scholarly journals Stock Performance When Facing the Unexpected

2020 ◽  
Author(s):  
Alfonso Dufour
Keyword(s):  
Financial Markets ◽  
Economic System ◽  
Cash Flows ◽  
Stock Performance ◽  
Systemic Risks ◽  
Asset Values ◽  
The World ◽  
End Of The World ◽  
Future Cash Flows ◽  
Flexible Models

The COVID-19 crisis has had enormous costs. The effects on financial markets were exacerbated by panic, fear of the unknown, fear of the end of the world as we knew it. This panic obfuscated our ability to make rational predictions on future cash flows and asset values. Overall though, our economic system is bouncing back. We can learn from this experience and build more flexible models which can help us to better manage severe systemic risks.

scholarly journals China’s Experience in the Process of Financial Globalization

2021 ◽  
pp. 194-205
Author(s):  
Ekaterina Ryaskova
Keyword(s):  
Financial Markets ◽  
World Market ◽  
Financial Globalization ◽  
Capital Liberalization ◽  
Systemic Risks ◽  
The World ◽  
The Stability ◽  
The Moment ◽  
National Systems ◽  
Positive Results

The article examines the country’s strategy to “enter” the process of financial globalization. China’s embrace of globalization differs from many countries. In globalization processes, the financial component began to play a key role, giving multidirectional impulses to the development of the world economy. Financial globalization has engulfed all developing countries, which began to deregulate financial markets and promote capital liberalization, exposing national systems to systemic risks. The author proves the nature of China’s policy of “entering” the process of financial globalization, alternative from other countries, and describes the stages of introducing restrictions on the flows of speculative capital, the development of the stock market, as well as step-by-step decisions of the authorities to liberalize the conditions for the entry of foreign capital into the country. The article proves that the “moderate” nature of China’s strategy, the late opening of financial markets gave positive results for the country’s economic growth and the stability of the financial system. At the moment, China is actively opening its economy to foreign investors and capital without “shocks” and sets itself the goal of becoming a player that forms the rules in the world market.

Private Equity Net Asset Values and Future Cash Flows

2019 ◽  
Vol 95 (1) ◽  
pp. 191-210 ◽  
Author(s):  
Tim Jenkinson ◽  
Wayne R. Landsman ◽  
Brian R. Rountree ◽  
Kazbi Soonawalla
Keyword(s):  
Private Equity ◽  
Fair Value ◽  
Cash Flows ◽  
Systematic Bias ◽  
Private Equity Fund ◽  
Fund Managers ◽  
Asset Values ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Future Cash Flows

ABSTRACT This study analyzes whether fair value estimates of fund net asset values (NAVs) produced by private equity managers are accurate and unbiased predictors of future discounted cash flows (DCFs). We exploit the fact that private equity funds have finite lives to compare reported NAVs to DCFs based on realized cash flows for 384 Venture Capital (VC) funds and 195 Buyout funds spanning 1988–2016. Findings reveal that Buyout funds' NAVs display little systematic bias, but VC funds' NAVs are relatively aggressively biased compared to Buyout funds, especially since 2000. Accuracy is worse in the first half of the sample period even though NAV estimates generally are more conservative. Overall, the results reveal significant differences in the association between NAVs and DCFs for Buyout versus VC funds, which is particularly important for private equity fund investors in their consideration of the relevance and reliability of NAV estimates provided by fund managers.

PRICING SECURITIES WITH EXCHANGE-IMPOSED PRICE LIMITS VIA RISK NEUTRAL VALUATION

2007 ◽  
Vol 10 (03) ◽  
pp. 399-406 ◽  
Author(s):  
ARIE HAREL ◽  
GIORA HARPAZ ◽  
JACK CLARK FRANCIS
Keyword(s):  
Financial Markets ◽  
Cash Flows ◽  
Price Limits ◽  
Price Fluctuation ◽  
Futures Exchanges ◽  
The Us ◽  
Risk Neutral ◽  
Security Price ◽  
Security Valuation ◽  
Future Cash Flows

