Cox School of Business
Numerous U.S. banks failed during the recent financial crisis — and more would have, absent governmental intervention, says short-selling expert Hemang Desai, an SMU professor.
New research from Desai suggests short sellers were sensitive to the leading indicators of the crisis, and were the first to react, ahead of equity analysts, ratings agencies and auditors.
In a first-of-its-kind paper, SMU Cox Distinguished Finance Professor James Linck, with Viktar Fedaseyeu and Hannes Wagner, analyze directors — who they are, what they do and how much they are paid. Continue reading
Why 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.
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. Continue reading
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. Continue reading
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.” Continue reading