91 research outputs found
How corporate governance and globalization can run afoul of the law and good practices in business: The Enron's disgraceful affair.
No full textThe purpose of this paper is to set out the Enron’s demise into the perspective of Corporate and Global Governance. To accomplish this target, the incremental cash flow model is expanded to give room for governance issues, while a functional introduction to information sets is developed, including bounded rationality, asymmetric information, opportunistic behavior, transaction costs and agency problems. Then, corporate governance is linked to globalization by means of some recent approaches that go beyond a narrow economic mindset to encompass a far-reaching dynamics. Taking advantage of such background, the Enron’s story is tracked down over a span of fifteen years since its starting day to its bankruptcy filing. Leading events are explained from corporate and global governance viewpoints, while an in-depth analysis is worked out on Enron’s complex game of deception and breach of contracts: the outrageous affiliated limited partnerships, the lavish pay package to its executives, the involvement with global governance through the Indian affair and the Taliban connection. It is for the incremental cash flow model to explain malfeasance with cash flows from assets, and how cash flows to creditors were actually contrived. Furthermore, to highlight how cash flows were swindled from stockholders and, finally, how Enron made wheeling and dealing with cash flows on behalf of its managers.corporate governance, global governance, incremental cash flow model, globalization, information sets, good practices.
An axiomatic treatment of enlarged separation portfolios and treasurer’s portfolios (with applications to financial synthetics)
No full textExpanded separation portfolios ( Se ) and Treasurer’s portfolios T( Se ) are a sect of themselves. They arise out of risk-free assets and risky portfolios like other mutual funds. But their distinctive features set them apart from the common lot. This paper puts forth, firstly, a down-to-earth axiomatic that allows a complete formalization of the class of Se portfolios. Secondly, simple separation portfolios are featured and their differences with ( Se ) are highlighted. Next, the category of T( Se ) will be defined and their main properties brought to light. Last of all, there will be an expansion on the building of financial synthetics by means of enlarged separation portfolios.enlarged separation portfolios, mutual funds, separation portfolios, treasurer’s portfolios, financial synthetics, portfolio management
Multiplicative models of financial returns an what we fail to get when they are disregarded
No full textThis paper puts forward an alternative approach to multiplicative models and their assessment of returns out of financial assets. Firstly, it lays down an operative definition but also sets forth a commutative framework of mappings to provide foundations to such a definition. Next, the total return is split down into its linear and non-linear building blocks. Afterwards, a compatibility lemma draws a distinction between what should be meant by linear approximation and linear equivalence to the multiplicative model. Last of all, three empirical examples bring home how to profit from multiplicative models in actual practice.multiplicative models of returns, additive models of return, financial assets returns, linear approximation and linear equivalences
The rise of corporate governance brokers and how they trade in asymmetric information
No full textThis paper sets forth that governance brokerage can be regarded as a natural outgrowth of the actual practice of Corporate Governance. To lay the foundations of our subject, firstly we delve into the dual nature of any transaction. Then we move on to define what the expression “governance broker” means, underlining five professional arrangements from which governance intermediation can be achieved. Next, it is shown how trade splits up economic agents’ information sets, giving rise to the brokerage of asymmetric information. Afterwards, we account for the ways a governance broker meets his goals in dyadic and polyadic relationships, bringing forward distinctive courses of action: clinical assistance, consultancy to foster growth and value, governance engineering, tutoring on global standards of governance, mediation in conflicts of interests, even international intermediation.governance broker, information sets, dyadic and polyadic relationships, brokerage of asymmetric information, corporate governance.
It is for global governance to sharpen up international relations by fulfilling a fiduciary role and carrying out the brokerage of asymmetric information
No full textThis paper argues that there are qualifying grounds for global governance to make a contribution to the study of International Relations. Starting with the Westphalian state model and its compromises, it moves on to outline the realist and liberal approaches. Next, it frames the concept of plain governance, expanding on its varieties of public and global scope. Then, it sets up a toolbox to address World Politics issues from the standpoint of governance. Afterwards, it lays the foundations of two functions by which global governance may bridge some gaps left open by realism and liberalism. The first one involves the fiduciary role in international relations. The second displays how global governance structures carry out the brokerage of asymmetric information.governance, global governance, public governance, asymmetric information, fiduciary role, realism and liberalism.
