In this paper, using our actual experience as finance faculty, we go over the steps to build and ... more In this paper, using our actual experience as finance faculty, we go over the steps to build and run an Investment Lab at University. First, we explain how the curriculum may be changed in order to accommodate this experiential learning opportunity in a finance undergraduate program. We explain how a new course oriented towards portfolio management may be created. Next, we describe how the student body may benefit from this initiative. Why is an Investment Lab needed at a university? What are the disadvantages of not having an Investment Lab (i.e. losing market share to competition, not bridging between theory and practice, and so on)? What is the solution to these problems? We explain that the solution possibly requires a new “Applied Portfolio Management Concentration/Minor”. As an example, we show what courses may be included under this new minor. Then, we go over the operational plan, including the business plan. We propose the establishment of a four-course minor, the lab, and ...
In this paper, using our actual experience as finance faculty, we go over the steps to build and ... more In this paper, using our actual experience as finance faculty, we go over the steps to build and run an Investment Lab at University. First, we explain how the curriculum may be changed in order to accommodate this experiential learning opportunity in a finance undergraduate program. We explain how a new course oriented towards portfolio management may be created. Next, we describe how the student body may benefit from this initiative. Why is an Investment Lab needed at a university? What are the disadvantages of not having an Investment Lab (i.e. losing market share to competition, not bridging between theory and practice, and so on)? What is the solution to these problems? We explain that the solution possibly requires a new "Applied Portfolio Management Concentration/Minor". As an example, we show what courses may be included under this new minor. Then, we go over the operational plan, including the business plan. We propose the establishment of a four-course minor, the lab, and a student managed fund. We explain how the whole operation will be financed. Then, we present the timeline and explain what needs to be done throughout the whole process. Finally, we go over the costs in detail. We believe that this paper will help other universities that would like to start an Investment Lab.
Considering the paradox of drinking what you drive and driving what you drink, Coors Brewing Comp... more Considering the paradox of drinking what you drive and driving what you drink, Coors Brewing Company’s conversion of spilt beer into ethanol is interesting and timely because of today’s intensified need for alternate fuels. The decision of investment in a sustainable project was present in 1996 as well as today. It is evident that Coors considered sustainability before it became popular. Their ethanol project allows an examination of several business issues that pertain to finance, accounting, operations management and environmental management students. This case has provided students sufficient information to practice the whole capital budgeting process which includes identifying and forecasting cash flows, applying capital budgeting tools and performing sensitivity and scenario analysis. Finance students will focus on cash flows and the capital budgeting aspect of the case. The potential reduction of waste disposal cost and generation of revenues from ethanol production will also ...
International Journal of Academic Research in Business and Social Sciences, 2015
Sustainability efforts encompass economic, social and environmental management. After decades of ... more Sustainability efforts encompass economic, social and environmental management. After decades of promoting such causes, sustainability finally has moved up to the boardroom agenda per PricewaterhouseCooper 2012 report. As companies incorporate sustainability into business strategy, it is crucial for accountants and financial managers to capture the financial implications of those sustainable practices. This case provides an in-depth review of current reporting and measurement of sustainable practices and outlines properties of a sustainable model. Students will analyze reasons for corporations to provide sustainability reports and examine limitations of current sustainability reporting practices. Students are advised to consider what enhancement in current reporting could increase the economic value of reporting efforts and evaluate the relative contribution of sustainable practices that improve firm performance. This case illustrates development of corporate sustainability reporting, the importance of collecting relevant data, analyzing operational data, reporting in accounting and financial terms, incorporating sustainability when making strategic business decisions.
China’s economy has been growing rapidly since the late 1970s and is expected to maintain this mo... more China’s economy has been growing rapidly since the late 1970s and is expected to maintain this momentum in the foreseeable future. Coupled with the biggest population in the world, there is tremendous growth potential for China’s capital markets and financial services industry, both vital to the continued development of the economy. The contributors present research on all facets of China’s markets including: stock and bond markets; futures and over-the-counter markets; regulatory issues; and the development and roles of financial institutions such as brokerage firms, banks and insurance companies. Also addressed are the recent performance of equity markets, the emergence of small and medium enterprises, and the state banks’ bids to be listed in overseas stock exchanges. Taken together, the book sheds a welcome light on China’s overall economic growth.
