Colin Crouch (ed.)
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780198296393
- eISBN:
- 9780191599002
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296398.001.0001
- Subject:
- Political Science, European Union
The introduction of the single European currency, the euro, draws attention to the institutional deficit of the European Union: the organizational structures and forms of governance within which ...
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The introduction of the single European currency, the euro, draws attention to the institutional deficit of the European Union: the organizational structures and forms of governance within which central banks and other monetary authorities are embedded within individual states, are lacking at the European level. This gives unusual prominence to financial structures. While the contributors to this collection do not agree in their evaluation of this phenomenon, they agree on its importance, and analyse different aspects of it in depth.Less
The introduction of the single European currency, the euro, draws attention to the institutional deficit of the European Union: the organizational structures and forms of governance within which central banks and other monetary authorities are embedded within individual states, are lacking at the European level. This gives unusual prominence to financial structures. While the contributors to this collection do not agree in their evaluation of this phenomenon, they agree on its importance, and analyse different aspects of it in depth.
Colin Crouch
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780198296393
- eISBN:
- 9780191599002
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296398.003.0001
- Subject:
- Political Science, European Union
The introduction of the single European currency, the euro, draws attention to the institutional deficit of the European Union: the organizational structures and forms of governance within which ...
More
The introduction of the single European currency, the euro, draws attention to the institutional deficit of the European Union: the organizational structures and forms of governance within which central banks and other monetary authorities are embedded within individual states, are lacking at the European level. This gives unusual prominence to financial structures.Less
The introduction of the single European currency, the euro, draws attention to the institutional deficit of the European Union: the organizational structures and forms of governance within which central banks and other monetary authorities are embedded within individual states, are lacking at the European level. This gives unusual prominence to financial structures.
E. Philip Davis
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198233312
- eISBN:
- 9780191596124
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198233310.001.0001
- Subject:
- Economics and Finance, Financial Economics
A remarkable feature of the period since 1970 has been the patterns of rapid and turbulent change in financing behaviour and financial structure in many advanced countries. These patterns have, in ...
More
A remarkable feature of the period since 1970 has been the patterns of rapid and turbulent change in financing behaviour and financial structure in many advanced countries. These patterns have, in turn, often been marked by rising indebtedness, volatile asset prices, and periods of financial stress, whether in the non‐financial sector, the financial sector, or both. At the same time, the economics profession has seen a notable advance in the scope and depth of the theory of finance, particularly as it relates to the nature and behaviour of financial institutions and markets. In this context, the objective of the book is to explore, in both theoretical and empirical terms, the nature of the relationships in advanced industrial economies between levels and changes in borrowing (debt), vulnerability to default in the non‐financial sector (financial fragility), and widespread instability in the financial sector (systemic risk). The work seeks to provide a survey and critical assessment of the current economic theory relating to debt and financial instability to offer empirical evidence casting light on the validity of the theories, and it suggests a number of policy implications and lines of further research. Unlike most extant texts on these matters, which generally relate to one country's experience, the book focuses on the way similar patterns are observable in several countries—but not in others—as well as in the international capital markets themselves. Particular attention is paid to the importance of the nature and evolution of financial structure to the genesis of instability. Whereas a structural approach is common in analysis of comparative behaviour of financial systems—notably in corporate finance—its application to instability is relatively rare. Given the international scope of the analysis, the work is germane to understanding the behaviour of financial systems in all capitalist economies, as well as in the international capital markets. However, it is of particular relevance to analysis of the US, Japan, Germany, France, the UK, Canada, Sweden, Norway, Italy, and Australia, whose recent experience is analysed in some detail.Less
