Finance Commons^™

Capital Structure And Political Connections: Evidence From Gcc Banks And The Financial Crisis, Fatma Ahmed, David Macmillan

Economics

Abstract Purpose – This paper investigates the effect of political connections on the capital structure of banks before and after the financial crisis in Gulf Cooperation Council (GCC) countries. Design/methodology/approach – This paper employs the natural experiment that the financial crisis offers and uses a difference-in-differences model to investigate the effect of political connections on capital structure. Capital structure is measured by the total debt to total assets ratio. Control variables include bank size, growth, profitability, coverage ratio and volatility. The research sample includes all the banks in the GCC from 2005 to 2016. Findings – The authors find that …

Towards Better Data Augmentation Using Wasserstein Distance In Variational Auto-Encoder, Zichuan Chen, Peng Liu

Research Collection Lee Kong Chian School Of Business

VAE, or variational auto-encoder, compresses data into latent attributes, and generates new data of different varieties. VAE based on KL divergence has been considered as an effective technique for data augmentation. In this paper, we propose the use of Wasserstein distance as a measure of distributional similarity for the latent attributes, and show its superior theoretical lower bound (ELBO) compared with that of KL divergence under mild conditions. Using multiple experiments, we demonstrate that the new loss function exhibits better convergence property and generates artificial images that could better aid the image classification tasks.

A Political Reciprocity Mechanism, Roland Pongou, Jean-Baptiste Tondji

School of Economics and Finance Faculty Publications

We consider the problem of designing legislative mechanisms that guarantee equilibrium existence, Pareto-efficiency, and inclusiveness. To address this question, we propose a finite-horizon voting procedure that embeds clauses of reciprocity. These clauses grant voters the right to oppose actions that are not in their interest, retract actions that face opposition, and punish harmful actions. We study voters' strategic behavior under this voting procedure using two classical approaches. Following the blocking approach, we introduce two related solution concepts---the reciprocity set and the sophisticated reciprocity set---to predict equilibrium policies. We then show that these solution concepts (1) are always non-empty; (2) only …

Association Between Financial Education, Affective And Cognitive Financial Knowledge, And Financial Behaviors, Lucy M. Delgadillo, Yoon Lee

Applied Sciences, Technology and Education Faculty Publications

Using data from the 2018 National Financial Capability Study, this paper examined the relationship between financial education participation and affective and cognitive financial knowledge. Involvement in financial education yielded statistically significant associations between affective and cognitive domains. The results showed that participation in financial education was associated with both cognitive and affective financial knowledge as well as long-term financial behaviors. The findings supported the case for life-long learning of financial education for young adults, Blacks and Hispanics, and women. One important implication was the need to include both the affective and cognitive domains when teaching or researching financial education.

Financial Market Integration In Latin America, Obed Fernando Izaguirre Lozano

LSU New Orleans Theses and Dissertations

This dissertation is entitled ’Financial Market Integration in Latin America" and consists of two empirical studies. The first chapter is called ’Financial Market Integration between Latin America and the US". This empirical analysis focuses on the comovement between the US and major Latin American countries around free trade agreements. The results show that comovement thus financial integration has increased after the trade agreements for all the countries except for Brazil. The studied sector indices show that countries that have a free trade agreement with the US showed an increase in integration among sectors. The second empirical study is called ’The …

The Impact Of Climate Change On The Cost Of Bank Loans, Siamak Javadi, Abdullah Al Masum

School of Economics and Finance Faculty Publications

We find that firms in location with higher exposure to climate risk pay significantly higher spreads on their bank loans. This result is robust to different measures of climate risk. Exploiting the economic link between a firm and its customers, we find that the exposure of a firm’s customers to climate risk adversely affects that firm’s cost of borrowing. In the cross-section, we find that the effect is mainly driven by long-term loans of poorly rated firms that are highly exposed to climate risk. Overall, our evidence suggests a slow increase in lenders’ attention to climate risk and that lenders …

Multinationality And The Value Of Green Innovation, Incheol Kim, Christos Pantzalis, Zhengyi Zhang

School of Economics and Finance Faculty Publications

Highlights

• High exposure to foreign markets with more stringent environmental regulations stimulates MNCs' green patent applications.

• The pursuit of green innovation is positively associated with firm value in the long run.

• This long-run advantage is more significant when MNCs' home countries rely on more clean energy for power generation, have a more developed economy and have a more effective government.

• MNCs' environmental competitive advantage is coupled with exposure to MNCs' host countries with high long-term and femininity orientations.

