Finance and Financial Management Commons^™

Valuation Driven Innovation, Keming Li

All Faculty Scholarship (Archived)

This paper examines whether and how market valuation influences firm innovation, using an ex ante valuation measure that filters firm size and growth prospects from tangible investment. Specifically, by utilizing the National Bureau of Economic Research (NBER) patent database, I find that firms with high market valuations generate more innovative outputs, as measured by the number of patents and patent citations. Causality is established using mutual fund flows as an exogenous shock, demonstrating a strong effect of market valuation on firm innovation. Consistent with the idea that managers take advantage of irrationally low discount rates by issuing equity and investing …

Financial Impact Of Beef Cow Culling: Canadian Analysis, Heidi R. Johnson, Eric T. Micheels, Kathy A. Larson

Journal of Applied Farm Economics

Culling decisions within beef production systems are not reversible, and as such, data can help decision-makers double-check heuristics to avoid costly mistakes. In this essay, we use financial methods to examine cow culling decisions, evaluating their impact on overall herd profitability. To do so, we use production and financial data from 16 “typical farms” within the Canadian Cow-Calf Cost of Production Network to explore the financial impact of different culling strategies. This essay builds on prior literature by using Canadian data, as there may be differences in costs and productivity across production regions. We identify four culling scenarios that vary …

[Abstract And Associated Excel File For] Quickly Generated Binomial Tree Applications For Options And Var In Excel Without Vba, Tom Arnold, C. Mitchell Conover, Joseph Farizo, Nancy Tran

Finance Faculty Publications

KEY TAKEAWAYS:

Combining Excel’s =LAMBDA and =MAKEARRAY functions allows for the creation of user-defined functions for producing large binomial trees in less than a second.

Further applications of the user-defined functions allow for very quick valuations of European and American style options with large binomial trees. Applying similar techniques allows for the calculation of value-at-risk (VaR) measures.

Because the binomial tree has a certain structure, a ratio can be computed that determines how the portfolio is performing through time relative to the VaR calculation. A high (low) ratio relative to the amount of the time horizon that has elapsed indicates …

[Associated Excel File For] Facilitating Portfolio Construction Using Ex-Ante Information Ratios And Maximum Sharpe Ratios, Tom Arnold, Joseph Farizo, David S. North

Finance Faculty Publications

Investors should consider Sharpe ratios and correlations together when adding a new fund to their existing portfolio. The ex-ante information ratio (also known as the appraisal ratio) is effective in informing this decision. However, a maximum Sharpe ratio calculation is equally effective in this decision while providing the additional benefit of producing optimal portfolio weights for the combined portfolio. In this paper, we demonstrate how to compute these measures to help facilitate portfolio construction.

The Psychology Of Money: Achieving Financial Peace, Jesse L. Veenstra

Faculty Work Comprehensive List

"The single biggest way to be financially healthy is to spend less than you make."

Posting about ­­­­­­­­healthy financial habits from In All Things, an online hub that offers insight into maintaining and faithful and orthodox Reformed Christian worldview while fearlessly engaging in every aspect of contemporary life – until all is made new.

The Psychology of Money

Exploration Of Designing An Automatic Classifier For Questions Containing Code Snippets—A Case Study Of Oracle Sql Certification Exam Questions, Hung-Yi Chen, Po-Chou Shih, Yunsen Wang

Department of Accounting and Finance Faculty Scholarship and Creative Works

This study uses the Oracle SQL certification exam questions to explore the design of automatic classifiers for exam questions containing code snippets. SQL’s question classification assigns a class label in the exam topics to a question. With this classification, questions can be selected from the test bank according to the testing scope to assemble a more suitable test paper. Classifying questions containing code snippets is more challenging than classifying questions with general text descriptions. In this study, we use factorial experiments to identify the effects of the factors of the feature representation scheme and the machine learning method on the …

From Cypherpunks To Decentralized Finance: How Crypto-Anarchy Is Redefining Legal And Economic Systems, Alesia Zhuk

Markets, Globalization & Development Review

This article explores the evolution of crypto-anarchy, tracing its origins from the cypherpunk movement to the rise of decentralized finance (DeFi) and its transformative effects on legal and economic systems. Central to crypto-anarchy is the belief in individual empowerment through privacy, financial autonomy, and decentralization, which allows users to bypass traditional intermediaries like banks. While these technologies offer increased freedom and financial inclusion, they also introduce significant risks such as money laundering, tax evasion, and the facilitation of illegal activities, posing challenges to current regulatory frameworks. The article examines the socio-economic implications of decentralization, including both the democratization of finance …

From Socially Responsible Enterprises To Crypto-Anarchy: We Cover Quite A Range, Nikhilesh Dholakia, Deniz Atik, Delphine Godefroit-Winkel

Markets, Globalization & Development Review

No abstract provided.

