This paper examines how corporate financial structure shapes the impact of a financial crisis on the real sector by way of its effects on flows of funds and on corporate real expenditures.
It is one of the first papers to utilize extensive cross-country flow and balance sheet data and also to examine
subcomponents of GDP in the wake of banking and currency crises rather than focusing exclusively on aggregate GDP.
This chapter presents an overview of quantitative indicators of financial structure, devel-
opment, and soundness. It provides guidance on key system-wide and sectoral indicators,
including definitions, measurement, and usage. Key data sources for these indicators
are explained in appendix C (Data Sources for Financial Sector Assessments). Detailed
analysis and benchmarking of these indicators are discussed in chapters 3 and 4. More
detailed data requirements are presented in appendix B (Illustrative Data Questionnaires
for Comprehensive Financial Sector Assessments)....
Extensive evidence confirms that creating the conditions for a deep and efficient financial
system can contribute robustly to sustained economic growth and lower poverty (e.g., see
Beck, Levine, and Loayza 2000, Honohan 2004a, and World Bank 2001a). Moreover, in
all levels of development, continued efficient and effective provision of financial services
requires that financial policies and financial system structures be adjusted as needed in
response to financial innovations and shifts in the broader macroeconomic and institu-
This paper studies the responses of residential property and equity prices,
inflation and economic activity to monetary policy shocks in 17 countries,
using data spanning 1986-2006. We estimate VARs for individual economies
and panel VARs in which we distinguish between groups of countries on the
basis of the characteristics of their financial systems. The results suggest that
using monetary policy to offset asset price movements in order to guard
against financial instability may have large effects on economic activity.
Stocks are not the most important sources of external financing for businesses (figure 1) == Why?
Issuing marketable debt and equity securities is not the primary way in which businesses finance their operations (figure 1) == Why?
Indirect finance is many times more important than direct finance ((figure 1) == Why?
Financial intermediaries are the most important source of external funds (figure 1) == Why?
In this chapter we introduce the main, and first, concepts that one has to grasp in order to
build, evaluate, purchase and sell financial structured products. Structured finance denotes
the art (and science) of designing financial products to satisfy the different needs of investors
and borrowers as closely as possible. In this sense, it represents a specific technique and
operation of the financial intermediation business. In fact, the traditional banking activity,
During the last decade, hedge funds have become one of the most important institutional
investors in global financial markets. Although their activities have been viewed critically by
regulators, politicians, and the public, this negative perspective is often based more on myth
than on thorough economic analysis and empirical facts. Most people lack the necessary
information and understanding of the role that hedge funds play in financial markets. Blaming
them for the financial crisis or other market turbulences is often based on specific conjectures
and not on rigorous research.
Levine explains what the financial system does and how it affects, and is affected by, economic growth. Theory suggests that financial instruments, markets, and institutions arise to mitigate the effects of information and transaction costs. A growing literature shows that differences in how well financial systems reduce information and transaction costs influence savings rates, investment decisions, technological innovation, and long-run growth rates. A less developed theoretical literature shows how changes in economic activity can influence financial systems.
Chapter 42 provides knowledge of organization and financial structure of corporations. This chapter appreciate the risk of liability for corporate promoters, understand the process for incorporating a business, know the appropriate sources for financing a business, explain share-transfer restrictions.
On the basis of clarifying the general theoretical issues about market risk, methods of identifying, measuring and controlling market risk, the system of market risk management softwares at commercial banks; analyzing and evaluating the status quo of the market risk management in Vietnam Joint Stock Commercial Bank for Industry and Trade; the thesis proposed solutions to improving market risk management ability at Vietnam Joint Stock Commercial Bank for Industry and Trade in accordance with international practices.
Ch a p ter 8 An Economic Analysis of Financial Structure. A healthy and vibrant economy requires a financial system that moves funds from people who save to people who have productive investment opportunities.
The 1980s and 1990s have been critical periods for Thailand’s development. After an initial period of instability in the early 1980s, Thailand’s economy expanded at an average pace of 9 percent p.a. during 1987–96, while the number of households below the poverty line dropped from 32.6 percent in 1988 to 16.3 percent in 1996.
During this period, Thailand’s economy also underwent deep structural changes, including the liberalization of its financial sector and the integration of its economy with global financial and product markets.
Give future and current managers a thorough understanding of the financial theory that is essential for developing and implementing effective financial strategies in business today. Brigham/Ehrhardt's leading FINANCIAL MANAGEMENT: THEORY AND PRACTICE, 13E is the only text that strikes a perfect balance between solid financial theory and practical applications.
The Financial Valuation Workbook (FVW) contains both educational exercises that
guide the reader through a complete business valuation and valuation tools that
professionals can use in preparing business valuations. It is structured to be used on
a stand-alone basis. It is also a companion text to Financial Valuation: Applications
and Models (FV) (John Wiley & Sons), where the subject matter contained in the
workbook is expanded upon.
In a “perfect world” environment with no taxes, no transaction costs and perfectly efficient financial markets, capital structure does not matter.
This is known as the Independence hypothesis: firm value is independent of capital structure.
This paper addresses issues in financial sector regulation from two perspectives. First, it reports on the state of implementation of financial regulatory standards across banking, insurance, and securities sectors in a select group of Fund member countries. Second, it raises issues relating to the design of these three sector standards, arising from the implementation experience and the evolving structure of financial systems. In this regard, the paper identifies a few emerging regulatory risks and some cross-sectoral issues that may warrant further guidance by standard setters....
Over the last two decades there has been a notable increase in the number
of corporate governance codes and principles, as well as a range of
improvements in structures and mechanisms. Despite this, corporate governance
failed to prevent a widespread default of fiduciary duties of
corporate boards and managerial responsibilities in the finance industry,
which contributed to the 2007–2010 global financial crisis.
Chapter 1 introduces the concept of capital budgeting, and sets out the structure of the book.
The important points are:
Capital budgeting is the most significant financial activity of the firm.
Capital budgeting determines the core activities of the firm over a long term future.
Capital budgeting decisions must be made carefully and rationally.
This book shows how the principles of finance can be used by executives
to enhance the value of their companies. Dr. Weaver had been a
senior executive in finance at Hershey Foods for twenty years through
1998, when he joined the Finance Department at Lehigh University. For
the past ten years as a director of the Financial Management Association,
he has organized and directed a program linking financial principles
to financial practices. These full-day sessions focused on the
interaction between financial theories and real world practices.