« Why I Think Markets are Efficient Market efficiency, discovered by Eugene Fama, is the theory that at any given time, the prices of the market fully reflect ...» Document abstract
$1.95
2 word format
Language : english
finance
presentation
date published
04/09/2007
review : not yet assessed
level : Advanced
requested 7 times
SummaryMarket efficiency, discovered by Eugene Fama, is the theory that at any given time, the prices of the market fully reflect all available information on a particular stock or and/or the market. Therefore no individual investor has any advantage over any other as all information is shared by everyone. This is known as the efficient market hypothesis, and is very controversial. I assert that markets are efficient in a semi strong form, and argue against people that believe otherwise.
Table of Contents- The efficient market hypothesis breaks market efficiency into three categories
- The predictions and valuation of stocks has a direct effect on the capital asset pricing model
- In order for this compensation to be accurately judged into the future, risk must be assessed
- There are several valid arguments against market efficiency
- There is no clear cut correct answer to the efficient market hypothesis and there is no way for anyone to say which is absolutely correct
« the other hand, international financial markets do not We therefore think this lack of expertise is illustrated by the ex-post efficient frontier represented ...» Document abstract
$8.95
9 word format
Language : english
finance
presentation
date published
15/11/2006
review : not yet assessed
level : Expert
requested 12 times
SummaryThe main theme of this project is the facilitation and development of microfinance, which is the “provision of loans, savings, insurance, payments, and other basic financial services to low-income populations” .
The project is dedicated to identifying and evaluating existing options for microfinance institutions (MFIs) who wish to access the funds necessary to take advantage of the huge potential market for microfinance. This topic is particularly important as the current lack of funds remains the major growth constraint for the microfinance industry.
Global capital markets would enable MFIs to raise capital for lower rates and longer terms than local financing. Ways for MFIs to access global capital markets are therefore explored in details. The following three sources of commercial financing are then outlined and evaluated in the context of MFIs: bonds, securitization and (quasi-)equity.
However, although microfinance can be profitable, investors remain reluctant to invest in MFIs. We identify the main concerns preventing substantial investment in this area as: concerns over the inadequate risk-return profile, a lack of expertise or experience in the area, operational problems such as pricing, liquidity and legal issues and the perception of microfinance primarily as a form of charity. We then propose ways to deal with these concerns and promote investment in microfinance.
We demonstrate not only how microfinance can offer a relatively low level of systematic risk through its low volatility and weak correlation with political and economic events, but also how it offers a good opportunity for diversification. After showing certain comparability between investments in venture capital and microfinance, we suggest targeting venture capital investors as a priority in gaining access to equity capital.
Having explored and concentrated on the financial aspects of microfinance, we then remind the reader of huge benefits it represents in terms of poverty reduction in under-developed countries.
We conclude by mentioning some further challenges faced by microfinance, such as risk hedging, especially in the context of exchange rate risk, and achieving the three factors that determine a country’s ability to manage microfinance efficiently: political stability, economic security and cultural readiness.
The project is dedicated to identifying and evaluating existing options for microfinance institutions (MFIs) who wish to access the funds necessary to take advantage of the huge potential market for microfinance. This topic is particularly important as the current lack of funds remains the major growth constraint for the microfinance industry.
Global capital markets would enable MFIs to raise capital for lower rates and longer terms than local financing. Ways for MFIs to access global capital markets are therefore explored in details. The following three sources of commercial financing are then outlined and evaluated in the context of MFIs: bonds, securitization and (quasi-)equity.
However, although microfinance can be profitable, investors remain reluctant to invest in MFIs. We identify the main concerns preventing substantial investment in this area as: concerns over the inadequate risk-return profile, a lack of expertise or experience in the area, operational problems such as pricing, liquidity and legal issues and the perception of microfinance primarily as a form of charity. We then propose ways to deal with these concerns and promote investment in microfinance.
