The purpose of this study is to estimate the profits to JPMorgan Chase from the Madoff Ponzi scheme’s checking account deposits at the bank based on the data in Harbeck (2011)…
Abstract
Purpose
The purpose of this study is to estimate the profits to JPMorgan Chase from the Madoff Ponzi scheme’s checking account deposits at the bank based on the data in Harbeck (2011). The Madoff Ponzi scheme was sitting on a cash hoard in excess of a US$1bn by the 1990s. Most of that money came into and stayed in the 703 account at JPMorgan Chase or it was transferred to one of the 11 other bank accounts. The author uses previously unanalyzed data from the Security Investor Protection Corporation (SIPC) to estimate JPMorgan Chase’s earnings from the accounts.
Design/methodology/approach
The author estimates the checking account balances of the Madoff Ponzi scheme with JPMorgan Chase and its ancestor corporation, Chemical Bank. He estimates the earnings from those large checking accounts and reinvests them in the stock price from 1986 to 2011. He uses data on the Madoff checking accounts released by Harbeck (2011) to estimate that JPMorgan Chase earned over US$900m from those large and suspicious checking deposits.
Findings
The US$907m in estimated profits from the Madoff Ponzi scheme bank accounts are much smaller than the US$2.6bn fine that JPMorgan Chase paid in 2014 to limit its liability for its dealings with Bernard L. Madoff. Any failure of anti-money laundering compliance in this case was very costly for the bank.
Originality/value
This is only study to analyze the Harbeck (2011) data to estimate JPMorgan Chase’s profits from the Madoff Ponzi scheme’s checking deposits. As JPMorgan Chase paid a US$2.6bn fine in this matter, it is relevant to look at how big the fine was relative to the profits the corporation may have earned from doing business with Bernie Madoff.
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This study aims to analyze whether average video watch time or click-through rates (CTR) on YouTube videos are more closely associated with high numbers of views per subscriber…
Abstract
Purpose
This study aims to analyze whether average video watch time or click-through rates (CTR) on YouTube videos are more closely associated with high numbers of views per subscriber using linear regressions.
Design/methodology/approach
In 2018, YouTube began releasing CTR data to its video creators. Since 2012, YouTube has emphasized how it favors watch time over clicks in its recommendations to viewers. To the best of the author’s knowledge, this is the first academic study looking at that CTR data to test what matters more for views on YouTube. Is watch time or CTR more important to getting views on YouTube?
Findings
The author analyzed new video releases on YouTube. This paper finds almost no or limited evidence that higher percent audience retention or total average watch time per view, respectively, are associated with more views on YouTube. Instead, videos with higher CTR got significantly more views.
Originality/value
The author knows no other study that tests the relative importance of CTR or watch time per view in predicting views for new videos on YouTube.
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The purpose of this paper is to determine if the US Treasury's at‐the‐market sales of 5.27 billion Citigroup shares in 2010 drove down the banks' share price. It attempts to use…
Abstract
Purpose
The purpose of this paper is to determine if the US Treasury's at‐the‐market sales of 5.27 billion Citigroup shares in 2010 drove down the banks' share price. It attempts to use the evidence of Citigroup's stock returns to accept or reject competing hypotheses of larger stock sales.
Design/methodology/approach
The paper uses a geometric Brownian motion model to test if there were abnormal returns at various points in the US Treasury's highly publicized stock sale that lasted from 26 April to 6 December 2010.
Findings
There was a weakly significant drop in the stock price at the announcement of the sale and a weakly significant rise in the stock price just after it ended. This is evidence that the demand curve for the stock had a negative slope.
Practical implications
The evidence from this study will influence policy makers and investors in the upcoming privatizations of large bailed‐out firms such as American International Group, Ally Financial, Chrysler, and General Motors. The evidence indicates that slow at‐the‐market sales may temporarily depress stock prices more than quicker, underwritten secondary offerings. Patient investors may experience modest abnormal returns from providing liquidity to the US Treasury as it privatizes its holdings.
Originality/value
This is the only paper to study the stock price impacts of the US Treasury's liquidation of its 27 percent stake in Citigroup in 2010. Because the stock sales were delegated to a third party and highly publicized, unlike most other large stock sales, the Citigroup privatization is an unprecedented opportunity to test if the demand curve for common stocks is perfectly elastic.
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This paper aims to derive insights about optimal managerial compensation and firm capital structure in unionized firms.
Abstract
Purpose
This paper aims to derive insights about optimal managerial compensation and firm capital structure in unionized firms.
Design/methodology/approach
This paper uses applied game theory to address problems of CEO motivation in companies with unionized workforces.
Findings
Managers can use high levels of debt and costly bankruptcy to win wage concessions from workers. Alternatively, workers can obstruct management in the detection of poor work. CEO compensation that encourages rent sharing may reduce union hostility and associated deadweight losses. Shareholder value may be maximized by CEO incentive contracts with limited upsides, lower levels of pay, and some entrenchment protections.
Originality/value
This is the only study to use applied game theory to look at how CEO pay and capital structure affects the productivity of a unionized workforce.
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– The purpose of this paper is to solve the optimal managerial compensation problem when shareholders are either naïvely optimistic or rational.
