Introduction -- Zombie Businesses in Electronics Industry: Case Studies -- Misallocation of Internal Fund to Loss-Making Zombie Businesses in Electronics Industry -- Slow Downsizing after Mergers of Individual Loss-Making Parts and Components Divisions -- Final Remarks.

This study investigates the determinants and outcomes of raising capital ratios upon the introduction of Basel II and III regulations. The evidence indicates that a bank is more likely to raise its capital base as its capital ratio is lowered. Although equity issuing is rarely used to raise the...

We derive a coherent multi-factor model for pricing various derivatives written on the same underlying (potentially non-tradable) asset. We show the difference between a case in which the underlying asset is self-financed and tradable and a case in which it is not. In the first case, an...

This paper analyzes why the S&P 500 Index is not a self-financed or a tradable portfolio and why it cannot be replaced by a mimicking portfolio such as the SPDR or the Vanguard S&P 500 Index Fund, when applying the standard arbitrage pricing theory. In particular, we show that the nonlinear and...

This paper investigates the determinants of new equity offerings and estimates its costs in sample selection model. The main finding is that a weak capital base is one of the key driving forces of the new issuance around the recently strengthened Basel regulations, although banks were not...