Inside an Internet IPO

Business Week obtained rare access to E-Loan’s IPO process and reports on it. “E-Loan’s experience going public provides a peek into what any IPO prospect might now expect in this volatile market. Its IPO is a tale of giddy highs and exhausted despair, of surprising insights both corporate and personal. It’s a story of how two founders, nearly broke less than two years ago, persevered … [ Read more ]

Stock Prices and Fundamentals in a Production Economy

This paper by the Federal Reserve Board compares the predictions for the market value of firms from the Gordon growth model with those from a dynamic general equilibrium model of production. Special attention is focused on the prediction for movements in the market value of firms in response to a decline in the required return or an increase in the growth rate of the … [ Read more ]

Globalization of Financial Institutions: Evidence from Cross-Border Banking Performance

This 117 page .pdf paper addresses the causes, consequences and implications of cross-border consolidation of financial institutions. It finds that, on average, domestic banks have higher profit efficiencies than foreign banks (with the exception of U.S. banks which operate efficiently at home and abroad). The results do not preclude successful international expansion but they do suggest limits to global consolidation.

Herd Behavior in Financial Markets – A Review

This 33-page .pdf IMF paper provides an overview of recent theoretical and empirical research on herd behavior in financial markets. It addresses the following questions: What precisely do we mean by herding? What could be the causes of herd behavior? What successes hav existing studies had in identifying such behavior? And what effect does herding have on financial markets?

Do Profits Matter?

Business 2.0 put this question to some of the New Economy’s best and brightest. (incl. Mike Bloomberg, Jeff Bezos, Christine Comaford, Nicholas Negroponte, Steve Jurvetson, Geoffrey Moore, Rob Glaser, Patricia Seybold, Guy Kawasaki and more)

Background Report: Employee Stock Options (.pdf)

This .pdf file from the Financial Markets Center offers a closer look at the rise of stock options. The report “summarizes the key trends in the use of stock options and highlights the broader implications of this practice for measuring earnings and conducting national economic policy.” Five points are discussed in this nine-page document, allowing readers to understand the basic principles and problems surrounding stock … [ Read more ]

Buy, Hold or Sell: Do Conflicts of Interest Mar Analysts’ Stock Recommendations?

A growing body of research at several business schools has been examining why many analysts prefer making buy or hold recommendations on stocks. In some cases, at least, analysts’ recommendations may be biased by considerations that could well represent a conflict of interest.

Financial Management Training Center

This excellent site offers 10 (and counting) free, online courses on financial mgmt. Each lesson — on topics incl. Evaluating Financial Performance, Capital Budgeting Analysis, Managing Cash Flow & Risk, and Strategic Planning — is available for download in three formats: .pdf, Word, or as a self-extracting file and should take about two hours to complete. Users may also choose to receive training through one … [ Read more ]

ValuationResources.Com

ValuationResources.com is a clearinghouse for business valuation resources. The information on this site is indexed into eight sections, including publications, industry resources, economic data, public companies, transaction data, and legal & tax resources. The links are all tersely annotated and organized by subject within each of the sections.

Will the U.S. Trade Deficit Inevitably Lead to Monetary Crisis?

With a trade deficit of $400 billion, and a net foreign debt of $4 trillion, the U.S. is headed for monetary meltdown, says C. Fred Bergsten, director of the Institute for International Economics. Bergsten, predicted that the dollar will drop in value by 20% to 25% sometime during the next three years. His advice to the government: Do keep money in the bank and pay … [ Read more ]

Financing News

This site has some interesting articles on issues like Venture Capital, Real Estate, Small Business Financing, and IPOs.

Cash Flow Forecasting: Keeping Your Company One Step Ahead

Gives a concise, basic overview on creating ongoing cash flow awareness in places of business; begins with two case studies, and continues with bulleted points listing ways in which forecasting can benefit companies, common cash flow problems, and basic objectives in cash flow forecasting. Finally, a short section reviews long-term and short-term forecasting methods and practices.

StudyFinance.com

Created and maintained by the U. of Arizona, this site is designed to assist beginning finance students by offering basic information about the study of finance. The online lectures include RealAudio files as well as accompanying handouts and tables. Also includes well-written, basic overviews of topics including ratio analysis, time valuation of money, and capitol budgeting.

Financing Your Business

Idea Cafe’s 40+ Pages of Tips to Help You Get the Money Your Business Needs