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The Efficiency-Enhancing Effects of Non
The Efficiency-Enhancing Effects of Non

Stronger Risk Controls, Lower Risk: Evidence from US Bank Holding
Stronger Risk Controls, Lower Risk: Evidence from US Bank Holding

... internal risk controls. If strong internal risk controls cause the BHC to forgo profitable but risky activities like asset management or derivatives trading, then it is possible that the stock market penalizes BHCs with high RMI. On the other hand, if strong risk controls can help a BHC avoid taking ...
Effect of Dividend Policies on Firm Value
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... The dividend irrelevance theory by Miller and Modigliani (1961)[18] is based on the premise that a firms dividend policy is independent of the value of the share price and that the dividend decision is a passive residual. They are of the view that the value of the firm is determined by its investmen ...
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... decreases with the cost of default, and the equilibrium default probability is strictly positive for (almost) all funds. Funds trade off expected costs of default for the expected gains of outperforming competitors by taking more risk. The fund with the highest default cost anticipates that in equil ...
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... The impact of working capital and liquidity on the profitability of Tata Motors during the period of 2002-2010 was presented by Raheja, Bhardwaj, and Priyanka (2012) who used Karl Pearson’s correlation, T-test, regression, rank correlation, average, and standard deviation to analyze the variables. T ...
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Business Relationships, Corporate Governance, and Firm

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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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