Fixed Income Fund Report, January 2025, Archway Investment Fund

Archway Investment Fund

No abstract provided.

Equity Fund Monthly Report, January 2025, Archway Investment Fund

Archway Investment Fund

No abstract provided.

Drivers Of Foreign Direct Investment In Latin America, Daniel Flores

Research Honors

Foreign Direct Investment (FDI) has played a crucial role in driving economic growth across Latin America, yet the determinants influencing FDI inflows in the region remain contested. This research examines the effect of macroeconomic and institutional individual factors on FDI, employing a Dynamic Panel Vector Autoregressive (PVAR) model with the Generalized Method of Moments (GMM). Our findings reveal significant temporal variations in the determinants of FDI over time. Political stability was a decisive factor during 2002–2008, reflecting investor preference for predictable institutional environments amid favorable economic conditions. The 2009–2015 period showed weakened relationships between FDI and its determinants, potentially due …

Managers' Staging Of Earnings Conference Calls Around Actual Share Repurchases, Hong Kim Duong, Chuong Do, Huy N. Do

Accounting Faculty Publications

We use earnings call transcripts to examine whether managers strategically change their disclosure behaviors before an actual share repurchase. Our findings suggest that managers use tone management to strategically portray a more negative outlook for the firm in the earnings call before an actual repurchase. In addition, we find that managers of repurchasing firms “cast” the call with more unfavorable analysts even when more favorable analysts are available. These disclosure strategies aim to influence the information flows to the market and allow repurchasing firms to repurchase their shares at a discounted price. We further show that insiders of repurchasing firms …

Has The Iasb Successfully Achieved Its Stated Goals? A Literature Synthesis And Theoretical Model, Stephen B. Salter, Hong Kim Duong, Gaurav Gupta

Accounting Faculty Publications

The purpose of this paper is to examine whether the International Accounting Standards Board (IASB) has been successful in achieving its stated objective of enhancing the comparability of financial reports produced across the globe. According to IFRS.org, "IFRS Accounting Standards bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions." To meet our research objective, we summarize the research on international financial reporting standards (IFRS) found in seven relevant ABDC A and A* journals for 2016-2021. Based on the examination of published research, we create a model …

Safety Ratings And Their Effect On Operating Costs In The Trucking Industry: A Data-Driven Analysis, Teresa L. Smith

Theses, Dissertations and Capstones

This dissertation explored the interplay between safety ratings and financial performance within the transportation sector, with a specific focus on the trucking industry. In an era where safety standards are paramount, the primary objective of the study was to determine the impact of safety ratings on the operating costs of trucking firms. Using a robust methodology grounded in quantitative analysis and industry-specific secondary data, the study established empirical connections between safety ratings and operating costs. This included a focused effort to identify direct effects, highlighting the potential influence of lower safety ratings on economic outcomes within the trucking industry.

Furthermore, …

Assessing The Impact Of Financial, Educational, And Managerial Resources On The Success Of Minority-Owned Businesses: An Analysis Of Resources From The Perspective Of The Minority Business Owner, Clinton B. Arnold

Theses, Dissertations and Capstones

Minority-owned businesses (MOBs) in the United States have a failure rate that is 50% higher than that of their non-minority counterparts. Rectifying this imbalance and achieving parity could yield significant economic benefits, potentially adding $1.5 trillion to the nation's economy if resources—financial, educational, and managerial—are equitably distributed and effectively made available to support the goals of minority businesses. However, historical injustices, from Jim Crow laws to systemic discrimination, have granted certain groups multi-generational advantages, exacerbating the divide. Addressing these disparities is both an economic imperative and a moral obligation to ensure equal opportunity. Lending Tree (2023)

With 1.2 million MOBs …

Utilizing Financial Modeling To Make Informed Equity Decisions Situated In The Scholarly And Public Sphere, Max Kimmel

Honors Senior Capstones and Theses

As of 2025, there is an estimated total of “US$145.4 trillion” (Olatunji-Albert and Meres) under management by institutional investors according to PricewaterhouseCoopers. This capital is primarily composed of high-net-worth individuals (individuals with liquid assets of at least $1 million (Hayes) in addition to universities' endowments and pensions. With the main intention of investing to be to preserve wealth, many retail investors believe that they are capable of outperforming the market, eliminating the need for industry professionals such as asset managers. After thorough examination and implementation of financial management concepts such as Stovall Sector Rotation and Markowitz Modern Portfolio Theory, it …

