Miracle-dz/UniFAR-FTUs huggingface dataset:
Equity Duration

The concept of bond duration was originally introduced by Macaulay (1938) and nowadays is well- established in the fixed-income literature. In this paper, I lift the same concepts from the fixed-income asset class and apply them to equities. I derive three candidate models for estimating the duration of a stock. The models are vastly different in their theoretical underpinnings, yet there is strong empirical evidence of positive co-movements between all three models in my sample. Furthermore, I investigate the relationship between the equity duration factor and various common equity factors. Empirical evidence suggests that low-duration stocks are also high-value, high-profitability, low-investment and low-risk stocks. In particular, there is a strong link between duration and the classical value factor – both theoretically and empirically. Importantly, however, the correspondence between the two factors is not one-to-one in my sample. I perform numerous empirical tests suggesting that a duration strategy out-performed a value-strategy in the period following the Great Financial Crisis (2007–08).
Tournament Culture and Corporate Misconduct : Evidence using Machine Learning

This paper examines the type of corporate culture that leads to misconduct activities. Taking the management's tone in the 10-K report as the culture, we found that a higher internal compete culture (or tournament culture) increases the rate of misconduct activities such as restatements, earnings management, and financial fraud. A 1% change in tournament culture increases the chance of misconduct activities by 5% due to the firm's idiosyncratic risk. We externally validate culture measures using the company's Glassdoor rating, CSR score, and other cultural proxies. The results are robust regarding systematic risk, market competition, governance characteristics, CEO effects, and endogeneity effects.
Profit Efficiency and Its Determinants: A Comparative Analysis of Energy and Non-Energy Sectors of Pakistan using Stochastic Frontier Approach

This study examines profit efficiency and its determinants in the corporate sector of Pakistan during the study period by using a stochastic frontier approach (SFA), specified by Battese and Coelli (1995). A balanced panel data of 30 companies, 22 manufacturing, and 8 energy companies for the period 2009–2018 was constructed for the empirical analysis. All the required data for the analysis were obtained from various annual reports of the company and its official website. The study found that the profit efficiency of the corporate sector of Pakistan is increasing over the study period. However, on average, overall companies have met only 35.75% of their profit-generating potentialities relative to the best-practice companies, due to inefficiency, which is arising within the companies supported by a degree of variance value which is 75.75%. Companies in the energy sector have greater profit efficiency (52%) than the non-energy sector (39%). Further overall efficiency effects model shows that firm-age, labor productivity, export orientation, and firm-size are positively related to the profit efficiency of companies in Pakistan. However, labor productivity and export orientation are negatively correlated in the manufacturing sector but positively correlated with profit efficiency in the energy sector. Whereas firm size is positively related to profit efficiency in the manufacturing sector but has an insignificant relationship in the energy sector. The research findings can help managers and policymakers of the corporate sector of Pakistan in managing the level of efficiency in energy and non-energy companies and implications of strategies for improving organization efficiency by considering determinant factors and driving policies that influence profit efficiency under each sector.
Asset Price Bubbles with Low Interest Rates: Not All Bubbles are Likely to Emerge

Leveraged asset price bubbles, i.e., boom-bust phases in asset prices accompanied by credit overhangs, are more harmful than unleveraged ones, in terms of financial and macroeconomic stability. If bubbles are not all alike, neither are all bubbles likely? As bubbles are difficult to detect in real-time data, early researches focused on the macroeconomic conditions exacerbating the bubbles' nature. We specifically look at a condition that could become more persistent in the aftermath of COVID-19 pandemic: low risk-free interest rates. In an OLG model, we show that the existence condition for a leveraged bubble is more easily met than that of an unleveraged bubble with low interest rates, and thus leveraged bubbly episodes are relatively more likely to emerge than unleveraged ones. Then, we show that this result holds empirically for post-World War II bubbles in advanced economies.
Accurate Occupancy Detection of an Office Room From Light, Temperature, Humidity and CO2 Measurements Using Statistical Learning Models

This project aims at developing, validating, and testing several classification statistical models that could predict whether or not an office room is occupied using several data features, namely temperature (◦C), light (lx), humidity (%), CO2 (ppm), and a humidity ratio. The data is modeled using classification techniques i.e. Logistic regression, Classification tree, Bagging-Random forest, and Gradient boosted trees. <br><br>These models were trained and then after evaluated against validation and test sets and using confusion matrices to obtain classification and mis-classification rates. The logistic model was trained using glmnet R package, Tree package for classification tree model, random Forest for both Bagging and Random Forest Models, and gbm package for Gradient Boosted Model. <br><br>The best accuracy was obtained from the Random Forest Model with a classification rate of 93.21% when it was evaluated against the test set. Light sensor is also the most significant variable in predicting whether the office room is occupied or not, this was observed in all the five models.
The Effects of Communication by Interactive Road Signalling on Behavior While Driving

