IBRS SS 2007 – International Finance

International Finance IBRS Summer Term 2007

List of Topics & Literature The complete literature as ZIP-Archive

I. The International Financial Environment 1. Bretton Wood Revived?

• Dooley, Michael P., David Folkerts-Landau and Peter Garber (2003) – An Essay on the Revived Bretton Woods System, NBER Working Paper No. 9971

2. Effects of IMF Lending • Dicks-Mireaux. Louis, Mauro Mecagni and Susan Schadler (2000) – Evaluating the Ef-

fect of IMF Lending to Low-Income Countries, in: Journal of Development Economics, Vol. 61, pp. 495-526

3. The Theory of Optimal Currency Areas • Alesina, Alberto, Robert J. Barro and Silvana Tenreyro (2002) – Optimal Currency Ar-

eas, NBER Working Paper No. 9072 4. An Eternal Debate – Fixed or Floating?

• Calvo, Guillermo A. and Carmen M. Reinhart (2000) – Fear of Floating, NBER Work-ing Paper No. 7993

5. Currency Boards • Gertchev, Nikolay (2002) - The Case Against Currency Boards, in: The Quarterly Jour-

nal of Austrian Economics, Vol. 5 (4), pp. 57-75 6. International Parity Conditions at Work?

• Rogoff, Kenneth (1996) – The Purchasing Power Parity Puzzle, in: Journal of Economic Literature, Vol. 34 (2), pp. 647-668

• Mishkin, Frederic S. (1993) – Is the Fisher Effect for Real? A Reexamination of the Re-lationship Between Inflation and Interest Rates, NBER Working Paper No. 3632

7. The Theory and Benefits of International Diversification Diese Literaturquelle kann aus uns unbekannten Gründen leider anscheinend nur mit älteren Versionen des Acrobat-Readers geöffnet werden. Eine Kopievorlage liegt deshalb im Sekreta-riat der Professur aus. • Shawky, Hany A., Rolf Kuenzel & Azmi D. Mikhail (1997) – International Portfolio

Diversification: A Synthesis and an Update, in: Journal of International Financial Mar-kets, Institutions and Money, Vol. 7 (4), pp. 303-327

8. Home Bias in Investing • Coval, Joshua D. & Tobias J. Moskowitz (1999) – Home Bias at Home: Local Equity

Preference in Domestic Portfolios, in: The Journal of Finance, Vol. 54 (6)

II. Emerging Market Issues – Financial Crises 9. Three Generations of Models of Currency Crises

• Krugman, Paul (1979) – A Model of Balance-of-Payments Crises, in: Journal of Money, Credit and Banking, Vol. 11 (3), pp. 311-325

• Obstfeld, Maurice (1997) – Models of Currency Crises with Self-Fulfilling Features, NBER Working Paper No. 5285

• Flood, Robert and Nancy Marion (1998) – Perspectives on the Recent Currency Crisis Literature, NBER Working Paper No. 6380

10. Capital Markets in Turmoil – Sudden Stops • Guillermo A. Calvo (1998) – Capital Flows and Capital Market Crises: The Simple

Economics of Sudden Stops, in: Journal of Applied Economics, Vol. 1 (1), pp. 35-54

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IBRS SS 2007 – International Finance

11. Predictability of Currency Crises • Kaminsky, Gabriele, Saul Lizondo and Carmen M. Reinhart (1998) – Leading Indica-

tors of Currency Crisis, in: IMF Staff Papers, Volume 45 (1) 12. Contagion Effects during Currency Crises

• Fratzscher, Marcel (2003) – On Currency Crises and Contagion, in: International Jour-nal of Finance & Economics, Vol. 8 (2), pp. 109-129

13. Dealing with Currency Crises • Singal, Vijay (1999) – Floating Currencies, Capital Controls, or Currency Boards:

What’s the Best Remedy for Currency Crises?, in: Journal of Applied Corporate Fi-nance, Vol. 11 (4), pp. 49-56

14. The Case For and Against Capital Controls • Edwards, Sebastian and Roberto Rigobon (2005) – Capital Control, Exchange Rate

Volatility and External Vulnerability, NBER Working Paper No. 11434 15. Has Original Sin Finally been Remitted?

• Borensztein, Eduardo, Barry Eichengreen and Ugo Panizza (2006) – Building Bond Markets in Latin America, paper prepared for an IADB network on the growth of corpo-rate bond markets in Latin America

16. Liability Dollarization • Berkmen, Pelin and Eduardo A. Cavallo (2006) – Exchange Rate Policy and Liability

Dollarization: An Empirical Study, draft working paper 17. Sovereign Debt Restructuring

• Kletzer, Kenneth (2003) – Sovereign Bond Restructuring: Collective Action Clauses and Official Crisis Intervention, IMF Working Paper 03/134

18. Case-Study – The Tequila Crisis • Mishkin, Frederic S. (1999) – Lessons from the Tequila Crisis, in: Journal of Banking

and Finance, Vol. 23 (10); pp. 1521-1533 19. Case-Study – East Asian Crisis

• Radelet, Steven and Jeffrey D. Sachs (1998) – The East Asian Financial Crisis: Diagno-sis, Remedies, Prospects, Brookings Papers on Economic Activity, Washington

20. Case-Study – The Long Decline of Argentina • Servén, Luis and Guillermo Perry (2004) – Argentina’s Macroeconomic Collapse:

Causes and Lessons, Draft chapter for Worldbank – Managing Volatility and Crisis: A Practitioner’s Guide

III. The MNE’s Financial Policy 21. Do Capital Structures Differ Across Countries?

• Booth, Laurence, Varouj Aivazian, Asli Demirgüc-Kunt and Vojislav Maksimovic (2001) – Capital Structures in Developing Countries, in: Journal of Finance, Vol. 56 (1); pp. 87-130.

