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• Convertible Preferred Stock in Venture Capital Financing

  BNET - 2006-03-01

  This paper provides an explanation for the widespread use of senior convertible preferred stock in venture capital financing. One develops a model of cash constrained entrepreneurs who need an investor to finance their project. Investors can either be uninformed, such as small individual bondholders, or informed, such as venture capitalists...

  Tags: Convertible Preferred Stock, Investor, University Of Oxford, Venture Capital, Investment, Financial Accounting, Finance, Financing Startups

• Regulating Financial Conglomerates

  BNET - 2005-03-01

  This paper investigates the optimal regulation of financial conglomerates which combine a bank and a non-bank financial institution. The conglomerate's risk-taking incentives depend upon the level of market discipline it faces, which in turn is determined by the conglomerate's liability structure. It further examines optimal capital requirements for standalone institutions,...

  Tags: Financial, University Of Oxford, Conglomerate, Financial Accounting, Finance

• Sarbanes-Oxley, Corporate Governance And Operational Risk

  BNET - 2004-07-22

  The paper presents general discussion of the Sarbanes-Oxley Act and its wider implications, with particular reference to operational risk management. The discussion concentrates upon conceptual issues: how one should define operational risk, how it can be measured, and some standard statements about operational risks which strike me as ill-conceived. In...

  Tags: Risk, Sarbanes-Oxley Act, Corporate Governance, University Of Oxford, Sarbanes-Oxley, Regulatory Compliance, Regulations, Strategy, Security, Government, Financial Accounting, Finance, Human Resources, Policies And Procedures, Management

• Entrepreneurial Finance With Heterogeneous Investors

  BNET - 2004-07-07

  This paper presents a model of cash constrained entrepreneurs, who raise money from uninformed investors such as shareholders or bond holders, or from informed investors like venture capitalists or banks. There is a moral hazard problem, which can be partially overcome through monitoring by informed investors. However, monitoring is only...

  Tags: Entrepreneurial, Bond, Investor, University Of Oxford, Financial Accounting, Finance

• Distinguished Limits of Levy-Stable Processes, and Applications to Option Pricing

  BNET - 2004-03-27

  This paper derives analytic expressions for the value of European put and call options when the stock process follows an exponential Levy-Stable process. It is shown that the generalized Black-Scholes operator for the Levy-Stable case can be obtained as an asymptotic approximation of a process where the random variable follows...

  Tags: Pricing Strategy, University Of Oxford, Investment, Pricing, Financial Accounting, Finance, Marketing

• Option Pricing With Levy-Stable Process

  BNET - 2004-03-26

  Up until the early 1990's most of the underlying stochastic processes used in the financial literature were based on a combination of Brownian motion and Poisson processes. This paper shows how to calculate European-style option prices when the log-stock and stock returns processes follow a symmetric Levy-Stable process. The paper...

  Tags: Pricing Strategy, University Of Oxford, Financial Accounting, Pricing, Finance, Marketing

• Non-Probabilistic Jump Modelling for Financial Derivatives

  BNET - 2001-05-13

  This paper applies the uncertain nonlinear parameter approach, originally by Avellaneda et al. and Lyons, to model non-local changes in financial variables and its impact on portfolios of derivatives and their underlying assets. It formulates the non-probabilistic uncertainty assumptions as a governing system of nonlinear PDEs about both the spatial...

  Tags: Financial, Variable, University Of Oxford, Solution Technique, Financial Accounting, Financial Services, Finance

• Institutional Investment and Private Equity in the UK

  BNET - 2001-05-11

  This paper points to serious deficiencies in the governance of pension funds. These concerns are of considerable significance in their own right. But a fundamental focus of the Review is on their impact on the provision of private equity in the UK. This paper summarizes evidence from the Review and...

  Tags: Private Equity, Financial, U.K., University Of Oxford, Financial Accounting, Investment, Financial Services, Finance