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Finance
Kinds of Finance Terms modified by Finance Selected AbstractsCOSTLY EXTERNAL FINANCE AND INVESTMENT EFFICIENCY IN A MARKET EQUILIBRIUM MODELECONOMIC INQUIRY, Issue 4 2009JÁN ZÁBOJNÍK The corporate finance literature suggests that a financially constrained firm invests less than an identical unconstrained firm. This does not imply that financial frictions cause firms to invest less than in a frictionless economy. When firms compete for investment funds, an increase in financial frictions can lead individual firms to increase their investment levels. A greater than the frictionless level of investment is likely in low-productivity firms, in cash-rich firms, and in firms with cheap external capital. Government programs that make capital cheaper for small firms may lead to lower levels of investment for all firms and decrease efficiency (JEL O16, E22, E44, G20) [source] AUSTRALIAN FISCAL FEDERALISM: AN EMPIRICAL NOTE ON LONG-TERM TRENDS IN STATE AND LOCAL GOVERNMENT FINANCE, 1969/70 TO 1994/95ECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 3 2000BRIAN DOLLERY First page of article [source] FISCAL FEDERALISM, STATE LOBBYING AND DISCRETIONARY FINANCE: EVIDENCE FROM INDIAECONOMICS & POLITICS, Issue 1 2010RONGILI BISWAS In the quasi-federal democratic polity that India has, lobbying for central funds by the states is often done in a subliminal fashion. Hence, it becomes difficult to get an account of how much lobbying has been done to a particular end. Our paper attempts at constructing certain political proxy variables to quantify the extent of such lobbying in India. We quantify lobbying through the ministerial representation in the council of ministers. We also use several time and state dummies to account for the constituent states' political alignment with the center as well as the coalition and the reform period breaks in the Indian system. Taking panel data that cover 29 years and 14 major states we show that our constructed variables do explain disparity in central fiscal disbursements under the non-formulaic "discretionary" head in a robust way. Our findings remain true even after we take into account the impact of endogeneity of net state income on the transfers. Additionally, our exercise brings to the fore the fact that the coalition governments and economic reform measures impact upon state lobbying at the center in a significant manner. [source] MONEY FLOWS LIKE MERCURY: THE GEOGRAPHY OF GLOBAL FINANCEGEOGRAFISKA ANNALER SERIES B: HUMAN GEOGRAPHY, Issue 2 2005Gordon L Clark ABSTRACT. If the social relations and inherited configuration of production were at the core of economic geography a decade ago, these aspects of the world are increasingly taken for granted. The global scope of industry and corporate strategy has claimed increasing attention over the past decade. And while any ,new' economic geography must have something to say about the nature of human agency and the role of institutions in structuring the landscape, care must be taken not to exaggerate their significance for constructive interaction. In point of fact, the global finance industry is an essential lens through which to study contemporary capitalism from the top-down and the bottom-up. If we are to understand the economic landscape of twenty-first century capitalism, it should be understood through global financial institutions, its social formations and investment practices. This argument is developed by reference to the recent literature on the geography of finance and a metaphor , money flows like mercury , designed to explicate the spatial and temporal logic of global capital flows. Some may dispute this argument, but in doing so they lament the passing of an era rather than advancing a convincing counterclaim about how the world is and what it might become. All this means that we have to rethink the significance of geographical scale and organizational processes as opposed to an unquestioned commitment to localities. [source] ON FINANCE AS A THEORY OF TFP, CROSS-INDUSTRY PRODUCTIVITY DIFFERENCES, AND ECONOMIC RENTS,INTERNATIONAL ECONOMIC REVIEW, Issue 2 2008Andrés Erosa We develop a theory of capital-market imperfections to study how the ability to enforce contracts affects resource allocation across entrepreneurs of different productivities, and across industries with different needs for external financing. The theory implies that countries with a poor ability to enforce contracts are characterized by the use of inefficient technologies, low aggregate TFP, large differences in labor productivity across industries, and large employment shares in industries with low productivity. These implications are supported by the empirical evidence. The theory also suggests that entrepreneurs have a vested interest in maintaining a status quo with low enforcement. [source] AUTOREGRESSIVE CONDITIONAL DURATION MODELS IN FINANCE: A SURVEY OF THE THEORETICAL AND EMPIRICAL LITERATUREJOURNAL OF ECONOMIC SURVEYS, Issue 4 2008Maria Pacurar Abstract This paper provides an up-to-date survey of the main theoretical developments in autoregressive conditional duration (ACD) modeling and empirical