Finance Commons^™

Financial Knowledge And Financial Literacy At The Household Level, Alan L. Gustman, Thomas L. Steinmeier, Nahid Tabatabai

Dartmouth Scholarship

There is evidence of a relation between numeracy and wealth held outside of pensions and Social Security. With pensions and Social Security accounting for half of wealth at retirement, and evidence that those with pensions save more in other forms, one would expect to find knowledge of pensions and Social Security influencing retirement saving. Yet we find no evidence that knowledge of pensions and Social Security is related to nonpension, non-Social Security wealth, to numeracy, or that it plays an intermediate role in the numeracy-wealth relation. Our findings raise questions about policies that would enhance numeracy to increase retirement saving.

Options Vs. Futures: Which On Average Will Have The Greater Payoff?, Ryan Silvester

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

The use and idea of futures contracts has been around for almost as long as humans have existed. Many of these contracts can be as simple as the shaking of someone’s hand with the agreement to trade an asset for an agreed upon price in the future. These contracts have often been used by farmers to ensure a needed price for an asset, or for a store owner to ensure a needed asset for a given price. The idea of a futures contract is to either buy or sell an asset later on at a specified price. In this paper …

How Are Interest Rates Affecting Household Consumption And Savings?, Lacy Christensen

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper explores the optimal interest rates that could potentially maximize overall consumption and savings. I attempt to determine whether artificially low interest rates are positively or negatively affecting consumption. There has been speculation on whether the United States needs to raise the effective federal funds rate to provide financial institutions the incentive to lend money and increase household consumption. The Federal Reserve is currently keeping the effective funds rate between 0 and .25 in hopes of increasing consumption levels. This paper uses fifty years of interest rate data to narrow in on an optimal interest rate that leads to …

Efficiency Of Fiscal Expenditures In Nevada Elementary Schools Using Data Envelopment Analysis, Todd Patrick Yocum

UNLV Theses, Dissertations, Professional Papers, and Capstones

For decades educational researchers have attempted to find links between school funding and student achievement. These attempts have generated many contradictory viewpoints and have produced many unanswered questions. Ever increasing accountability on states, districts and schools combined with severe financial strain has made measuring school fiscal efficiency a valuable tool for school leaders looking to get more student achievement with fewer resources.

The methodology for this study was comprised of two phases. Phase I analyzed the per pupil expenditures of Nevada elementary schools over a three-year period and developed descriptive statistics that revealed the expenditure patterns by category. Phase II …

Valuation Of Financial Derivatives Subject To Liquidity Risk, Yanan Jiang

UNLV Theses, Dissertations, Professional Papers, and Capstones

Valuation of financial derivatives subject to liquidity risk remains an open problem in finance. This dissertation focuses on the valuation of European-style call option under limited market liquidity through the dynamic management of a portfolio of assets. We investigate liquidity from three perspectives: market breadth, depth, and immediacy. We present a general framework of valuation based on the optimal realization of a performance index relative to the set of all feasible portfolio trajectories. Numerical examples are then presented and analyzed that show option price increases as the market transitions from liquid to less liquid state. Furthermore, buying and selling activities, …

The Greek Financial Crisis: An Overview Of The Crisis In Entirety And Proposed Measures: Recommended Solutions And Results, Androniki Podaras

Honors College Theses

This paper examines the Greek financial crisis from 2009 in entirety and analyzes the best option for economic growth from this point forth. The history and culture of Greece is discussed, along with a background of the economy and several economic policies that led to the increased debt levels and the poor economic health of the country. The Gross Domestic Product of Greece and the inflation levels are analyzed to show the changes and signs of poor economic health, and one that was affected by the entry into the Eurozone in 2000.