Employee Benefit Plan Audits: Knowledge Spillover For Improving Quality, Lisa Ann Nash

Theses, Dissertations and Capstones

This study provides a unique glimpse into the work of non-BigN accounting firms offering Employee Benefit Plan (EBP) audit services for single employer defined contribution plans. The study examines knowledge spillover from joint services and EBP auditor specialization to improve EBP audit quality. EBPs often incur low-quality audits, resulting in penalties assessed by the Department of Labor (DOL) for deficiencies. Companies may feel a sense of comfort hiring the same auditor they used for their company financial statements, but the EBP audits require the auditor to possess specialized knowledge beyond the requirements for the financial statements to confirm compliance with …

Secured Or Unsecured: That Is All Matters - Practical Implications Of New Reference Rates, Tunc Oygur, Alper Kirik, Yaman O. Erzurumlu

Faculty Publications – Finance, Insurance, and Law

EUR and USD overnight risk-free rates (RFRs) have undergone a period of change, with EONIA being replaced with ESTR and Fed Funds Rate (FFR) being replaced with SOFR. We conduct a comparative analysis of the representative power of EONIA vs. ESTR and FFR vs. SOFR regarding market confidence and guidance on market expectations. Our results imply a significant difference between the US and the Eurozone. ESTR-EONIA displays similar characteristics, whereas FFR-SOFR displays different characteristics. SOFR is a superior market indicator to its predecessor and more effectively reflects market confidence than the FFR. However, none of the four RFRs displays forecasting …

Green Project Finance For Infrastructure And Building Construction: Instruments And Benchmarks, Yunping Liang

Durham School of Architectural Engineering and Construction: Faculty Publications

It is counterintuitive that both the practice and research on green project finance for infrastructure and building construction are ascendant and still have limited precedents, considering that individually, the two parts (i.e., project finance and sustainability in the built environment) are both familiar to the communities. To narrow the gap and facilitate the financing of the built environment’s sustainable transformation, this study systematically reviews the common instruments for financing green infrastructure and building projects. Benchmarking questions distinguishing the profile of green project finance from common construction project finance are developed based on the literature review and then are used for …

The Budget, Fiscal Year 2025-2026, Tennessee. Department Of Finance And Administration

Budget Volume 1

This document is the final budget for the coming fiscal year.

The Integration Of Big Data In Fintech: Review Of Enhancing Financial Services Through Advanced Technologies, Soudeh Pazouki, Mohammad B. Jamshidi, Mirarmia Jalali, Arya Tafreshi

Management Faculty Publications

Big data analytics is revolutionizing the FinTech industry, offering new opportunities for real-time decision-making, personalized financial services, and improved risk management. By leveraging advanced technologies like machine learning and artificial intelligence, financial institutions can efficiently detect fraud, predict market trends, and create innovative solutions tailored to customer needs. Big data also plays a critical role in promoting financial inclusion through alternative credit scoring models, providing access to credit for underserved populations and fostering broader participation in the financial system.

However, the integration of big data into FinTech is not without its challenges. Issues such as data privacy concerns, regulatory complexities, …

Effect Of Trade Openness On Food Security In Economic Community Of West African States Region, Yahaya Umar Isah, Ikubor, Ofili Jude, Bernard, O. A., Zakari Saheed S., Ayodeji, S.

DLSU Business & Economics Review

This study investigates the impact of trade openness on food security in the ECOWAS trade zone. The study relied on the system GMM approach to analyze the impact of trade openness on overall and disaggregated components of food security in the ECOWAS trade zone during the period 2014 and 2021. Annual time series data were sourced from the Food and Agriculture Organization, World Bank Metadata base, and World Integrated Trade Solution. Major findings from the study reveal that trade openness has a significant positive impact on overall food security indicators. However, trade openness has not significantly impacted food availability and …

The Global Value Chain Effects Of Rcep: Estimating The Impact On The Philippines, Caesar B. Cororaton

DLSU Business & Economics Review

This paper extends the global CGE model results of Cororaton (2022) by disaggregating further the RCEP trade creation effects on the Philippines into global value chain (GVC) impacts. The GVC analysis indicates that the trade agreement in RCEP results in higher Philippine exports of US$ 2.8 billion in 2031, of which the increase in Philippine domestic value added is US$ 2.4 billion, significantly higher than the foreign value added of US$ 403 million. Electronic products contribute 67% of the value added generated within the Philippines. The increase in the import contents of Philippine exports is only US$ 413 million. Furthermore, …