A remarkable feature of the period since 1970 has been the patterns of rapid and turbulent change in financing behaviour and financial structure in many advanced countries. These patterns have, in turn, often been marked by rising indebtedness, volatile asset prices, and periods of financial stress, whether in the non‐financial sector, the financial sector, or both. At the same time, the economics profession has seen a notable advance in the scope and depth of the theory of finance, particularly as it relates to the nature and behaviour of financial institutions and markets. In this context, the objective of the book is to explore, in both theoretical and empirical terms, the nature of the relationships in advanced industrial economies between levels and changes in borrowing (debt), vulnerability to default in the non‐financial sector (financial fragility), and widespread instability in the financial sector (systemic risk). The work seeks to provide a survey and critical assessment of the current economic theory relating to debt and financial instability to offer empirical evidence casting light on the validity of the theories, and it suggests a number of policy implications and lines of further research. Unlike most extant texts on these matters, which generally relate to one country's experience, the book focuses on the way similar patterns are observable in several countries—but not in others—as well as in the international capital markets themselves. Particular attention is paid to the importance of the nature and evolution of financial structure to the genesis of instability. Whereas a structural approach is common in analysis of comparative behaviour of financial systems—notably in corporate finance—its application to instability is relatively rare. Given the international scope of the analysis, the work is germane to understanding the behaviour of financial systems in all capitalist economies, as well as in the international capital markets. However, it is of particular relevance to analysis of the US, Japan, Germany, France, the UK, Canada, Sweden, Norway, Italy, and Australia, whose recent experience is analysed in some detail.
Kathryn C. Lavelle
- Published in print:
- 2004
- Published Online:
- April 2005
- ISBN:
- 9780195174090
- eISBN:
- 9780199835287
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195174097.003.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter sets forth an explanation for international convergence in state behavior in creating and promoting emerging stock markets. Focusing on the commanding heights of privatized industry, it ...
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This chapter sets forth an explanation for international convergence in state behavior in creating and promoting emerging stock markets. Focusing on the commanding heights of privatized industry, it uses the metaphor of a two-level game from international relations theory to argue that when political leaders privatize large enterprise, they must negotiate with individuals outside the state to seek outcomes that are acceptable to structural international necessity, and they must negotiate with domestic constituencies to seek outcomes that are politically acceptable at home. To do so, policymakers create the specific financial instruments, with specific ownership and control characteristics. Since the new offerings joined whatever shares may or may not have already been listed on a given exchange, the resulting financial institutional structures fail to converge on one “model” of corporate governance or another, as Western financial institutions have converged over time. This theoretical premise would thus predict a large number of new exchanges appearing, at least in name, yet having vastly different volumes and types of listings, relative to the size of the local economy.Less
This chapter sets forth an explanation for international convergence in state behavior in creating and promoting emerging stock markets. Focusing on the commanding heights of privatized industry, it uses the metaphor of a two-level game from international relations theory to argue that when political leaders privatize large enterprise, they must negotiate with individuals outside the state to seek outcomes that are acceptable to structural international necessity, and they must negotiate with domestic constituencies to seek outcomes that are politically acceptable at home. To do so, policymakers create the specific financial instruments, with specific ownership and control characteristics. Since the new offerings joined whatever shares may or may not have already been listed on a given exchange, the resulting financial institutional structures fail to converge on one “model” of corporate governance or another, as Western financial institutions have converged over time. This theoretical premise would thus predict a large number of new exchanges appearing, at least in name, yet having vastly different volumes and types of listings, relative to the size of the local economy.
T.A. Bhavani and N.R. Bhanumurthy
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780198076650
- eISBN:
- 9780199081868
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198076650.003.0004
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Chapter 4 analyses the changes in the financial sector development along the dimensions of structure, size, reach, technology, efficiency, soundness of the sector. The structure of the sector has ...