Incremental cash flows, information sets and conflicts of interest.
No full textThis paper attempts to make of the standard incremental cash flow model (SICFM) a functional vehicle for coping with conflicts of interest. After outlining the model, residual rights to cash flows are linked to residual risks. Then, the underlying information sets to cash flows are brought to light, stressing the nurturing factors behind conflicts of interest: bounded rationality, asymmetric information, opportunistic behavior and transaction costs. Next, decision rights and organization forms are included into the frame of the paper. Finally, the core subject section shows how incremental cash flows come in handy to root out conflicts of interest, firstly by disclosing the residual information sets that divide managers, stockholders and creditors and, secondly, by advocating the design of ex~ante restrictive covenants on the uses and sources of incremental expected cash flows.cash flow, conflict of interest, information set, residual rights
Arbitrage in foreign exchange markets within the context of a transactional algebra
No full textThis paper sets forth the foundations for a transactional approach for the performance of arbitrage in foreign exchange markets. Firstly, we review both the standard model of financial arbitrage and the so-called covered-interest arbitrage environment, and we also lay bare striking shortcomings in these points of view, mainly grounded on a wide- ranging empirical evidence. Next, we move on to what we have labeled in previous research working papers a transactional algebra, from which we expand on its main tools of analysis, namely differential rates, residual information sets, arbitrage gaps and transaction costs functions. Afterwards, we establish and prove the minimal conditions under which a successful arbitrage can be carried out within a transactional algebra.transactional algebras, arbitrage, covered-interest arbitrage, differential rates, residual information sets, arbitrage gaps.
Public Governance. A Blueprint for Political Action and Better Government
No full textThis paper sets forth a comprehensive viewpoint about how Public Governance should be assessed and worked-out, by making three contributions to the subject matter. Firstly, it provides the semantics by which this field of learning and practice may become operational in Political Science. Next, a four-tiered framework of analysis is laid bare, which deals with architecture, covenants and safeguards, collective action, and deviant behavior. Afterwards, and focusing on conflict systems, we give heed to the underlying logic of Public Governance, which stems from a network built up around the mechanisms of participation, contest and safeguarding.governance, public governance, conflict systems, institutional safeguards
Simple and enlarged separation portfolios. On their Use when Arbitraging and Synthesizing Securities.
No full textThis paper seeks to provide a framework for separation portfolios when they are used not only as synthetics of a matching security but also as building blocks of arbitrage portfolios, in a background provided by the CAPM world. Firstly, synthetics are defined by means of a vectorial framework that maps portfolios onto their risk-return profiles. Separation portfolios are extensively analyzed afterwards, establishing three propositions that lay the groundwork for using them as synthetics. Next, a distinction is brought about between plain separation portfolios (which are located on the Capital Market Line) and enlarged separation portfolios (which lie outside the CML). Furthermore, it is shown that simple separation portfolios become synthetics in few cases only, whereas enlarged portfolios allow for synthetics in much wider contexts. Later, arbitrage portfolios are designed by means of simple separation portfolios in the context of the Security Market Line, and also by resorting to the enlarged ones without requiring the SML as a benchmark. Finally, the discussion extends over bond portfolios, to embody their risky features into the viewpoint set forth in the paper.Plain Separation Portfolios, Enlarged Separation Portfolios, Synthetics, Portfolios, Arbitrage Portfolios
Expert biases in technology foresight. Why they are a problem and how to mitigate them
No full textThe paper addresses an issue largely discussed in the field of Forecasting and in many future-oriented scientific and professional disciplines, but less frequently considered in the Foresight literature, particularly in the technology foresight field- i.e. the extent to which biases of human experts influence the foresight process. The paper reviews the literature on cognitive biases and identifies the main areas of technology foresight in which biases are most likely to materialize. It offers a number of examples in which these biases may indeed create distortions. It also reviews the potential impact of several recently introduced methods, in the field of technology foresight and in related areas, to mitigate the distortions and calls for future research in this new field of investigation
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