The implied volatility (IV) is widely believed to be the best measure of exchange rate volatility. Despite its widespread usage, the IV approach suffers from an obvious chicken-egg problem: obtaining an unbiased IV requires the options to be priced correctly and calculating option prices...

[Chapter Introduction and Objectives]: That there is no profit unless the company earns the cost of capital is at the heart of some relatively new performance metrics like economic value added (EVA), which is defined as the difference between the net operating profit after taxes and the capital...

[Chapter Introduction and Objectives]: Convertibles are derivative embedded, hybrid instruments that get converted into the issuer's equity after some time at the option of the holder. The worldwide market for convertibles has grown enormously. In this chapter, we discuss the rationale for and...

This study examines whether corporate capital structure reduces agency costs and increases firm economic performance in Bangladesh, an emerging economy. By using two measures of agency cost, expense ratio and asset utilization ratio (or asset-turnover ratio), as well as two measures of...

Implied volatility (IV) is widely used in pricing options because traders believe that IV is the best predictor of exchange rate volatility. The Philadelphia Stock Exchange offers a continuous series of strike price options that can expire on more than one maturity date. This leads to the...

This book includes the materials from author’s PhD thesis. In the past three decades, the use of foreign currency options has increased exponentially as a hedging tool and for speculative purposes into a major foreign exchange activity. Increased use of foreign currency options is a reflection...

Extant research has also documented the relatively inferior legal and political environment for governance that obtains in several emerging market countries. When firms from emerging markets cross-list their equity in major international markets they have to mandatorily improve their disclosure...

Primarily intended as a text for postgraduate students of management and those pursuing postgraduate courses in finance, this well-organized and deeply researched study explains corporate finance as an area of finance dealing with the financial decisions corporates make and the tools and...

Extant research on developed markets shows that investor sentiment is a prominent feature in IPO grey markets. There is sparse work in the context of emerging markets. We fill this lacuna by studying the working of the Indian IPO market. We consider this work interesting and relevant for the...

Purpose – The purpose of this paper is to perform an exploratory study of depositary receipts (DRs). In addition to the geographical analysis it tests several hypothesis linked to various DRs’ issues. Design/methodology/approach – Using the publicly available The Bank of New York’s (now...