Ohio State University最新文献

{"title":"Why Don’t All Banks Practice Regulatory Arbitrage? Evidence from Usage of Trust Preferred Securities","authors":"Nicole M. Boyson, Ruediger Fahlenbrach, René M. Stulz","doi":"10.2139/ssrn.2406895","DOIUrl":"https://doi.org/10.2139/ssrn.2406895","url":null,"abstract":"We propose a theory of regulatory arbitrage by banks and test it using trust preferred securities (TPS) issuance. From 1996 to 2007, U.S. banks in the aggregate increased their regulatory capital through issuance of TPS while their net issuance of common stock was negative due to repurchases. We assume that, in the absence of capital requirements, a bank has an optimal capital structure that depends on its business model. Capital requirements can impose constraints on bank decisions. If a bank's optimal capital structure also meets regulatory capital requirements with a sufficient buffer, the bank is unconstrained by these requirements. We expect that unconstrained banks will not issue TPS, that constrained banks will issue TPS and engage in other forms of regulatory arbitrage, and that banks with TPS will be riskier than other banks with the same amount of regulatory capital, and therefore, more adversely affected by the credit crisis. Our empirical evidence supports these predictions.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129756380","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Prices and Volatilities in the Corporate Bond Market","authors":"Jack Bao, Jia Chen, Kewei Hou, Lei Lu","doi":"10.2139/ssrn.2651243","DOIUrl":"https://doi.org/10.2139/ssrn.2651243","url":null,"abstract":"We document a strong positive cross-sectional relation between corporate bond yield spreads and bond return volatilities. As corporate bond prices are generally attributable to both credit risk and illiquidity as discussed in Huang and Huang (2012), we apply a decomposition methodology to quantify the relative contributions of credit and illiquidity. Overall, our credit and illiquidity proxies can explain almost three quarters of the yield spread-bond volatility relation with credit and illiquidity contributing in a 70:30 ratio. Furthermore, we find that the credit portion of the yield spread-bond volatility relation is important even after controlling for equity volatility. The relation between yield spreads and volatilities is robust to different sample periods, including the financial crisis. We also find the ratio to be smaller for the investment-grade sub-sample, consistent with credit risk being relatively more important for understanding the yield spread-volatility relation in speculative-grade bonds.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121842002","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Influence of Public Opinion on Investor Voting and Proxy Advisors","authors":"Reena Aggarwal, Isil Erel, L. Starks","doi":"10.2139/ssrn.2447012","DOIUrl":"https://doi.org/10.2139/ssrn.2447012","url":null,"abstract":"We examine the evolution in voting patterns across firms over time. We find that investors have become more independent in their voting decisions, voting less with the recommendations of management or proxy advisors. Even when the proxy advisor recommends voting against a proposal, we find that over time investors are more likely to ignore the recommendation. Moreover, we also find that proxy advisory recommendations have become more supportive of shareholder proposals. Our main contribution is to examine the role of public opinion in influencing shareholder voting. We show that public opinion on corporate governance issues, as reflected in media coverage and surveys, is strongly associated with investor voting, particularly mutual fund voting.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116710000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Impact of Celebrity Advertisement and Endorsement on the Buying Behaviour of Consumers, Brand Image and Brand Positioning of Coca Cola in London, United Kingdom","authors":"A. Hammad","doi":"10.2139/ssrn.2676708","DOIUrl":"https://doi.org/10.2139/ssrn.2676708","url":null,"abstract":"Importance of the subject:The problem statement is of great importance, as celebrity endorsement is the most important form of marketing communication. The problem statements helps to analyse and examine the effect of celebrity advertisement and endorsement on other marketing strategies and customer psychographics such as; the brand image, brand positioning and buying behaviour of consumers.Research Methodology:In order to conduct the primary research, the research selected sample size of 104 respondents both males and females belonging to different age groups from 18 to more than 50 years old. Similarly, the researcher use surveymonkey.com and social media websites such as facebook.com in order to get the surveys done, as it is the quickest and easy way to get authentic research done in short span of time. Similarly, the researcher used mintel, keynote, books, report, journal