Business, Dhillon School of

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The effects of capital structure on accrual- and cash-flow-based performance of US banks
(Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business, 2019) Hoque, Moksidul; University of Lethbridge. Dhillon School of Business.; Asem, Ebenezer; Alam, Shamsul
This study investigates the inverted-U effects of capital structure on accrual- and cash-flow-based performance of US banks from 1980 to 2017. Capital structure is measured by the debt to assets ratio, accrual-based performance is measured by return on assets, and cash-flow-based performance by cash-flow on assets. We use panel data analysis - pooled ordinary least square, fixed effects, and random-effects models. Collectively, our results support the inverted-U effects of capital structure on accrual- and cash-flow-based performance. Cash-flow-based performance is higher than accrual-based performance at all levels of debt. Cash-flow-based performance recommends a higher level of debt in the optimum capital structure. We also find that the following bank characteristics are significant in explaining the relationship between capital structure and bank performance: size, asset turnover, net loans to deposits, and loan loss reserves to assets.
Is the European Economic and Monetary Union (EMU) detrimental to the Euro-area firms' performance?
(Lethbridge, Alta. : University of Lethbridge, Faculty of Management, c2012, 2012) Kar, Anirban; Alam, Shamsul
This thesis provides new insight into the EMU’s impact on the Euro-area firms’ performance, by examining the firms’ accounting rates of return and financial cash flows. The impact is evaluated separately for the EMU formation and the physical Euro adoption, and over different time horizons. The existing literature does not directly examine these issues. This study uses the regression model of the difference-in-differences approach to examine 121 Euro-area and North American firms, covering 14 sectors, over the period from 1992 to 2008. The results indicate a positive impact of the EMU on the firms’ financial cash flows, especially after the Euro adoption, which support the related literature. However, the accounting rates of return suggest a mostly negative impact. The magnitude of the impacts declines over time. The results are robust with respect to GDP as a control variable. The study also reports the EMU’s impact on 4 major industrial sectors.
Morningstar ratings and performance of mutual funds
(Lethbridge, Alta. : University of Lethbridge, Faculty of Management, 2013) Sinha, Partha Sarati; Alam, Shamsul
In this study, we examine the predictive power of Morningstar’s new ratings for mutual funds’ future performance and compare its predictive power with four competing predictors. We also examine Morningstar’s new ratings’ predictive power in bull and bear periods. Furthermore, we compare the predictive power of the new and old star-ratings. We perform all these tests for both U.S. and Canadian equity funds. We use a regression model and non-parametric tests in this study. The results suggest Morningstar’s new ratings accurately rank funds and predict out-of-sample performance of only five-star rated complete funds for short- and medium-terms for U.S., and for medium-term only for Canada. Also, predictive power of Morningstar’s new ratings is low compared to four alternative predictors for both countries. Further, the new star ratings accurately predicts for bear period for both markets. The old ratings (new ratings), however relatively predict better for U.S. funds (Canadian funds).
Profitability of Islamic banks in Malaysa
(Lethbridge, Alta. : University of Lethbridge, Faculty of Management, 2013) Ahangi, Parviz; University of Lethbridge. Faculty of Management; Alam, Shamsul; Richert, Robert
This thesis analyzes the effect of internal and external factors on the profitability of all full-fledged Islamic banks in Malaysia. Additionally, this study examines the robustness of results by using the financial crisis of 2008-2009 as a control variable. The study uses regression analysis to examine the data from 16 Islamic banks in Malaysia for the period from 2008 to 2012. The results suggest that a high equity-to-asset ratio significantly increases the profitability of Islamic banks, while negatively affecting the return on equities. Simultaneously, an increase in total expenses leads to high returns on assets and return on equities. However, an increase in deposit-to-asset and loan-to-asset ratios does not significantly affect the profitability of Islamic banks. The taxes imposed on banks significantly decrease their profits. Additionally, the results indicate a positive and significant relationship between the concentration and the profitability of the banks. Moreover, an increase in the inflation rate negatively affects the profitability of Islamic banks. Finally, the results are robust with respect to the financial crisis of 2008-2009.