Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2006. / Source: Dissertation Abstracts International, Volume: 67-11, Section: A, page: 4276. Adviser: Werner Baer. Includes bibliographical references (leaves 195-207) Available on microfilm from Pro Quest Information and Learning.

The dissertation, Mexican Banking Law: Evolution into NAFTA and the Global Economy makes an in depth analysis of the evolution of Mexican banking history and of its regulatory framework. It surveys Mexican economic and political history in order to divide the banking development into three major stages. It first surveys the creation of a banking sector (luring the Porfirio Diaz regime. Thereafter, it analyzes the impact of the Mexican Revolution and the rapid growth of banking during the Mexican Economic Miracle. The dissertation studies the impact of politics in changing the regulatory framework of banking during the nationalization crisis. It then follows the change in economic policy, particularly in trade policy, to analyze the effects of a more liberalized market. Banking and investment laws are studied and the continued reforms to these laws are analyzed. Lastly, the dissertation addresses the development that Mexico has had in the international arena and the impact of globalization in financial markets, specifically in banking. The dissertation identifies major regulatory changes in the banking sector and the impact of international trade agreements in encouraging such changes. It also addresses the Mexican Peso Crisis and the effects it had in banking supervision. Lastly, the latest modifications to banking regulation are addressed / acase@tulane.edu

The focus of this research is on management's communication of uncertainty (attested to by auditors) and the potential for miscommunication due to the communication mode used in accounting disclosures. The following two research questions are addressed: First, do users of financial statements differentiate between the three levels of uncertainty from SFAS No. 5 when either specific verbal expressions or corresponding numerical probability ranges are used? Second, are there decision or judgment differences when numerical probabilities replace verbal expressions in communicating these uncertainties? / The above two research questions are investigated using a between-subject 3 x 2 factorial design. The first independent variable is the level of uncertainty. It has three levels which correspond to the three levels defined in SFAS No. 5--remote, reasonable possible, and probable. The second independent variable is the mode of communication. It has two levels--verbal expression and numerical probability range. The dependent variable is the revised risk assessment, which is defined as the risk assessment made by the loan officers after they received the uncertainty information. The subjects for this study were commercial loan officers from a major regional bank. / The statistical analysis of variance was performed to test both research questions. The level of uncertainty and the mode of communication main effects were significant for the amount of risk revision as the dependent variable (the difference between the initial risk assessment and the revised risk assessment). / Source: Dissertation Abstracts International, Volume: 53-03, Section: A, page: 0872. / Major Professor: Rhoda C. Icerman. / Thesis (Ph.D.)--The Florida State University, 1992.

This dissertation examined variables hypothesized to affect the extent of consumer external information search for banking services. Perceived benefits of search, perceived risk of purchase decision, perceived cost of information search, and perceived knowledge of banking services were postulated to affect the extent of information search on banking services. / The relationship among the above-mentioned exogenous variables, and between the exogenous variables and the endogenous variable, extent of information search, were hypothesized within a proposed banking services model derived from a review of the research on the topic of external information search of mainly tangible goods. A questionnaire measuring the variables, as well as particular demographic information, was developed based on interviews with finance professors, bank officials, and a focus group study. The 661 usable questionnaires from a student convenience sample formed a data set which was analyzed for scale validity and reliability using exploratory factor analysis, and for fit of the proposed banking services structural model with the data collected. LISREL VII, using maximum likelihood estimation techniques, provided an estimate of the extent and significance of the relationships between the variables in the banking services model. Based on t-values, the fitted banking services structural equations model revealed that 5 of the 8 hypothesized relationships were significant at the.05 level, More specifically, the findings suggested that the extent of information search for banking services was influenced by perceived benefit, perceived cost, and perceived knowledge. The fitted model also revealed a significant positive relationship between perceived risk and perceived benefit, and a significant positive relationship between perceived knowledge and perceived benefit. / The results from this study show that information search for services are affected by the same variables and in the same direction as information search for goods. It is proposed that future research on information search for goods and services should concentrate on forming models based on the level of perceived risk, involvement, and importance of the product. / Source: Dissertation Abstracts International, Volume: 56-04, Section: A, page: 1443. / Major Professor: Ronald E. Goldsmith. / Thesis (Ph.D.)--The Florida State University, 1995.

