This book analyzes in depth all major derivatives debacles of the last half century including the multi-billion losses and/or bankruptcy of Metallgesellschaft (1994), Barings Bank (1995), Long Term Capital Management (1998), Amaranth (2006), Soci¨¦t¨¦ G¨¦n¨¦rale (2008) and AIG (2008). It...

Standard methods for financial controls of multinational corporations’ (MNCs) foreign subsidiaries generally provide inadequate managerial support under conditions of extreme environmental turbulence, resulting in a highly distortive performance evaluation system. This article examines the...

This paper reviews the literature on Foreign Exchange Risk Management (FERM) which has burgeoned during the last decade. Scholars' and practioners' emerging interest in Foreign Exchange Risk Management was spurred by the advent of fluctuating exchange rates in the early seventies as well as by...

Key Features:Includes simple graphs or numerical illustrations to enhance readers' understanding of the complex world of derivatives and financial engineering step-by-step, story-by-storyUses actual case studies to introduce college students, finance professionals and general readers to the...

International business (IB) research has long acknowledged the importance of supranational regional factors in building models to explain phenomena such as where multinational corporations (MNCs) choose to locate. Yet criteria for defining regions based on similar factors vary substantially,...

International business research has paid scant attention to whether and how electoral politics and economic policies affect foreign investment risk assessment, particularly in developing countries, where the last decade has seen both considerable foreign investment and domestic progress toward...

We question previous research assuming that privatizing firm performance generally benefits from decreasing state ownership and the passage of time, both of which purportedly align principal–agent incentives promoting organizational decision-making that increases shareholder value. When state...

Rating agencies play a pivotal role in international credit transactions. Their sovereign risk-assessments are largely thought to reflect objective evaluations of the creditworthiness of potential borrowers. We test this assumption by examining the role that competitive positioning and dynamics...