School of Business Faculty and Student Research

The Manhattan College School of Business periodically publishes working papers that convey the findings of its ongoing research.

  • Faculty Research Working Paper Series: This includes faculty members’ manuscripts that have not been accepted for publication, or that have been submitted for journal publication but have not yet been accepted, or that have been presented or planned to be presented at a conference or seminar.
  • Student Research Working Paper Series: This includes manuscripts submitted by students in partial fulfillment of the requirements for independent study or other courses of the School of Business.

The views expressed in these papers are those of the authors and do not necessarily reflect the views of Manhattan College. Readers are welcome to offer feedback, comments, or criticism directly to the authors. For an abstract or full pdf version of the research, click on the appropriate section and title of interest.

Faculty Research Working Paper Series[+]

FRWP #1, Spring 2013
Title: Cross Sectional Return Predictability in Taiwan Stock Exchange: An Empirical Investigation
Authors: Nusret Cakici, Kudret Topyan, Chia-Jane Wang
Department: Economics & Finance
Abstract: The purpose of this paper is to provide a comprehensive analysis of the effectiveness of certain return predictors in Taiwan stock market. Within this context, the paper provides a comprehensive analysis on the stock return predictability in Taiwan Stock Exchange (TWSE) from January 1990 to December 2011 by employing both portfolio method and cross-sectional regressions. In the riskrelated predictors, we found no statistically significant predictive power of beta, total volatility, and idiosyncratic volatility. Our results indicate that two cheapness variables, book-to-market and cashflow-to-price ratios showed strong consistent economically and statistically significant predictive powers in determining the returns for the stocks traded in the TWSE. In addition, our multiple regressions found predictive power in total volatility, short-term reversal, and market capitalization in the set of smallstocks but not for the set of large stocks, while our allstock set showed predictive power only in total volatility and short-term reversal. We also found that regrouping the stocks as small and large according to the median value of the market capitalization of the stocks adds insights to the analysis. Our results show that the set of large stocks in the TWSE is the least predictable set of stocks.

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FRWP #2, Spring 2013
Title: Focus or Generalize: Real Estate Agent Effort Allocation and Compensation
Authors: Randy I. Anderson, Hany Guirguis, Geoffrey K. Turnbull
Department: Economics & Finance
Abstract: When agents have opportunities in both selling and non-selling related activities, the rising opportunity cost of time induces greater focus on the former, with contracted support to pursue unrelated real estate activities. This drives a positive relationship between specialization and income. Nonetheless, income may decline empirically with greater specialization when the population of most specialized agents includes those with either low opportunity costs or the least ability to earn ancillary income. Data drawn from a multi-year survey of real estate professionals indicate that income rises with greater specialization except for the most specialized. The latter result is consistent with the notion that mix of agents at the highest specialization levels enjoy different opportunity costs or ranges of income opportunities.

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FRWP #3, Fall 2013
Title: Characteristics of Firms Subject to Fraud Litigation
Authors: Alicja Reuben
Department: Management and Marketing
Abstract: Fraud is a fundamental issue that has been problematic for decades in the U.S. business sphere. The academic literature addresses fraud in terms of deviance, but fails to raise the question of whether corporate governance is tied to fraud in any way. In this paper, I attempt to disentangle the question, does corporate governance help firms subject to fraud litigation? Using the Governance Index and a unique set of class action law suit data, I use survival analysis to determine the correlation between fraud and corporate governance. Results indicate that bad governance is associated with cases of fraud. These findings have far reaching implications on both the establishment of governance standards as well as the study of fraudulent business activities.

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FRWP #4, Fall 2013
Title: The People’s Hired Guns? Experimentally Testing the Inclination of Prosecutors to Abuse the Vague Definition of Crimes
Authors: Christoph Engel and Alicja Reuben
Department: Management and Marketing
Abstract: Legal realists expect prosecutors to be selfish. If they get the defendant convicted, this helps them advance their careers. If the odds of winning on the main charge are low, prosecutors have a second option. They can exploit the ambiguity of legal doctrine and charge the defendant for vaguely defined crimes, like “conspiracy”. We model the situation as a signalling game and test it experimentally. If we have participants play the naked game, at least a minority plays the game theoretic equilibrium and use the vague rule if a signal indicates that the defendant is guilty. This becomes even slightly more frequent if a misbehaving defendant imposes harm on a third participant. By contrast if we frame the situation as a court case, almost all prosecutors take the signal at face value and knowingly run the risk of loosing in court if the signal was false. Our experimental prosecutors behave like textbook legal idealists, and follow the urge of duty. 


 


 

Student Research Paper Series[+]

 
Coming soon