Completely updated and revised, the second edition of International Financial Economics: Corporate Decisions in Global Markets applies the principles of financial economics to explain how international corporate finance decisions are made in the real world. Written from a practical, financial...

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For multinational companies (MNCs) with foreign subsidiaries, the currency denomination of intercompany debt can have important effects on both taxes and financial statements. This paper analyzes the choice between an intercompany loan denominated in the home currency and one denominated in the...

Due to the highly skewed and heavy-tailed distributions associated with the insurance claims process, we evaluate the Rubinstein-Leland (RL) model for its ability to improve the cost of equity estimates of insurance companies because of its distribution-free feature. Our analyses show that there...