More
Chapter 4 analyses the changes in the financial sector development along the dimensions of structure, size, reach, technology, efficiency, soundness of the sector. The structure of the sector has undergone substantial change in terms of new institutions and instruments, although most of them pertain to the private corporate sector. Reforms enabled the sector to grow along the dimensions of size, reach, and to enhance its productivity through the adoption of technological advancements. All the indicators show that the Indian financial sector, particularly banking sector has come a long way from fully regulated, less competitive, and high cost to more efficient and profitable industry. To make the sector more competitive in the international markets, lot more needs to be done.Less
Chapter 4 analyses the changes in the financial sector development along the dimensions of structure, size, reach, technology, efficiency, soundness of the sector. The structure of the sector has undergone substantial change in terms of new institutions and instruments, although most of them pertain to the private corporate sector. Reforms enabled the sector to grow along the dimensions of size, reach, and to enhance its productivity through the adoption of technological advancements. All the indicators show that the Indian financial sector, particularly banking sector has come a long way from fully regulated, less competitive, and high cost to more efficient and profitable industry. To make the sector more competitive in the international markets, lot more needs to be done.
Dale W. Jorgenson and Kun‐Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.003.0003
- Subject:
- Economics and Finance, Public and Welfare
A quantitative and detailed description is presented of the US tax system and law, which begins by providing estimates of the rates of capital income taxation at both corporate and individual levels ...
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A quantitative and detailed description is presented of the US tax system and law, which begins by providing estimates of the rates of capital income taxation at both corporate and individual levels for the period 1947–86; property tax rates are also presented for household, non-corporate and corporate sectors. It is noted that the adoption of these tax preferences in the USA dramatically altered the incentives to invest in different types of assets and radically changed the distribution of the tax burden. Provisions are then discussed for capital cost recovery, including capital consumption allowances and the investment tax credit; next, a description is given of features of the financial structure of corporate and non-corporate businesses and households that affect the taxation of income from capital. Finally, the impact is considered of the Tax Reform Act of 1986 on the US tax system, especially in relation to the tax (financial) structure for income from capital; alternative approaches are considered. The data presented can be used to implement either the traditional or the new view of the corporate cost of capital.Less
A quantitative and detailed description is presented of the US tax system and law, which begins by providing estimates of the rates of capital income taxation at both corporate and individual levels for the period 1947–86; property tax rates are also presented for household, non-corporate and corporate sectors. It is noted that the adoption of these tax preferences in the USA dramatically altered the incentives to invest in different types of assets and radically changed the distribution of the tax burden. Provisions are then discussed for capital cost recovery, including capital consumption allowances and the investment tax credit; next, a description is given of features of the financial structure of corporate and non-corporate businesses and households that affect the taxation of income from capital. Finally, the impact is considered of the Tax Reform Act of 1986 on the US tax system, especially in relation to the tax (financial) structure for income from capital; alternative approaches are considered. The data presented can be used to implement either the traditional or the new view of the corporate cost of capital.
George Mavrotas
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199278558
- eISBN:
- 9780191601590
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199278555.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Proposals for new institutional arrangements for Official Development Assistance (ODA) that exploit techniques for securitisation in the capital market can function as an innovative source for ...
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Proposals for new institutional arrangements for Official Development Assistance (ODA) that exploit techniques for securitisation in the capital market can function as an innovative source for generating the funds necessary for the achievement of Millennium Development Goals (MDGs). This chapter takes as an example of this type of proposal the International Finance Facility (IFF) proposal published in the United Kingdom in January 2003 jointly by HM Treasury and the UK Department for International Development (DFID). It discusses the IFF proposal in detail, describing its main technical details and financial structure, and elaborating on crucially important administration and implementation issues. The proposal is evaluated in terms of both its potential advantages and its shortcomings, as well as suggesting ways to strengthen the proposal further. The key challenges for IFF are summarised in the concluding section.Less
Proposals for new institutional arrangements for Official Development Assistance (ODA) that exploit techniques for securitisation in the capital market can function as an innovative source for generating the funds necessary for the achievement of Millennium Development Goals (MDGs). This chapter takes as an example of this type of proposal the International Finance Facility (IFF) proposal published in the United Kingdom in January 2003 jointly by HM Treasury and the UK Department for International Development (DFID). It discusses the IFF proposal in detail, describing its main technical details and financial structure, and elaborating on crucially important administration and implementation issues. The proposal is evaluated in terms of both its potential advantages and its shortcomings, as well as suggesting ways to strengthen the proposal further. The key challenges for IFF are summarised in the concluding section.