Abstract

When do multinational corporations (MNCs) derive the most from internalizing the transfer of proprietary technological knowhow? We revisit this question, which …

Financing Singapore’S Smes And The Crowdfunding Industry In Singapore, Swee Liang Tan, Yoke Wang Tok, Chansriniyom Thitipat

Research Collection School Of Economics

As new digital technologies emerge that make the provision of financial services more efficient, they hold the potential to address barriers that SMEs face in accessing credit. This paper finds empirical evidence that crowdfunding for SMEs improved SMEs’ timeliness to pay debt in Singapore. Anecdotal evidence from growing SMEs suggests that getting crowdfunding loans also induced financing from banks, leading to more efficient allocation of credit. In just four years, Singapore’s crowdfunding volume has grown rapidly making it one of the top crowdfunding hubs in Southeast Asia in 2018. The rapid development of Singapore’s crowdfunding industry can be attributed to …

Monetary Policy Surprises, Stock Returns, And Financial And Liquidity Constraints, In An Exchange Rate Monetary Policy System, John M. Sequeira

Research Collection Lee Kong Chian School Of Business

This study examines the impact of monetary policy surprises on the stock price behaviour of a small developed economy, whose monetary policy is based on the exchange rate. We find that monetary policy surprises associated with all contractionary policy levers and a neutral policy lever, have a consistently significant and negative impact on stock returns. In comparison, only monetary policy surprises associated with a downward re-centering policy lever, has a significantly positive effect on stock returns. Using a recalibrated classification system, we also find that monetary policy surprises differ across sectors of the economy. Our results show how monetary policy …

Predicting Financial Failure Using The Financial Indicators "An Empirical Study On The Services Sector Companies Listed On The Palestine Stock Exchange", Dr. Khaled Hasan Zubdeh

Journal of the Arab American University مجلة الجامعة العربية الامريكية للبحوث

The objective of this study was to examine the predictability of companies' failures by developing a mathematical model consisting of a set of financial ratios. In order to reach precise scientific results, the statistical analysis (SPSS) program was used and the financial data of the companies were subjected to multiple discrimination analysis for the fiscal years 2010-2017. The study was applied to the companies of the services sector listed on the Palestine Stock Exchange, that are ten companies out of 48 public companies listed on the Palestine Stock Exchange in all sectors. The researcher reached to a mathematical model consisting …

Improving The Bank Account Opening Process Using Lean Six Sigma Methodology At Palestine Islamic Bank- Case Study, Bara’ Al-Refai

Journal of the Arab American University مجلة الجامعة العربية الامريكية للبحوث

The purpose of this project is to improve the bank account opening process and save the time of opening a new bank account at Palestine Islamic Bank (PIB) by at least 20%, using Lean Six Sigma (LSS) methodology. To achieve this, the researcher used value tools of the LSS to gather data on the key measures for the account opening process in accordance with the DMAIC Methodology (Define, Measure, Analyze, Improve and Control), and the root causes for the extra-long time required to open a new bank account. The results showed that the implemented test at Al-Bireh branch has reduced …

Islamic Bank Amid The 2008 Global Financial Crisis: A Bibliometric Analysis, Maulidar -. Agustina Ms., M. Shabri -. Abd. Majid Prof. Dr., Hafasnuddin -. Hafasnuddin Dr.

Library Philosophy and Practice (e-journal)

This study aims to provide a bibliometric and science mapping analysis on the research area of Islamic banks and the 2008 global financial crisis published in the Scopus indexed database over the 2008-2021 period. The study used the VOSviewer software and MS Excel spreadsheet for data analysis. The study identified an increasing trend in publication on the topic. The study found that Alqahtani was the most productive author, while Bourkhis and Nabi were the highly cited authors. The authors from Malaysia were the productive publication, while the Journal of Islamic and Middle Eastern Finance and Management was found to be …

Emotional Finance: The Impact Of Emotions On Investment Decisions, Leef H. Dierks, Sonja Tiggelbeck

Journal of New Finance

Emotions have a decisive influence on individual investment decisions and thus on market developments. Collective behavior, which often prevails in markets, can trigger the development of speculative bubbles as, more often than not, investors rely on trust in an attempt to reduce the uncertainty and complexity prevailing in markets. Based on the developments surrounding German financial services provider Wirecard in 2020, this contribution explains why retail and institutional investors decided to trust the company's narrative in an attempt to reduce uncertainty, despite increasingly obvious large-scale accounting inconsistencies.

