Corporate Hedging: The Impact of Financial Derivatives on the Broad Credit Channel of Monetary Policy

This complementary paper to Froot, Scharfstein, and Stein (1993) seeks to explore some of the corporate finance foundations of monetary economics. In particular, it investigates the impact of corporate risk management strategies on the monetary transmission mechanism. It employs a simple model of a financial accelerator (synonymously: a broad credit channel of monetary policy transmission) to argue that information asymmetries – which are at the … [ Read more ]

Return of the LBO

“It may not be the glory years, but buyout shops are back, raising billions–and heading into uncharted waters.” An interesting look at the LBO world and the changes it is seeing. Discusses the idea of PIPE (private investments in public equities) and raises the question of whether LBO managers are out of their depth in the New Economy.

Hypertextual Finance Glossary

Claims to be the largest financial glossary on the Internet with over 6,000 entries and 16,000 hyperlinks

InvestorWords

With over 5,000 definitions and 15,000 links between related terms, InvestorWords is a comprehensive financial glossary.

Alfred P. Sloan Jr.

I am not going to say that rate of return is a magic wand for every occasion in business. There are times when you have to spend money just to stay in business, regardless of the visible rate of return. Competition is the final price determinant and competitive prices may result in profits which force you to accept a rate of return less than you … [ Read more ]

Stocks and the Stock Market Resource Center

A set of informative articles from Equity Analytics, Ltd. covering various areas of investments. Sampling of articles: The Short Sale of Stock; Cash Accounts and Margin Accounts; Initial Public Offerings (IPO’s) of Securities; Stock Splits, Reverse Stock Splits, Cash and Stock Dividends…

The Day the IPO Died

The stigma haunting startups that fail to go public can taint their credibility and force them to refocus. And those are the lucky ones.

Company Sleuth

Company Sleuth is an online covert information specialist providing free inside information on publicly traded companies. At the site, users have the ability to stakeout and track company business activities, financial moves, Internet dealings and legal actions. Daily customized updates are delivered via email or wireless application. After selecting the companies you would like to track, Company Sleuth will deliver information on new patents, SEC … [ Read more ]

Elastic Plastic: How Consumers Respond to Changes in Credit Card Limits and Rates

When a credit card company changes interest rates or increases the credit limit of its consumers, how do these consumers respond? The answers are far from predictable, as David B. Gross of the University of Chicago and Wharton’s Nicholas S. Souleles have found out. In a paper titled, “Consumer Response to Changes in Credit Supply: Evidence from Credit Card Data,” Gross and Souleles examine the … [ Read more ]

Historical Statistics on Banking

Historical Statistics on Banking (HSOB), from the Federal Deposit Insurance Corporation provides annual statistical information on the banking industry beginning in 1934, useful for identifying and analyzing long-term trends and developing benchmarks to evaluate the current condition of the banking and thrift industries. The site contains commercial banking reports, savings institution reports, and bank and thrift failure reports from 1934 to 1999. The Milestones feature … [ Read more ]

In Case You Were Wondering, the E-Economy IS Different

Article reviews findings of a report entitled E-Commerce and the CFO: A framework for finance in the new economy, by Andersen Consulting and the Economist Intelligence Unit (EIU) focusing on the impact of e-commerce on corporate finance.