Three essays in finance

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dc.contributorMcLeod, Robert W.
dc.contributorMobbs, Houston Shawn
dc.contributorTaylor, Gary
dc.contributorLee, Junsoo
dc.contributor.advisorCook, Douglas O.
dc.contributor.authorSikes, Candy
dc.contributor.otherUniversity of Alabama Tuscaloosa
dc.date.accessioned2017-03-01T17:10:03Z
dc.date.available2017-03-01T17:10:03Z
dc.date.issued2014
dc.descriptionElectronic Thesis or Dissertationen_US
dc.description.abstractIn essay one, <italic>The Impact of Information Asymmetry on Stock Split Announcement Returns</italic>, using research and development expenses as a proxy for information asymmetry, we examine the impact of information asymmetry on stock split announcement returns to provide support for the signaling theory. We find no significant difference between the announcement returns of firms with research and development expenses and those firms without research and development expenses. If the signaling theory holds, there should be a difference in these announcement returns due to the different levels of information asymmetry. As a result, the signaling theory is not supported in the context of stock splits. In the second essay, <italic>Do Mutual Fund Closures Cause the Decline in Fund Performance after Closing?</italic>, we find that closing a mutual fund is not effective at protecting fund performance but it is also not the cause of the decline in fund performance. We find that closed mutual funds do not display a consistent return pattern between the period before and after a fund closing indicating that fund closures do not have a common motivation or result. We also find that a matched group of non-closed mutual funds exhibit a return pattern that is similar to the one observed in closed mutual funds. As a result, closing a fund does not cause the decline in fund performance that is typically observed when a mutual fund closes. In the third essay, <italic>Hedge Fund Performance Before and After Fund Closure</italic>, we find that even in the place of a compensation contract that is different from the compensation contract of mutual funds, hedge funds that close exhibit a significant decline in fund performance after closing to new investors. Similar to mutual funds that close, the closure of a hedge fund is ineffective at protecting performance but it also not the cause of the decline in fund performance. Closed hedge funds do not display a consistent return pattern between the period before and after a fund closure indicating that fund closures do not have a common motivation or result. Analysis of a matched group of non-closed hedge funds shows that these non-closed funds exhibit similar growth and return patterns around fund closure again indicating that the closure of a hedge fund does not cause the resulting performance decline.en_US
dc.format.extent137 p.
dc.format.mediumelectronic
dc.format.mimetypeapplication/pdf
dc.identifier.otheru0015_0000001_0001662
dc.identifier.otherSikes_alatus_0004D_12057
dc.identifier.urihttps://ir.ua.edu/handle/123456789/2113
dc.languageEnglish
dc.language.isoen_US
dc.publisherUniversity of Alabama Libraries
dc.relation.hasversionborn digital
dc.relation.ispartofThe University of Alabama Electronic Theses and Dissertations
dc.relation.ispartofThe University of Alabama Libraries Digital Collections
dc.rightsAll rights reserved by the author unless otherwise indicated.en_US
dc.subjectBusiness
dc.subjectFinance
dc.titleThree essays in financeen_US
dc.typethesis
dc.typetext
etdms.degree.departmentUniversity of Alabama. Department of Economics, Finance, and Legal Studies
etdms.degree.disciplineFinance
etdms.degree.grantorThe University of Alabama
etdms.degree.leveldoctoral
etdms.degree.namePh.D.
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