A Unified Market Model For Swaptions And Constant Maturity Swaps, Chyng Wen Tee, Jeroen Kerkhof

Research Collection Lee Kong Chian School Of Business

Internal-rate-of-return (IRR) settled swaptions are the main interest rate volatility instruments in the European interest rate markets. Industry practice is to use an approximation formula to price IRR swaptions based on Black model, which is not arbitrage-free. We formulate a unified market model to incorporate both swaptions and constant maturity swaps (CMS) pricing under a single, self-consistent framework. We demonstrate that the model is able to calibrate to market quotes well, and is also able to efficiently price both IRR-settled and swap-settled swaptions, along with CMS products. We use the model to illustrate the difference in implied volatilities for IRR-settled …

Digital Innovation: A Catalyst And Enabler Of Achieving Business Sustainability, Clarence Goh, Gary Pan, Poh Sun Seow, Shankararaman, Venky

Research Collection School Of Accountancy

Today, many companies are actively incorporating sustainability principles into their business strategies. This movement is likely to have resulted from an ongoing shift in the demands and behaviours of customers, employees, partners, governments, investors and other stakeholders that expect companies to act with integrity and in a way that benefits wider society. The emphasis on achieving sustainability goals has led to increasing adoption of “triple bottom line”, which suggests that companies ought to pay attention to more than just the bottom-line, but also measure their environmental and societal impacts that may help to achieve long-term business growth. Typically, companies with …

Preparing Accountants Of The Future: A Programme In Accounting Data And Analytics, Poh Sun Seow, Clarence Goh, Gary Pan

Research Collection School Of Accountancy

The accounting profession is rapidly evolving due to technological innovations. Technologies such as the Internet of things, smart sensors, cloud computing, robotics, and artificial intelligence are combining to disrupt the way that businesses operate. It is predicted that, over the next decade, information technology (IT) will significantly transform the accounting profession.

Embracing Digital Transformation In Accounting And Finance, Poh Sun Seow, Clarence Goh, Gary Pan, Melvin Yong, Joanna Chek

Research Collection School Of Accountancy

Digital transformation involves the integration of digital technologies and business processes. Recent developments in digital technologies have provided organisations with the tools to embark on digital transformation encompassing a wide range of business processes and activities. Organisations that can leverage on technology to digitally transform themselves stand to put themselves at a significant competitive advantage relative to their competitors.

Desa Digital Dan Tingkat Literasi Keuangan Aparatur Desa: Studi Kasus Kabupaten Aceh Tamiang, Fitriansyah Fitriansyah, Chaikal Nuryakin

Jurnal Ekonomi dan Pembangunan Indonesia

Since 2014, to reach the poor for increasing financial inclusion, the government of Indonesia has been digitizing social benefits. Recently, local government has also been pushed to build a “Digital Village.” We argue that for such a program to succeed, a good level of financial and digital literacy of the village officials is necessary. We surveyed the village officials in 60 out of 215 Aceh Tamiang to examine their financial, digital, and DFS literacy. We find that the literacy of the village officials, on average, is low. The factors contributing to low financial literacy are age, level of education, and …

What Is New In Value Investing? A Systematic Literature Review, Florencia Roca

Journal of New Finance

This study provides an overview of the academic research in the field of Value Investing (VI), identifying the knowledge structure, influential authors, connections between relevant papers, and salient trends. Following a defined protocol, the Google Scholar database is examined to extract, rank, and connect influential books and academic articles in VI. Through a systematic literature review methodology, this study retrieves a database of 400 academic works published between 1965 and 2020. Using rigorous bibliometric and visualization tools, it identifies four major research clusters: (1) competing explanations of the value premium, (2) anomalies research, (3) momentum and fundamentals, and (4) wrong …

The Racial/Ethnic Gap In Financial Literacy In The Population And By Income, Marco Angrisani, Sergio Barrera, Luisa R. Blanco, Salvador Contreras

School of Economics and Finance Faculty Publications

We investigate the determinants of the racial/ethnic gap in financial literacy in the general population and within income classes, with a focus on childhood family circumstances and neighborhood socioeconomic characteristics. Our model explains 48% and 57% of the observed gap for Blacks and Hispanics, respectively. For both groups, differences in individual characteristics and neighborhood socioeconomic status contribute the most to the explained gap. The White–Minority gap narrows when moving from low- to high-income classes, but the ability of the model to explain it decreases monotonically. Identifying which additional barriers put minorities at a disadvantage is key to improve financial literacy.