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In NHSB's case, formidable business risks have been steadily emerging over the last several years. The Board has a fiduciary responsibility to make sure that NHSB is successful, and it is clear to us that the Bank has to grow if it is to break out of its current stagnation. If NHSB were to rely just on its history and goodwill in the community, i...
34 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 586 | Lượt tải: 0
Purely discretionary Young firms typically pay none NASDAQ dividend yield virtually zero Corporate culture influences dividends. Microsoft Liquidity constraints on dividends
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Journal of Business, 1961. Assume no taxes or transactions costs Consider purely financial transaction: selling shares to pay dividends M&M Conclusion: Dividend policy has no effect on the value of the firm. Purely nominal difference between dividend checks and repurchase checks.
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July 31, 1885 “it is neither politic nor right to study at the expense of one’s health.” Rowing. “When I fall in love she must be a girl of pure morality, broad culture and fine tastes.” “I have an earnest desire to be good and useful” April 4, 1886, roommate dies of a “cold.” May 29, 1887, “I take great satisfaction in my election to Bones for...
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Information has value, but producer of information is hard to define. Property rights can be entangled in maze of intersecting contracts. French law allows an artist to sell works subject to contract that it never be altered. Trust law in common law countries allows trustee to act on behalf of owner without intermingling own assets. Countries w...
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Paul Samuelson offered two-to-one odds to his colleague: colleague wins $200 if heads, loses $100 if tails. Colleague refused bet. Samuelson asked him if he would take 100 such bets. Colleague said yes. Samuelson proved mathematically that his colleague was not rational (from expected utility theory). [Scientia 98:108-13, 1963]
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Marginal investor: wealth matters Smart money: matter of degree. Limits to arbitrage theory Survival of fittest: life cycle renews
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All investors, regardless of risk preferences, will hold a combination of the riskless asset and the tangency portfolio of all risky assets. Therefore, only one asset need be made available to investors: a mutual fund that holds the tangency portfolio.
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McCarran Ferguson Act 1945 delegated insurance regulation to the states. Fifty different state regulators. National Association of Insurance Commissioners (NAIC) creates standardized suggested laws. In 1993 the NAIC adopted risk-based capital requirements. Gramm-Leach-Bliley Financial Modernization Act of 1999 allowed banks to affiliate with ins...
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Invention is important in institutions for risk management • Ideas, once developed, are then copied around the world • Human engineering is important in invention • Framing is critical part of risk inventions • Associated inventions, as with information technology, open up new possibilities • New technology (Internet, Turbo Tax, etc.) creat...
31 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 603 | Lượt tải: 0