Despite the fact that beneficial allocational effects happen to be a key inspiration for the Basel II capital adequacy reform, the interaction of these effects with Basel II’s procyclical impact has been less talked about. In this report, we check out effect
Despite the fact that volatility is at the center of activities in financial markets, the sample path realization of the volatility process is inherently unobservable. Numerous approaches are already utilized by both researchers and practitioners to determine volatility proxies. For example the
The phrase ‘Risk Management’ is since World War 2 a developing concept in Business Economics and risk management is frequently present in organizations. Diverse areas of attention, that are also included in the frameworks of standardization organizations as COSO and AIRMIC, which
A well-known study, much like ours, was made in 1985 in the united states, demonstrating that “loser” portfolios outperformed the market while “winner” portfolios generated less return than the market. This finding isn’t according to the theory of efficient markets. If a
The Real Option Approach (ROA) has been put forth as the solution to the problem of valuing manager flexibility and project risk within the framework of capital budgeting. In this thesis the ROA is applied on one of the riskiest of corporate ventures namely foreign direct investment.
Title: Value Creation in Buyouts: Value-enhancement practices of private equity firms with a hands-on approach Private equity emerges as an alternative financing source to bank loans and other types of financial instruments, such as stock and bond issuance. The fundamental operation of
The paper analyzes bank loan supply in a simple value maximizing partial equilibrium framework. The focus is on the role of bank capital, capital regulation and the pricing of bank liabilities. The model is constructed so as to resemble the situation of the Finnish local banks in the late 1980s and the early 1990s, particularly with regard to capital regulation which changed subtantially during this period.
This document evaluates interest margin determinants in the Russian banking sector with a specific focus on the bank ownership structure. Employing a unique bank-level data covering Russia’s entire banking sector for the 1999-2007 period, we discover that the impact of a number
This project examines whether the pricing of connected transactions is driven by tunneling purpose to benefit controlling shareholders at the expense of minority shareholders. I also explore whether the pricing decision is influenced by specific corporate governance and information disclosure characteristics.
This dissertation looks at the link between growth status and the cross-section of corporate capital structure. Initially, I propose initial growth status, an idea depending on a two-way sort on firms’ market-to-book and asset tangibility in early yrs after Initial public offering, not just reflects the cross-sectional variants in leverage ratios, but in addition unveils the time in-variant evolutions in capital structure. That’s, high (low) growth status firms generally have steady low (high) leverage over extended periods of time.