Finance Commons^™

Bolstering The Startup Sector In Palestine And Its Potential Impact On Public Finance, Rabeh Morrar, Rand Jibril

An-Najah University Journal for Research - B (Humanities)

Objective: This study aimed to analyze of the ecosystem surrounding startups in Palestine in general, with a particular focus on public finance; specifically, how public authorities can enhance the regulatory framework and adopt incentive policies for startups and entrepreneurship to create a positive long-term impact on both the overall economy and public finance. Methodology: The study's methodology primarily involved conducting in-depth interviews with a sample of all stakeholders related to the Palestinian startup ecosystem. This included government entities, relevant public bodies, startups, entrepreneurs, accelerators, incubators, venture capital funds, universities, innovation centers, and legal entities. Results: The study reached several important …

Do “Say-On-Pay” Votes Affect M&A Decisions?, Shantanu Dutta, Micah S. Officer, Ruixiang Wang, Pengcheng Zhu

Finance Faculty Works

This paper demonstrates that firms receiving above-industry-average support in their “say-on-pay” (SoP) votes engage in more M&A transactions in the subsequent year. Our empirical findings suggest that high levels of SoP voting support may boost managerial confidence, thereby stimulating increased pursuit of acquisitions. Moreover, we observe that managers garnering higher SoP vote support are more likely to secure shareholders' backing in M&A votes, receive higher compensation in successful deals, and face a reduced likelihood of forced turnover following unsuccessful deals. Additionally, we find that both short-term and long-term M&A performance significantly improves in deals announced by managers receiving higher SoP …

Firm-Level Climate Change Risk And Corporate Debt Maturity, John W. Goodell, Alessia Palma, Andrea Paltrinieri, Stefano Piserà

University Research

Exploiting a sample of worldwide listed firms, we explore the effect of firm-level climate change exposure on debt maturity structure. We find that climate change risk is negatively and statistically significantly associated with long-term maturity debt issuance. Further, we find that the climate change risk-debt maturity structure relationship is non-linear and changes according to firm-specific, country legal origins and macroeconomic conditions. We confirm our results by running several robustness tests to reduce endogeneity concerns, sample selection biases, and econometric model specification. Taken together, our evidence reveals firm debt maturity preferences when climate change risk increases, extending the literature on both …

A New Value Investment Formula For Turing Complete Blockchains With Proof Of Stake Algorithm, Francesco Spinoglio

Journal of New Finance

This paper proposes an adaptation of Benjamin Graham's value investment formula to the context of Turing complete blockchains with proof-of-stake (PoS) consensus algorithm. The research examines the specific characteristics of these blockchains, taking into account metrics such as total value locked (TVL), Network Value to Transaction Ratio (NVT), average benchmark reward rate and annual rewards received for staking. A methodology will be developed that integrates Graham's fundamental principles with the economic and technical particularities of the crypto ecosystem, providing a robust framework for the evaluation of digital assets in these innovative environments.

Effects Of Regulations On Digital Asset Prices: Evidence From The Counter-Strike Game Series, John Logan Stewart

Mahurin Honors College Capstone Experience/Thesis Projects

Counter-Strike: Global Offensive and Counter-Strike 2 are first-person-shooter video games in which players can own cosmetics for their weapons, known as “skins”. These skins can be traded, bought, or sold through various means. This study seeks to examine the effects of a regulation implemented by developers of the game which banned the sale and trade of a common tax-free medium of exchange (case keys) for these skins and seeks to classify them as either a utility-based collectible or purely a digital commodity like cryptocurrencies. Using a novel and expansive panel data set gathered from the Steam Market and econometric models …

Rethinking Retained Earnings In The Additional Funds Needed Formula, James E. Larsen

Finance and Financial Services Faculty Publication

This paper critically re-evaluates the traditional application of the Additional Funds Needed formula by analyzing alternate interpretations of retained earnings. It illustrates how definitional shifts influence capital forecasts with a more nuanced approach to financial modeling in growth scenarios. The approach emphasizes numerical clarity, policy realism, and adaptability for financial planning. The paper challenges conventional AFN usage by embedding definitional flexibility and temporal awareness, offering decision-makers clearer visibility into funding sensitivity. It reframes AFN as a dynamic planning tool rather than a static formula, with implications for forecasting, policy-setting, and strategic finance.

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 …

Covariance Matrix Forecasting Of Equity Portfolios, Michael Nebor

Graduate Research Theses & Dissertations

This dissertation consists of two papers. The first paper introduces DCC-SVR, a hybrid Dynamic Conditional Correlation (DCC) and Support Vector Regression (SVR) method of forecasting the covariance matrix. This paper shows that DCC-SVR is able to outperform the traditional methods of DCC and rolling historical on multiple data sets. Performance is shown for both standard GARCH and GJR-GARCH methods. This paper also analyzes performance when dimensions are increased to 49 dimensions and when an application using equal weighted portfolio allocation is used.

The second paper introduces a covariance matrix forecasting method based on copula-GARCH simulated returns. The accuracy of this …

Efficient Algorithms For Nearest Correlation Matrix Computation With Missing Data, Ibrahim Eniola Oyeyinka

Graduate Research Theses & Dissertations

This thesis investigates efficient algorithms for computing the Nearest Correlation Matrix (NCM) under incomplete financial data. Correlation matrices are vital in portfolio optimization and risk management, yet empirical estimates often violate symmetry, positive semidefiniteness, and unit diagonal conditions due to missing observations. Two projection-based methods are analyzed: the Modified Alternating Projections (MAP) and Anderson Acceleration (AA). Theoretical analysis using convex optimization and normal cone characterization supports numerical evaluation on synthetic and real-world stock-return matrices (550×550, 2020–2025). Missing data are modeled through Missing Completely at Random (MCAR) and Not Missing at Random (NMAR) mechanisms. The results show that AA converges faster …

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 …

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 …

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 …

Pay-Performance Sensitivity: How Firm Performance Impacts Ceo Compensation, Yuefeng Ma

CMC Senior Theses

This study investigates the relationship between firm performance and CEO compensation, revisiting and extending the foundational framework established by Jensen and Murphy (1990). The sample comprises compensation data for the Chief Executive Officer (CEO) of all publicly traded companies on the Wharton Research Data Services (WRDS) Compustat – ExecuComp dataset from 1994 to 2023. Using Ordinary Least Squares (OLS) regression models, the analysis evaluates the sensitivity of CEO pay to changes in shareholder wealth and other performance metrics, while accounting for structural and temporal shifts driven by corporate governance, macroeconomic environment, and legislation. The findings reveal that changes in shareholder …

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 …

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 …

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 …

Market Implied Risk-Free Rates: An Analysis Of The Put-Call Parity Implied Rate, Silviu Velovici

CGU Theses & Dissertations

This study investigates the interest rate implied by put-call parity as an alternative, market-based proxy for the risk-free rate. Studying the implied risk-free rate from option prices is important because it provides insights into how market participants collectively perceive short-term financing conditions, independent of official Treasury-Bill yields. Since Treasury securities and the LIBOR are conventionally used as proxies for the risk-free rate, any persistent discrepancy between the put-call parity implied rate and the Treasury-Bill rate, or the put-call parity implied spread, can be interpreted as a signal of market frictions, investor behavior anomalies, sentiment-driven pricing dynamics, or information asymmetries.

By …

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. …

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 …

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 …