Contemporary Issues in Bank Financial Management.

Front Cover -- Contemporary Issues in Bank Financial Management -- Copyright page -- Contents -- List of Contributors -- Contemporary Studies in Economic and Financial Analysis special edition - Volume 97 Contemporary Issues in Bank Financial M... -- References -- Active versus Passive Investing: An Empirical Study on The US and European Mutual Funds and ETFs -- Introduction -- Aim of the Study -- Literature Review -- Theoretical Background -- CAPM and Risk-Adjusted Models -- Single-Factor Regression Model -- Multi-Factor Regression Models -- Evidence on Active and Passive Management -- Evidence on Index Mutual Funds and Passive ETFs -- Methodology and Data -- Sample Description -- Asset Pricing Models, Benchmarks and Proxies -- Regression Models -- OLS and CLRM Assumptions -- Dataset and Residual Diagnostics Results -- Results and Analysis -- Orthodox Asset Pricing Models Results -- Portfolios' Characteristics Analysis -- Hybrid Equity Mutual Funds -- Active Management Costs as a Subsidy for Market Efficiency -- Conclusion -- Limitations and Recommendations for Future Research -- Notes -- References -- FX Hedging Using Forwards and 'Premium-Free' Options -- Introduction -- Literature Review -- Exotic (Barrier) Options -- Knock-Ins and Knock-Outs -- Structured Barrier Options - The Forward Extra -- Constructing a Forward Extra -- Understanding How the 'Zero-Premium' Is Achieved -- Window Forward Extra and At-Expiry Forward Extra -- The Possible Outcomes of a Forward Extra -- The Pay-off Diagram of a Forward Extra -- Hedging -- Long-Term and Short-Term Hedging -- Aim and Methodology -- Data Used -- Creating Portfolios -- Portfolio Coding Sample -- VIX Chart Analysis -- Plotting Histograms -- Findings -- Analysing the Portfolios' Risk -- Testing the Statistical Significance of Portfolios' Outcomes -- EURUSD Portfolio and the VIX Level.

Portfolios Histograms and Distribution Curves -- Interpretation of Histograms -- Kurtosis Analysis -- Summary of Findings -- Recommendations and Conclusions -- Recommendations for Professionals -- Introducing Additional Strategies -- Portfolios Risk -- Segregating Portfolios -- Histograms -- Recommendations for Clients -- Conclusion -- References -- APPENDIX A -- APPENDIX B -- APPENDIX C -- Director Trading in Malta: An Analysis of Returns -- Introduction -- Aim of Study -- Legislative Framework and Notification of Transactions by Directors in Malta -- Literature Review -- Impact of Purchases and Sales to Outsiders -- Impact of Volume of Trades -- Research Questions and Hypotheses -- Method -- Sample Selection Method and Data Adjustments -- Results and Discussion -- Conclusion -- Limitations and Recommendations for Future Research -- References -- Equity Mutual Fund Performance Evaluation: An Emerging Market Perspective -- Introduction -- Aim of the Research -- Literature Review -- From 'Unity Creates Strength' to the World's Most Popular Investment Vehicle -- Why Emerging Economies? -- Portfolio Performance Measures -- Mutual Fund Performance -- Determinants of Mutual Fund Performance -- Methodology and Data -- Sample Description -- Asset Pricing Models, Benchmarks and Proxies -- Model Design in the Regression Analysis -- The CLRM Assumptions -- Results and Analysis -- Asset Pricing Model Results for Mutual Funds with an Emerging Market Exposure -- Fund Managers' Investment Style Analysis -- Influence of Mutual Fund Characteristics on Risk-Adjusted Performance -- Size -- Total Expense Ratio -- Fund Longevity -- Risk -- Conclusion -- Limitations and Recommendations for Future Research -- References -- Recent Annual Report Weaknesses by a Supreme Audit Institution: An Analysis -- Introduction -- Literature Review -- Corporate Governance.

The Functions of Public Sector Auditing -- The Annual Report -- The Preparation Process of the Annual Report -- Research Methodology -- Classification of Reported Weaknesses in the Annual Reports -- Unstructured Interviews -- Research Findings -- Inadequate Record-Keeping -- Non-compliance with Policies and Procedures -- Lack of Authorisations -- Inadequate Safeguarding of Assets -- Lack of Reconciliations -- Inadequate Segregation of Duties -- Discussion -- The Issues and Their Significance: Beyond the Figures -- The Bigger Picture: Reflections on the Government System -- Communication and Its Adequacy -- Conclusion -- References -- Analysis of Risk Parity Approach for Sovereign Fixed-Income Portfolios in Eurozone Countries -- Introduction -- Bond Portfolios Creation throughout the Years -- Equity Research -- Fixed-Income Research -- Risk-Parity Concept -- Research Question and Hypothesis -- Moody's as the Unique Sole Provider of Credit Rating -- CDS as a Measure of Country Risk -- Methodology - The Creation of Bond Portfolios in This Study -- Debt-Risk Parity -- GDP-Risk Parity -- Rating-Risk Parity -- Fundamental-Risk Parity -- Fundamental-Ranking Risk Parity -- Fundamental-Weighting Risk Parity -- Risk Contributions -- The Karush-Kuhn-Tucker (KKT) -- Trading or Turnover Costs -- Limitations and Assumptions of the Methods -- Results and Analysis -- CDS for Eurozone Countries -- Risk Contribution Weights versus Actual Allocation -- Performance Analysis -- Yearly Performance -- Sub-periods Performance -- Tests of Significance -- Conclusion -- References -- APPENDIX A: DEFINITIONS AND ABBREVIATIONS -- APPENDIX B: MOODY'S RATING METHODOLOGY -- APPENDIX C: RISK CONTRIBUTIONS VERSUS ACTUAL WEIGHTINGS -- APPENDIX D: RISK METRICS -- The Evolution of the Retail Payment Market - A Focus on Malta -- Introduction -- Aim of Study -- Literature Review.

Developments in the Current Legislative and Regulatory Regime -- EU Directives and Regulations Binding Retail Payments -- The Current Impact and Challenges Faced by Stakeholders -- Developments in Retail Payment Methods -- The Approach towards Unregulated Virtual/Crypto Currencies -- Cost-Efficient, Innovative and Secure Retail Payments -- Looking Ahead into the Future -- Method -- Measures -- Participants and Criteria for Selection -- The Thematic Approach -- Sample Size and Selection -- Results and Discussion -- Legislation and Regulation Pertaining to Retail Payments -- Approach to Retail Payments in Malta -- Cost-Efficient, Regulated Innovative and Secure Retail Payments -- Target Customers and Customer Awareness -- Benefits for Malta's Economy -- Recommendations for Amendments to Current and Prospective Laws and Regulations -- Ability to Promote Cost-efficient, Innovative and Secure Retail Payments -- Envisaged Developments in the Retail Payment Market over the Next 5-10 Years -- Implications of the Research -- Recommendations for Future Research -- Concluding Note -- References -- About the Authors.

This special edition includes studies by the University of Malta, MSc Banking and Finance graduates and the respective lecturers, on financial services within particular countries or regions and studies of themes such as credit risk management, fund management and evaluation, forex hedging using derivatives and sovereign fixed income portfolios.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.