This paper analyzes financial institutions' capital allocation decisions when their required equity capital depends on the risk of their projects chosen. We discuss the relevance of strict position limits against discretionary trading through the use of an optimal compensation function. We show...

Using new data for the universe of firms covered in Amadeus, we reconstruct the portfolios of shareholders who hold equity stakes in private and publicly-traded European firms. We find great heterogeneity in the degree of portfolio diversification across large shareholders. Exploiting this...

La exigua rentabilidad media de los fondos de inversión en España en los últimos 3, 5 y 10 años (0,51%, 2,23% y 0,85%) fue inferior a la inversión en bonos del Estado a cualquier plazo y a la inflación. A pesar de estos resultados, los 2.586 fondos existentes tenían un patrimonio de 163...

This paper adopts the Fama and French (1993) methodology for determining the common risk factors in the returns of Canadian stocks. Our results suggest that the three stock market factors, the excess stock market returns, a size factor, and a book-to-market equity factor, explain most of the...

This paper presents a new framework for studying irreversible (dis)investment when a market follows a random number of random-length cycles (such as a high-tech product market). It is assumed that a firm facing such market evolution is always unsure about whether the current cycle is the last...

The interdependence between countries and the importance of the economic links between them has reached an extend unprecedented in history. In the context of globalization, the mobility of production factors may get pressure on governments to reduce taxes in order to remain attractive. Reduction...

For Romania is essential to achieve development project of transport and to integrate the national transport system in technical and operational parameters at European level, because it is a consistent part with rout and rail network.

The budget represents the object of different negotiations between the member states and the European Union’s institutions, on the basis of some clear defined rules. In 1988, after a few years of annual negotiations, EU passed to multi-annual “financial perspectives”, or ensemble...

The problem of the environmental becomes pressing and they have already concerned the international, regional and national organizations. At the international level, there is a new strategy of the United Nations included in the „Millennium Development Goals“(MDG). Besides, the integrated...

The investment decision represents an important agent of the general policy, for the continuation and the increase of their activity. The necessity of achievement some important investments for national railway infrastructure is determined by the present situation of the railway transport...