We study managerial incentive provision under moral hazard in an environment where growth opportunities arrive stochastically over time and taking them requires a change of management. The firm faces a trade-off between the benefit of always having a manager able to seize new opportunities and...

This paper surveys the current state of the Chinese debt capital markets. As judged by its size and sophistication of its infrastructure the Chinese bond market it is already a leading market globally. China is unusual in that non-financial corporate issues account for a large fraction of the...

Given the sensitivity of stock valuation models to the discount rate k*, it follows that their operational usefulness is significantly dependent upon the accuracy of the estimate of k*. The purpose of this study is to illustrate the use of the geometric mean to estimate k*. The usual approach to...

The theoretical valuation model has been shown to be mathematically equivalent to a price-earnings approach to stock valuation. The theoretical model explicitly includes estimates of long-run dividend (or earnings) growth. Because the price-earnings ratio approach is equivalent, it also...

This study tests whether a "portfolio effect" exists in a given branch bank; i.e., does the addition of branches reduce the variability of demand deposits for the bank? The approach taken is narrower than that in the usual portfolio selection model. The study measures risk by the intrayear...

Macroprudential stress testing (MaPST) is becoming firmly embedded in the post-crisispolicy-frameworks of financial-sectors around the world. MaPSTs can offer quantitative,forward-looking assessments of the resilience of financial systems as a whole, to particularlyadverse shocks. Therefore,...

Since 1978 China has developed strongly using a particular form of capitalism which has relied upon close relations between private enterprise and the state and the continuing presence of state-owned enterprise, both centrally and at local levels. This model has been criticised as being...

In this paper we study how the use of collateral is evolving under the influence of regulatory reform and changing market structure. We start with a critical review of the recent empirical literature on the supply and demand of collateral which has focussed on the issue of 'collateral scarcity'....