Contents -- Acknowledgments -- List of Contributors -- Introduction and Overview -- Part I: Banking and International Finance -- Part II: Corporate Finance and Investments -- Part I: Banking and International Finance -- Chapter 1: Value-at-Risk Disclosures and the Implications on Bank Stakeholders Jason Ball and Victor Fang -- 1. Introduction -- 2. Market Risk and Value-at-Risk Disclosures -- 3. Related Literature and Hypothesis Development -- 3.1. Flow-On Effects of VaR -- 3.2. Firm-Specific Determinants of VaR -- 4. Data and Methodology -- 4.1. Sample -- 4.2. Additional Variables -- 4.3. Hypothesis 2 -- 4.4. Hypothesis 3 -- 4.5. Hypothesis 4 -- 5. Empirical Results -- 5.1. Hypothesis 1 -- 5.2. Hypothesis 2 -- 5.3. Hypothesis 3 -- 5.4. Hypothesis 4 -- 6. Conclusion -- Endnotes -- Acknowledgment -- References -- Chapter 2: Ex-Ante Versus Ex-Post Regulation of Bank Capital Arup Daripa and Simone Varotto -- 1. Introduction -- 2. The Model -- 2.1. The Bank's Objective Function -- 2.2. The Regulator's Objective Function -- 2.3. Information -- 2.4. A Picture of the Model -- 3. The Regulatory Benchmark -- 4. Ex-Ante Regulation -- 4.1. Result 1 (Importance of Information on Underlying Risk) -- 4.2. Result 2 (Relative Unimportance of Information on Managerial Risk Aversion) -- 5. Ex-Post Regulation -- 5.1. Result 3 (Use of Bank's Expertise) -- 5.2. Result 4 (Importance of Information on the Manager's Type) -- 6. Combining Ex-Ante and Ex-Post Regulation -- 6.1. Result 5 -- 6.2. Result 6 (Asymmetry Under High Safety Bias) -- 7. Regressive Property and Bunching Effect: An Example with Linear Penalties -- 8. Two Special Cases -- 8.1. Poor Bank Information on Risk -- 8.2. Result 7 -- 8.3. Absence of Full Control Through Penalties -- 8.4. Result 8 -- 9. Ex-Ante and Ex-Post Regulation in Basel II -- 10. Conclusion -- Endnotes -- References.

Chapter 3: Effects of International Interbank Loans on Twin Crises Erhan Uluceviz and Levent Yildiran -- 1. Introduction -- 2. Econometric Model and Data Sources -- 2.1. Sample -- 2.2. Econometric Model -- 2.3. Dependent Variable -- 2.4. Independent Variables -- 3. Analysis and Results -- 4. Conclusions -- Appendix -- A.1. List of Countries -- A.2. Data Sources and Definitions -- A.3. IIBL/GDP Ratios in Crises -- Endnotes -- References -- Chapter 4: International Transmission Effects of Volatility Between Financial Markets in the G-7 Since the Introduction of the Euro Lucía Morales -- 1. Introduction -- 2. Literature Review -- 3. Data and Methodology -- 4. Empirical Results -- 4.1. Descriptive Statistics -- 4.2. Unit Root Tests -- 4.3. Likelihood Ratio Test -- 4.4. Volatility Persistence -- 4.5. Volatility Spillovers -- 4.6. Asymmetric Spillovers -- 4.7. Diagnostic Tests -- 5. Conclusions -- Endnotes -- References -- Chapter 5: Country-of-Origin Determinants of Value Creation in International Joint Ventures: A Comparison of Hong Kong and U.S. Investments in China Usha R. Mittoo, Dennis Chung and Zhou Zhang -- 1. Introduction -- 2. Literature Review and Testable Hypotheses -- 2.1. Cultural Distance Between Home and Host Country -- 2.2. Home Market Size -- 2.3. Selection of Host and Home Countries -- 3. Data and Methodology -- 3.1. Data and Sample Description -- 3.2. Comparison of the Firm and Industry Characteristics -- 3.3. Event Study Methodology -- 4. Empirical Evidence -- 4.1. Average Wealth Effects of Joint Venture Announcements -- 4.2. Cross-Sectional Regressions -- 4.3. Regression Results: The Determinants of Wealth Gains -- 5. Summary and Conclusions -- Endnotes -- References.

