Finance Project

Finance is the art of funds management. The field of finance deals with the concepts of time, money, risk and how they are interrelated. This section is dedicated to finance project, mba finance projects, finance project reports sample, mba finance project topics, project ideas, mba finance projects download, finance project list for students, final year mba finance project titles, project for mba finance.

Managing mission-critical IT in the financial industry

Over the last few years, IT has played crucial role in firms. So profitable execution of economic techniques often relies on mission-critical IT-solutions. Handling this kind of IT is complicated. Corporations have to keep up with rapid improvements, but also consider long-term outcomes while doing this. How do they survive in the long term without giving up in the short term? What should be carried out in-house? What should be bought from external providers? How should they allocate scarce IT resources? This guide answers these questions about the groundwork of four cases from the financial industry. After describing and analyzing IT portfolios, it looks into the queries of sourcing and technology adoption. Lastly, it explores the connection between mission-critical IT and business operations. Case study suggests types of methods analyzing the role applications play in a company rather than the applications independently. The personality of an application may be in the eye of the beholder. Framing applications from both business and IT perspectives is also significant, specifically in information intensive organizations. The Resource Allocation Matrix offers a tool for … [Read more...]

Divestiture announcements in Australia : causes and consequences

This research examines 663 divestiture announcements around australia from 1987 to 1997. Such Australian data allow independent tests of various hypotheses documented in comparable studies on U.S. data. Valuation effects in reaction to such announcements are persistently, however weakly, positive for both the divesting parents and also the acquiring firms. Various causes and motives to divest are researched. Empirical results support that high leverage, poor prior performance, low profitability, and increasing geographic focus are usually causes for management to divest, and guide to positive market reaction. Findings are commensurate with the two financial distress and the bankruptcy avoidance hypotheses documented in the corporate restructuring literature. For long-term outcomes, empirical evidence implies that divestitures present viable and prevalent tools for firms to restructure in reaction with a decline in operating performance. Firms that adopt divestitures following many years of deterioration, for instance increasing leverage, decreasing performance and decreasing profitability, could experience some kind of turnarounds in the years pursuing the operational actions. Are … [Read more...]

Practical Application of Modern Portfolio Theory

The purpose of this thesis is to investigate if an investor can apply Modern Portfolio Theory (MPT) in order to achieve a higher return than investing in an index portfolio. Combining a strong portfolio that beats the market in the longrun would be the ultimate goal for most investors.The theories that are used to analyze the problem and the empirical findings provide the essential concepts such as standard deviation, risk and return of the portfolio. Further, diversification, correlation and covariance are used to achieve the optimal risky portfolio. There will be a walk-through of the MPT, with the efficient frontier as the graphical guide to express the optimal risky portfolio. Contents 1 Introduction 1.1 Background 1.2 Problem discussion 1.3 Research Questions 1.4 Purpose 1.5 Delimitations 1.6 Pre-study & Approach 1.7 Disposition of the Thesis 2 Frame of Reference 2.1 Expected Return 2.2 Standard Deviation 2.3 Portfolio Risk 2.4 Diversification 2.5 Covariance 2.6 Systematic and Unsystematic Risk 2.7 Relation between Risk and Return 2.8 Modern Portfolio Theory 2.8.1 Efficient Frontier 2.8.2 Capital Allocation Line and … [Read more...]

Standard setting and competition in securities settlement

This paper examines the impact of messaging and technical standards on competition in the supply of se-curities transaction management services. Two simple switching cost models are used to clarify the im-pact of standards on barriers to entry and on the incentives to adopt harmonised and simplified securities processing standards. Policy implications are discussed briefly. Introduction: This paper discusses the role of standard setting as it affects competition in securities settlement, paying particular attention to the implications for the development of pan-European and global arrangements for securities settlement. Standard setting for messages and ‘interoperability’ of securities settlement systems has become a central practitioner issue in the past few years. This has happened for two main reasons. The first is the widespread desire in the industry for greater automation of post-trade processing,achieving as great a degree of ‘straight through processing’ or STP as possible. This goal has been promoted in particular by a recent report of the Group of Thirty on global securities processing (G30, 2003). The second reason is the efforts to remove or reduce the various barriers … [Read more...]

Exchange rate exposure, corporate hedging and firm market value

The report examine whether exchange rate movements affect firms’ values and the impact of hedging on exchange rate exposure and the market value of firms. In the first essay, I empirically examine the firm-specific exchange rate exposure of Japanese multinational corporations (MNC). Exchange rate exposure is defined as the effect of exchange rate changes on the value of a firm. Although financial theory suggests that exchange rate movements should affect the value of a multinational corporation, most previous studies have failed to document significant exchange rate exposure. One major reason for the failure may be the specification of the regression model--in particular, the inappropriate selection of the exchange rate index. I study the problem by using detailed exchange rate data and propose a method to construct a firm-specific exchange rate index for each Japanese MNC based on the number and location of their subsidiaries. In addition, to account for the possibility that exchange-rate crises may have a different impact on a firm from the periods of normal exchange rate fluctuations, I incorporate a crisis indicator in the standard exchange rate exposure regression model … [Read more...]

