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Venture Capitalists’ Exit Strategies under Information Asymmetry : Evidence from the US Venture Capital Market
Venture capitalists (VCs) fund ventures with the aim of reaping a capital gain upon exit. Research has identified information asymmetry between inside investors and follow-on investors as a major source of friction. It is thus in the interest of VCs to reduce information asymmetry at exit.
Value Creation in European Equity Carve-Outs
The total volume of equity carve-outs (i.e. IPOs of subsidiary firms) in Europe over the last 20 years amounts to approx. € 90 billion. Carve-outs thus account for almost 20% of the total IPO volume. Companies use them for a variety of reasons aimed at increasing shareholder value. Nevertheless, not all carve-outs actually do create value.
The Statistical Mechanics of Financial Markets
The random-walk technique, well known in physics, is also the basic model in finance, upon which are built, for example, the Black-Scholes theory of option pricing and hedging, plus methods of portfolio optimization. Here the underlying assumptions are assessed critically. Using empirical financial data and analogies to physical models such as fluid flows, turbulence, or superdiffusion, the book develops a more accurate description of financial markets based on random walks. With this approach, novel methods for derivative pricing and risk management can be formulated. Computer simulations of interacting-agent models provide insight into the mechanisms underlying unconventional price dynamics. It is shown that stock exchange crashes can be modelled in ways analogous to phase transitions and earthquakes, and sometimes have even been predicted successfully.
The role of financial indicators in influencing the market price of shares
Research focused on five private Syrian banks, which were represented by five different banks in their performance so that the sample is not biased, namely (Bemo Bank, Baraka Bank, The Arab Bank, the International Bank for Trade and Finance and the Cham Bank) and during five years (2016 to 2020) and using one of the indicators, which were (debt index, profitability index, stock index and liquidity index). Our study showed that there is a weak Positive relationship between the return on equity index. Ownership and the market price of the share, and that there is a weak inverse relationship between the indicators of the liquidity ratio and the debt ratio with the market price of the share, in addition to the presence of a strong Positive relationship between the book value multiplier and the market price of the share.
The reality of investment funds and the possibility of their implementation in Syria
Explores the concept of investment funds and examines their applicability in Syria’s current economic context. It begins by outlining the definition, components, types, advantages, and risks of investment funds, along with the differences between investment funds and investment companies. Aslo highlights how investment funds have contributed to economic growth, diversification, and financial inclusion in various economic environments. It also identifies key challenges hindering the implementation of investment funds, such as a weak banking sector, lack of legal and regulatory frameworks, low transparency, and limited capital market development.
The Future of Financial Systems in the Digital Age : Perspectives from Europe and Japan
The increasing capacity of digital networks and computing power, together with the resulting connectivity and availability of “big data”, are impacting financial systems worldwide with rapidly advancing deep-learning algorithms and distributed ledger technologies. They transform the structure and performance of financial markets, the service proposition of financial products, the organization of payment systems, the business models of banks, insurance companies and other financial service providers, as well as the design of money supply regimes and central banking.
The Entrepreneurial Society : A Reform Strategy for the European Union
This book builds on the European Union’s (EU) Horizon 2020 project ‘Financial and Institutional Reforms for an Entrepreneurial Society’ (FIRES). The authors outline how Europe can move towards more inclusive, innovative and sustainable growth through reforms that will rekindle its entrepreneurial spirit. Based on decades of research and countless discussions with stakeholders, the book also features the FIRES project’s full list of policy interventions and institutional reforms that can help policymakers make that agenda a reality.
The Entrepreneurial Society : A Reform Strategy for Italy, Germany and the UK
This book is an outcome of the EU’s Horizon 2020 project ‘Financial and Institutional Reforms for an Entrepreneurial Society’ (FIRES). Building on historical, economic and legal analysis, and combining methods and data across disciplines, the authors provide policymakers, stakeholders and scholars with valuable new tools for assessing and improving Europe’s entrepreneurial ecosystems. Then experts from Germany, Italy and the United Kingdom discuss tailored strategies for introducing entrepreneurial policy reforms in their respective countries.
The Economics of Demutualization : An Empirical Analysis of the Securities Exchange Industry
Felix Treptow seeks to fill this gap in the literature and presents in this book an in depth analysis of the demutualization phenomenon. In his thesis, he applies advanced econometric methods to data sets which were assem bled specifically for the purpose of his analysis. Each of the three self-contained chapters of this volume addresses different issues which are of importance to the various stake holders in this process. The analysis covers the micro- and macroeconomic causes of demutualization, its impact on market liquidity and the changing relationship between exchanges and issuers.
The Chinese Capital Market : Performance, Parameters for Further Evolution, and Implications for Development
Analyses the Chinese capital market and examines to what extent the stock and bond markets contribute to the financing of China's development. Her approach takes into account the relatively recent re-emergence of the stock and bond markets in China, the limited data available, and the country's current dynamics.
Tax and Corporate Governance
The interaction of tax and corporate governance forms an emerging issue both in business and administrative practice and in academic research. International organisations (OECD, EC) have begun to explore the effects corporate governance rules exert on the tax policy of large business; governments try to employ corporate and securities law as a means to further their fiscal interest. Academic research shows that well-known principal-agent and capital market problems are strongly influenced by tax considerations. Against this background, this volume is the first to present a fully-fledged overview of the interdependence of tax and corporate governance. Not only the basic political, legal and economic questions but also major topics like income measurement, shareholding structures, corporate social responsibility and tax shelter disclosure are covered extensively by leading authors.