We demonstrate not only how microfinance can offer a relatively low level of systematic risk through its low volatility and weak correlation with political and economic events, but also how it offers a good opportunity for diversification. After showing certain comparability between investments in venture capital and microfinance, we suggest targeting venture capital investors as a priority in gaining access to equity capital.
Having explored and concentrated on the financial aspects of microfinance, we then remind the reader of huge benefits it represents in terms of poverty reduction in under-developed countries.
We conclude by mentioning some further challenges faced by microfinance, such as risk hedging, especially in the context of exchange rate risk, and achieving the three factors that determine a country’s ability to manage microfinance efficiently: political stability, economic security and cultural readiness.
Table of Contents- Accessing the Global Capital Markets
- Financing Environment
- Bond Market
- Securitization
- Equity and Quasi-equity
- Overcoming the limitations of the current financing model
- Addressing investorâs main concerns
- The attractiveness of the risk-return profile
- Attracting equity investors
- Social return: a new dimension to investment
The results of the “Lisbon agenda” – the attempt to make Europe the world’s most successful knowledge-based economy – are generally thought to have been disappointing. What steps should be taken by the European Union, and by national governments, to impro
« developed financial sector, more flexible labour markets and a strategy needs the active and efficient contributions by But I think it would be dangerous to ...» Document abstract
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5 word format
Language : english
economics
presentation
date published
20/04/2007
review : not yet assessed
level : Expert
requested 5 times
SummaryIn March 2000, the Lisbon Strategy was launched to overcome a series of weaknesses in the European economy: long-term structural unemployment, a poor employment rate, and under-development of the service sector. In an often-quoted sentence, it has therefore assigned the EU “a new strategic goal for the next decade: to become the most competitive and most dynamic knowledge-based economy in the world, capable of sustainable economic growth, with more and better and greater social cohesion”. The mid-term results published five years after the launch reveal that the focus on knowledge is right but that the sense of urgency is lacking, leaving Europe lagging behind the objectives set and behind the benchmark model of the Unites States. Moreover, Europe is also loosing ground vis-à-vis other competitors such as China and India, which have been growing at substantially higher rates. The mid-term report also declares that the social and environmental aspects of the Lisbon Agenda were no longer a priority and that instead the strategy would be revised to focus on the economic context only.
Hence, in order to keep the Lisbon strategy alive, drastic changes are necessitated, which this paper aims at presenting. Due to the word limit, only major recommendations from the literature review on the future steps to adopt are offered here. However, due to the complexity of the European situation, the focus is wider than on the sheer economic context.
Hence, in order to keep the Lisbon strategy alive, drastic changes are necessitated, which this paper aims at presenting. Due to the word limit, only major recommendations from the literature review on the future steps to adopt are offered here. However, due to the complexity of the European situation, the focus is wider than on the sheer economic context.
Table of Contents- Ambitious goals set
- Structural changes
- The Lisbon strategy of 2000 sets the ambitious goal (among others) of achieving an Labour markets
- Education and research
- ICT sector
« It affects on how we think, what we decide to do Company will be more efficient on the international market company opens for itself new windows on new markets. ...» Document abstract
$7.95
8 word format
Language : english
management
presentation
date published
05/02/2006
review : not yet assessed
level : Advanced
requested 4 times
SummaryMost of companies employ people from different culture and want to manage them in order to use in the best way as possible this diversity. The management of this kind of workers must be adapted. To become a real international competitive advantage, cultural diversity in the company has to be seriously managed and thought. It can lead to a great success but also causes the failure of a company unable to manage it. The knowledge of the cultural diversity do that firms obtain a real international competitive advantage. Firms must develop a good understanding of the culture of others countries if they want to be efficient on the market. For instance Americans could lose Japanese clients if they fail to understand that Japanese use a period politeness to signal their intentions, the Europeans could be offended by the Americans with their informality such as standing with their hands in their pockets. To avoid such problems the necessary preparations is to become aware on cultural and language differences.
