Agency theory suggests that the separation of corporate ownership and control potentially leads to self-interested actions by managers (Jensen and Meckling, 1976). To combat agency problems, outside directors, due to their presumed independence relative to insiders, may be able to do a better job in monitoring and controlling management, thus helping improve firm performance (Walsh […]
First, the company should take on investment projects that offer higher rate of return and regardless of the preferences of the firms owners. Shareholders wealth will be maximized by investing in as many such projects as are available. Second, investments preferences of individual shareholders are irrelevant in making corporate investment decisions. If Costco Wholesale Company […]
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Get help with your assignmentThis involves the sale at a discount of accounts receivable or other debt assets on a daily, weekly or monthly basis in exchange for immediate cash. The debt assets are sold by the exporter at a discount to a factoring house, which will assume all commercial and political risks of the account receivable. In the […]
Since the financial crisis in 2008, the economy around the world has been growing slowly, especially in developed countries. And stock markets in many counties experienced downturns. Fox example, the peak point is around 14,000 points for Dow Jones Industrial Average index in 2007, while it declined to 6,600 in 2009. Also the unemployment rate […]
It is known that the analysts use the treasury bills, notes or bonds rates, to define the riskless asset and its rate of return for modeling the capital market by the Capital Asset Pricing Model (CAPM), portfolio selection and performance analysis, using the Modern Portfolio Theory (MPT). Due to the fact that these securities do […]
The Central Bank of Malaysia like other countries does have the same role. Malaysia is a place or country which it has a various financial institutions and banks operating the states managing the about the monetary. Under the Central Bank of Malaysia 2009 section 4 state that the bank might be the Central Bank of […]
INTRODUCTION The International Monetary Fund came into formation in July 1944 when representatives of 45 countries met together in the town of Bretton Woods, New Hampshire in north-east of United States. They agreed to establish a framework for the international economic cooperation after the Second World War. It was believed that such a framework for […]
Since the 2008 global financial crisis, there is a great impact and effects on both developed and developing countries by the financial crisis. Australia Governments have taken active measures to tackle the financial crisis. In developed countries, Australia was the first to recover in short time from the global economic recession. In 2009, the economy […]
This chapter focuses on the results obtained based on the empirical analyses conducted to test the research objectives. The descriptive statistics calculated for the sample are provided in the sections that follow. That is, the data pertaining to the variables included in the study, as collected by the questionnaire is summarised by means of calculation […]
MCB is amongst the oldest banks of Pakistan. It was amid those isolated banks to be nationalized in 1974 later it was assimilated in 1947. Nationalization had an extreme effect on its presentation and performance as it exaggerated the superiority of loan collection and services. Ultimately, it was denationalized in 1991 and is presently maintained […]
This paper compares a number of strategies for managing foreign exchange exposures. Never hedging, hedging every exposure in our strategies is using a forward exchange contract and hedging on alternative occasions using a forward exchange contract. According to the selective hedging, whether to hedge or not is a very important decision which depends on the […]
1. Introduction: The purpose of this assignment is investigation how credit crunch issues is widespread in the world and what is the quality of financial statement. This will be shown by analyzing the fraud in financial statement of Enron and WorldCom. 2. Methodology Analysis based on a review of the academic auditing literature, audit reports, […]
This thesis is designed to give long-term investors suggestion on which companys share Morrisons, Carrefour and Lianhua should be invested based on fundamental analysis. In this thesis, there are five parts to help long-term investors evaluate the three companies’ external environment, internal environment and potential development in the future. Then, give long-term investors suggestions investing […]
In this paper Rudolph studied on short-term relationship between money supply and stock prices that shows the correlations between changes in the money supply and changes in the stock prices, which was the subject of this body, that first became deceptive for Rudolph in 1967. It was in short-term nature, It believed these correlations signify […]
According to Mun(2006), Real Options(RO) is a ” systematic and comprehensive method” used to value real tangible assets. The term “Real Options,” first used by Myers(1977), refers to the application of financial options theory to investment decisions made by firms (Krychowski and QueA´lin, 2010). RO has been of growing interest to the academic community as […]