International Journal of Academic Research in Economics and Management Sciences, 2016
In this study, we examine U.S. companies' activities in foreign telecommunication auctions and an... more In this study, we examine U.S. companies' activities in foreign telecommunication auctions and analyze the reactions of host countries to these outside bidders. We identify the possible concerns of the host countries. There are two sets of concerns that could drive the behavior of foreign countries: concerns for anti-front-runner/late-comers or concerns for public welfare. The anti-front-runner/late-comers' concerns stem from either host country's fear of the loss of international competitiveness/future economic growth or its fear of the potential loss of revenues. The public welfare concerns stem from an anti-auction sentiment, an antimonopolistic sentiment, or an anti-foreign and anti-Americanism sentiment within the host country.
The objective of this study is to assess the effect of a U.S. auction on the economic risks of pr... more The objective of this study is to assess the effect of a U.S. auction on the economic risks of providing satellite services that cross national borders. The differences between satellite communications services and terrestrial communications could induce significant distortions because satellite licensing involves a time-consuming parade of licensing decisions, conflicting cultural norms, and differing technical and economic characteristics of geographically segmented markets. In the proposed sequential game framework, governments and potential licensees play against one another to find the best strategy. We assess the costs in terms of the political and regulatory receptiveness of a U.S. company in other countries and correlate the reaction in those countries with the degree of market attractiveness in those countries. We argue that the reaction to foreign (and especially U.S.) companies applications for operating licenses will differ across the three country types. The reactions c...
Assessment of learning has become a major issue in education in recent years. Secondary education... more Assessment of learning has become a major issue in education in recent years. Secondary education has already been confronted with demonstrating learning outcomes. This is predominantly done through standardized tests in multiple-choice format. Higher education has not been confronted with demands for standardized testing, and assessment of learning takes place as part of accreditation and in voluntary alliances. Developing proper assessment methods presents an opportunity to pre-empt regulatory mandates. The current research describes the development of a new methodology to demonstrate student performance in higher education. Results for the first semester application in an Information Systems Design class are presented.
The main purpose of this study is to review practical experience and provide guidance on the use ... more The main purpose of this study is to review practical experience and provide guidance on the use of StockTrak software (trading virtual assets of various types of investment assets) by students to make investment decisions under uncertainty. The article uses such scientific methods of analysis as analysis, synthesis, comparison, abstraction and modeling. The information base for the study is students enrolled in bachelor's degree programs in economics at Northeastern State University (USA). Based on the analysis of students' reports for the period 2014-2017, it is established that the most common mistakes in the study of socioeconomic processes include the neglect of transaction costs and the non-accounting of dividends in the calculations. For the most part, students have difficulty calculating financial ratios correctly because they are not sufficiently familiar with the procedure for acquiring investment assets using margin, and are unable to determine the initial amount ...
This paper summarizes the arguments and counterarguments within the scientific discussion on the ... more This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of mutual funds’ composition across the business cycle. The main purpose of the research is to determine whether mutual funds alter their investments across the business cycle. Systematization of the literary sources and approaches for solving the problem of the relationship between the business cycle and the composition of mutual funds indicates that five-star rated mutual funds may have an investment strategy that is different from lower-rated funds. Investigation of the topic of the relationship between the business cycle and composition of mutual funds in the paper is carried out in the following logical sequence: First, we classified each quarter as an “improving” or a “worsening” business condition period based on the Aruoba-Diebold-Scotti Business Conditions Index. As a result, we had seven “improving” and seven “worsening” business condition periods during our sample period...
International Journal of Academic Research in Business and Social Sciences
In this study, we examine the implications of FCC Auctions for U.S. companies in foreign countrie... more In this study, we examine the implications of FCC Auctions for U.S. companies in foreign countries. We show that U.S. auctions will have the most detrimental effect on U.S. companies planning to serve the most attractive foreign markets. For moderately attractive markets, establishing a joint venture with a firm in the target country is crucial. The least attractive markets can become more attractive when their neighboring countries are served by U.S. companies. We discuss the foreign retaliation upon U.S. telecom auctions, U.S. companies' responses, the pressure from the U.S. Congress on the FCC, and FCC's strategies. We conclude by analyzing the foreign reactions to U.S. auctions, these reactions' implications on the FCC, and the offsetting trends. Finally, we recommend some strategies to FCC.