David G. Nason
- Published in print:
- 2011
- Published Online:
- August 2013
- ISBN:
- 9780262015615
- eISBN:
- 9780262295789
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262015615.003.0012
- Subject:
- Economics and Finance, Economic Systems
This chapter introduces the first signs that the United States is emerging from a period of failure of liquid markets such as markets for money-market mutual funds, for asset-backed commercial paper, ...
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This chapter introduces the first signs that the United States is emerging from a period of failure of liquid markets such as markets for money-market mutual funds, for asset-backed commercial paper, and for auction-rate securities. It is the chapter’s view that this crisis and all its problems could not have been prevented by regulation alone. Instead, a more robust regulatory framework with oversight responsibility for cross-market activities and a focus on systemic risk is what could have discovered and pre-empted the dangers on the economy. The chapter goes on to discuss a blueprint for a modernized financial regulatory structure that could help improve the mortgage-origination process and establish some federal presence in the insurance markets. This blueprint is aimed to address the regulatory problems of market stability, prudential supervision, and oversight of business conduct and consumer protection. It focuses on systemic risk in order to improve regulatory efficiency and allow competition on an economic basis.Less
This chapter introduces the first signs that the United States is emerging from a period of failure of liquid markets such as markets for money-market mutual funds, for asset-backed commercial paper, and for auction-rate securities. It is the chapter’s view that this crisis and all its problems could not have been prevented by regulation alone. Instead, a more robust regulatory framework with oversight responsibility for cross-market activities and a focus on systemic risk is what could have discovered and pre-empted the dangers on the economy. The chapter goes on to discuss a blueprint for a modernized financial regulatory structure that could help improve the mortgage-origination process and establish some federal presence in the insurance markets. This blueprint is aimed to address the regulatory problems of market stability, prudential supervision, and oversight of business conduct and consumer protection. It focuses on systemic risk in order to improve regulatory efficiency and allow competition on an economic basis.
Lars Oxelheim and Clas Wihlborg
- Published in print:
- 2008
- Published Online:
- May 2009
- ISBN:
- 9780195335743
- eISBN:
- 9780199868964
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195335743.003.0005
- Subject:
- Economics and Finance, Financial Economics
Volvo cars exposure have been measured for this chapter by means of time series regression analysis. The required data include quarterly actual cash flow figures for a substantial number of years, ...
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Volvo cars exposure have been measured for this chapter by means of time series regression analysis. The required data include quarterly actual cash flow figures for a substantial number of years, macroeconomic data, as well as proxies for industry- or firm-specific conditions. Issues of implementation are emphasized here and the interpretation of coefficients is discussed from the perspective of risk management. The coefficients for commercial cash flow exposures can easily be translated into financial positions that would provide hedges against macroeconomic exposures. The coefficients can also be helpful in decisions with respect to pricing strategy that affect exposures. Finally, the use of the coefficients for ex post analysis of what hedging has achieved and for performance filtering is illustrated.Less
Volvo cars exposure have been measured for this chapter by means of time series regression analysis. The required data include quarterly actual cash flow figures for a substantial number of years, macroeconomic data, as well as proxies for industry- or firm-specific conditions. Issues of implementation are emphasized here and the interpretation of coefficients is discussed from the perspective of risk management. The coefficients for commercial cash flow exposures can easily be translated into financial positions that would provide hedges against macroeconomic exposures. The coefficients can also be helpful in decisions with respect to pricing strategy that affect exposures. Finally, the use of the coefficients for ex post analysis of what hedging has achieved and for performance filtering is illustrated.