The Impact Of Short-Term Rental Activity On House Prices: Evidence From Coastal Virginia, Navid Safari, Lei Zhang, Timothy M. Komarek

Finance Faculty Publications

Short-term rentals such as Airbnb have grown substantially in recent years. In this study, we investigated the effect of Airbnb rentals on neighboring house prices in Hampton Roads, Virginia. We focus on three different measures of Airbnb activity to obtain more robust results. Our measures include active Airbnb listings, active listings with at least one reservation, and the sum of reservations over three different periods. Consistent with previous literature, our main results show that prior Airbnb rental activity has a positive impact on the surrounding housing sales prices. Furthermore, the localized impact diminishes over geographic space (i.e., distances greater than …

Labor Heterogeneity, Labor Adjustment Costs, And Externally Financed Firm Growth, Enxi An, Kenneth Yung

Finance Faculty Publications

Highlights

• Because skilled workers entail higher hiring and firing expenses, firms tend to retain skilled workers in the face of the high labor adjustment costs (LACs).

• The retention of skilled workers imposes inflexibility on business operations and exposes firms to cash flow shocks.

• Firms with high LACs hoard precautionary cash in the face of higher cash flow risk.

• We find a positive relationship between LACs and externally financed firm growth.

• Equity is the major source of external funds for firm growth in the face of high LACs.

• The retention of skilled workers elevates conflicts …

The Role Of Intangible Assets In Shaping Firm Value, Feng Dong, John Doukas

Finance Faculty Publications

This study introduces a new metric to evaluate a firm's intangible asset intensity, focusing on its ability to generate revenue from nonphysical assets. It finds a strong positive correlation between firm performance and both internally generated and externally acquired intangible assets. Firms with high intangible intensity outperform peers by 3% annually. The oversight of intangible assets is identified as a factor in value stocks' underperformance. Rigorous tests, including endogeneity checks, confirm these firms exhibit superior accounting quality, labour investment efficiency and acquisition returns. A framework highlights how managerial attributes enhance firm value through decision-making.

Addressing The Challenges Of A Catholic Parish Elementary School With Systemic Design Problem Solving, Alfred E. Bradley

Full-Text Theses & Dissertations

For more than a decade the repeated use of conventional analytic thinking and linear strategic planning approaches produced little effective progress or solutions for the many ongoing and emerging problems of St. Laurentius Catholic School, a parish elementary school within the Archdiocese of Philadelphia. Indeed, many in the community believed that their distressing pathway characterized by continued differing perceptions among stakeholders, resource limitations and lack of autonomy were leading the school to closure. When a new clerical leader who was also a Doctor of Management in Strategic Leadership student was assigned, however, he suggested a novel approach. By reframing the …

“The Entire Art Movement Has Become An Enormous Business Venture” Financing The American Art Museum, Lucy Owen

MA Theses

This thesis examines the intricate relationship between financial operations and the public function of American art museums. The distinctive American nonprofit model relies heavily on private funds for its survival and success. The thesis traces the historical development of this model, and then analyzes the contemporary state of American art museums, with a specific focus on two prominent institutions: MoMA PS1 and the Yale University Art Gallery. The analysis highlights the significant influence of board members' financial contributions and their business expertise on museum operations. Moreover, the thesis argues that the museum world has undergone rapid financialization in the twenty-first …

Introduction To The Issue, Craig S. Maher, Bruce D. Mcdonald Iii

School of Public Service Faculty Publications

This edition of Public Finance Journal brings together research exploring critical issues in public finance, from voter perceptions of fiscal health to the evolving landscape of municipal finance and intergovernmental grants. As governments at all levels navigate financial sustainability, transparency, and accountability, these studies provide fresh insights into how financial policies and practices influence governance and public trust. The articles examine the political consequences of municipal credit ratings, the practical challenges of public records laws, the complexities of managing federal grants at the local level, and the rise of green bonds as a financial instrument for sustainable development. This research …

Deconstructing The Greenium: Exploring Mispricing In The Green Bond Market, Koto Yamada

Honors Theses

This paper investigates the sources and conditions under which the greenium – a yield discount observed for green bonds relative to comparable conventional bonds – appears in global fixed income markets. Using a dataset of over 26,000 bonds issued between 2012 and 2024 across 37 countries and 5,400 firms, I find that the existence of the greenium is highly context-dependent, shaped by factors such as issuer reputation, institutional trust, and green capital allocation across sectors. Repeat green issuers receive yield discounts of up to 57 basis points, particularly in the EU and Nordic countries, where strong climate policies and disclosure …