In this study was analyzed the effect of communication by interactive road signaling on the behavior of the drivers. A study published in 2013 by Scott &amp; Parker, obtained the results that high reward-sensitivity drivers are considered to be risky drivers, as they report higher risky driving behavior and are likely to infringe traffic rules. This two factor theory based on punishment and reward was revealed by neurophysiological studies that discovered a pleasure center in the brain. Starting from Mowrer’s theory came the claim that reward and punishment are different processes that express an emotion that can serve as internal motivators of behavior. A road signal that is showing the speed and give a "smiley" feedback was used as a reward for the drivers that did not violated the speed limit and a road signal that is showing the speed and give a "sad face" was used as a punishment for the drivers that violated the speed limit. The results of this study is that the mean of the speed measured shown with the presence of message is reducing the risk of big speed violations (54.85km/h) compared with the hidden condition that is showing a mean of speeds of 67.73km/H.
Dividend Policy and the COVID-19 Crisis

This paper examines dividend payment behavior of the S&P1500 firms during the COVID-19 crisis characterized by the stock market crash and a V-shaped stock price recovery propelled by technology stocks. We find that the great majority of firms either maintain or increase the level of dividend payment during the crisis period. Yet, the relationship between the dividend payout and bottom-line earnings available to common shareholders is significantly negative. This relationship holds even for dividend-increasing firms whose earnings streams should be relatively higher (or increasing) compared to other firms in the sample. We also find that forecast earnings of up to one year in the future are negatively associated with the current dividend level implying that the existing payout policies are unsustainable. Interestingly, we document similar patterns for stock repurchases.
Experience as a Driver of Individual Investor's Product Class Choice

I use an administrative dataset from a large German discount broker to investigate the influence of individual investors' experience on investment product choices. I find that the probability to trade warrants increases with investor experience (approximated by account tenure, months of active trading or number of purchases). Account tenure has a negative impact on bonds, funds and certificates trading, whereas number of active months and purchases increases the probability to trade in all product classes. However, the impact of these variable on market entry is not the same: the probability to enter bond and fund markets decreases with experience, and increases for other products. When relating investors' product choices with previous account performance, recent highest and lowest returns stimulate warrant trading, whereas in the long term it is only related to lowest return quintile.
Seasoned Equity Issuers’ Prospectus Filings: How Informative Is Their Tone?

Seasoned equity issuers file Forms S and 424B with the Securities and Exchange Commission. We find that the weak-modal tone of 424B filings is positively related to offer price discounts and negatively related to offer-day stock returns. Increases in cautionary (weak-modal, uncertain and negative) tone from the initial S filing to the 424B filing are followed by low abnormal stock returns during the three or ten trading days after the offering. We also provide preliminary evidence that the use of cautionary tone relates positively to litigation risk and increased after the passage of the Sarbanes-Oxley Act. Our findings suggest that the cautionary tone of seasoned equity issuers’ prospectuses has significant negative information content, which is gradually incorporated into the stock prices.
Private Information Dissemination in the Secondary Loan Market

We consider loans being marked to market to constitute information about borrowing firms’ profitability and risk only immediately available to large institutional traders, so-called qualified institutional buyers (QIBs). Smaller investors, so-called non-QIBs, do not have immediate access to such information because they are not qualified to enter the secondary loan market. We investigate the effect of privileged information releases first on stock bid-ask spreads, then on the abnormal returns QIBs earn by trading borrowing firms’ stock. We show QIBs to actively trade on information in the equity market, elevating the level of information asymmetry while earning significant returns. Our paper reveals private information dissemination in the secondary loan market to affect the stock market information environment and yield benefits to large insiders with priority access to important information about the quality of borrowing firms.
Impact of Intangible Assets on Profitability, Efficiency, Capital Structure and Dividend Policy, and Market Value of Technology Firms: A Global Comparative Analysis

Purpose - The purpose of this study is to examine the degree to which intangible assets affect financial performance and policy of the technological sector. <br><br>Design/methodology/approach - SEM analysis was used to ascertain the relationship among intangible assets, firm performance, firm policy, and firm value in the year 2015 to 2018 of 80 companies in the technology sector globally. The measure used in this study ROA, ROE, ROIC, ATO, profitability, debt to equity ratio, dividend payout ratio, price-earnings ratio, price to sales, and price to book value. <br><br>Finding - The results from MGA revealed that there are differences (p &lt; .05) in the significance of the impact of Assets on the criterion variable between a few countries for instance Asset’s impact on ROIC is significantly different between Russia &amp; China and USA. The results are presented in Table 9. <br><br>Practical implications - Owners and managers of technological sector global companies must recognize the importance of both the physical capital and the intangible resources to the best interest of the companies. <br><br>Originality/value - This is the first paper to examine the impact of intangible assets on firm performance, policies, and value through cross country analysis in the technological sector. <br>
Attribute substitution, earlier-generation economic approaches and behavioural economics

