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Big data means different things to different people. In the context of forecasting, the savvy decision-maker needs to find ways to derive value from big data. Data mining for forecasting [...]

Abstract Producers in the financial services industry have recently included a greater percentage of women in this traditionally male dominated business. The focus of this study is an examination of [...]

Comparative law and finance quantifies differences in the laws governing the business enterprise in various countries. The resulting data can be used to test which legal institutions (if any) matter for financial development. Until recently only cross-sectional data were available. We report the results of a new approach to coding which has produced longitudinal data sets on shareholder, creditor, and worker protection. (JEL: G 30, G 38, K 22, K 31, N 20, N 40, O 16, P 50)

LPL Financial communities of practice approach focuses on communicating its functional expertise and core message to customers and preserving procedures and policies with recently-hire employees. This has created LPL's practice centers for business input and execution that helped the company through the 2008-09 financial crisis.

CASE DESCRIPTION The primary subject matter of this case is Economic Theory. This case is a study of Advisors Unlimited, a small financial services business started by two entrepreneurs and [...]

CASE DESCRIPTION The primary subject matter of this case concerns receivables management. Secondary issues examined include the impact of a client's financial distress on a firm's cashflows; the use financial [...]

The article compares and contrasts the 2008 global economic crisis with other recessions and depressions of the past, from the less dramatic crisis of the 1870s to the Great Depression. The current recession confirms that the US dollar is key to the global economy; several possible outcome scenarios are presented.

We suggest a new approach to calculating a project's net present value, termed the displaced equity method. Based on a straightforward formula, it analyzes a project partially financed with debt from the perspective that every year the amount of outstanding debt displaces an equivalent amount of equity that otherwise would be tied up in the project. Although they represent distinct shareholders' perspectives, the displaced equity method and the equity residual method yield identical net present values and internal rates of return. Every year, the project's value calculated with the displaced equity method is equal to the sum of the project's debt and equity values. In practice, when the schedule of expected outstanding debt amounts is known, using the displaced equity method is an easy way to estimate the project's net present value., INTRODUCTION There are two possible cases for the financing of a project: either (first case) the firm targets a fixed debt ratio and the project's debt schedule is included in [...]

Using monthly balance-sheet data of all major German credit banks, we analyze deposit withdrawals and bank failures in the German banking and currency crisis of 1931. We find that deposit withdrawals were driven by the run on the currency, but were also related to banks' liquidity positions; that branch banks were no more stable than unit banks; and that large banks were privileged, being bailed out and receiving preferential access to the discount window. These findings underline the importance of liquidity and implicit guarantees in twin crises. JEL classification: F34 E58 G21 Keywords: twin crises liquidity implicit guarantees 'too-big-to-fail'

Various initiatives have recently been proposed for improving the process of regulatory change as it affects the Australian financial sector. This paper argues that, while these initiatives are valuable, we also need to do more to engage with the rhetoric of regulation as part of the formulation, as well as the implementation, of regulatory policy. JEL Codes: G28, K22 Keywords: Financial regulation, Regulatory change, Regulatory rhetoric.

Developing countries characterized by high costs of tax collection and enforcement opt to use financial repression as an implicit tax on savings, providing the impetus for capital flight. A mechanism facilitating illicit capital movements is trade misinvoicing, where the effectiveness of capital controls would increase with the resources spent on monitoring and enforcement per one dollar of international trade. Under these circumstances, greater trade openness increases the effective cost of enforcing financial repression, thereby reducing the usefulness of financial repression as an implicit tax. This in turn implies that financial reforms tend to be the by-product of greater trade integration. Keywords: Capital controls; Financial openness; Trade openness; Collection costs; Financial repression

Sourcing decisions related to back-office operations done by financial services companies are studied. Companies have developed different sourcing practices, with service customization and volume working against outsourcing.

Abstract The linkages between style change, fund flows, fund size, and resulting fund performance are complex and not clearly understood. In this paper, we investigate these relationships using a sample [...]

ABSTRACT Competition and the quest for competitive advantages on the market are prompting companies to reshape the profiles of their relationships with their customers and suppliers. They are opting for [...]