International Journal of Academic Research in Business and Social Sciences
The Great Recession of 2008-2009 hurt almost all of the companies' stock values in the United Sta... more The Great Recession of 2008-2009 hurt almost all of the companies' stock values in the United States. Interestingly, for Starbucks, the deterioration started a few years before the recession. From 2005 to 2007, the company's stock price declined by approximately 40%. This case encourages students to examine the company's return on capital, compare it to its cost of capital, and then relate this to the decline in the company's stock price. First, they will establish a single formula for return on invested capital. Then, they will calculate the return on invested capital for Starbucks in each year. They will learn about different costs of capital including cost of common stock, cost of preferred stock, and cost of debt. Then, they will debate whether cost of debt capital, cost of equity capital, or weighted-average cost of capital is the relevant number to compare to the company's return on invested capital. Overall, the case illustrates the importance of return on capital, the different types of cost of capital, and the overall cost of capital on a company's value.
Journal of Higher Education, Theory, and Practice, 2011
Assessment of learning continues to gain in importance. Demonstrating achieving learning outcomes... more Assessment of learning continues to gain in importance. Demonstrating achieving learning outcomes is already mandated in secondary education, and is predominantly done through standardized tests in multiple-choice format. So far, Higher Education has been exempt. In the near future, assessment of learning may be replaced with government-mandated procedures and testing. Developing proper assessment methods and demonstrating achieving learning outcomes presents an opportunity to pre-empt regulatory mandates. The current research describes the use of a new testing method where the focus is on testing of students as a group, not individually. The methodology is applied to a Management course.
International Journal of Academic Research in Business and Social Sciences
In this study, we examine telecommunication auctions and develop a framework of U.S. satellite sp... more In this study, we examine telecommunication auctions and develop a framework of U.S. satellite spectrum licensing, foreign reactions to U.S. decisions, business assessments of opportunities and the feedback to the FCC's policy. This framework views the international licensing process as a series of actions, reactions, and feedbacks. We recommend policy makers to use this framework as a guide. We also recommend future studies on telecommunication auctions to use this framework as their starting point.
In this paper, using our actual experience as finance faculty, we go over the steps to build and ... more In this paper, using our actual experience as finance faculty, we go over the steps to build and run an Investment Lab at University. First, we explain how the curriculum may be changed in order to accommodate this experiential learning opportunity in a finance undergraduate program. We explain how a new course oriented towards portfolio management may be created. Next, we describe how the student body may benefit from this initiative. Why is an Investment Lab needed at a university? What are the disadvantages of not having an Investment Lab (i.e. losing market share to competition, not bridging between theory and practice, and so on)? What is the solution to these problems? We explain that the solution possibly requires a new “Applied Portfolio Management Concentration/Minor”. As an example, we show what courses may be included under this new minor. Then, we go over the operational plan, including the business plan. We propose the establishment of a four-course minor, the lab, and ...
In this paper, using our actual experience as finance faculty, we go over the steps to build and ... more In this paper, using our actual experience as finance faculty, we go over the steps to build and run an Investment Lab at University. First, we explain how the curriculum may be changed in order to accommodate this experiential learning opportunity in a finance undergraduate program. We explain how a new course oriented towards portfolio management may be created. Next, we describe how the student body may benefit from this initiative. Why is an Investment Lab needed at a university? What are the disadvantages of not having an Investment Lab (i.e. losing market share to competition, not bridging between theory and practice, and so on)? What is the solution to these problems? We explain that the solution possibly requires a new "Applied Portfolio Management Concentration/Minor". As an example, we show what courses may be included under this new minor. Then, we go over the operational plan, including the business plan. We propose the establishment of a four-course minor, the lab, and a student managed fund. We explain how the whole operation will be financed. Then, we present the timeline and explain what needs to be done throughout the whole process. Finally, we go over the costs in detail. We believe that this paper will help other universities that would like to start an Investment Lab.
