Much of the underlying demand for OTC derivatives originates from non-dealer financial institutions, such as institutional investors, or non-financial corporations (collectively referred to as ‘non-dealers’ in this article). Often, such firms use OTC derivatives to hedge financial risks arising from their investments or real economic activities. A life insurance provider, for instance, may use ...

The net foreign asset positions (NFAP) of developing countries and emerging markets tend to be short equity and either short or long debt, while most industrial nations are long equity and short debt. This paper proposes that financial system inefficiencies associated with underdeveloped financial markets can explain this difference in the NFAPs. Financial system imperfections typically found i...

STUDY OBJECTIVE To investigate adverse social consequences of limiting longstanding illness and the modifying effect of socioeconomic position on these consequences. DESIGN Cohort study on the panel within the annual Swedish Survey of Living Conditions where participants were interviewed twice with eight years interval 1979-89 and 1986-97. Sociodemographic characteristics, self reported longs...

PURPOSE to examine the combined effect of cohabitation status and social participation, respectively, and socioeconomic position on onset of mobility limitations in a prospective study among older Danes. DESIGN AND METHODS logistic regression analyses with combined exposure variables were performed in a study population of 2,839 older men and women from the Danish Intervention Study on Preven...

Disagreement in Partners’ Reports of Financial Difficulty We use unique data in which both partners report about household finances to demonstrate that there is often disagreement about whether the household has experienced financial difficulty in the past year. Four alternative explanations for this disagreement are tested using the data. The results indicate that disagreement may be related t...

The financial statement audit is the process of collecting, evaluating, and aggregating relevant items of evidence pertaining to various management assertions related to the financial statement accounts to determine whether the company’s financial statements present fairly its financial position. The Dempster-Shafer theory [1] of belief functions has been argued to be an appropriate framework f...

In the wake of the global financial crisis much attention has been devoted to the role of complexity of bank linkages in the transmission of shocks. We shed light on this issue using a rich dataset on international syndicated bank lending matched with bank financial information. To study how financial crises spread through the global banking network, we distinguish among channels such as banks'...

Traditional project investment methods, such as the discounted cash flow (DCF) with a fixed static plan, are no longer sufficient to assist the corporate strategies of seizing opportunities and profitability. The option pricing formula includes a theoretical framework for pricing financial options, assuming that the risk in a financial hedged position is zero, if the option is adjusted continuo...