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This paper examines how equity analysts' roles as information intermediaries and monitors affect corporate liquidity policy and its associated value of cash, providing new evidence that analysts have a direct impact on corporate liquidity policy. Greater analyst coverage (1) reduces information asymmetry between a firm and outside shareholders and (2)

This paper examines how equity analysts' roles as information intermediaries and monitors affect corporate liquidity policy and its associated value of cash, providing new evidence that analysts have a direct impact on corporate liquidity policy. Greater analyst coverage (1) reduces information asymmetry between a firm and outside shareholders and (2) enhances the monitoring process. Consistent with these arguments, analyst coverage increases the value of cash, thereby allowing firms to hold more cash. The cash-to-assets ratio increases by 5.2 percentage points when moving from the bottom analyst-coverage decile to the top decile. The marginal value of $1 of corporate cash holdings is $0.93 for the bottom analyst-coverage decile and $1.83 for the top decile. The positive effects remain robust after a battery of endogeneity checks. I also perform tests employing a unique dataset that consists of public and private firms, as well as a dataset that consists of public firms that have gone private. A public firm with analyst coverage can hold approximately 8% more cash than its private counterpart. These findings constitute new evidence on the real effect of analyst coverage.
ContributorsChang, Ching-Hung (Author) / Bates, Thomas (Thesis advisor) / Bharath, Sreedhar (Committee member) / Lindsey, Laura (Committee member) / Arizona State University (Publisher)
Created2012
Description

As a result of the increase of pollution related to industrialization in Vietnam, acid rain has become a prevalent issue for Vietnamese farmers who are forced to rinse their crops – risking damage due to overwatering and poor harvest. Thus, the team was motivated to develop a solution to harmful

As a result of the increase of pollution related to industrialization in Vietnam, acid rain has become a prevalent issue for Vietnamese farmers who are forced to rinse their crops – risking damage due to overwatering and poor harvest. Thus, the team was motivated to develop a solution to harmful impacts of acidic rainwater by creating a system with the ability to capture rainwater and determine its level of acidity in order to optimize the crop watering process, and promote productive crops. By conducting preliminary research on rainfall and tropical climate in Vietnam, existing products on the market, and pH sensors for monitoring and device material, the team was able to design a number of devices to collect, store, and measure the pH of rainwater. After developing a number of initial design requirements based on the needs of the farmers, a final prototype was developed using the best aspects of each initial design. Tests were conducted with varying structural and aqueous materials to represent a broad range of environmental conditions. While the scope of the project was ultimately limited to prototyping purposes, the principles explored throughout this thesis project can successfully be applied to a fully-functioning production model available for commercial use on Vietnamese farms. Given more time for development, improvements would be made in the extent of materials tested, and the configuration of electronics and data acquisition, in order to further optimize the process of determining rainwater acidity.

ContributorsMasterson, William (Author) / Borrel, Henri (Co-author) / Vargas, Vianney (Co-author) / Sweis, Hannah (Co-author) / Schoepf, Jared (Thesis director) / Grewal, Anoop (Committee member) / Barrett, The Honors College (Contributor) / Mechanical and Aerospace Engineering Program (Contributor)
Created2023-05
Description

As a result of the increase of pollution related to industrialization in Vietnam, acid rain has become a prevalent issue for Vietnamese farmers who are forced to rinse their crops – risking damage due to overwatering and poor harvest. Thus, the team was motivated to develop a solution to harmful

As a result of the increase of pollution related to industrialization in Vietnam, acid rain has become a prevalent issue for Vietnamese farmers who are forced to rinse their crops – risking damage due to overwatering and poor harvest. Thus, the team was motivated to develop a solution to harmful impacts of acidic rainwater by creating a system with the ability to capture rainwater and determine its level of acidity in order to optimize the crop watering process, and promote productive crops. By conducting preliminary research on rainfall and tropical climate in Vietnam, existing products on the market, and pH sensors for monitoring and device material, the team was able to design a number of devices to collect, store, and measure the pH of rainwater. After developing a number of initial design requirements based on the needs of the farmers, a final prototype was developed using the best aspects of each initial design. Tests were conducted with varying structural and aqueous materials to represent a broad range of environmental conditions. While the scope of the project was ultimately limited to prototyping purposes, the principles explored throughout this thesis project can successfully be applied to a fully-functioning production model available for commercial use on Vietnamese farms. Given more time for development, improvements would be made in the extent of materials tested, and the configuration of electronics and data acquisition, in order to further optimize the process of determining rainwater acidity.

ContributorsRuiz Vargas, Vianney (Author) / Borrel, Henri (Co-author) / Masterson, William (Co-author) / Sweis, Hannah (Co-author) / Schoepf, Jared (Thesis director) / Grewal, Anoop (Committee member) / Barrett, The Honors College (Contributor) / Mechanical and Aerospace Engineering Program (Contributor) / School of International Letters and Cultures (Contributor)
Created2023-05
154367-Thumbnail Image.png
Description
Chief Executive Officers (CEOs) whose observed personal option-holding patterns are not consistent with theoretical predictions are variously described as overconfident or optimistic. Existing literature demonstrates that the investment and financing decisions of such CEOs differ from those of CEOs who do not exhibit such behavior and interprets the investment and

Chief Executive Officers (CEOs) whose observed personal option-holding patterns are not consistent with theoretical predictions are variously described as overconfident or optimistic. Existing literature demonstrates that the investment and financing decisions of such CEOs differ from those of CEOs who do not exhibit such behavior and interprets the investment and financing decisions by overconfident or optimistic CEOs as inferior. This paper argues that it may be rational to exhibit behavior interpreted as optimistic and that the determinants of a CEO’s perceived optimism are important. Further, this paper shows that CEOs whose apparent optimism results from above average industry-adjusted CEO performance in prior years make investment and financing decisions which are actually similar, and sometimes superior to, those of unbiased CEOs.
ContributorsWalton, Richard (Author) / Bates, Thomas (Thesis advisor) / Lindsey, Laura (Committee member) / Babenko, Ilona (Committee member) / Arizona State University (Publisher)
Created2016