R. Glenn Hubbard
- Published in print:
- 2011
- Published Online:
- August 2013
- ISBN:
- 9780262015615
- eISBN:
- 9780262295789
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262015615.003.0007
- Subject:
- Economics and Finance, Economic Systems
This chapter begins mapping out a path towards financial regulatory reform. Using the belief that the financial crisis is the result of a lack of effective regulation, the chapter examines several ...
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This chapter begins mapping out a path towards financial regulatory reform. Using the belief that the financial crisis is the result of a lack of effective regulation, the chapter examines several themes that have emerged: one is more effective regulation, second is an increase in transparency in the financial system, and a final one is the formation of a financial regulatory structure that will be capable of achieving these goals. The chapter tackles the severity of the crisis, citing the International Monetary Fund’s estimate of total near-term global losses on U.S. credit-related debt to be $2.7 trillion. The origin of this financial crisis is believed to have its foundations in risk, particularly the mispricing of risk. The chapter then states that a rapid response is important to sustaining economic recovery, and the harmonization of economies is important when seeking to resolve financial crises.Less
This chapter begins mapping out a path towards financial regulatory reform. Using the belief that the financial crisis is the result of a lack of effective regulation, the chapter examines several themes that have emerged: one is more effective regulation, second is an increase in transparency in the financial system, and a final one is the formation of a financial regulatory structure that will be capable of achieving these goals. The chapter tackles the severity of the crisis, citing the International Monetary Fund’s estimate of total near-term global losses on U.S. credit-related debt to be $2.7 trillion. The origin of this financial crisis is believed to have its foundations in risk, particularly the mispricing of risk. The chapter then states that a rapid response is important to sustaining economic recovery, and the harmonization of economies is important when seeking to resolve financial crises.
Simone Polillo
- Published in print:
- 2013
- Published Online:
- September 2013
- ISBN:
- 9780804785099
- eISBN:
- 9780804785556
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9780804785099.003.0006
- Subject:
- Sociology, Economic Sociology
This chapter looks at the political foundations of creditworthiness in the case of 19th century Italy. Here, just like in the United States, economic and political communities commanded strong, local ...
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This chapter looks at the political foundations of creditworthiness in the case of 19th century Italy. Here, just like in the United States, economic and political communities commanded strong, local loyalties; however, the political authorities that administered them were infrastructurally weak, and their lack of administrative capacity impaired the regional elites’ ability to enforce law, stability and order on the territories they governed. The chapter discusses the positions of elite political movements that, with such administrative concerns in mind, debated whether Italy’s financial structure should be centralized, or decentralized, with the right to issue money distributed among several institutions, or, in the argument of certain liberals, rendered completely free (mimicking the US model). Given the lack of strong, legitimate local institutions, the Italian central state was eventually forced to play a directive role in the national financial system.Less
This chapter looks at the political foundations of creditworthiness in the case of 19th century Italy. Here, just like in the United States, economic and political communities commanded strong, local loyalties; however, the political authorities that administered them were infrastructurally weak, and their lack of administrative capacity impaired the regional elites’ ability to enforce law, stability and order on the territories they governed. The chapter discusses the positions of elite political movements that, with such administrative concerns in mind, debated whether Italy’s financial structure should be centralized, or decentralized, with the right to issue money distributed among several institutions, or, in the argument of certain liberals, rendered completely free (mimicking the US model). Given the lack of strong, legitimate local institutions, the Italian central state was eventually forced to play a directive role in the national financial system.
Seif I. Tag El-Din
- Published in print:
- 2005
- Published Online:
- March 2012
- ISBN:
- 9780748621002
- eISBN:
- 9780748653096
- Item type:
- chapter
- Publisher:
- Edinburgh University Press
- DOI:
- 10.3366/edinburgh/9780748621002.003.0012
- Subject:
- Society and Culture, Middle Eastern Studies
This chapter addresses the question of efficient financial structuring in relation to profit-sharing muārabah, which is typically characterised by two parties contracting for any profitable project a ...
