Financial decisions and financial markets



Download 0,72 Mb.
bet1/2
Sana31.12.2021
Hajmi0,72 Mb.
#272764
  1   2
Bog'liq
Переделанный


Financial decisions and financial markets.

Content


  • Fundamental Concepts.

  • Expected Utility Theory. Origins of Expected Utility Theory.

  • Axio-matic Definition. Which Utility Functions are “Suitable”?.

  • Measuring the Utility Function

  • Mean-Variance Theory .Definition and Fundamental Properties. Success and Limitation .

  • Prospect Theory Origins of Behavioral Decision Theory

  • Original Prospect Theory.

  • Cumulative Prospect Theory. Choice of Value and Weighting Function.

  • Continuity in Decision Theories.

  • Other Extensions of Prospect Theory. Connecting EUT , Mean Variance Theory and PT. Ambiguity and Uncertainty.

  • Time Discounting

Decision theory

  • prescriptive (rational) approach

  • descriptive (behavioral) approach

Types of decisions

  • 1. Investment decisions • 2. Financing decisions • 3. Dividend decisions.

  • Investment Decisions:

  • Investment Decision relates to the determination of total amount of assets to be held in the firm, the composition of these assets and the business risk complexions of the firm as perceived by its investors. It is the most important financial decision. Since funds involve cost and are available in a limited quantity, its proper utilisation is very necessary to achieve the goal of wealth maximisation.

    • Short-term

    • Long-term

Financing Decisions:

  • The debt-equity ratio

  • To minimise the risk and raise the profitability then the market prices of the shares will go up maximising the wealth of shareholders

Dividend Decision:

  • the question of dividend stability, stock dividend (bonus shares) and cash dividend.

Link between Life cycle – economic strategy-investment decision-operational activity

  • Life cycle:

    • Birth

    • Childhood

    • Youth

    • Early maturity

    • Maturity

    • Aging

    • Revival

Birth

  • market penetration

    • →initial investment

  • →Ensure survival (disposal of companies)



  • Disposal of companies plays a central role in improving the profitability of the lower quartile.

  • Joseph Lakonyshok (2004)

Download 0,72 Mb.

Do'stlaringiz bilan baham:
  1   2




Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©hozir.org 2024
ma'muriyatiga murojaat qiling

kiriting | ro'yxatdan o'tish
    Bosh sahifa
юртда тантана
Боғда битган
Бугун юртда
Эшитганлар жилманглар
Эшитмадим деманглар
битган бодомлар
Yangiariq tumani
qitish marakazi
Raqamli texnologiyalar
ilishida muhokamadan
tasdiqqa tavsiya
tavsiya etilgan
iqtisodiyot kafedrasi
steiermarkischen landesregierung
asarlaringizni yuboring
o'zingizning asarlaringizni
Iltimos faqat
faqat o'zingizning
steierm rkischen
landesregierung fachabteilung
rkischen landesregierung
hamshira loyihasi
loyihasi mavsum
faolyatining oqibatlari
asosiy adabiyotlar
fakulteti ahborot
ahborot havfsizligi
havfsizligi kafedrasi
fanidan bo’yicha
fakulteti iqtisodiyot
boshqaruv fakulteti
chiqarishda boshqaruv
ishlab chiqarishda
iqtisodiyot fakultet
multiservis tarmoqlari
fanidan asosiy
Uzbek fanidan
mavzulari potok
asosidagi multiservis
'aliyyil a'ziym
billahil 'aliyyil
illaa billahil
quvvata illaa
falah' deganida
Kompyuter savodxonligi
bo’yicha mustaqil
'alal falah'
Hayya 'alal
'alas soloh
Hayya 'alas
mavsum boyicha


yuklab olish