Business Commons^™

An Approach To Estimating Market Value And Duration Of Interest-Sensitive Whole Life Contracts, Thomas J. Merfeld

Journal of Actuarial Practice (1993-2006)

A fixed premium interest·sensitive whole life contract is analyzed in order to estimate its market value. In addition, using various definitions of duration, we determine the duration of the contract for each definition. The results of this analysis have implications for market value accounting of life insurance liabilities and for life company portfolio management.

Nonmedical Limits In Individual Life Insurance, James B. Ross, Shalini E. Perumpral

Journal of Actuarial Practice (1993-2006)

This paper shows data that illustrate the substantial variation among nonmedical schedules and the dramatic increase in their amount limits from 1972 through 1992. Coefficients of variation are analyzed for several data subsets. We find that the variation of schedules in the sample of all firms has increased throughout the 1972-1992 period for issue ages up to 30, but has declined for issue ages beyond 30 during the 1982-1992 period. For the non-New York and stock companies our statistical tests indicate an increase in the variability of schedules over the full period 1972 to 1992.

Pb1554 Ye$ Youth Entrepreneurship, The University Of Tennessee Agricultural Extension Service

Financial Management

The YE$ curriculum has been designed for use in three ways to strengthen 4-H programming. Extension agents may use the curriculum to:

• Teach lessons in the classroom as a visiting educator or co-teach with the classroom teacher.

• Conduct workshops for educators who would like to have a copy of the curriculum and teach the materials themselves.

• Train volunteer leaders to conduct entrepreneurial activities with members enrolled in 4-H projects. The YE$ curriculum is designed as an enrichment activity to be integrated with or to supplement existing projects.

The YE$ program has been developed to support selected TCAP …

Effect Of Regulation On Banking: California 1879-1929, Lynne Doti, Richard Runyon

Economics Faculty Articles and Research

California had a virtually unregulated banking environment until the first comprehensive banking regulations were passed in 1905. These regulations, and subsequent changes in 1909, required reserves and paid-up capital. Several tests of commonly accepted measures of safety, such as bank reserves, paid-up capital, bank failures, and real estate loans that resulted in foreclosure, are compared for selected years before and after the regulations. Results do not clearly demonstrate that regulation enhanced the safety of individual banks, but do support the conclusion that regulation enhanced the safety of the banking system as a whole.

Municipal Securities Market: Same Problems -- No Solutions, Ann Judith Gellis

Articles by Maurer Faculty

This article examines the existing regulations of the municipal securities market, focusing on what activities prompted the regulatory changes and analyzing the direction and efficacy of these regulations in terms of the deficiencies in the market. Part One gives a background sketch of the market and its participants from the time of the New York City fiscal crises to today. Part Two discusses whether the existing regulation is sufficient to produce disclosure, focusing on the Orange County crises. Part Three offers a critique of the current regulatory scheme and makes some suggestions for reform.

The Effect Of Portfolio Asset Size On The Performance Of Australian Superannuation Fund Managers, M. Mccrae

Faculty of Business - Accounting & Finance Working Papers

Overseas studies suggest a correlation between the performance of mutual fund managers and the size of funds under control, with small funds outperforming large funds. This study extends the analysis to Australian superannuation fund managers where industry structure, purpose, asset base and investment strategies are considerably different. It investigates the potential effect of portfolio asset size on quarterly excess and risk adjusted returns and systematic risk profiles from 1977 to 1993. Although overall performance has weakly improved since the 1970's, the results contradict overseas evidence. After allowing for survivorship bias and extreme outliers, variations in asset size are not related …

An Analysis Of International Inter-Bank Settlement Problems And Responses, G. Hartono, G. Gniewosz

Faculty of Business - Accounting & Finance Working Papers

Timely and adequate settlement of international inter-bank payments has always been a major concern for the banking industry. However the 1974 failure of Herstatt Bank, and the disruption which hit the financial markets, ushered in an era of heightened concern about the potential vulnerability of the international settlement systems. The purpose of this paper is to analyse the encountered settlement problems and attempted solutions. Nowhere are these efforts more apparent then in the European attempt to create a single financial market. One of the more interesting developments in this evolution towards regional and global payment markets has been the push …

On The Information Content Of Calls Of Convertible Securities, Anthony K. Byrd, William T. Moore

Faculty Publications

Negative stock price reactions to conversion-forcing calls of convertible bonds and preferred stocks are reexamined, and most of the sample firms are shown to exhibit full price recovery by the end of the conversion period. In addition, analysts' earnings forecasts, both short-term and long-term, are found to be revised upward following call announcements for convertible bonds and preferred stocks. The combined findings cast doubt on the established belief that such capital structure decisions signal negative information about firm value.