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This chapter addresses the question of efficient financial structuring in relation to profit-sharing muārabah, which is typically characterised by two parties contracting for any profitable project a capital provider (rabb al-māl) and a manager or entrepreneur (muārib). Its focus is on the profit-sharing muārabah, since it is particularly relevant to the demand for banking finance. In principle, banks's clients are assumed to be a ‘deficit’ group with little funds to participate with banks, which explains why the basic theory of an Islamic bank has been developed along the principles of muārabah. The chapter elaborates the economic appeal of profit sharing, as opposed to fixed interest rate financing, in the current Islamic literature.Less
This chapter addresses the question of efficient financial structuring in relation to profit-sharing muārabah, which is typically characterised by two parties contracting for any profitable project a capital provider (rabb al-māl) and a manager or entrepreneur (muārib). Its focus is on the profit-sharing muārabah, since it is particularly relevant to the demand for banking finance. In principle, banks's clients are assumed to be a ‘deficit’ group with little funds to participate with banks, which explains why the basic theory of an Islamic bank has been developed along the principles of muārabah. The chapter elaborates the economic appeal of profit sharing, as opposed to fixed interest rate financing, in the current Islamic literature.
Jack M. Mintz and Alfons J. Weichenrieder
- Published in print:
- 2010
- Published Online:
- August 2013
- ISBN:
- 9780262014496
- eISBN:
- 9780262289658
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262014496.003.0001
- Subject:
- Economics and Finance, Econometrics
This introductory chapter first sets out the book’s purpose, which is to expand our knowledge of multinational finance and tax research by exploring multinational financial structures, especially ...
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This introductory chapter first sets out the book’s purpose, which is to expand our knowledge of multinational finance and tax research by exploring multinational financial structures, especially with respect to leverage and so-called “indirect financing structures.” The book spells out in more detail how different types of multinational financial planning and tax policy affect the choice of financing structures. It not only discusses these ideas in theory but also tests empirically effects on financial and ownership structures, using a unique data set (MiDi) on German multinationals provided by the Deutsche Bundesbank in Frankfurt. The chapter also discusses multinational direct and indirect financial structures and the role of conduit holding companies, followed by an overview of the subsequent chapters.Less
This introductory chapter first sets out the book’s purpose, which is to expand our knowledge of multinational finance and tax research by exploring multinational financial structures, especially with respect to leverage and so-called “indirect financing structures.” The book spells out in more detail how different types of multinational financial planning and tax policy affect the choice of financing structures. It not only discusses these ideas in theory but also tests empirically effects on financial and ownership structures, using a unique data set (MiDi) on German multinationals provided by the Deutsche Bundesbank in Frankfurt. The chapter also discusses multinational direct and indirect financial structures and the role of conduit holding companies, followed by an overview of the subsequent chapters.
Jack M. Mintz and Alfons J. Weichenrieder
- Published in print:
- 2010
- Published Online:
- August 2013
- ISBN:
- 9780262014496
- eISBN:
- 9780262289658
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262014496.003.0003
- Subject:
- Economics and Finance, Econometrics
This chapter analyzes the financing opportunities that derive from using an intermediate corporation in a third country. Such an intermediate company is referred to as a conduit entity or conduit ...
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This chapter analyzes the financing opportunities that derive from using an intermediate corporation in a third country. Such an intermediate company is referred to as a conduit entity or conduit company. It begins with a discussion of direct versus indirect financing structures. It then uses pairwise comparisons of financial instruments and draws conclusions regarding the tax advantage of indirect holding structures.Less
This chapter analyzes the financing opportunities that derive from using an intermediate corporation in a third country. Such an intermediate company is referred to as a conduit entity or conduit company. It begins with a discussion of direct versus indirect financing structures. It then uses pairwise comparisons of financial instruments and draws conclusions regarding the tax advantage of indirect holding structures.