This manuscript studies the impact of the term structure of interest rates on corporate optimal capital structure. First, I develop a dynamic model of capital structure in the presence of stochastic cash flows and stochastic interest rates. Using one-factor and two-factor Cox, Ingersoll, and Ross (1985b) interest rates dynamic, as well as a one-factor Feller cash flow process, the article solves for the value of the firm's contingent claims. After deriving closed-form solutions for the values of debt, tax benefits, bankruptcy costs and recapitalization costs, the paper numerically solves for the optimal total capital structure: leverage, debt service, maturity, call provisions and priority. I find that as the instantaneous rate rises, so does the leverage, maturity and periodic debt service. I also find that an increase in the level of long-term rate leads to a decrease in leverage, maturity and periodic debt service. In an attempt to understand the effect of macroeconomic conditions on corporate financing decisions, this manuscript then empirically investigates the effect of the term structure of interest rates--defined by a three-factor model which includes the Treasury bill yield, the Treasury bond yield, and the volatility of the yield curve--on the debt-equity choice. Having controlled for well-known microeconomic determinants of financing decisions, I document that as the Treasury bill yield rises, the incidence of debt financing increases. However, as the Treasury bond yield or the volatility of the yield curve rise, the incidence of debt financing drops. I find that the information content of the term structure of interest rates regarding aggregate corporate profitability (i.e. aggregate default risk) accounts for the stylized facts. I also find that tax shield distortions induced by changes of interest rates marginally affect the debt-equity choice. Additionally, inflation, corporate credit spreads, mortgage rates, and personal tax rates materially are shown to affect the firm's financing decisions materially.

The analysis of the Mexican economy is important because some of its developments have had international repercussions, and the lessons learned from Mexico may be applied in other developing countries. This dissertation comprises three essays related to the Mexican economy. The first two are connected to the Mexican banking industry, while the third essay analyzes the Mexican economy since WWII from an endogenous growth perspective. The first essay investigates the functional relationship between concentration and interest-rates in the Mexican commercial banking industry. A fundamental contribution of this essay is the use of parametric, nonparametric, and semiparametric procedures to determine the functional form of the concentration and interest-rate relationship. We check for regularities across products, and over time. The semiparametric estimation dominates the other methods. The resulting functional form seems to support the prediction of the structure-performance paradigm of a positive concentration-price relationship. In the second essay we use Cox (1972) proportional-hazards models with time-varying covariates in order to identify the characteristics that cause Mexican banks to disappear. We conclude form this study that the evolution of the Mexican banking system has been determined by the asset quality, the earnings, and the liquidity ratios (CAMEL-type financial ratios). Moreover, we use the estimated time-varying coefficients to analyze the effects of moral hazard form risk-taking induced by the Mexican government deposit insurance scheme, FOBAPROA. We find that FOBAPROA affected the coefficients exacerbating financial problems already present. Finally, in order to analyze the performance of the Mexican economy since WWII, the third essay employs a two-country endogenous growth model. An implication of this growth model is that because of technology transfer, the U.S. (R&D-performing country) and Mexico (implementation R&D country) converge to parallel growth paths, as long as some minimum conditions in terms of institutions and human capital are met. We find suggestive evidence that a lack of adequate institutions and human capital base are likely to contribute to the explanation of the poor performance of Mexico's GDP per capita after the reforms in the 1980s.

<p> The purpose of the quantitative descriptive correlation study was to understand whether leaders of financial institutions considered operational risks when making decisions. A 6-point Likert scale questionnaire surveyed 30 leaders from 30 publicly held Small, Midsize, and Large Size financial institutions headquartered in the United States. The collection of data included demographic constructs, leader position, and size of organization. Dependent variables in the study were strategic, tactical, and operational decision types, and the independent variables were people risk, process risk, technology risk, and external event risk. Using Microsoft XLSTAT, descriptive and inferential statistics were employed to analyze the data. Statistical analysis using Pearson product-moment correlation matrix indicated a positive correlation between operational risk elements when making strategic and operational decisions and a positive correlation between people-process, process-technology, process-external, and technology-external risks when making tactical decisions, resulting in acceptance of the alternate hypotheses and rejecting the null. The findings did not result in significant evidence to support the alternate hypothesis and reject the null hypothesis for relationships between people-technology and people-external when making tactical decisions, resulting in a do not reject the null for these operational risk elements. Findings from the study may assist financial industry leaders in understanding if financial institution leaders consider operational risk when making strategic, tactical, and operational decisions affording the opportunity to improve leader decision-making in the industry.</p>