Project: Collateralized Debt Obligations – Informal Transaction Transparency

The relative low interest rate in the first part of the new millennium spurred on demand for mortgage financing and by extension also fueled the housing market, primarily in the United States. Subprime loans were incorporated into and repackaged into various ABS. As the house prices declined and the subprime mortgages resetting at increasingly higher rates of interest, borrower defaults. Many equity and mezzanine tranches of MBSs and by extension CDOs were wiped out. The problem of not knowing which securitization investments were good and which were bad led to a halt in investment altogether. Aim and purpose: The main purpose of this study is to qualitatively explore the information exchange between originator and investor of a CDO security. A further purpose of this study is to complement the existing research in the mapping of a CDO transaction. Methodology: This paper examines the human factor in the originator-investor environment of a CDO transaction. Thus, a qualitative approach to the problem is used. Interviews with people at some of the largest financial institutions of the market, actively involved in the investment decision on both originator and investor side has been … [Read more...]

Accounting, Stock Markets and Everyday Life

The setting in this dissertation is certainly one ubiquitous aspect of each day living: the stock market. Traditionally, marketing and stock investing arenas are logically coordinate entities and that thesis examines how accounting helps private investors on their part as investors - as investors in shares and people who own firms. This analysis is conducted in four self-sufficient essays. The primary two essays analyze the privatization of Telia, an ancient state-owned Telecommunication Company in Sweden that went public in 2000. The area material for the two essays comprised of magazine articles, government bills and interviews. Qualitative and quantitative analyses demonstrate how accounting is employed among different actors to obtain the privatization. Theoretically, the earliest two essays lend themselves to the governmentality debate as exposed to accounting research by Miller and Rose (1990). The third and fourth essays are analyses of annual general conferences (AGMs). The sector material was created from the research of participants at 36 AGMs throughout the springtime of 2004. Contents: Accounting, Stock Markets and Everyday Life 1. Introduction to accounting, stock … [Read more...]

The Term Structure of Interest Rates: Estimation and Interpretation

This document reports the currently used term structure estimation method at the Bank of Finland and discusses interpretation of the results it generates. We start by introducing two widely used term structure estimation methods: the Cubic Spline Function method and the Nelson-Siegel approach. We compare their results, paying special attention to the smoothness of forward interest rates and distribution of pricing errors. Next, we introduce the Bank of Finland's method, commenting on its strengths and weaknesses. Finally, we discuss interpretation of the term structure of interest rates with emphasis on the inflation expectations and the role of the time-varying risk premia. Introduction: One of the oldest problem in economic theory is the interperation of the term structure of interest rates. It has been long recognized that the term structure of interest rates conveys information about economic agent's expectations about future interest rates, inflation rates and exchange rates. Author: Juha Seppälä,Petri Viertiö Source: Research Discussion Papers, Bank of Finland Download This Paper Download URL 2: Visit Now … [Read more...]

Monopoly rights can reduce income big time

We ask which part of the observed cross-country differences in the level of per capita income can be accounted for by monopoly rights in the labour market. We answer this question in a calibrated growth model with two final goods sectors. The novel feature being that monopoly rights in the capital-producing sector shield insiders from competition by outsiders and permit coalitions of insiders to choose inefficient technologies or working practices. We find that monopoly rights can lead to quantitatively much larger reductions in the level of per capita income than previously demonstrated. This comes about because they do not only reduce TFP in capital-producing sector but also increase the relative price of capital. This reduces the capital-labour ratio in the whole economy. The implied predictions about the price of capital goods relative to consumption goods and the investment share in output are quantitatively consistent with the cross-country facts. Introduction: There are large cross-country differences in the level of per captia income. For example, the penn world Table of 1996 report taht the average per capita income of the richest ten percentile of countries is about … [Read more...]

Eiffciency and costs of payments: some new evidence from Finland

This paper deals with optimal payment systems. The issue boils down to how large are the costs of different payment media, which can be interpreted as a question of the efficiency of the means of payment. However, there are other qualifications related to the choice of payment media. Here, at least three issues can be distinguished. First is the question of optimal payment medium for each individual payment (size, location, EFTPOS etc.). This choice is not independent of the individual characteristics of the payer and payee. Secondly, there is the question of cost effectiveness of payments for different institutions and sectors. The final issue concerns the social optimum for each payment medium. These issues have been particularly controversial in the case of cash, which is still the dominant payment medium in most euro countries. Part of the controversy arises from the fact that the costs and benefits of different payment media affect different market participants in quite different ways, so that a possible social optimum might not correspond eg to the optima for different firms. The paper contains a short review of calculation methods and empirical results for a sample of … [Read more...]

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