Tag: Financial Crisis
Advanced Audit Principles and Practice
Executive Summary The recent financial crisis has led to a great deal of discussion about the role of the auditor and whether the increased regulations are now effective in reducing the chance of further difficulties of this type, in the future. By looking at the collapse of both Enron and Lehman Brothers, it can be […]
The 2007 to 2011 Financial Crisis Causes, Effects and Lessons
Abstract This paper provides a brief examination of the immediate causes and effects of the 2007 financial crisis, as well as an overview of lessons learned from it. I conclude that failure to properly regulate and supervise financial institutions set the stage for the crisis, while the US residential mortgage boom and bust triggered it. […]
Financial Analysis of Microsoft Corporation
Introduction BACKGROUND OF MICROSOFT Microsoft is the most prominent technology corporation in the world that deals with computers according to posts from big history.net. ’’ With annual revenues of more than $32 billion, Microsoft Corporation is more than the largest software company in the world: it is a cultural phenomenon. The company’s core business is […]
Value at risk: a quantitative study on the Nordic stock exchange
Abstract, The role of risk management has gained momentum in recent years most notably after the recent financial crisis. This thesis uses a quantitative approach to evaluate the theory of value at risk which is considered a benchmark to measure financial risk. The thesis makes use of both parametric and non parametric approaches to evaluate […]
Extreme conditional value at risk a coherent scenario for risk management
CHAPTER ONE 1. INTRODUCTION Extreme financial losses that occurred during the 2007-2008 financial crisis reignited questions of whether existing methodologies, which are largely based on the normal distribution, are adequate and suitable for the purpose of risk measurement and management. The major assumptions employed in these frameworks are that financial returns are independently and identically […]
The Asian Financial Crisis
Introduction 1. Background In recent years, the Asian Financial Crisis in 1997, and the two largest bankruptcies in the U. S. history- Enron in December 2001 and WorldCom in July 2002, have all served to highlight the importance of corporate governance (CG).
New Pathways for Credit Rating Agencies: A Critical Study of European and American Approaches
INTRODUCTION The financial crisis of 2007-08 revealed serious lapses in the functioning, regulation, supervision and governance of the financial markets globally. Although, it was the failure of Collateralised Debt Obligations (“CDOs”) especially the ones based on the subprime mortgage, that sparked the crisis, the mere fact that these carried the highest ratings proved the ratings to […]
A Critical Analysis of the 1997 Asian Financial Crisis
Abstract There exists vast literature regarding the 1997 Asian financial crisis. Wade (1998) observed that: Interpretations of the Asian crisis have coalesced around two rival stories: the “death throes of Asian state capitalism” story about internal, real economy causes; and the “panic triggering debt deflation in a basically sound but under-regulated system” story that […]
Derivatives and Securitization – Exam Notes
Derivatives: A derivative instrument is a contract between two parties that specifies conditions (especially the dates, resulting values of the underlying variables, and notional amounts) under which payments.