22. How Internationalization Affects Capital Structure – Multinational versus Domestic Firms

• Aoun, Dany and Almas Heshmati (2006) – The Causal Relationship between Capital Structure and Cost of Capital: Evidence from ICT Companies Listed at NASDAQ, Ra-tio Working Papers 87.

• Kwok, Chuck C.Y and David M Reeb (2000) – Internationalization and Firm Risk: An Upstream-Downstream Hypothesis, Journal of International Business Studies, Vol. 31 (4), pp.611-630.

23. Why Do Companies List Abroad? • Pagano, Marco, Ailsa A. Röell and Josef Zechner (2002) – The Geography of Equity

Listing: Why Do Companies List Abroad?, in: The Journal of Finance, Vol.57 (6); pp. 2651-2694.

• Wu, Congsheng and Chuck C Kwok – Why do U.S Firms Choose Global Equity Offer-ings, in: Financial Management, Vol. 31 (2); pp. 47-65.

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IBRS SS 2007 – International Finance

24. Sourcing Equity Internationally – Depository Receipts • Eleswarapu, Venkat R. and Kumar Venkataraman (2006) – The Impact of Legal and

Political Institutions on Equity Trading Costs: A Cross-Country Analysis, in: Review of Financial Studies, Vol. 19 (3); pp. 1081-1111.

• Miller, Darius P. (1999) – The Market Reaction to International Cross Listings: Evi-dence from Depository Receipts, in: Journal of Financial Economics, Vol. 41; pp. 103-123.

25. Sourcing Debt Internationally • Doukas, J., C. Pantzalis (2003) – Geographic Diversification and Agency Costs of Debt

of Multinational Firms, in: Journal of Corporate Finance, Vol. 9; pp. 59-92. 26. Islamic Finance

• Zaher, Tarek S. and M. Kabir Hassan (2001) – A Comparative Literature Survey of Is-lamic Finance and Banking, in: Financial Markets, Institutions & Instruments, Vol. 10 (4); pp. 155-199.

27. Private Equity Investment in Emerging Markets • Leeds, Roger and Julie Sunderland (2003) – Private Equity Investing in Emerging Mar-

kets, in: Journal of Applied Corporate Finance, Vol. 15 (2), pp. 111-119. • Zalan, Tatjana (2004) – The Secret Multinationals of the New Millennium: Internation-

alization of Private Equity Firms, JIBS Literature Review. 28. Equity Carve-Outs and Divestiture of Foreign Subsidiaries

• Annema, Andre, William C Fallon and Marc H. Goedhart, (2002) – When carve-outs make sense, in: McKinsey Quarterly, No.2.

• Meschi, Pierre-Xavier (2005) – Stock market valuation of joint venture sell-offs, in: Journal of International Business Studies, Vol. 36 (6); pp.688-700.

• Vijh, Anand M. (1999) – Long-term returns from equity carve-outs, in: Journal of Fi-nancial Economics, Vol. 51 (2); pp. 273-308.

29. Financing International Projects • Esty, Benjamin C. and William L. Megginson (2003) – Creditor Rights, Enforcement,

and Debt Ownership Structure: Evidence From the Global Syndicated Loan Market, in:Journal of Financial and Quantiative Analysis, Vol. 38 (1); pp. 37-59.

• Hainz, C., and S. Kleimeier (2003) –Political Risk in Syndicated Lending: Theory and Empirical Evidence Regarding the Use of Project Finance, Limburg Institute of Finan-cial Economics Working Paper No.03-014.

30. Valuing International Projects • Esty, Benjamin C.(1999) – Improving Techniques for Valuing Large-Scale Projects, in:

Journal of Project Finance, Vol. 5 (1); pp.9-26. • Flyvbjerg, Bent, Mette Skamris Holm, and Soeren Buhl (2002) – Underestimating Costs

in Public Works Projects: Error or Lie, in: Journal of the American Planning Associa-tion, Vol. 68 (3); pp. 279-295.

31. Managing International Projects • Lessard, Donald R. and Miller, Roger (2001) – Understanding and Managing Risks in

Large Engineering Projects, MIT Sloan Working Paper No. 4214-01. • Kolo, A. and Thomas. W. Wälde (2000) – Renegotiation and Contract Adaptation in In-

ternational Investment Projects, in: Journal of World Investment, Vol. 5, pp. 5-57.

