The James Fund at Rensselaer Polytechnic Institute’s Lally School of Management is a small, recently established, course-driven student-managed investment fund (SMIF). The purpose…
Abstract
Purpose
The James Fund at Rensselaer Polytechnic Institute’s Lally School of Management is a small, recently established, course-driven student-managed investment fund (SMIF). The purpose of this paper is to provide insight to new and existing funds in improving individual fund operation and structure.
Design/methodology/approach
The James Fund seeks to outperform an 80/20 equity/fixed income benchmark by investing exclusively in exchange traded funds and to move primary emphasis away from idiosyncratic risk and individual equity valuation back toward asset allocation, the most significant driver of portfolio performance. Buy and sell decisions must receive a three-fifths majority in voting among students and adhere with the investment policy statement.
Findings
Groupthink, a common problem in student-managed funds, is observed in trade proposal and manager voting patterns.
Originality/value
Groupthink is partially addressed through the use of instructor feedback on individual student trade diaries. Student managers transition each semester; therefore, the portfolio must meet dormant period criteria limited to a specific list of broadly diversified ETFs, mitigating potential problems from knowledge transfer between management teams that are largely unexamined in the context of SMIFs.
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Silu Cheng and Wenyao Hu
This study explores how auditors' emotions, specifically negative moods triggered by flight delays, impact auditing quality.
Abstract
Purpose
This study explores how auditors' emotions, specifically negative moods triggered by flight delays, impact auditing quality.
Design/methodology/approach
Utilizing flight delays during audit assignments as a mood indicator, weather conditions at departure airports serve as an instrumental variable to provide a robustness check between flight delays and audit outcomes, employing a two-stage least squares model.
Findings
The findings suggest that such negative moods improve auditing effort and quality, as evidenced by reduced future accounting restatements and increased audit fees. The positive effect of flight delays on auditing quality is consistent across different tests and measures.
Originality/value
This study highlights the significance of auditors' emotional states on their professional performance, indicating a unique angle on auditing quality research by focusing on the emotional well-being of auditors as influenced by external factors such as flight delays.
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Paolo Fiorillo and Luigi Raffaele Pellegrino
This paper aims to systematically review, discuss and synthesize the current state of research in the realm of hedge fund activism (HFA). By exploring HFA-related literature…
Abstract
Purpose
This paper aims to systematically review, discuss and synthesize the current state of research in the realm of hedge fund activism (HFA). By exploring HFA-related literature through a transparent and rigorous method, this study identifies unexplored areas for future research to develop a comprehensive understanding of the subject.
Design/methodology/approach
The authors perform a systematic database survey procedure as recommended in the prior literature. The review includes 74 articles published in high-impact journals from 2008 to January 2024, sourced from the Web of Science and Scopus databases and filtered using several exclusion/inclusion criteria.
Findings
This review offers a detailed analysis of the selected papers, highlighting trends in HFA research, the most influential journals and authors and additional insights into current studies. By systematically presenting the state-of-the-art, this paper categorizes the current research into three main streams and provides a critical evaluation of existing knowledge, identifying gaps and potential directions for future research.
Originality/value
This study makes two significant contributions to the literature. First, this study systematically reviews HFA-related research and provides a comprehensive examination of our existing scientific understanding of the factors shaping activism and its implications. Especially, this paper adopts a rigorous methodological protocol to ensure transparency and replicability in the review process, while earlier reviews focus on specific areas and are primarily narrative. Second, this study identifies research gaps and questions across all three streams of literature, offering valuable insights for future scholars aiming to expand our knowledge of the dynamic and evolving nature of HFA.
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Kobana Abukari, Erin Oldford and Neal Willcott
In recent years, student-managed investment funds (SMIFs), experiential learning programs at an increasing number of universities, have attracted significant scholarly interest…
Abstract
Purpose
In recent years, student-managed investment funds (SMIFs), experiential learning programs at an increasing number of universities, have attracted significant scholarly interest. In this article, we review the academic literature on this pedagogy.
Design/methodology/approach
We use the systematic review method to assess a sample of 85 articles published in 30 journals during the period 1975 to 2020.
Findings
Our literature review reveals four streams of research: best practices and challenges, investment management, innovation and trends and SMIFs in a research setting. We also propose future research directions, including specific gaps in the literature, a focus on innovations to traditional programs, systematic investment performance and expansion into behavioral finance issues.
Originality/value
We contribute a comprehensive view of the body of scholarship on SMIFs, identifying existing streams of research and future research directions that will help guide the development of SMIF research into a cohesive and productive space.
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Mayank Joshipura, Sachin Mathur and Hema Gwalani
Since 2018, there has been a resurgence in initial public offering (IPO) pricing studies. The authors aim to consolidate the knowledge and explore current dynamics, understand…
Abstract
Purpose
Since 2018, there has been a resurgence in initial public offering (IPO) pricing studies. The authors aim to consolidate the knowledge and explore current dynamics, understand knowledge progression, elicit trends, and provide future research directions for IPO pricing research.
Design/methodology/approach
The authors conducted a two-stage hybrid review based on 512 high-quality Scopus articles on IPO pricing published over the last decade. The authors deploy bibliometric analysis, and then, based on 61 curated articles, the authors conduct content analysis and offer future research directions.
Findings
Four key research streams emerged: information asymmetry, agency problems, legal, regulatory, and social environment, and behavioral finance. Future research may focus on behavioral explanations for IPO underpricing, the role of investor sentiment in IPO pricing, text analytics, machine learning, and big data in alleviating information asymmetry and agency problems. The authors summarize and present content analysis using the classic Theory, Context, Characteristics, Methods (TCCM) framework.
Research limitations/implications
Using different databases, bibliometric analysis tools, sample period or article screening criteria for the study might give different results. However, the study's major findings are robust to alternative choices.
Practical implications
This study serves as a ready reckoner for the research scholars, practitioners, regulators, policymakers, and investors interested in understanding the nuances of IPO pricing.
Originality/value
The study sheds light on the most influential documents, authors, and journals, offers an understanding of knowledge structure, identifies and discusses primary research streams and related implications, and provides future research directions.