Finance Commons^™

Optimizing Bitcoin Allocation: Predictability Of Bitcoin Portfolio Weights Through Macroeconomic Variables, Kirby Baynes

CMC Senior Theses

This thesis examines whether Bitcoin is a beneficial asset in a diversified, mean-variance optimized portfolio and whether its portfolio weights can be reliably predicted using macroeconomic variables. Using data from December 2013 to February 2025, the analysis applies rolling-window portfolio optimization and OLS regressions with Newey-West standard errors to test the relationship between Bitcoin allocations and a set of macroeconomic indicators. Results show that Bitcoin receives non-zero weights across portfolios and that its optimal allocation is sensitive to variables such as changes in the Credit Spread and Yield Curve. These variables were statistically significant in several models and produced meaningful …

Where Does The Money Go? Three Essays On Intergovernmental Transfers, Spending, And Poverty In Indonesia, Jacobus Cd Rijoly

Theses and Dissertations--Public Policy and Administration

Indonesia allocates substantial intergovernmental transfers to local governments; nonetheless, the decrease in poverty remains limited. This dissertation posits that the binding constraint is institutional, specifically the regulations and incentives that dictate the extent to which funds are allocated from the government to designated programs. Institutional pass-through refers to the fraction of a transfer that is allocated to a program expenditure. The three essays integrate estimation, budget composition evidence, and a formal model to explain both modest average effects and heterogeneity across regions and programs.

The first essay evaluates the impact of transfers on provincial poverty from 2001 to 2022 by …

Digital-Only Banks – Retail Banks For Retail Customers Only?, Katarzyna Schmidt-Jessa, Maciej Stradomski

Journal of Banking and Financial Economics

This paper explores how traditional banks perceive digital-only banks and the potential impact of digital-only banks on the retail segment of the banking sector. To obtain the main goal, we conducted in-depth semi-structured interviews with managers and directors representing different traditional banks with profound insight into the bank digitalisation process. The results indicate that, for traditional banks, the development of digital-only banks does not pose a threat or challenge that can significantly undermine their business. A high level of user experience, innovativeness, and lack of obsolete processes and technologies are the main advantages of digital-only banks that attract retail customers. …

Personal Finance – Emerging Issues And Trends. Opening Remarks, Katarzyna Kochaniak, Witold Gradoń

Journal of Banking and Financial Economics

Personal Finance – Emerging Issues and Trends. Opening Remarks

Generational Perspective Of Financial Literacy And Consumer Over-Indebtedness. Survey Evidence From Poland, Beata Świecka

Journal of Banking and Financial Economics

Background and purpose of the article: The main aim of the article is to present financial literacy (FL) and consumer over-indebtedness (OI) according to the primary survey in Poland. The auxiliary aim is to analyse the importance of financial literacy in reducing consumer over-indebtedness from a generational perspective. Over-indebtedness is a significant problem in personal finance because it leads to a situation in which household members cannot settle their financial obligations on time, negatively affecting their economic stability and prospects for long-term financial security (D’Alessio, Iezzi, 2013). It is becoming increasingly common in the country and around the world. It …

Social And Commercial Crowdfunding Through The Lens Of The Theory Of Planned Behaviour And Financial Well-Being, Joanna Adamska, Urszula Mrzygłód

Journal of Banking and Financial Economics

A unique feature of crowdfunding is that it relies on numerous individuals contributing financially to the project, which sets it apart from traditional financing channels. Unlike banks, where funding decisions are subject to strict prudential criteria and the creditworthiness of the borrowing entity, crowdfunding projects appeal to various worldviews and values held by potential backers. Therefore, the financial decision to support the crowdfunding project becomes a unique problem in personal finance. This study aims to analyse the psychological and financial factors influencing crowdfunding participation, comparing social and commercial projects using the Theory of Planned Behaviour (hereinafter: TPB) and subjective financial …

The Right Of Big Tech Companies To Issue Money In The Opinion Of Consumers From France And Germany, Robert Huterski

