NBER WORKING PAPER SERIES Stephen G. Cecchetti
... Asset price bubbles distort decisions throughout the economy and are a source of instability. Wealth effects cause consumption to expand rapidly and then collapse. Increases in equity prices make it easier for firms to finance new projects, causing investment to boom and then bust. The collateral us ...
... Asset price bubbles distort decisions throughout the economy and are a source of instability. Wealth effects cause consumption to expand rapidly and then collapse. Increases in equity prices make it easier for firms to finance new projects, causing investment to boom and then bust. The collateral us ...
NBER WORKING PAPER SERIES Urban Jermann Vincenzo Quadrini
... value of firms quoted in Nasdaq and venture capital investment is not surprising, it is worth to be emphasized because it shows the close connection between the value that the market attributes to investment projects and the volume of funds injected in those projects. At the beginning of 2000, the s ...
... value of firms quoted in Nasdaq and venture capital investment is not surprising, it is worth to be emphasized because it shows the close connection between the value that the market attributes to investment projects and the volume of funds injected in those projects. At the beginning of 2000, the s ...
Toews
... assets, but were achieved by means of retroactive application of a backtested model that was designed with the benefit of hindsight. The performance results are hypothetical and should not be considered indicative of the skill of the adviser. Material market or economic factors have not been conside ...
... assets, but were achieved by means of retroactive application of a backtested model that was designed with the benefit of hindsight. The performance results are hypothetical and should not be considered indicative of the skill of the adviser. Material market or economic factors have not been conside ...
Private Placements of Public Equity in China
... This is consistent with the “certification effect” that informed investors agreeing to purchase a large block of stock via private placements is like putting their stamp of approval on the market’s valuation of the firm. Several studies confirm the positive short-term market reaction to the PEP anno ...
... This is consistent with the “certification effect” that informed investors agreeing to purchase a large block of stock via private placements is like putting their stamp of approval on the market’s valuation of the firm. Several studies confirm the positive short-term market reaction to the PEP anno ...
r~ erivatives" has become a code word for anything financial... )bites you when you least expect it. Everyone has read...
... Deposit that would pay a guaranteed miniraum rate, but if the S&P 500 increased over a certain level, the interest rate would be tied to that increase; Buy a Guaranteed Investment Contract with the same linkage from a life insurance company; Enter into an equity swap where one would pay a floating i ...
... Deposit that would pay a guaranteed miniraum rate, but if the S&P 500 increased over a certain level, the interest rate would be tied to that increase; Buy a Guaranteed Investment Contract with the same linkage from a life insurance company; Enter into an equity swap where one would pay a floating i ...
Chapter 10
... What procedures are used to determine the risk-adjusted cost of capital for a particular project or division? Subjective adjustments to the firm’s composite WACC. Attempt to estimate what the cost of capital would be if the project/division were a stand-alone firm. This requires estimating the pro ...
... What procedures are used to determine the risk-adjusted cost of capital for a particular project or division? Subjective adjustments to the firm’s composite WACC. Attempt to estimate what the cost of capital would be if the project/division were a stand-alone firm. This requires estimating the pro ...
From big to great: The world`s leading institutional investors forge
... with the exception of a long-term trend among many institutions to shift an increasing portion of their portfolios to illiquid assets. Indeed, for most pension and SWF boards, the review of assetallocation decisions has been more or less a rubber-stamping exercise. Instead of working on the SAA, man ...
... with the exception of a long-term trend among many institutions to shift an increasing portion of their portfolios to illiquid assets. Indeed, for most pension and SWF boards, the review of assetallocation decisions has been more or less a rubber-stamping exercise. Instead of working on the SAA, man ...
Case 8: (PNC) Operating Leverage, Financial Leverage
... better off just issuing equity. Debt issuance such as bonds require periodic interest payments. Negative net income figures may not be able to pay these payments off as they come due. The Hamada Equation analyzes a firm’s costs of capital as it uses additional financial leverage, and how that relate ...
... better off just issuing equity. Debt issuance such as bonds require periodic interest payments. Negative net income figures may not be able to pay these payments off as they come due. The Hamada Equation analyzes a firm’s costs of capital as it uses additional financial leverage, and how that relate ...