<p> The research study involved an investigation into the relationship between corporate culture and organizational efficiency in the Japanese securities industry as it adapts to survive in the competitive international market. Using the materialist conception of history, a case study approach was used to examine the roots of Nikko&rsquo;s corporate culture as it developed prior to the introduction of the modern management system. Working in compliance with a licensing system that served to preserve the status quo, Nikko officials experienced industry scandals, which encouraged Japanese securities executives to introduce American modern management systems. The purpose of the mixed method study was to understand the qualitative and quantitative changes in the management operations of Nikko Cordial affected by the corporate culture before and after the change in management. Insights into Nikko&rsquo;s situation were gained from analyzing the records of Nikko Cordial with those of the Nomura and Daiwa securities companies.</p><p> Using a system of dialectics, organizational inefficiency and low profitability were discovered as triggers for the corporate scandals, despite the introduction of the modern management system. Based upon the analysis of Nikko&rsquo;s case, an inductive conclusion was drawn that organizational efficiency and profitability were considered important factors to sustain a successful business model in the financial business field. The inevitability of regulation as one of the five cost factors necessary to enhance profitability for financial businesses was confirmed by the dialectical approach. The corporate culture is a key catalyst to reduce the costs involved in organizational efficiency and integrity.</p>

<p> This exploratory case study used a qualitative research method and explored how Project Management Offices (PMOs) and associated governance groups, such as project management, program management, portfolio management, and risk management, play an important role and are viewed as a positive contributing factor in the successful management of projects. The study also explored the perceived reduction of operational risk that would help prevent the likelihood of financial market collapse reoccurrences, and the perceived importance and impact of operational management structures of financial institutions in contributing to the prevention of another banking collapse. The following themes emerged in the study: Operational risk, regulatory groups, characteristics of PMO structures, optimal PMO structures, PMO effectiveness, and maturity levels of PMOs. A postulation to integrate PMO structures and associated governance groups in the accords (frameworks) of the Basel Committee on Banking Supervision (BCBS) was proposed to help financial institutions reduce operational risks that affect consumers of financial services. A non-traditional survey-based case study was conducted with eight project management professionals with financial industry experience in the United States. The case study helped reveal that financial collapses were significantly related to the lack of PMO structures and integration of those structures into regulatory frameworks as mandates. This case study further found that to reduce the likelihood of another financial collapse, a change needs to be made to organizational structures by (a) implementing well-run PMOs and associated governance groups, and (b) integrating those structures into regulatory frameworks.</p>

<p> There is a general understanding in the financial and regulatory environment that virtual currencies pose a challenge for monitoring and combating money laundering. However, there is uncertainty of the exact threats that virtual currencies poses to the U.S. anti-money laundering regulations. The purpose of this study is to examine the evolution of virtual currencies, clarify the threats that virtual currencies pose to U.S. anti-money laundering regulations, and determine if it is possible for the U.S. Government to regulate and monitor the use of virtual currencies to deter economic crime. </p><p> The methods of research for this study include a literature review of scholarly articles, case studies, statistical analysis, and Internet research from reputable sources. The results of this study will show that the primary reasons virtual currencies pose a threat to U.S. anti-money laundering regulations is due to the anonymity and decentralization of its structure. Any recent attempts at regulating these transactions have been met by the development of third party software that aids criminal organizations in circumventing new regulations. Unless there is a unified effort from world governments to understand how the currencies operate, understand the threats that they create, and to implement new and unique regulations specific to virtual currencies, then virtual currencies will remain the preferred decentralized payment method of most criminal organizations. </p><p> Keywords: Economic Crime Management, Capstone Project, Professor Raymond Philo, Crypto-currency, Bitcoin.</p>