Finance and Investment Banking

* Cash flow analysis has at least three justifications. First, its usefulness in an array of financial purposes is suggested by a Financial Executive Institute 1984 survey [9], by Exposure Drafts [5,6,7], and by the Statement of Financial Accounting Standards No. 95 from the Financial ...

This study has 4 contributions to the literature. First, the authors analyze the risk characteristics for 11 Relative Value hedge fund strategies. Second, the authors introduce 3 families of behavioral factors, the D family, the L family, and the R family. In contrast to previous hedge fund studies, these new factors assume investors use historical and behavioral data such as average drawdown, run-up, and liquidity from each hedge fund category to assess the risk. Third, additional macroeconomic variables, such as the CRB, Copper, and Oil are found to be statistically significant in some strategies. This economic and historical information, when included with asset pricing models, is more powerful in explaining hedge fund returns than previous models. Fourth, unlike the previous literature, these generated models are corrected for time-series assumption violations and heteroskedasticity. To more fully understand the timing of risks and returns associated with investing in relative v...

... Biographical notes: Leo MacDonald is an Assistant Professor in the Department of Economics, Finance and Quantitative Analysis in the Coles College of Business ... Prior to his appointment in 2006, he was a Faculty at the Ivey School of Business in London, Ontario, Canada. ...

A well-functioning pharmaceutical industry can contribute directly to social wellbeing. Corporate sustainability is an important precondition for the further development and growth of the industry. In this research multi methods are used to provide a complete, holistic and contextual portrait of the level of CSR by pharmaceutical companies in a developing country - Bangladesh. Firstly, we used content analysis to investigate corporate social reporting by listed pharmaceutical companies. Secondly, we conducted surveys to document management responses. Thirdly, we sought stakeholders’ views on the extent to which they believe CSR is being implemented in the industry. Analysis of annual reports published in 2009- 2010 shows that only 26.67% of listed pharmaceutical companies made some CSR disclosure. However, more than seventy-five per cent of these disclosures are sweeping qualitative statements without any attempt at quantification. Most managers believe social reporting should strik...

The regional integration agreements can be a strategy of trade diversion and thus we can say that there is a violation of the rules of free trade. By creating preferential rules which are inconsistent with the principles of the WTO, the strategy of regional integration can increase the risk of trade disputes with third party countries and can therefore generate a commercial environment full of threats and reprisals. Third countries, especially developing countries have small markets, may find themselves marginalized further when the members of the regional group adopt the principle of discrimination. The philosophy of the WTO paves the way for a transition from regional integration towards a multilateral integration. The question that arises is whether regional integration agreements meet this conception of the WTO or they represent a new form of protectionism hindering free trade. We know that the regional groups hold private information about the actions and decisions they adopt i...

A large fraction of South African consumers are highly leveraged, inadequately insured, and/or own little to no assets of value, which increases their exposure not only to idiosyncratic risk but also to severe indebtedness and/or default. This scenario can present negative ramifications that lead well beyond the confines of individual households. Thankfully, it can also be remedied by well-tailored legal debt relief mechanisms. This article reflects on the uncertainties surrounding the consumer debt relief framework of the National Credit Act in an attempt to show why it is not up to the challenge of providing meaningful relief to debt-distressed consumers. Ultimately, a comprehensive review of the current framework in favor of a discharge mechanism on simple, stated terms is proposed.

This paper tests the contrarian investment strategy, which predicts that stocks that consistently underperform (outperform) the market would in subsequent periods outperform (underperform) those stocks that have previously outperformed (under-performed) the ...

Using the family financial socialization theory, this study investigated the financial knowledge and behavior of high school students' contextualizing unintentional and purposive family financial socialization. The sample of 4,473 high school students were 51% females, 45% seniors, and ethnically diverse. A path analysis tested conceptual relationships between variables. Results indicated that the two unintentional socialization indicators were positively associated with subjective financial knowledge and financial behavior. Those indicators were also indirectly associated with financial behavior through knowledge. Student-earned income, a purposive indicator of socialization, was positively associated with behavior through knowledge. Exclusively obtaining money through parents was negatively associated with behavior through knowledge. Knowledge was positively associated with behavior.

This study is the first to employ calendar-time portfolio methodology to investigate the impact of 748 ESG rating changes on stock returns of US firms over 2016–2021. While ESG rating upgrades lead to positive yet inconsistently significant abnormal returns of 0.5% per month, downgrades are detrimental to stock performance, leading to statistically significant monthly risk-adjusted returns of -1.2% on average. These findings are more pronounced for ESG leaders than laggards and are robust to various asset-pricing model specifications. The effects of ESG rating levels are modest, with ESG laggards underperforming in risk-adjusted terms.

The methodology of Feldstein and Horioka (Econ. J. 90 (1980) 314) is used to gauge the degree of capital mobility and accessibility to international financial markets following financial liberalisation. The sample consists of 90 developing countries divided into four regions: ...

The main goal of this paper is to develop a flood management model that takes into account the specifics of catastrophic risk management: highly mutually dependent losses, the lack of information, the need for long-term perspectives and explicit analyses of spatial and ...