A dilution cost approach to financial intermediation and securities markets

This paper proposes a model of financial markets and corporate finance,with asymmetric information and no taxes, where equity issues, Bankdebt and Bond financing may all co-exist in equilibrium. The paperemphasizes the relationship Banking aspect of financial intermediation:firms turn to banks as a source of investment mainly because banks aregood at helping them through times of financial distress. The debtrestructuring service that banks may offer, however, is costly. Therefore,the firms which do not expect to be financially distressed prefer toobtain a cheaper market source of funding through bond or equity issues.This explains why bank lending and bond financing may co-exist inequilibrium. The reason why firms or banks also issue equity in our modelis simply to avoid bankruptcy. Banks have the additional motive that theyneed to satisfy minimum capital adequacy requeriments. Several types ofequilibria are possible, one of which has all the main characteristics ofa "credit crunch". This multiplicity implies that the channels of monetarypolicy may depend on the type of equilibrium that prevails, leadingsometimes to support a "credit view" and other times the classical "moneyview".

Experimental Markets for Product Concepts

Market prices are well known to efficiently collect and aggregate diverse information regarding the value of commodities and assets. The role of markets has been particularly suitable to pricing financial securities. This article provides an alternative application of the pricing mechanism to marketing research - using pseudo-securities markets to measure preferences over new product concepts. Surveys, focus groups, concept tests and conjoint studies are methods traditionally used to measure individual and aggregate preferences. Unfortunately, these methods can be biased, costly and time-consuming to conduct. The present research is motivated by the desire to efficiently measure preferences and more accurately predict new product success, based on the efficiency and incentive-compatibility of security trading markets. The article describes a novel market research method, pro-vides insight into why the method should work, and compares the results of several trading experiments against other methodologies such as concept testing and conjoint analysis.

