Template-Type: ReDIF-Article 1.0 Author-Name: Mthuli Ncube Author-Name: Kjell Hausken Title: EVIDENCE ON THE TROUBLED ASSETS RELIEF PROGRAM, BAILOUT SIZE, RETURNS AND TAIL RISK Abstract: The US government launched the Troubled Assets Relief Program (TARP) in mid-September 2008. This article analyzes the market response to the TARP launch. We reject the null hypothesis that the bailout size has no effect on the firm’s value. Banks receiving large bailouts endure significantly larger stock price declines than banks receiving small bailouts. The average buy-and-hold return from 2008 Q4 to 2009 Q1 is 42.68% for the 293 sampled banks. Bailout banks perform 5.8% worse than non-bailout banks. The banks’ losses increase significantly from the pre-TARP period to TARP initiation period, suggesting greater tail risk from 2008 Q4 to 2009 Q1. Bailout banks contribute much more to the overall systematic risk than nonbailout banks. TARP helped restore investors’ confidence, and closed December 19, 2014 with $15.3 billion profit. Finally some causal effects of bank bailouts are considered. Classification-JEL: G18, G21, G28 Keywords: TARP Bailout, Abnormal Returns, Tail Risk, Financial Crisis, Counterfactual Journal: The International Journal of Business and Finance Research Pages: 1-20 Volume: 13 Issue: 2 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n2-2019/IJBFR-V13N2-2019-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:2:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: B. Paul Choi Title: ADVERTISING, MARKET CONCENTRATION, AND FIRM PERFORMANCE ON THE DISTRIBUTION SYSTEM Abstract: This paper examines the impact of advertising on the firm performance as measured two profit variables and market structure as measured by market concentrations and the relationship is analyzed by two different distribution systems: independent agency writers vs. direct writers. The empirical testing results show that a positive and non-significant relationship between concentration and advertising for both distribution systems, while a negative and significant relation between market share and advertising is found. These results are consistent with the two distribution systems. This paper, however, finds differences between the two distribution systems in the profit model. A negative and significant relationship is found between advertising and profits for independent agency writers, while there exists no significant relationship for direct writers. So, in this highly competitive market, advertising does not boost profit for independent agency writers Classification-JEL: G14, G22, L11, L16 Keywords: Advertising, Market Structure, Firm Performance, Insurance Distribution System Journal: The International Journal of Business and Finance Research Pages: 21-31 Volume: 13 Issue: 2 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n2-2019/IJBFR-V13N2-2019-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:2:p:21-31 Template-Type: ReDIF-Article 1.0 Author-Name: Sekhar M. Amba Author-Name: Binh H. Nguyen Title: EXCHANGE RATE AND EQUITY PRICE RELATIONSHIP: EMPIRICAL EVIDENCE FROM MEXICAN AND CANADIAN MARKETS Abstract: This paper examines the relationship between stock prices and exchange rates in Mexican and Canadian Markets using weekly data from Jan 2013 to December 2018. Cointegration, Vector Error Correction model, Vector Auto Regression model and Granger causality tests are used to examine the long-term relationship and casual relationship between exchange rates and stock prices. Johansen cointegration tests confirm the insignificant existence of long-run relationships between stock prices and exchange rates in Canadian and Mexican markets. However, the Granger causality test confirms the existence of short-run unidirectional causal relationship from exchange rates to stock prices in the Mexican market Classification-JEL: G150 Keywords: Exchange Rates, Stock Prices, Cointegration, Canada, Mexico Journal: The International Journal of Business and Finance Research Pages: 33-43 Volume: 13 Issue: 2 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n2-2019/IJBFR-V13N2-2019-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:2:p:33-43 Template-Type: ReDIF-Article 1.0 Author-Name: Michael G. Marsh Author-Name: Marc Muchnick Title: ASSET PRICING MODEL ESTIMATION ERRORS DURING RATIONAL AND IRRATIONAL INVESTOR BEHAVIOR PERIODS Abstract: This paper examines the prediction that human behavior changes the outcome of market predictability, indicated by a difference in asset pricing model estimated prediction error, calculated using the Sharpe ratio, Jensen’s