Finance Commons^™

The Role Of Deposit Insurance In Financial Sector Stability, Umoh N. Peter

Bullion

It might be necessary to start explaining the terms involved in the above topic. A Deposit insurance Scheme (DlS) is an arrangement whereby a designated agency (usually government-owned) guarantees deposits in insured financial institutions This paper discusses the guarantee function and financial sector stability, the supervisory function and financial sector stability, the liquidation function and financial sector stability and the other contributions of Nigeria Deposit Insurance Corporation (NDIC). The study concluded that, "Financial Sector Stability: lssues and Challenges" is not only appropriate but quite timely given the rumours making the rounds about unfounded banking distress.

The Experience Of Banking Supervision In Financial Sector Surveillance., Imala O. I.

Bullion

A country's financial sector is the major channel through which funds are mobilized for borrowing and lending transactions. A poorly regulated or managed financial sector or one with insufficient capital for the risks it takes, can increase a country's vulnerability to financial crises. This paper highlights the importance of financial sector regulation and supervision, techniques of supervision, symptoms and causes of distress, measures put in place by the regulatory/supervisory authorities to guard against future systematic distress and the role of multilateral agencies. However, the study concluded that there is no doubt that good corporate governance is a major factor in …

The Experience Of Bank Examination In Financial Sector Surveillance, Oni S. A.

Bullion

The financial intermediation role of banks is very crucial to the efficiency and growth of every economy. The safety, stability and soundness of the banking system is therefore paramount to the regulatory authority of the financial system of any nation. Between 1929 and 1951. The Nigerian Banking system experienced a few banking crises due mainly to the absence of legal and regulatory framework for the operation of banking business in Nigeria. The bank examination function was established by the Central Bank of Nigeria, to monitor banks compliance with the regulatory and prudential requirements governing the conduct of banking business to …

Macroeconomics/Structural Policies And Financial Sector Stability: The Challenges, Nnanna O. J

Bullion

The financial system plays an important role in the process of economic growth and development of a country. A financial system consists of various institutions, markets, instruments and operators that interact within an economy to provide financial services. It plays the crucial roles of lubricating the payment mechanism, resource mobilisation and credit allocation. The Nigerian financial sector comprises the regulatory/supervisory authorities, deposit money banks, and other nonbank financial institutions. The objective of this paper is to examine the effect of macroeconomic/ structural policies on the financial sector, as well as the challenges of maintaining financial sector stability in Nigeria. The …

Institutional Framework For The Regulation And Supervision Of The Financial Sector, Mordi N. Charles

Bullion

Since the 1980s, there has been international consensus on the issue of adequate regulation and supervision of the financial sector (and, in particular, banking institutions) and this issue have featured prominently in many international fora where discussions have centred on the operations/health of the financial sector, whether in developed or developing countries. This paper focusses attention on the institutional framework for the regulation and supervision of the financial sector in Nigeria. It attempts to identify the various institutions that make up the financial sector and articulates how they are regulated and supervised and who has responsibility for what, so as …

Internationalisation Of Financial Services: Challenges For Financial Sector Stability In Nigeria., Adeola Ade

Bullion

Internationalisation or Globalisation refers to the increasing integration of "economics around the world, particularly through trade and financial flows. lt is the actual movement, the capacity to move and the potential movement across nations of trade, , investment, technology, finance and labour. lt's also involves the effects of these I forces and the consequent liberalization I of the market. This paper focuses on internationalisation as it relates to the financial sector in Nigeria and its most common manifestation, which is liberalization. It aims to identify ways in which we can benefit from this process while remaining realistic about its potential …

How Will 401(K) Pension Plans Affect Retirement Income?, Andrew A. Samwick, Jonathan Skinner

Dartmouth Scholarship

How has the emergence of defined contribution pensi on plans, such as 401(k) plans, affected the financial security of future retirees? We consider this question using a unique dataset of pension plan formulas for the Surveys of Consumer Finances in 1983 and 1989 and the characteristics of 401(k) plans from the Surveys of Consumer Finances between 1989 and 2001. Our simulations account for uncertainty in earnings and rates of return on stocks and bonds, ownership of company stock, uncertainty in earnings, and heterogeneity in asset choices, plan participation, and job tenure. We find that in the mid-1990s, 401(k) plans were …

The Empirical Relationship Between Exchange Rates And Interest Rates In Post-Crisis Asia, Hwee Kwan Chow, Yoonbai Kim

Research Collection School Of Economics

In post-crisis Asia, all crisis-hit countries (except Malaysia) announced a shift from exchange rate based monetary policy framework to the explicit adoption of inflation targeting that uses interest rates as the key monetary policy operating instrument. In this study, we examine the empirical relationship between exchange rates and interest rates, and investigate how the dynamics between them have changed following the crisis. This is carried out by constructing a bivariate VAR-GARCH model for each of the four Asian crisis countries, namely Indonesia, Korea, Philippines and Thailand. The findings suggest these countries do not use interest rate policy more actively to …