Abstract
Purpose
The purpose of this paper is to solve the optimal managerial compensation problem when shareholders are either naïvely optimistic or rational.
Design/methodology/approach
The paper uses applied game theory to derive the optimal CEO compensation package with over optimistic shareholders.
Findings
The results suggest that boards of directors should decrease option grants to CEOs when equity is likely to be irrationally overvalued at the date when the CEO's options vest.
Research limitations/implications
The implications of the model are consistent with the available empirical evidence. In addition, the model generates new testable predictions about managerial stock price manipulation, the number of options granted, and the magnitude of the options’ strike prices that have not yet been formally tested.
Originality/value
This is the only paper to derive closed-form solutions to optimal CEO compensation when shareholders are naïvely optimistic.
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Briefly reviews previous literature by the author before presenting an original 12 step system integration protocol designed to ensure the success of companies or countries in…
Abstract
Briefly reviews previous literature by the author before presenting an original 12 step system integration protocol designed to ensure the success of companies or countries in their efforts to develop and market new products. Looks at the issues from different strategic levels such as corporate, international, military and economic. Presents 31 case studies, including the success of Japan in microchips to the failure of Xerox to sell its invention of the Alto personal computer 3 years before Apple: from the success in DNA and Superconductor research to the success of Sunbeam in inventing and marketing food processors: and from the daring invention and production of atomic energy for survival to the successes of sewing machine inventor Howe in co‐operating on patents to compete in markets. Includes 306 questions and answers in order to qualify concepts introduced.
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The study aims to explore, via empirical evidence, executive assessment of Master of Business Administration (MBA) graduates in Nigerian companies.
Abstract
Purpose
The study aims to explore, via empirical evidence, executive assessment of Master of Business Administration (MBA) graduates in Nigerian companies.
Design/methodology/approach
The research utilized a descriptive research design with structured questionnaire developed from relevant extant literature. Relevant data analysis, including determination of the psychometric properties of the research instrument, was undertaken via the Statistical Package for the Social Sciences (SPSS) software.
Findings
The research results indicate that MBA graduates in the surveyed Nigerian organizations exhibited desired managerial tendencies only at an average extent.
Research limitations/implications
The limitations associated with the research include the use of convenience sampling approach, limited sample size and combination of respondents from different industrial sectors.
Practical implications
The research has practical implications for organizational executives associated with management development programmes via MBA, in addition to university administrators with regard to content, format, curricula and process for MBA education programmes.
Originality/value
The research is original and has practical and theoretical values.
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Sayo O. Fakayode, Jennifer Jennings Davis, Linus Yu, Paulette Ann Meikle, Ron Darbeau and Georgia Hale
Strengthening the nation’s technological workforce, competing and expanding its relevance in the global economy, and maintaining personal as well as homeland security will be…
Abstract
Strengthening the nation’s technological workforce, competing and expanding its relevance in the global economy, and maintaining personal as well as homeland security will be highly dependent on the quantity, quality, and diversity of the next generations of scientists, engineers, technologists, and mathematicians. Production of a diverse generation of human resources with relevant, competitive skills is critical. However, so too is the need to raise an enlightened citizenry with cross-cultural experience and cultural awareness competency, with a broad worldview and global perspectives. These requirements are critical to understanding the challenges and opportunities of scholarly activity in a pluralistic global environment and positioning ourselves to capitalize upon them. Scholars with cross-cultural experience and competency are empowered to adapt and work collaboratively, nationally and globally, with scholars of different races, geopolitical, socioeconomic, and cultural backgrounds. Development of effective strategies to transform science, technology, engineering, and mathematics (STEM) departments for inclusion and to broaden the participation in STEM across cultures, socioeconomic standing, race, and gender in higher education has been a dominant topic of pedagogical interest of national priority in the last several decades. However, success in these endeavors is achievable only through systemic change and a cultural shift to address the underlying root causes of socioeconomic disparity, gender, and racial disparities and a paucity of cultural awareness among all educational stakeholders. STEM departments can only be truly transformed for inclusion through the development of sensitive, creative, and student-engaging curricula and targeted recruitment and retention of underrepresented minorities in STEM. Formation of well-coordinated alliances spanning educational sectors, governmental and non-governmental organizations, and community engagement and outreach are also critical to promoting inclusive and broad participation in STEM education.
The first section of the chapter gives an introduction to various challenges, obstacles, and hindrances that prevent a successful transformation of K–12 science education as well as STEM departments in higher education for inclusion. The second section discusses historical perspectives of the University of Arkansas-Fort Smith (UAFS) – the institutional profile, missions, and visions of UAFS as a regional university. Policies and strategies for addressing the socioeconomic disparity, faculty gender, and racial disparities and cultural competency awareness at UAFS are also highlighted in this section. Other approaches including targeted efforts to recruit and retain underrepresented minority students, provision of financial assistance for students from low-income families, and a creative “Math-up” curriculum innovation to promote inclusive and broad participation in STEM at UAFS are highlighted in the latter section of the chapter. Formation of alliances between UAFS, local K–12 school districts, and governmental and non-governmental agencies to promote broad participation in STEM at UAFS are discussed. The last section of the chapter provides recommendations for adaptation and sustainability of strategies and efforts aimed at transforming national STEM departments for inclusion.