This book argues that that the rise of great firms - those with sustainable high return on invested capital (ROIC) - will lay the foundation for China's successful economic transformation. Drawn from the author's research on corporate finance and the Chinese economy, the author maintains that being big could be easy but means little for corporate China, especially in the context of China's transition from an investment-led economy to an efficiency-driven one. The work discusses both internal and external impediments that lead to lack of great companies in China and suggests institutional conditions which foster the rise of great companies in China, including, reversing the government's obsession with GDP, reforming the financial system, and promoting entrepreneurship. Policy makers, investors, corporate executives, and MBA students and scholars will appreciate case studies of Huawei, Alibaba, Xiaomi, and Lenovo, among others, that illustrate the endeavors made by Chinese entrepreneurs at the grassroots level and highlight what makes successful companies in China.

This book introduces the "strike of default" (SOD) benchmark concept. The author determines the SOD through cross-sectional pricing between the credit market and the option market, considering the same underlying. The idea of the SOD is to combine the implied probability of default from both markets to get a time-depending share price, at which the markets believe the underlying will default. By means of credit default swaps (CDS) and option pricing methods, the SOD is determined for any exchange-listed company, where option and CDS market data are available.

This book analyses the connections between the banking industry in Europe and the companies it finances. Ferretti specifically studies how these bonds have evolved over time and questions whether now is the time for a change in the relationship's dynamics. Chapters discuss the role of bank lending in firms' financing during the recent financial crisis, as well as issues in credit risk management. The discussion also examines regulatory requirements impacting banks and firms (Basel III) and how they intersect with banks' internal purposes. Moreover, the book explores how the financial crisis has impacted the relationship between banks and businesses, and seeks to identify the strengths and weaknesses inherent to it. Through this timely discussion, Ferretti looks to the future of the relationship between banks and non-financial organizations to see how they can be revitalised, adapted and reimagined in a post-crisis economy.

The edited collection brings into focus the meanings, interpretations and the process of value creation in international business. Exploring value creation in the context of emerging and developed economies, Volume 2 takes the perspective of small and medium sized enterprises and examines various approaches to value creation in the process of firm internationalization. Providing theoretical and practical insights, the authors open an intellectual debate into what value is, and how it is created through the internationalization activities of firms. Value Creation in International Business is a pioneering two volume work intended to provoke theoretical and empirical development in International Business research. Moreover, it is intended as a bridge between concepts derived from general business firm-level research agendas such as value creation and business model, and internationalization approaches and activities of firms.

The book aims to collect the most recent research and best practices in the cooperative and networking small business field identifying new theoretical models and describing the relationship between cooperation and networks in the small business strategy context. It examines different concepts and analytical techniques better understand the links between cooperative strategies and networks in small business. It also studies the existing economic conditions of network and strategic implications to small business from the point of view of their internal and external consistency. Cooperation and networks is a fashionable topic. It is receiving increasing attention in popular management publications, as well as specialized academic journals. Cooperation between firms and industries is a means of leveraging and aggregating knowledge also generating direct benefits in terms of innovation, productivity and competitiveness. Various options and decisions made within the framework of strategic alliances may be identified and differentiated. For example, it has been argued that R&D cooperation between competing firms also facilitates the search for incremental efficiency gains and is thus a competitive advantage. In parallel with a theoretical acceptance of the importance of a sustained competitive advantage to formulate strategy, there is a growing understanding that cooperative and networking behavior among small firms is at the root of many success stories in today's small business management. This condition requires an effort to develop a study of both aspects of cooperation and networks as compatible, complementary facets of a unique reality. In short, the cooperative and networking relationships of a small business can be the source of its competitive advantage. Enhancement of local resources and capabilities for the generation and dissemination of knowledge is still an issue for defining public policies in many countries.Featuring contributions covering such topics as green innovation, social commerce, university cooperation networks, and regional entrepreneurship, this book provides a comprehensive and richly illustrated study of cooperation and networks in small business that will be pertinent to students, academics, professionals, scholars, and policy makers.

From the mid-1970s until the crisis in 2007, the world of finance enjoyed thirty euphoric years as the general public, businesses and governments put their blind trust in financial techniques, professions and institutions. Shaken up by a structural crisis and a crisis of legitimacy, today's financial sector can no longer afford to avoid the issues summed up by the key question: what is next for the role of ethics and responsibility in finance? Many see an unbridgeable gap between ethics and responsibility and financial practice. Ethics and Responsibility in Finance paves the way for the dialogue that is needed in order to solve the current problems and allow the return of a refined ethical thinking in the financial sector. This book opens with an in-depth analysis of the operational implications of two key notions: ethics and responsibility. It then addresses ethical dilemmas that are characteristic to each of the three actors involved in any financial transaction. This begins with the discussion of the dilemmas of the ultimate owner of funds: the individual or collective saver, as in the case of pension funds. The analysis then turns to financial intermediaries such as banks, insurance companies, asset managers, and consultants, who work in a web of different loyalties. Finally, the dilemmas of the user of funds are addressed - the household taking a mortgage, an enterprise or a public authority which borrows - all of which have to be clear on the reasons and values driving their decisions. This volume is of great interest to those who study banking, corporate finance and ethics philosophy.

