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Financial Flexibility and the Cost of External Finance for U.S. Bank
Financial Flexibility and the Cost of External Finance for U.S. Bank

... markets suggests that the effect would be even larger if we included firms with access to only a single market in our tests. Our results also have important implications for regulators. Froot, Scharfstein, and Stein (1993) show that in a world with costly external financing, hedging is beneficial wh ...
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... financial markets, and consumers: ƒƒ Decreased industry profitability and financial flexibility may result from higher capital and liquidity requirements as well as increased regulatory costs for large banks and large nonbank firms designated by the Council as requiring “more stringent” prudential s ...
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... derivatives. His derivatives experience includes a five-month secondment to the law department of a major Canadian bank advising on equity derivatives transactions. He is currently actively engaged in advising market participants on Canadian derivatives regulatory developments related to trade repor ...
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... Conflictive and ambiguous gambles were valued less than expected-utility-equivalent risky gambles, but relative valuation favoured conflictive over ambiguous gambles. This latter finding conflicts with Smithson (1999) and Cabantous (2007) and is difficult to explain. Response mode (forced choice ver ...
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... market predictions and name the hottest stocks. But is this the best way? The debate remains: Does implementing an active or a passive approach yield more lucrative long-term returns? Today, societal pressure calls us to act now, do not just stand by, make things happen. These catch phrases penetrat ...
Costly Financial Intermediation in Neoclassical Growth Theory
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... the imminent offering. These road shows serve two purposes. First, they generate interest among potential investors and provide information about the offering. Second, they provide information to the issuing firm and its underwriters about the price at which they will be able to market the securitie ...
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... terms of firm size, risk, and financing needs. Thus the demand of the real economy for financial services at some development stages can be systemically different from that of the same economy at other stages. Only when the characteristics of financial structure match those of the industrial structu ...
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Monetization in Low- and Middle-Income Countries
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... A large body of literature concerning the analysis of the demand for money also provides guidance as to the potential macroeconomic factors affecting monetization (Bordo and Jonung, 1989; Arize, 1994; Henstridge, 1999; Sriram, 2001). In a portfolio investment framework, higher returns on real assets ...
Financial Ratio Analysis
Financial Ratio Analysis

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Chapter Three

... (and expected) rate of return, the only way the investor will earn less than the coupon rate in a given year is if they have a capital loss to offset the extra 2% interest they are earning. This tells us that when the coupon rate is above the rrr the bond is selling at a premium to par and that this ...
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Financial economics

Financial economics is the branch of economics characterized by a ""concentration on monetary activities"", in which ""money of one type or another is likely to appear on both sides of a trade"". Its concern is thus the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing (or ""investment theory"") and corporate finance; the first being the perspective of providers of capital and the second of users of capital.The subject is concerned with ""the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment"". It therefore centers on decision making under uncertainty in the context of the financial markets, and the resultant economic and financial models and principles, and is concerned with deriving testable or policy implications from acceptable assumptions. It is built on the foundations of microeconomics and decision theory.Financial econometrics is the branch of financial economics that uses econometric techniques to parameterise these relationships. Mathematical finance is related in that it will derive and extend the mathematical or numerical models suggested by financial economics. Note though that the emphasis there is mathematical consistency, as opposed to compatibility with economic theory.Financial economics is usually taught at the postgraduate level; see Master of Financial Economics. Recently, specialist undergraduate degrees are offered in the discipline.Note that this article provides an overview and survey of the field: for derivations and more technical discussion, see the specific articles linked.
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