Public news can be expected to change market prices but, unlike 'public information,' there are differing expectations about the impact. Hence trading is necessary for the market to process these divergent views. A surprise announcement of an increase in German interest rates coupled with concurrent transactions data enables us to study in detail dealers' reactions. The patterns observed are consistent with dealers' practice to book targeted profits immediately if possible in the face of uncertainty. Evidence also shows that the speculative activity by traders in initial reaction to the news destabilized the market for the next 2 h. JEL classification: F30; G14; G15 Keywords: Exchange rate; Public news; Public information; Electronic interdealer market; Order flows

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jimonfin.2006.07.005 Byline: Thorsten Beck (a), Asli Demirguc-Kunt (a), Luc Laeven (b), Vojislav Maksimovic (c) Abstract: We use survey data on a sample of over 10,000 firms from 80 countries to assess (i) how successful a priori classifications are in distinguishing between financially constrained and unconstrained firms, and (ii) more generally, the determinants of financing obstacles of firms. We find that older, larger, and foreign-owned firms report less financing obstacles. Our findings thus confirm the usefulness of size, age and ownership as a priori classifications of financing constraints, while they shed doubts on other classifications used in the literature. Our results also suggest that institutional development is the most important country characteristic explaining cross-country variation in firms' financing obstacles. Author Affiliation: (a) The World Bank, 1818 H Street N.W., Mail Stop MC 3-300, Washington, DC 20433, USA (b) International Monetary Fund, 700 19th Street, Room HQ1 9-700B, Washington, DC 20431, USA (c) The Robert H. Smith School of Business, Van Munching Hall, University of Maryland, College Park, MD 20742, USA

Solutions for risk management decisions faced by financial networks with many intermediaries are presented.

This paper shows that monetary policy can have asymmetric effects in a matching model along the lines of D. Mortensen and C. Pissarides [1994. Job creation and job destruction in the theory of unemployment. Review of Economic Studies 61,397 415]. when a balance sheet channel is at work. When a lender matches an entrepreneur, the investment project is financed and carried out. There is incomplete information ex post: firms can be randomly hit by shocks that change their financial position. If this falls under a critical value there is investment destruction. The asymmetric behavior of financial prices and investment flows following a monetary shock provides an explanation for monetary contractions having a greater effect than equally sized monetary expansions. JEL classification: E32; E44; E52 Keywords: Asymmetric monetary policy; Balance sheet channel; Matching model

Strategies to cope with and reduce uncertainty in financial services industry are analyzed. Implications of these strategies on productivity and customer satisfaction in these industries are also examined.

The aim of this paper is to use a new approach of performance evaluation, Grey Relation Analysis (GRA), which is a concept borrowed from the study of industry and increasingly applied to commerce. GRA is used to evaluate the relative performance of three investment Taiwanese trust firms, which have been reorganized into banks. The result of the study indicates that although the sample size is small and the distribution of data is unknown, GRA can still be successfully used in evaluating bank performance. In addition, this paper compares the GRA results with the Financial Statement Analysis (FSA) and shows that the same result can be obtained. doi: 10.1057/palgrave.jors.2601985 Keywords: grey relation analysis; banking; accounting; finance

The relationship between agents and customers using tow metaphors associated with interaction between different species in an ecological setting, namely, parasitism, and symbiotic mutualism is explored. The initial knowledge about customers is developed during the weekly visits that agents make to the homes of customers.

This article investigates the valuation of a project when the distributions of cash flows vary over time. The decision maker is assumed to be a Bayesian decision maker under uncertainty. Using the dynamic programming principle of backward induction and assuming that the capital asset pricing model is valid in each time period, we derive the project's valuation formulas and systematic risks, and investigate their characteristics. Our valuation formulas embed a Bayesian learning effect and differ from the traditional textbook capital budgeting formulas., INTRODUCTION Several authors employed the single-period capital asset pricing model (CAPM) of Lintner [7] and Sharpe [11] to value long-lived capital assets. The study by Bogue and Roll [2] was [...]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jimonfin.2005.08.006 Byline: Fariborz Moshirian, Donghui Li, Ah-Boon Sim Abstract: Intra-industry trade (IIT) has been central to increasing the variety of products available to consumers. Unlike traditional trade theories, the recent trade theories have placed an emphasis on the role of foreign direct investment (FDI) in generating trade and increasing the volume of IIT. This study is the first study of intra-industry trade in banking services in which the key elements of the new trade theories of IIT have been taken into account in measuring the determinants of IIT in banking services. The empirical results of the determinants of IIT in banking services indicate that factor endowments, average per-capita income, FDI in banking, economies of scale in the banking sector, trade intensity between the US and its partners and market openness make a positive contribution to the volume of IIT in banking services. Furthermore, the empirical results indicate that intra-trade activities amongst the US multinational corporations reduce the level of IIT in banking services for the US. Author Affiliation: School of Banking and Finance, The University of New South Wales, Sydney, NSW 2052, Australia

A focus on the various challenges that are being faced by TUC ( Trade Union Congress) is presented.