate t-distribution can dominate the multivariate normal distribution and the symmetric t-distribution …

2016-2017 Operating Budget: Form Bor-10, Salaries Of Non-Classified Employees; Form Bor-11, Salaries Of Classified Employees, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University System 2016-2017 Operating Budget. FOR BOR-10 Salaries of Non-Classified Employees, FORM BOR-11 Salaries of Classified Employees.

An Examination Of The Efficacy Of Christian-Based Socially Responsible Investment Funds, Richard Stultz

Doctoral Dissertations and Projects

This applied doctoral research project examined the efficacy of Christian-based socially responsible investment funds. The researcher performed quantitative analysis of the risk-adjusted yields of the funds as compared to the S&P 500 Index as well as other types of socially responsible investment funds to accomplish this task. The timeframe for the study was 1995 to 2015. An examination of the differences in the performance of funds within the Christian-based category was also completed. Overall, the Christian-based funds underperformed the S&P 500 Index. The difference was statistically significant at the α = .10 level for each time period (i.e., 1-, 3-, …

Sentiment And Stock Returns: Anticipating A Major Sporting Event -- Online Appendix, Geoffrey C. Friesen, Brian C. Payne, Jiri Tresl

Department of Finance: Faculty Publications

Table 3 (Appendix): Average Daily Raw Returns around NFL Super Bowl Events for Firms Headquartered in Losing, Winning, Favored, and Non-Favored States and the S&P 500

Table 5 (Appendix): Average Daily Abnormal Returns around NFL Super Bowl Events for Firms Headquartered in Losing, Winning, Favored, and Non-Favored States

Table 6 (Appendix): Average Daily Abnormal Returns around NFL Super Bowl Events for Firms Headquartered in Losing, Winning, Favored, and Non-Favored States Conditioned on whether the Firm is in a Losing or Winning State

Table 7 (Appendix) : Sample Split into Size Quintiles

Table 8 (Appendix) : Characteristics of the Matched Sample …

Can Information Be Locked Up? Informed Trading Ahead Of Macro-News Announcements, Gennaro Bernile, Jianfeng Hu, Yuehua Tang

Research Collection Lee Kong Chian School Of Business

Government agencies routinely allow pre-release access to information to accredited news agencies under embargo agreements. Using high-frequency data, we find evidence consistent with informed trading during embargoes of Federal Open Market Committee (FOMC) scheduled announcements. The E-mini Standard & Poor’s 500 futures’ abnormal order imbalances are in the direction of subsequent policy surprises and contain information that predicts the market reaction to the policy announcements. The estimated informed trades’ profits are arguably large. Notably, we find no evidence of informed trading prior to the start of FOMC news embargoes or during lockups ahead of nonfarm payroll, US Producer Price Index, …