Essays in Asset Pricing and Financial Intermediation

This dissertation consists of three essays on the topics of asset pricing, financial intermediation, and macrofinance. The first essay shows the role of government risk in asset prices. Firms that depend on the government—either through implicit guarantees or direct sales—face a special risk: government risk. I show that this risk is priced and is not spanned by other factors. I study four cases: U.S. banks, U.S. auto companies, U.S. government suppliers, and Japanese zombie firms. The U.S. cases involve direct exposure to government risk, and a U.S. government risk factor prices portfolios formed from government-dependent firms. Japanese zombies rely on the government\u27s constraints through the intermediary sector, and covariance with government risk drives the intermediary asset pricing result in an environment of loan forbearance. In the second essay, I show that the effects of regulatory forbearance in Japan confound asset pricing premiums. Japanese zombie firms—companies that receive subsidized credit from banks—arise from regulatory forbearance, and they affect Japanese value and momentum premiums. Controlling for zombies revives the momentum effect in Japan, widely known to be too low. Zombie-adjusted momentum doubles the unadjusted momentum Sharpe ratio, commands a positive price of risk, and is unspanned by other factors. Value, too, looks more in line with international results. The low momentum effect arises in Japan because of zombies\u27 relationship with their bank lenders. Syndicated loan lending relationships indicate that firms with forbearance-inclined lenders drive low momentum, and zombie losers\u27 high bank beta leads to low momentum returns in strong bank return months. The third essay, coauthored with Chase P. Ross and Landon J. Ross, studies the effect of firm cash holdings on equity returns. U.S. companies hold cash on their balance sheets, and the share of assets held in cash varies across companies and over time. A firm\u27s cash holdings is an implicit holding in a low-return asset, which pushes down a firm\u27s equity return, and investors should thus hedge out the cash on the balance sheets when calculating equity returns. We show that neglecting to consider cash holdings results in biases in portfolio optimization, factor creation, and cross-sectional asset pricing. We decompose common stock market betas into components, which depend on the portfolio\u27s cash holding, the return on cash, and the portfolio\u27s cash-hedged equity return

At 21 - the Journal of Business to Business Marketing Book Review Section with an analysis of book reviews rendered : looking toward the future

Purpose: The aim of this article is to examine the development of the book review section of the Journal of Business-to-Business Marketing relative to changes in the publication industry. Methodology/approach: The analysis compared descriptive categories and content analysis of the book reviews and book review essays across four time periods. The content analysis was conducted using Leximancer, an automatic text analytic tool that codes according to the co-occurrence of main concepts within the text. The time periods relate to the journal volumes: 1–5, 6–10, 11–15, and 16–21. These time periods were tagged within Leximancer indicating the differences and commonalities of the book review content between each time period. Findings: The results indicated that the number of book reviews has fallen over the journal’s life. The following reasons influencing the falling number of book reviews were proposed: changing promotion/tenure criteria for academics over the last 20 years, the different attitudes between academics and practitioners in relation to book content, financial pressures placed on academic publishers, and the changing proportion of the university library budget allocated to procuring books. The results also indicated that the topics covered in the book reviews have changed over the four time periods. These changes are thought to be influenced by the changing “hot topics” business marketing academics are interested in and topics preferred by book publishers. Implications: Although the publishing industry and academic reward systems continue to change, books will continue to be an important outlet for the dissemination of knowledge and academics will continue to publish books. The broader publishing environment and discipline specific trends should be considered when determining publishing approaches. Books offer an alternative avenue for reaching a broad academic audience (rather than those who only read specialized journals) and academics passionate about their research will be motivated to share with a broad audience.Peer reviewe

Red Imported Fire Ant in Australia: What if we lose the war?

In Australia, a national eradication programme for the Red Imported Fire Ant (Solenopsis invicta Buren), one of the world's most invasive species, has been in operation since 2001 when the pest was first detected in Brisbane, Queensland. Since that time, four separate incursions of this ant have been successfully eradicated from this country, but the main Brisbane population remains. Cost-benefit analyses already conducted put the likely impact of Red Imported Fire Ant in Australia, if not eradicated, at between A$8.5 and A$45 billion. Despite this, ongoing funding for the eradication programme is not assured. A recent external review has concluded that it remains technically feasible, cost beneficial and in the national interest to eradicate. In support of previous analyses, our study highlights some of the potential impacts of Red Imported Fire Ant in Australia in more detail and provides case examples. Results show that adverse impacts are likely in most sectors of the economy, and will be felt not only by agricultural industries, but also the building and construction, tourism, electrical and communications industries. In addition to industry effects, there will also be negative impacts on public health and lifestyle, the environment and infrastructure such as main roads, airports and schools. Our estimates of potential cost impacts in the case examples where extrapolation was possible exceed A$1.65 billion/year and support previous predictions. We conclude that increased spending is justified to avert ‘invasion debt’ – the future cost of battling pests that escape today. This is a war that Australia cannot afford to lose

Effects of an Interactive, Computer-Based, Abstinence Education Curriculum on Selected Student Outcomes

A variety of environmental health issues occur within homes along the US/Mexico border region. Individuals living in this region are often not aware that specific issues, including pesticide safety, occur in their homes and may not understand the potential adverse effects of pesticide use on their families’ health. The Environmental Health/Home Safety Education Project created by the Southern Area Health Education Center at New Mexico State University, utilizes promotoras (community health workers) to educate clients on pesticide safety issues. Data from 367 pre/post tests and home assessments were collected from 2002-2005. The data were analyzed to detect changes in clients’ knowledge or behavior as they related to protecting themselves and their families against unsafe pesticide use and storage. Statistically significant changes occurred with both knowledge and behavior in regards to safe pesticide use. Through this culturally appropriate intervention, the promotoras provide practical information allowing clients to make their homes safer

