In this paper we present the fundamental approaches of financial economics to valuation. Three methods are demonstrated by which financial economists account for risk. We illustrate how these methods relate to one another and how they can be applied in the valuation of risky corporate bonds, guaranteed investment contracts (GICs) with and without interest rate contingencies, and whole life insu...

We study risk and return characteristics of CDOs using the market standard models. We find that fair spreads on CDO tranches are much higher than fair spreads on similarly-rated corporate bonds. Our results imply that credit ratings are not sufficient for pricing, which is surprising given their central role in structured finance markets. This illustrates limitations of the rating methodologies...

To balance the load and to discourage the free-riding in peer-to-peer (P2P) networks, many incentive mechanisms and policies have been proposed in recent years. Global peer ranking is one such mechanism. In this mechanism, peers are ranked based on a metric called contribution index. Contribution index is defined in such a manner that peers are motivated to share the resources in the network. F...

This study considers the effects of the financial institutions’ local topology structure in the financial network on their systemic risk contribution using data from the Chinese stock market. We first measure the systemic risk contribution with the Conditional Value-at-Risk (CoVaR) which is estimated by applying dynamic conditional correlation multivariate GARCH model (DCC-MVGARCH). Financial n...

Based on valuation model of residual earnings, we cannot use earnings and losses of balance sheet items recorded in fair value for valuation purposes, for the balance sheet provides a perfect estimate of such items’ value. The purpose of this study is to examine whether net financial expenses are related to the market price of stocks in Iran, because after initial recording of financial debts, ...

Law enforcement must be administered fairly to preserve justice and security in a nation. This is essential because it contributes maintaining public order safety. Fair law can maintain by ensuring that those who violate the are punished proportionally for severity of their offences. study seeks determine increase deterrence against corruption efforts trust enforcement. In addition knowing enha...

Priority setting is inevitable on the path towards universal health coverage. All countries experience a gap between their population's health needs and what is economically feasible for governments to provide. Can priority setting ever be fair and ethically acceptable? Fairness requires that unmet health needs be addressed, but in a fair order. Three criteria for priority setting are widely ac...

the introductory issue of the journal of financial research contains six articles in farsi and one in english. it also offers a glossary of financial terminology. the first article deals with the efficient capital market hypothesis , and is authored by dr. ali jahankhani & hussein abdoh tabrizi. it explains the concept and theories of capital market efficiency and their historical development i...