Studying the impact of diversity in the Syrian capital market on profitability and risks
The aim of the research and study is to measure the investment climate in the Damascus Stock Exchange, and is this climate attractive to investments and are we able to build an investment portfolio with acceptable returns and low risks, or was the investment climate able to make the Damascus Stock Exchange a safe haven instead of money fleeing outside Syria and transferring it to foreign currency, This was the purpose of the research.
Selected Essays in Empirical Asset Pricing : Information Incorporation at the Single-Firm, Industry and Cross-Industry Level
Financial researchers extensively discuss the efficiency of capital markets and the existence of possible misreactions in the information incorporation process. Christian Funke aims at developing a better understanding of a central asset pricing issue: the stock price discovery process in capital markets. He provides new evidence on the information incorporation process at the single-firm, industry, and cross-industry level. In three essays that display original empirical research using U.S. capital market data, he investigates the importance of mergers and acquisitions (M&A) for stock prices and examines economic links between customers and supplier firms. Return predictability at the single-firm, industry, and cross-industry level are documented which support the view of behavioral finance researchers that capital markets are not perfectly efficient.
Real Options Valuation : The Importance of Interest Rate Modelling in Theory and Practice
Managerial decision-making during the lifetime of a project can have im portant implications on project handling and its contribution to shareholder value. Traditional capital budgeting methods (in particular methods based on net present value) fail to capture the role of managerial degrees of free dom and therefore tend to lead to a systematic undervaluation of the project. In contrast, the real options approach to investment analysis characterizes decision-making flexibility in terms of (real) option rights which can be eval uated analogously to financial options using contingent-claims pricing tech niques widely used in capital markets. The research carried out by Marcus Schulmerich analyzes real options for n- constant and stochastic interest rates versus constant interest rates. Analyzing stochastic interest rates in the context of real options valuation is of particular relevance given their long time to maturity which makes them more vulnera ble to interest rate risk than short-term financial options. To date, there has not been a comprehensive review of this issue in the academic literature. The fact that interest rates have fiuctuated widely over the recent years further highlights the need for studying this issue.
Real Estate Investment Trusts and Joint Ventures
Studies the contribution of joint venture (JV) use as means of financing flexibility against the background of diverse financial restrictions in the institutional and regulated environment of the REIT Act. After reviewing JV motives for classical corporations, the real estate and REIT industry as well as the financing and capital behavior of REITs, the author finds JVs to result from REIT managers’ need of financing flexibility to allow timely funding outside regulated markets. Thus, he argues JVs mitigate financing restrictions and stimulate capital markets to regain access to classical financing. Contents : Joint Ventures Motives in Classical Corporations and REITs: Same or different? / Why the REIT Act, REIT Capital Structure, and Diversification Needs call for Joint Venture Use/ REIT Joint Venture formations as means for financial flexibility to capture market timing opportunities / The Role of REIT Joint Ventures to Market Timing and Capital Structure Considerations
Quantitative Corporate Finance
Guerard and Schwartz cover a wide variety of tools and techniques used to evaluate and manage financial performance, with particular emphasis on the application of regression analysis, time series modeling, the Capital Asset Pricing Model (CAPM), and multi-factor risk models. Moreover, they address such timely topics as optimal capital structure (in the United States and internationally), dividend policy, sales forecasting and pro forma statement analysis, the regulatory environment, mergers and acquisitions, bankruptcy, management-shareholder relations, and the corporation as a social and economic institution. Featuring detailed worked examples and practical problems throughout, the book is designed to serve as a graduate-level text and a practical reference for practitioners, analysts, and regulators.
Public Policy for Venture Capital : A Comparison of the United States and Germany
Venture capital is widely regarded as an important driver of economic growth. While the USA has the largest and most sophisticated venture capital market in the world, its German counterpart has only recently begun to mature, and numerous governmental schemes exist that are meant to help speed up the development of the German market. Yet, little is known about the efficiency and the impact of these efforts.
Portfolio Management in Practice ; Vol.2 : Asset allocation workbook
This workbook covers: Setting capital market expectations to support the asset allocation process / Principles and processes in the asset allocation process, including handling ESG-integration and client-specific constraints / Allocation beyond the traditional asset classes to include allocation to alternative investments / The role of exchange-traded funds can play in implementing investment strategies
Pensionomics : On the Role of PAYGO in Pension Portfolios
Pensionomics puts forward a portfolio perspective on the combination of funded and unfunded pension arrangements. In a second-best type argument it is formally shown that a Pay-As-You-Go pension system can substitute the tradability of human capital: if risk-averse investors were able to directly invest into the present value of future labour income, they would allocate their pension portfolios in both human and physical capital. While this ideal form of diversification can not be implemented due to the imperfection of capital markets, one can design a typical Pay-As-You-Go system in such a way that it allows for the same intertemporal consumption allocations as the first-best solution. This replication works regardless of the demographic development.Therefore, PAYGO should play a key role in optimising the risk-return combinations for old-age savings.
Optimal Risk-Return Trade-Offs of Commercial Banks : and the Suitability of Profitability Measures for Loan Portfolios
The present book criticizes the fact that profitability measures derived from capital market models such as the Sharpe ratio and the reward-to-VaR ratio are proposed for loan portfolios although it is not assessed whether their risk-return trade-offs are optimal for banks. This volume intends to fill this gap. The approach of this work is to endogenously derive optimal risk-return trade-offs of commercial banks and to compare them with those of reward-to-risk ratios. The risk-return trade-offs for banks are derived taking into account market discipline, Basel I and Basel II regulatory capital requirements, and insured deposits.