IV. Multinational Investment Decisions & Management 32. Why does a Company Become a Multinational?

• Eden, Lorraine (2003) – A Critical Reflection and Some Conclusions on OLI, in: Cantwell, John and Rjneesh Narula (eds.): International Business and the Eclectic Para-digm: Developing the OLI Framework, Routledge, London and New York.

• Markusen, James and Keith Maskus (2002) – Discriminating among alternative theories of the Multinational Enterprise, in: Review of International Economics, Vol. 10 (4); pp. 694-707.

• Oxelheim, Lars, Arthur Stonehill, and Trond Randoy (2001) – On the Treatment of Fi-nance Specific Factors Within the OLI Paradigm, in: International Business Review, Vol. 10; pp.381-398.

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IBRS SS 2007 – International Finance

33. Does Global Diversification Destroy Firm Value? • Doukas, John A and Ozgur B Kan (2006) – Does global diversification destroy firm

value?, in: Journal of International Business Studies, Vol. 37(3); pp. 352-371. 34. Determinants of Equity Entry Mode Choice

• Delios, Andrew/ Beamish, Paul W. (1999) – Ownership Strategy of Japanese Firms: Transactional, Institutional, and Experience Influences, in: Strategic Management Jour-nal, Vol.20; pp. 915–933.

• Meyer, Klaus E., Saul Estrin, and Sumon Bhaumik (2005) – Institutions and Business Strategies in Emerging Economies: A Study of Entry Mode Choice, Working paper.

35. Definition and Measurement of Political Risk • Click, Reid W (2005) - Financial and political risks in US direct foreign investment, in:

Journal of International Business Studies, Vol. 36(5); 559-575. • Kobrin, Stephen J.(1979) – Political Risks: A Review and Reconsideration, in: Journal

of International Business Studies, Vol. 10; pp. 67-80. 36. Multinational Capital Budgeting

• Butler, Kirt C., Rosanna Mohr and Richard R. Simonds (1991) – The Hamada and Con-ine Leverage Adjustments and the Estimation of Systematic Risk for Multi-Segment Firms, in: Journal of Business Finance and Accounting, Vol. 18 (6); pp. 885-901.

• Keck, Tom, Eric Levengood, and Al Longfield, (1998) – Using Discounted Cash Flow Analysis in an International Setting: A Survey of Issues in Modeling the Cost of Capital, in: Journal of Applied Corporate Finance, 11 (3); pp. 82-99.

37. How to Account for Political Risk in the International Investment Decision? • Butler, Kirt C., Jaquin, Domingo Castelo (1998) – A Note on Political Risk and the Re-

quired Return on Foreign Investment, in: Journal of International Business Studies, Vol. 29 (3); pp. 599-608.

• Damodaran, Aswath (2003) – Country Risk and Company Exposure: Theory and Prac-tise, in: Journal of Applied Finance, Vol. 13 (2); pp. 63-76.

38. The Real Option Approach to Foreign Investment Decision-Making • Diese Literaturquelle kann aus uns unbekannten Gründen leider anscheinend nur mit

älteren Versionen des Acrobat-Readers geöffnet werden. Eine Kopievorlage liegt de-shalb im Sekretariat der Professur aus Buckley, A. and K. Tse. (1996) – Real Operating Options and Foreign Direct Invest-ment: A Synthetic Approach, in: European Management Journal, Vol. 14; pp. 304-314.

• Lander, Diane M. and George E. Pinches (1998) – Challenges to the Practical Imple-mentation of Modeling and Valuing Real Options, in: The Quarterly Review of Eco-nomics and Finance, Vol. 38; pp. 537-567.

39. Incentives for Hedging • Nance, Deanna R., Clifford W. Smith Jr. and Charles W. Smithson (1993) – On the De-

terminants of Corporate Hedging, in: The Journal of Finance, Vol. 48 (1), pp. 267-284 40. Dealing with Operating Exposure

• Miller, Kent D. and Jeffrey J. Reuer (1998) – Firm Strategy and Economic Exposure to Foreign Exchange Rate Movements, in: Journal of International Business Studies, Vol. 29 (3), pp. 493-514

41. The Impact of Tax Rules on Cross-Border Investment Activities • DeMooij, Ruud A. and Sjef Ederveen (2003) – Taxation and foreign direct investment:

a synthesis of empirical research, in: International Tax and Public Finance, Vol. 10, pp. 673-693.

• Manzon Jr., Gil B., David J. Sharp, and Nickolaos G. Travlos (1994) – An Empirical Study of the Consequences of U.S. Tax Rules for International Acquisitions by U.S. Firms, in: Journal of Finance, Vol. 49 (5); pp. 1893-1904.

42. International Transfer Pricing • Brickley, James, Clifford Smith, and Jerold Zimmerman (1995) – Transfer Pricing and

the Control of Internal Corporate Transactions, in: Journal of Applied Corporate Fi-nance, Vol. 8 (2); pp. 60-67.

• Eden, Lorraine, Luis F Valdez, and Dan Li (2005) – Talk softly but carry a big stick: transfer pricing penalties and the market valuation of Japanese multinationals in the United States, in: Journal of International Business Studies, Vol. 36(4); pp. 398-414.

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