Corporate bonds, exchange rates and business strategy

Shock Effects on Stocks, Bonds, and Exchange Rates

Tick data and newswire searches are used to find events that led to large and rapid changes in a stock future, a bond future, and three exchange rate futures. Knowledge of these events may be useful in future work. They have the advantages that they are truly surprises and that the sign of their effect on each financial market is known. The events are used in this study to analyze the effects o...

Corporate social responsibility , business strategy , and the environment

We examine the concept of firms sacrificing profits in the social interest within the environmental realm, with particular focus on the case of the United States by addressing four key questions. May they do so within the scope of their fiduciary responsibilities to their shareholders? Can they do so on a sustainable basis, or will the forces of a competitive marketplace render such efforts and...

Business strategy and financial reporting readability

Business strategy exerts a considerable impact on complexities, risk and corporate environmental uncertainties as well as the way of providing financial reporting. On this line of argument, therefore, the present study seeks to scrutinize the effect of business strategy on corporate financial reporting readability. In doing so, Fog and Fletch indices are employed to measure financial reporting ...

Nonlinearity In Exchange Rates and Forecasting

Euro Corporate Bonds Risk Factors ∗

This paper investigates the determinants of credit spread changes on bonds denominated in Euro. The analysis is carried out using a panel data on Euro bonds. We try to asses the relative importance of market and idiosyncratic factors in explaining the movements in credit spread. Because credit spread changes can be easily viewed as an excess return of corporate bonds over treasury, we adopt a f...