Resume

• 2010

  Doctor of Philosophy (PhD)

  Finance

  The University of Memphis

• 2006

  Master of Science (MSc)

  Finance

  General

  University of Plymouth

• Statistics

  Public Speaking

  Analytical Skills

  Analysis

  Qualitative Research

  Data Analysis

  Curriculum Design

  Teaching

  Lecturing

  Financial Analysis

  Research

  Microsoft Office

  University Teaching

  Higher Education

  Grant Writing

  Religion and ratio analysis: Towards an Islamic corporate liquidity measure

  This paper contributes to the emerging literature on the effect of religion on corporate decision making and financial reporting. Financial statement analytical tools could violate several commands of Islamic law. Specifically

  traditional liquidity ratios imply undervaluation

  uncertainty

  and interest bearing aspects that are strictly prohibited in Islamic law. We propose an Islamic-compliant measure of corporate liquidity. In order to validate our proposed ratio as a measure of corporate liquidity

  we incorporate it in the traditional corporate bankruptcy prediction models. Our measure significantly improves the accuracy of the corporate bankruptcy prediction models of Altman (1968) Z-score and Ohlson (1980).

  Religion and ratio analysis: Towards an Islamic corporate liquidity measure

  This paper contributes to the growing literature on the effect of religion on corporate decision making. We posit that contingent payment in mergers and acquisitions not only violates Islamic law but also results in several agency issues by creating an incentive for managers to participate in long-term value-destroying behavior during earnout periods. Our empirical results

  using regression as well as difference-in-difference estimation

  show that target managers significantly manage earnings upward by cutting discretionary expenses during earnout periods. As compared to a sample of matched non-earnout M&A

  acquisitions with earnout clauses are followed by significantly lower long-term abnormal returns. Our arguments and results have significant economic and legal consequences on cross-border M&A and could be used to facilitate worldwide economic integration.

  Religion and mergers and acquisitions contracting: The case of earnout agreements

  The 2015 bankruptcy of Doral Financial Corporation

  once “the best” U.S. bank according to U.S. Banker

  is the largest since April 2010. The bankruptcy concludes years of management manipulation and efforts to recover. SEC investigation revealed fraud related to Doral’s valuation of interest only strips (IOs). We show that Doral management’s misconduct also includes reckless hiring

  over investing

  insiders trading

  and opportunistic stock splits. Investigating the full range of Doral management’s misconduct reveals new tactics that managers use to pool with good firms and aids our understanding of the economic impact of managerial misconduct.

  Exploring the manipulation toolkit: The failure of Doral Financial Corporation

  Islamic labeled firms: Revisiting Dow Jones measure of compliance

  Rwan Elkhatib

  Billions of dollars

  across 131 countries

  are invested in Islamic law‐compliant funds that are often promoted as consistent with the spirit and overall objectives of Islam (Maqasid Al‐Sharia)

  thereby indicating they are more socially responsible

  less risky

  and less prone to failure. The empirical results of this study indicate that Shariah‐compliant firms identified by the Dow Jones do not have higher corporate social responsibility (CSR) scores

  lower risk

  or lower likelihood of failure than noncompliant firms. We address endogeneity using the instrumental variable (IV) approach and selection bias using propensity score matching. Our results are similar when using the Dow Jones Islamic Market World

  the Financial Times Stock Exchange Islamic Index

  and the Hongkong and Shanghai Banking Corporation indices and when using CSR scores provided by multiple databases. We create an index to measure compliance with Islamic law that overcomes several flaws in the binary measures currently employed in the industry. This index can help Shariah‐compliant funds to fulfill their promise by constructing portfolios that are both compliant with Islamic rulings and consistent with the spirit and objectives of Islam in being more socially responsible

  less risky

  and less prone to failure.

  Islamic labeled firms: Revisiting Dow Jones measure of compliance

  This paper aims to differentiate between optimistic splits and overoptimistic/opportunistic splits. Although markets do not distinguish between these two groups at the split announcement time

  optimistic (overoptimistic/opportunistic) splits precede positive (negative) long‐term buy‐and‐hold abnormal returns. Using the calendar month portfolio approach

  we show that the zero‐investment

  ex ante identifiable

  and fully implementable trading strategy proposed in this paper can generate economically and statistically significant positive abnormal returns. Our findings indicate that pre‐split earnings management and how it relates to managers’ incentives

  is an omitted variable in the studies of post‐split long‐term abnormal returns.

  Return predictability: The dual signaling hypothesis of stock splits

  We examine the relation between CEOs political ideology and their firms’ investment decisions

  particularly their M&A decisions. Employing individual financial contributions data for the period from 1993 to 2006

  we find that firm’s investment decisions vary with CEO’s political ideology. Our evidence indicates that Republican CEOs are less likely to engage in M&A activities. When they do undertake acquisitions

  they are more likely to use cash as the method of payment

  and their targets are more likely to be public firms and to be from the same industry. Further

  Republican CEOs tend to avoid high information asymmetry acquisitions that involve the use of “earnout” clauses. Conditional on the merger

  CEO political ideology appears to have a significantly impact on long-run firm valuation. However

  we find no evidence that CEO political ideology creates value in the short-run. All our results are robust to controlling for CEO overconfidence.

  CEO Political Ideology and Mergers and Acquisitions Decisions

  University of Mansoura

  The University of Texas Rio Grande Valley

  The University of Memphis

  Smart Academy for Training and Consultation

  Eastern Kentucky University

  The University of Texas Rio Grande Valley

  PhD Candidate

  The University of Memphis

  Eastern Kentucky University

  Assistant Professor of Finance

  United States

  University of Mansoura

  Executive Trainer

  Smart Academy for Training and Consultation