Securities: Its Conception and Protection of Interests of its Holders

Theoretical studies of the problems of the securities markets in the Russian Federation incline to one or other of the two traditional approaches. The first consists of comparing the definition of "valuable paper" set forth in the current legislation of the Russian Federation, with the theoretical model of "Wertpapiere" elaborated by German scholars more than 90 years ago. The problem with this approach is, in Mr. Pentsov's opinion, that any new features of the definition of "security" that do not coincide with the theoretical model of "Wertpapiere" (such as valuable papers existing in non-material, electronic form) are claimed to be incorrect and removed from the current legislation of the Russian Federation. The second approach works on the basis of the differentiation between the Common Law concept of "security" and the Civil Law concept of "valuable paper". Mr. Pentsov's research, presented in an article written in English, uses both methodological tools and involves, firstly, a historical study of the origin and development of certain legal phenomena (securities) as they evolved in different countries, and secondly, a comparative, synchronic study of equivalent legal phenomena as they exist in different countries today. Employing the first method, Mr. Pentsov divided the historical development of the conception of "valuable paper" in Russia into five major stages. He found that, despite the existence of a relatively wide circulation of valuable papers, especially in the second half of the 19th century, Russian legislation before 1917 (the first stage) did not have a unified definition of valuable paper. The term was used, in both theoretical studies and legislation, but it covered a broad range of financial instruments such as stocks, bonds, government bonds, promissory notes, bills of exchange, etc. During the second stage, also, the legislation of the USSR did not have a unified definition of "valuable paper". After the end of the "new economic policy" (1922 - 1930) the stock exchanges and the securities markets in the USSR, with a very few exceptions, were abolished. And thus during the third stage (up to 1985), the use of valuable papers in practice was reduced to foreign economic relations (bills of exchange, stocks in enterprises outside the USSR) and to state bonds. Not surprisingly, there was still no unified definition of "valuable paper". After the beginning of Gorbachev's perestroika, a securities market began to re-appear in the USSR. However, the successful development of securities markets in the USSR was retarded by the absence of an appropriate regulatory framework. The first effort to improve the situation was the adoption of the Regulations on Valuable Papers, approved by resolution No. 590 of the Council of Ministers of the USSR, dated June 19, 1990. Section 1 of the Regulation contained the first statutory definition of "valuable paper" in the history of Russia. At the very beginning of the period of transition to a market economy, a number of acts contained different definitions of "valuable paper". This diversity clearly undermined the stability of the Russian securities market and did not achieve the goal of protecting the investor. The lack of unified criteria for the consideration of such non-standard financial instruments as "valuable papers" significantly contributed to the appearance of numerous fraudulent "pyramid" schemes that were outside of the regulatory scheme of Russia legislation. The situation was substantially improved by the adoption of the new Civil Code of the Russian Federation. According to Section 1 of Article 142 of the Civil Code, a valuable paper is a document that confirms, in compliance with an established form and mandatory requisites, certain material rights whose realisation or transfer are possible only in the process of its presentation. Finally, the recent Federal law No. 39 - FZ "On the Valuable Papers Market", dated April 22 1996, has also introduced the term "emission valuable papers". According to Article 2 of this Law, an "emission valuable paper" is any valuable paper, including non-documentary, that simultaneously has the following features: it fixes the composition of material and non-material rights that are subject to confirmation, cession and unconditional realisation in compliance with the form and procedure established by this federal law; it is placed by issues; and it has equal amount and time of realisation of rights within the same issue regardless of when the valuable paper was purchased. Thus the introduction of the conception of "emission valuable paper" became the starting point in the Russian federation's legislation for the differentiation between the legal regimes of "commercial papers" and "investment papers" similar to the Common Law approach. Moving now to the synchronic, comparative method of research, Mr. Pentsov notes that there are currently three major conceptions of "security" and, correspondingly, three approaches to its legal definition: the Common Law concept, the continental law concept, and the concept employed by Japanese Law. Mr. Pentsov proceeds to analyse the differences and similarities of all three, concluding that though the concept of "security" in the Common Law system substantially differs from that of "valuable paper" in the Continental Law system, nevertheless the two concepts are developing in similar directions. He predicts that in the foreseeable future the existing differences between these two concepts will become less and less significant. On the basis of his research, Mr. Pentsov arrived at the conclusion that the concept of "security" (and its equivalents) is not a static one. On the contrary, it is in the process of permanent evolution that reflects the introduction of new financial instruments onto the capital markets. He believes that the scope of the statutory definition of "security" plays an extremely important role in the protection of investors. While passing the Securities Act of 1933, the United States Congress determined that the best way to achieve the goal of protecting investors was to define the term "security" in sufficiently broad and general terms so as to include within the definition the many types of instruments that in the commercial world fall within the ordinary concept of "security' and to cover the countless and various devices used by those who seek to use the money of others on the promise of profits. On the other hand, the very limited scope of the current definition of "emission valuable paper" in the Federal Law of the Russian Federation entitled "On the Valuable Papers Market" does not allow the anti-fraud provisions of this law to be implemented in an efficient way. Consequently, there is no basis for the protection of investors. Mr. Pentsov proposes amendments which he believes would enable the Russian markets to become more efficient and attractive for both foreign and domestic investors.

Institutional Development of Capital Markets in Nine Asian Economies

This paper is conducting a comparative analysis of the development of securities markets in nine Asian economies: Korea, Taiwan, Hong Kong, Singapore, Malaysia, Thailand, Indonesia, the Philippines, and China. This study focuses on two aspects: the history and institutional development of securities market, such as legal systems, payment systems, etc. From the analyses, this paper reveals several common features of the development of securities markets in nine Asian economies. First, most economies had an informal capital market in the early period of their history. Second, the background of the foundation of their official markets was influenced by experiences of colonization. Third, most governments recognized the importance of the capital market for economic development and had a positive attitude in promoting the market. Fourth, statistics clearly showed that most economies experienced several booms in their capital market from the late 1980s.

