This study addresses the impact of mutual fund expenses on domestic large cap mutual fund performance, and quantifies this impact for investors. Using Morningstar data for all large ‘blend’ mutual funds from 2016, I implement Ordinary Least Squares Regression Analysis, and find that mutual funds do not on average earn back their fees. Investors looking to maximize investment returns should seek out mutual funds with low expense ratios.
Measuring risk in the stock market is one of the major challenges of modern finance. There is a controversy over which risk premiums should be considered to price assets. This study evaluates the ability of the CAPM and Fama-French Three Factor model to explain stock returns in the empirical Chinese Growth Enterprises Market ground. Applying Fama and French approach, the author constructed six portfolios by size and book to market ratio. Using weekly returns from January 2012 to December 2012, the excess returns for each portfolio were regressed on market, scale and value factors by using time series method. The findings prove the asset pricing models’ weak explanatory power in the Chinese GEM. In addition, this study considers the liquidity factor that is constructed by using traded volumes/ outstanding shares and then sorts six portfolios by size and liquidity. The empirical results show that such a factor is significant in Chinese Second Board Stock Exchange. This article concludes that neither the CAPM nor Fama-French Three Factors models is clearly significant for explaining stock returns on the Chinese Second Stock Exchange, and the introduction liquidity factor will make a more universal asset pricing model in the emerging stock markets.
In early 2018, Republicans passed what was to be dubbed as the 2018 GOP tax plan. This plan, which is essentially a major tax overhaul, also proposed a variety of educational tax options. While none of the major education-related measures were passed, there was an interesting tuition assistance tax that would have significantly affected how dependents of faculty and staff pay for college. This paper aims at finding the financial “turning point” where a family would elect to use financial aid instead of a tuition assistance plan. I look at a variety of income levels across more than 20 selective private schools and find at what income level a family would elect for financial aid instead of tuition assistance. This plan would have deterred a vast majority families making less than $100,000 from taking tuition assistance, making college more inaccessible for children of lower-earning faculty and staff.
This paper explores the spatial effect of a professional sports stadium on multi-family rents in US cities using a hedonic housing price model. Estimates based on Census block groups within 10-miles of every NBA, NFL, NHL, MLB, and MLS facility across 10 U.S. Metropolitan Statistical Areas suggest that median gross rents increase with the introduction of a professional sports stadium. The results also suggest that median gross rents are higher in block groups near the facilities and the impact lessons as distance from the facility increases. This study attributes the overall increase in rental value to a societal preference for entertainment and experience provided by a stadium environment.
Obesity is the second largest preventable disease in the US, and accounts for over 400,000 deaths each year. Much of the current literature focuses on environmental and genetic factors that cause the disease, as well as consequences for being obese. One of these consequences is a wage penalty. This paper explores the connection between being classified as obese in one’s adolescence, and the possibility of a wage penalty when this adolescent becomes an adult. This paper focuses on the NLSY 1997 survey, exploring the relationship between the BMI of participants in the first round of the survey in 1997 and their wages in the most recent published round in 2014. This study concludes that adolescent obesity is not significantly correlated with a wage penalty as an adult, and therefore as detrimental as the disease may be, this study shows that there is a possibility for the disease to not affect you throughout the entirety of your life.
This study investigates the impact of the 1996 Federal Agricultural Improvement and Reform (FAIR) Act on farmer financial well-being, as measured by net income of farms in California. I use a standard difference-in-differences ordinary least-squares regression estimator to measure this effect. Additionally, I run a quantile regression at the 25th, 50th, and 75th percentiles to investigate the impact at varying percentiles of net cash income. The analysis provides no evidence supporting the positive relationship between the change in policy or government subsidies and net farm income. Further research needs to be done to succinctly measure the effect of current agricultural policy on farmer financial well-being.
This study investigates the impact of the 1996 Federal Agricultural Improvement and Reform (FAIR) Act on farmer financial well-being, as measured by net income of farms in California. I use a standard difference-in-differences ordinary least-squares regression estimator to measure this effect. Additionally, I run a quantile regression at the 25th, 50th, and 75th percentiles to investigate the impact at varying percentiles of net cash income. The analysis provides no evidence supporting the positive relationship between the change in policy or government subsidies and net farm income. Further research needs to be done to succinctly measure the effect of current agricultural policy on farmer financial well-being.