studies using financial data. First, we discuss the properties of the standard ACD specification and its extensions, existing diagnostic tests, and joint models for the arrival times of events and some market characteristics. Then, we present the empirical applications of ACD models to different types of events, and identify possible directions for future research. [source] A SURVEY OF RECENT DEVELOPMENTS IN THE LITERATURE OF FINANCE AND GROWTHJOURNAL OF ECONOMIC SURVEYS, Issue 3 2008James B. Ang Abstract This paper provides a survey of the recent progress in the literature of financial development and economic growth. The survey highlights that most empirical studies focus on either testing the role of financial development in stimulating economic growth or examining the direction of causality between these two variables. Although the positive role of finance on growth has become a stylized fact, there are some methodological reservations about the results from these empirical studies. Several key issues unresolved in the literature are highlighted. The paper also points to several directions for future research. [source] MONETARY POLICY AND BEHAVIOURAL FINANCEJOURNAL OF ECONOMIC SURVEYS, Issue 5 2007K. Cuthbertson Abstract There have been major advances in both theory and econometric techniques in mainstream macro-models and parallel advances in knowledge of the monetary transmission mechanism acting via asset prices. At the same time, behavioural finance has provided evidence that not all actors in the economy are ,fully rational' and this has influenced models of asset pricing on which part of the monetary policy transmission mechanism depends. Such uncertainty about the behaviour of asset prices has in part stimulated a move towards ,robustness', as an important criterion for guiding monetary policy. We argue that although we have discovered much, including ,what not to do', nevertheless our knowledge of the transmission mechanism is very incomplete. This is because, in spite of all the theoretical advances that have been made, there is still considerable uncertainty over the behaviour of agents, which has been reinforced by insights from behavioural finance. [source] MEASURING RISK IN ENVIRONMENTAL FINANCEJOURNAL OF ECONOMIC SURVEYS, Issue 5 2007Suhejla Hoti Abstract Environmental sustainability indices, such as the Dow Jones Sustainability Indexes and the Ethibel Sustainability Index, quantify the development and promotion of sustainable social, ethical and environmental values in the community. Moreover, such indices provide a benchmark for managing sustainability portfolios, and developing financial products and services that are linked to sustainable economic, environmental, social and ethical criteria. This paper reviews the existing data and risk indices in environmental finance. The main purpose of the paper is to analyse existing sustainability and ethical indices in environmental finance, and evaluate empirical environmental risk by estimating conditional volatility clustering that is inherent in these indices. Financial volatility models are estimated to analyse the underlying conditional volatility or time-varying risk that is inherent in alternative environmental sustainability indices. Volatility clustering is observed for most series, but some extreme observations are also evident. The log- and second-moment conditions suggest that valid inferences can be drawn for purposes of sensible empirical analysis. [source] THE VALUE OF INFORMATION IN STOCHASTIC CONTROL AND FINANCEAUSTRALIAN ECONOMIC PAPERS, Issue 4 2005BERNT ŘKSENDAL We present an optimal portfolio problem with logarithmic utility in the following three cases: (i),The classical case, with complete information from the market available to the agent at all times. Mathematically this means that the portfolio process is adapted to the filtration of the underlying Brownian motion (or, more generally, the underlying Lévy process). (ii),The partial observation case, in which the trader has to base her portfolio choices on less information than . Mathematically this means that the portfolio process must be adapted to a filtration for all t. For example, this is the case if the trader can only observe the asset prices and not the underlying Lévy process. (iii),The insider case, in which the trader has some inside information about the future of the market. This information could for example be the price of one of the assets at some future time. Mathematically this means that the portfolio process is allowed to be adapted to a filtration for all t. In this case the associated stochastic integrals become anticipating, and it is necessary to explain what mathematical model it is appropriate to use and to clarify the corresponding anticipating stochastic calculus. We solve the problem in all these three cases and we compute the corresponding maximal expected logarithmic utility of the terminal wealth. Let us call these quantities , respectively. Then represents the loss of value due the loss of information in (ii), and is the value gained due to the inside information in (iii). [source] ON THE ROLE OF THE GROWTH OPTIMAL PORTFOLIO IN FINANCEAUSTRALIAN ECONOMIC