In this essay, we will show how the culture can be an international competitive advantage for the companies but also what can be the main problems of these phenomena. We will use the example of the company York which uses the cultural diversity in the best way.
In this essay, we will show how the culture can be an international competitive advantage for the companies but also what can be the main problems of these phenomena. We will use the example of the company York which uses the cultural diversity in the best way.
Table of Contents- Definitions
- Problems with cultural diversity
- Advantages of cultural diversity
- Case studies: YORK
Les internautes ont également acheté « From the perspective of efficient markets, there can be reasonable had access to the auction markets: flowers sold The English auction is what we think as the ...» Document abstract
$9.95
16 word format
Language : english
finance
presentation
date published
23/11/2006
review : not yet assessed
level : Expert
requested 53 times
SummaryInitial Public Offerings (IPOs) have a very special place in contemporary economics and finance. They represent the entrance on a deep and liquid market with access to almost unlimited reserves of capital from all over the world. But IPOs appear also as a short-term fund-raising tool, especially used during the high tech bubble of the late 1990s from new, innovative and invincible-looking start-up companies from the Silicon Valley. In those years, investment bankers (who set up IPOs for the companies going public) thrived and were sacred “kings of capitalism” by The Economist. Since then, the euphoria vanished but IPOs continued at a respectable pace.
Between 1980 and 2001, the number of IPOs in the US exceeded one per business day. The distribution was not equal: in 1999 and 2000 alone, 900 companies went public. What is more, the IPO business has reached global importance, raising $167 billion around the world in 2005 with 1537 operations. During the period 1998-2004, North America represented 27% of the global market, Europe, Africa and the Middle East combined 42% and Asia-Pacific 31%. The trends of globalization are thus reflecting on the IPO business worldwide: dominance of the US market (on a country basis comparison) and rise of East Asia (especially China).
In a system dominated by market financing, flotation appears often to be a mandatory step in the life of a company above a certain size. We do not discuss in this paper IPOs under this perspective of structural necessity; rather we question the short-term stakes of going public. Besides the strategic choice to be listed on the stock market, what are the immediate objectives of an IPO? It has certainly become, especially since the internet bubble, a corporate financing tool, along with private equity and mergers and acquisitions, aimed at raising funds in a short period of time. Thus, we consider here IPOs under this aspect of short-term financing, even if it has obviously much broader implications.
We can define the objectives of an IPO for a company as follows: raise the maximum value possible through the flotation, and assure a stable and, if possible, increasing price in the aftermarket. The second objective depends partly on the first one, which is basically the direct result of the sale price. Setting the price of the stock to be traded publicly is the greatest challenge in the IPO process, as it determines the equity allocation among investors and the subsequent trading price on the market. Financial theories give no final answer as to what method is the best. Hence the perpetuation of the academic debate.
We have chosen to envision IPOs, the challenges they pose to efficient markets and the theoretical answers to those, through game theory. This approach allows us to detect where inefficiencies occur, what the different motivations of the actors involved are and what possible solutions have been proposed and tested. Game theory appears to us as the best tool to study market inefficiencies by offering a special opportunity to have a critical outlook on market mechanisms and the effects of strategic interaction upon them.
Therefore, we will first present the challenges which IPOs pose to efficient markets (section one). Then we will detail an alternative mechanism for setting the price in an IPO process – auctions: what are their advantages and drawbacks (section 2)? Finally, we will study the flotation of EDF, one of the greatest IPOs in the world in the last years, a rare example of overpricing and also a subject of polemics in France (section 3).
Between 1980 and 2001, the number of IPOs in the US exceeded one per business day. The distribution was not equal: in 1999 and 2000 alone, 900 companies went public. What is more, the IPO business has reached global importance, raising $167 billion around the world in 2005 with 1537 operations. During the period 1998-2004, North America represented 27% of the global market, Europe, Africa and the Middle East combined 42% and Asia-Pacific 31%. The trends of globalization are thus reflecting on the IPO business worldwide: dominance of the US market (on a country basis comparison) and rise of East Asia (especially China).