Abstract This study investigates the impact of the 1996 Federal Agricultural Improvement and Reform (FAIR) Act on farmer financial well-being, as measured by net income of farms in California. I use a standard difference-in-differences ordinary least-squares regression estimator to measure this effect. Additionally, I run a quantile regression at the 25th, 50th, and 75th percentiles to investigate the impact at varying percentiles of net cash income. The analysis provides no evidence supporting the positive relationship between the change in policy or government subsidies and net farm income. Further research needs to be done to succinctly measure the effect of current agricultural policy on farmer financial well-being.
This study investigates the impact of the 1996 Federal Agricultural Improvement and Reform (FAIR) Act on farmer financial well-being, as measured by net income of farms in California. I use a standard difference-in-differences ordinary least-squares regression estimator to measure this effect. Additionally, I run a quantile regression at the 25th, 50th, and 75th percentiles to investigate the impact at varying percentiles of net cash income. The analysis provides no evidence supporting the positive relationship between the change in policy or government subsidies and net farm income. Further research needs to be done to succinctly measure the effect of current agricultural policy on farmer financial well-being.
The latest release by the bureau of labor statistics shows an earning differential between men and women. According to the Bureau of Labor Statistics, in the third quarter of 2017, the median weekly earnings for men between 16 and 24 years was $27 higher than for women. The Mincer’s earnings function has constituted the basic workhorse in the study of the link between education, experience and earnings. Mincer’s earnings equation has been complemented by adding more predictors. However, one of the main predictors that plays a key role and has not been pinpointed is discrimination. This study aims to create an endogenous measure of discrimination that identifies marginalization of individuals in terms of gender, quantifying the impact of discrimination on earnings. To accomplish this goal, this paper executes a binomial probit by using data from the American Community Survey (ACS) for the years of 2000 and 2010. This study is in agreement with the literature in finding a large wage gap between the genders and the extent of the importance of education and experience, however, it also creates a measure of marginality that quantifies discrimination and it shows that for certain occupations the market tends to fix the initial disadvantage by rewarding the marginalized individuals in a larger magnitude for an extra year of education and experience.
Due to the increased popularity of ivory in eastern Asia, African elephant populations have diminished considerably during the 20th and 21st centuries. This thesis explores the relationship between inbound tourism revenue, corruption, political stability, both constitutional and practiced anti-poaching methods, as well as the rate of African elephant poaching. These relationships are examined through two separate ordinary least squares regressions with African elephant poaching data between the years of 2002 and 2017. The results of this study show that there is a positive relationship between political stability and the monetary punishments with the African elephant poaching rates. This study also shows that there is a negative relationship between potential jail time, inbound tourism revenues, and corruption with the African elephant poaching rates.
This paper examines the impact of the presence of companies on the success rate of individual’s projects using multiple linear regressions. The presence of for-profit companies on a crowdfunding platform in which individuals and non-profits benefit from the altruism of potential donors impacts the trust that potential donors have that their money is going to go to a charitable cause. Using data on Kickstarter projects from 2009 to 2017, I find inconclusive results, but do find that other factors such as a project’s goal, duration, and backer count have a noticeable effect on the success rate of a project.
A large part of the growth gap in post-communist transition economies can be attributed to how well each country has internalized the inward capital injections from foreign direct investment (FDI) and its accompanying positive spillovers into tangible and sustainable economic growth. On the one hand, most of Central and Eastern European countries have achieved a rapid economic growth from FDI. On the other hand, countries like Georgia, Mongolia, and Tajikistan, are still struggling to use FDI to sustainably expand economically. Thus, this study hypothesizes that the economic successes of transition economies today were largely determined by the individual FDI absorptive capacities. Employing a panel data for a sample of 32 post-communist transition economies, this study finds that the most significant absorptive capacity factor of FDI is human capital. In support of past literature, the study also finds a positive, significant relationship between economic growth and R&D, development of financial and institutional systems, and openness to trade.
Every investor faces numerous decisions when it comes to managing their money. One of these decisions, which is still relevant today, is the choice between active and passive portfolio management. Today’s well renowned economists and investment specialists are not in agreement on this discussion. Passive funds usually generate adequate returns but some argue there is missed opportunity using this strategy. On the other hand, active funds can produce very generous returns, however, there is an argument to be made that their fees offset the additional returns generated. This study tests 146 ‘No Transaction fee only’ mutual funds over a 5-year return period, using an OLS regression model. Isolating a number of specific explanatory variables, we hope to provide further insight for the average investor, and help suggest what types of funds are in their best interest to purchase. Over this 5-year return period we found that actively managed funds did produce higher returns on average (net of fees). However, in the long-term it is inconclusive as to which strategy is superior.
