...J.P. Morgan Chase Faces Arising Issues Taylor A. Akinmoladun National American University Abstract J.P. Morgan Chase Bank has found their way into a lot of turmoil in recent years. Each having its own affect of the bank’s reputation. The famous Enron scandal is hard to forget, and some of J.P. Morgan’s executives are still being sued over the bank’s relationship with them, even over a decade later. Back in 2005 the bank made an interest rate swap with the city of Milan in which criminal charges are still pending with hearing occurring weekly. J.P. Morgan also made its way into the news over their mortgage foreclosures and mortgage backed securities. There have also been several lawsuits accusing the bank of aiding and abetting Bernie Madoff’s Ponzi scheme, the bank has been sued to get back some of Madoff’s clients’ money. Though all of these things are bad for business, a few things have topped the charts recently. Over the past year J.P. Morgan Chase has been wrapped up in three major issues. The first of which is the bank’s chief investment office’s $5 billion loss. The loss came from gambling on credit derivatives made by Bruno Iksil, “the London Whale”. In addition, traders tried hiding the losses from the home office. The second major issue I will address is the unethical push of their mutual funds. Being one of the country’s largest mutual fund managers, the bank was able to falsely promote and push their own mutual funds over those of better performing competitors. J...
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...Corporate Payout Policy Select three publicly listed companies. Analyse their recent dividend decisions and use these to support your critical assessment of the main theories of corporate payout policies. Dividend policy is one of the most important decisions that a manager of a firm makes in order to achieve the goal of the firm, maximising shareholder wealth. Determining a company's corporate payout policy is a question of "how much, when, and how", that is, the value of the payouts, when to deliver the surplus cash to investors, and in what form should the payouts be delivered. Corporate payout policy is also one of the most polarising topics in finance. Theorists such as DeAngelo and DeAngelo (2006a, 2006b, 2008), and Fama and French advance a theory on the financial life-‐cycle of the firm determining dividend policy. Other academics are less sanguine about how dividends affect the value...
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...Contents 1.0 Introduction and Motivation 1 2.0 Literature Review 2 3.0 Theoretical Framework 4 3.1 Stakeholder Theory 4 3.2 Positive Accounting Theory 5 3.2 Efficient Market Hypothesis 7 4.0 Discussion and findings 8 5.0 Conclusion 10 Reference 12 Relationship between Fair Value Measurements with Investor Confidence during Global Financial Crisis Abstract As investor, the needs of information which can reflect accurate financial information matching with current market condition is essential. Using fair value methods and measurement for asset valuation is one of the best accounting methods which can reflect current market condition accurately. But FVA cannot be separated from the critique especially when global financial crisis hit the world. Critique said FVA decrease investor confidence to invest in market which made more illiquid market during the time. In this paper, our aim is to find the relationship between fair value accounting, method, and measurement with investor confidence. We have been searched the data from previous journal that has been worked before to prove our assumption which are Fair value has decrease investor confidence and investor rely on information which is provided only by fair value measurement. 1.0 Introduction and Motivation There have been many studies on the role of FVA to global financial crisis (GFC) which may result in different opinion and open debate in the future. Most of the past research papers consist of the focus...
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...obesity and disease in America today? Obesity and chronic diseases such as diabetes and cardiovascular disease are at an all time high in the United States; studies link a high glycemic diet with obesity and chronic disease. The Worldwide Health Organization (WHO) reports that there are more than 1 billion overweight adults globally” (WHO, 2010). According to a 2005-2006 CDC study of the United States population, 34% of adults are obese. In addition, the International Diabetes Federation announced in 2006 that diabetes is becoming the epidemic of the 21st century with 246 million people affected worldwide (Lefebvre, 2006). Diabetes currently affects 23.5 million adults and 2 million adolescents in the United States with 1.6 million new cases diagnosed each year (American Diabetes Association, 2007). The WHO also reports that heart disease is the top cause of death in the world and in high-income countries like the United States (WHO, 2004). In 2006 the American Heart Association estimated that 81,100,000 million people in the United States have some form of Heart Disease (American Heart Association, 2006). Despite the fact that high glycemic foods do not affect all people the same way, high glycemic diets are killing Americans because they increase the risk of obesity and disease. High glycemic diets are prevalent in America today. Due to the rise of coronary heart disease in the 1970’s and 1980’s, the USDA came out with a new food pyramid in 1992 (Willett & Stampfer, 2002)...