Transaction-Data Analysis Of Marked Durations And Their Implications For Market Microstructure, Anthony S. Tay, Christopher Ting, Yiu Kuen Tse, Mitchell Warachka

Research Collection Lee Kong Chian School Of Business

We propose an Autoregressive Conditional Marked Duration (ACMD) model for the analysis of irregularly spaced transaction data. Based on the Autoregressive Conditional Duration (ACD) model, the ACMD model assigns marks to characterize events such as tick movements and trade directions (buy/sell). Applying the ACMD model to tick movements, we study the influence of trade frequency, direction and size on price dynamics, volatility and the permanent and transitory price impacts of trade. We also apply the ACMD model to analyze trade-direction data and estimate the probability of informed trading (PIN). We find that trade frequency has a critical role in price …

Limit Orders And The Intraday Behavior Of Market Liquidity: Evidence From The Toronto Stock Exchange, Minh Vo

Faculty Working Papers

This paper examines the intraday behavior of market liquidity in an order-driven market. Along with previous studies, we show that the U-shaped intraday pattern of spread does not depend on the market architecture. We also find that bid-ask spread and market depth are two dimensions of market liquidity. Market liquidity is inversely related to price volatility. We also investigate the impacts of trading volume on market liquidity. High trading volume implies high liquidity trades and as a result, limit order traders decrease (increase) ask (bid) price and/or increase depth at each quote.

Indiana State University Financial Report 2004, Indiana State University

Financial Reports

No abstract provided.

Size Matters: Why Managers Should Pursue Corporate Growth, Even At The Expense Of Shareholder Value, John Dobson

Finance

No abstract provided.

Does The Adoption Of "Economic Value Added" Improve Corporate Performance?, Matthew Louis Bell

Inquiry: The University of Arkansas Undergraduate Research Journal

Determining how to properly measure corporate performance is one of the most important problems in contemporary corporate finance. Without a sound mechanism to evaluate managerial performance, a corporation's management has no adequate standard to be judged by. This can destroy the firm's value very quickly through poor managerial decisions. For this reason, managers need to be evaluated and compensated based on a performance measure that truly demonstrates the changes in a company's value. The interests of executives and shareholders do not always coincide, as can be seen through many of the current corporate scandals. Thus, it is almost universally argued …

Land For Maine's Future Program: Increasing The Return On A Sound Public Investment, Richard Barringer, Hugh Coxe, Jack Kartez, Catherine Reilly, Jonathan Rubin

Economics and Finance

Maine is nowhere a more special place than in the quality of its landscape and the traditions of its land use. Among the mo st privately-owned of all the states, Maine’s natural diversity and beauty combine with its traditions of resource stewardship, open access, and appreciation of nature to distinguish it in the public mind and national imagination. In recent decades, however, these traditions have come under assault from the forces of economic and social change; and the people of Maine have responded. In 1986, Governor Joseph Brennan’s Special Commission on Outdoor Recreation recognized the growing threats to Maine’s natur …

Representations Of The Philippine Stock Market And Securities Research, And Global Financial Regularization, Benjamin T. Tolosa Jr

Political Science Department Faculty Publications

While the current turmoil in global finance seems to support calls for

“transparency,” “accountability,” and “professionalization,” closer analysis reveals disjunctures in the dominant discourse on corporate governance, whose central element is the promotion of “investor confidence”

and “shareholder value.” This essay draws on the theoretical work of Pierre Bourdieu and Stuart Hall to examine how representations of the

stock market and securities research in the Philippines regularize particular interests, identities, relations, and hierarchies in the global political economy. But it also shows how these representations reveal

underlying tensions in the discourse that open up spaces for rearticulating and reordering financial …

The Capital Asset Pricing Model: Theory And Evidence, Eugene F. Fama, Kenneth R. French

Dartmouth Scholarship

The capital asset pricing model (CAPM) of William Sharpe (1964) and John Lintner (1965) marks the birth of asset pricing theory (resulting in a Nobel Prize for Sharpe in 1990). Before their breakthrough, there were no asset pricing models built from first principles about the nature of tastes and investment opportunities and with clear testable predictions about risk and return. Four decades later, the CAPM is still widely used in applications, such as estimating the cost of equity capital for firms and evaluating the performance of managed portfolios. And it is the centerpiece, indeed often the only asset pricing model …

Re-Examining Venture Capitalist Certification And Insider Selling Decisions During The 1990s., Nicholas S. Koshiw

University Avenue Undergraduate Journal of Economics

This paper addresses the validity of certification and insider selling hypotheses within the context of new issues. Comparisons of venture capital backed and non venture-backed issues with similar offering characteristics show that issuers with venture capital affiliation are more underpriced than non venture-backed IPOs and insider selling results in decreased underpricing. These results contradict the findings of previous venture capital certification studies {Barry (1990), Megginson and Weiss (1991), and Lin and Smith (1997)}, but are consistent with recent work that examines grandstanding {Lee and Wahal (2002)} and insider selling decisions during hot market periods {Ljungqvist and Wilhelm (2003)}.

