The empirical relationship between capital controls and the financial development of credit and equity markets is examined. We extend the literature on this subject along a number of dimensions.Specifically, we
(1) investigate a substantially broader set of proxy measures of financial development;
(2) create and utilize a new index based on the IMF measures of exchange restrictions that incorporates a measure of the intensity of capital controls; and (3) extend the previous literature by systematically examining the implications of institutional (legal) factors.
The most important rule when making any
business agreement is: Get it in writing.
In some situations—such as a contract to
buy or sell real estate—only a written agreement is
legally enforceable. Similarly, a contract that can’t be
carried out in one year, or a contract to sell goods
exceeding a certain value set by state law (typically,
$500), must be written.
Profit plan: A company’s total budget used in achieving a desired profit goal. Sometimes the term refers only to the operating budget, and sometimes it is used synonymously with the term master budget. Prospectus: Part I of a Registration Statement filed by a company offering its securities to the public, which Registration Statement is filed with and must be approved by the Securities and Exchange Commission. The Prospectus describes the registering company, its business and finances, and the risk factors the company faces.
Morgan Stanley is currently acting as a financial advisor to Microsoft Corp. ("Microsoft") in relation to their proposed offer to acquire Yahoo! Inc. ("Yahoo!"), as announced on February 1, 2008. The proposed offer is subject to definitive documentation, due diligence, the consent of Yahoo! shareholders, required regulatory approvals and other customary closing conditions.
The Company conducts a transparent information policy using traditional and modern
technologies to communicate with the capital market community, but in 2008 it did not provide
the on-line broadcasts of General Meetings over the Internet and did not record General
Meetings. The reason for this was the fact that all Shareholders registered for the General
Meetings appointed as proxies the persons indicated by the Company and sent their voting
instructions to such proxies.
Earnings capacity is a key element in the stock market valuation of firms.
Higher sustainable profits should lead to higher dividend payments and boost
firms’ equity values. We use past earnings as a proxy for future cash flows and
hence for payments to shareholders. To the extent that bank managers smooth
earnings, they also increase the correlation between reported earnings in
consecutive years and augment the salience of this driver.
We postulate that these three drivers affect bank equity performance