This is the first book to put together Asia and the developed world in the subprime crisis context and to combine macro and micro analysis to draw lessons from it. The crisis has valuable lessons for the dergulation of China's insurance industry, which is seen as the 'goldmine' in the future of global financial development.

This book discusses wide topics related to current issues in economic growth and development, international trade, macroeconomic and financial stability, inflation, monetary policy, banking, productivity, agriculture and food security. It is a collection of seventeen research papers selected based on their quality in terms of contemporary topic, newness in the methodology, and themes. All selected papers have followed an empirical approach to address research issues, and are segregated in five parts. Part one covers papers related to fiscal and price stability, monetary policy and economic growth. The second part contains works related to financial integration, capital market volatility and macroeconomic stability. Third part deals with issues related to international trade and economic growth. Part four covers topics related to productivity and firm performance. The final part discusses issues related to agriculture and food security. The book would be of interest to researchers, academicians as a ready reference on current issues in economics and finance.

Following the recent financial crisis, risk management in financial institutions, particularly in banks, has attracted widespread attention and discussion. Novel modeling approaches and courses to educate future professionals in industry, government, and academia are of timely relevance. This book introduces an innovative concept and methodology developed by the authors: active risk management. It is suitable for graduate students in mathematical finance/financial engineering, economics, and statistics as well as for practitioners in the fields of finance and insurance. The book s website features the data sets used in the examples along with various exercises."

How could a small country in the middle of Europe, surrounded by much bigger countries and economic giants like Germany and France and in direct competition with North American and Asian rivals, develop world-class, cutting-edge financial markets? Swiss Finance answers this question, separating myth from reality, by explaining how Switzerland managed dramatic pressures brought to bear on its financial markets during the past two decades, perhaps none of them so great as the: * Competitive challenges caused by changes in Switzerland's banking secrecy laws and practices, * Shifting tide of new wealth generation toward Asia (e.g., China, Singapore, and South Korea), * Burdensome federal stamp and withholding taxes, and * Digitalization of the financial services industry, including cybersecurity, cryptocurrencies, smart contracts, central bank digital currencies, the FinTech revolution, and DLT applications. Swiss Finance thoroughly analyzes Swiss financial markets' successes and challenges. It covers critical topics for practitioners and academics to fully understand this unique development in world financial markets and private wealth administration.

The recent unprecedented economic downturn and global supply chain disruption by the COVID-19 pandemic is accelerating the urgency for sustainable financing infrastructure that is agile, adaptable, and transformable. Sustainability and the 4th Industrial Revolution are about more than just technology-driven change; it is an opportunity to help everyone, including leaders, policymakers and people from all income groups and nations, to navigate industry disruptions and transitioning to a new normal by harnessing converging technologies in order to create an inclusive, human-centered future. The edited volume provides critical discussions on reframing the Islamic finance approach to sustainability and socio-economic development in the post-pandemic era. It highlights how selected Islamic finance tools alongside FinTech can not only ensure financial sustainability but also promote socio-economic policies that will aid the much-desired value and impact creation in the economy. The book focuses its analysis on the following three areas: reframing Islamic finance sustainability and socio-economic development; innovative Islamic financial tools for sustainable and socio-economic impact; and the role of FinTech in the road to sustainability. The edited volume will be of interest to scholars, researchers, and students of Islamic finance, sustainability, and financial technology.

This book analyzes the impact of technology in emerging markets by considering conditions and the history of how it has changed the way of working and market development in such contexts. The book delves into key areas such as fintech enterprises, artificial intelligence, pension funds, stock markets, and energy markets though applied studies and research. This book is a useful read for practitioners and scholars interested in how technology has and continues to change the way in which development is defined and achieved, particularly in emerging markets.

