Conventional financial theory considers ex-ante that risk, generally measured by the volatility, has to be appropriately rewarded by expected returns. In modern financial markets, there are countless quantitative and systematic strategies which may test and eventually lead to excess returns when...

Chapter 1. Introduction: Capital Formation, Risk, and the Corporation -- Chapter 2. The Corporation and Other Forms of Business Organization -- Chapter 3. The Corporation Balance Sheet -- Chapter 4. The Annual Operating Statements: The Income Statement and Cash Flow Statement -- Chapter 5....

The USD asset share of non-U.S. banks captures the demand for dollars by these investors. An instrumental variable strategy identifies a causal link from the USD asset share to the USD exchange rate. Cross-sectional asset pricing tests show that the USD asset share is a highly significant...

Terms and Essays -- Deposit Insurance Schemes -- Gramm-Leach-Bliley Act: Creating a New Bank for a New Millennium -- Pre-funded Coupon and Zero-Coupon Bonds: Cost of Capital Analysis -- Intertemporal Risk and Currency Risk -- Credit Derivatives -- Foreign exchange risk premium and policy...