Financial risk in cross-border M&A: The case of Geely Group-Volvo merger

2017 ◽  
Author(s):  
Zhao Yiyi
Keyword(s):  
Financial Risk ◽  
Cross Border

scholarly journals Financial risk identification and control of cross border merger and acquisition enterprises

2016 ◽  
Vol 14 (144) ◽  
pp. 1368
Author(s):  
Yuanyuan SUI ◽  
◽  
Adelina DUMITRESCU – PECULEA ◽  
Keyword(s):  
Financial Risk ◽  
Merger And Acquisition ◽  
Risk Identification ◽  
Cross Border ◽  
And Control

scholarly journals Cross-border DCF valuation: discounting cash flows in foreign currency

2020 ◽  
Author(s):  
Andreas Schüler
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Financial Management ◽  
Financial Risk ◽  
Foreign Currency ◽  
Weighted Average ◽  
Cash Flows ◽  
Discounted Cash Flow ◽  
Cross Border ◽  
Tax Effects

Abstract The paper seeks to develop a comprehensive framework to cross-border discounted cash flow valuation. Although the literature on company valuation and on international financial management is vast, such a framework has not yet been proposed. We build upon well-known fundamentals and relevant contributions, e.g. on the derivation of the risk-adjusted rate of return. Relevant risks are exchange rate risk, business risk, financial risk, the risk of the tax effects induced by debt financing, and the risk of default. Additional tax effects beyond the well-known tax shield on interest expenses must be considered. Risk discounts from cash flows and risk premia to be added to risk-free interest rates are derived according to the global capital asset pricing model. A conceptual choice occurs not only between the foreign currency and the home currency approach, but also regarding the estimation of future exchange rates. The paper shows how a valuation can be implemented with or without consideration of covariances between cash flows and rate of returns with exchange rates. It also derives the discount rates if forward exchange rates are applied. We discuss the consequences of assuming the uncovered interest parity to hold. We assume deterministic debt and apply the adjusted present value approach. In addition, we derive the RADR to be used in the flow to equity and weighted average cost of capital approach. The paper addresses not only the valuation of a foreign company, but also the valuation of a domestic company that generates cash flows in foreign currency and/or uses debt in foreign currency.

scholarly journals SPILLOVERS EFFECT IN ASIAN PROPERTY PORTFOLIO MARKETS

2019 ◽  
Vol 17 (9) ◽  
Author(s):  
Muhammad Najib Razali ◽  
Muhammad Yusaimi Hamid
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Financial Market ◽  
Policy Maker ◽  
Financial Risk ◽  
Real Estate Market ◽  
Cross Border ◽  
The Subject ◽  
Market Liberalisation ◽  
The Impact

This paper is to study the spillovers effect in Asian property portfolio market to assess the level of volatility. This is important due to investors increasingly set to go international on real estate market. The increase of integration of property portfolio markets from the perspectives of cross border has put the importance to assess the spillovers effect in particular Asian property portfolio market. The impact of a financial crisis has put paramount interest for investor and policy maker to know the level of volatility and consequently the effect on spillovers. In addition, real estate market has also been the subject of financial risk analysis. The globalisation process has given impact to the integration of market which consequently deregulation and financial market liberalisation. Therefore, spillovers effect among Asian portfolio market need to be assessed to increase the level of information as well as transparency of portfolio market.

scholarly journals Trust, Risk and Alternative Website Quality in B-Buyer Acceptance of Cross-Border E-Commerce

2020 ◽  
Vol 28 (1) ◽  
pp. 167-188 ◽  
Author(s):  
Jian Mou ◽  
Yi Cui ◽  
Kerry Kurcz
Keyword(s):  
Perceived Risk ◽  
Financial Risk ◽  
Repurchase Intention ◽  
Privacy Risk ◽  
Website Quality ◽  
Behavior Intention ◽  
Cross Border ◽  
Intention To Purchase ◽  
Trust Transfer ◽  
Trust Transfer Theory

Cross-border e-commerce (CBEC) has become an imperative mode for global trade. Research on cross-border e-commerce historically focuses mainly on the customer's behavior intention to purchase on a CBEC platform. However, B-buyers are more important compared with C-buyers for CBEC platforms. This is because B-buyers can contribute more gross merchandise volume (GMV) in a CBEC platform, and thus more margin for the firm. The authors apply trust transfer theory, perceived risk, and alternative website quality to study repurchase intention, focusing on B-buyers. The results show that perceived risk, trust in provider, and trust in the website affect repurchase intention significantly, where trust in website is found to be the most important factor. In addition, the authors found that the dimensions of perceived risk in CBEC context can be classified as the following: customer duties risk, confiscation risk, delivery risk, financial risk, and privacy risk. The contributions of the study are addressed lastly.

scholarly journals The Economic Effect of Bitcoin Halving Events on the U.S. Capital Market

2021 ◽  
Author(s):  
Dina El Mahdy
Keyword(s):  
Capital Market ◽  
Financial Risk ◽  
Global Financial Crisis ◽  
Intrinsic Value ◽  
Economic Effect ◽  
Use Cases ◽  
Cross Border ◽  
Stock Market Reaction ◽  
Increasing Demand ◽  
The U.S

Bitcoin is a digital asset that was first mined in January 2009 after the global financial crisis of 2007–2008. Over a decade later, there is still no consensus across different market regulations on the classification, use cases, policies, and economic implications of bitcoin. However, there is an increasing demand for digital currency, as an alternative to fiat currency which would spur financial innovation and inclusion. This study reviews regulations on digital assets across countries. It further discusses some use cases for bitcoin to reduce financial risk and facilitate cross border transactions. The study also discusses challenges related to bitcoin such as: cryptocurrencies substitution, cross border financing, cyber risk and security, and benefits in terms of the effect of coronavirus on the speed of capital market innovation and hence bitcoin usage. The study concludes by examining the economic effect of bitcoin halving events on the U.S. capital market to better understand the influence of bitcoin on financial markets and key drivers of its intrinsic value. The empirical evidence from this study suggests that bitcoin halving events are associated with significant negative stock market reaction, signaling a trading tradeoff between cryptocurrencies and U.S. stock markets.

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