Journal of Accounting and Finance

Fintechs and Banking: A Note on Neobank Risks

2025-01-26T20:52:29-05:00

The fintech industry has made rapid inroads into banking in the last several years. Pundits tout that it will improve efficiencies while giving consumers broader choices in developing their banking portfolios. Others posit that it will erode bank profitability and that its success is tied to monetary policy. Our research focuses on an overlooked aspect of fintech: neobanks, sometimes called a challenger bank, that allow customer access to apps and software that streamline online and mobile banking. This paper will cover a brief history of fintechs, fintech advantages, and finally, discuss some of the risks of neobanking.

Historical Development of Taxation From Ancient Times to Modern Day: Implications for the Future

2025-01-26T21:05:46-05:00

This study examines the history of taxation, specifically how taxation was used over the centuries by major world civilizations. This study provides a comprehensive review of past and more recent studies, spanning the full length of tax history using a quasi-empirical approach, thereby offering a unique contribution to the academic literature. Theoretical foundations include Adam Smith’s Canons of Taxation, benefit theory, ability theory, and tax assignment theory. Implications are drawn for the future of taxation. Findings suggest that various forms of taxation played a critical role in amassing resources necessary to build and sustain world empires and republics. Implications are that this will continue. Excessive taxation was included as a factor in the downfall of some empires. World history might have taken a notably different direction without the revenues accumulated via taxation. Results will interest tax policy makers, academic tax researchers, law professors, and others concerned with the historicity of taxation. Results can also be used by accounting and legal educators.

Humor in the Classroom: An Introvert’s Perspective and Implementation

2025-01-26T20:58:17-05:00

Being humorous in the classroom seems particularly challenging to an introvert who needs time alone and is usually not perceived as outgoing. We offer the experience of an introverted finance faculty member on using humor in the classroom over the past two decades. We emphasize the weaknesses and strengths of an introvert, and how they shape the humor strategies and attempts of the faculty member. We provide examples of “educational” jokes that the faculty member used in his attempts to make it more interesting in the classroom and to engage students. Student feedback on the attempted humor is overwhelmingly positive.

Valuation Considerations of Stock Based Compensation: A Case Study of Semiconductor Firms

2025-01-26T21:01:47-05:00

Equity research analysts and investors remain divided on the treatment of stock-based compensation (SBC) in firm valuation, particularly in discounted cash flow (DCF) and earnings multiples techniques. Many firms and analysts exclude SBC, viewing it as a non-cash expense, while others argue this leads to overvaluation. SBC usage is especially high in the tech sector. This study examines five large semiconductor firms, analyzing SBC levels, its treatment in adjusted earnings, and its impact on share dilution, valuation multiples, and free cash flow calculations. Findings indicate that SBC treatment significantly affects valuation, particularly within the semiconductor industry.