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...For exclusive use at ESADE, 2015 W14540 DISRUPTING WALL STREET: HIGH FREQUENCY TRADING 1 Brad Evans wrote this case under the supervision of Professor Derrick Neufeld solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-10-29 The day after the public release of the book Flash Boys, on April 1, 2014 CNBC invited Michael Lewis (New York Times best-selling author of Moneyball and The Blind Side), 2 along with Brad Katsuyama (chief executive officer [CEO] and co-founder of the new Investors Exchange or IEX) and Bill O’Brien (president of BATS Global Markets, Inc.), to talk about high frequency trading (HFT). The ensuing debate was explosive. O’Brien opened the interview with the following charge,...
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...Market Efficiency and the Johannesburg Securities Exchange Table of Contents 1. Abstract 3 2. Introduction 4 3. The Johannesburg Securities Exchange 4 3.1. History 4 3.2. Function 5 4. The Efficient Market Hypothesis 5 4.1. Strong From 6 4.2. Semi-strong form 6 4.3. Weak form 7 4.4. Random Walk Hypothesis 8 5. Empirical evidence 9 5.1. Joint Hypothesis Problem 10 5.2. Capital Asset Pricing Model 11 5.3. Empirical evidence on investor overreaction 12 6. Comparisons to international stock markets 13 7. Conclusion 15 9. Bibliography 16 1. Abstract The JSE is a securities exchange based in South Africa and is considered to be the largest on the African continent. More than 400 stocks are traded on the JSE and as a result, it is important that investors are aware of the relevant information regarding stocks, which would enable investors to make sound investments. The Efficient Market Hypothesis is used to ascertain whether certain stocks and their respective prices in a particular market reflect all necessary information, which would illustrate an efficient market (Fama, 1970). Carrado and Jordan (2000) supports the aforementioned statement by affirming that markets are efficient in terms of sources of specific information, on condition that information is not exploited to earn above average returns. Furthermore, Fama (1965) explained the efficiency of markets and their stock prices by analyzing the three forms of...
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...corporate world, AI is widely used for complex problem-solving and decision-support techniques in real-time business applications. The business applicability of AI techniques is spread across functions ranging from finance management to forecasting and production. In the fiercely competitive and dynamic market scenario, decision-making has become fairly complex and latency is inherent in many processes. In addition, the amount of data to be analyzed has increased substantially. AI technologies help enterprises reduce latency in making business decisions, minimize fraud and enhance revenue opportunities. Definition of AI AI is a broad discipline that promises to simulate numerous innate human skills such as automatic programming, case-based reasoning, neural networks, decision-making, expert systems, natural language processing, pattern recognition and speech recognition etc. AI technologies bring more complex data-analysis features to existing applications. There are many definitions that attempt to explain what Artificial Intelligence (AI) is. I like to think of AI as a science that investigates knowledge and intelligence, possibly the intelligent application of knowledge. Knowledge and Intelligence are as fundamental as the universe within which they exist, it may turn out that they are more fundamental. One of the aims of AI is said to be the investigation of human cognition and AI is part of Cognitive Science. AI is really an investigation into the creation of intelligence...
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...USAWC STRATEGY RESEARCH PROJECT TEAMBUILDING: A STRATEGIC LEADER IMPERATIVE by Colonel Christopher J. Putko United States Army Doctor Craig Bullis Project Adviser This SRP is submitted in partial fulfillment of the requirements of the Master of Strategic Studies Degree. The U.S. Army War College is accredited by the Commission on Higher Education of the Middle States Association of Colleges and Schools, 3624 Market Street, Philadelphia, PA 19104, (215) 662-5606. The Commission on Higher Education is an institutional accrediting agency recognized by the U.S. Secretary of Education and the Council for Higher Education Accreditation. The views expressed in this student academic research paper are those of the author and do not reflect the official policy or position of the Department of the Army, Department of Defense, or the U.S. Government. U.S. Army War College CARLISLE BARRACKS, PENNSYLVANIA 17013 Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations...
