Puneet Prakash

• Professor at Missouri State University

In statistics, samples are drawn from a population in a data‐generating process (DGP). Standard errors measure the uncertainty in estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence‐generating process (EGP). We claim that EGP variation across researchers adds uncertainty—nonstandard errors (NSEs)....

Purpose Ethereum-based blockchain technology (EBT) affords members of the Enterprise Ethereum Alliance (EEA) a market advantage in deploying blockchain within their organizations, including cybersecurity and operational benefits, that leads firms to strategically invest in this nascent technology. However, the impact of such strategic investments i...

Using disparate datasets, one on the quality of higher education institutions (HEIs) in India comprising 348 HEIs that were accredited over the years 2004–2008, and another on the investment potential of states based on four indicators, we fail to find a correlation between the investment potential of a state and the mean efficiency of its HEIs com...

The infrastructure sector is one of the major pillars for economic growth and development of a country. The responsibility to develop this crucial sector is shifting away from the public to the private sector. After the economic liberalization in 1991, India opened the infrastructure sector, among many others, to private domestic and foreign invest...

The cost of equity capital is a key input used by regulators to fix permissible rates of return and determine regulated tariffs. Investors also need an appropriate hurdle rate to make investment decisions. Regulators worldwide often use a single-factor model to estimate the cost of equity. The empirical literature shows that such a model has limite...

Purpose This paper aims to investigate the explanatory power of the Fama-French five-factor model and compares it to the other asset pricing models. In addition, the paper examines the contributions of two additional factors: profitability and investment factor. The authors test the alternative four-factor models. Design/methodology/approach The a...

In statistics, samples are drawn from a population in a data-generating process (DGP). Standard errors measure the uncertainty in sample estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence-generating process (EGP). We claim that EGP variation across researchers adds uncertainty: non-standard error...

In statistics, samples are drawn from a population in a data-generating process (DGP). Standard errors measure the uncertainty in sample estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence-generating process (EGP). We claim that EGP variation across researchers adds uncertainty: non-standard error...

In this paper, we extend the parametric approach of VaR estimation that is based upon the application of two transforms, one for handling skewness and other for kurtosis. These transformations restore normality to data when applied in succession. The transforms are well defined and offer an alternative to VaR models based on the variance–covariance...

Research in signaling theory has recently begun to explore the consequences of incongruity across signals from a single source. However, attention has been directed towards the incongruity across signals along a single dimension, even though audiences evaluate firms based on signals along different dimensions. Here, we extend this theory to investi...

Purpose This paper aims to undertake a thematic review of academic papers on financial technology (FinTech) to identify three broad categories for the purpose of classifying extant literature. The paper summarizes the research and findings in this emerging field. Thereafter, it identifies the gaps and provides directions for further research. Simul...

Purpose This paper aims to study differences in risk behavior between holding companies that undertake both banking activity and insurance underwriting (labeled financial holding companies or FHCs) and stand-alone bank holding companies (BHCs). Design/methodology/approach The paper examines the discretionary accruals of FHCs to comparable BHCs and...

This study builds and applies a framework that addresses the twin uncertainties of traffic flow and interest rates in build-operatetransfer (BOT) projects. Existing valuation methods address traffic flow estimations using linear models, which yield point estimates of traffic predictions regardless of traffic flow volatility. Additionally, consideri...

We examine how county-level governance affects the cost of raising equity. Using data on seasoned equity offerings, we find that the underwriting spread is determined by the litigation risk of issue certifiers, and offer underpricing is largely determined by the investment risk of the equity issue. Underwriting spread increases with enhanced legal...

We examine the effect of country-level factors on gross underwriting spreads in seasoned equity offerings. Controlling for issue, issuer and underwriter characteristics, we find that primary legal factors that impose direct court costs on underwriters significantly increase spreads. However, secondary legal, economic, and governance factors do not...

This study aims to find the multinationality and performance relationship for the largest Indian software companies. It further tests the moderating influence of internationalization motives (marketing- versus labor-seeking) and resources on this relationship. Results show an inverted U-shaped relationship between multinationality and performance f...

We compare non-issue specific (broad) investor protections against expropriation by firm’s insiders with regulations that specifically protect investors of new equity issues (issue-specific). Since in-nation regulations rarely change and are homogenous for all firms, it is difficult to compare issue- and non-issue-specific investor protection mecha...

We investigate how investor protection, government quality, and contract enforcement affect risk taking and performance of insurance companies from around the world. We find that better investor protection results in less risk taking, as do higher quality government and greater contract enforceability. However, we find only limited evidence that th...

In this paper, we draw upon the literature on certification intermediaries, and argue that rating standards (not ratings) are related to the economy-wide credit quality distribution, and as the distribution changes, so do the standards. Empirical tests verify this predicted relationship. In particular, with a rise in economy-wide dispersion of the...

In this paper, we draw upon the literature on certification intermediaries, and argue that rating standards (not ratings) are related to the economy-wide credit quality distribution, and as the distribution changes, so do the standards. Empirical tests verify this predicted relationship. In particular, with a rise in economy-wide dispersion of the...

This study examines the recent, significant growth in the appointments of Chief Risk Officers (CROs), the role of a CRO, and whether such appointments benefit shareholders. We find that the market is more likely to react positively to a CRO appointment for a firm with weak corporate governance. In particular, the lower the proportion of outside dir...

We examine corporate purchases of Directors and Officers (D&O) liability insurance and find that in addition to governance quality it contains managers’ private information. In particular, we find that insider control in excess of insider share holdings is jointly associated with lower D&O coverage limits and higher firm performance. The result hol...

In this paper, we examine why credit rating standards change over time. Drawing upon the literature on certification intermediaries, we argue that rating standards are related to the economy-wide credit quality distribution, and as the distribution changes, so do the standards. Empirical tests verify this predicted relationship. In particular, with...

This paper shows that for a sample of firms offering SEOs non dividend paying firms experienced larger valuation gains from the 2003 dividend tax cut as compared to dividend paying firms. Using a growth option valuation framework, our findings indicate that the growth option revaluation benefited the non dividend paying firms more. In particular, t...

In this paper, we find evidence of reversals in relative exit performance between the "short" and "long-run" in the VC market, with the short-run defined to be the first 5 years of business, and the long-run, the 6th year of business onwards. Using proxies for the risk of venture capital assets that are derived from VCs' risk management strategies-...

In this paper, we examine how IPOs backed by risk averse and risk seeking VCs are priced in public equity markets, and find that only IPOs backed by risk seeking VCs are associated with a market skewness premium. Given evidence that there exists a representative agent that invests in VC backed projects, we conclude that the market skewness premium...

We develop a model that links VCs' market reputation to the risk preferences of their primary customers, that is, institutional investors. Our model predicts VCs that focus on holding diversified portfolios whose returns are positively skewed (lower risk VCs) are, in the long-run, associated with superior market reputation relative to other classes...

Noise" in Ratings: Not Entirely Random We investigate the classification accuracy of credit ratings over time by benchmarking them against a market measure. The task is carried out in two stages. First a connection between objective probabilities of default with subjective ratings in a multivariate setting is established. We employ a market based s...

Abstract Acts of Terrorism across the world have some degree of commonality amongst them. They have involved violence against civilians, many a time with the objective of secession from the current central authority. This paper generalizes the idea of secession from a geopolitical region to a set of points in an economics framework that is structur...