ABSTRACT The present paper examines attribute substitution in terms of both heuristics and attribution theory in social psychology. Alternative ‘old’ approaches in psychology were special because they considered choice in terms that were similar to attributional inference in social psychology and anticipated limitations of the static heuristics and biases approach. Attribute substitution plays an important role in reflective reasoning as an independent entity relative to rationality and produces good decisions, even those are sub-optimal and may be influenced by primitive processes such as intuition and habits. The attribute-substitution research enhances our understanding of intense shifts in economic expectations. It makes possible the conceptual incorporation of substantive theoretical constructions, which are inherent in psychological propensities of alternative, and mainly, heterodox approaches in economics such as Post Keynesian, Institutional and Austrian economics. This research agenda paves the way for possible forms of synthesis of those theories with behavioural economics.
The Impact of Global Culture Toward Local Wisdom: A Study on Multiculturalism & Mass Media

Today, most markets are seeking more than just a one-time exchange or transaction with customers. The focus of market-driven companies is on developing and sustaining relationships with their customers. Successful companies recognize that creating, communicating, and delivering value to their customers is extremely important. Marketing facilitates the exchange process and the development of relationships by carefully examining the needs and wants of consumers, developing a product or service that satisfies these needs, offering it at a certain price, making it available through a particular place or channel of distribution, and developing a program of promotion or communication to create awareness and interest. Global culture always influences how we think, feel, and behave. Because of the cultural diversity of the Indonesia, nowhere is there a greater potential for inaccurate communication and misunderstanding. Cultural pluralism depends on cultural inclusion a commitment to acknowledge, respect, and adapt to others who are differently from us. Culture and communication are inseparable. The way we communicate, what we believe, what we say, the language choices we use, and the nonverbal signals we employ are all a function of the culture we acquire. How we speak and relate nonverbally to others is learned from the culture in which we grow up.
Standing in the Limelight: EDGAR Attention and Managerial Bad News Hoarding

This paper examines the effect of active attention from sophisticated market participants on managerial bad news hoarding. Using EDGAR search volume (ESV) as a direct measure, we find that, due to the increased cost of bad news disclosure, firms under greater active attention from sophisticated market participants tend to hide bad news and release it subsequently, thus increasing future stock price crash risk. The impact of EDGAR attention is stronger for firms with higher ex-ante cost of bad news disclosure. Evidence from option prices, management guidance, and accounting practices further confirms managers’ tendency to hide bad news under greater active attention. Three plausible natural experiments based on the implementation of EDGAR, shareholder distraction by other industries, and the mandatory adoption of XBRL provide a causal inference. By providing systematic evidence on the impact of attention from sophisticated market participants on managerial bad news hoarding, this paper sheds light on the pressure effect of external attention on managers’ strategic bad news disclosure.
Validation of Customers’ Perceived E-Service Quality Determinants: A Study of Online Shoppers

The purpose of this study is to refine and examine the reliability and validity of e-service quality determinants in online purchase environment. The study assessed the perception of 425 online buyers from Rajasthan. The measure used for the study was the determinants of e-service quality to study customers’ perception about various key e-service quality dimensions in online purchase environment. Confirmatory Factors Analysis (CFA) was used to test the reliability and validity of the measurement model. The findings revealed the good and acceptable internal consistency among the constructs of the study. The measurement model fit was found to be good using different model fit indices like CMIN, DF, GFI, NFI, CHI, IFI, TLI, and RMSEA.
Factors Influencing Language Learning: Experiences from Diverse Cultural Backgrounds

As globalization permeates all areas of the society, educational institutes embark on the challenge of providing effective language learning. Although various studies have been conducted on this particular topic, perceptions from diverse learners remain scarce and limited. Available studies often represent the ideas of a particular race, nation, or ethnic group. This study hence, explored the perceptions of language learners from varied cultural backgrounds to provide a better representation of the the multi-cultural environment that characterizes most societies nowadays. Specifically, it endeavored to find out the varied factors that influence language learning. Result showed five important factors as technology, environment, support system, cultural background, and profession to be most influencing among learners in their quest to learn a second or foreign language.
Change in Sharia Screening Methodology and Share Price Informativeness

