This paper explores the properties of pooling of interests (merger) accounting and purchase (acquisition) accounting as currently practised. It also compares these methods with variants of them that involve a greater use of fair values, the extent of valuation on a fair value basis and the...

The micro-economic behaviour of economic agents in the crisis-affected Asian economies, together with the private sector's expanding role in developing countries in general have focused attention on issues of competition, corporate governance and finance. The paper explores the analytical links...

This paper proposes the unobserved fundamental component of volatility as a measure of risk. This concept of fundamental volatility may be more meaningful than observed volatility for market regulators. Fundamental volatility may be obtained using a stochastic volatility model. The authors...

How do industrial and industrialising country corporations finance their investment and what role do the systems of industrial finance and governments play in this process? These explorations reveal that the corporate sectors in industrialising countries finance their investment in a remarkably...

The paper explores the monitoring by 'external Names' (the principals) of 'working Names' (their agents) in the Lloyd's insurance market of the 1970s and early 1980s. The market was relying heavily on external Names to finance its rapid growth; and these principals were dependent upon their...

Although the concept of national competitiveness is widely used by policy-makers at both the national and international levels, it has been the subject of severe criticism by Professor Krugman. He regards it as a meaningless concept and in the hands of naïve policy-makers 'a dangerous...

Economic arguments in support of increases or decreases in accounting and auditing regulation have generally not been supported by empirical evidence as to the magnitude of the costs and benefits. The step-change in the scale of such regulation at Lloyd's between 1982 and 1985 provides evidence...

Motivated by developments in risk-value theory, the author proposes a new utility function which can capture trade-offs between favourable notions of risk and return while exhibiting desirable properties for a financial investor. This function is shown to be sufficient for two fund money...

The purpose of this paper is to consider how to forecast implied volatility for a selection of UK companies with traded options on their stocks. The authors consider a range of GARCH and log--ARFIMA based models as well as some simple forecasting models. Overall, it is found that a log-ARFIMA...

Using two specification tests, the returns from 17 emerging markets and the S&P 500 are tested for Markov regime switching. A trading strategy is formed that invests in the market only when the Markov switching model estimate for probability of a positive returns state in the next period is...