Foreign Direct Investment (FDI) theories: An overview of the main FDI theories
Essay - 6 pages - Finance
Foreign Direct Investment (FDI) acquired an important role in the international economy after the Second World War. The increase of the volume of foreign direct investment was so sharp that economists considered FDI as a new stage of Capitalism after the classic Marxist theories of Imperialism....
Modelling the interest rate risk management with portfolio selection: the case of Crédit Foncier de Monaco
Case study - 40 pages - Finance
Since the primary activity of banking is the intermediation between borrowers and lenders, its core business is the transformation of collected deposits into distributed loans. This process generates a net interest margin in the profit and loss statement but engenders financial risks in the...
Risk management and the use of derivatives
Essay - 7 pages - Finance
This paper investigates the use of derivatives in Risk Management. Deriving the value from an underlying asset or an index representing assets, derivatives bear the ability to accelerate gains or losses for a small initial outlay thus assisting corporations to manage risk and return...
Interdependence of norms in budgeting
Essay - 7 pages - Finance
Key (1940) contended that there was a lack of "attention from the basic budgeting problem (on the expenditure side), namely: On what basis shall it be decided to allocate x dollars to activity A instead of Activity B?" (1137, emphasis in original) The literature of the era was concerned...
Investment management and modern portfolio theory
Essay - 9 pages - Finance
Various assets or types of investment (stocks, bonds and cash equivalents) held and/or managed directly by investors, constitute a portfolio. In order to build up a coherence between risk tolerance and the investing objectives, investors favor large cap value stocks based on index funds if their...
Financial engineering assignment: CTA Fund
Essay - 15 pages - Finance
From the prices of the seven futures markets, we explore various ways of engineering the performance measurement and market and operational risk management for the Commodity Trading Advisor or the CTA fund. We assume a portfolio account size of $200 000. From trading limits, the portfolio is...
Trading volatility
Essay - 15 pages - Finance
Traditionally, to make a profit, most individual investors and fund managers are forced to take a view on the direction of the price of something. The traditional or fundamental strategy is to study all the aspects of the market-place, all the factors affecting the price or that might affect the...
The core-satellite model revisited, tracking error control, ETF's and satellites possibilities
Essay - 13 pages - Finance
A core-satellite management consist in having a core portfolio made up of passive management vehicles (index funds, ETFs, etc.) with low management fees, and separately one, or several, very active satellites that are made up of funds with a strong tracking error, or even funds with no constraint...
Definition and analysis of different notions of advanced corporate finance
Course material - 12 pages - Finance
Investment management is the management of various securities as shares, bonds and asses in a professional way. The aim is to satisfy the investment aims and needs of the investors. Investors could be represented by insurance companies, pension funds, corporations that is to say by institutions...
Capital budgeting methods
Essay - 7 pages - Finance
Capital budgeting is concerned with the process of producing, evaluating, selecting and controlling capital expenditures. In this context, capital budgeting decisions are critical. Winning projects typically produce positive cash flows for a long period of time, while failing projects do not...
Exercises in Financial Management
Course material - 19 pages - Finance
In theory, managers should operate in the best interests of the owners, who are the stockholders within corporations. But currently, we can note that stockholders and managers do not have the same interests in the company. This is why, in practice, managers are operating in a different way that...
Analyzing financial statements: Bank of America/Citigroup analysis
Financial analysis - 13 pages - Finance
Bank of America Corporation is a financial holding company founded in 1874, with its headquarter in Charlotte, North Carolina. It provides banking and nonbanking financial services in the United States and other countries The company is divided into 3 segments namely, Global consumer / Small...
Top-down or bottom-up valuation process?
Essay - 6 pages - Finance
Investors typically select investments that provide a rate of return, which compensates them for their time, the expected rate of inflation and the risk involved. In this context, the value of an investment is estimated based on the required rate of return, which is calculated using either the...
The value of the Chinese Renminbi (RMB), its management and risks associated with investing in China
Case study - 6 pages - Finance
Ever since China adopted its Open Door policy, it has received unparalleled attention from international scholars. In recent years, this has been evident with respect to the exchange rate regime that China has applied. At first, the policy was lauded because it helped China steer the dire waters...
Efficient capital markets and the importance of behavioral finance
Essay - 7 pages - Finance
Efficient capital markets allow to consumers and companies to invest savings, borrow, and manage risk in the most effective way. Capital markets bring together companies, that seek to raise capital to invest in future performance and investors, who seek for a profitable return on their...
The Grameen Bank in Bangladesh
Case study - 11 pages - Finance
“Where businesses cannot develop, countries cannot flourish. Let us use this International Year of Microcredit to put millions of families on the path to prosperity. I extend my gratitude to the nation and people of Bangladesh for helping to show us the way.” the former UN general...
