Articles tagged with Financial Management
Forcing private firms to disclose their financial statements leads to more mergers and acquisitions (M&As) and better deals. The study found that mandatory reporting intensity is positively correlated with M&A activity and targets' growth rates after the acquisition.
Researchers found that investors evaluate a company's environmental performance based on financial materiality, providing a better perspective for understanding environmental risks. The study analyzed data from 1,766 companies and identified three key findings: varying evaluation criteria, shareholder risk perception, and the importanc...
A study by Chinese researchers found that financial reports produced during fiscal years mismatched with annual business activity may be less reliable due to rigid accounting regulations. This can result in higher abnormal accruals, lower analyst forecast accuracy, and longer audit reporting delays for affected companies.
A UK study of 3,745 families reveals significant inequalities in young people's financial capabilities depending on socio-economic background. The research highlights the need to develop financial skills in disadvantaged children as early as primary school.
Research from the University of Georgia found that moving in together is not enough to guarantee joint accounts, with factors like net worth, household growth, and income level playing a significant role. Couples who agree on spending and have open conversations about money are more likely to pool their finances.
A study by WVU researchers highlights the need for improved mental health programs for first responders, citing increased stress and stigma. The study recommends linking responders with culturally competent clinicians, establishing centralized organizations, and expanding research efforts to address these issues.
Illinois Tech researchers found that blockchain technology, investor sentiment, and economic stress are key predictors of bitcoin returns. Bitcoin's detachment from economic fundamentals makes it a poor safe-haven asset.
A study by Anglia Ruskin University found that Madoff's business dealings, trial, and prison time revealed a high score on psychopathy scales. The research warns companies to identify and prevent corporate psychopaths who can bring down organizations and economies through recklessness and greed.
Research from Indiana University suggests that married couples who merge their finances are happier and fight less over money. The study found a causal relationship between joint bank accounts and improved relationship quality, including higher levels of communality within the marriage.
A study by Columbia University researchers found that individuals who saved money had goals that matched their dominant personality traits. People whose self-reported savings goals were a good fit for their personality traits had a bigger nest egg, on average.
Tisca Dorsey has joined the Thomas Jefferson National Accelerator Facility as Director of Business and Finance, bringing her expertise in government operations, contracting, and finance. She will lead the lab's contracting approach and strategy, supporting its growth and expansion.
Consumer financial vulnerability (CFV) is a risk of experiencing future harm given current access to financial resources and future uncertainty. Most consumers across the socioeconomic spectrum experience varying degrees of CFV at different life stages, due to factors like age, economic cycles, and unforeseen crises.
A study by researchers at the University of Toronto found that under typical surveillance, about 3% of US companies exhibit financial misrepresentation. However, during a period of heightened scrutiny following the Enron scandal, this rate tripled to 9%, indicating that at least 10% of companies may be involved in fraud.
New research from Texas McCombs finds that most nonrecurring income taxes are driven by legitimate business causes rather than efforts to manipulate earnings. The study analyzed 68,139 quarterly earnings reports and found no predictive power for future profits or tax rates.
Gail Frayne has been appointed as the Chief Financial Officer of the Thomas Jefferson National Accelerator Facility, responsible for developing and implementing financial strategies. She brings extensive experience in contract requirements, governance, and risk management to her new role.
Researchers developed a new model to predict U.S. recessions and economic slowdowns based on financial statement manipulation. The study found that high levels of potential manipulation in financial statements can improve recession prediction 5 to 8 quarters away.
A new study found that only 6.1% of US firms with wildfires in their headquarters county disclose wildfire risks in required federal filings, highlighting a gap in transparency and risk management. Firms are more likely to disclose risks when they have previously experienced wildfires, and the most disclosure-sensitive firms are those ...
A study found that PPMC-owned practices focusing on clinical management lead to significantly lower C-section rates, while those focusing on financial management lead to higher rates. This suggests that the business strategies used by PPMCs can impact patient care.
A two-year study funded by NEFE and the FINRA Foundation aims to increase the effectiveness of high school personal finance courses. The project will examine teacher perspectives and student reactions to personal finance classes, with a focus on high-poverty schools.
A new study co-authored by Bayes Business School found that larger public companies suffer from loss of innovation and lower share price value when managers are permitted to take decisions in their own self-interest. The study examined the effects of waiving fiduciary duties on R&D investment, finding a significant decline.