This book analyses the new strategic decisions of the European Central Bank. Contributors from different fields examine especially the sustainability strategy of the ECB: What role can the European Central Bank play in fighting climate change?  ECB President Christine Lagarde has repeatedly confirmed that the central bank wants to play a role in coping with climate change. What will this role be? What instruments does the ECB have to make a difference in challenges such as the defossilization of the economy and transport, biodiversity, the energy transition, resource consumption and other sustainability areas? Is it entitled or obliged to go beyond the classic mandate of maintaining price stability? The volume includes contributions from academics and practitioners from the financial sector, civil society and institutions involved at European level.

Since its first appearance in 1979, Research in Finance has been publishing papers that cover important and interesting issues in finance and economics. The topics found in the series span a wide range; previous volumes have included papers on corporate financial management policy, asset pricing and investment management, corporate control and governance, bank regulations and management, and the analysis of financial derivatives and their applications in risk management and in venture capital investment. These papers, among others, have made significant contributions to the literature.
In this volume, Bajaj, Vijh and Westerfield present evidence showing that ownership structure affects a firm's agency costs of cash flow, which, in turn, influences the market's reaction to changes in the firm's dividend policy. McNabb and Martin examine the relationship between managerial entrenchment and the effectiveness of internal governance mechanisms and the firm performances. In their paper, Kang, Karim and Rutledge apply a relative excess value ratio approach to empirically examine the association between the CEO compensations and the firms' performances. And Almisher, Buell and Kish, using accounting beta as a proxy for ex ante systematic risk of a firm, find a strong positive relationship between the firm's systematic risk and the subsequent degree of underpricing of its IPO.
Also in this volume, Kwan and Wilcox show the disparity between accounting and actual cost reductions in bank mergers, and point out the importance of avoiding the accounting bias in reporting the cost reduction in bank mergers. Gunther and Siems empirically find that a desire to hedge balance sheet positions andhaving a strong capital position are the key motivations for banks' involvement in derivatives activities. Shyu and Reichert examine the key financial and regulatory factors that determine the derivatives activities of both U.S. and foreign banks. In their paper, Yin, Wu and Chen explore the joint effects of the changes in capital regulation and deposit insurance system on banks' returns and risks in Taiwan.
Based upon the one-factor equilibrium term structure model of Cox-Ingersoll-Ross, Chen and Chaudhury examine the market values and dynamic interest rate risks of existing swap positions. Chang and Ho derive formula of duration for different bonds under the Heath-Jarrow-Morton model of term structure and compare the relative performances of dynamic and static immunization strategies. In their paper, Boyle, Byoun and Park use intraday transactions data to show that the S&P 500 index option market leads the cash index, and that the lead-lag relation has resulted in a significant bias of the implied volatility that confirms their theoretical conjecture. Finally, Bubna uses a moral hazard model to address issues in the formation of syndicates in venture capital industry and to present some useful policy implications.
May the contributions within this volume be of significant interest and usefulness to its readers. And may Research in Finance continue to publish papers of the highest caliber, to the benefit of academics and practitioners alike.

Colin Read explores the intricacies of modern financial markets and explains in easy to understand terms the reasons for global financial unrest arising from the sub-prime mortgage crisis and global economic meltdowns. He proposes that a well educated economic citizen is our most effective tool to prevent future financial collapses, like the one witnessed in 2007-2008. He walks us through a number of topics in economics, and connects these topics to real world financial problems. He then leaves us with a series of recommendations that can strengthen the economy and leave it less prone to manipulation. Throughout, he describes the role of globalization and the expected profound impact countries like India and China will have on our economic future.

The untold story of Winston Churchill's precarious finances - and the most original and surprising book about Churchill to emerge for many years. The popular image of Churchill - grandson of a duke, drinking champagne and smoking a cigar - conjures up a man of wealth and substance. The reality is that Britain's most celebrated 20th-century statesman lived for most of his life on a financial cliff-edge. Only fragments of information about his finances, or their impact on his public life, have previously emerged. With the help of unprecedented access to Churchill's private records, David Lough creates the first fully researched narrative of Churchill's private finances and business affairs. As he reveals the scale of Churchill's financial risk-taking, combined with an ability to talk or write himself out of the tightest of corners, the links between the private man and public figure become clear.

