Finance is a field that deals with the study of investments. It includes the dynamics of assets a... more Finance is a field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management. Finance aims to price assets based on their risk level and their expected rate of return. Finance can be broken into three different subcategories: public finance, corporate finance and personal finance.
This document is an extract from the document entitled Investment Analysis and Portfolio Manageme... more This document is an extract from the document entitled Investment Analysis and Portfolio Management by Kristina Levišauskaité (2010) under the Leonardo da Vinci programme (or Leonardo Da Vinci Transfer of Innovation): "Development and Approbation of Applied Courses Based on the Transfer of Teaching Innovations in Finance and Management for Further Education of Entrepreneurs and Specialists in Latvia, Lithuania and Bulgaria." Supported by the European Union & Education and Culture DG.
How important is intelligence to financial success? Using the NLSY79, which tracks a large group ... more How important is intelligence to financial success? Using the NLSY79, which tracks a large group of young U.S. baby boomers, this research shows that each point increase in IQ test scores raises income by between $234 and $616 per year after holding a variety of factors constant. Regression results suggest no statistically distinguishable relationship between IQ scores and wealth. Financial distress, such as problems paying bills, going bankrupt or reaching credit card limits, is related to IQ scores not linearly but instead in a quadratic relationship. This means higher IQ scores sometimes increase the probability of being in financial difficulty.
A stock market, equity market or share market is the aggregation of buyers and sellers (a loose n... more A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately.
All rights reserved 1 2 3 4 12 11 10 09 This volume is a product of the staff of the Internationa... more All rights reserved 1 2 3 4 12 11 10 09 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.
This paper examines the risk externalities stemming from the size of institutions. The problem of... more This paper examines the risk externalities stemming from the size of institutions. The problem of excessive risk taking and their potential external consequences are taken as a case example. Assuming (conservatively) that a firm risk exposure is limited to its capital while its external (and random) losses are unbounded we establish a condition for a firm to be too big to fail. In particular, expected risk externalities' losses conditions for positive first and second derivatives with respect to the firm capital are derived. Examples and analytical results are obtained based on firms' random effects on their external losses (their risk externalities) and policy implications are drawn that assess both the effects of "too big to fail firms" and their regulation.
Quantitative Analysis of Information Security Risk Given the global business environment, informa... more Quantitative Analysis of Information Security Risk Given the global business environment, information technology deployments are indispensable for enabling information reliability, processing efficiency, and communication expediency to acquire and maintain a competitive advantage (Masa'deh, 2013). Because information has measurable value (Burton, Tanner, Giraud-Carrier, West, & Barnes, 2012; Iaryczower & Shum, 2012); data collection, processing, storage, and transmission by organizational employees need appropriate safeguarding (Ahmad, Maynard, & Park, 2014). However, several significant information security breaches have caused decreased corporate value appropriation (Clark & Harrell, 2013; Silic & Back, 2014). The purpose of this quantitative data analysis was to examine the relationship between industry type and information security risk-level among businesses in the United States. This paper took into account collected business related data from 36 industry types (see Appendix A). Pattern recognition, bivariate linear regression analysis, and a one-sample t-test were performed to test the industry type and information security risklevel relationship of the selected business. Test results indicated that there is a significant predictive relationship between industry type and risk-level rates among United States businesses. Moreover, the one-sample t-test results indicated that United States businesses classified as a particular industry type are more likely to have a higher information security risk-level than the midpoint level of United States businesses. Research Question RQ: How well does industry type predict information security risk-level in the United States?
The recent attention to the situatedness and spatiality of finance has consequences for understan... more The recent attention to the situatedness and spatiality of finance has consequences for understanding financial risks. The focus on geofinance and financial ecology requires investigation in risk interdependences at all levels (individual, institutional and systemic) and across different countries and cultures. Financial risks relate to financial intermediation, execution of payments, financial protection, supply of financial products and smooth functioning of money. Perception and management of these risks can be distorted by behavioral biases, institutional risk cultures and interconnectedness within global financial networks. Modern financial technologies such as FinTech, RegTech, blockchain and digital currencies pose new challenges for risk management.
