Global Finance

A monthly publication providing news and analysis of global market and economy. Focuses on corporate finance, capital markets, and more.

Articles from Vol. 11, No. 4, April

A $270B Stock Market?
If it keeps pace with recent growth, by 2007 the Manila bourse could be one of the largest stock markets in Southeast Asia. From only US$15 billion in 1992, market capitalization has quintupled to $89 billion-overtaking Thailand's stock market. By 2007...
A Fight for Survival
Leading derivatives exchange executives and brokers gathered at a Global Finance roundtable in Boca Raton, Florida during the annual meeting of the Futures Industry Association to discuss key issues. GLOBAL FINANCE: What impact will the European Monetary...
A Romanian Shopping List
The second-largest country in Eastern Europe has attracted only a paltry $1 billion or so in foreign direct investment since 1989. Now, after years of printing money to fund bankrupt monoliths like the steel industry, simultaneously sending inflation...
Banks You Can't See
By 2007 the banks you use might be banks you can't see. New technology combined with new rules that allow foreign banks to operate in the Philippines have bankers and information experts predicting staggering growth for the country's banking sector over...
Buying Wisely
'No matter what's spent on technology, if the company's business processes aren't competitive and capable of moving forward, then you're not getting the return from the technology that you need to have," says Richard J. Fishburn, a former financial executive...
CFO Pay Hikes Are Slowing
As far as big pay increases go, chief financial officers appear to be taking a breather. A Pearl Meyer & Partners "flash" report on executive compensation prior to the spring proxy season reveals CFOs in 40 large US companies averaged just 5% pay...
Control for the Right Price
It was a bit of financial legerdemain. CGE effectively became the most important player in French media in an elaborate asset swap that involved no cash. If you were chairman of an on-themake, diversifying utilities giant, how would you restructure your...
Credit Derivatives
More powerful than a speeding locomotive? Or just the greatest invention since sliced bread? The amount of hype that's been lavished on credit derivatives has got even some of the industry's most dedicated practitioners coming up for air. "The credit...
Global Telecom: The Battle for Business
Think of communications as a manufactured product that has to be shipped and distributed. But in this case the product is information that comes in voice, video, text, and data form. Packaged increasingly in digital containers, the product is shipped...
India: The Next 10 Years
The biggest challenge is to create a better life for all. But few are sure if the government's pro growth program can deliver. India, the land of 320 million poor, will observe the 50th anniversary of its independence from British rule later this year....
In Direct Investment It's Indispensible to Have an Exit Strategy
Military operations have long provided business with handy analogies (strategizing, mounting campaigns), and some corporate managers swear by Sun Tzu's The Art of War. But when companies rush into risky emerging markets, one bit of combat doctrine that...
Investing Wisely Abroad
Cross-border investment is a long-term underlying theme of much of the reporting in Global Finance. Direct investment usually is our focus, whether we're looking at the companies or institutional investors buying sizable stakes in far-flung enterprises...
IPO of the Month: Germany's MobilCom
A hot growth company-in Germany? Last month's initial public offering for MobilCom, a six-year-old discounter of mobile telephone connections, was small: only DM40 million ($23.5 million) for a sixth of the company. But it was chock-full of significance....
Operating a Finance Department in Real Time
The Internet, once the province of a small number of "tech heads" who had the expertise to navigate the cumbersome, loosely connected sprawl of public networks, is now becoming the domain of rank-and-file employ ees at leading-edge corporations. In the...
Outsiders Get Serious about African Investment
DIRECT INVESTMENT HAS BEEN SLOW, BUT THIS YEAR AFRICA MAY TURN THE CORNER. When the Berlin Wall fell in 1989, Black Africa dropped off just about everyone's scope: Without the Cold War's proxy rivalries, the vast region below the Sahara couldn't compete...
Philippines 2007
Global Finance asks top policymakers, bankers, and executives to paint a picture of there of the financial scene ten years from now. Ten years from now, the Philippines could be one of Asia's heavyweights, sporting an economy as open as Hongkong's and...
Stock Options for All
MORE COMPANIES ARE EXPANDING THE EXECUTIVE MOTIVATOR TO ALL EMPLOYEES, BUT OPTIONS AWARDS AT A MARKET TOP WOULD BACKFIRE. American companies increasingly are awarding options on their own tock to virtually every employee in their workforce, beginning...
The Finance Expert Behind India's Telecom Giant
When Videsh Sanchar Nigam Limited (VSNL)India's sole international telecom company-geared up last month for its $500 million offering of global depositary receipts, the company's investment bankers made a curious request. They asked the government to...
The Fine Art of Making a Success of Asian Equity Funds
Private equity funds targeting Asia are running into disappointments. They've had no trouble raising money: America's big institutional investors, and more and more of Europe's, are bewitched by the idea of getting a piece of Asia's fast-growth action....
The Next Big Steps
A Global Finance in roundtable in Manila airs key issues facing the economy, the tax system and the capital markets. GLOBAL FINANCE: As we move toward the next national elections in 1998, what economic reform processes does the Philippines still need...
The Technology Trends Every CFO Must Master
Corporate finance executives of the world's leading global companies are something more than that these days. They're being asked to assemble and distribute the information that will make a critical difference to their company's success, to become lead...
What Technology Can Do for CFOs
It'S MAKING THEM FAR MORE POWERFUL BUT CHARGING THEM WITH MUCH GREATER REPONSIBILITY Technology is placing unprecedented power-and responsibility-in the hands of the chief financial officer of the global corporation. The CFO can not only provide the...
When a Conservative Company Suddenly Needs to Raise Cash
The Philippines' leading business family has always taken a conservative approach to building its portfolio. "There was one time when we didn't have a single debt on the books," says Manuel Bengson, the highest ranking financial officer at the Ayala...
Why the Market Keeps Growing
They've existed for nearly 70 years, but ADRs have grown very fashionable only over the past decade. The boom in issuance has meant double-digit annual growth for this market, at rates that have just begun to slow. Non-US companies eager for both the...