This is the sixth volume in a series which examines advances in the quantitative analysis of finance and accounting. It discusses: the pitfall of using intuitive judgement in audit scheduling; the underpricing integration of public offerings; and, the use of accruals in income smoothing.

This book explains how investor behavior, from mental accounting to the combustible interplay of hope and fear, affects financial economics. The transformation of portfolio theory begins with the identification of anomalies. Gaps in perception and behavioral departures from rationality spur momentum, irrational exuberance, and speculative bubbles. Behavioral accounting undermines the rational premises of mathematical finance. Assets and portfolios are imbued with "affect." Positive and negative emotions warp investment decisions. Whether hedging against intertemporal changes in their ability to bear risk or climbing a psychological hierarchy of needs, investors arrange their portfolios and financial affairs according to emotions and perceptions. Risk aversion and life-cycle theories of consumption provide possible solutions to the equity premium puzzle, an iconic financial mystery. Prospect theory has questioned the cogency of the efficient capital markets hypothesis. Behavioral portfolio theory arises from a psychological account of security, potential, and aspiration.

After years of media coverage, do we really understand the financial engineering that brought the global economy to the brink? The lexicon of the markets is laden with terms and acronyms like leverage, securitization, MBS, CDS, and CDO. How can the average person crack the code? Veteran journalist, senior producer at NPR's Marketplace, and Whiteboard Guru. Paddy Hirsch proves it's not impossible to understand what goes on in the glass and steel canyons of Wall Street. In "Man vs. Markets", he shows how most international financial transactions are the same as those taking place in stores, car dealerships, and even playgrounds on Main Street. Bonds? They're basically just loans. Futures? You probably used one when you ordered your Thanksgiving turkey last year. Options? Ever bought a fully transferable, returnable airline ticket? It's pretty much the same thing. Using the humor and the knowledge of everyday experiences, Hirsch offers accessible explanations, anecdotes, and analogies of the instruments that power our financial system and that very nearly caused its demise. "Man vs. Markets" breaks down what, exactly, makes the markets tick and empowers readers, whether they are contemplating an investment, arguing for reform, or simply trying to understand events making news.

Practitioners and researchers who have handled financial market data know that asset returns do not behave according to the bell-shaped curve, associated with the Gaussian or normal distribution. Indeed, the use of Gaussian models when the asset return distributions are not normal could lead to a wrong choice of portfolio, the underestimation of extreme losses or mispriced derivative products. Consequently, non-Gaussian models and models based on processes with jumps, are gaining popularity among financial market practitioners.

Non-Gaussian distributions are the key theme of this book which addresses the causes and consequences of non-normality and time dependency in both asset returns and option prices. One of the main aims is to bridge the gap between the theoretical developments and the practical implementations of what many users and researchers perceive as "sophisticated" models or black boxes. The book is written for non-mathematicians who want to model financial market prices so the emphasis throughout is on practice. There are abundant empirical illustrations of the models and techniques described, many of which could be equally applied to other financial time series, such as exchange and interest rates.

The authors have taken care to make the material accessible to anyone with a basic knowledge of statistics, calculus and probability, while at the same time preserving the mathematical rigor and complexity of the original models.

This book will be an essential reference for practitioners in the finance industry, especially those responsible for managing portfolios and monitoring financial risk, but it will also be useful for mathematicians who want to knowmore about how their mathematical tools are applied in finance, and as a text for advanced courses in empirical finance; financial econometrics and financial derivatives.

Explores challenges for developing and emerging economies for enhancing green financing for sustainable, low-carbon investment, looking at Indonesia. Based on surveys in the Indonesian banking and corporate sectors and expert interviews, it devises innovative policy recommendations to develop a framework conducive to fostering green investments.