Option value-improving resource allocation efficiency
... With these two characteristics in mind, Weisbrod considered Friedman's example of a national park where it is easy to charge a fee, the park is privately owned, the firm can price discriminate, the good is not storable and there are no external economies. If total cost exceeds total revenue, then it ...
... With these two characteristics in mind, Weisbrod considered Friedman's example of a national park where it is easy to charge a fee, the park is privately owned, the firm can price discriminate, the good is not storable and there are no external economies. If total cost exceeds total revenue, then it ...
ch1 -
... • With overvalued equity, stock price signals are faulty and cannot be relied upon as indicators of long term value of the firm. Trying to do so when those signals are wrong must lead to suboptimal decisions for long term shareholder wealth. Several firms enlisted their professional consultants in ...
... • With overvalued equity, stock price signals are faulty and cannot be relied upon as indicators of long term value of the firm. Trying to do so when those signals are wrong must lead to suboptimal decisions for long term shareholder wealth. Several firms enlisted their professional consultants in ...
NBER WORKING PAPER SERIES JUNIOR IS RICH: BEQUESTS AS CONSUMPTION George Constantinides
... precludes distinguishing between them.1 We model the elderly as being motivated by a well defined “joy of giving”. There are two primary motivations for this study: 1. Over the next thirty years the “baby-boom” generation will grant to its heirs many trillions of dollars of economic property, includ ...
... precludes distinguishing between them.1 We model the elderly as being motivated by a well defined “joy of giving”. There are two primary motivations for this study: 1. Over the next thirty years the “baby-boom” generation will grant to its heirs many trillions of dollars of economic property, includ ...
Regulation af Debt and Equity
... either diminish or increase the total risk posed by uncertain investments to the economy. Because of agency costs, externalities, and competitive pressures, financial transactions may impose unacceptable risks on the economy without offering adequate compensation. Accordingly, the regulation of secu ...
... either diminish or increase the total risk posed by uncertain investments to the economy. Because of agency costs, externalities, and competitive pressures, financial transactions may impose unacceptable risks on the economy without offering adequate compensation. Accordingly, the regulation of secu ...
Use SWIFT solutions to reduce your liquidity risk
... – “SWIFT for Payment Market Infrastructures: Efficient support to successfullyrenew payment clearing and settlement systems – Wed 27 Oct, 14 pm – “Transforming Collateral Management: How bi-lateral and tri-party messages can mitigate counterparty and credit risk” – Thur 28 Oct, 11 am PowerPoint Tool ...
... – “SWIFT for Payment Market Infrastructures: Efficient support to successfullyrenew payment clearing and settlement systems – Wed 27 Oct, 14 pm – “Transforming Collateral Management: How bi-lateral and tri-party messages can mitigate counterparty and credit risk” – Thur 28 Oct, 11 am PowerPoint Tool ...
Dividend Policy
... Stock prices increase significantly around dividend increase announcements. Management is signaling to the market that earnings will be sustainable at a higher level thus allowing the company to maintain a higher dividend level The opposite is true for dividend decreases Signals are most eff ...
... Stock prices increase significantly around dividend increase announcements. Management is signaling to the market that earnings will be sustainable at a higher level thus allowing the company to maintain a higher dividend level The opposite is true for dividend decreases Signals are most eff ...
Estimating the country risk premium in emerging markets: the case
... Estimation of the cost of capital investment in a developed market is different than it is in emerging markets. As Estrada (2001) notes – defining the risk, determining the factors that influence the return on equity is complicated enough in developed countries but much more difficult in emerging mark ...
... Estimation of the cost of capital investment in a developed market is different than it is in emerging markets. As Estrada (2001) notes – defining the risk, determining the factors that influence the return on equity is complicated enough in developed countries but much more difficult in emerging mark ...
Chapter 1 Handbook requirements for service
... This special guide is for service companies. Its purpose is to help service companies find their way around the Handbook by setting out which parts of it apply to them. ...
... This special guide is for service companies. Its purpose is to help service companies find their way around the Handbook by setting out which parts of it apply to them. ...