Investment funds use actual trading market prices to value their portfolio investments where possible and “fair valuations” (estimated values) when actual market prices are not…
Abstract
Investment funds use actual trading market prices to value their portfolio investments where possible and “fair valuations” (estimated values) when actual market prices are not available. The methods used to “fair value” portfolios recently have come under scrutiny. SEC inquiries and enforcement actions and shareholder lawsuits have revealed significant problems in the ways in which fair valuations of the portfolios of investment companies, as well as private investment funds are conducted. Congress and academic commentators are beginning to question fund valuation methods. Despite the importance of the issue to investors, there is little uniformity of practice among funds, no generally accepted means to conduct fair valuations, and little disclosure by funds of the methods by which fair valuations are conducted, who conducts them, when they are conducted, or how much fair valuation affects portfolio or unit valuations. The SEC has never conducted a public study or rulemaking, or issued a significant report on fair value practices. Instead, it is the stuff of a pair of short, 30‐year‐old SEC accounting bulletins and a few cryptic references in periodic revisions to Form N‐1A. Yet, in a letter the SEC staff sent to the Investment Company Institute (ICI) in April 2001, the SEC staff dramatically expanded the use of fair value pricing for use with securities for which actual trading market prices are available.
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Benjamin J. Haskin, Joseph G. Davis and Jocelyn C. Flynn
The current financial crisis revealed weaknesses in the US financial system, including the difficulty of valuing complex assets. This paper seeks to examine regulatory and…
Abstract
Purpose
The current financial crisis revealed weaknesses in the US financial system, including the difficulty of valuing complex assets. This paper seeks to examine regulatory and compliance issues for hedge funds valuing complex assets.
Design/methodology/approach
Within the context of hedge fund valuation, the paper provides a general overview of: the regulatory background of hedge funds and the central role valuation plays in the operation and regulation of such funds; relevant cases brought by the SEC; and a discussion of valuation best practices.
Findings
Hedge funds are not “unregulated.” There is a body of law and accounting standards that applies to hedge fund valuation. Nevertheless, hedge fund valuation standards are evolving in this era of heightened regulatory scrutiny. The common concepts that have emerged from valuation best practices will likely provide the underpinning for any regulatory initiatives regarding hedge fund valuation.
Research limitations/implications
By the time of publication, Congress may pass pending legislation governing hedge funds and there may be additional notable SEC cases on hedge fund valuation.
Practical implications
The economic crisis has revitalized the SEC's interest in this area. Consequently, hedge funds should consider adoption of a compliance program that specifically targets valuation by stressing investor disclosure, independence of the valuation function, comprehensive written valuation polices and procedures, and internal controls.
Originality/value
The paper compiles and organizes in one place the regulatory and compliance standards governing asset valuation by hedge funds.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Focuses on the approach to interpreting earnings equality found in the writings of a variety of economists and in particular, technological change and its effects on the demand…
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Focuses on the approach to interpreting earnings equality found in the writings of a variety of economists and in particular, technological change and its effects on the demand skill resulting in earning inequality. Argues that the evidence in favour of the technological effect is weak and presents some alternatives for further consideration.
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Solomon W. Polachek, Xu Zhang and Xing Zhou
This paper shows how a shorter fecundity horizon for females (a biological constraint) leads to age and educational disparities between husbands and wives. Empirical support is…
Abstract
This paper shows how a shorter fecundity horizon for females (a biological constraint) leads to age and educational disparities between husbands and wives. Empirical support is based on data from a natural experiment commencing before and ending after China’s 1980 one-child law. The results indicate that fertility in China declined by about 1.2–1.4 births per woman as a result of China’s anti-natalist policies. Concomitantly spousal age and educational differences narrowed by approximately 0.5–1.0 and 1.0–1.6 years, respectively. These decreases in the typical husband’s age and educational advantages are important in explaining the division of labor in the home, often given as a cause for the gender wage gap. Indeed, as fertility declined, which has been the historical trend in most developed countries, husband-wife age and educational differences diminished leading to less division of labor in the home and a smaller gender wage disparity. Unlike other models of division of labor in the home which rely on innately endogenous factors, this paper’s theory is based on an exogenous biological constraint.
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Romina Gómez-Prado, Aldo Alvarez-Risco, Jorge Sánchez-Palomino, Berdy Briggitte Cuya-Velásquez, Sharon Esquerre-Botton, Luigi Leclercq-Machado, Sarahit Castillo-Benancio, Marián Arias-Meza, Micaela Jaramillo-Arévalo, Myreya De-La-Cruz-Diaz, Maria de las Mercedes Anderson-Seminario and Shyla Del-Aguila-Arcentales
In the academic field of business management, several potential theories were established during the last decades to explain companies' decisions, organizational behavior…
Abstract
In the academic field of business management, several potential theories were established during the last decades to explain companies' decisions, organizational behavior, consumer patterns, and internationalization, among others. As a result, businesses and scholars were able to analyze and decide based on theoretical approaches to explain the current conditions of the market. Secondary research was conducted to collect more than 36 management theories. This chapter aims to develop the most famous theories related to business applied in the international field. The novelty of this chapter relies on the compilation of recognized previous research studies from the academic literature and evidence in international business.
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Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…
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Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.
Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management…
Abstract
Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.