In a system dominated by market financing, flotation appears often to be a mandatory step in the life of a company above a certain size. We do not discuss in this paper IPOs under this perspective of structural necessity; rather we question the short-term stakes of going public. Besides the strategic choice to be listed on the stock market, what are the immediate objectives of an IPO? It has certainly become, especially since the internet bubble, a corporate financing tool, along with private equity and mergers and acquisitions, aimed at raising funds in a short period of time. Thus, we consider here IPOs under this aspect of short-term financing, even if it has obviously much broader implications.
We can define the objectives of an IPO for a company as follows: raise the maximum value possible through the flotation, and assure a stable and, if possible, increasing price in the aftermarket. The second objective depends partly on the first one, which is basically the direct result of the sale price. Setting the price of the stock to be traded publicly is the greatest challenge in the IPO process, as it determines the equity allocation among investors and the subsequent trading price on the market. Financial theories give no final answer as to what method is the best. Hence the perpetuation of the academic debate.
We have chosen to envision IPOs, the challenges they pose to efficient markets and the theoretical answers to those, through game theory. This approach allows us to detect where inefficiencies occur, what the different motivations of the actors involved are and what possible solutions have been proposed and tested. Game theory appears to us as the best tool to study market inefficiencies by offering a special opportunity to have a critical outlook on market mechanisms and the effects of strategic interaction upon them.
Therefore, we will first present the challenges which IPOs pose to efficient markets (section one). Then we will detail an alternative mechanism for setting the price in an IPO process – auctions: what are their advantages and drawbacks (section 2)? Finally, we will study the flotation of EDF, one of the greatest IPOs in the world in the last years, a rare example of overpricing and also a subject of polemics in France (section 3).
Table of Contents- IPOs and challenges to market efficiency
- IPOs and the Issue of Information
- Distortion mechanisms and waste of value through underpricing
- The key role of investment banks
- The auction model for setting the price: a viable alternative ?
- The main features of the auction model
- Game theory and auctions
- An illustration with Google’s IPO
- A case sStudy of EDF’s IPO
- Main characteristics of the state-initiated offer
- Winners and losers in EDF’s IPO
- Lessons from the IPO: the case for overpricing?
« the group as to make it productive and efficient. In highly competitive markets, organizations have to make moods augment the ability to think flexibly and to ...» Document abstract
$5.95
6 word format
Language : english
business strategy
research papers
date published
03/10/2007
review : not yet assessed
level : Expert
requested 20 times
SummaryKnowledge economy integrates effectively knowledge aiming to enhance organizational performance, competitiveness, and corporate social responsibility. Being a source of innovation and creativity, it attains organizational competence through the proficient and continual exchange of knowledge, it produces agile organizations and it contributes to socio-economic growth. Additionally, it enables countries to realize better results with a finer exploitation of the readily available resources they possess towards the improvement of living standards in terms of health, affluence and future progress. Furthermore, it facilitates the discovery of new opportunities for organizations and the formation of entrepreneurship-oriented societies.
Effective integration of knowledge necessitates the leverage of the major challenge of globalization. Rapid technological changes and information concentration call for heavy investment in information technology. Gathering, processing and evaluating information in the first instance, and converting it into knowledge in the second instance is a strategic goal for organizations. By bringing down interdepartmental barriers and facilitating company-wide availability and distribution of information, knowledge is disseminated within the organization.
Effective integration of knowledge necessitates the leverage of the major challenge of globalization. Rapid technological changes and information concentration call for heavy investment in information technology. Gathering, processing and evaluating information in the first instance, and converting it into knowledge in the second instance is a strategic goal for organizations. By bringing down interdepartmental barriers and facilitating company-wide availability and distribution of information, knowledge is disseminated within the organization.
