Finance Commons^™

Strategic Regional And National Economic Development With Fiscal Equalization, Lok Sang Ho

Centre for Public Policy Studies : CPPS Working Paper Series

This paper shows that under increasing returns, devoting resources to develop some regions strategically ahead of other regions make sense, but this does not imply that the other regions have to wait until the benefits of economic growth to trickle down. Fiscal equalization can and should be more aggressive, with the central government incurring a deficit to help the poorer regions, and the national debt thus caused to be repaid by higher taxes on the fast growing regions. Optimal fiscal equalization should also involve central government’s investment in certain kinds of public infrastructure in the local economies of the backward …

The Economic Impact Of The 50-Year Career Of Frank Broyles At The University Of Arkansas, Jeffery T. Collins

Publications and Presentations

Frank Broyles retired from the University of Arkansas on December 31, 2007, after a career in the athletic department of the school that lasted 50 years. First as coach and later as men’s athletic director, Frank Broyles had a profound impact on the state of Arkansas. His leadership skills led to tremendous unquantifiable benefits like personal mentorship of players and staff, notoriety, and philanthropy. His five decade long tenure at the University of Arkansas also led to demonstrable economic impact. The purpose of this study is to quantify and celebrate the economic benefits that have accrued to Arkansas because of …

Indiana State University Financial Report 2008, Indiana State University

Financial Reports

No abstract provided.

Comments On Lederman And Maloney’S ‘In Search Of The Missing Resource Curse’, Cameron Shelton

CMC Faculty Publications and Research

The paper by Daniel Lederman and William Maloney is part of a larger project of the authors.1 Their broader goal is to drive home the point that the possession of natural resource wealth does not inevitably lead to lower growth rates and thus lower per capita GDP. In their words, “the central tendency is not negative” and natural resources are neither curse nor destiny.

Utopia Reconsidered: The Modern Firm As Institutional Ideal, John Dobson

Finance

This paper challenges Alasdair MacIntyre's assertion that the modern firm -such as Google, Unilever, or Microsoft -is inimical to human flourishing within an Aristotelian framework. The paper begins by questioning MacIntyre's rendering of utopian communities. It then addresses four specific criticisms of the modern firm to be found throughout MacIntyre's oeuvre, namely compartmentalisation, myopia, inequality, and loss of community. Arguments are made to the effect that these criticisms do not vitiate the institutional role of the modern firm in an Aristotelian context. The paper concludes with an invocation of the modern firm as institutional ideal within an evolving utopian vision …

Introducing Ethics Into The Finance Curriculum: A Simple Three Level Guide, John Dobson

Finance

Ethics has arrived in the business school curriculum. But what about the curriculum of finance? Can ethics be integrated in any meaningful way into the theory and pedagogy of finance? Given the ever-broader array of topics in finance, should ethics be included at the inevitable expense of something else? Are finance instructors qualified to teach ethics any more than ethicists are qualified to teach finance? In short, are finance educators doing students a service or disservice by devoting class time to ethics? These are the questions addressed here. A menu of three different levels of integration is supplied;each level requiring …

Portfolio Construction: The Efficient Diversification Of Marketing Investments, Michael P. Haydock

Walden Dissertations and Doctoral Studies

Efforts in the marketing sciences can be distinguished between the analysis of individual customers and the examination of portfolios of customers, giving scarce theoretical guidance concerning the strategic allocation of promotional investments. Yet, strategic asset allocation is considered in financial economics theory to be the most important set of investment decisions. The problem addressed in this study was the application of strategic asset allocation theory from financial economics to marketing science with the aim of improving the financial results of investment in direct marketing promotions. This research investigated the components of efficient marketing portfolio construction which include multiattribute numerical optimization, …

Offshore Financial Havens: Their Role In International Capital Flows, Zhixiang Sun

Dissertations and Theses Collection (Open Access)

The purpose of this paper is to study the role of offshore financial havens in international capital flows. We examine the effects of being a tax haven, a money laundering centre or an offshore financial centre (OFC), which often overlap. We want to see whether these places are used as entrepots (which means temporary storage for funds) or as investment places or both. We mainly use two complementary data sets: bilateral cross-border asset holding and financial intermediation. One is a stock variable and the other one is a flow variable. We apply the gravity model to bilateral cross-border asset holding …

Rolling Adf Tests: Detecting Rational Bubbles In Greater China Stock Markets, Peng Huang