Sharia compliant status gives assurance to Sharia based investors that their investment is in compliance with Islamic values. The implementation of new Sharia screening methodology, which is more demanding than the previous one, has significant impact on price informativeness in the Kuala Lumpur Stock Exchange (KLSE). We find that Sharia compliant firms have significantly greater return synchronicity after the new screening methodology is implemented. Our findings suggest that the implementation of the new screening methodology leads Sharia compliant firms to impound global and local market information. We also find that Sharia compliant firms with greater government ownership and CEO duality impound global and market information faster, respectively.
Proprietary Information and the Choice Between Public and Private Debt

The high costs of disclosing confidential information lead firms with proprietary information to prefer private debt (bank loan) to public debt (corporate bond). We provide empirical evidence supporting this proposition using the staggered adoption of the inevitable disclosure doctrine (IDD) by US state courts that exogenously increased the value of proprietary information. The focal firms are significantly less likely to issue bonds after the IDD adoption. Financing through public debt decreases more for firms in which the protection of proprietary information is relatively more important.
Microcredit in Cambodia: Why is There So Much Support for a Failed Poverty Reduction Model?

Cambodia’s microcredit sector – the world’s largest (in per capita terms) and most profitable – has created a raft of negative economic and social phenomena that are increasingly undermining the functioning of the economy and cohesiveness of society. Three especially damaging trajectories associated with Cambodia’s microcredit sector are: (1) a ‘no-growth’ low productivity economic structure built on an ‘extractivist’ logic; (2) reckless lending strategies that have created dangerous levels of over-indebtedness in the poorest communities; and (3) the widespread use of land titles as collateral which has inevitably led to the growing loss of land by the poor through coerced informal sales. The COVID-19 pandemic may require the government to bail-out struggling microcredit institutions in Cambodia. A logical, pro-poor way forward would be to make such bail-outs conditional upon an agreed conversion of existing privately/foreign owned microcredit institutions into local community-owned and controlled financial ones. Debt-for-equity swaps would be one way to achieve this goal. <br>
One Man Two Hats - What's All the Commotion!

We examine performance in publicly listed U.K. companies over a period that encompasses issuance of the Cadbury Committee's Code of Best Practice calling for the abolition of the combined CEO and COB position. We find companies splitting the combined CEO and COB position to conform to the Code's requirement did not exhibit any absolute or relative improvement in performance to various peer-group benchmarks. We do not necessarily scoff at mandated board structures, but the evidence appears to be that such legislature coercing the abandonment of the combined CEO and COB position appears to be wide of the mark.
Growth in Longer-Term Auto Loans

This is part of a series of quarterly reports of consumer credit trends produced by the Consumer Financial Protection Bureau using a longitudinal, nationally-representative sample of approximately five million de-identified credit records maintained by one of the three nationwide credit reporting agencies. This first report analyzes auto lending trends with a focus on the growth of longer-term auto loans of six years or longer.
Disciplinary Sanctions and Audit Quality: Empirical Evidence from an External Oversight System

This paper provides empirical evidence on the impact of disciplinary sanctions on audit quality, based on the external oversight system set up in Spain in the early nineties. Specifically, we examine the effects of the sanctions imposed by the Institute of Accounting and Auditing (ICAC), a government regulatory agency independent from the auditing industry. To proxy for audit quality, two client-specific earnings quality indicators are considered; i.e. the likelihood of loss reporting and abnormal accruals. According to our results, the Spanish external oversight system does not penalise isolated but structural audit malpractice, since sanctioned auditors exhibit lower average audit quality than non sanctioned auditors. In addition, the empirical evidence provided in this study suggests that audit quality dramatically increases after the start date of an external inspection ultimately leading to a sanction. Audit firms try either to influence the outcome of the ongoing disciplinary process, or to counteract the reputational costs inherent to the probable disclosure of a sanction.
Tests of Return Predictability: A Comparative Study

Evidence of return predictability based on dividend yields remains inconclusive. Predictive regressions are subject to subtle econometric issues rendering standard inference inappropriate. As a consequence, there now exists a broad range of statistical tests. We review the tests from Stambaugh (1999), Lewellen (2004), Campbell and Yogo (2006), and Cochrane (2007) and complement our analysis with standard maximum likelihood as well as restricted maximum likelihood estimation as discussed by Chen and Deo (2009). When applied to two samples from the literature, we find that p-values range from almost 0% to more than 20%. We reconcile the conflicting evidence and identify two main sources: First, we attribute part of it to the two different sample periods. Second, we urge to go beyond the p-value and find that some of the tests are severely size-distorted, whereas others lack power. To demonstrate this, we use an extensive simulation study to assess the size (falsely rejecting a true null) and power (correctly rejecting a false null) of the selected tests.