Paediatric HERMES: European accreditation of training centres in paediatric respiratory medicine

HERMES: European accreditation of training centres in paediatric respiratory medicine http://ow.ly/ZBmUg

Seismic Reflection Studies in Long Valley Caldera, Califomia

This is the published version, also available here: http://dx.doi.org/10.1029/90JB02401.Seismic reflection studies in Long Valley caldera, California, indicate that seismic methods may be successfully employed to image certain types of features in young silicic caldera environments. However, near-surface geological conditions within these environments severely test the seismic reflection method. Data quality are degraded by static, reverberation, and band-limiting problems due to these near-surface conditions. In Long Valley, seismic reflection and refraction methods were used to image both the shallow and deep geothermal aquifers within the area. The deep geothermal aquifer, the welded Bishop Tuff, was imaged as a fairly continuous reflector across the western moat of the caldera. Near-surface refraction information indicates that there may be a buried paleochannel system or horst and graben system that could control the shallow geothermal flow pattern. High-amplitude events observed in a wide-angle survey were originally interpreted as reflections from a contemporary magma body. However, a migration of the events utilizing the new generalized cellular migration algorithm indicates that these events are probably reflections from the faults of the caldera ring fracture system. The reflections may be caused by the high acoustic impedance contrast associated with the juxtaposition of relatively low-velocity, low-density, caldera fill against the granite plutons and metasediments of the Sierran basement along this fault system

Reducing Sexual Risk among Racial/ethnic-minority Ninth Grade Students: Using Intervention Mapping to Modify an Evidenced-based Curriculum

Background: Racial/ethnic-minority 9th graders are at increased risk for teen pregnancy, HIV, and STIs compared to their White peers. Yet, few effective sexual health education programs exist for this population. Purpose: To apply IM Adapt—a systematic theory- and evidence-based approach to program adaptation—to modify an effective middle school sexual health education curriculum, It’s Your Game…Keep It Real! (IYG), for racial/ethnic-minority 9th graders. Methods: Following the six steps of IM Adapt, we conducted a needs assessment to describe the health problems and risk behaviors of the new population; reviewed existing evidence-based programs; assessed the fit of IYG for the new population regarding behavioral outcomes, determinants, change methods, delivery, and implementation; modified materials and activities; planned for implementation and evaluation. Results: Needs assessment findings indicated that IYG targeted relevant health and risk behaviors for racial/ethnic-minority 9th graders but required additional focus on contraceptive use, dating violence prevention, active consent, and access to healthcare services. Behavioral outcomes and matrices of change objectives for IYG were modified accordingly. Theoretical methods and practical applications were identified to address these behavioral outcomes, and new activities developed. Youth provided input on activity modifications. School personnel guided modifications to IYG’s scope and sequence, and delivery. The adapted program, Your Game, Your Life, comprised fifteen 30-minute lessons targeting determinants of sexual behavior and healthy dating relationships. Pilot-test data from 9th graders in two urban high schools indicate promising results. Conclusion: IM Adapt provides a systematic theory- and evidence-based approach for adapting existing evidence-based sexual health education curricula for a new population whilst retaining essential elements that made the original program effective. Youth and school personnel input ensured that the adapted program was age-appropriate, culturally sensitive, and responsive to the needs of the new population. IM Adapt contributes to the limited literature on systematic approaches to program adaptation

Using Intervention Mapping to Develop an Efficacious Multicomponent Systems-Based Intervention to Increase Human Papillomavirus (HPV) Vaccination in a Large Urban Pediatric Clinic Network

Background: The CDC recommends HPV vaccine for all adolescents to prevent cervical, anal, oropharyngeal, vaginal, vulvar, and penile cancers, and genital warts. HPV vaccine rates currently fall short of national vaccination goals. Despite evidence-based strategies with demonstrated efficacy to increase HPV vaccination rates, adoption and implementation of these strategies within clinics is lacking. The Adolescent Vaccination Program (AVP) is a multicomponent systems-based intervention designed to implement five evidence-based strategies within primary care pediatric practices. The AVP has demonstrated efficacy in increasing HPV vaccine initiation and completion among adolescents 10-17 years of age. The purpose of this paper is to describe the application of Intervention Mapping (IM) toward the development, implementation, and formative evaluation of the clinic-based AVP prototype. Methods: Intervention Mapping (IM) guided the development of the Adolescent Vaccination Program (AVP). Deliverables comprised: a logic model of the problem (IM Step 1); matrices of behavior change objectives (IM Step 2); a program planning document comprising scope, sequence, theory-based methods, and practical strategies (IM Step 3); functional AVP component prototypes (IM Step 4); and plans for implementation (IM Step 5) and evaluation (IM Step 6). Results: The AVP consists of six evidence-based strategies implemented in a successful sequenced roll-out that (1) established immunization champions in each clinic, (2) disseminated provider assessment and feedback reports with data-informed vaccination goals, (3) provided continued medical and nursing education (with ethics credit) on HPV, HPV vaccination, message bundling, and responding to parent hesitancy, (4) electronic health record cues to providers on patient eligibility, and (5) patient reminders for HPV vaccine initiation and completion. Conclusions: IM provided a logical and systematic approach to developing and evaluating a multicomponent systems-based intervention to increase HPV vaccination rates among adolescents in pediatric clinics