This book presents selected papers on the factors that serve to influence an individual's capacity in financial decision-making. Initial chapters provide an overview of the cognitive factors affecting financial decisions and suggest a link between limited cognitive capacity and the need for financial education. The book then expands on these cognitive limitations to explore the tendency for overconfidence in decision-making and the interplay between rational and irrational factors. Later contributions show how credit card companies benefit from limitations in consumer financial literacy, how gender and cognition intersect to play an important role in financial decision-making, and how to improve financial capacity through financial literacy and education campaigns, including those addressing developed marketplaces. This comprehensive collection of papers will be of value to all readers who seek to better understand the multi-factorial and complex nature of personal financial management in today's economic climate.

Since their explosion in the mid-1990s, mergers and acquisitions (M&As) have turned into a global phenomenon with growing prevalence. A large number of theoretical and empirical studies focus on cross-border deals from several perspectives, such as motives, strategic issues, and performance. Most books treat these studies as specific characteristics of M&As, paying little attention to the distinctive elements that differentiate them from domestic operations. In short, there is now a real need for a fresh review and categorization of cross-border deals. Cross-Border Mergers and Acquisitions is the first book to provide readers with a complete guide to understanding the main concepts, theories, and results driving cross-border M&As. Morresi and Pezzi present an original framework that ties together the growing body of theoretical and empirical studies on the topic. This work describes the relevance of the phenomenon in terms of its economical, geographical, and historical impact, and analyzes the market- and accounting-based performance of cross-border deals.

This book contributes to our understanding of the reasons for the uneven geographic emergence and distribution of innovative start-ups and human capital, analyzing the role of the regional knowledge base and specifically academic knowledge. Using extensive datasets from West German regions and advanced econometric tools, it confirms a strong relationship between the presence of higher education institutions and the emergence of innovative start-ups. It also shows that the influence increases in direct relation with the innovativeness of the respective start-up, and that certain fields of knowledge are more influential than others in fostering innovative start-ups. In a second step, the multidimensional concept of quality of life is used to explain the geography of human capital across West German regions. Based on these empirical findings, the book shares valuable insights for higher education and regional development policy.

The book examines the market reaction to mergers and acquisitions (M&A) announcements over a period from 2003 to 2015. Mergers and acquisitions continue to be amongst the preferred competitive options available to the companies seeking to grow fast in the rapidly changing global business scenario. M&A as a growth strategy has received attention from developed as well as emerging economies. It has been extensively used by managers as an expansion strategy and also serves as an important instrument for increasing corporate efficiency. Recently, M&A has grown at a rapid pace, creating a need for research to analyze what drives this phenomenon and how it affects firms and markets. As such, this book evaluates the impact of M&A on short-term abnormal returns as well long-term financial performance. It also assesses the management view concerning the motives for undertaking M&A. In addition, the book investigates the corporate governance practices of the acquiring firms and their impact on the short- term as well as long- term performance of those firms.

This volume focuses on the latest findings concerning financial environment research and the effects on business. Major topics addressed range from finance-driven globalization, contagion risk transmission, financial sustainability, and bank efficiency, to oil price shocks and spot prices research. Further topics include family business, business valuation, public sector development and business organization in the globalized environment. This book features selected peer-reviewed articles from the 16th EBES conference in Istanbul, where over 270 papers were presented by 478 researchers from 56 countries.

De Lange suggests a new contextually linked building block model to develop theories of the firm in the field of strategy and organizations. Using this approach, she proposes two models: one that is a realistic American version and another that is a futuristic sustainable model. Both are new networked models that integrate current theories; a review of international corporate governance supports the sustainable firm that solves problems of the current one. Through a revised theoretical lens, the book answers a provocative question surrounding modern corporate America: Who wields the power? In this investigative look at the institutional mechanisms behind who is truly running the show, Cliques and Capitalism seeks to not only explain why the current corporate system fails to function well, but also offers solutions for improved corporate governance through a new sustainable model.

Financial Communications showcases why it is crucial for financial institutions to enhance key communication processes, rebuild trust with its customer base, improve relationships, and derive better brand awareness amongst key stakeholders within the industry.

The major financial scandals of the past decade, which have been discussed exhaustively in corporate offices by corporate attorneys, and in accounting firms, have led to the passage of massive Congressional enactments in the United States that impact the world of finance. The enactment of the Sarbanes-Oxley Act in 2002, with its significant provisions of 20-year imprisonment for certain offenses, and the conviction of Enron's CEO and other senior executives, finally caught the attention of corporate executives. Laws and Regulations in Global Financial Markets presents students, researchers, and practitioners with an in-depth global analysis of the legal and regulative aspects of corporate financial markets. Readers are introduced to international developments concerning rules and regulations impacting investment advisers and broker-dealers, bankruptcy law, important legal changes influencing banks and credit ratings organizations, real estate regulations, and insurance law. The book concludes with a discussion of personal finance, financial literacy, and federal statutes centered around the subject matter.