Journal of Banking and Financial Economics

With a vast customer base and the acquisition of information about their customers and their preferences in connection with their services, Big Tech companies are also becoming essential players in the financial sphere. Payment solutions offered by Big Tech companies, such as Google Pay or Alipay, familiarise consumers with the presence of such companies in the monetary sphere. The issuance of private money has the most excellent chance in a form regulated by public authorities and with a value stabilized to the national currency, regardless of whether it would be similar to narrow banking, synthetic CBDC or another, related form. …

Is Knowledge Really Power And Ignorance Bliss? A Study Of Financial And Pension Ignorance, Agata Olechnowicz-Szewczyk, Elżbieta Babula

Journal of Banking and Financial Economics

In this study, we examine the impact of financial and pension ignorance (information avoidance) on the decisionmaking process for long-term savings. We define the concept of pension ignorance, as active avoidance of retirement information, failure to make decisions regarding retirement savings, and a lack of strategic retirement planning. To assess financial ignorance, we utilized the scale developed by Barrafrem et al. (2024), while pension ignorance was evaluated using the scale designed by the authors. The study was conducted with a sample of 1,200 Polish residents aged 18 to 65, using the Computer-Assisted Web Interviewing (CAWI) method. The findings reveal that …

European Household Savings Dynamics: Under Inflation And Post-Pandemic Shocks, Mateusz Mierzejewski, Julia Szczurek

Journal of Banking and Financial Economics

The Covid-19 pandemic, which began in early 2020, triggered a global health and economic crisis, leading to unprecedented changes in consumer behaviour and the functioning of national economies. This article examines the impact of the pandemic and the subsequent inflationary crisis on household savings levels in selected European countries. The analysis includes an assessment of household responses to changing macroeconomic conditions, such as inflation, interest rates, and household incomes, as well as the effectiveness of implemented monetary and fiscal policies. The study employs a neural network model considering autoregressive relationships in a panel data approach. The research covers data from …

Financial Vs Psychological Wellbeing Of Generations X, Y, And Z Consumers In Poland, Mirosława Kaczmarek

Journal of Banking and Financial Economics

Empirical research confirms that the financial behaviour of consumers differs from generation to generation – in terms of saving, spending money and also the use of credit. The main objective of this article is to determine the level of financial wellbeing and the relation between psychological wellbeing and financial wellbeing across three consumer age cohorts – generations X, Y and Z in Poland. To achieve this, a CAWI survey was conducted using the Consumer Financial Protection Bureau scale and the Ryff’s Psychological Wellbeing Scale. The results of the F-test show that although generational belonging does not statistically significantly differentiate financial …

Personal Characteristics And Retirement Intentions (Empirical Evidence From Poland), Patrycja Kowalczyk-Rólczyńska, Madgalena Swacha-Lech, Łukasz Jurek

Journal of Banking and Financial Economics

Retirement intentions depend on a number of different factors. The aim of this paper is to assess the impact of personal characteristics on the willingness to retire as soon as possible among older workers in Poland. The data were collected through a CAWI survey conducted in 2021 among a representative sample of workers aged 50 and over. Statistical analysis was based on logit model. Identified predictors are: age, education, fear about the financial situation in retirement, the use of free time after retirement, and lack time to pursue passions due to work. Those results provide suggestions for strengthening active ageing …

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 …

Art As Asset: The Rise Of The Financialized Art Market And The Abstraction Of Value, Kenneth Knothe

Pitzer Senior Theses

This thesis investigates the financialization of art through the expanding use of art-backed loans and institutional involvement. It focuses on how artworks—once primarily valued for their aesthetic or cultural significance—are now routinely treated as financial assets within the art market. The paper uses case studies from Sotheby’s Financial Services and Mitchell F. Chan’s blockchain-based reinterpretation of Yves Klein’s Zones of Immaterial Pictorial Sensibility. Drawing on the work of Walter Benjamin, Pierre Bourdieu, and Wendy Brown, it argues that this shift undermines museums’ roles as cultural stewards and redefines the meaning of value in the art world to something more quantifiable. …

The Counter-Cyclicality Of Earnings Management: Evidence Through 2024, William J. Hall

CMC Senior Theses

This thesis examines the relationship between macroeconomic conditions and earnings management, extending the analysis of Hillegeist and Lin (2019) using updated data through 2024. Based on 16,635 firm-quarter observations, my study affirms the results found in prior literature and confirms that there is a negative association between the change in GDP and the direction of firms’ earnings management behavior, indicating that earnings management is counter-cyclical. My study also finds that firms manage earnings asymmetrically based on the current macroeconomic state, with firms managing earnings more in economic downturns and less in expansions. My findings suggest that despite major macroeconomic and …