Finance is a field that deals with the study of investments. It includes the dynamics of assets a... more Finance is a field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management. Finance aims to price assets based on their risk level and their expected rate of return. Finance can be broken into three different subcategories: public finance, corporate finance and personal finance.
This document is an extract from the document entitled Investment Analysis and Portfolio Manageme... more This document is an extract from the document entitled Investment Analysis and Portfolio Management by Kristina Levišauskaité (2010) under the Leonardo da Vinci programme (or Leonardo Da Vinci Transfer of Innovation): "Development and Approbation of Applied Courses Based on the Transfer of Teaching Innovations in Finance and Management for Further Education of Entrepreneurs and Specialists in Latvia, Lithuania and Bulgaria." Supported by the European Union & Education and Culture DG.
How important is intelligence to financial success? Using the NLSY79, which tracks a large group ... more How important is intelligence to financial success? Using the NLSY79, which tracks a large group of young U.S. baby boomers, this research shows that each point increase in IQ test scores raises income by between $234 and $616 per year after holding a variety of factors constant. Regression results suggest no statistically distinguishable relationship between IQ scores and wealth. Financial distress, such as problems paying bills, going bankrupt or reaching credit card limits, is related to IQ scores not linearly but instead in a quadratic relationship. This means higher IQ scores sometimes increase the probability of being in financial difficulty.
A stock market, equity market or share market is the aggregation of buyers and sellers (a loose n... more A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately.
All rights reserved 1 2 3 4 12 11 10 09 This volume is a product of the staff of the Internationa... more All rights reserved 1 2 3 4 12 11 10 09 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.
This paper examines the risk externalities stemming from the size of institutions. The problem of... more This paper examines the risk externalities stemming from the size of institutions. The problem of excessive risk taking and their potential external consequences are taken as a case example. Assuming (conservatively) that a firm risk exposure is limited to its capital while its external (and random) losses are unbounded we establish a condition for a firm to be too big to fail. In particular, expected risk externalities' losses conditions for positive first and second derivatives with respect to the firm capital are derived. Examples and analytical results are obtained based on firms' random effects on their external losses (their risk externalities) and policy implications are drawn that assess both the effects of "too big to fail firms" and their regulation.
Quantitative Analysis of Information Security Risk Given the global business environment, informa... more Quantitative Analysis of Information Security Risk Given the global business environment, information technology deployments are indispensable for enabling information reliability, processing efficiency, and communication expediency to acquire and maintain a competitive advantage (Masa'deh, 2013). Because information has measurable value (Burton, Tanner, Giraud-Carrier, West, & Barnes, 2012; Iaryczower & Shum, 2012); data collection, processing, storage, and transmission by organizational employees need appropriate safeguarding (Ahmad, Maynard, & Park, 2014). However, several significant information security breaches have caused decreased corporate value appropriation (Clark & Harrell, 2013; Silic & Back, 2014). The purpose of this quantitative data analysis was to examine the relationship between industry type and information security risk-level among businesses in the United States. This paper took into account collected business related data from 36 industry types (see Appendix A). Pattern recognition, bivariate linear regression analysis, and a one-sample t-test were performed to test the industry type and information security risklevel relationship of the selected business. Test results indicated that there is a significant predictive relationship between industry type and risk-level rates among United States businesses. Moreover, the one-sample t-test results indicated that United States businesses classified as a particular industry type are more likely to have a higher information security risk-level than the midpoint level of United States businesses. Research Question RQ: How well does industry type predict information security risk-level in the United States?
The recent attention to the situatedness and spatiality of finance has consequences for understan... more The recent attention to the situatedness and spatiality of finance has consequences for understanding financial risks. The focus on geofinance and financial ecology requires investigation in risk interdependences at all levels (individual, institutional and systemic) and across different countries and cultures. Financial risks relate to financial intermediation, execution of payments, financial protection, supply of financial products and smooth functioning of money. Perception and management of these risks can be distorted by behavioral biases, institutional risk cultures and interconnectedness within global financial networks. Modern financial technologies such as FinTech, RegTech, blockchain and digital currencies pose new challenges for risk management.
Uploads
Papers by Audrey Martin