Financial Economics, Asset and Investment valuation,financial derivatives,international finance, bankinh and finance

Altri profili del contenzioso in materia di contratti derivati

by Valerio Sangiovanni

Published in "I contratti derivati", a cura di V. Cuffaro, Allegato al fasc. n. 6 del 2012 di Corriere del merito

Conclusione di contratti derivati e responsabilità degli amministratori

by Valerio Sangiovanni

Published in "Le Società", 2010, 26 - 37

Assessing the impact of prompt corrective action on bank capital and risk

by Raj Aggarwal

Capital structure differences among large Asian companies

by Raj Aggarwal

The Food Crises: A quantitative model of food prices including speculators and ethanol conversion

by Marco Lagi

Analysis of Stock Screening Principles in Islamic Mutual Funds Industry

by Salman Ahmed Shaikh

According to Islamic principles for investments in stocks, market price per share should be greater than net liquid... more According to Islamic principles for investments in stocks, market price per share should be greater than net liquid assets per share. It may suggest that this principle restricts investments in the stock of liquid companies. Creditors prefer a favorable Current and Quick ratio but shareholders are not exactly happy when the company has immense liquidity. Excess liquidity implies the company has excess funds, but it has not invested them in its operations fully. There is a trade-off between profitability and liquidity companies have to make. Cash equivalents and marketable securities usually yield a return that is negative in real terms in most developing countries. The interests of creditors are managed by another principle that if a company has financed a portion of its assets with interest bearing debt; then, the interest bearing debt should not be more than 40%. Debt financing is a double-edge sword. Leveraged companies can magnify their returns in booms, but in slumps, they lose the edge and can even go bankrupt and make both their shareholders and creditors suffer. Debt financing results in a zero-sum game in which at least one stakeholder i.e. shareholders or creditors suffer. Equity financing ensures normal returns in booms and survival in slumps. Therefore, the company will not be squeezed of liquidity as interest expense as an ‘autonomous expense’ will not feature as a significant portion of total operating expenses.

A COMPARATIVE STUDY OF DOLLAR COST AVERAGING VS. VALUE AVERAGING

by Pawel Stefan Benedykcinski

AUTHOR: PAWEL STEFAN BENEDYKCINSKI and ADVISOR: St. Olaf College ECONOMICS PROF. RICHARD GOEDDE

A COMPARATIVE STUDY OF DOLLAR COST AVERAGING VS. VALUE AVERAGING
Pawel S. Benedykcinski and Prof. Rick Goedde... more A COMPARATIVE STUDY OF DOLLAR COST AVERAGING VS. VALUE AVERAGING
Pawel S. Benedykcinski and Prof. Rick Goedde (Advisor)
Economics Department
St. Olaf College
Northfield, MN

My research compares three investment techniques, fixed and variable dollar cost averaging and value averaging to determine if any of the methods yield superior investment returns in the long run. Mutual funds, stocks, and exchange-traded funds were used to test the methods. Value averaging is a formula-based investment technique using a mathematical formula to guide the investment of money into a portfolio over time. With this method investors contribute to their portfolios in such a way that the portfolio balance increases by a set amount, regardless of market fluctuations. Dollar cost averaging invests equal amounts regularly and periodically over specific time periods in a particular investment or portfolio. By doing so more shares are purchased when prices are low, and fewer shares are purchased when prices are high.

After testing many mutual funds, ETFs, and individual stocks, I concluded that Value Averaging yields better Internal Rates of Return than fixed and variable Dollar Cost Averaging. The results also indicate that the three methods provide superior investment returns over extended investment time periods with little increase in risk, even if prices are volatile. One important difference between these three formula investment techniques is that value averaging requires larger sums of money to be invested at regular time intervals than fixed or variable dollar cost averaging do.

Foreign Direct Investment in the Arab World: an Analysis of Flows and an Evaluation of Country Specific Business Environment

by Abed El-azez Safi

This is my Master's Thesis of Master in International Management (MIM) at University of Trento, Italy

Safi, A. Zamrian, M. “Foreign Direct Investment in the Arab world: an Analysis of Flows and an Evaluation of Country Specific Business Environment” Published in "University of Trento: Italy." March 2012.

