Managing the pain of knowledge-based mergers

Mergers and acquisitions are supposed to create value. For professional service firms (PSFs), which are knowledge-based organizations, this value is created through gaining access to and making effective use of new sources of knowledge. It can be the technical knowledge needed to deliver a professional service or the client knowledge required to tailor that service to a client's needs - and ideally it should be both.

Updated: 21/10/2011
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Views: 14,172

The ‘Credit Crunch’ in Asia: problems or opportunities?

Whilst the 'credit crunch' has its antecedence in the US residential property sector - one of its least global sectors - its impact has spread directly and indirectly.

Updated: 03/11/2011
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Views: 5,158

To trade or not to trade: the strategic trading of insiders around news announcements

Author(s):

Meziane Lasfer

Industry:
Banking

Professor Lasfer will examine the reasons why insiders trade, and the significant role private information plays in insider trading, as well as look at portfolio changes due to these activities.

Updated: 06/03/2012
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Views: 6,791

Managing currency risk

Author(s):

Lucio Sarno

Industry:
Banking

The forward bias arises from the well-documented empirical rejection of the Uncovered Interest Parity (UIP) condition, which suggests that forward exchange rates are a biased predictor of future spot exchange rates. In practice, this means that high interest rate currencies tend to appreciate rather than depreciate.

Updated: 06/03/2012
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Views: 7,419

Is more IT offshoring better? An exploratory study of western companies offshoring to South East Asia

In their article, "Is more IT offshoring better? An exploratory study of western companies offshoring to South East Asia," published in the Journal of Operations Management, authors Ajay Bhalla, ManMohan S. Sodhi, and Byung-Gak Son, examine the link between a company's performance and the extent of its offshoring of IT-enabled services, with a focus on large western companies.

Updated: 02/11/2011
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Views: 11,471

Assessing the benefits of international portfolio diversification in bonds and stocks

Author(s):

Lucio Sarno

This paper considers a stylized asset pricing model where the returns from exchange rates, stocks and bonds are linked by basic risk-arbitrage relationships.

Updated: 31/05/2012
Comments:
Views: 5,227

Arbitrage in the foreign exchange market: turning on the Microscope

Author(s):

Lucio Sarno

This paper investigates the presence and characteristics of arbitrage opportunities in the foreign exchange market using a unique data set for three major capital and foreign exchange markets that covers a period of more than seven months at tick frequency, obtained from Reuters on special order.

Updated: 27/10/2011
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Views: 5,051

Trading probability and turnover as measures of liquidity risk: evidence from the U.K. stock market

Author(s):

Stephen Thomas

Industry:
Banking

This paper utilises monthly data from the U.K. stock market to examine possible regularities in variables (trading probability and fractional turnover) which may be (or may be hypothesised to be) associated with liquidity risk. Modelling is based upon extensions to the CAPM involving variables closely similar to those employed in the Fama-French three factor model (albeit using Dividend Yield in place of the Book to Market ratio). Our findings suggest that the measure of trading probability used here is a close substitute for the market capitalisation measure associated with the 'Size' effect; and that the fractional turnover variable makes a significant contribution as an addendum to a three factor model.

Updated: 31/05/2012
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Views: 4,801

Openness, hedging incentives and foreign exchange exposure: a firm-level multi-country study

Using a sample of 3,788 firms from 23 developed countries for the period 1984-2003, we show that the more open the economy the more exposed are its firms to exchange rate movements, and this relation holds after controlling for firm size, industry and several financial variables.

Updated: 21/10/2011
Comments:
Views: 5,014