Stander Symposium abstract book - University of Dayton

9:00 AM to 10:30 AM
SCHOOL OF BUSINESS ADMINISTRATION
The IASB Presentation of Items of Other Comprehensive Income: an Analysis of Comment
Letters
Presenter(s): Katherine E Seager
Advisor(s): Donna L Street
Accounting - Honors Thesis
The American Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are working together to
converge their accounting standards. The Boards have jointly undertaken the Financial Statement Presentation Project to standardize the presentation
of financial statements, using constituent feedback to guide their efforts. This thesis analyzes how the Boards use the feedback from different
parties to shape their standard setting in the area of Other Comprehensive Income. Comment letters were received by the Boards in response
to the publication of proposed changes to standards. The thesis looks at these comment letters and analyzes the apparent impact of responses
received on the final accepted amendments to the rules.
ROA and ROE as Determinants of Quality in Portfolio Management
Presenter(s): Joseph J Capka
Advisor(s): Robert D Dean, John E Rapp
Davis Center for Portfolio Management - Honors Thesis
Does Quality Matter? Since 1956, Standard & Poorâs has offered a rating system that differentiates stocks by quality, known as its Quality Rankings.
From S&P’s perspective, quality is a function of the growth and stability of earnings and dividends over time. While a number of past studies
have concluded that stocks with a high quality ranking tend to outperform the market, some studies have identified variability among rankings,
which suggests that a more complete set of ranking criteria is needed. In my study, I have tested the hypothesis that both Return on Equity (ROE)
and Return on Assets (ROA), when considered as criteria for portfolio construction, generate additional performance above the S&P 500. Through
an analysis of hypothetical portfolios of quality-ranked stocks, I have concluded that both ROE and ROA are additional determinants of quality
and hence portfolio performance.
A Linear Probability Model of the Likelihood of Positive Returns for the S&P 500 Sectors,
2005-2001
Presenter(s): Brandon M Capicotto, Ryan D Hunn
Advisor(s): Robert D Dean, John E Rapp
Economics and Finance - Independent Research
The purpose of this study is to determine the odds or probability that an S&P 500 sector will have positive returns when the market has positive
returns. Using monthly data for the ten S&P 500 sectors and the S&P 500, a linear probability model was developed for three time periods: (1)
the complete 2005-2010 period, (2) the market downswing period, 12-31-07 to 3-31-09 and (3) the market upswing period, 3-31-09 to 12-
31-10. For each of the periods we also calculated the average positive return for each sector. Using 2011 as the forecasting period based on the
number of months of positive returns for the S&P 500 in 2011, we estimate the number of positive returns and the average expected return for
each sector. Because 2011 has very distinct upswing and downswing periods, we develop our forecast estimate for these periods using the probability
outcomes for the upswing and downswing periods sited above. The estimates are then matched against actual results in 2011. Results are
forthcoming.
54