Since the 1970s, world business transactions have experienced and contributed to diverse sources of financial uncertainty or risk (see, Dowd, 2005; Holton, 2003; Jorion, 2006; Tardivo, 2002a). Financial risk or risk created through financial transactions can be associated with value reduction. This reduction is due to market factors disequilibrium such as equity prices devaluation, interest […]
“Too big to fail” was a very regular term we all heard during the Great Recession of 2008, but did we truly understand the term? To understand this overused term, we must first define what it means to be a firm that is “Too Big to Fail”. According to Stern and Fieldman, ” ‘too big […]
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Get help with your assignmentImprove market discipline in banking is one of the three pillars proposed by the Basel Committee on Banking Supervision in January 2001. This new Basel Capital Accord contains new rules to respond to the deficiencies of the previous accord on credit risk which was made in 1988. First pillar is calculating risk weights for different […]
This essay explores empirically the usefulness of liquidity risk, credit risk and market risk as risk measures indicators to explain whether German banks riskier than European competitors or not. The sample of reference entities consist of all German banks and eleven European banks and the observation cover the period from1994 to 2008. Using a unique […]
The use of financial statements to show the states of affairs of an undertaking is crucial in the quest of satisfying many a stakeholder. The government expects tax payments whose calculation depends on an accurate statement, while shareholders await for dividends declared on the basis of the results of the financial statements and potential investors […]
The Efficient Market Hypothesis is one of the most important and widely disputed propositions in finance and economics(pesaran(2010)). There is no doubt that EMH is a cornerstone of modern finance. Market efficiency is a concept intimately related to the diffusion of information. In retrospect, we see that The efficient market hypothesis is inextricably related to […]
Hedge funds are pools of investment that invest in almost any opportunity in any market where they foresee impressive gains at reduced risk. Hedging refers to implementing strategies that manage or protect against an identified risk exposure. They take leveraged positions in publically traded equity, debt, foreign exchange and derivatives. The primary aim of most […]
We will examine as variable X the real equity premium. It is used to measure the return if in the market exists a risk-free return. We choose real equity premium because it plays a very important role to measure the cost of capital and to evaluate the cash flows of a company. The price of […]
3.1 Introduction to research methodology: Types and forms of research philosophy. The different methods for designing the research that we can use for the purpose of evaluating any topic. Illustration of methods used for data collection in terms of their content and other features. The quality of the research is an important element, thus it […]
Corporate Finance is a vast branch business management, which deals with the management of funds and capital arrangement. Corporative Finance as an immensely lucrative aspect that deals with helping business organizations manage money for various ventures, managing their assets, acquire other firms and make a robust financial planning for the future (Beaney, S., 2005.). It […]
Researches on the causal relationship between equity prices and exchange rates have been conducted with various econometric methods. In this study, I employ the vector autoregressive model and dynamic Granger (1969) causality test to examine the relationship between the variables under study. Empirical studies which are premised on time series data assume that the underlying […]
Basel II was implemented in the year 2004 by BCBS (Basel Committee on banking supervision), it was to create an international standard of banking regulations on bank’s capital to safeguard financial, operational and market risks. Role of FSA to bank supervision The Financial Services Authority (FSA) is an independent non-governmental body, and a company limited by guarantee responsible […]
Venture Capital Defined: Venture Capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc. The typical venture capital […]
This is the basic equation of synergy which exists behind a merger or an acquisition. The main principle behind buying or acquiring a company is to create a shareholder value very much above that of the sum of the two companies. The total value of firms after M&A is greater than their simple arithmetical sum […]
Fama, after the publication of his world renowned article in May 1970 he is known as the godfather of the efficient market hypothesis (EMH). It all began when he submitted his Ph.D. thesis which entitled “Efficient Capital Markets: A Review of Theory and Empirical Work.” In that paper he defined the concept of accurate market […]
In addition, the creditworthiness may be affected by a variety of other factors, such as residence, place of work, property ownership, number of persons in the household, etc. The analysis of the creditworthiness involves preliminary study of the factors and prerequisites which can affect adversely the duly repayment of the creditor. Thus, it is of […]
The weighted average cost of capital (WACC) of a firm simply refers to how much, on average, it costs the firm to raise money. That is, it is the average rate that the firm must pay on any new capital that it raises. The importance of the WACC is in its relation to the evaluation […]
The tax system of any country is born out of a tax policy. It plays a vital role in the fiscal policy of that country; be it Kuwait, Egypt or America. The tax system of different countries varies according to country and the government enforces certain additions, revision and review to the tax system of […]
3.1 Research Design The ultimate purpose in this paper was to describe and compare a number of published models, to provide some comparison of the distributions that result from them, and to determine which best suit the Ghanaian economic data. This research focuses on the strategic asset allocation models. This is because these models have […]
According to the London School of business & finance, Accounting ratios are defined as a kind of term which is used as describing significant relationship between figures shown in a profit and loss account, on a balance sheet, , in a budgetary control system or in any other part of accounting organization. There are five […]
“Internet banking” refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent device. Internet banking products and services can include wholesale products for corporate customers as well as retail and fiduciary products for consumers. Ultimately, the products and services […]
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 […]
What is financial market? In the economics, the financial market is a mechanism that allows the people to sell and buy the financial commodities, securities and other fungible items of value at a low transaction costs and at prices that reflect the efficient-market hypothesis. The financial markets can be divided into different subtypes, there are […]
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 […]
When the individuals, business and government give instruction to the financial system, financial system need to respond and do transfer funds to other parties. For example, when a traveler uses the credit card to obtain cash in a foreign country, or when a firm needs to pay for the import from abroad, the financial system […]
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 study is based on 60 monthly observations from April 2005 to March 2010 inclusive. The period was chosen to provide enough observations to obtain reliable parameter estimates. The totality of the data was obtained from Yahoo Finance, Bank of England, and Office for National Statistics. Despite that historical Stock data is available on daily, […]
BORN ON March 27, 1806, as the Bank of Calcutta, the State Bank of India (SBI) will celebrate its 200th birthday in 2006. Initially owned by the East India Company’s government and managed by its top officials, it was transformed into the Bank of Bengal, a joint-stock bank with limited liability, with effect from January […]
This 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 […]
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 […]