PAPERS, Issue 4 2005Article first published online: 6 DEC 200, ECKHARD PLATEN The paper discusses various roles that the growth optimal portfolio (GOP) plays in finance. For the case of a continuous market we show how the GOP can be interpreted as a fundamental building block in financial market modeling, portfolio optimisation, contingent claim pricing and risk measurement. On the basis of a portfolio selection theorem, optimal portfolios are derived. These allocate funds into the GOP and the savings account. A risk aversion coefficient is introduced, controlling the amount invested in the savings account, which allows to characterize portfolio strategies that maximise expected utilities. Natural conditions are formulated under which the GOP appears as the market portfolio. A derivation of the intertemporal capital asset pricing model is given without relying on Markovianity, equilibrium arguments or utility functions. Fair contingent claim pricing, with the GOP as numeraire portfolio, is shown to generalise risk neutral and actuarial pricing. Finally, the GOP is described in various ways as the best performing portfolio. [source] FINANCE/MARKETS: CAMEROON: IMF AssessmentAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: Cameroon: Selected Economic Indicators 2008,11AFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: GUINEA BISSAU: Paris Club Debt ReliefAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: African Development Bank: New LoansAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: MALI: IMF AssessmentAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: Mali: Selected Financial Indicators 2008,12AFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: NIGERIA: Ongoing Banking ReformsAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: Seychelles: Paris Club DealAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: STOCK MARKETS: NigeriaAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: SUDAN: 2009 PerformanceAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] FINANCE/MARKETS: African CurrenciesAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] Publishing in the Majors: A Comparison of Accounting, Finance, Management, and Marketing,CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2004EDWARD P. SWANSON Abstract Business schools evaluate publication records, especially for the promotion and tenure decision, by comparing the quality and quantity of a candidate's research with those of peers within the same discipline (intradisciplinary) and with those of academics from other business disciplines (interdisciplinary). A recently developed analytical model of the research review process provides theory about the norms used by editors and referees in deciding whether to publish research papers. The model predicts that interdisciplinary differences exist in quality norms, which could result in disparity among business disciplines in the number of top-tier articles published. I examine the period from 1980 to 1999 and, consistent with the theory, find that significant differences exist in the number of articles and proportion of doctoral faculty who published in the "major" journals in accounting, finance, management, and marketing. Most notably, the proportion of doctoral faculty publishing a major article is 1.4 to 2.4 times greater in the other business disciplines than in accounting (depending on the set of journals). The theory also predicts an upward drift over time in the quality norms used by referees. Consistent with a drift, the number of articles published has declined substantially in marketing and, to a lesser extent, in the other business disciplines. [source] Has Finance Made the World Riskier?EUROPEAN FINANCIAL MANAGEMENT, Issue 4 2006Raghuram G. Rajan G20; G21; G22 Abstract Developments in the financial sector have led to an expansion in its ability to spread risks. The increase in the risk bearing capacity of economies, as well as in actual risk taking, has led to a range of financial transactions that hitherto were not possible, and has created much greater access to finance for firms and households. On net, this has made the world much better off. Concurrently, however, we have also seen the emergence of a whole range of intermediaries, whose size and appetite for risk may expand over the cycle. Not only can these intermediaries accentuate real fluctuations, they can also leave themselves exposed to certain small probability risks that their own collective behaviour makes more likely. As a result, under some conditions, economies may be more exposed to financial-sector-induced turmoil than in the past. The paper discusses the implications for monetary policy and prudential supervision. In particular, it suggests market-friendly policies that would reduce the incentive of intermediary managers to take excessive risk. [source] The Agency Costs of Overvalued Equity and the Current State of Corporate FinanceEUROPEAN FINANCIAL MANAGEMENT, Issue 4 2004Michael C. Jensen First page of article [source] Neoclassical Finance, Alternative Finance and the Closed End Fund PuzzleEUROPEAN FINANCIAL MANAGEMENT, Issue 2 2002Steven A. Ross First page of article [source] A Memory