Dissertations and Theses Collection (Open Access)

Following Phillips, Wu and Yu (2007), this paper extends their bubble detecting work to several Greater China stock markets. Two alternative bubble detecting methods, the forward recursive ADF tests raised by Phillips et al. (2007) and the modified version, forward rolling ADF tests, are implemented and compared. Monte Carlo simulations are performed to determine the critical values of the ADF statistic under different sample size. Empirical results demonstrate that only rolling ADF tests are successful in detecting rational bubbles by overcoming the problem of periodically collapsing bubble. As we have expected, bubbles in China Mainland stock market are detected. Out …

Stock Markets And Income Inequality: A Cross-Country Study, Elizabeth Mathew

Dissertations and Theses Collection (Open Access)

This paper conducts a comprehensive analysis to understand how stock market ratios affect net income inequality. The study of how finance impacts income distribution is relevant as the income distribution of a nation influences savings decisions, resource allocation, innovation incentives and public policy and hence impacts the process of economic development. Using a cross-sectional data set of 68 countries and panel data set of 61 countries from 1975 to 2005, I apply cross-sectional OLS and panel regressions to look at how stock market size, liquidity, and activity impact income inequality. While stock market size is found to strongly impact income …

Flow-Performance Relationship And Tournament Behavior In The Mutual Fund Industry, Baoling Ma

Dissertations and Theses Collection (Open Access)

In this paper, we interpret the flow-performance relationship as an incentive scheme implicitly given to mutual fund managers by mutual fund investors. We show that the flow-performance relationship varies not only with economic activity but also across fund attributes. We provide evidence that the degree of convexity of the flow-performance relationship has a positive effect on the magnitude of tournament behavior. Different from the conventional tournament hypothesis, we show that although the convexity of the flow-performance relationship does produce implicit incentives for fund managers to modify risk-taking behavior as a function of their prior performance, whether or not the mid-year …

Stock Markets And Household Wealth: Can A Stock Market Crash Cause A Recession In The U.S. Economy?, Ishan Singh

Honors Theses

Stock market wealth effects on the level of consumption in the United States economy have been constantly debated; there is evidence for arguments for and against its prominence and its symmetry. This paper seeks to investigate the strength of its negative effect by creating models to analyze unexpected shocks to the Standard and Poor's 500 index. First, a transmission mechanism between the stock market and GDP is established through the use of second-order vector autoregressive models. Following which, theory from the life cycle model and adaptations of previous researchers' models are used to create a structural model. This paper finds …

Misc., Anwar Shaikh Phd2

Archives of Anwar Shaikh

This collection includes:

• Yee, C., Shaikh, A., & Gardens by Joan. (2008, March 26). Email correspondence regarding a landscaping consultation [Email correspondence].

• Shaikh, A., & Vicente, M. A. (2008, February 8). Email correspondence regarding an invitation to be a keynote speaker at ECON 2008 at the University of Buenos Aires [Email correspondence].

• Barbieri, A. E. (2007, December 17). Letter to Anwar Shaikh inviting him as a keynote speaker for ECON 2008 [Letter].

• Universidad de Buenos Aires. (n.d.). Envelope addressed to Anwar Shaikh [Envelope].

• Gorton, G. (2007). Banks, banking, and crises. NBER Reporter, 2007(4). National …

Domestic Bonds, Credit Derivatives, And The Next Transformation Of Sovereign Debt, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

Not long ago, financial markets in most poor and middle-income countries were shallow to nonexistent, and closed to foreigners. Governments often had to rely on risky borrowing abroad; the private sector had even fewer options. But between 1995 and 2005, domestic debt in the emerging markets grew from $1 trillion to $4 trillion. In Mexico, domestic debt went from just over 20% of the total government debt stock in 1995 to nearly 80% in 2007. Foreign and local investors are buying. Over the same period, derivative contracts to transfer emerging market credit risk surpassed the market capitalization of the benchmark …

Banking, Credit, Anwar Shaikh Phd

Archives of Anwar Shaikh

4:27 PM    

Claude responded: This collection includes:

This collection includes:

• Shaikh, A. (n.d.). [Handwritten folder label identifying contents as "Banking, credit"]. Unpublished manuscript note. New School for Social Research.
• Shaikh, A. (n.d.). [Handwritten working notes on banking and credit theory: three-scenario framework for banks and real economy, bonds, and combined case; system of equations for deposit rate i_D, loan rate i_L, profit rate r, and real wage wr; analysis of arbitrage conditions; derivation showing all three cases collapse to the same structure when savings deposits equal zero-coupon bonds; reference to Garegnani; notation regarding base rate as f(money market) …