The modern portfolio theory
Essay - 7 pages - Finance
The aim of the Modern Portfolio Theory is to provide to a portfolio owner the tools necessary to implement an efficient and sustainable strategy focusing on minimizing the risk. According to this theory, risk is supposed to be reduced through the choice of a diversified portfolio. In fact,...
The financing of joint ventures
Essay - 7 pages - Finance
A joint-venture is an agreement between two partners from different countries and which consists of the creation or the joint acquisition of a joint venture on the market of the foreign partner. This co-operation is considered on the long-term. In other words, a joint venture is a group in which...
Critical discussion on the definition of assets and liabilities contained in the IASC Framework
Essay - 6 pages - Finance
Although it may come as a surprise to many non- accountants, the accounting profession internationally has encountered a great deal of problems in arriving at robust definitions for the elements of financial statements. Defining assets, liabilities, and gains and losses (income and expenditure)...
Compare the 1997 Asian financial crisis with the subprime crisis
Essay - 4 pages - Finance
The subprime crisis was triggered by an expectation of defaults of payments on subprime mortgages in the US. It is an on-going crisis that has already led to the free fall of the US housing prices, billions of losses by banks, and generally speaking a slow-down (maybe a recession) of the American...
Empirical evidence on Seasonalities - Inspecting the market anomalies
Market study - 12 pages - Finance
Anomalies, such as calendar effects, could be defined as phenomena where systematic returns patterns are observed. Partisans to informational market efficiency suggest that calendar effects are prone to disappear, as investors in the market could implement strategies in order to take advantage of...
Ben L. Kedia and Ananda Mukherji, Global managers: Developing a mindset from global competitiveness
Book review - 2 pages - Finance
Ben L. Kedia is a Director of the Wang Center for International Business Education and Ananda Mukherji is a Dirctor from ZoomInfo, the largest index of business people in the world (source: Wikipedia) . They emphasize in this article the huge importance of having skills other than technical...
The Ethical Finance Between Paradigm and Paradox
Dissertation - 84 pages - Finance
Linked with morals, with deontology and right, ethics is a reflection towards the research of the Good, a moving concept by essence. What deserves, nowadays, such an imminent questioning on ethics? Because of the increased pressure of the governments, increasing awareness of the organizations...
Michelin : financial case study
Case study - 14 pages - Finance
The world tire market was equal to 80 billion dollars in 2005. That is to say that each year more than 1 billion tires are sold for cars and light trucks. 75% of the sales are for European, North American and Asian countries. Michelin is the leader of this market in those areas because it deals...
Managerial finance, Tesco - publié le 12/06/2008
Case study - 25 pages - Finance
Tesco Plc. is the biggest retailer by sales in U.K (T.N. Sofres, 2012). Its market share has grown since 2010, 30.6 to 2012, 31.5, through 2011, 30.9 (Tesco, 2012). The company recorded revenues of £64,539 million during the financial year ended February 2012, an increase of 13.1 from 2010...
An investigation in to the problems with corporate pension funds
Essay - 12 pages - Finance
Beginning with the New Deal, efforts to secure the social and economic prosperity of employees after retirement have been developed. This process has lead to the evolution of the current system of corporate pension funds. Although millions of American workers invest in these funds each year, few...
Multi - National enterprises
Essay - 7 pages - Finance
A uni national company is an enterprise or a business, a venture which target is to have some customers in order to make some profits. But, it is represented in only one country. They can be smalls or big like the railway company in France SNCF for example. A multinational enterprise (MNE) may be...
Evaluation of Capital Gains Tax Proposals for 2008/09 in UK - publié le 05/06/2008
Essay - 3 pages - Finance
Capital Gains tax (CGT) has been much reformed in history because it is a very complex tax. CGT is "a tax on the increase in the value of an asset between its acquisition and its disposal" (IFS). Chancellor Alistair Darling introduced his Pre-Budget Reporting on 9 October 2007 which showed many...
An Investigation Into the State of Microfinance in Benin (2005)
Essay - 16 pages - Finance
Research on the economic and social development of countries in Africa demonstrates that there are a host of issues that must be addressed in the context of improving daily economic conditions for individual citizens. While some of these issues have been addressed by government agencies and...
When a famous bank ( Société Générale ) is plunged into the world's largest financial fraud ever known by a simple junior trader
Case study - 16 pages - Finance
In January 2008, the financial world was disrupted by the world's largest financial fraud case known to date. The famous French bank, Société Générale, recorded a loss of 5 billion euros due to false positions taken by a junior trader, Jérôme Kerviel. To fully appreciate how he did this, it's...