of Arnold William Sametz Former editor of the,Monograph Series in Finance and Economics, now,Financial Markets, Institutions & InstrumentsFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 4 2009Emilia Carulli Szego No abstract is available for this article. [source] Bank Mergers and Small Firm Finance: Evidence from Lender LiabilityFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2008James E. McNulty As a merger approaches, the value of repeat business for the target bank can drop sharply, so loan relationships between this bank and small businesses are often disrupted. Small firms sometimes experience serious value destruction as a consequence of this sudden lack of credit. This paper shows that lender liability may result from bank mergers and bankers involved in mergers often engage in aggressive, scorched-earth defense tactics to discourage further litigation. I summarize six lender liability cases to illustrate these points. Bank mergers have been shown to reduce credit availability in a number of studies. Since small firms depend on credit for their daily existence, owners of small firms do have a reason to fear a merger of their bank with a larger institution. Analyzing merger effects with survey data of firms obtained after a bank merger, an empirical strategy used in a number of studies, raises problems since the only firms considered are the ones that survived the bank merger. Suggesting that the problem will cure itself in the long run, an argument advanced in other studies, ignores small firms' daily dependence on credit. In the long run we are all dead. Bank examiners need to evaluate an institution's litigation experience and measure a bank's organizational architecture , its ethical climate. Banks which are repeatedly involved in lender liability lawsuits should be denied future mergers until there is a change in organizational architecture. To assist in evaluating organizational architecture, banks should be required to report their litigation expense on their call reports. Furthermore, regulators should seriously consider the recent suggestion of Carow, Kane and Narayanan (2006) that they take steps to ensure that participants in bank mergers preserve target bank relationships. Otherwise negative effects on small business lending and economic growth will continue as bank consolidation proceeds. [source] A Comparative Literature Survey of Islamic Finance and BankingFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 4 2001Tarek S. Zaher There has been large-scale growth in Islamic finance and banking in Muslim countries and around the world during the last twenty years. This growth is influenced by factors including the introduction of broad macroeconomic and structural reforms in financial systems, the liberalization of capital movements, privatization, the global integration of financial markets, and the introduction of innovative and new Islamic products. Islamic finance is now reaching new levels of sophistication. However, a complete Islamic financial system with its identifiable instruments and markets is still very much at an early stage of evolution. Many problems and challenges relating to Islamic instruments, financial markets, and regulations must be addressed and resolved. In this paper, we provide a comprehensive comparative review of the literature on the Islamic financial system. Specifically, we discuss the basic features of the Islamic finance and banking. We also introduce Islamic financial instruments in order to compare them to existing Western financial instruments and discuss the legal problems that investors in these instruments may encounter. The paper also gives a preliminary empirical assessment of the performance of Islamic banking and finance, and highlights the regulations, challenges and problems in the Islamic banking market. [source] The Politics of Social Learning: Finance, Institutions, and Pension Reform in the United States and CanadaGOVERNANCE, Issue 4 2006DANIEL BÉLANDArticle first published online: 27 OCT 200 Because the traditional concept of social learning has faced significant criticism in recent years, more analytical work is required to back the claim that the lessons drawn from existing institutional legacies can truly impact policy outcomes. Grounded in the historical institutionalist literature, this article formulates an amended concept of social learning through the analysis of the relationship between finance, social learning, and institutional legacies in the 1990s debate over the reform of earnings-related pension schemes in the United States and Canada. The article shows how social learning related to specific ideological assumptions and policy legacies in the public and the private sectors has affected policymaking processes. At the theoretical level, this contribution stresses the political construction of learning processes, which is distinct from the technocratic model featured in the traditional literature on social learning. This article also distinguishes between high- and low-profile social learning while emphasizing the impact of private policy legacies on learning processes. [source] | |||||||||||||||||||||||||||||||||||||||||||