/library/oar/handle/123456789/4651 2025-11-14T06:04:55Z 2025-11-14T06:04:55Z /library/oar/handle/123456789/102093 2022-09-28T11:02:21Z 2011-01-01T00:00:00Z

Title: A study of uses and misuses of derivatives Abstract: Overview- Derivatives activity continues to increase globally although they have provided a few of the largest financial disasters. The debate on their use and misuse has never been stopped and is still to some extent unresolved (Fernandez-Laviada, Martinez-Garcia and Montoya Del Corte, 2008). Therefore, identifying the real fundamental reasons for these problems when using derivatives is essential to help prevent new financial scandals. Purpose - The study seeks to determine whether the derivative instrument is the reason for the various problems faced by firms when using them. It seeks to identify and characterise the important determinants of safe derivative use and attempts to determine which of these determinants emerge as significant predictors of the difficulty often encountered by firms when using derivatives. Hypothesis - "There are a manifold of reasons concerning 'users' and 'controllers', rather than the derivative instruments themselves, that lead to unprofitable decisions." Research questions 1. What are the governing factors that influence the safe use of derivatives? 2. Is the problem the derivative instrument itself? Should derivative use be considered madness? Are they so bad and dangerous? Design/methodology/approach - A mixed approach of qualitative and quantitative analysis, following a conceptual framework was used in this study to understand the role played by derivatives in the problems faced by firms and to answer the research questions posed. Financial firms (Barings Bank Plc, Allied Irish Bank and Societe Generale), the financial Crisis of this decade; and non-financial films (Metallgesellschaft and Enron) cases of debacles blamed on derivatives are studied in debt and the factors influencing the safe use of derivatives are extracted. The selection of cases was determined following a review of literature and cases and the researcher' experience. The choice was made mainly based on the amount of publicity these firms attracted about their misuse of derivatives, therefore purposive sampling. A web-based questionnaire was completed by 420 international users/ and controllers of derivatives, selected via purposive and snowball sampling techniques. This questionnaire was purposely designed for the study and included both closed-ended and open-ended questions. The measures obtained from the closed-ended questions were analysed quantitatively, while the answers to the open-ended questions (which were not obligatory and were answered by 52 of the participants) were analysed qualitatively. Moreover, interviews were carried out with 46 international users and controller, also selected via purposive and convenience sampling techniques. These were asked six open ended questions purposely designed for the study. A featured participant among the interviewed was Mr. Nick Leeson. The data collected was analysed qualitatively. Findings - The empirical study identifies six factors that account for 68.2% of the variability in the derivative safe use and in five factors, the scores varied as of function of demographic variables. Additionally, two of these factors emerged as the significant predictors in classifying whether or not a company often encounters difficulty when using derivatives, with an overall holdout accuracy of 74.7%. When this is compared to the the other qualitative findings, the factors identified are 26, with Internal Controls, Standards, Knowledge, Understanding, Awareness, Complexity, Greed, Hubris, desire for Power and Perception of the usefulness of derivatives being those factors influencing the safe use of derivatives which were highlighted by all sources. Originality/Value -This study provides empirical and qualitative evidence that the incorporation of control factors as well as demographic factors make a significant contribution to the understanding of safe derivative use. Derivatives are useful financial instruments but if the implication of such factors is not looked into, then the true value and qualities of the derivative instrument are obscured. Keywords - financial derivatives, safe derivative use, derivative misuse, management control and process, users, controllers, risk management, internal control. Description: PH.D.BANK.&FIN.

2011-01-01T00:00:00Z /library/oar/handle/123456789/4670 2015-08-21T08:48:40Z 2011-01-01T00:00:00Z

