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 main purpose of a bankruptcy is to settle accounts with creditors and to establish a market value for the company as a whole. This paper deals with Finnish bankruptcies. It shows that bankruptcies are strongly related to the business cycle and
The emergence of financial conglomerates and multinational financial institutions as well as the development of new financial products have raised concerns as to the ability of separate sectoral supervisors and different national authorities to effectively oversee financial markets. Concentrating on the European
Efficiency in the context of financial markets can be defined in many ways. The major strand of finance literature measures the market’s ability to process information into prices. Another strand of literature refers to the economists’ usual sense of the word, i.e.