Test For Infinite Variance In Stock Returns, Xian Ning Yan

Dissertations and Theses Collection (Open Access)

The existence of second order moment or the finite variance is a commonly used assumption in financial time series analysis. We examine the validation of this condition for main stock index return series by applying the extreme value theory. We compare the performances of the adaptive Hill's estimator and the Smith's estimator for the tail index using Monte Carlo simulations for both i.i.d data and dependent data. The simulation results show that the Hill's estimator with adaptive data-based truncation number performs better in both cases. It has not only smaller bias but also smaller MSE when the true tail index …

Estimating The Dynamics Of Mutual Fund Alphas And Betas, Harry Mamaysky, Matthew Spiegel, Hong Zhang

Research Collection Lee Kong Chian School Of Business

This article develops a Kalman filter model to track dynamic mutual fund factor loadings. It then uses the estimates to analyze whether managers with market-timing ability can be identified ex ante. The primary findings are as follows: (i) Ordinary least squares (OLS) timing models produce false positives (nonzero alphas) at too high a rate with either daily or monthly data. In contrast, the Kalman filter model produces them at approximately the correct rate with monthly data; (ii) In monthly data, though the OLS models fail to detect any timing among fund managers, the Kalman filter does; (iii) The alpha and …

Do Analysts Influence Corporate Financing And Investment?, John A. Doukas, Chansog (Francis) Kim, Christos Pantzalis

Finance Faculty Publications

We examine whether abnormal analyst coverage influences the external financing and investment decisions of the firm. Controlling for self-selection bias in analysts' excessive coverage, we find that firms with high (low) analyst coverage consistently engage in higher (lower) external financing than do their industry peers of similar size. Our evidence also demonstrates that firms with excessive analyst coverage overinvest and realize lower future returns than do firms with low analyst coverage. Our findings are consistent with the hypothesis that analysts favor the coverage of firms that have the potential to engage in profitable investment-banking business.

Hong Kong's Money: The History, Logic And Operation Of The Currency Peg, Hwee Kwan Chow

Research Collection School Of Economics

No abstract provided.

Central Bank Of Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December 2007, Central Bank Of Nigeria

CBN Annual Report

In 2007, the Central Bank of Nigeria (CBN) faced significant challenges in monetary management due to statutory allocations to government tiers, autonomous foreign exchange inflows, and pre-election spending. These challenges were addressed through Open Market Operations (OMO), issuance of treasury securities, standing facilities, and foreign exchange swaps. The introduction of the monetary policy rate (MPR) in December 2006 moderated inter-bank rates, encouraged trading, and improved the transmission of monetary policy actions. The Bank intensified its non-regular management activities to ensure the Policy Support Instrument (PSI) target was met. The financial system at end-2007 comprised the CBN, the Nigeria Deposit Insurance …

Life And Debt For Etsu Graduate Students., Laura Nelson

Electronic Theses and Dissertations

Through in-depth interviews with 21 participants, this thesis investigates how graduate students at East Tennessee State University feel about their finances. Although all adults, by necessity, have everyday money concerns, this study explores the unique experiences that post-baccalaureate students have with debt, how they talk about it, and what meanings they attach to student loans in their daily lives. This study is novel in that little research to date has examined how graduate students' perceptions of adulthood are connected to their financial situations and their stage in life. For example, saving money is important to this population mainly because it …

A Structural Analysis Of Higher Education Government Relations Organizations And Their Relationship To State Funding, Randall Brumfield

Graduate Theses and Dissertations

Competing interests for state government funding have affected the status of public higher education as a budget priority. State legislators and executive officeholders are increasing appropriations to areas such as public K-12 education, health care, infrastructure, and social services programs at the expense of state colleges and universities. As such the higher education community must effectively utilize its government relations organizations to communicate with elected officials the importance of state funding. The purpose of the study was to identify the functional and personnel trends existing within government relations offices, and, to determine the extent a relationship may exist between organizational …

5 Women's Status And Children's Food Security In Pakistan, Basudeb Guha‐Khasnobis, Gautam Hazarika

School of Economics and Finance Faculty Publications

This chapter examines the role of women's intra-household status relative to men's in children's food security in Pakistan. Data from the 1991 Pakistan Integrated Household Survey (PIHS) yield a measure of evidence of a positive relation between women's intra-household status and children's food security.