Corporate Governance and Finance Law is designed to educate students, researchers, and practitioners on the legal aspects of corporate financial markets within the United States, the Eurozone, and China.

There is little doubt that corporate governance has become one of the key issues for students of business management in the 1990s. This text is the first to draw together the various strands of the debate from economics, finance, and accounting perspectives, and from an international angle that includes discussion of the issues as they relate to governance in the UK, USA, Germany, Japan, and Eastern Europe. The editors identify four main approaches to Corporate Governance. These approaches can be divided into four models:The Principal-Agent or Finance Model; The Myopic-market Model (short-termism); The Abuse of Executive Power; and The Stakeholder Model. Topics covered include: the role of institutional investors the corporate board the market for corporate control management buy-outs and venture capital regulation and auditing governance in the public sector This will be an essential purchase for anyone studying corporate governance whether on an undergraduate degree or MBA.;This book is intended for college: Students of Business, Economics and Accounting taking options in business policy, industrial organization, financial reporting, or corporate governance. Academic: Academics i

Peak Load and Capacity Pricing lays out clear pricing strategies for understanding peak load and capacity pricing structures, further cementing electricity's role as an asset class with fixed and variable costs.

This book focuses on microeconomic foundations of capital structure theory. It combines theoretical results with a large number of examples, exercises and applications. The book examines fundamental ideas in capital structure management, some of which are still not very well understood in the business community, such as Modigliani and Miller's irrelevance result, trade-off theory, pecking-order theory, asset substitution, credit rationing and debt overhang. Chapters also cover capital structure issues that have become very important following the recent financial crisis. Miglo discusses the ways in which financial economists were forced to look critically at capital structure, as the problems faced by many companies stemmed from their financing policies following the crisis. The book also discusses links between capital structure and firm's performance, corporate governance, firm's strategy and flexibility, and covers such topics as life cycle approach to capital structure management, capital structure of small and start-up companies, corporate financing versus project financing and examples of optimal capital structure analyses for different companies. This comprehensive guide to capital structure theory will be of interest to all students, academics and practitioners seeking to understand this fast-developing and critical area of business management.

This book aims to overcome the limitations the variations in bank-specifics impose by providing a bank-specific valuation theoretical framework and a new asset-side model. The book includes also a constructive comparison of equity and asset side methods. The authors present a novel framework entitled, the "Asset Mark-down Model". This method incorporates an Adjusted Present Value model, which allows practitioners to identify the main value creation sources of a particular bank: from asset-based cash flow and the mark-down on deposits, to tax benefits on bearing liabilities. Through the implementation of this framework, the authors offer a more accurate and more specific approach to valuing banks.

The inventive process is the most important driver of economic growth. Venture capital (VC) funds have contributed a small, but critical, part to the inventive process. VC funds boost the inventive process by selecting a small number of radical ideas out a large flow of ideas and invest in their testing, development and commercialization. They bring together capital from general savings, management capabilities and business experience. When successful, VC-backed companies can contribute substantially to the welfare of society. In this book, VC funds are discussed in the context of macroeconomics, industrial organization, financial intermediation and financial economics. The authors adopt a comprehensive overview to provide clearer insight into the role of VC funds in the capital market and the way they operate.

"In his splendid handbook for institutional investors, James Montier combines the insights he has gained as a practitioner, with the insights he has gleaned reading the academic literature in behavioural finance. Most importantly, Montier identifies key lessons to help institutional investors mitigate their susceptibility to psychologically-induced errors and biases". Professor Hersh M. Shefrin, Leavey School of Business & Administration, Santa Clara, University

"Behavioural Finance is unique in combining in a practical way the insights of a very experienced investment practitioner with a very readable review of what the research evidence tells us. This book is essential reading for all serious students of market behaviour and any investor wanting to know how behavioural finance can be used to enhance investment returns". Professor Richard Taffler, Head of Finance and Accounting, Cranfield School of Management, UK

"Behavioural finance abandons the assumptions of investor rationality and suggests that people do make mistakes in a consistent and predictable manner. Investors need to understand the herd if they want to make sense and profit from today's markets. James Montier's accessible book soundly guides the reader from behavioural finance theory to application. Don't grapple with the academic literature - just read Montier". Christian E Elsmark, Investment Director, JPMorgan Fleming Asset Management

This book covers all important financial innovations for SME financing, and combines theoretical analysis and real world practices employed in China's financial market. As China is increasingly becoming a key player in the global economy, the book helps readers gain a better understanding of the current structure and operation of, as well as future changes in, the Chinese economy. Given the high likelihood of RMB joining the IMF's SDR in the near future, this book offers a well-timed publication that will prove valuable for a broad readership, either as a reference book or as a guide to understanding, researching, teaching on and making business decisions about China and related issues.