Abstract--The West German Capital Market: Some Empirical Results

In times of a continuously expanding proliferation of investment and financing possibilities in the hands of banks, investment funds and individual capital investors, particular attention should be paid to the effects that new financial instruments are likely to have not only on concrete financing and investing modes but also on the further development of legal rules in this field. As the German capital market has been considered unable - at least until the widely marketed Deutsche Telekom IPO - to get rid of its persisting prejudice of being structurally lagging behind other countries’ systems, the legal treatment of emerging financial instruments deserves greatest attention. The rocket science of new financial instruments challenges law's aim to rightly assess the real quality of these instruments and to strike an adequate balance between the interests involved against a national policy background and EU demands. While the past few years have been a time of great legislative activity in the field of company and capital market law in Germany, only a closer look at court decisions reveals the true pressure resulting from a fast moving capital market on traditional legal perceptions. The so-called Aktienanleihe-Decision by the Federal Court of Justice, [FCJ] (Bundesgerichtshof - BGH) of 12 March 2002 marks an important step in the ongoing process of Germany's developing capital market law.

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Die effektive Durchsetzung kapitalmarktrechtlicher Ansprüche mittels Gruppenklage

10.5771/9783748921868 ◽

2020 ◽

Author(s):

Daniel Blagojevic

Keyword(s):

Collective Action ◽

Group Action ◽

Legal System ◽

Capital Market ◽

Class Action ◽

Eu Law ◽

Class Actions ◽

German Capital ◽

System P ◽

German Constitution

The dissertation examines how collective legal redress in the German capital market law must be structured in order to ensure the effective enforcement of the law by capital market investors. The dissertation analyses the provisions of the German Code of Civil Procedure (ZPO) and specific forms of collective action (group action (Verbandsklage), representative action (Musterklage) and class action (Gruppenklage)). Against the background of the German Constitution and relevant EU law, the author not only discusses various types of class actions both in Germany and certain foreign jurisdictions, but also presents his own effective model for class actions under the German legal system.

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A Study on the Strategic Application of Abnormal Risk-Return Relationship

Journal of Derivatives and Quantitative Studies ◽

10.1108/jdqs-03-2017-b0002 ◽

2017 ◽

Vol 25 (3) ◽

pp. 339-367

Author(s):

Youngmin Choi ◽

Bohyun Yoon

Keyword(s):

Capital Market ◽

Efficient Frontier ◽

Investment Strategies ◽

Traditional Concept ◽

Period Analysis ◽

Empirical Results ◽

Risk Return ◽

High Return ◽

Before And After ◽

Preliminary Study

This paper focuses on the strategic application based on the empirical results of risk-return relationship against the classical concept. Empirical analysis from domestic data, we verify that the traditional concept-‘high risk, high return’ relationship are maintained, however, we confirm the falling pattern in the highest total volatility group. Even though we implies double sorting method to control the well known systematic factor such as BM and size, we still confirm such abnormal risk-return relationship. Furthermore, we perform sub-period analysis before and after the liberalization of Korean capital market and we find such abnormal risk-return relationship is appeared after the liberalization. Based on our empirical results, we establish and verify the new benchmark that evenly allocate highest volatility portfolio to sub-volatility portfolio. Under the new benchmark, we confirm the expansion of the efficient frontier and the improvement of Sharpe ratio. We believe that our results provide an applicability research of smart beta strategy and new benchmark based on such strategy. We expect our research to be used as preliminary study to overcome the era of “new normal” and to reform the investment strategies correspond to segmentation of benchmark.

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Differences in Investment Concepts between Chinese and Western Investors from the Cultural Perspective

Modern Economics & Management Forum ◽

10.32629/memf.v2i6.594 ◽

2021 ◽

Vol 2 (6) ◽

Author(s):

Zhiming Gong

Keyword(s):

Cultural Differences ◽

Capital Market ◽

Public Information ◽

Cultural Perspective ◽

Short Term ◽

The West ◽

Independent Decision ◽

Investment Portfolios ◽

The Capital Market

The investment concept, reflecting the investor's investment purpose and willingness, is a value that embodies the investor's investment personality characteristics, prompts investors to carry out investment analysis, judgment, decision-making, and guides investor behaviors. Due to different maturity of the capital market in China and Western countries, there are many differences in the regulatory level, cultural and behavioral patterns of the supervision and management departments of the capital market between Chinese and Western investment philosophy. This article analyzes the differences in investment ideas between Chinese and Western investors from the culture perspective. This thesis studies on the basis of four cultural differences: "The Golden Mean" and "Interest Maximization"; the face-culture and individualism; rule of man and rule of law; and gambler psychology and adventure spirit. Based on these four aspects of cultural differences, four different investment concepts of Chinese and Western investors are analyzed: long-term investments and short-term speculation; "Herd Effect" and independent decision; grapevines and public information; and leveraged trading and allocation of funds. This thesis adopts several cases to analyze the differences between Chinese and Western investors in financial products such as stocks, gold, and futures, and in investment behavior such as the long-term investment, short-term speculation, leveraged trading, and investment portfolios. With cultural differences between China and the West probed into, the differences between Chinese and Western investors' investment concepts are justified. It is hoped that this effort will help investors deepen the understanding of the capital markets in China and the West, enable Chinese investors to learn the Western mature investment concepts, and facilitate the regulators to manage the capital market effectively.

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