Jack M. Mintz and Alfons J. Weichenrieder
- Published in print:
- 2010
- Published Online:
- August 2013
- ISBN:
- 9780262014496
- eISBN:
- 9780262289658
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262014496.003.0002
- Subject:
- Economics and Finance, Econometrics
This chapter focuses on those aspects of the international tax system that influence foreign direct investment, particularly with respect to direct and indirect financing structures that are highly ...
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This chapter focuses on those aspects of the international tax system that influence foreign direct investment, particularly with respect to direct and indirect financing structures that are highly affected by the interaction of worldwide corporate tax systems. It begins by discussing the concept of residency and double taxation treaties. This is followed by a discussion of taxing outbound investment from Germany and other major capital-exporting countries in relation to the taxation of foreign-source income and the allocation of costs between domestic and foreign activities. It then turns to inbound issues related to withholding taxes and the allocation of costs between domestic affiliates and foreign related parties. The chapter concludes with a discussion of conduit entities and implications for German outbound and inbound investment.Less
This chapter focuses on those aspects of the international tax system that influence foreign direct investment, particularly with respect to direct and indirect financing structures that are highly affected by the interaction of worldwide corporate tax systems. It begins by discussing the concept of residency and double taxation treaties. This is followed by a discussion of taxing outbound investment from Germany and other major capital-exporting countries in relation to the taxation of foreign-source income and the allocation of costs between domestic and foreign activities. It then turns to inbound issues related to withholding taxes and the allocation of costs between domestic affiliates and foreign related parties. The chapter concludes with a discussion of conduit entities and implications for German outbound and inbound investment.
Guillermo A. Calvo
- Published in print:
- 2003
- Published Online:
- February 2013
- ISBN:
- 9780226032146
- eISBN:
- 9780226032153
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226032153.003.0005
- Subject:
- Economics and Finance, International
This chapter presents an overview of recent financial crises in emerging market economies (EMs) with the goal of understanding their nature, find effective solution and prevent their future ...
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This chapter presents an overview of recent financial crises in emerging market economies (EMs) with the goal of understanding their nature, find effective solution and prevent their future occurrence. It proposes the hypothesis that EMs suffer from serious credibility problems and highly incomplete financial structures. This chapter provides examples of how capital flows could lead to socially costly crises and explains that some its flaws stem from imperfect information and incomplete markets. It also examines the role of the banking system, maturity of public-sector debt, exchange rates and controls on capital mobility.Less
This chapter presents an overview of recent financial crises in emerging market economies (EMs) with the goal of understanding their nature, find effective solution and prevent their future occurrence. It proposes the hypothesis that EMs suffer from serious credibility problems and highly incomplete financial structures. This chapter provides examples of how capital flows could lead to socially costly crises and explains that some its flaws stem from imperfect information and incomplete markets. It also examines the role of the banking system, maturity of public-sector debt, exchange rates and controls on capital mobility.
- Published in print:
- 2012
- Published Online:
- June 2013
- ISBN:
- 9780804780506
- eISBN:
- 9780804782197
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9780804780506.003.0005
- Subject:
- Business and Management, Strategy
This chapter describes the financial structure of public universities in the U.S. It analyzes the implications of the changing sources of revenue and the increasing competitive pressures facing ...
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This chapter describes the financial structure of public universities in the U.S. It analyzes the implications of the changing sources of revenue and the increasing competitive pressures facing public higher education and suggests that the shifts in demand and financing sources negatively affect current funding patterns and threaten research. This chapter highlights the need for public universities to adopt a fully supportive financial model and to narrow their scope of activities and focus on programs and research activities that provide selective differentiation and distinction.Less
This chapter describes the financial structure of public universities in the U.S. It analyzes the implications of the changing sources of revenue and the increasing competitive pressures facing public higher education and suggests that the shifts in demand and financing sources negatively affect current funding patterns and threaten research. This chapter highlights the need for public universities to adopt a fully supportive financial model and to narrow their scope of activities and focus on programs and research activities that provide selective differentiation and distinction.