Considering the paradox of drinking what you drive and driving what you drink, Coors Brewing Comp... more Considering the paradox of drinking what you drive and driving what you drink, Coors Brewing Company’s conversion of spilt beer into ethanol is interesting and timely because of today’s intensified need for alternate fuels. The decision of investment in a sustainable project was present in 1996 as well as today. It is evident that Coors considered sustainability before it became popular. Their ethanol project allows an examination of several business issues that pertain to finance, accounting, operations management and environmental management students. This case has provided students sufficient information to practice the whole capital budgeting process which includes identifying and forecasting cash flows, applying capital budgeting tools and performing sensitivity and scenario analysis. Finance students will focus on cash flows and the capital budgeting aspect of the case. The potential reduction of waste disposal cost and generation of revenues from ethanol production will also ...
International Journal of Academic Research in Business and Social Sciences, 2015
Sustainability efforts encompass economic, social and environmental management. After decades of ... more Sustainability efforts encompass economic, social and environmental management. After decades of promoting such causes, sustainability finally has moved up to the boardroom agenda per PricewaterhouseCooper 2012 report. As companies incorporate sustainability into business strategy, it is crucial for accountants and financial managers to capture the financial implications of those sustainable practices. This case provides an in-depth review of current reporting and measurement of sustainable practices and outlines properties of a sustainable model. Students will analyze reasons for corporations to provide sustainability reports and examine limitations of current sustainability reporting practices. Students are advised to consider what enhancement in current reporting could increase the economic value of reporting efforts and evaluate the relative contribution of sustainable practices that improve firm performance. This case illustrates development of corporate sustainability reporting, the importance of collecting relevant data, analyzing operational data, reporting in accounting and financial terms, incorporating sustainability when making strategic business decisions.
China’s economy has been growing rapidly since the late 1970s and is expected to maintain this mo... more China’s economy has been growing rapidly since the late 1970s and is expected to maintain this momentum in the foreseeable future. Coupled with the biggest population in the world, there is tremendous growth potential for China’s capital markets and financial services industry, both vital to the continued development of the economy. The contributors present research on all facets of China’s markets including: stock and bond markets; futures and over-the-counter markets; regulatory issues; and the development and roles of financial institutions such as brokerage firms, banks and insurance companies. Also addressed are the recent performance of equity markets, the emergence of small and medium enterprises, and the state banks’ bids to be listed in overseas stock exchanges. Taken together, the book sheds a welcome light on China’s overall economic growth.
International Journal of Academic Research in Economics and Management Sciences, 2016
In this study, we examine U.S. companies' activities in foreign telecommunication auctions and an... more In this study, we examine U.S. companies' activities in foreign telecommunication auctions and analyze the reactions of host countries to these outside bidders. We identify the possible concerns of the host countries. There are two sets of concerns that could drive the behavior of foreign countries: concerns for anti-front-runner/late-comers or concerns for public welfare. The anti-front-runner/late-comers' concerns stem from either host country's fear of the loss of international competitiveness/future economic growth or its fear of the potential loss of revenues. The public welfare concerns stem from an anti-auction sentiment, an antimonopolistic sentiment, or an anti-foreign and anti-Americanism sentiment within the host country.
The objective of this study is to assess the effect of a U.S. auction on the economic risks of pr... more The objective of this study is to assess the effect of a U.S. auction on the economic risks of providing satellite services that cross national borders. The differences between satellite communications services and terrestrial communications could induce significant distortions because satellite licensing involves a time-consuming parade of licensing decisions, conflicting cultural norms, and differing technical and economic characteristics of geographically segmented markets. In the proposed sequential game framework, governments and potential licensees play against one another to find the best strategy. We assess the costs in terms of the political and regulatory receptiveness of a U.S. company in other countries and correlate the reaction in those countries with the degree of market attractiveness in those countries. We argue that the reaction to foreign (and especially U.S.) companies applications for operating licenses will differ across the three country types. The reactions c...
Assessment of learning has become a major issue in education in recent years. Secondary education... more Assessment of learning has become a major issue in education in recent years. Secondary education has already been confronted with demonstrating learning outcomes. This is predominantly done through standardized tests in multiple-choice format. Higher education has not been confronted with demands for standardized testing, and assessment of learning takes place as part of accreditation and in voluntary alliances. Developing proper assessment methods presents an opportunity to pre-empt regulatory mandates. The current research describes the development of a new methodology to demonstrate student performance in higher education. Results for the first semester application in an Information Systems Design class are presented.