A comprehensive guide to managing global financial risk

From the balance of payment exposure to foreign exchange and interest rate risk, to credit derivatives and other exotic options, futures, and swaps for mitigating and transferring risk, this book provides a simple yet comprehensive analysis of complex derivatives pricing and their application in risk management. The risk posed by foreign exchange transactions stems from the volatility of the exchange rate, the volatility of the interest rates, and factors unique to individual companies which are interrelated. To protect and hedge against adverse currency and interest rate changes, multinational corporations need to take concrete steps for mitigating these risks.

Managing Global Financial and Foreign Exchange Rate Risk offers a thorough treatment of price, foreign currency, and interest rate risk management practices of multinational corporations in a dynamic global economy. It lays out the pros and cons of various hedging instruments, as well as the economic cost benefit analysis of alternative hedging vehicles. Written in a detailed yet user–friendly manner, this resource provides treasurers and other financial managers with the tools they need to manage their various exposures to credit, price, and foreign exchange risk.

Managing Global Financial and Foreign Exchange Rate Risk covers various swaps in this geometrically growing field with notional principal in excess of $120 trillion. From caplet and corridors to call and put swaptions this book covers the micro structure of the swaps, options, futures, and foreign exchange markets. From credit default swap and transfer and convertibility options to asset swap switch and weather derivatives this book illustrates their simple pricing and application. To show real-world examples, each chapter includes a case study highlighting a specific problem, as well as a set of steps to solve it. Numerous charts accompanied with actual Wall Street figures provide the reader with the opportunity to comprehend and appreciate the role and function of derivatives, which are often misunderstood in the financial market.

This detailed resource will guide the individual, government and multinational corporations safely through the maze of various exposures. A must-read for treasures, controllers, money mangers, portfolio managers, security analyst and academics, Managing Global Financial and Foreign Exchange Rate Risk represents an important collection of up-to-date risk management solutions.

Ghassem A. Homaifar is a professor of financial economics at Middle Tennessee State University. He has Master of Science in Industrial Management from State University of New York at Stony Brook and PhD in Finance from University of Alabama in 1982. He is the author of numerous articles that have appeared in the Journal of Risk and Insurance, Journal of Business Finance and Accounting, Weltwirtschsftliches Archiv Review of World Economics, Advances in Futures and Options Research,Applied Financial Economics, Applied Economics, International Economics, and Global Finance Journal.

If you know a little bit about financial mathematics but don't yet know a lot about programming, then C++ for Financial Mathematics is for you. C++ is an essential skill for many jobs in quantitative finance, but learning it can be a daunting prospect. This book gathers together everything you need to know to price derivatives in C++ without unnecessary complexities or technicalities. It leads the reader step-by-step from programming novice to writing a sophisticated and flexible financial mathematics library. At every step, each new idea is motivated and illustrated with concrete financial examples. As employers understand, there is more to programming than knowing a computer language. As well as covering the core language features of C++, this book teaches the skills needed to write truly high quality software. These include topics such as unit tests, debugging, design patterns and data structures. The book teaches everything you need to know to solve realistic financial problems in C++. It can be used for self-study or as a textbook for an advanced undergraduate or master's level course.

Read examines probability, risk, and uncertainty through the contributions of John von Neumann, Leonard Jimmie Savage, Kenneth Arrow and Harry Markowitz. These Portfolio Theorists provided us with a dramatic leap forward in our understanding of and insights into financial rewards under risk and uncertainty.

This textbook provides the necessary techniques from financial mathematics and stochastic analysis for the valuation of more complex financial products and strategies. The author discusses how to make use of mathematical methods to analyse volatilities in capital markets. Furthermore, he illustrates how to apply and extend the Black-Scholes theory to several fields in finance. In the final section of the book, the author introduces the readers to the fundamentals of stochastic analysis and presents examples of applications. This book builds on the previous volume of the author’s trilogy on quantitative finance. The aim of the second volume is to present and discuss more complex and advanced techniques of modern financial mathematics in a way that is intuitive and easy to follow. As in the previous volume, the author provides financial mathematicians with insights into practical requirements when applying financial mathematical techniques in the real world.