articles and news to conduct the secondary research.Findings and analysis:Coca-Cola’s celebrity endorsements and advertisements are creating positive impact on the buying behaviour of young consumers. There are many other popular marketing tools such as discount coupons which also influence consumers in conjunction with celebrity endorsements. Majority of the people both males and females between the age groups of 35-50 are not much interested in celebrity endorsements and don’t get much influenced by them. Celebrity endorsements are influencing young males and females to buy coca-cola and associate positive attributes with the brand which leads to attain positive brand image and brand image of coca-cola in the eyes and minds of the consumers.Conclusions/Recommendations:Coca-colas’ celebrity endorsements and advertisement are creating positive impact on the sales, buying behaviour of young consumers, brand positioning and image. Coca-Cola spend most of its budget on television advertisements, but from the primary research it was revealed that; Coca-Cola must focus on social media advertising as well, as it is the most important form of media to be used by targeted audience of coca-cola to become aware about the brand and its products. Similarly, coca-cola must come up with celebrity advertisement and endorsements by selecting different celebrities belonging to different age groups to influence consumers between the age group of 30-50 years old and make them buy coca-cola and change their perception of being coca-cola as unhealthy drink to healthy drink.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"73 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126270602","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Sub-Penny and Queue-Jumping","authors":"Sabrina Buti, Francesco Consonni, B. Rindi, Yuanji Wen, Ingrid M. Werner","doi":"10.2139/ssrn.2350424","DOIUrl":"https://doi.org/10.2139/ssrn.2350424","url":null,"abstract":"Sub-Penny Trading (SPT) is a form of dark trading that allows traders to undercut displayed liquidity. We distinguish between SPT that is queue jumping (QJ) and mid- crossing (MID) and find that QJ is higher for NASDAQ than NYSE stocks. Consistently with Buti, Rindi, Wen and Werner (2013), QJ is positively related to depth and negatively related to stock price. We also find that QJ is associated with improved lit market quality, especially for large capitalization stocks. Sub-penny quotes are allowed for stocks priced below $1.00, and we use this fact to show that QJ increases, the spread improves but depth deteriorates as the price of a stock crosses from above to below ($1.00).","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133187379","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Does Target CEO Retention in Acquisitions Involving Private Equity Acquirers Harm Target Shareholders?","authors":"L. Bargeron, Frederik Schlingemann, C. Zutter, René M. Stulz","doi":"10.2139/ssrn.2185574","DOIUrl":"https://doi.org/10.2139/ssrn.2185574","url":null,"abstract":"While there is widespread concern that target CEO retention by the acquirer harms target shareholders when the acquirer is a private equity firm, CEO retention can also be valuable to private equity acquirers, and hence potentially benefit shareholders. We find that CEO retention does not harm target shareholders when the acquirer is a private equity firm. In fact, we show that, in acquisitions by private equity firms, better performing CEOs are more likely to be retained and target shareholders gain an additional 10% to 23% of pre-acquisition firm value when the CEO is retained compared to when the CEO is not retained. In contrast, shareholders of targets acquired by operating companies do not benefit from CEO retention. Finally, we find no evidence that the target's value is artificially depressed ahead of a private equity acquisition where the CEO is retained.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115298696","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Choice Models for Budgeted Demand and Constrained Allocation","authors":"Takuya Satomura, Jeff D. Brazell, Greg M. Allenby","doi":"10.2139/ssrn.1939109","DOIUrl":"https://doi.org/10.2139/ssrn.1939109","url":null,"abstract":"Utility maximization is implicit in models of consumer choice, learning, forward-looking behavior and substitution. It is a central feature of models of market competition built on the aggregation of individual choices, and is assumed in nearly all quantitative models of behavior. Yet, while the assumption of utility maximization is widely present in marketing analysis, it is rarely expressed in a way that constrains the choices that are made. Constrained utility maximization leads to richer tradeoffs among the choices when budgets and allocations are assigned non-trivial roles in the choice process. In this paper we develop alternative models of constrained maximization, and show that models of constrained choice significantly improve the in-sample and predictive fit to the data in two conjoint studies -- a pharmaceutical study of physician drug allocation and a conjoint study of volumetric demand. Inferences about the budget constraint, and extensions to non-conjoint applications, are discussed.