Title: The financial viability and sustainability of local band clubs around Malta and Gozo Abstract: This dissertation focuses on a study I made, about a group of Maltese non-profit organizations, which are the band clubs. The aim of these band clubs is that to enhance music culture in Malta, by organizing the external celebrations of the feast of the towns and villages around Malta and Gozo. Nowadays around Malta and Gozo there are 90 bands, of which 80 are located in Malta, and 10 in Gozo. The question behind this dissertation was, 'do you see the club doing well (in terms of finance) in 20 years time?' The answer would be that it would be difficult to just skip to a conclusion and give a proper answer. The dissertation's main objective is to research and analyze the current financial situation in one of Malta's oldest cultural clubs and provide any recommendations which would help the club's financial position, providing better future sustainability and viability. Clubs have been in existence for the past one hundred fifty years, where they have been capable to survive in periods of crisis and wars. Band clubs are facing income and expenditure problems, where the expenditure throughout the years has been increasing while the income is quite stable. Is the Government or Curia helping in the viability and sustainability of band clubs? The initial chapters deal with the definitions of clubs and band clubs. The historical background and passage throughout the times of bands throughout Malta and Gozo, is reviewed by means of detailed research. The idea was that to give a better understanding to vi what lead, to the financial position which band clubs face nowadays. With the use of interviews and questionnaires I was able to find a good perspective on which to analyze the present financial situation faced by band clubs. Later on recommendations are given, providing possible assistance to band clubs in terms of better management of their expenditure. As a conclusion I mentioned possible EU contributions to enhance music in Malta and different proposals for EU funding, which band clubs can avail themselves of. Giving the opportunity to trainees to take musical experience abroad, by the use of intensive programmes is another initiative which should help band clubs in achieving their main aim of fostering music education. Description: B.COM.(HONS)BANK.&FIN.

2011-01-01T00:00:00Z /library/oar/handle/123456789/4122 2015-08-17T10:12:32Z 2011-01-01T00:00:00Z

Title: Hedge fund strategy results in the bear and bull markets : a comparative study Abstract: The aim of the research is to measure the investment results of hedge fund strategies over a period of time and compare them to a series of benchmarks, like the S&P 500. The individual strategies will also be compared using different performance measures like the Sharpe Ratio, in order to assess their risk-return characteristics. In theory, hedge funds should consistently produce absolute returns that beat market indices, due to their flexible nature in having the ability to take advantage of any economic climate, as well as the fact that they attract the most brilliant financial minds. The different strategies' indices will be taken over a period in which there was both a Bear and a Bull market, and conclusions will be made whether the hedge funds were successful in producing consistent absolute returns and whether they beat the market indices on a consistent basis. Recommendations were also given about which strategy is preferable to an investor seeking a portfolio diversifying or return enhancing strategy. The results suggest that few strategies in actual fact managed to outperform the bull market of the late 1990s, offering little evidence that they provide superior returns. The case was also similar for the bull market of the 2000s, where few strategies successfully outperformed the market. Conflicting evidence was found for most strategies regarding bear markets. In the early 2000s most strategies successfully managed to obtain absolute returns, however it was not the case for the recent financial crisis in 2007/8; which in fact saw many investors withdraw from the industry. Overall though, sound recommendations based on facts were given for investors seeking both portfolio enhancing and portfolio diversifying objectives. Description: B.COM.(HONS)BANK.&FIN.

2011-01-01T00:00:00Z /library/oar/handle/123456789/4119 2015-08-17T11:01:51Z 2011-01-01T00:00:00Z

Title: Islamic banking : the pros & cons of introducing it in Malta Abstract: Islamic banking is the world's fastest growing sector in finance and refers to banking activities that are consistent with the principles of the Shariah law, differing from the conventional banking. There are a few number of Islamic banks based in Europe, so Malta with its strategic geographical position may be able to tap a vast market and link North Africa with the rest of Europe. The study carried out has shown whether it would be an advantage or not for Malta to act as a bridge between these countries, or whether it would be feasible to introduce it to cater the local market. The research was carried out by collecting primary data through qualitative data research by e-mailing a questionnaire to executives that work and represent different sectors of the banking environment, and who are knowledgeable and involved in activities held locally regarding Islamic banking; and by collecting secondary data from various journals, books and websites. Areas that the Maltese authorities should give importance to before being totally confident that the country is more than capable of establishing Islamic banking, and the pros and cons if it would have to introduce such type of banking for both scenarios were also analysed and discussed. It was concluded that the ideal scenario would be for Malta to act as a hub between the two continents. A number of recommendations and concluding thoughts were also brought forward. Description: B.COM.(HONS)BANK.&FIN.

2011-01-01T00:00:00Z