Lições de Direito Económico e Financeiro, 1º Ano

I – O “DIREITO ECONÓMICO”: O ESTADO COMO PRODUTOR DE BENS E SERVIÇOS E O ESTADO COMO REGULADOR DA ECONOMIA: O PLANEAMENTO E AS MEDIDAS DE ESTÍMULO OU FOMENTO; O ACESSO À ACTIVIDADE ECONÓMICA; II – CONCEITO E TIPOLOGIA DAS EMPRESAS; III – ALGUMAS EMPRESAS EM ESPECIAL; IV – DIREITO PENAL ECONÓMICO E DE EMPRESA; V – “CONTENCIOSO DAS EMPRESAS”; VI – DIREITO DO CONSUMO, DIREITO DAS EMPRESAS E DIREITO PENAL ECONÓMICO; VII – DIREITO DA CONCORRÊNCIA E DOS PREÇOS; VIII – DIREITO MONETÁRIO, FINANCEIRO E DOS MERCADOS DE VALORES MOBILIÁRIOS: INSTRUMENTOS E MERCADOS FINANCEIROS; IX - REGULAÇÃO DO AMBIENTE E DA ACTIVIDADE ECONÓMICA; X - REGULAÇÃO DA QUALIDADE; XI – DIREITO FINANCEIRO PÚBLICO. §I - "ECONOMIC LAW": THE STATE AS PRODUCER OF GOODS AND SERVICES AND THE STATE AS A ECONOMY REGULATOR: PLANNING AND MEASURES OF STIMULUS OR PROMOTION; ACCESS TO ECONOMIC ACTIVITY II - CONCEPT AND TYPE OF COMPANIES III - SOME SPECIAL COMPANIES IV - ECONOMIC AND CRIMINAL LAW COMPANY, V – “LITIGATION IN COMPANIES”; VI - LAW CONSUMER, LAW OF COMPANIES AND ECONOMIC CRIMINAL LAW; VII - COMPETITION LAW AND PRICES; VIII - MONETARY LAW, FINANCIAL AND SECURITIES MARKETS: FINANCIAL INSTRUMENTS AND MARKETS; X - REGULATORY ENVIRONMENT AND ECONOMIC ACTIVITY: X - ADJUSTMENT OF QUALITY; XI - PUBLIC FINANCIAL LAW.

Os fundos éticos nos mercados nas Bolsas de Valores

É possível encontrar nos mercados de valores mobiliários e/ou outros instrumentos financeiros e/ou nas chamadas bolsas de valores - éticas concretas, reais e definidas? Pensamos que sim. Os fundos éticos são apenas uma das espécies de fundos. Abstract: You can find in the securities markets and / or other financial instruments and / or in so-called exchanges - concrete ethical, real and defined? We think so. Ethical funds are only one species of funds.

“Abuso de Informação, Manipulação do Mercado&Responsabilidade Penal das Pessoas Colectivas”

Este livro trata do direito penal económico e financeiro. Agora tão infelizmente na moda com os escândalos públicos ligados a bancos e/ou instituições mais ou menos financeiras e pessoas públicas. Fornece um especial enfoque no direito penal dos mercados de valores mobiliários e/ou outros instrumentos financeiros. § This book deals with the economic and financial criminal law. Now so sadly fashionable with public scandals linked to banks and / or about financial institutions and public figures. It provides a special focus on criminal matters in the securities markets and / or other financial instruments.

Estudo sobre o efeito de contágio nos mercados financeiros de acções: aplicação aos índices de acções europeus, americanos, asiáticos e brasileiro no período de Janeiro de 1996 a Junho de 2009 e no sub-período da crise subprime

Mestrado em Contabilidade

Mercados bolsistas

O intenso intercâmbio entre os países, resultante do processo de globalização, veio acrescer importância ao mercado de capitais. Os países em desenvolvimento procuram abrir as suas economias para receber investimentos externos. Quanto maior for o grau de desenvolvimento de uma economia mais ativo será o seu mercado de capitais. No entanto, tem-se verificado uma tendência de substituição de enfoque económico, que antes era mais dirigido ao planeamento empresarial para metas mais ligadas ao meio ambiente. O mercado de capitais é um sistema de distribuição de valores mobiliários cujo objectivo é proporcionar liquidez a títulos emitidos pelas empresas, com a finalidade de viabilizar o processo de capitalização desses papéis. O mercado de capitais é composto pelas bolsas de valores, sociedades corretoras e outras instituições financeiras que têm autorização da Comissão de Valores dos Mercados Mobiliários (CMVM). O mercado bolsista insere-se no mercado de capitais. Nesses mercados, é importante conseguir conjuntamente a maximização dos recursos (retornos) e minimização dos custos (riscos). O principal objectivo das bolsas de valores é promover um ambiente de negociação dos títulos e dos valores mobiliários das empresas. Muitos investidores têm a sua própria maneira de investir, consoante o perfil que cada um tem. Além do perfil dos investidores, é também pertinente analisar a questão do risco. Vaughan (1997) observa que, nos dias atuais, a questão da administração do risco está presente na vida de todos. Este trabalho tem o propósito de demonstrar a necessidade da utilização de ferramentas para a seleção de ativos e para a mensuração do risco e do retorno de aplicações de recursos financeiros nesses activos de mercados de capitais, por qualquer tipo de investidor, mais especificamente na compra de ações e montagem de uma carteira de investimento. Para isso usou-se o método de Elton e Gruber, analisou-se as rentabilidades, os riscos e os índices de desempenho de Treynor e Sharpe. Testes estatísticos para os retornos das ações foram executados visando analisar a aleatoriedade dos dados. Este trabalho conclui que pode haver vantagens na utilização do método de Elton e Gruber para os investidores propensos a utilzar ações de empresas socialmente responsáveis.