How Bank Risk Profiles Affect Their Strength : An Assessment Of Banks In The Asia-Pacific Region, David E. Allen, Mahendra Chandra, Jaime Li Ping Yong

Research outputs pre 2011

This paper analyses bank relative riskiness by testing the sensitivity of Asia-Pacific banks to overall market risk, global credit risk shocks, interest rate risk shocks and maturity risk shocks. The banks’ risk profiles are categorised according to their capitalisation levels and functional degree of diversification. Our results indicate that highly capitalised banks yield higher average stock returns whilst functionally diversified banks have less volatile returns. Generally, banks that adopt capital adequacy guidelines and hold higher capital levels have greater protection from these risks. Functionally diversified banks are also more strongly positioned against system-wide shocks to the banking sector.

Ausfta And Its Implications For The Australian Stock Market, David E. Allen, Lee Kian Lim, Trent Winduss

Research outputs pre 2011

This paper investigates whether current and future domestic and United States macroeconomic variables can explain long and short run stock returns in Australia. This is undertaken with a view to examining the potential implications of the Australia-United States Free Trade Agreement (AUSFTA). America is included in the analysis as a “foreign influence”. In the recent past it has been Australia’s second largest trading partner after Japan. The long run relationship tested in this study is based on the present value model of stock prices, which is tested using a range of cointegration and causality tests. These include the Johansen ML …

Stock Market Talk, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A., PhD. (2004, January 1). Keynes’ own rates of interest citing Panico (1988) [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). U.S.: Relative gold price of producer goods (WPI/gold price) [Graph]. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). Real ratio [Graph with note citing Mankiw]. Unpublished manuscript.

• Definition of bond. (2004, October 17). Printout from WordIQ. Unpublished manuscript.

• Shaikh, A., PhD. (1997, August 25). Predicting stock prices [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). Rates of return: Stock market & corporate business [Graphs]. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). Real profits [Graph]. Unpublished manuscript.

• Shaikh, …

  ---

  Go to article

Folder On Inflation, Part 4, Money Prices Of Gold, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2003, October 30). Note on money & inflation & gold prices [Handwritten notes by Anwar Shaikh, PhD].
• U.S. Global Investors. (2004, February 23). A study on the benefits of gold equities as an asset class for portfolio diversification [Selected online presentation slides].

Short Interests In Real Estate Investment Trusts, Deqing Diane Li, Kenneth Yung

Finance Faculty Publications

We examine short interests in equity real estate investment trusts (REITs) between 1994 and 2001. Our results show that only high levels (the 90th percentile) of short interest are associated with significant negative REIT returns as the bearish content of short interest may have been mitigated by the favorable risk characteristics of real estate securities. In addition, the significant negative relationship between short interest and REIT returns applies only to REITs with poor performance. The result implies that the bearish sentiment of short interest could aslo be mitigated by good REIT managers in a real estate market that is informationally …

Market Segmentation And Information Values Of Earnings Announcements: Some Empirical Evidence From An Event Study On The Chinese Stock Market, Y. Gao, Yiu Kuen Tse

Research Collection School Of Economics

This paper investigates the trading activities of two distinct classes of shareholders, namely, the Chinese domestic investors and the foreign investors in the segmented Chinese A- and B-share markets, respectively. We conduct an event study on the annual earnings announcements based on two different accounting standards: International accounting standards (IAS) and PRC generally accepted accounting principles (PRC GAAP). The earnings announcements based on IAS and PRC GAAP are value relevant. The investors in the B-share market react to both the IAS and PRC GAAP earnings announcements, while the investors in the A-share market pay more attention to the PRC GAAP …

The Structuralist Perspective On Real Exchange Rate, Share Price Level And Employment Path: What Room Is Left For Money?, Edmund S. Phelps, Hian Teck Hoon, Gylfi Zoega

Research Collection School Of Economics

The current sluggish performance of the US economy follows one of the more remarkable booms in modern history. The late 1990s was a period of simultaneous output and productivity growth,1 low unemployment and stable inflation, culminating in an unemployment rate of only 3.9% in the fourth quarter of the year 2000. The absence of rising inflation during this period came as a surprise to many since the level of the natural rate of unemployment was commonly estimated to be in the range of 5-6% by the mid 1990s. The non-inflationary boom, however, reminds one of another episode where non-monetary forces …