alpha, and the Treynor measure for publicly traded firms in the consumer discretionary and consumer staples sectors. Applying a series of independent t-tests to mean comparisons of these measures ultimately provided mixed results, demonstrating a statistically significant difference only with Jensen’s alpha and the Sharpe ratio in both sectors. This indicates a need for extra caution for asset pricing model use under potentially irrational periods Classification-JEL: G12, G41 Keywords: Asset Pricing, Behavioral Finance, Irrationality, Beta Journal: The International Journal of Business and Finance Research Pages: 45-69 Volume: 13 Issue: 2 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n2-2019/IJBFR-V13N2-2019-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:2:p:45-69 Template-Type: ReDIF-Article 1.0 Author-Name: Sandip Mukherji Title: EMPIRICAL EVIDENCE ON BITCOIN RETURNS AND PORTFOLIO VALUE Abstract: This paper studies 60 months of recent returns to examine relationships between bitcoin and 16 exchange- traded funds of currencies, bonds, stocks, commodities, and alternative assets. Bitcoin provides much higher returns, positive skewness, volatility and extreme returns, than all the other assets. Only stocks offer a better risk-return tradeoff than bitcoin. Bitcoin returns have very weak positive correlations with stocks, commodities, and alternatives. Only two funds of stocks and commodities have significant explanatory power of about 3% each for bitcoin returns. The full model of all the 16 funds explains only 15.09% of bitcoin returns. A partial model, with the six funds that are significant in the full model, explains 12.78% of bitcoin returns; 3 stock funds and 1 commodity fund have significant coefficients in this model. These findings indicate that bitcoin is a unique asset which is only weakly related to stocks and commodities. The results also show that small allocations to bitcoin improve the risk-return tradeoffs of stock and bond portfolios. Classification-JEL: G11, G12 Keywords: Cryptocurrencies, Bitcoin, Return Distributions, Explanatory Factors, Optimal Portfolios Journal: The International Journal of Business and Finance Research Pages: 71-81 Volume: 13 Issue: 2 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n2-2019/IJBFR-V13N2-2019-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:2:p:71-81 Template-Type: ReDIF-Article 1.0 Author-Name: Johannes M. Gerlach Author-Name: Julia K. T. Lutz Title: EVIDENCE ON USAGE BEHAVIOR AND FUTURE ADOPTION INTENTION OF FINTECHS AND DIGITAL FINANCE SOLUTIONS Abstract: Financial Technology Companies are gaining popularity and becoming more relevant within financial services industries worldwide. This growth can be encouraged by the EY FinTech Adoption Index, which indicates a global average FinTech Adoption of 33.0% in 2017. With regard to Financial Technology Companies and Digital Finance Solutions, this figure emphasizes the importance of this study’s objective to identify potential determinants of current use behavior and future usage intention. To both theoretically and empirically address this research question, we conducted a questionnaire-based survey with 381 participants from three German universities. Because our study bases on both the theory of reasoned action and the unified theory of acceptance and usage of technology 2, we contribute not only to the general understanding of Financial Technology Companies and Digital Finance Solutions but also to the existing literature on behavioral intention and technology acceptance. Thus, we contribute to several strands of literature. However, based on this study’s results, we defined certain fields of interest and derived corresponding strategic and managerial implications from the viewpoint of traditional financial institutions. Moreover, we contribute to the practical solution of the current challenges faced by traditional financial services providers. Finally, based on our analyses, we identify future research opportunities regarding these important issues. Classification-JEL: G10, G20, G21, G22, G23, G24, M13, M31, O33 Keywords: Fintech, Digital Finance Solutions, Technology Adoption, Current Use Behavior, Future Usage Intention, Behavioral Intention, Consumer Behavior, Theory of Reasoned Action (TRA), Unified Theory of Acceptance and Usage of Technology 2 (UTAUT2) Journal: The International Journal of Business and Finance Research Pages: 83-105 Volume: 13 Issue: 2 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n2-2019/IJBFR-V13N2-2019-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:2:p:83-105