Traditional Financial Instruments Research Articles

Financing Family Firms (Finanzierung von Familienunternehmen - Wie professionell ist die Unternehmensfinanzierung tatsächlich?)

Financing of family firms is a research field with many white spots. This study attempts to bring more light into the current state of research on the financing behavior in family firms. The paper analyses financial goals, financing decisions and the usage of specific financial instruments. Data was gained through a questionnaire that was answered by 237 German family firms. The results show, that the majority of family firms exhibits a professional financing behavior. For most families the achievement of financial goals is essential. The CFO is in most cases experienced, member of the management board and bases his decisions on long-term financial plans. Additionally, the study indicates that most family firms display on average a healthy equity ratio. Yet, most of them use almost exclusively traditional financial instruments, such as retained earnings and bank loans, and disregard innovative instruments.

Does History (Financial) Repeat Itself? An Evaluation of Price Manipulation and Volatility in Two Emerging Markets in Asia

This abstract was created post-production by the JFI Editorial Board. In this study we describe the interplay of regulatory adaptation and market forces in two emerging markets in South Asia, namely, India and Pakistan, which lend themselves especially for comparative analysis due to commonalities in institutional structures and traditional financial instruments and practices. The two markets share a common genesis, a common civil code, and similar cultural and regulatory environment. In recent times the two markets have had their own cycles of boom and bust, periods of superlative growth as well as of sharp decline and volatility. We draw comparisons between the regulatory response to financial scandals, speculation and volatility and its effectiveness in achieving declared objectives regarding market. We study episodes of speculative market behavior and regulatory response in India and Pakistan; two episodes in the former and one in the later. In these periods allegations of massive speculation, manipulation and scandals led to political pressures on the regulators to phase out a traditional institution common to the two countries, that is, of "badla" or Carry-Over-Trade (COT) financing.

An intermediation and payment system technology

This paper presents the Globe-ID(R) [3] electronic commerce enabling technology designed and developed by GC-Tech [2]. The most important design goal was to address electronic commerce as a whole, securing the essential steps of each e-commerce transaction: the offer, the order and the payment. Globe-ID(R) is a system based on an intermediation server which acts as a trusted third party for merchants and consumers. It contributes directly to the securization and notarization of the transactions, manages the e-commerce actors' accounts, and acts as a gateway to the private networks of traditional financial instruments. This paper presents the model, the protocol, and security features of this technology.

Bibliographic Guide to the Legal Aspects of International Finance

International finance is a fast growing and constantly changing area of economic activity. Along with permanent improvements in traditional financial instruments, totally new markets and products such as Eurocurrency markets of Eurobonds have been developed during recent decades. Legal aspects of international finance touch upon so many different problems that only a few of them can be covered in this guide and only in an introductory manner. The guide is not intended as a complete bilbiography but as a selection of some important or representative, general materials in English. The emphasis is on recent publications, which can easily lead to older and more extensive studies.