Currently, Foreign Direct Investments (FDIs) are considered to be one of the most attractive tools of international... more Currently, Foreign Direct Investments (FDIs) are considered to be one of the most attractive tools of international business for large investments in foreign countries. International business is transforming the world in a way that has not been possible in previous years. On the other hand, FDI is growing faster than international production within the framework of international trade. This makes it possible for FDI to become a major instrument of spreading wealth. Global FDI flows rose to $1.24 trillion in 2010, but were still 15% below their pre-crisis average. This is in contrast to global industrial output and trade, which were back to pre-crisis levels. The UNCTAD estimates that global FDI will regain its pre-crisis level in 2011, increasing $1.4–1.6 trillion, and approaching its 2007 peak in 2013. This positive scenario holds, barring any unexpected global economic shocks that may arise from a number of risk factors still in play. Concerning the Arab world for the last two decades the FDI has been grown very fast regarding to the new policy. The political instability discourages investors to pay attention to risky spot. Arab world FDI and stocks is concentrated in few countries and sectors, for instance about 80% of the FDI in 2010 is concentrated in six countries: Saudi Arabia 42%, Egypt 10%, Qatar 8%, Lebanon 7%, United Arab Emirates 6% and Libyan Arab Jamahiriya 6%. The business environment and the economic performance of the Arab World still improving and the new policy and regulation that have been implemented in the Arab countries increased the attractiveness level of the FDI toward Arab countries. Despite the low rank of WGI in Arab World and the correlation of investment in some of the six indicators between countries in the Arab world especially in the highest receiver of FDI flows and in particular the GCC region the Business Doing reported great rank in regards to the proper business atmosphere for foreign investors. The six of the Arab countries Saudi Arabia, UAE, Qatar, Bahrain, Tunisia and Oman have climbed the scale on the ease of doing business ranked among the top 50 out of 183 countries, while Algeria, Comoros Mauritania, Iraq and Djibouti ranked very low on the same scale. The new policy and modification, which has been confirmed from World Bank by the Doing Business reports about the business environment of Arab World, show that their domestic laws in these countries pay attention to foreign companies to increase the investment in Arab world.

Financialization and its Consequences: the OECD Experience

by Jacob Assa

Published in the journal Finance Research, Vol. 1, No. 1, January 2012

This paper examines the incidence and consequences
of financialization in the industrialized countries of the... more This paper examines the incidence and consequences
of financialization in the industrialized countries of the
Organization for Economic Cooperation and Development
(OECD). Using the latest panel data from the OECD and the
ILO, the paper first documents the extent of financialization in
OECD countries and then analyzes the relationships between
financialization and three other variables: inequality, growth and
unemployment. There is strong empirical evidence for
considerable financialization across the OECD, with significant
and negative impacts on all three variables.

International financial integration of South-Mediterranean economies - A bird's-eye view

by Marga Peeters

co-authored with Nidal R. Sabri

Should South-Mediterranean economies continue their financial integration in the world economy, considering their... more Should South-Mediterranean economies continue their financial integration in the world economy, considering their current stance and in view of the experiences of developed economies with the global financial crisis? The economies of the North-African rim, that is Morocco, Algeria, Tunisia, Libya and Egypt have become more exposed to the global economy during the decades 1990s and 2000s. The same holds to some extent for the Middle Eastern economies Palestine and Syria, while Jordan and Lebanon have become very open economies.In light of the unprecedented developments in the financial sectors of developed economies in the years 2008-2009 and in view of the current political Arab upheaval, this paper reviews the pros and cons of financial integration. It analyses financial integration indicators, as well as financial stability, and compares the South-Mediterranean region with other regions worldwide.

401k Manifesto™ – The New Standard

by Neil Plein

The magnum opus. A must read.

The 401k Manifesto calls for a revolution in the retirement industry, the core of which is an entirely new structure... more The 401k Manifesto calls for a revolution in the retirement industry, the core of which is an entirely new structure designed around exclusively offering Exchange Traded Funds as investment options. This presents the only truly viable way to enact the type of technological change participants urgently need to build higher average retirement balances on a macro scale.