A new poll finds that more than half of people over 50 have helped at least one person over 65 with various tasks, including health care needs, home repairs, and finances. The experience can be rewarding but also challenging, especially for those helping individuals with complex needs.
Researchers propose experience cocreation to transform shared coupons into a tool for relationship building, suggesting it can boost social goals and alleviate norm conflict. The study recommends three steps for managers to utilize social influence, including sending reminder messages that emphasize economic and social value.
The share of female managers in finance has increased significantly in Finland, but their earnings remain lower than those of male managers. Occupational segregation and differences in educational backgrounds contribute to this disparity. Despite the industry's high wage premium, women are underrepresented in higher-paying roles.
A UK study found that adults struggling with debt management had higher rates of anxiety, depression, and mental health treatment. The research highlights the importance of addressing debt as a threat to mental health, regardless of income level.
The book analyzes four Asian jurisdictions and offers policy recommendations for the design of corporate restructuring laws. It highlights the importance of adapting US/UK frameworks to local conditions, taking into account differences in institutional and market structures, controlling shareholders, and creditor composition.
A new study from the Strategic Management Journal found that budgeting flexibility is crucial for financial security in higher education. Universities that can reallocate resources more regularly are more likely to run larger budget surpluses, with high governance arrangements actually weakening resource allocation flexibility.
Financial literacy decreased in the US, with fewer people knowing objective financial knowledge, yet more believing they excel. This decline contradicts increasing overconfidence in financial abilities.
Researchers analyzed 2.8 million adults with chronic disease diagnoses and found a correlation between adverse credit outcomes and rising medical debt. The study highlights the significant financial burden associated with chronic conditions.
A study by the University of South Florida found that nursing home chains can achieve improved financial performance by standardizing staff ratios while having a similar percentage of Medicaid patients among residents. Customizing services tailored to local demand and competition leads to increased resident welfare, but may compromise ...
Researchers found that discussing creativity and innovation negatively affects investors' confidence in a company's market performance. However, firms with leaders who discuss creativity positively tend to have higher earnings, suggesting the importance of tone in mitigating this effect.
Researchers found that companies with Machiavellian CEOs have a net income savings of over 6.6% on firm costs, including lower acquisition premiums and debt financing costs. The study suggests that high Mach CEOs' cultural norms filter down to bargaining performance, contributing to the cost savings.
Research suggests that non-GAAP earnings reports can lead to a higher risk of stock price crashes due to information asymmetry and manipulation. Companies use non-GAAP earnings to present a more positive picture, but investors should be cautious when managers have an incentive to mislead them.
Despite significant operating margin reductions in 2020, hospitals' overall profit margins remained similar to prior years, thanks to the COVID-19 relief fund. Government and rural hospitals saw higher profit margins during this time.
A new study by Johns Hopkins Bloomberg School of Public Health found that federal subsidies offset losses for hospitals during the COVID-19 pandemic. The research revealed that hospitals serving socioeconomically disadvantaged patients and those with higher uninsured patient populations were particularly affected by financial losses.
Institutional landlords have raised rent prices in neighborhoods where they own properties, but also improved neighborhood quality and safety. However, these improvements come at a cost to affordability, as rents increased by an average of 0.51% in overlapped neighborhoods.
A recent study in JAMA Otolaryngology–Head & Neck Surgery reveals that thyroid cancer patients in the US experience substantial financial burdens. The researchers propose a novel framework to help guide future research and inform cancer care providers on cost considerations.
A study analyzing global aid responses to Ukraine's invasion found that assistance is often focused on short-term measures rather than sustainable goals. The research highlights the need for more effective and long-term support to address the country's reconstruction and rebuilding needs.
Research suggests that professional investors ignore the performance of terminated fund managers, leading to poor investment decisions. By analyzing the performance data of both retained and fired managers, investment plans can gain a fuller picture and make more informed decisions.
Couples who pool their finances exhibit better connections and more positive interactions, according to Cornell University research. Low-income couples tend to benefit most from combining bank accounts, aligning financial interests and goals.
Researchers found traders prefer larger companies with strong analyst coverage and a greater ability to convert their shares into cash. They actively traded on firms where both hard and soft information gave similar signals about the future.
