Barrett, The Honors College Thesis/Creative Project Collection
Barrett, The Honors College at Arizona State University proudly showcases the work of undergraduate honors students by sharing this collection exclusively with the ASU community.
Barrett accepts high performing, academically engaged undergraduate students and works with them in collaboration with all of the other academic units at Arizona State University. All Barrett students complete a thesis or creative project which is an opportunity to explore an intellectual interest and produce an original piece of scholarly research. The thesis or creative project is supervised and defended in front of a faculty committee. Students are able to engage with professors who are nationally recognized in their fields and committed to working with honors students. Completing a Barrett thesis or creative project is an opportunity for undergraduate honors students to contribute to the ASU academic community in a meaningful way.
Displaying 1 - 5 of 5
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- All Subjects: Finance
- Creators: Department of Economics
Description
This paper classifies private equity groups (PEGs) seeking to engage in public to private transactions (PTPs) and determines (primarily through an examination of the implied merger arbitrage spread), whether certain reputational factors associated with the private equity industry affect a firm's ability to acquire a publicly-traded company. We use a sample of 1,027 US-based take private transactions announced between January 5, 2009 and August 2, 2018, where 333 transactions consist of private-equity led take-privates, to investigate how merger arbitrage spreads, offer premiums, and deal closure are impacted based on PEG- and PTP-specific input variables. We find that the merger arbitrage spread of PEG-backed deals are 2-3% wider than strategic deals, hostile deals have a greater merger arbitrage spread, larger bid premiums widen spreads and markets accurately identify deals that will close through a narrower spread. PEG deals offer lower premiums, as well as friendly deals and larger deals. Offer premiums are 8.2% larger among deals that eventually consummate. In a logistic regression, we identified that PEG deals are less likely to close than strategic deals, however friendly deals are much more likely to close and Mega Funds are more likely to consummate deals among their PEG peers. These findings support previous research on PTP deals. The insignificance of PEG-classified variables on arbitrage spreads and premiums suggest that investors do not differentiate PEG-backed deals by PEG due to most PEGs equal ability to raise competitive financing. However, Mega Funds are more likely to close deals, and thus, we identify that merger arbitrage spreads should be narrower among this PEG classification.
ContributorsSliwicki, Austin James (Co-author) / Schifman, Eli (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Economics (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05
Description
The purpose of this paper is to review the effects of the Dodd-Frank Title VII Clearing Regulations on the Over-the-counter (OTC) derivatives market and to analyze if the benefits of the Title VII regulations have outweighed the costs in the OTC derivatives market by reducing systematic(market) risk and protecting market participants or if the Title VII regulations’ costs have made things worse by lessening opportunities in the OTC derivatives market and stifling economics benefits by over regulating the market. This paper strives to examine this issue by explaining how OTC are said to have played a part in the 2008 Financial crisis. Next, we give a general overview of financial securities, and what OTC are. Then we will give a general overview of what the Dodd-Frank Wall Street Reform and Consumer Protection Acts are, which are the regulations to come out of the 2008 Financial crisis. Then the paper will dive into Dodd-Frank Title VII Clearing Regulations and how they regulated OTC derivatives in the aftermath of the 2008 Financial crisis. Next, we discuss the Clearing House industry. Then the paper explores the major change of central clearing versus the previous bilateral clearing system. The paper will then cover how these rules have affected OTC derivatives market by examining the works of authors, who both support the regulations and others, who oppose the regulations by looking at logical arguments, historical evidence, and empirical evidence. Finally, we conclude that based on all the evidence how the Dodd-Frank Title VII Clearing Regulations effects on the OTC derivatives market are inconclusive at this time.
ContributorsCharette, John (Co-author) / Thacker, Harshit (Co-author) / Aragon, George (Thesis director) / Stein, Luke (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Dean, W.P. Carey School of Business (Contributor) / Department of Information Systems (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05
Description
The following thesis discusses the primary drivers of value creation in a leveraged buyout. Value creation is defined by two broad criteria: enterprise value creation and financial value creation. With enterprise value creation, the company itself may be improved, which in turn may have positive implications on the economy at large. As the analysis of enterprise value creation is outside the scope of publicly available information and data, the core focus of this thesis is financial value creation. Financial value creation is defined as the financial returns to a given private equity firm. Amongst this segment of value creation, there are roughly three primary categories responsible for generating returns: financial engineering, governance improvements, and operational improvements. The attached literature review and subsequent chapters of this thesis discuss the academic drivers of value creation and the outputs of a leveraged buyout model conducted on a public company, Schnitzer Steel, that has been determined to be an ideal candidate for a buyout.
ContributorsAlivarius, Chadwick (Author) / Simonson, Mark (Thesis director) / Stein, Luke (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Dean, W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05
Description
The 2007-2008 Global Financial Crisis is one that is not widely understood by many. The easy access to cheap credit and the global over-confidence leading up to 2008 both played a large factor in how economies were affected by the crisis. This paper looks at the stories of Spain, Portugal, Ireland, and Iceland leading up to, during, and after this crisis in order to discover how it happened and why it was so widespread. I explain three lessons that can be learned from this crisis in attempt to avoid this type of crisis in the future. First, countries were not automatically safe investments once they joined the European Monetary Union. Second, easy access to credit is not sustainable in the long run. Finally, confidence plays a main role in the performance of an economy, and the loss of confidence can be detrimental.
ContributorsSmaw, Hannah (Author) / McDaniel, Cara (Thesis director) / Hill, Alexander (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05
Description
This paper intends to examine topics related to Chinese financial policy and
institutions mainly in the early 21st century. China has gone through enormous changes in the late 20th century and early 21st century, and financial policy reforms and adjustments have been at times instrumental to aiding that growth, and at other times have served as impediments to the country’s success. As China’s clout has grown both economically and politically in the wider world, it has become evermore important to understand the Chinese financial system, particularly as other authoritarian regimes may seek to emulate it in the perhaps recent future. The paper will examine the institutional elements of Chinese finance, including the broader structure of the party state apparatus and the role of legislative and executive authorities in determining financial policy. Next, the paper will go through both the legal-regulatory environment of the country and the structure of the preeminent Chinese banks. Finally, issues in Chinese monetary policy, particularly exchange rate system reforms, and the developing stock and bond markets will be addressed.
institutions mainly in the early 21st century. China has gone through enormous changes in the late 20th century and early 21st century, and financial policy reforms and adjustments have been at times instrumental to aiding that growth, and at other times have served as impediments to the country’s success. As China’s clout has grown both economically and politically in the wider world, it has become evermore important to understand the Chinese financial system, particularly as other authoritarian regimes may seek to emulate it in the perhaps recent future. The paper will examine the institutional elements of Chinese finance, including the broader structure of the party state apparatus and the role of legislative and executive authorities in determining financial policy. Next, the paper will go through both the legal-regulatory environment of the country and the structure of the preeminent Chinese banks. Finally, issues in Chinese monetary policy, particularly exchange rate system reforms, and the developing stock and bond markets will be addressed.
ContributorsFeatherston, Ryan (Author) / Hill, John (Thesis director) / Mendez, Jose (Committee member) / Department of Economics (Contributor) / Dean, W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05