Table of Contents- Introduction
- Effective integration of knowledge necessitates the leverage of the major challenge of globalization
- A Contextual Approach to Knowledge Economy
- Cultural / Structural Dimensions of Knowledge Economy
- Where Does Emotional Intelligence Fit in Knowledge Economy?
- Emotional Intelligence and Organizational Knowledge
- Emotional Intelligence and Organizational Performance
- Emotional Intelligence and Leadership
- Conclusion
« while developing its interests in rapidly growing markets (such as TOTAL designed fuels for new more efficient engines such And we think that for the bus it is ...» Document abstract
$9.95
16 word format
Language : english
marketing
case study
date published
27/11/2006
review : not yet assessed
level : Advanced
requested 80 times
SummaryTotal is a leading multinational energy company with 111, 401 employees and operations in more than 130 countries. Together with its subsidiaries and affiliates, Total is the fourth largest publicly-traded oil and gas integrated company in the world. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to the gas downstream (including power generation), transportation, refining, petroleum product marketing, and international crude oil and product trading. Total is also a world-class chemicals manufacturer.
Total’s global businesses are divided into three segments:
The Upstream encompasses our oil and natural gas Exploration and Production operations, along with our Gas and Power activities.
The Downstream covers Trading and Shipping, Refining and the Marketing of TOTAL and Elf brand petroleum products, automotive and other fuels, and specialties such as LPG, aviation fuel and lubricants, through both the retail network and other outlets worldwide.
Chemicals includes Petrochemicals, Specialties, Fertilizers and Elastomer processing and Arkema, a new entity including Vinyl Products, Industrial Chemicals and Performance Products.
In 2004, Total delivered remarkable operational and financial performances and was one of the world’s fastest-growing, best-performing oil companies. Over a period of five years, the Group’s hydrocarbon production has increased by 25%.
This growth is being supported by a clearly defined strategy and a determination to continuously improve performance while respecting our commitment to corporate social responsibility.
Total’s global businesses are divided into three segments:
The Upstream encompasses our oil and natural gas Exploration and Production operations, along with our Gas and Power activities.
The Downstream covers Trading and Shipping, Refining and the Marketing of TOTAL and Elf brand petroleum products, automotive and other fuels, and specialties such as LPG, aviation fuel and lubricants, through both the retail network and other outlets worldwide.
Chemicals includes Petrochemicals, Specialties, Fertilizers and Elastomer processing and Arkema, a new entity including Vinyl Products, Industrial Chemicals and Performance Products.
In 2004, Total delivered remarkable operational and financial performances and was one of the world’s fastest-growing, best-performing oil companies. Over a period of five years, the Group’s hydrocarbon production has increased by 25%.
This growth is being supported by a clearly defined strategy and a determination to continuously improve performance while respecting our commitment to corporate social responsibility.
Table of Contents- Introduction of the company.
- History.
- Facts about total.
- Strategy.
- General analysis about total.
- Respect of the regulations, norm and audit.
- Porter five forces.
- Value chain analysis.
- Eco-performance matrix.
- Products analysis.
- Leveraging oil and gas resources.
- Renewable energy.
- Improving product.
Les internautes ont également acheté « developed the Discounted Dividend Model, argued that investors think a dividend in In efficient markets, however, there is not always favorable impact on share ...» Document abstract
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23 word format
Language : english
finance
presentation
date published
11/07/2006
review : not yet assessed
level : Expert
requested 32 times
SummaryDividend policy is one of the most important financial policies, not only form the viewpoint of the company, but also from that of the shareholders, the consumers, the workers, regulatory bodies and the Government. For a company, it is a pivotal policy around which other financial policies rotate. Value of the corporate securities depends to a great extent on dividend and, therefore, in deciding upon the financial structure of a company, dividend has to be assigned due consideration.
