In principle, bank capital serves two functions. It represents i) the value of shareholder equity and ii) the value of the buffer stock available to absorb unexpected losses. The calculation of expected loan losses and the provisioning to cover these losses enables a clearer picture of the...

The authors argue clearly and convincingly in this book that the debt crisis which has plagued the world economy for the past ten years is due to the inherent fragility of financial markets. Governments, financial institutions and borrowers, including developing countries, have simply expected...

Two problems are identified in the treatment of loan-loss provisions under the Basle Accord as modified in 1991. It is suggested that a distinction should be made between expected and unexpected loan losses and that the former should be treated in the same way that identified losses are. That...

In this paper we develop the case for the creation of a single financial supervisory and regulatoryauthority for the Russian Federation. This case is based on three criteria:(a) it enables economies of scope to be exploited(b) it ensures regulatory parity(c) it satisfies prudential logicThe risk...

This paper explores alternative methods for computing earnings per share (EPS) for a company whose capital structure consists of ordinary shares and warrants. The methods for computing EPS identified by the FASB (1996) are critically evaluated and an alternative measure, the holding period...

This paper investigates the abnormal share return dispersion occurring when companies announce their interim or final earnings. Whereas, prior research has focused on abnormal returns, little attention has been given to investigating the dispersion of the abnormal returns. We find strong...