Analysis Of Banking-As-A-Service Partnerships’ Effects On The Performance Of U.S. Community Banks, Jonathan Ke

CMC Senior Theses

Over the past decade, financial technology (fintech) has emerged as an innovation reshaping the financial services landscape. One particular fintech that recently caught the attention of consumers and regulators is Banking-as-a-Service (BaaS). BaaS is often a partnership wherein a fintech company provides banking services, such as digital payments or lending, using the infrastructure and license of a sponsor bank. The bank manages regulatory compliance and core banking operations, while fintech focuses on developing and delivering innovative services to customers. On the one hand, BaaS partnerships allow banks to expand their customer base and service offerings without investing in extensive technological …

Equipping Financial Coaches: Training And Resource Department At Western Kentucky University Center For Financial Success, Lily Martin

Mahurin Honors College Capstone Experience/Thesis Projects

Established in 2011, The Center for Financial Success (CFS) housed in the Gordon Ford College of Business at Western Kentucky University, seeks to aid the university and regional community in becoming financially informed and independent. This is achieved through peer-to-peer coaching and applied financial education. The student financial coaches are at the heart of this project, as they are essential to the CFS fulfilling its mission. Their responsibilities include conducting one-on-one financial coaching sessions with students, managing an applied personal budgeting experience for the Personal Finance class (FIN 161), and delivering presentations on financial literacy topics to various organizations, both …

Evaluating The Dual-Faceted Growth Strategies In The Healthcare Sector: A Comparative Analysis Of Organic Innovation And Inorganic Expansion, Isabel Carter

CMC Senior Theses

In order to stay competitive in an expansionary industry like healthcare, companies must consistently meet market demands for growth. This paper builds an empirical model to identify which growth strategies are most highly rewarded by the public markets. The model consists of a data set of 70 healthcare companies, across various healthcare verticals, to measure market returns from 2010 to 2023. The number of completed acquisitions is used as a proxy to identify each company’s propensity towards a growth strategy. Factors from the Fama-French Model and dummy variables used to signal growth strategy expertise, indicate that firms who invest more …

Digital Platform Transitions In The Finance Industry: Three Essays, Cheryll-Ann Wilson

2025

This three-paper dissertation is motivated by an emerging dichotomy in the financial sector: an increasing use of an open-source digital platform—the Python platform—in an industry that historically has been wedded to proprietary systems.

Chapter 1 is a qualitative pilot study to ascertain which factors are likely to motivate investment professionals to select Python versus other tools and/or technologies. I find that efficiency and access to industry-specific libraries—notably Pandas and NumPy—are significant motivators in their selection of Python over Excel. Chapters 2 and 3 examine the issues through a sequential, exploratory mixed methods approach.

Chapter 2—the qualitative field study—investigates how and …

Crowding-In Between Public And Private Investment In Developing Countries, Wally Bargeron

CMC Senior Theses

The tendency for public investment to crowd-in or crowd-out private investment is the subject of controversy in economic literature. This paper studies the relationship between public and private investment in fixed capital from 1970 to 2019 in 68 developing countries across Africa, Asia, Eastern Europe and Latin America. I find evidence for a crowding-in relationship between public and private investment overall. The crowding-in effect is larger in countries with high scores for measures of good governance, including a score that measures legal framework for businesses and a score that measures corruption.

National And Regional Bank Deposits And Their Relationship To The Stock Market, Joseph Zhong

CMC Senior Theses

Institutional investors started using bank deposits as a Leading Economic Indicator to predict stock market returns. I find that bank deposits lead stock market returns by 2 weeks at the national level. Examining the mechanism through which bank deposits affect stock market returns, existing literature postulates the Bank Deposit Lending Channel: increased bank deposits increase financial liquidity, powering and leading stock market returns. I do not find evidence for the Bank Deposit Lending Channel. In my regional analysis, I find that bank deposit behavior differs drastically between US regions. In general, regional bank deposits still lead stock market returns. In …