Chapter 6: Maturity Transformation Strategies and Interest Rate Risk of Financial Institutions: Evidence from the German Market Hendrik Scholz, Stephan Simon and Marco Wilkens -- 1. Introduction -- 2. Interest Rate Sensitivities and Empirical Tests -- 2.1. Principal Regression Approach -- 2.2. Derivation of the Maturity Transformation Factors -- 3. Empirical Analysis -- 3.1. Data -- 3.2. Comparison of Interest Rate Factor -- 3.3. Capital Markets Based Maturity Estimates for Financial Institutions -- 4. Conclusion -- Endnotes -- References -- Chapter 7: Asymmetries in the Market Price of Risk: Evidence from Latin America Gökçe Soydemir, Rahul Verma and Jose Moreno -- 1. Introduction -- 2. Literature Review -- 3. Econometric Methodology -- 3.1. Data and Descriptive Statistics -- 4. Empirical Results -- 5. Concluding Remarks -- Endnotes -- References -- Part II: Corporate Finance and Investments -- Chapter 8: Corporate Governance Institutions as Signaling and Commitment Devices Angelo Baglioni -- 1. Introduction1 -- 2. Related Literature -- 2.1. The Theory of Corporate Boards -- 2.2. Empirical Evidence -- 3. A Basic Model with Moral Hazard and Adverse Selection -- 4. Governance Regulation as a Commitment Device -- 5. Self-Regulation as a Separating Tool -- 6. Concluding Remarks: Empirical Implications -- Appendix -- Endnotes -- References -- Chapter 9: Managing the Costs of Issuing Common Equity: The Role of Registration Choice Jennifer E. Bethel and Laurie Krigman -- 1. Introduction -- 2. Traditional Registration of Common Equity Offerings -- 3. A Brief History of Shelf Registration -- 4. The Data -- 5. Who Uses Shelf Registrations? -- 6. Costs of Issuing Equity -- 7. Why Do Some High Information Asymmetry Firms Choose Shelf Registration? -- 8. Conclusion -- Endnotes -- Acknowledgments -- References.

Chapter 10: The Impact of Arrangers and Buyout Sponsors on Loan Pricing in LBOs: A Cross Border Study Kenneth Daniels and Irwin Morgan -- 1. Introduction -- 2. Literature Review -- 3. Hypothesis Development -- 4. Data and Preliminary Results -- 4.1. Descriptive Statistics and Univariate Results -- 5. Multivariate Tests and Results -- 5.1. Model and Control Variables -- 5.2. Regression Results -- 5.2.1. U.S. vs. European LBOs -- 5.2.2. Number of Arrangers -- 6. Conclusion -- Endnotes -- References -- Chapter 11: Ownership Control and Valuation Changes for Earning Announcements around U.S. Cross-Listings by Canadian Firms Lawrence Kryzanowski and Arturo Rubalcava -- 1. Introduction -- 2. Sample and Data -- 3. Abnormal Returns around the Announcements of Quarterly Earnings -- 3.1. Empirical Results -- 4. Determinants of Firm Value Changes around Earnings Announcements -- 4.1. Hypotheses -- 4.2. Methodology -- 4.3. Descriptive Statistics -- 4.4. Determinants of Changes in Firm Values -- 5. Concluding Remarks -- Appendix A: Benefits for Non-U.S. Firms from U.S. Cross-Listings -- Endnotes -- References -- Chapter 12: Analysis of the Investment Potential and Inflation-Hedging Ability of Precious Metals James R. McCown and John R. Zimmerman -- 1. Introduction -- 2. Data -- 3. Basic Statistics -- 4. Estimates of the Capital Asset Pricing Model -- 5. How Do Prices of the Metals Correlate with Expected Future Inflation? -- 6. Conclusions -- References -- Chapter 13: Corporate Governance and Ownership Structure in Emerging Markets: Evidence from Latin America Diego Cueto -- 1. Introduction -- 2. Empirical Approach: Aggregation of Voting Rights and Cash-Flow Rights -- 3. Literature Review -- 4. Description of the Data -- 5. Results -- 6. Concluding Remarks -- References -- Chapter 14: Asymmetric Impact of News on Stock Return Volatility Joon-Young Song.

1. Introduction -- 2. Data -- 3. Models -- 3.1. Models for Return Volatility Spillovers -- 3.1.1. Model I-A: Spillover GARCH(1,1)-M for Pairwise Effects 1st stage: GARCH (1,1) process -- 3.1.2. Model I-B: Spillover GARCH(1,1)-M for Simultaneous Effects 1st stage: GARCH (1,1)-M process -- 3.2. Models for the Asymmetric News Impact on Volatility Spillovers -- 3.2.1. Model II: Spillover GJR-GARCH (1,1)-M for Pairwise Effects 1st stage: GARCH (1,1) process -- 4. Empirical Results -- 4.1. Size-Sorted Portfolios -- 4.1.1. Volatility Spillover Effects -- 4.1.2. Asymmetric Impacts of News on Volatility Spillovers -- 4.2. Market- and Industry-Sorted Portfolios -- 4.2.1. Volatility Spillover Effects6 -- 4.2.2. Asymmetric Impacts of News on Volatility Spillovers -- 5. Conclusions -- Endnotes -- References -- Index.