The economic and financial crisis that arose in summer
2007 led to a significant increase in perceptions of risk
in the economy, resulting in a sizeable rise in risk and
liquidity premia on credit markets. Given the nature of
the crisis, the financial sector was particularly affected,
with respect to its financing via both the money market
and the bond market, which may have had an impact
on the retail interest rates offered by banks to busi-
nesses and households.
Social sustainability emerges from ideas about good corporate citizenship and social
responsibility. When used in conjunction with triple bottom line frameworks, the term implies
that humans matter at least as much as economics and the environment. It is concerned with
the durability and function at 3 levels: the broad scale of social networks, the more intimate
level of relationships, and the individual quantum of well-being. All 3 of these levels feed into
the productivity mix.
Our approach is motivated by the statistical ﬁnding that the market value of ﬁxed
income instruments exhibit a low-dimensional factor structure. Indeed, a large literature
has documented that the prices of many types of bonds comove strongly, and that these
common movements are summarized by a small number of factors. It follows that for any
ﬁxed income position, there is a portfolio in a few bonds that approximately replicates
how the value of the position changes with innovations to the factors.
The process of applying IAS 39 across the
complexity of business has thrown up some
surprises. For many, this challenge is only just
beginning as they embed IFRS-based numbers
in their internal management and reporting
processes, rather than creating them as an
‘add-on’ exercise carried out by head office
at the end of the reporting chain.
The challenge is compounded by the fact that
IAS 39 has changed significantly in recent years
and continues to change. In addition, it is only
as IAS 39 is applied widely in practice that
certain issues have come to light.
Unfortunately, the construct of situational interest often carries a neg-
ative connation and is regularly contrasted with the more desirable dispo-
sitional interest—interest associated with intentional, learner-directed
activity. Situational interest is temporary and superficial, rather than
enduring and substantial. Garner, Gillingham and White’s (1989) work
on how “seductive details” can distract readers from the main point of a
text emphasizes this point.
Chapter 1 stressed the importance of financial statements in helping investors and creditors predict future cash flows. The balance sheet, along with accompanying disclosures, provides relevant information useful in helping investors and creditors not only to predict future cash flows, but also to make the related assessments of liquidity and long-term solvency. The purpose of this chapter is to provide an overview of the balance sheet and financial disclosures and to explore how this information is used by decision makers.
SERS OF FINANCIAL STATEMENTS INCLUDED management of a company's shareholders, bondholders, security analysts, vendors, lending institutions, employees, labor unions, management agencies, and the general public. They use financial statements to make decisions. For example, potential investors use financial statements as an aid in deciding whether to buy shares. The supplier uses financial statements to decide whether or not to sell goods for a credit card company. Labor unions to use financial statements to help identify their needs as they negotiate for workers....
Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With ofﬁces in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written speciﬁcally for ﬁnance and investment professionals as well as sophisticated individual investors and their ﬁnancial advisors.
The process of financial reporting, financial statement analysis, and valuation is intended
to help investors and analysts to deeply understand a firm’s profitability and risk and to use
that information to forecast future profitability and risk and ultimately value the firm,
enabling intelligent investment decisions. This process lies at the heart of the role of
accounting, financial reporting, capital markets, investments, portfolio management, and
corporate management in the world economy.
The purpose of this chapter is to outline a comprehensive framework for ﬁnancial statement analysis. Because ﬁnancial statements provide the most widely available data on public corporations’ economic activities, investors and other stakeholders rely on ﬁnancial reports to assess the plans and performance of ﬁrms and corporate managers. A variety of questions can be addressed by business analysis using ﬁnancial statements, as shown in the following examples: • A security analyst may be interested in asking: “How well is the firm I am following performing?...
The process of financial reporting, financial statement analysis, and valuation is intended to help investors and analysts to deeply understand a firm’s profitability and risk and to use that information to forecast future profitability and risk and ultimately value the firm, enabling intelligent investment decisions. This process lies at the heart of the role of accounting, financial reporting, capital markets, investments, portfolio management, and corporate management in the world economy.
Most business books give you the same old advice: Write a business plan, study the competition, seek investors, yadda yadda. If you're looking for a book like that, put this one back on the shelf.Rework shows you a better, faster, easier way to succeed in business. Read it and you'll know why plans are actually harmful, why you don't need outside investors, and why you're better off ignoring the competition. The truth is, you need less than you think. You don't need to be a workaholic. You don't need to staff up. You don't need to waste time on paperwork...
Taxes matter! Nobody seriously doubts this. Yet many ﬁnance textbooks keep
entirely quiet about tax issues. It is well-known that investors and enterprises strive
to maximize their income net of taxes, yet business schools rarely teach their stu-
dents how tax effects impact business decisions. Ignoring tax effects will typically
lead to investor decisions that are wrong froma real world perspective.
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.
In Japan, credit ratings issued by Designated Rating Agencies (DRA) are used to estimate
market risks and counterparty risks for the purpose of calculating the capital adequacy ratios
for securities companies.
Japan also noted that for calculating the capital adequacy ratios
for banks and other deposit-taking institutions, credit ratings issued by ECAIs are used
subject to the Financial Services Agency (JFSA) ordinance under the Banking Act.
What our initial study did contemplate, however, was that
support measures need to be flexible to fulfill the markets’
needs. A wide spectrum of financial intermediaries, active in
microfinance in the EU (microfinance institutions, “MFIs”), has
been developing, and the product range offered to them has
to be sufficiently wide in order to meet their diverse needs and
to enable them to provide efficient support to the final
Now, the roll-out of Progress Microfinance is well under way
since end of 2010.
Leveraging refers to the process by which private sector capital is mobilised as a consequence of the use of
public sector finance and financial instruments. Public finance can „crowd in‟ private capital by compensating private
investors for what would otherwise be lower than their required risk-adjusted rates of return (AGF, 2010). There is no
uniform methodology to calculate leverage ratios of public to private finance, and different financial institutions report
this ratio in different ways.
This paper introduces Shariah-compliant investment by reviewing its key terms and
concepts, assessing its market size and potential, and outlining its opportunities and
challenges for investors and financiers.
Shariah-compliant investment represents a series of ethical financial transactions that
are organised in accordance with Islamic law. The range of investment opportunities
complying with Muslim religious beliefs has historically been fairly limited.
Governance research in accounting exploits the role of
accounting information as a source of credible information
variables that support the existence of enforceable contracts,
such as compensation contracts with payoffs to managers
contingent on realized measures of performance, the
monitoring of managers by boards of directors and outside
investors and regulators, and the exercise of investor rights
granted by existing securities laws. The remainder of Section 3
is organized as follows. Section 3.
Before using the “EDORA cube” to provide a framework for a “broad-brush” review of socio-
economic performance across “non-urban” Europe (section 3) it will be helpful to provide a
simple statistical assessment of the “independence” of the D-P and Structural types. The
distinctiveness of the types may be assessed in a variety of different ways. For example the
statistical differences between the types of each typology may be tested on the basis of the
indicators used in the classification.