The purpose of this study is to formalize the choice of market entry strategy for an individual multinational enterprise (MNE) from a dynamic perspective. It is argued that incorporating a suitable treatment of irreversibility, uncertainty and flexibility related to a MNEs investment decision...

The application of theorectical option pricing evaluation procedures for the analysis of real investment decisions indicates a new trend in the classical theory of investment and finance. In this regard, the formative term of the real option approach subsumes three basic attributes of investment...

In the course of requests for more dynamic models that illustrate foreign direct investment decisions, the subsequent model offers a contribution to the theoretical modelling of this issue. However, conclusions about the timing are only possible to a limited extent, since options rights are of a...

The purpose of this study is to find reasonable explanations why cross-border acquisitions of foreign firms are often the preferred strategy to enter new markets. Furthermore, we formalize the choice of market entry strategy for an individual multinational enterprise (MNE) from a dynamic...

Up to date any kind of hedge fund was legally forbidden in Germany. Likewise, the public distribution of shares in foreign hedge funds was prohibited within the framework of the so called 'Auslandsinvestitionsgesetz' (AuslInvestmG). In March 2004, it was 'DWS Investment' (the investment company...

This paper studies some properties of stochastic dominance (SD) for risk-averse and risk-seeking investors, especially for the third order SD (TSD). We call the former ascending stochastic dominance (ASD) and the latter descending stochastic dominance(DSD). We first discuss the basic property of...

We study the optimal production of a competitive risk-averse firm under price uncertainty. We suppose that the firm is also regret-averse. For example, if market prices ex post turn out to be very high the firm might regret not producing more. If it turns out that the price is low the firm might...

The economic environment for financial institutions has become increasingly risky. Hence these institutions must find ways to manage risk of which one of the most important forms is interest rate risk. In this paper we use the mean-variance (mean-standard deviation) approach to examine a banking...

This paper empirically analyzes the impact of exchange rate uncertainty, exchange rate movements and expectations on foreign direct investment (FDI). Two competing specifications of exchange rate volatility are examined. The investigation is based on a cross-section time-series data set of U.S....

Given a commercial banking firm facing credit risk we develop a dynamic hedging model where the bank management can use credit derivatives. In a continuous-time framework optimal hedging strategies, deposit and loan decisions and consumption are studied. It is shown that the optimal hedge ratio...