Balance Sheet: Volume 10 Issue 2

Quantitative value management: the way ahead

Investment markets are becoming less rather than more efficient. The author argues that this is because qualitative analysis depends on individuals who are not objective but rely…

The role and importance of outsourced independent research

In recent years investment research has been produced by banks and investment houses which have conflicting interests between clients as investors and clients as investment…

Goodbye to book value investing

The authors argue that book value accounting is now completely out of date. Citing examples based on the Campbell’s Soup company and AOL Time Warner they show how investors who…

The dynamically projected balance sheet: implications for earnings, value and funds transfer pricing

Advanced software and hardware solutions are enabling institutions to progress from traditional asset liability management to earnings sensitivity and future market valuation…

Balancing the odds: stochastic accounting

The use of a deterministic numeric paradigm in auditing and accounting may well be the root cause of many current problems. This paper argues that risk‐based accounting methods…

Operational risk: the banks and the regulators struggle

Understanding first credit risk and the operational risk has taxed the banking industry. The author suggests that the evidence points to a lack of understanding within the banks…

The hedging imperative: making the choices

The world of financial instruments is becoming increasingly regulated. This paper deals with how hedging works as a method of changing an organisation’s risk profile. It argues…

Bringing risk home to the highest of corporate levels

Without clarity of understanding, information becomes the most dangerous of tools