A new rebalancing methodology to reduce risk and increase dollar cost averaging in defined contribution plans

by Neil Plein

PDF Version.

This study was conducted over a 3 year period to determine whether or not the frequency of portfolio rebalancing in... more This study was conducted over a 3 year period to determine whether or not the frequency of portfolio rebalancing in defined contribution plans had an effect on risk mitigation. A professionally constructed model portfolio designed to exist on the efficient frontier was used and It was hypothesized that that the higher the frequency of rebalancing the greater the degree of risk mitigation.

As methods of rebalancing have two primary components, cash flow management (plan contributions) and rebalance frequency; the traditional methods studied use plan contributions as being passively invested based on an originally designed asset allocation, followed by rebalancing (highest to lowest) at either quarterly, semi-annual or annual intervals.

These three methods were compared to a fourth method, that of the Self Aligning Portfolios™ methodology (U.S. Pat. 8,060,428) developed by Invest n Retire® (INR); which uses cash flows at each payroll period to bring a portfolio either wholly or partially back into balance followed by a quarterly rebalance as necessary. This method served as the highest frequency rebalancing method considered.

The data strongly supported the hypothesis, that the higher the rebalancing frequency, the higher the degree of risk mitigation (evidenced through higher returns and fewer losses when compared to traditional passive cash flow management and reduced rebalancing frequencies).

Furthermore, at the conclusion of the study, the Self Aligning Portfolios™ had generated larger asset positions than comparative methods; the result of utilizing cash flows at each contribution period to purchase more shares of underweighted positions and either few or no shares in over weighted positions.

The London 2012 Olympic Games Announcement Effect on London Stock Exchange

by Dimitris Kenourgios

D. Asteriou, A. Samitas and D. Kenourgios, “The London 2012 Olympic Games Announcement Effect on London Stock Exchange”, Journal of Economic Studies, forthcoming.

This paper investigates the reaction of the London Stock Exchange to the announcement of the city hosting 2012 Summer... more This paper investigates the reaction of the London Stock Exchange to the announcement of the city hosting 2012 Summer Olympic Games. The expectations of the Olympic Games, are the anticipation of massive economic boosts to the host cities. These expectations are presumed to be translated into positive stock price returns. This research examines the London Stock Exchange industrial indices reactions to this announcement in July 2005. In order to evaluate the returns we employ regressions with GARCH and TARCH models that contain the appropriate dummy variables together with Event Study Analysis. The empirical results suggest an overall positive impact of the announcement on the London Stock Exchange, something that is consistent with previous studies in the topic. However, this result is not consistent for all indices while there were some negative effects as well. This can be explained by the fact that soon after the announcement a terrorist attack took place in London that may have affected reversely the general positive feeling in the Stock Market.

The Brain Drain: Implications for Regional Economic Integration in the Expanding European Union.

by Matthew Jelavic

Jelavic, M. (2012). The brain drain: Implications for regional economic integration in the expanding European Union. In B. Chapalet, & M. Le Berre (Eds.), Producing New Knowledge on Innovation Management. Presses Universitaires de Grenoble, 99 – 111.

This paper provides a review and conceptual analysis of issues surrounding regional economic integration and the... more This paper provides a review and conceptual analysis of issues surrounding regional economic integration and the potential for inter-country brain drain within the expanding European Union (EU). As the EU expands eastward, it absorbs millions of highly skilled knowledge workers and opens opportunities for western European organisations to capitalise on this workforce. The migration of these skilled workers is a macro-exercise in eastern European knowledge management, and could have far-reaching implications at the regional, industry and organisational levels. This paper explores the context and implications of knowledge worker movement across fading borders.

