Ebook: Encyclopedia of Finance

The Encyclopedia of Finance, Second Edition, comprised of over 1000 individual definitions and chapters, is the most comprehensive and up-to-date resource in the field, integrating the most current terminology, research, theory, and practical applications. Showcasing contributions from an international array of experts, the revised edition of this major reference work is unparalleled in the breadth and depth of its coverage. Part I provides readers with a basic framework for getting up to speed quickly, and has been updated to include over 200 new terms and essays. Part II features 24 new chapters and offers a more in-depth look at the topic through key developments and findings. Part III has also been expanded through the addition of four new appendices. From "asset pricing models" to "risk management," the Encyclopedia of Finance, Second Edition, serves as an essential resource for academics, educators, and students. Table of Contents Cover Encyclopedia of Finance, Second Edition ISBN 9781461453598 ISBN 9781461453604 Preface to the Second Edition Preface to the First Edition About the Editors Contents List of Contributors Part I Terms and Essays 1 Terms and Essays Part II Papers 2 Deposit Insurance Schemes 3 Gramm-Leach-Bliley Act: Creating a New Bank for a New Millenium 4 Pre-funded Coupon and Zero-Coupon Bonds: Cost of Capital Analysis 5 Intertemporal Risk and Currency Risk 6 Credit Derivatives 7 International Parity Conditions and Market Risk 8 Treasury Inflation-Protected Securities 9 Asset Pricing Models 10 Conditional Asset Pricing 11 Conditional Performance Evaluation 12 Working Capital and Cash Flow 13 Evaluating Fund Performance Within the Stochastic Discount Factor Framework 14 Duration Analysis and Its Applications 15 Loan Contract Terms 16 Chinese A and B Shares 17 Decimal Trading in the U.S. Stock Markets 18 The 1997 NASDAQ Trading Rules 19 Reincorporation 20 Mean Variance Portfolio Allocation 21 Online Trading 22 A Critical Evaluation of the Portfolio Performance Indices Under Rank Transformation 23 Corporate Failure: Definitions, Methods, and Failure Prediction Models 24 Risk Management* 25 Term Structure: Interest Rate Models 26 Review of REIT and MBS 27 Experimental Economics and the Theory of Finance 28 Merger and Acquisition: Definitions, Motives, and Market Responses 29 Multistage Compound Real Options: Theory and Application Appendix 30 Market Efficiency Hypothesis 31 The Microstructure/Micro-Finance Approach to Exchange Rates 32 Arbitrage and Market Frictions 33 Fundamental Tradeoffs in the Publicly Traded Corporation 34 The Mexican Peso Crisis 35 Portfolio Performance Evaluation 36 Call Auction Trading1 37 Market Liquidity* 38 Market Makers* 39 Structure of Securities Markets* 40 Accounting Scandals and Implications for Directors: Lessons from Enron 41 Agent-Based Models of Financial Markets 42 The Asian Bond Market 43 Cross-Border Mergers and Acquisitions 44 Jump Diffusion Model 45 Networks, Nodes, and Priority Rules 46 The Momentum Trading Strategy 47 Equilibrium Credit Rationing and Monetary Nonneutrality in a Small Open Economy 48 Policy Coordination Between Wages and Exchange Rates in Singapore 49 The Le Chatelier Principle of the Capital Market Equilibrium 50 MBS Valuation and Prepayments 51 The Impacts of IMF Bailouts in International Debt Crises 52 Corporate Governance: Structure and Consequences 53 A Survey Article on International Banking 54 Hedge Funds: Overview, Strategies, and Trends 55 An Appraisal of Modeling Dimensions for Performance Appraisal of Global Mutual Funds 56 Structural Credit Risk Models: Endogenous Versus Exogenous Default 57 Arbitrage Opportunity Set and the Role of Corporations 58 Equity Premium Puzzle: The Distributional Approach 59 Understanding Ginnie Mae Reverse Mortgage H-REMICs: Its Programs and Cashflow Analysis* 60 An Analysis of Risk Treatment in the Field of Finance 61 The Trading Performance of Dynamic Hedging Models: Time Varying Covariance and Volatility Transmission Effects 62 Portfolio Insurance Strategies 63 Time-Series and Cross-Sectional Tests of Asset Pricing Models 64 Alternative Methods for Estimating Firm's Growth Rate 65 A Comparison of Formulas to Compute Implied Standard Deviation 66 Securities Transaction Taxes: Literature and Key Issues 67 Financial Control and Transfer Pricing 68 Alternative Models for Evaluating Convertible Bond: Review and Integration 69 A Rationale for Hiring Irrationally Overconfident Managers 70 The Statistical Distribution Method, the Decision-Tree Method and Simulation Method for Capital Budgeting Decisions 71 Valuation of Interest Tax Shields 72 Usefulness of Cash Flow Statements 73 Nonlinear Models in Corporate Finance Research: Review, Critique, and Extensions* 74 Futures Hedge Ratios: A Review* 75 Credit Risk Modeling: A General Framework Appendices Appendix A: Derivation of Dividend Discount Model Appendix B: Derivation of DOL, DFL and DCL Appendix C: Derivation of Crossover Rate Appendix D: Capital Budgeting Decisions with Different Lives Appendix E: Derivation of Minimum-Variance Portfolio Appendix F: Derivation of an Optimal Weight Portfolio Using the Sharpe Performance Measure Appendix G: Applications of the Binomial Distribution to Evaluate Call Options Appendix H: Derivation of Modigliani and Miller (M&M) Proposition I and II with Taxes Appendix I: Derivation of Capital Market Line (CML) Appendix J: Derivation of Capital Market Line (SML) Appendix K: Derivation of Black-Scholes Option Pricing Model References Subject Index Author Index

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The Encyclopedia of Finance, Second Edition, comprised of over 1000 individual definitions and chapters, is the most comprehensive and up-to-date resource in the field, integrating the most current terminology, research, theory, and practical applications. Showcasing contributions from an international array of experts, the revised edition of this major reference work is unparalleled in the breadth and depth of its coverage. Part I provides readers with a basic framework for getting up to speed quickly, and has been updated to include over 200 new terms and essays. Part II features 24 new chapters and offers a more in-depth look at the topic through key developments and findings. Part III has also been expanded through the addition of four new appendices. From "asset pricing models" to "risk management," the Encyclopedia of Finance, Second Edition, serves as an essential resource for academics, educators, and students.