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129107550","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"w-MPS Risk Aversion and the CAPM","authors":"Chenghu Ma, P. Boyle","doi":"10.2139/ssrn.1832004","DOIUrl":"https://doi.org/10.2139/ssrn.1832004","url":null,"abstract":"This paper establishes general conditions for the validity of mutual fund separation and the equilibrium CAPM. We use partial preference orders that display weak form mean preserving spread (w-MPS) risk aversion in the sense of Ma (2011). We derive this result without imposing any distributional assumptions on asset returns. The results hold even when the market contains an infinite number of securities and a continuum number of traders, and when each investor is permitted to hold some (arbitrary) finite portfolios. A proof of existence of equilibrium CAPM is provided for finite economies by assuming that when preferences are constrained on the market subspace spanned by the risk free bond, the market portfolios admit continuous utility representations.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115009686","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Market Impediments to Issuance of Corporate Bonds at the Nairobi Stock Exchange","authors":"Dennis Bulla","doi":"10.2139/ssrn.2785703","DOIUrl":"https://doi.org/10.2139/ssrn.2785703","url":null,"abstract":"This research work was motivated by the deficiency of corporate bonds at the Nairobi Stock Exchange since the market segment opened in 1996. The study sought to investigate market impediments to issuance of corporate bonds at the exchange. Bonds as debt instruments are a cheaper source of external capital for companies when interest rates are comparatively low. The general objective was to test the significance of issuance procedure, cost of issue, state of secondary market and level of transparency in attracting corporate bonds to the market. Methodology was to survey selected finance officers from the listed companies and stockbrokers to determine if they thought the factors had retarded growth of the public debt market and offering opinion on how the situation could be reversed. Analysis of data was conducted using chi-square which returned a no - difference between observed and expected value for the factors under study. The significance level was 0.05 for each impediment tested.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129308425","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Behavioral Implications of Aggregation and Delay on Budget Approval Decisions","authors":"Steven T. Schwartz, E. Spires, David E. Wallin, Richard A. Young","doi":"10.2139/ssrn.1495708","DOIUrl":"https://doi.org/10.2139/ssrn.1495708","url":null,"abstract":"An experiment with three treatments is used to evaluate the social efficiency of budgeting protocols induced by other-regarding preferences. In disaggregated superiors receive three individual proposals in iterated fashion, and must decide whether to accept each project without knowledge of the forthcoming proposals by the subordinate. In aggregated three projects are bundled together, and subordinates submit an aggregate proposal that is intended to cover the cost of all the projects combined. Superiors can accept all of the projects to which the proposal pertains, or none of them. In delayed subordinates submit individual proposals as in disaggregated, but superiors delay making a decision on any of them until they receive all three proposals. The results indicate that superiors are slightly more demanding in aggregated than in the other two treatments, and subordinates submit lower proposals for high-cost projects. However, superiors are not so demanding that the social benefit of aggregation is completely undone: the likelihood of project acceptance under aggregated is significantly greater than under disaggregated and delayed, especially for the highest cost projects. It therefore appears that the aggregation of budget requests into a single proposal to cover all costs is somewhat efficacious in increasing project acceptance. Interestingly, only when the superior is forced to consider an aggregated budget is social welfare improved. In this sense, aggregation may be thought of as a substitute for a commitment to view only the total budget proposed, and not its components. More generally our results provide a rationale for restricting the level of information in the evaluation of subordinates when superiors cannot commit to how they will use the information.","PeriodicalId":166116,"journal":{"name":"Ohio State University","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129025765","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}