Direction-Of-Change Forecasts Based On Conditional Variance, Skewness And Kurtosis Dynamics: International Evidence, Peter F. Christoffersen, Francis X. Diebold, Roberto S. Mariano, Anthony S. Tay, Yiu Kuen Tse

Research Collection School Of Economics

Recent theoretical work has revealed a direct connection between asset return volatility forecastability and asset return sign forecastability. This suggests that the pervasive volatility forecastability in equity returns could, via induced sign forecastability, be used to produce direction-of change forecasts useful for market timing. We attempt to do so in an international sample of developed equity markets, with some success, as assessed by formal probability forecast scoring rules such as the Brier score. An important ingredient is our conditioning not only on conditional mean and variance information, but also conditional skewness and kurtosis information, when forming direction-of-change forecasts.

Some Perspectives On The Actuarial Adequacy Of The Pension Benefit Guarantee Corporation, Andrew Frank Thompson

UNIversitas: Journal of Research, Scholarship, and Creative Activity

This paper analyzes the actuarial adequacy of PBGC in providing insurance coverage to employees participating in single employer, defined benefit pension plans. The first part of this investigation examines the micro and macro economic factors that impact the financial stability and actuarial viability of PBGC. A second section discusses externalities that may contribute to suboptimal premiums and adverse selection for PBGC. A linear control model is introduced to analyze the most effective way PBGC might use its $100 million credit line with the Department of the Treasury. In addition, a model based on the economic theory of clubs develops relationships …

Sv Mixture Models With Application To S&P 500 Index Returns, Garland B. Durham

Finance

Understanding both the dynamics of volatility and the shape of the distribution of returns conditional on the volatility state is important for many financial applications. A simple single-factor stochastic volatility model appears to be sufficient to capture most of the dynamics. It is the shape of the conditional distribution that is the problem. This paper examines the idea of modeling this distribution as a discrete mixture of normals. The flexibility of this class of distributions provides a transparent look into the tails of the returns distribution. Model diagnostics suggest that the model, SV-mix, does a good job of capturing the …

Surge In Islamic Finance Service Industry, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The last five years have witnessed a huge expansion in the Islamic Finance Service Industry (IFSI). The current assets are estimated at over $ 500 billion in Islamic banking segment alone. More than 250 Shariah-compliant mutual funds are currently managing about US 11 billion dollars in assets. Corporate and sovereign sukuk bonds amounting to about $ 18 billion have been issued so far. The annual market capitalization of the stocks meeting the Dow Jones Islamic Market Index Criteria in Islamic countries is estimated at US $ 300 billion. The total assets of all the banking and non-banking financial services being …

On The Use Of Size Premiums, Arithmetic Or Geometric Average Returns, And Liquidity Premiums In Determining Discount Rates, Hal B. Heaton

Faculty Publications

In recent court cases, a number of technical issues have arisen in determining appropriate discount rates for use in the discounted cash flow approach to valuation. This article examines three issues, reviews the literature about the issues, and summarizes the key considerations.

On The Segmentation Of Markets, Nicolas Laurent Jacquet, Serene Tan

Research Collection School Of Economics

This paper endogenizes the market structure of an economy with heterogeneous agents who want to form bilateral matches in the presence of search frictions and when utility is nontransferable. There exist infinitely many marketplaces, and each agent chooses which marketplace to be in: agents get to choose not only whom to match with but also whom they meet with. Perfect segmentation is obtained in equilibrium, where agents match with the first person they meet. All equilibria have the same matching pattern. Although perfect assortative matching is not obtained in equilibrium, the degree of assortativeness is greater than in standard models.

The Shift From Defined Benefit Pensions To 401(K) Plans And The Pension Assets Of The Baby Boom Cohort, James Poterba, Steven Venti, David A. Wise

Dartmouth Scholarship

The rise of 401(k) plans and the decline of defined benefit plans will have an important effect on the wealth of future retirees. Changing demographic structure also will affect the aggregate stock of retirement wealth. We project the stock of assets held in retirement plans and the average retirement saving of retirees through 2040. Our projections show large increases in wealth at retirement, especially if the returns on corporate equities are comparable with historical returns. Retirement wealth will grow, however, even if equity returns fall substantially below their historical level.