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...FIN 4414 Financial Management Course Syllabus Spring 2010 Term INSTRUCTOR: Dr. T. Craig Tapley Graham-Buffett Master Lecturer of Finance Section: Section: Room: 2109 – Monday and Wednesday, Periods 3-4 (9:35 a.m. – 11:30 a.m.) 7111 – Monday and Wednesday, Periods 5-6 (11:45 a.m. – 1:40 p.m.) 112 Matherly Hall Office Hours: Wednesday (2:00 p.m. - 3:00 p.m.) Thursday (1:00 p.m. - 2:30 p.m.) CONTACT INFORMATION: Office: Phone: Fax: E-Mail: 329 David Stuzin Hall (352) 392-6654 (352) 392-5237 ctapley@ufl.edu http://vista.courses.ufl.edu/ Class Webpage: COURSE MATERIALS: TEXTBOOK 1. Financial Management: Theory and Practice (12th Edition), Eugene F. Brigham and Michael C. Ehrhardt, Thompson/South-Western, 2008, ISBN: 0-324-42269-5. The official textbook for the class will be an excellent reference book as you start your career, as you may easily find that there will be times, on the job, when you need to reference prior material, or formulas, covered in your corporate finance classes at UF. However, books have become somewhat expensive, so you may, instead, purchase the 11th or 10th Edition of the book, typically at a cheaper price, through various online booksellers. However, there are minor differences between the 10th, 11th, and 12th editions; mainly in the order of the chapter. These differences should not impact your ability to perform well in this class, but you may need to map the chapters in the 10th or 11th Edition to those assigned in the 12th Edition. This is...
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...Traditional VS Islamic Financial Derivatives To: Prof. Naser Abu Mustafa By: Mwaffaq Al Jayousi & Mohammad Al Shdooh Abstract This study focuses the light on defining financial derivatives and briefly describe their different types (Options, Forwards, Futures, Swaps, etc.). At the same time it tries to find if these financial derivatives exists in the Arab world, how they are implemented, and if we have an Islamic alternatives for them. Introduction There is a big debate in the Arab world regarding the usage of financial derivatives, Wither they are legal according to Islam or not, and If they are illegal in Islam; are there any Islamic alternatives to them. First we have to ask our self: Is there any need to use derivatives? And why they recently became so popular in the western countries? The need for financial derivatives emerges when people realize that there must be a way to reduce the risk associated with the trading of different kinds of goods. Risks such as price fluctuations and the uncertainty about the future market conditions. And since there are some people who are willing to bear this risk instead of us, this market took off and recently because of the communications revolution it flourished. Then why these financial derivatives did not reach the Arab world? The answer is simply because they hugely rely on speculations and anticipation; which are considered illegal according to Islam. But someone can ask: if it is illegal in Islam, then how come we...
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...VALUATION OF GOODWILL WHAT IS GOODWILL? The value of a business is not always defined by what assets it owns and what it owes. A successful business will develop customer loyalty and an overall positive reputation in its community, which will cause its market value to be greater than its book value. A company may also generate a higher value if it proves over time that it can generate superior revenues than its competition through managerial expertise, its reputation within its business sector, and other company attributes. The difference between the value of a company as reflected in its balance sheet and its market value is known as its goodwill. Accounting goodwill is the excess value of a firm's net assets and is recorded at time of business acquisition or combination. Goodwill is not associated with a physical object that the business owns, so it is an intangible asset and is listed on a company's balance sheet. In comparison, economic goodwill refers to company attributes that are hard to quantify, such as brand loyalty, brand recognition, company innovation, and executive talent. A company can list goodwill on its balance sheet when it acquires another business at a higher cost than what the assets and liabilities on the acquired company's balance sheet dictate. In short, goodwill equals the acquisition price minus net assets. Say a business was purchased for 100 million. Its assets were worth 80 million but it had 30 million in liabilities. The acquired business'...
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...Ethics: Behavior, Sustainability and Social Responsibility 2 August 2013 Abstract Though there are business leaders and philosophers that object to the belief or need of exhausting time, money or resources for the welfare of its people, be it consumers or employees, data indicates that those who do recognize their noblesse oblige will prosper (BP, pg 149). Practicing ethical business operations has been a talked about subject since the eighteenth and nineteenth centuries. Whether it is sustainability or social responsibility, approaches to business ethics have yet to be standardized. At the peak of today’s ethical environmental dilemmas stands Monsanto, the organization that prides itself on the ability to create sustainable agriculture. There are also scandals with regard to scrupulous or fraudulent investors, such as Bernard Madoff, who prosper at the expense of trusting individuals. Lending institutions have also taken advantage of the financially ill-informed consumers who have lost their homes and in some cases their families and lives as a result of subprime lending practices (cite). Toyota, who was once known as one of the world’s fastest growing auto makers (cite) deliberately ignored the safety of its consumers in effort to continue maximizing its profits. Organizations lacking business morals must understand that responsibility does not rest on one source, but rather it should be a collaborative effort between the companies, governments, and individuals...
