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By matching a CEO's place of residence in his or her formative years with U.S. Census survey data, I obtain an estimate of the CEO's family wealth and study the link between the CEO's endowed social status and firm performance. I find that, on average, CEOs born into poor families

By matching a CEO's place of residence in his or her formative years with U.S. Census survey data, I obtain an estimate of the CEO's family wealth and study the link between the CEO's endowed social status and firm performance. I find that, on average, CEOs born into poor families outperform those born into wealthy families, as measured by a variety of proxies for firm performance. There is no evidence of higher risk-taking by the CEOs from low social status backgrounds. Further, CEOs from less privileged families perform better in firms with high R&D spending but they underperform CEOs from wealthy families when firms operate in a more uncertain environment. Taken together, my results show that endowed family wealth of a CEO is useful in identifying his or her managerial ability.
ContributorsDu, Fangfang (Author) / Babenko, Ilona (Thesis advisor) / Bates, Thomas (Thesis advisor) / Tserlukevich, Yuri (Committee member) / Wang, Jessie (Committee member) / Arizona State University (Publisher)
Created2018
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This paper seeks to emphasize how the presence of uncertainty, speculation and leverage work in concert within the stock market to exacerbate crashes in a cyclical market. It analyzes three major stock market events: the crash of Oct. 19, 1987, “Black Monday;” the dotcom bust, from 1999 to 2002; and

This paper seeks to emphasize how the presence of uncertainty, speculation and leverage work in concert within the stock market to exacerbate crashes in a cyclical market. It analyzes three major stock market events: the crash of Oct. 19, 1987, “Black Monday;” the dotcom bust, from 1999 to 2002; and the subprime mortgage crisis, from 2007 to 2010. Within each event period I define determinants or measurements of uncertainty, speculation. Analysis of how these three concepts functioned during boom and bust will highlight how their presence can amplify the magnitude of a crash. This paper postulates that the amount of leverage during a crash determines how long-term its effects will be. This theory is fortified by extensive research and interviews with experts in the stock market who had a front row view of the discussed crises.
ContributorsGraff, Veronica Camille (Author) / Leckey, Andrew (Thesis director) / Cohen, Sarah (Committee member) / Historical, Philosophical & Religious Studies (Contributor) / Walter Cronkite School of Journalism & Mass Comm (Contributor, Contributor) / Dean, W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05
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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

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
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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

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
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Description
Bitcoin is a form of virtual currency that can be used as a medium of exchange for goods or services. Different from other forms of virtual payment, bitcoin is de-centralized and puts all of the power in the hands of the user, rather than a banking institution. However, bitcoin's ability

Bitcoin is a form of virtual currency that can be used as a medium of exchange for goods or services. Different from other forms of virtual payment, bitcoin is de-centralized and puts all of the power in the hands of the user, rather than a banking institution. However, bitcoin's ability to develop as a renowned medium of exchange has been impeded, potentially due to a lack of knowledge, active bitcoin platforms, and support. In this paper, I conduct a survey to understand factors that affect households' adoption of bitcoin. In particular, I focus on factors that capture the potential benefit and cost of adopting bitcoin. Through a public survey, participants are asked a series of questions on their willingness to adopt bitcoin. I found significant results stating that subjects were more inclined toward bitcoin contingent upon the number of platforms accepting it, the number of acquaintances using bitcoin, and the degree of personal knowledge participants have about bitcoin. These findings suggest that perceived benefit captured by network effect and convenience of use, as well as the potential cost captured by uncertainty help shape the adoption of bitcoin.
ContributorsMorrissey, Michael Joshua (Author) / Wang, Jessie (Thesis director) / Ray, Colter (Committee member) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
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Description

Music streaming services have affected the music industry from both a financial and legal standpoint. Their current business model affects stakeholders such as artists, users, and investors. These services have been scrutinized recently for their imperfect royalty distribution model. Covid-19 has made these discussions even more relevant as touring income

Music streaming services have affected the music industry from both a financial and legal standpoint. Their current business model affects stakeholders such as artists, users, and investors. These services have been scrutinized recently for their imperfect royalty distribution model. Covid-19 has made these discussions even more relevant as touring income has come to a halt for musicians and the live entertainment industry. <br/>Under the current per-stream model, it is becoming exceedingly hard for artists to make a living off of streams. This forces artists to tour heavily as well as cut corners to create what is essentially “disposable art”. Rapidly releasing multiple projects a year has become the norm for many modern artists. This paper will examine the licensing framework, royalty payout issues, and propose a solution.

ContributorsKoudssi, Zakaria Corley (Author) / Sadusky, Brian (Thesis director) / Koretz, Lora (Committee member) / Dean, W.P. Carey School of Business (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description

Company X once dominated the server chip market, but its share has begun to diminish due to numerous competitors, product delays, and smaller profit margins. This market will only keep growing as advancement and demand for server technologies continues to expand, therefore, regaining market share is of utmost importance for

Company X once dominated the server chip market, but its share has begun to diminish due to numerous competitors, product delays, and smaller profit margins. This market will only keep growing as advancement and demand for server technologies continues to expand, therefore, regaining market share is of utmost importance for Company X. This project analyzes how Company X can look into regaining server market share through a diversion of funds into emerging markets. The paper highlights the importance of being an early entrant into a relatively untapped, promising regional market by addressing the economics, potential consumers, and competition. Analysis of these factors shows the potential net present value (NPV) that can be achieved by increasing investments in India.

ContributorsAmundson, Tegan (Author) / Johnson, Tyler (Co-author) / Kam, Manton (Thesis director) / Nguyen, Andre (Committee member) / Barrett, The Honors College (Contributor) / Department of Management and Entrepreneurship (Contributor) / Department of Finance (Contributor) / Dean, W.P. Carey School of Business (Contributor)
Created2023-05
ContributorsErena, Allison (Author) / Prince, Linda (Thesis director) / Radway, Debra (Committee member) / Barrett, The Honors College (Contributor) / School of Accountancy (Contributor) / Dean, W.P. Carey School of Business (Contributor)
Created2023-05
ContributorsErena, Allison (Author) / Prince, Linda (Thesis director) / Radway, Debra (Committee member) / Barrett, The Honors College (Contributor) / School of Accountancy (Contributor) / Dean, W.P. Carey School of Business (Contributor)
Created2023-05
Description

This paper acts as an initiation of coverage report for Offerpad, a technology-based real estate platform headquartered in Chandler, Arizona. The report reviews industry dynamics, analyzes Offerpad's competitive positioning, and uses financial valuation techniques to arrive at a buy recommendation for the company.

ContributorsNance, Jacob (Author) / Simonson, Mark (Thesis director) / Licon, Wendell (Committee member) / Barrett, The Honors College (Contributor) / Dean, W.P. Carey School of Business (Contributor) / Department of Finance (Contributor)
Created2023-05