Analysis: Corporate America’s cash pile-up a reaction to refinancing risk

Cox School of Business

Analysis: Corporate America’s cash pile-up a reaction to refinancing risk

companies-raking-in-cash-hoarding-not-hiringWhy has corporate America been awash in record levels of cash? Numerous theories are offered as to why firms amass: Firms themselves are riskier, volatile, pessimistic and have record profits, to name a few. But an overlooked reason, according to new research by SMU Cox Rauscher Chair William Maxwell and co-authors, is that firms are hedging refinancing risk. Cash is a hedge in case they cannot raise the funds they may need if credit conditions are tight or another type of shock hits.

August 2, 2013|Categories: Economics & Statistics, Researcher news|Tags: , |

The Undying Radio: Familiarity breeds content when it comes to listeners and music

Many music listeners want to perceive themselves as receptive to novel music. But new research says otherwise when it comes to our choices, says Morgan Ward in SMU's Cox School of Business. Tension between the novel and the familiar leads to interesting insights for marketers. The research offers lessons in how actual behavior trumps media portrayals of consumers' perennial desires for novelty.

July 29, 2013|Categories: Culture, Society & Family, Mind & Brain, Researcher news|Tags: , |

SMU-North Texas Food Bank study will analyze causes of hunger in Dallas and rural North Texas

Economists at SMU will analyze the roles social networks and isolation play in fighting hunger in North Texas. Recent studies have found that household economic resources are not the only factor contributing to food insecurity, according to Thomas B. Fomby, SMU professor of economics.

CNN: Study links mutual fund decisions with religion

CNN's "Belief" blog covered the research of SMU financial economist Dr. Johan Sulaeman. In the Sept. 25 article "Study links mutual fund decisions with religion," CNN journalist Laura Koran reported on research by Sulaeman and others who found that religion plays a major role in many Americans' lives, including their investing. "Specifically, the study found that mutual funds located in predominantly Catholic areas are associated with increasing fund volatility, a measure of risk taking, by about 6 percent, compared to those in low-Catholic areas. Those in predominately Protestant counties have a 14 percent lower fund volatility compared with those in low-Protestant areas."

Post-Gazette: Bearing an eternal summer: Marketers target people’s mind-set, not age

The research of Thomas E. Barry, vice president for executive affairs at SMU and professor of marketing in the Edwin L. Cox School of Business, was featured in the Pittsburgh Post-Gazette. The Oct. 14 feature story "Marketers target people's mind-set, not age" by journalist Teresa F. Lindeman explores the concept "you're as old as you feel."

Salon: What baseball tells us about racism

md_horiz.jpgBest-selling author, syndicated columnist and progressive talk-radio host David Sirota has covered the research of SMU's Dr. Johan Sulaeman, an expert in labor economics and discrimination. The article published in the Sept. 30 issue of Salon.

An assistant professor of finance in the Cox School of Business, Sulaeman and his co-authors analyzed 3.5 million Major League Baseball pitches and found that racial/ethnic bias by home plate umpires lowers the performance of Major League's minority pitchers, diminishing their pay compared to white pitchers.

The study found that minority pitchers reacted to umpire bias by playing it safe with the pitches they throw in a way that actually harmed their performance.

In These Times: How Baseball Explains Modern Racism

phpThumb_generated_thumbnailjpg.jpegBest-selling author, syndicated columnist and progressive talk-radio host David Sirota has covered the research of SMU's Dr. Johan Sulaeman, an expert in labor economics and discrimination. The article published in the Sept. 30 issue of In These Times.

An assistant professor of finance in the Cox School of Business, Sulaeman and his co-authors analyzed 3.5 million Major League Baseball pitches and found that racial/ethnic bias by home plate umpires lowers the performance of Major League's minority pitchers, diminishing their pay compared to white pitchers.

The study found that minority pitchers reacted to umpire bias by playing it safe with the pitches they throw in a way that actually harmed their performance.

Dallas Morning News: Economic Freedom is Waning in the United States

Economic%20Freedom%20c400x300.jpgDallas Morning News editorial writer Jim Mitchell has written about the research of SMU economist Robert Lawson, co-author on the new report Economic Freedom of the World: 2011 Annual Report.

Lawson is the Jerome M. Fullinwider Chair in Economic Freedom in the O'Neil Center for Global Markets and Freedom at the SMU Cox School of Business.

The research shows that the average economic freedom score fell to its lowest in nearly three decades, with the United States in particular dropping from No. 6 to No. 10.

Report: U.S. Economic Freedom Continues Fall; Global Average Declines

Levels of economic freedom have decreased around the globe, says SMU economist Robert Lawson, co-author on the new report Economic Freedom of the World: 2011 Annual Report. The research shows that the average economic freedom score fell to its lowest in nearly three decades, with the surprising news being that the United States in particular continues dropping, going this period from No. 6 to No. 10.

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