This paper explores how making a decision is influenced by the type of decision-making process people have to go through as well as their social class. It is possible to enhance decision-making skills by understanding its biases. The results of the study rely on data collected by running anonymous surveys on Colorado College undergraduate students. Those findings were made possible by the study of two different models that were built and regressed using the OLS model. It is possible to overcome prejudices since the results of this study show that people’s confidence level without getting advice from anyone is lower as social class decreases. The hypothesis of a higher initial confidence level when coming from a higher class was confirmed. When coming from a higher class, people feel more powerful so they tend to be more confident in themselves. Confidence level also varies considerably based on the type decision-making scenario people are faced with. Only the type of decision one is seeking to make showed to be significant on predicting how many sources the individual reached to in order to make a better decision. The type of decision-making situation both influence the confidence level as well as how many sources are reached in order to improve that specific decision. Financial decisions result in a higher number of resources while personal decisions require the least. Decisions concerning people’s future stand in between the two other decision-making types.
This paper explores how making a decision is influenced by the type of decision-making process people have to go through as well as their social class. It is possible to enhance decision-making skills by understanding its biases. The results of the study rely on data collected by running anonymous surveys on Colorado College undergraduate students. Those findings were made possible by the study of two different models that were built and regressed using the OLS model. It is possible to overcome prejudices since the results of this study show that people’s confidence level without getting advice from anyone is lower as social class decreases. The hypothesis of a higher initial confidence level when coming from a higher class was confirmed. When coming from a higher class, people feel more powerful so they tend to be more confident in themselves. Confidence level also varies considerably based on the type decision-making scenario people are faced with. Only the type of decision one is seeking to make showed to be significant on predicting how many sources the individual reached to in order to make a better decision. The type of decision-making situation both influence the confidence level as well as how many sources are reached in order to improve that specific decision. Financial decisions result in a higher number of resources while personal decisions require the least. Decisions concerning people’s future stand in between the two other decision-making types.
This study investigates the impact of the 1996 Federal Agricultural Improvement and Reform (FAIR) Act on farmer financial well-being, as measured by net income of farms in California. I use a standard difference-in-differences ordinary least-squares regression estimator to measure this effect. Additionally, I run a quantile regression at the 25th, 50th, and 75th percentiles to investigate the impact at varying percentiles of net cash income. The analysis provides no evidence supporting the positive relationship between the change in policy or government subsidies and net farm income. Further research needs to be done to succinctly measure the effect of current agricultural policy on farmer financial well-being.
Climate variability is threatening businesses that rely on outdoor environments for recreational use. Despite awareness of the negative economic impacts of climate change, its effects on the U.S. ski industry have only recently been studied in more detail. This thesis aims to assess how the United States ski industry is adapting business strategy to climate variability. Using OLS regression, this study shows that adaptation strategies such as snow making are profitable to resorts and could be the answer in larger scale adaptation. Other strategies include regional and business diversification to hedge against the impending effects of climate variability.
Due to the increased popularity of ivory in eastern Asia, African elephant populations have diminished considerably during the 20th and 21st centuries. This thesis explores the relationship between inbound tourism revenue, corruption, political stability, both constitutional and practiced anti-poaching methods, as well as the rate of African elephant poaching. These relationships are examined through two separate ordinary least squares regressions with African elephant poaching data between the years of 2002 and 2017. The results of this study show that there is a positive relationship between political stability and the monetary punishments with the African elephant poaching rates. This study also shows that there is a negative relationship between potential jail time, inbound tourism revenues, and corruption with the African elephant poaching rates.