A falha na articulação entre real e financeiro na economia brasileira: reflexões sobre o impacto nas firmas, competitividade e desenvolvimento tecnológico

by Elson Rodrigo Souza Santos

Co-authored Armando Dalla Costa
Preliminary and incomplete version

This work explores the relationship between the economy and financial in the Brazil. We start from the assumption that... more This work explores the relationship between the economy and financial in the Brazil. We start from the assumption that the fault is identified in the high degree of difficulty in self-financing and financing of new, small and medium firms have access to channels to obtain funds for investment. The findings suggest that the fault lies in not finding a financial structure that fits with national peculiarities and industrial policy, contributing to low competitiveness and technological development of Brazilian industry. However, throughout the 2000s, there is evidence of the construction of a new institutional arrangement through the strengthening of public credit and the cash flows, benefit from the use of financial products and own resources for financing investment projects. In parallel, indicating that large firms solved the financing problem, but the arrangement needs to be improved, be better integrated with industrial policy and reduce the financial repression of other firms.

Crise europeia, uniões monetárias e lições para Brasil

by Elson Rodrigo Souza Santos

Preliminary and incomplete version. Will be improved

In the early 2000s, the euro was rising a milestone in the consolidation of the European Union (EU) toward increased... more In the early 2000s, the euro was rising a milestone in the consolidation of the European Union (EU) toward increased integration. In alongside, the euro emerged as a potential competitor for the dollar as reserve currency in international arena. After a decade the economic and institutional problems were not solved, revealing weaknesses in the architecture of the EU and eurozone with American Crisis of 2008. However, even then, in Brazil are frequent official statements as President Lula about the importance of single money for the countries of South America on promote of regional integration. What’s looks like a political rhetoric than a realistic strategy towards integration.

Sistema financeiro e desenvolvimento: uma discussão teórica sobre bank-based, market-based e abordagem funcional

by Elson Rodrigo Souza Santos

Preliminary and incomplete version

Over time several authors have discussed how best to organize the financial system to promote growth of... more
Over time several authors have discussed how best to organize the financial system to promote growth of long-term cover and support the changes arising from development. The recurring debate about the structures and theoretical defenses of the bank-based system (based on financial intermediaries) and market-based (direct relationship between savers and borrowers of funds). More recently, the functional approach was added as a central point that puts the capacity of the financial system to support the productive sector and moving to the background structure. In this paper seek to present the theoretical aspects of these three visions highlighting the differences in the defense and criticism, but also seeking to compare the concentrations in common and how they can see the same problem through different perspectives.

Indústria Bancária Brasileira: evidência da formação de instituições financeiras multinacionais

by Elson Rodrigo Souza Santos

Preliminary and incomplete version. Co-authored: Armando Dalla Costa

In this work, the objective is to characterize the process of internationalization and the formation of multinational... more In this work, the objective is to characterize the process of internationalization and the formation of multinational bank in Brazil. For this identify if the banking industry prosperous create conditions such that the financial conglomerate and leading institutions and the first steps towards internationalize. Then discuss the incentives and inhibitors factors of the movement and international expansion. The results indicate that Bank of Brazil, Itaú/Unibanco and Bradesco as leaders. The incentives factors are identified as solid institutional, restructuring of the 1990s that gave strength for national banks, and great brazilian economy with strong domestic market. Inhibitors as the threat posed uncertain and instability emerged as the financial crisis of 2007 that does not have a predictable unfolding.

Refining the Business Case for Sustainable Energy Projects Using Palisade @RISK and PrecisionTree: A Biofuel Plant Case Study (PRESENTATION) - SARK7

by Scott Mongeau

Presented at 2011 Palisade Europe Risk Conference in Amsterdam
Refining the Business Case for
Sustainable Energy Projects Using
Palisade @RISK and PrecisionTree:
A Biofuel Plant Case Study

Overview
1. Profitable sustainable energy projects
2. Palisade as facilitating tool
3. Biofuel project... more Overview
1. Profitable sustainable energy projects
2. Palisade as facilitating tool
3. Biofuel project as example

• Examples using Palisade Decision Suite

• Economic phenomenon
– Drive to marginal optimality
– Perverse incentives
– ‘The tragedy of the commons’ and free-riders
• Sustainability project characteristics
– Marginally profitable
– Highly sensitive
– Requires systemic engineering / optimization
• Coordinated management of systemic complexity
– Core NPV variance analysis
– Profitable systemic market scenarios
• Leadership gap:
– Transcend politics and sentiment
– Need for market-based solutions

Investors Prospectus in Philippine Mining

by Historically Digitized