International Journal of Business

Articles from Vol. 15, No. 3, Summer

Constant Proportion Portfolio Insurance Effectiveness under Transaction Costs
I. INTRODUCTION Portfolio insurance allows investors to recover, at maturity, a given percentage of their initial investment, in particular when markets are bearish. One of the main standard portfolio insurance methods is the Constant Proportion...
Read preview Overview
Flaws in Banking Governance
I. INTRODUCTION Separation between ownership and control in business organisations by way of shares underlies the emergence of the concept of governance. According to agency theory, as defined by Jensen and Meckling (1976), this separation creates...
Read preview Overview
Interdependence between Exchange Rates: Evidence from Multivariate Fractional Cointegration
I. INTRODUCTION The interdependence between the foreign exchange markets has been largely examined in the literature and numerous empirical studies have focused on investigating the relationship between the exchange rate series. The existence of...
Read preview Overview
Liquidity Risk, Firm Risk, and Issue Risk Premium Effects on the Abnormal Returns to New Issues of Convertible Bonds
I. INTRODUCTION A large body of empirical evidence demonstrates that the issuance of new CB's is associated with negative abnormal returns of the underlying shares (1). This is puzzling since: (1) the market normally reacts positively to the straight...
Read preview Overview
Non-Performing Loans and Credit Managers' Role: A Comparative Approach from Pakistan and Turkey
I. INTRODUCTION Most developing economies that undergo the process of financial liberalisation have banking systems that are burdened by a large proportion of bad loans and risky credits. The most common cause of bad loans is directed lending to...
Read preview Overview
Regulatory Practices and the Impossibility to Extract Truthful Risk Information
I. INTRODUCTION Accurate estimates of the risk exposure in the banking industry are critical to regulators. This information allows not only to set precautionary measures to protect the banking industry, but also at individual level to adjust for...
Read preview Overview
Stock Market Integration in the EURO Area: Segmentation or Linear Modelling Misspecification?
I. INTRODUCTION Determining the extent to which stock markets are integrated is an empirical question which has a decisive impact on a number of issues pertaining to financial market theory. In general, stock markets are said to be perfectly integrated...
Read preview Overview
The Origin of Stock-Market Crashes: Proposal for a Mimetic Model Using Behavioral Assumptions and an Analysis of Legal Mimicry
I. INTRODUCTION A crash is a precipitous collapse of listed assets. It must be violent and spectacular, and must cause serious collateral damage. Its suddenness arises from a recurrent process: an upturn in the economy attracts investors of every...
Read preview Overview