Then, I discuss how this led to the …

Off The Cliff And Back? Credit Conditions And International Trade During The Global Financial Crisis, Davin Chor, Manova Kalina

Research Collection School Of Economics

We examine the collapse of international trade flows during the 2008-2009 global financial crisis using detailed data on the evolution of monthly U.S. imports over the November 2006 - April 2009 period. We show that credit constraints and the reduction in the availability of external capital were an important channel through which the crisis affected trade volumes. We identify the effects of credit tightening by exploiting the variation in the cost of capital across countries and over time, as well as the variation in financial dependence across sectors. We find that countries with higher interbank interest rates and thus tighter …

The Household's Savings And The Industrial Production : A Time Series Analysis For Poland, Michal Wojewodzki

Lingnan Journal of Banking, Finance and Economics

In this paper the author will examine the short and long-run causality between the growth rate of households‟ savings in the consolidated banking system in Poland, and the Polish economic growth rate (using the industrial production index as its proxy). This research paper will cover Poland‟s economic development over the periods 1997 to 2010 (in a quarterly approach). The main purpose of this paper is to shed light on the direction of the causality between saving and growth, so that the Polish policymakers can either focus on policies promoting growth or focus on saving policies in order to effectively and …

A Quantitative Study Of Influential Factors On Hibor Under Hong Kong's Linked Exchange Rate System, Jianbin Situ

Lingnan Journal of Banking, Finance and Economics

Hong Kong Inter-Bank Offered Rate (HIBOR) is one of the most important interest rates in the Hong Kong money market. This paper studied some of the significant factors in determining HIBOR under Hong Kong‟s Linked Exchange Rate System using a VAR model to describe how various factors affect the movement of HIBOR. The result indicates that HIBOR, foreign exchange rate and M1 are correlated.

Herding Evidence In Chinese Stock Market : A Study Of The Relationship Between Stock Price Index And Trading Volume Based On Behavioral Finance Theory, Xiaofeng Zhao

Lingnan Journal of Banking, Finance and Economics

Over the last couple decades, more evidence has been found supporting the notion that investors are not always rational. Herding behaviors have been observed in both the stock market crash1 and financial bubbles2, which were beyond the understanding of modern finance theory. In this paper, the herding phenomenon was explored in the Chinese stock market by the study of the relationship between stock prices and trading volume over the past 7 years. It was found that the change of price is statistically significant to have caused the change of trading volume, but the reverse is not true. Theoretically, this identifies …

Analysis On Accrual-Based Models In Detecting Earnings Management, Tianran Chen

Lingnan Journal of Banking, Finance and Economics

This paper analyzes the problems with the alternative accrual-based models in detecting earnings management. The researcher will focus on comparing the Jones Model and the Modified Jones Model, which are the two most frequently used model in empirical analysis nowadays. Earnings management is a kind of management which uses accounting techniques to meet the executives‟ needs for earnings; it is a widely debated topic, hence it is worth looking at. Experts and professionals in this area found many approaches to detect the earnings management; within these approaches are the accrual-based models which include the modified Jones model, which currently is …

The Uncovered Interest Rate Parity Failure From 2002 To 2005 : An Implicit Consensus Of Carry Trade, Yui Law

Lingnan Journal of Banking, Finance and Economics

There are many literatures devoted to the study of the uncovered interest parity (UIP); however, majority of them focus on whether UIP exists and only a few concentrate on the pattern of the UIP failure. By using a panel VAR approach, this paper compares the intensive carry trade period, between 2002 and 2005, and the pre-intensive carry trade period, between 1998 and 2001. The results show that during the intensive carry trade period UIP failure was caused by the self-fulfilling behaviour of investors. High interest rate currencies made investors believed that the currencies would appreciate and bided their price even …

How Can Saving Deposit Rate And Hang Seng Index Affect Housing Prices : An Empirical Study In Hong Kong Market, Tao Tang

Lingnan Journal of Banking, Finance and Economics

The main objective of this paper is to examine the impact of savings deposit rate and Hang Seng index on real estate prices in Hong Kong Market. Two different periods are chosen to conduct this research: one period is the deflationary time, from 1998 to 2003, and the other is the reviving economical time from 2004 to 2007. The aim of this research is to examine the influences of these variables in different economic conditions, and find out whether there are any causal effects amongst them.