Introduction Background of study 1.1.1 Online banking payment : definition Most of the people are so busy in their daily time. People who already married are busying sending their children go to school or try to earn a lot of caution money for future when need to use them urgently. Pinch pennies are so common […]
The purpose of this chapter is to give an introduction to this study and an explanation why the research was being done. First it reviews literature on Small and Medium Sized Enterprises. Thereafter, it also discusses the nature and importance of working capital as well as strategies used in management of working capital. Finally, it […]
When a man assumes the responsibility of running a business, he automatically takes the responsibility for attempting to forecast the future and to a very large extent his success or failure would depend upon the ability to forecast successfully the future course of events. Forecasting aims at reducing the areas of uncertainty that surround management […]
Abstract This project examined the optimal allocation of stocks based on the Markowitz Mean Variance Optimization Model. It is mainly based on the comparison between two samples of stock returns. The first sample is referred to as the full data set, and contains the returns of the stocks GE, Baxter, Dow, Caterpillar, Apple, and Procter […]
Contrary to Modigliani and Miller (1958, MM hereafter), Capital Structure is not irrelevant when we consider a firm with a dividend payout policy. This article extends the MM capital structure theorem by relaxing the full payout assumption and introducing retention policy. The theoretical contribution shows that it is possible to verify the theorem when we […]
Financial system is a mechanism where economic exchange activities can be done. The economic activities can be done through the interaction between financial institutions and the financial market. The purposes of this interaction are to mobilize fund and providing payment facilities for the financing of commercial activities. With the emergence of Islamic finance, the dual […]
The word bank is derived from an Italian word ‘Banque’ which means beanch. The view has the basis that early bankers conduct their business while sitting on benches in Italy. Bank is a financial institution which accepts deposits of money from the public for the purpose of lending or investing and these deposits are repayable […]
NPAs have turned to be a major stumbling block affecting the profitability of Indian banks before 1992,banks did not disclose the bad debts sustained by them and provision made by them fearing that it may have an adverse. Owing to the low levels of profitability, banks owned funds had to be strengthened by repeated infusion […]
The choice of stocks to invest in during a period of recession has gained importance once again since the global meltdown in 2008. Ideally individuals and fund managers should be able to predict a forthcoming recession and there should be some method of identifying stocks that do better in such periods. In USA, inverted yield […]
Information technology plays an integral part of virtually every major global industry, which has emerged as a prime global source of growth and employment. IT industry has become one of the most vigorous industries in the world due to increased productivity worldwide, especially in the developed countries. Owing to its extensiveness and easy accessibility as […]
Over the last months, European Monetary Union (EMU) countries have experienced large movements in their spreads with an unrecorded degree of volatility. Academic research consensuses agree these movements haven’t been the result of the same causes over time; for instance, at the beginning of the crisis investors required higher premiums, making the market price of […]
This study examines the impact of liquidity on Islamic banks profitability during an 11 years period of 2001 to 2011. To explore and interpret the results the study has taken samples from five Islamic banks that have been in operation in Bangladesh on or before 2001 to till date. In order to construct the liquidity […]
There was a time when money did not exist. Long ago, people at a stage called “subsistence economy” produced only what they needed. Their needs were few but their methods of production were such that they spent most of their living hours in an unceasing battle for personal survival. They had no need for money. […]
Sources of Finance Js and Co. must be very aware of the importance to use the appropriate sources of financing meeting the needs of your company. Sources of finance to business There are different sources of finance,namely : Short term finance- Trade credit Commercial banks -overdraft Fixed deposits for a period of 1 year or […]
Dividend policies are the guidelines and regulations that companies develop and implement as the means of arranging to make dividend payments to shareholders. Establishing a specific dividend policy is to the advantage of both the company and the shareholder. In order to make sure the policy is workable, a company should develop a viable policy […]