Asian and European financial markets impose daily price fluctuation limits on individual securities. In the US several futures exchanges are regulated by price fluctuation limits as well. The price limits in most exchanges are set daily, and they are usually based on a percentage change from the previous day's closing price. We show that the future cash flows of a security subject to price limit regulation resemble that of a distinctive contingent claim. Assuming that the security price follows a lognormal distribution, we use the risk-neutral valuation relation (RNVR) developed by [4] to derive the security valuation, in the presence of price fluctuation limits. The characteristics of the pricing formula are examined analytically and numerically.

scholarly journals Gazing into the Abyss of Indebted Society: The Social Power of Money and Debt

2018 ◽  
Vol 16 (4) ◽  
pp. 279-288 ◽  
Author(s):  
Andreas Antoniades
Keyword(s):  
Economic System ◽  
Student Loans ◽  
Social Power ◽  
Social Sustainability ◽  
Cash Flows ◽  
The Social ◽  
Young Students ◽  
Surplus Population ◽  
Future Cash Flows

Ever larger parts of life and nature are integrated in our socio-economic system as future cash flows, augmenting obscure, unstable and unsustainable debt structures. The larger and deeper these debt structures grow, the larger, more multifaceted and destructive the inequality divide in our societies becomes. It is now normal for people to live indebted, as it is normal for young students to have their future monetised through student loans, the debt implications of which may never escape. What forces normalise these abnormal and unsustainable patterns and our rather admissive/submissive response to them? How our lives and future have been monetised and where have our social consent and agency been in these processes? Is there a way out, before crossing the boundary of social sustainability and environmental collapse? The three books examined here offer refreshing and complementary perspectives on these ‘big questions’ on which our monetised future depends. Di Muzio T and Robbins RH (2016) Debt as Power. Manchester: Manchester University Press. Lazzarato M (2015) Governing by Debt. South Pasadena, CA: Semiotext(e). Soederberg S (2014) Debtfare States and the Poverty Industry: Money, Discipline and the Surplus Population. London: Routledge.

Private Equity Net Asset Values and Future Cash Flows

2015 ◽  
Author(s):  
Tim Jenkinson ◽  
Wayne R. Landsman ◽  
Brian Rountree ◽  
Kazbi Z. Soonawalla
Keyword(s):  
Private Equity ◽  
Cash Flows ◽  
Asset Values ◽  
Future Cash Flows

scholarly journals Money Makes the World Go Round

1996 ◽  
Vol 26 (103) ◽  
pp. 197-225 ◽  
Author(s):  
Michael Heine ◽  
Hansjörg Herr
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Economic System ◽  
New Developments ◽  
The Real ◽  
Bretton Woods ◽  
Monetary System ◽  
The World ◽  
Economic Sphere ◽  
The Stability

The mticle critizises the marxist thesis, that the monetary system has been broken frcc from the real economic sphere. But the authors agree that there are quantitative and qualitative new developments in the financial markets, particularly since the Bretton-Woods-system has col!apsed. These developments are described and analysed. lt is discussed, if these changcs threaten the stability of the economic system. The mticle concludes with some proposals for a new monetary policy.

The world and Russia: Inflation is minimal, economic growth is slowing, risks are rising

2019 ◽  
pp. 5-23 ◽  
Author(s):  
Mikhail V. Ershov ◽  
Anna S. Tanasova
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
World Economy ◽  
Domestic Demand ◽  
New Combination ◽  
Russian Economy ◽  
The World ◽  
World Economic ◽  
Money Creation ◽  
Main Factors

Russian economy has reached the low level of inflation, but economic growth has not accelerated. Moreover, according to official forecasts, in the following years it will still be low. The article concludes that domestic demand, which is one of the main factors of growth, is significantly constrained by monetary, budgetary and fiscal spheres. The situation in the Russian economy is still hampered by the decline of the world economic growth. The prospects of financial markets are highly uncertain. This increases the possibility of crisis in the world. Leading countries widely use non-traditional measures to support their economies in the similar environment. In the world economy as well as in Russia a principally new combination of factors has emerged, which create specific features of economic growth. It requires special set of measures to stimulate such growth. The article proves that Russian regulators have large unused potential to stimulate growth. It includes monetization, long-money creation, budget and tax stimuli. It is important that the instruments, which will be used, should be based on domestic mechanisms. This will strengthen financial basis of the economy and may encourage economic growth. Some specific suggestions as to their use are made.

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