Purpose – Recent failures and scandals in the banking and financial services industry have served as catalysts for anxiety about operational risk. In particular, the Basel II accord emphasises the need to develop methodologies for assessing and managing this category of risk. However,...

Purpose – The purpose of this paper is to develop a model to analyze the role of exchange rate appreciation expectation in trade invoicing from the perspective of importers, then empirically analyze it using Japanese export data. Design/methodology/approach – Constructing a theoretical model...

Considers the aims of the “founding fathers” of the European Community in creating a free trade area based on the notion that “If the goods cross the frontiers, the armies won’t”. Looks at the likely impact of monetary union and argues that a single currency, with the consequent...

Highlights the key features and differences between cash and electronic money and the benefits the former cannot deliver. However, consumer confidence is seen as the vital factor in acceptance of the latter. Summarises the four main areas identified by the European Commission in 1997 where...

Purpose – To investigate the extent to which finance managers in non‐financial firms speculate in the currency markets and particularly to investigate the effect of individual‐owners on such speculation. Design/methodology/approach – This paper uses survey data in order to analyse the...

Purpose – Recent research indicates that the random walk hypothesis (RWH) approximately describes the behavior of major dollar exchange rates during the post‐1973 float. The present analysis seeks to examine the profitability of currency futures trading rules that assume that spot exchange...