Business, Dhillon School of

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Now showing 1 - 5 of 87
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    The relationship between cost of equity and ESG: the effect of COVID-19
    (Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business, 2024) Fan, Ruijie; University of Lethbridge. Dhillon School of Business; Tian, Gloria; Asem, Ebenezer
    Several prior studies report that environmental, social, and governance (ESG) initiatives temper the cost of equity. More recent studies show that COVID-19 increased the cost of equity. It is unclear whether the ESG mitigated the higher cost of capital during the COVID period. I focus on studying this using ESG and basic financial data for the period ranging from 2015 to 2022 based on U.S. and Canadian firms listed on NYSE, AMEX, and NASDAQ. The results show that the increase in the cost of equity during the COVID period concentrates less on firms with high ESG performance scores, suggesting ESG mitigated the increase in the cost of equity. This is consistent with the insurance-like effect of ESG on the cost of capital, cushioning the increase in the cost of capital during uncertain periods. In addition, my study reveals that the amplified ESG benefit in cost of equity reduction can be moderated by levels of industrial GDP growth and the stringency of the COVID-19 government policy.
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    Equity market reaction to the Securities and Exchange Commission (SEC) corporate disclosure: executive compensation
    (Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business, 2024) Akumaning, Edward; University of Lethbridge. Dhillon School of Business; Baulkaran, Vishaal
    Corporate disclosure is crucial for corporate governance as it reduces information asymmetry, misalignment of investors’ interests, and other agency costs. Therefore, the US Security and Exchange Commission (SEC) has adopted various disclosure regulations to provide investors and other stakeholders with more transparent and comparable information about executive compensation. This quantitative study seeks to expand the body of knowledge by adopting an event study methodology to explore the stock market reaction to increased corporate disclosure of executive pay for US public firms. The population of this research comprises American-listed firms from 2021-2022. I employ a final sample of 2,914 firms for the complete sample analysis. Applying Zellner’s Seemingly Unrelated Regression (SUR) methodology, I provide evidence that the equity market reacts positively to all the news announcements, giving rise to the 2022 SEC’s final executive compensation disclosure rules adopted on August 25, 2022. This positive market response confirms the prediction that increased compensation disclosure improves governance. The results also suggest that enhanced corporate disclosure increases shareholder value by reducing agency costs linked to information asymmetry. In addition, the positive daily abnormal returns tend to be stronger for small firms versus large ones for the initial publication and the final rules. This suggests that small firms have more information asymmetry, uncertainty, and risks and thus react more positively than large companies that likely have less information asymmetry and uncertainty.
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    Earnings announcement and information spillover: evidence from cross-listing
    (Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business, 2023) Sumon, Khairul Kabir; University of Lethbridge. Dhillon School of Business; Jiao, Feng
    This study explores the intra-country information spillover of earnings announcements by a cross-listed firm to its non-announcing peer firms from the same home country in the US market from 1993 to 2021. Using a standard event study methodology, this study shows that non-announcing peer firms' cumulative abnormal returns (CARs) show a statistically significant positive association with the CARs of announcing firms over a three-day event window around the earnings announcement. The magnitude of information spillover of earnings announcements on peer firms is more pronounced in the bear market than in the bullish market. The intensity of information spillover is stronger and positively related to the home country's financial reporting quality and the size of the announcing firms.
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    Improving non-profit communication by analyzing immigrant settlement experiences through a customer journey lens within the Lethbridge area
    (Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business, 2022) Boniol, Kathleen G.; University of Lethbridge. Dhillon School of Business; Basil, Debra
    This interpretive study examined the Lethbridge new immigrant experience through a customer journey lens. The research drew parallels with the customer journey to better understand the settlement process of immigrants in Lethbridge from start to finish. In this research, I intended to use a mixed methods approach, using in-depth interviews to shape a survey. However, due to several factors, a small data set was obtained during the survey, resulting in the study shifting focus on the results obtained during the in-depth interviews and additional interviews to enhance the rich data set. In total, I conducted 17 interviews. These interviews focused on the Latino and Filipino communities within the Lethbridge area. The interviews focused on their newcomer experience in the Lethbridge area, explicitly asking how they obtained resources during their first few years in the Lethbridge area. The interviews resulted in more understanding of the newcomer experience, highlighting barriers such as language and finance. In addition, I learned from the interviews that word-of-mouth communication is efficient when sharing information about available resources. The results of this research lead to marketing implications and a better understanding of communicating with the immigrant population within the Lethbridge area. Throughout this study, I worked closely with our non-profit partner, United Way of Lethbridge and Southwestern Alberta (UWLSWA).
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    Power at the top: an examination of CEO tenure and excess churn
    (Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business, 2022-10-07) Ziyatkhanli, Murad; University of Lethbridge. Dhillon School of Business; Tian, Gloria; Baulkaran, Vishaal
    This research primarily examines the relationship between CEO power and CEO tenure in Standard & Poor’s 1500 firms from 1997 to 2018. The panel regression and 2 step-system GMM models suggest that there is a strong positive relationship between CEO power and tenure. Additionally, power has a positive significant moderating effect on the performance–tenure relationship. The results are robust across crisis subsamples. This paper also investigates excess CEO churning. I find that about 1.6% of companies has excess CEO turnover. The logit models indicate that companies with powerful CEOs are less likely to experience excess turnover.