The Benefits Of Introducing A Housing Price Index Future In Hong Kong, Yingsi Feng

Lingnan Journal of Banking, Finance and Economics

It is widely recognized and accepted that, financial innovation such as options and futures can help to manage risk, speculate, arbitrage and discover price in financial markets. As such, the researcher believes that the introduction of a Housing Price Index Futures in Hong Kong can greatly improve the investment environment in Hong Kong‟s property market. Therefore, the purpose of this paper is to perform a feasibility study of the proposed Housing Price Index Futures in Hong Kong financial Market, to reveal the crucial need of this innovation for the betterment of the real estate market in Hong Kong, and the …

Evidences Of High Sensitivity Of Investors To Financial News After Crises : Cases Study Of Asian Financial Crisis And Sub-Prime, Yui Law

Lingnan Journal of Banking, Finance and Economics

In the academic field of international stock market, some critics argue that, after having a global financial crisis, stock markets around the world will become more integrated. In fact, many researchers have put forward empirical works showing that the co-relation, or Granger-Causality, among different stock markets, strengthens comparatively at the post crisis period. This finding is rational; however, the explanation given for the increased co-movement after the crisis is not sufficient. The critics suggest that this increase is caused by the increase in international arbitrage activities and the higher degree of integration among markets. The Purpose of this paper is …

Implications Of A Managed Floating Exchange Rate System On The Interest-Rate Behavior Of Singapore, Jingjing Wei

Lingnan Journal of Banking, Finance and Economics

Singapore and Hong Kong are two similar economies, but they have rather different monetary systems and exchange-rate regimes. Singapore’s managed floating exchange rate regime contrasts with Hong Kong’s currency board system (CBS) featured by the Hong Kong–United States dollar peg. In this paper, we appraise the implications of the managed floating exchange rate regimes on the interest-rate behavior of Singapore. We examine the Singapore-US interest differential under the Singapore’s exchange-rate regimes during the Asian Financial Crisis (AFC), current Global Financial Crisis and none-crisis periods by using generalized autoregressive conditional heteroscedasticity (GARCH) model. We hope that the good performance of Singapore’s …

Analysis Of Hong Kong To Be An Offshore Financial Center Of Rmb, Qichao Song

Lingnan Journal of Banking, Finance and Economics

In this article we aim to discuss the possibility and feasibility as well as the disadvantages and barriers for Hong Kong to be an offshore financial center of RMB. As the most biggest financial center in China, Hong Kong need to develop the RMB business for strengthening its position in the international competition. And we think that to become an RMB offshore financial center is not only an opportunity but also a responsibility for Hong Kong. We also give some suggestions on this issue.

Citizens’ Satisfaction With The Sar Government's Overall Performance In Post-Colonial Hong Kong : Result Of Ols Analysis, Luo Yang

Lingnan Journal of Banking, Finance and Economics

Through studying of the impact of the Hong Kong Special Administration Region government’s performance in various policy areas upon the level of citizen’s satisfaction with the government’s overall performance, this paper confirms the general wisdom that economic development is an important source of citizens’ satisfaction with the government’s performance. It further proves that, government’s performance on democratic development and freedom of speech and assembly are also very powerful variables in the model and its partial coefficients are impressive.

An Experimental Study About Effective Factors Of First-Day Offer Pricing : Taking Stock Markets As An Example, Yi Liu

Lingnan Journal of Banking, Finance and Economics

The author examines the literature with respect to the pricing of initial public offerings and focus upon the effective factors of pricing. Using a data base of all share offerings undertaken in Hong Kong over a one year period (in 2007), the author finds that there is considerable evidence for the proposition that large and well-capitalized companies tend to price their share offerings at a higher absolute level in order to get a higher level of first-day closing price. Using classical statistical methods, the author finds that the pricing strategy of offering companies is connected to shareholders’ desire of the …

The Fall Of Long-Term Capital Management, Xiaowei Guo

Lingnan Journal of Banking, Finance and Economics

The author examines the literature with respect to the pricing of initial public offerings and focus upon the effective factors of pricing. Using a data base of all share offerings undertaken in Hong Kong over a one year period (in 2007), the author finds that there is considerable evidence for the proposition that large and well-capitalized companies tend to price their share offerings at a higher absolute level in order to get a higher level of first-day closing price. Using classical statistical methods, the author finds that the pricing strategy of offering companies is connected to shareholders’ desire of the …