The purpose of this study is to add to the literature of CSR research in hopes of filling a gap about the impact of equitable parental leave on financial performance, laying a foundation to fill other CSR-CFP gaps. Gender-neutral parental leave is discussed as a solution to the crippling effects of unequal parental leave policies on both the labor market and companies who seek top talent. To determine whether companies are incentivized to provide a gender-neutral parental leave policy, a two-model approach was used. First, the Leave Impact Model which analyzes the relationship between employee perspectives, including the presence of equitable parental leave, and a company’s ranking in Forbes’ Top 100 Best Places to work in 2018. Then, the Rank Impact Model which analyzes the relationship between that rank and a company’s financial performance using a modified Three Factor Model by Fama and French. The combination of the two results would offer a link between equitable parental leave and financial performance. However, this study is exemplary of the CSR research to date, finding no significance between the presence of equitable parental leave and a company’s financial performance. As such, no claim as to whether companies are incentivized to provide gender-neutral parental leave on the basis of financial performance can be made. Thus, further CSR research and more adequate CSR definitions and data are of paramount importance.
This paper investigates CSR ratings among firms that have varying corporate board gender compositions within the media, technology, retail and apparel industries in the United States. An empirical model is used to investigate whether the percentage of women board of directors has a substantial effect on a company’s CSR performance, whether or not these differences vary by industry, and if a critical mass of women shifts these results. The conclusions of the paper relied on data from Thomson Reuter’s ASSET4, Spencer Stuarts Annual Indices, and individual financial reports of firms. The analysis provides evidence that there a positive relationship between board gender composition and CSR ratings and that there are some industry level differences but the presence of a critical mass of women does not have a significant impact.
This study aims to identify the effects of American bank scandal penalties on long-term stock price utilizing the Fama-French three-factor model and an event study methodology. We hypothesize that bank penalties have a profoundly negative role on long-term bank stock prices. We examine 145 penalties over 4,526 trading days for the ‘Too Big to Fail’ American banks JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America. Adjusted closing price stock data and penalty data is drawn from an 18-year period spanning from 2000-2017. In the long-run, penalties were found to have no statistically significant impact on stock price, implying that ‘Too Big to Fail’ fail banks enjoy market capitalization benefits from their government designation.
Rage Donating is a novel approach to donating that was created through the emotional and political sentiments of the 2016 Presidential Election. What is so unique about this form of donating is that people are not donating due to moral beliefs or strong support of a specific organization but instead in retaliation to President Trump's politics and their own anger towards the administration. Since the 2016 Presidential Election non-profit organizations like Planned Parenthood and the ACLU to name only a few have seen a drastic increase in donations (Time, 2016). Since this approach and sentiment to donating is so new, not much is understood or researched on the topic. This study aims to understand how emotions, behavior, and sentiments influence a persons' affinity towards political advocacy. This study conducts an OLS regression model analysis to evaluate how anger, civic engagement, and satisfaction with the current political America influence a persons' efforts to change social systems. What was concluded is that behavioral responses (specifically anger) do play a key role in increasing a persons' likelihood to become politically active.
Rage Donating is a novel approach to donating that was created through the emotional and political sentiments of the 2016 Presidential Election. What is so unique about this form of donating is that people are not donating due to moral beliefs or strong support of a specific organization but instead in retaliation to President Trump’s politics and their own anger towards the administration. Since the 2016 Presidential Election non-profit organizations like Planned Parenthood and the ACLU to name only a few have seen a drastic increase in donations (Time, 2016). Since this approach and sentiment to donating is so new, not much is understood or researched on the topic. This study aims to understand how emotions, behavior, and sentiments influence a persons’ affinity towards political advocacy. This study conducts an OLS regression model analysis to evaluate how anger, civic engagement, and satisfaction with the current political America influence a persons’ efforts to change social systems. What was concluded is that behavioral responses (specifically anger) do play a key role in increasing a persons’ likelihood to become politically active.
Corporate Social Responsibility has gained more traction in our modern day society than ever before. It is now a major factor for which a corporation is evaluated on. Corporate Governance, and the goals set fourth through this governance play a major role in dictating the socially responsible actions of a firm. Major facets in the context of corporate governance are Chief Executive Officers, faced with the duty of integrating these goals into every day corporate life. In order to provoke distinct action by a CEO corporations construct defined compensation structures in order to incentivize desired initiatives. This relationship highlights the importance of incentive compensation in relation to socially responsible goals of a corporation. This study takes CSR index data from CSRHub’s database, and compares it to lagged executive compensation data collected from the Mergent Online database. We find that there are distinct relationships between certain forms of executive compensation and CSR rating levels, which are consistent with previous literature. We also find inverse relationships between salary compensation and various forms of CSR when compared to past investigations in the field.
