During the subprime mortgage crisis period, the New Century Financial Corporation was the biggest subprime mortgage lender in the United States and declared bankruptcy on April 2, 2007. This paper compared two types of hedge ratios--the hedge ratio before April 2, 2007 and the hedge ratio after...

This article provides a road map to financial stability. The roadmap is created by analyzing successive episodes of financial crisis at various points in time and the regulatory-cum-supervisory responses devised to reduce the chance of future threats to systemic stability. This article provides...

This paper is designed to assist individuals and organizations in understanding the role and risks of derivatives in two specific areas -- debt management and investing. The various risks associated with derivatives are discussed in this article. Similar to collateralized debt obligations (CDOs)...

The number of cross-border mergers and acquisitions has increased considerably after the 2007-2008 financial crisis. However, the post-crisis M&A market has not been studied sufficiently. In this paper, we compare the financial characteristics of the U.S. companies acquired by foreign companies...

This paper examines the pricing of exchange rate risk in up and down world stock market periods using multifactor arbitrage pricing models during the period of January 1973 through June 2007. The risk premium of exchange rate exposure in up market periods appears to be small and insignificant....

This study analyzes the investment horizon from a behavioral point of view by examining the overall influence of different investment horizons on expected returns and risk perception in Indonesia. We used students of Master of Science, Master of Management, and Doctorate Programs at the Faculty...

This paper examines the mean return and volatility spillover effects from the three influential stock markets of the US, Japan, and China to the two emerging stock markets of Indonesia and Malaysia over the sample period from 2005 to 2007. By analyzing GARCH models, we verify that there are...

A considerable amount of research has focused on herding behavior vis-à-vis international capital, either by focusing on theory or by applying simple statistical analyses, but most studies have ignored factors that trigger international capital inflows. In essence, any connection between theory...

Based on the cost efficiency of individual banks, this paper constructs an indicator to clarify Chinese regional banking system’s credit allocation efficiency in accordance with the panel data of the provinces and central-government-administered cities of China. When applying this...

This paper investigates the effect of the introduction of day trading on the Egyptian stock market. We applied a GARCH (1, 1)–GED model on daily returns and volumes of 41 companies listed in the Egyptian Stock market for the period from 2004 to 2008. The results suggest that day trading...