Researchers found a connection between how people think about their finances and their financial behaviors. Identifying situations when spending patterns are likely to occur can help predict triggers.
A new framework for portfolio management uses deep reinforcement learning to predict price trends and make strategic decisions, overcoming limitations of existing systems. The system consists of evolving agent modules and strategic agent modules, allowing for modular design and scalability.
A new study found that a higher minimum wage was associated with fewer people defaulting on their rent payments, particularly among those at the lower end of the housing expense market. However, landlords responded by increasing rent payments, offsetting some but not all of the increased income.
A recent study by Bayes Business School suggests that accounting firms are better equipped to deliver fair target valuations on mergers and acquisitions compared to investment banks. The research highlights the importance of auditing expertise in determining a company's true value.
Research from Thomas Shohfi at Rensselaer Polytechnic Institute found that sell-side analyst reports contain more activist-related language and quantitative information months before hedge fund activists announce their ownership. This is associated with greater stock returns for firm shareholders, highlighting the value of traditional ...
Researchers at Pusan National University have developed a new model using 'double Mellin transforms' and the 'method of dimension reduction' to accurately price vulnerable exchange options. The model provides an effective and accurate mathematical solution, enabling quick deployment without long calculations.
In a nascent market, high-reputation underwriters choose low-quality IPO firms due to higher fees, while long-term reputation concerns are sacrificed. As regulations strengthen, their client-picking behaviors adapt, prioritizing high-quality firms over fee-driven choices.
A recent study from the University of Georgia found three distinct combinations of personality traits associated with financial outcomes. The Resilient group, characterized by extroversion, openness, and agreeableness, was linked to successful financial decisions. In contrast, the Under Controlled group's high extroversion and neurotic...
Research in Japan found a link between financial knowledge, age, and gender, suggesting potential policy targets to improve financial health. While men had higher financial literacy, women reported more sound financial behaviors, indicating that policies may need to focus on supporting women's financial decision-making.
A new study finds that investors may continue to hold onto companies despite FCPA violations, as the severity of the violation does not always match the penalty imposed. This ambiguity can lead to market underreaction and undermine trust in regulatory bodies.
Researchers found that minimum payment requirements cause consumers to spread repayments evenly, leading to less paid to higher-interest debts. By displaying interest rates clearly, companies can help consumers make better repayment choices. Fintech products and policy changes can also aid in reducing interest payments.
Researchers found that tweets with negative valence and consumer orientation generate permanent price impacts, while those with positive valence and competitor orientation increase temporary price impacts. Firms can design social media content to improve firm value by incorporating attributes such as valence and subject matter.
A new study found that active listening by managers can improve employees' sense of personal control over their careers and reduce anxiety about potential job loss. By increasing active listening, managers can create a safe space for workers to verbalize and process their experiences, enabling them to feel more in control and valued.
A new study analyzes how micro (income) and macro (business cycle) conditions influence grocery shopping behavior, finding that households adjust their spending without changing budget constraints. Micro conditions primarily affect basket value, while macro conditions impact both basket value and allocation to store formats.
A new study from the University of South Australia reveals that Australian firms with large gender pay gaps are not only perpetuating inequality but also harming their overall performance. The research found that women executives in top management teams can lower a firm's annual return on assets by 2.2%.
A new study by Cornell University reveals that TV ads significantly influence retail investors' decisions, leading to increased online searches and stock trading volumes. The study found that certain types of ads, such as those airing during prime-time hours or for financial sector products, generated the strongest investor response.
Research by City University London's Business School reveals that fund managers who start their careers in difficult economic conditions perform better over the long-term. They exhibit better market timing and tilt their investments towards defensive industries during tough times.
Researchers found no significant statistical or economic difference in yield or revenue between discriminatory and uniform auctions. The study suggests that Treasuries worldwide can shift focus away from auction rules towards market stability and primary dealer systems.
A recent study by Bocconi University researchers found that stakeholders' sentiment toward a new CEO has a stronger effect on post-succession performance than the CEO's previous experience and fit. Negative sentiment can undermine a CEO's effectiveness, especially for outside CEOs.
A new study finds that wage inequality boosts short-term profitability but harms customer satisfaction and long-term firm performance. High wages for top managers incentivize employees to exploit customers, weakening a firm's customer-oriented culture.