The Rise and Fall of the ABS Market

The nancial crisis has raised some concern about the quality of information available on some traded assets on the securities markets to market participants and regulators. Asset-backed securitization in general got partial blame for the paucity of liquidity on bank balance sheets and the consequent credit crunch. After the Asset-Backed Security (ABS) market fell to near inactivity in 2009, the US federal government's Term Asset-Backed Securities Loan Facility (TALF) provided backing and a boost to the issuance of asset-backed securitization. In this market condition, given the nature of ABS, it is di¢ cult for them not to be relatively illiquid, and this has resulted in unacceptable levels of market risk for most investors. Their liquidity before the crisis was driven by a market in continuous expansion, fed by Special Purpose Vehicle (SPV), Conduits, and other low capitalized term-transformation vehicles. Nowadays, the industry is concerned with the ongoing ABS reforms and how these will be implemented. This article reviews the ABS market in the last decade and the possible consequences of the recent regulatory proposals. It proposes a retention policy and the institution of a new nancial body to supervise the quality of the security in an ABS pool, its liquidity, and the model risk implied by the issuer's valuation model.

Osakkeenomistajan suojaaminen vähemmistöosakkeiden hankinnassa - Oikeusvertaileva tarkastelu Suomen ja Delawaren käytännöistä

Tutkielmassa tarkastellaan osakkeenomistajien suojaamiskeinoja Suomessa ja Delawaressa. Oikeusvertailevaa metodia sovelletaan kolmella tasolla: lakien ja määräysten osalta, menettelyn osalta sekä suojaamiskeinojen osalta. Osakkeenomistajien katsotaan tarvitsevan suojaa vähemmistöosakkeiden hankinnan yhteydessä, sillä siinä osakkeiden vapaan vaihdettavuuden perusperiaate ja pakkolunastaminen kohtaavat. Suojaamiskeinot on jaettu etukäteisiin, menettelya koskeviin sekä hinnanmäärittelyyn liittyviin keinoihin. Etukäteisiin keinoihin voidaan laskea johdon vastuu, joka koostuu huolellisuus- ja lojaliteettivelvoitteista, ja yhtiöjärjestysmääräykset. Delawaressa johdon vastuu on määritelty Suomea tarkemmin. Yhtiöjärjestysmääräykset ovat ongelmallisia Suomessa, sillä ne saattavat olla arvopaperimarkkinalain vastaisia. Delawaressa niiden käyttö on runsasta. Menettelyyn liittyviaä suojakeinoja löytyi useita. Vähemmistönsuojaperiaatetta toteutetaan Suomessa yhdenvertaisuusperiaatetta noudattamalla sekä määräämällä lunastusoikeudesta tai -velvollisuudesta. Delawaressa vähemmistöllä on oikeus saada erityistuomioistuin Court of Chanceryn arviointi menettelyn oikeellisuudesta. Menettelyn oikeellisuutta pyritään kummassakin tutkimuskohteessa suojaamaan myös tiedonantovelvollisuudella. Lisäksi Delawaressa johdon on asetettava aina erikoiskomitea neuvottelemaan ostajan kanssa. Hinnanmäärittelyn osalta suojaa antavat käyvän hinnan vaatimus, sekä Suomessa taloudellisen yhdenvertaisuuden periaate ja Delawaressa vähemmistön oikeus saada Court of Chanceryn arviointi oikeasta hinnasta.