Once a company makes a profit, the board of directors must decide what to do with those profits. They could continue to retain the profits within the company, or they could pay out the profits to the owners of the firm in the form of dividends.
Once a company decides to pay dividends, there should be established a somewhat permanent dividend policy, which would impact on investors and perceptions of the company in the financial markets providing information concerning the firm’s performance. The choice of the appropriate dividend policy depends on the preferences of investors and potential investors as well as on the company’s capital structure and its future plans.
The board of directors holds a fiduciary position both with regard to the company as well as shareholders. The board of directors must combine the three decisions pertaining to investment, financing and dividends simultaneously as these three decisions are interrelated. Dividend policy decision influences the financing decision of the firm through retained earnings. Financing decision would relate to the amount of funds to be raised from external sources as the investment needs of a firm can be fulfilled by a combination of retained earnings and external financing. Therefore, higher the amount of retained earnings, given the investment needs, lower will be the need for external finance and vice-versa.
Once a company makes a profit, the board of directors must decide what to do with those profits. They could continue to retain the profits within the company, or they could pay out the profits to the owners of the firm in the form of dividends.
Once a company decides to pay dividends, there should be established a somewhat permanent dividend policy, which would impact on investors and perceptions of the company in the financial markets providing information concerning the firm’s performance. The choice of the appropriate dividend policy depends on the preferences of investors and potential investors as well as on the company’s capital structure and its future plans.
The board of directors holds a fiduciary position both with regard to the company as well as shareholders. The board of directors must combine the three decisions pertaining to investment, financing and dividends simultaneously as these three decisions are interrelated. Dividend policy decision influences the financing decision of the firm through retained earnings. Financing decision would relate to the amount of funds to be raised from external sources as the investment needs of a firm can be fulfilled by a combination of retained earnings and external financing. Therefore, higher the amount of retained earnings, given the investment needs, lower will be the need for external finance and vice-versa.
Table of Contents- BACKGROUND ON DIVIDENDS & THREE BASIC THEORIES
- Background
- Irrelevance of Dividend Policy
- Tax Preference Theory
- The Bird-in-the-Hand Theory
- DIVIDEND POLICY IN PRACTICE
- Confusion of Empirical Tests & Factors That Influence Dividend Policy
- Setting a Dividend Policy
« are finally pointing out that "efficient" education, that The French have to think about what reality inflation is getting lower thanks to globalised markets? ...» Document abstract
$4.95
5 word format
Language : english
political science
presentation
date published
05/04/2007
review : not yet assessed
level : Advanced
requested 2 times
SummaryOn 9 December 1905, a law was passed in France separating the church and the state. However, today in the United States of America, the President takes an oath on the Bible to preserve, protect and defend the Constitution against all enemies both foreign and domestic. To the French, it may sound inconceivable to see President Jacques Chirac basing his speech on Bible verses. So what do Americans think when Mr Sarkozy, a free-market defender, quotes Jean Jaurès, the founder of the communist paper L’Humanité? Actually, each country has its own way of thinking, even if they have similar cultures.
The French 2006 labour protests were analysed quite differently; many journalists linked these demonstrations with the 2005 civil unrest in France. Other nations compare these demonstrations with what has happened in their own countries. By observing what the whole world thinks about a local problem is one of the best ways to understand what the real cause of it is. This is why we will look into the international press to go deeper into the 2006 labour protests issue.
The French 2006 labour protests were analysed quite differently; many journalists linked these demonstrations with the 2005 civil unrest in France. Other nations compare these demonstrations with what has happened in their own countries. By observing what the whole world thinks about a local problem is one of the best ways to understand what the real cause of it is. This is why we will look into the international press to go deeper into the 2006 labour protests issue.
Table of Contents- A very high youth unemployment rate
- The connection with the 2005 civil unrests
- A necessity to reform
- Demonstrations quite difficult to be taken seriously
- France lives too much with its past
- The tyranny of the minority
knowledge network
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