Jack M. Mintz and Alfons J. Weichenrieder
- Published in print:
- 2010
- Published Online:
- August 2013
- ISBN:
- 9780262014496
- eISBN:
- 9780262289658
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262014496.003.0005
- Subject:
- Economics and Finance, Econometrics
This chapter analyzes the effect of company taxes on complex multinational financial decisions, using firms selected from the database of the Deutsche Bundesbank (MiDi). It shows that the ...
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This chapter analyzes the effect of company taxes on complex multinational financial decisions, using firms selected from the database of the Deutsche Bundesbank (MiDi). It shows that the debt-to-asset ratios of German outbound investment significantly depend on the host country tax rates. Intracompany loans react in a slight elastic way to tax rate changes, while third-party debt appears less flexible.Less
This chapter analyzes the effect of company taxes on complex multinational financial decisions, using firms selected from the database of the Deutsche Bundesbank (MiDi). It shows that the debt-to-asset ratios of German outbound investment significantly depend on the host country tax rates. Intracompany loans react in a slight elastic way to tax rate changes, while third-party debt appears less flexible.
Alan Hughes
- Published in print:
- 1994
- Published Online:
- January 2015
- ISBN:
- 9780198287889
- eISBN:
- 9780191828867
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198287889.003.0013
- Subject:
- Economics and Finance, Financial Economics
This chapter considers arguments and evidence for and against the view that smaller businesses in the UK have been constrained by equity or loan gaps in the past decade. It begins with an analysis of ...
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This chapter considers arguments and evidence for and against the view that smaller businesses in the UK have been constrained by equity or loan gaps in the past decade. It begins with an analysis of the comparative financial structure of large and small UK companies in the late 1980s, and of trends in their relative profitability since the late 1970s. This is followed by a review of theoretical arguments which might account for the differences in financial structure as observed in the data. On the basis of these reviews and similar information, the chapter argues that there is no compelling evidence of an overall failure in the supply of funds for smaller firms. However, there may be problems in the terms on which finance is available.Less
This chapter considers arguments and evidence for and against the view that smaller businesses in the UK have been constrained by equity or loan gaps in the past decade. It begins with an analysis of the comparative financial structure of large and small UK companies in the late 1980s, and of trends in their relative profitability since the late 1970s. This is followed by a review of theoretical arguments which might account for the differences in financial structure as observed in the data. On the basis of these reviews and similar information, the chapter argues that there is no compelling evidence of an overall failure in the supply of funds for smaller firms. However, there may be problems in the terms on which finance is available.
Barbara M. Tagg
- Published in print:
- 2013
- Published Online:
- May 2015
- ISBN:
- 9780199920686
- eISBN:
- 9780190268350
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780199920686.003.0006
- Subject:
- Music, Performing Practice/Studies
This chapter suggests ways a nonprofit children’s choir or youth choir organization can successfully navigate the financial world. When a new choir is established, artistic planning should be ...
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This chapter suggests ways a nonprofit children’s choir or youth choir organization can successfully navigate the financial world. When a new choir is established, artistic planning should be accompanied by responsible financial planning while a solid financial structure is necessary to sustain it. Managing balance sheets, revenue streams, grant writings, audits, and annual budgets is important in securing a strong financial structure for the choral organization. The founding director will likely have a good understanding of what specific resources will be needed because he knows what the vision will be for the choir.Less
This chapter suggests ways a nonprofit children’s choir or youth choir organization can successfully navigate the financial world. When a new choir is established, artistic planning should be accompanied by responsible financial planning while a solid financial structure is necessary to sustain it. Managing balance sheets, revenue streams, grant writings, audits, and annual budgets is important in securing a strong financial structure for the choral organization. The founding director will likely have a good understanding of what specific resources will be needed because he knows what the vision will be for the choir.