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...JARAF The Journal of applied research in accounTing and finance V O L U M E 3 , i s s U E 1 , 2 0 0 8 Old Wine in New Bottles: Subprime Mortgage Crisis – Causes and Consequences Michael Mah-Hui Lim Information Lost: A Descriptive Analysis of IFRS Firms’ 20-F Reconciliations Marlene Plumlee and R. David Plumlee Negative Goodwill: Issues of Financial Reporting and Analysis Under Current and Proposed Guidelines Eugene E. Comiskey and Charles W. Mulford Electronic copy available at: http://ssrn.com/abstract=1263280 JARAF The Journal of applied research in accounTing and finance Publication Information JARAF - The Journal of Applied Research in Accounting and Finance is a scholarly peerreviewed journal jointly published by The Centre for Managerial Finance at Macquarie Graduate School of Management and the Faculty of Economics and Business at The University of Sydney. All journal articles published in JARAF are subjected to double-blind peer-reviews by qualified international experts. Months of Distribution: July – December Current Edition: Volume 3, Issue 1 (2008) ISSN 1834-2582 (Print) ISSN 1834-2590 (Online) Editors Tyrone M. Carlin Professor of Financial Reporting & Regulation Faculty of Economics and Business The University of Sydney NSW 2006 Australia Nigel Finch Director, Centre for Managerial Finance Macquarie Graduate School of Management Macquarie University NSW 2109 Australia Editorial Advisory Board Edward I. Altman Max L. Heine Professor...
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...Avoid News Towards a Healthy News Diet By Rolf Dobelli Prologue This article is the antidote to news. It is long, and you probably won’t be able to skim it. Thanks to heavy news consumption, many people have lost the reading habit and struggle to absorb more than four pages straight. This article will show you how to get out of this trap – if you are not already too deeply in it. of what we are designed to handle. This leads to great risk and to inappropriate, outright dangerous behavior. In the past few decades, the fortunate among us have recognized the hazards of living with an overabundance of food (obesity, diabetes) and have started to shift our diets. But most of us do not yet understand that news is to the mind what sugar is to the body. News is easy to digest. The media feeds us small bites of trivial matter, tidbits that don’t really concern our lives and don’t require thinking. That’s why we experience almost no saturation. Unlike reading books and long, deep magazine articles (which requires thinking), we can swallow limitless quantities of news flashes, like bright-colored candies for the mind. Today, we have reached the same point in relation to information overload that we faced 20 years ago in regard to food intake. We are beginning to recognize how toxic news can be and we are learning to take the first steps toward an information diet. This is my attempt to clarify the toxic dangers of news – and to recommend some ways to deal with it. I have now gone without...
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...This book has been optimized for viewing at a monitor setting of 1024 x 768 pixels. MADE TO STICK random house a new york MADE TO STICK Why Some Ideas Survive and Others Die • • • C H I P H E AT H & D A N H E AT H Copyright © 2007 by Chip Heath and Dan Heath All rights reserved. Published in the United States by Random House, an imprint of The Random House Publishing Group, a division of Random House, Inc., New York. Random House and colophon are registered trademarks of Random House, Inc. Library of Congress Cataloging-in-Publication Data Heath, Chip. Made to stick : why some ideas survive and others die / Chip Heath & Dan Heath p. cm. Includes index. eISBN: 978-1-58836-596-5 1. Social psychology. 2. Contagion (Social psychology). 3. Context effects (Psychology). I. Heath, Dan. II. Title. HM1033.H43 2007 302'.13—dc22 2006046467 www.atrandom.com Designed by Stephanie Huntwork v1.0 To Dad, for driving an old tan Chevette while putting us through college. To Mom, for making us breakfast every day for eighteen years. Each. C O N T E N T S INTRODUCTION WHAT STICKS? 3 Kidney heist. Movie popcorn. Sticky = understandable, memorable, and effective in changing thought or behavior. Halloween candy. Six principles: SUCCESs. The villain: Curse of Knowledge. It’s hard to be a tapper. Creativity starts with templates. CHAPTER 1 SIMPLE 25 Commander’s Intent. THE low-fare airline. Burying the lead and the inverted pyramid. It’s the...
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