The main purpose of this study is to review practical experience and provide guidance on the use ... more The main purpose of this study is to review practical experience and provide guidance on the use of StockTrak software (trading virtual assets of various types of investment assets) by students to make investment decisions under uncertainty. The article uses such scientific methods of analysis as analysis, synthesis, comparison, abstraction and modeling. The information base for the study is students enrolled in bachelor's degree programs in economics at Northeastern State University (USA). Based on the analysis of students' reports for the period 2014-2017, it is established that the most common mistakes in the study of socioeconomic processes include the neglect of transaction costs and the non-accounting of dividends in the calculations. For the most part, students have difficulty calculating financial ratios correctly because they are not sufficiently familiar with the procedure for acquiring investment assets using margin, and are unable to determine the initial amount ...
This paper summarizes the arguments and counterarguments within the scientific discussion on the ... more This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of mutual funds’ composition across the business cycle. The main purpose of the research is to determine whether mutual funds alter their investments across the business cycle. Systematization of the literary sources and approaches for solving the problem of the relationship between the business cycle and the composition of mutual funds indicates that five-star rated mutual funds may have an investment strategy that is different from lower-rated funds. Investigation of the topic of the relationship between the business cycle and composition of mutual funds in the paper is carried out in the following logical sequence: First, we classified each quarter as an “improving” or a “worsening” business condition period based on the Aruoba-Diebold-Scotti Business Conditions Index. As a result, we had seven “improving” and seven “worsening” business condition periods during our sample period...
International Journal of Academic Research in Business and Social Sciences
In this study, we examine the implications of FCC Auctions for U.S. companies in foreign countrie... more In this study, we examine the implications of FCC Auctions for U.S. companies in foreign countries. We show that U.S. auctions will have the most detrimental effect on U.S. companies planning to serve the most attractive foreign markets. For moderately attractive markets, establishing a joint venture with a firm in the target country is crucial. The least attractive markets can become more attractive when their neighboring countries are served by U.S. companies. We discuss the foreign retaliation upon U.S. telecom auctions, U.S. companies' responses, the pressure from the U.S. Congress on the FCC, and FCC's strategies. We conclude by analyzing the foreign reactions to U.S. auctions, these reactions' implications on the FCC, and the offsetting trends. Finally, we recommend some strategies to FCC.
International Journal of Academic Research in Business and Social Sciences
The Great Recession of 2008-2009 hurt almost all of the companies' stock values in the United Sta... more The Great Recession of 2008-2009 hurt almost all of the companies' stock values in the United States. Interestingly, for Starbucks, the deterioration started a few years before the recession. From 2005 to 2007, the company's stock price declined by approximately 40%. This case encourages students to examine the company's return on capital, compare it to its cost of capital, and then relate this to the decline in the company's stock price. First, they will establish a single formula for return on invested capital. Then, they will calculate the return on invested capital for Starbucks in each year. They will learn about different costs of capital including cost of common stock, cost of preferred stock, and cost of debt. Then, they will debate whether cost of debt capital, cost of equity capital, or weighted-average cost of capital is the relevant number to compare to the company's return on invested capital. Overall, the case illustrates the importance of return on capital, the different types of cost of capital, and the overall cost of capital on a company's value.
Journal of Higher Education, Theory, and Practice, 2011
Assessment of learning continues to gain in importance. Demonstrating achieving learning outcomes... more Assessment of learning continues to gain in importance. Demonstrating achieving learning outcomes is already mandated in secondary education, and is predominantly done through standardized tests in multiple-choice format. So far, Higher Education has been exempt. In the near future, assessment of learning may be replaced with government-mandated procedures and testing. Developing proper assessment methods and demonstrating achieving learning outcomes presents an opportunity to pre-empt regulatory mandates. The current research describes the use of a new testing method where the focus is on testing of students as a group, not individually. The methodology is applied to a Management course.
International Journal of Academic Research in Business and Social Sciences
In this study, we examine telecommunication auctions and develop a framework of U.S. satellite sp... more In this study, we examine telecommunication auctions and develop a framework of U.S. satellite spectrum licensing, foreign reactions to U.S. decisions, business assessments of opportunities and the feedback to the FCC's policy. This framework views the international licensing process as a series of actions, reactions, and feedbacks. We recommend policy makers to use this framework as a guide. We also recommend future studies on telecommunication auctions to use this framework as their starting point.
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Papers by Julia Kwok