International Finance

Understanding the current state of affairs and tools available in the study of international finance is increasingly important as few areas in finance can be divorced completely from international issues. International Finance reflects the new diversity of interest in international finance by bringing together a set of chapters that summarizes and synthesizes developments to date in the many and varied areas that are now viewed as having international content. The book attempts to differentiate between what is known, what is believed, and what is still being debated about international finance. The survey nature of this book involves tradeoffs that inevitably had to be made in the process given the vast footprint that constitutes international finance. No single book can cover everything. This book, however, tries to maintain a balance between the micro and macro aspects of international finance. Although each chapter is self-contained, the chapters form a logical whole that follows a logical sequence. The book is organized into five broad categories of interest: (1) exchange rates and risk management, (2) international financial markets and institutions, (3) international investing, (4) international financial management, and (5) special topics. The chapters cover market integration, financial crisis, and the links between financial markets and development in some detail as they relate to these areas. In each instance, the contributors to this book discuss developments in the field to date and explain the importance of each area to finance as a field of study. Consequently, the strategic focus of the book is both broad and narrow, depending on the reader's needs. The entire book provides a broad picture of the current state of international finance, but a reader with more focused interests will find individual chapters illuminating on specific topics.
"This book provides a deep understanding of contemporary developments in international finance. Baker and Riddick have collected the best survey papers and cutting-edge pieces written by some of the most prominent researchers in international finance. They have provided an extremely thorough and up-do-date overview of exchange rate and international debt markets, central banks policies and regulatory responses from international institutions. In addition, it offers an insight into international investments and portfolio management in the context of global financial systems. The book's impressive breadth and depth make it an essential reference for any researcher interested in understanding the state-of-the-art in international finance."--Dr. Luisa Corrado, Associate Professor, Department of Economics (DEDI) University of Rome Tor Vergata; Research Fellow, CreMic and CIMF, Faculty of Economics, University of Cambridge

CHAPTER 1 INTERNATIONAL FINANCE: AN OVERVIEW (H. KENT BAKER AND LEIGH A. RIDDICK) ; SECTION I. EXCHANGE RATE BEHAVIOR AND RISK MANAGEMENT ; CHAPTER 2 A PRIMER ON EXCHANGE RATE BEHAVIOR (JAMES R. LOTHIAN AND MARK P. TAYLOR) ; CHAPTER 3 MARKETS AND INTERNATIONAL INTEREST RATE PARITY (SUK HUN LEE AND A. G. MALLIARIS) ; CHAPTER 4 CORPORATE RISK MANAGEMENT IN THE MULTINATIONAL FIRM (ULRICH HOMMEL AND TOBIAS PROKESCH) ; SECTION II. INTERNATIONAL FINANCIAL MARKETS AND INSTITUTIONS ; CHAPTER 5 CENTRAL BANKS AND ECONOMIC POLICY AFTER THE CRISIS: WHAT HAVE WE LEARNED? (ANDEW HUGHES HALLETT, GIOVANNI DI BARTOLOMEO, AND NICOLA ACOCELLA) ; CHAPTER 6 INTERNATIONAL FINANCIAL INTEGRATION: BENEFITS, COSTS, AND POLICY CHALLENGES (PIERRE-RICHARD AGENOR) ; CHAPTER 7 LINKS BETWEEN INTERNATIONAL FINANCIAL MARKETS AND VOLATILITY (KIRT C. BUTLER AND WILLIAM GERKEN) ; CHAPTER 8 CHALLENGES IN FINANCIAL REGULATION (STIJN CLAESSENS) ; CHAPTER 9 INTERNATIONAL EQUITY MARKETS: RISK AND RETURN (YIGIT ATILGAN, TARAN G. BALI, AND K. OZGUR DEMIRTAS) ; CHAPTER 10 INTERNATIONAL CORPORATE DEBT MARKETS (MANUELA GERANIO AND ISSAM HALLAK) ; CHAPTER 11 FINANCING INTERNATIONAL TRADE (MARC AUBOIN) ; CHAPTER 12 CROSS-LISTING BEHAVIOR (THOMAS O'CONNOR AND KATE PHYLAKTIS) ; CHAPTER 13 INTERNATIONAL REGULATORY REGIMES (TONY PORTER) ; SECTION III. INTERNATIONAL INVESTING ; CHAPTER 14 ASSET PRICING IN INTERNATIONAL SETTING (LEIGH A. RIDDICK) ; CHAPTER 15 THE HOME BIAS PUZZLE IN EQUITY PORTFOLIOS (PIET SERCU AND ROSANNE VANPEE) ; CHAPTER 16 INVESTING IN EMERGING AND DEVELOPING MARKETS (JENNY BERRILL AND COLM KEARNEY) ; CHAPTER 17 INTERNATIONAL INVESTMENT PATTERNS (SIMON J. BROOME AND THOMAS J. FLAVIN) ; CHAPTER 18 INTEGRATED VERSUS SEGMENTED CAPITAL MARKETS: IMPLICATIONS FOR FINANCIAL DECISION MAKING (ROBERT JOHNSON AND LUC SOENEN) ; SECTION IV. INTERNATIONAL FINANCIAL MANAGEMENT ; CHAPTER 19 MULTINATIONAL CAPITAL BUDGETING: VALUING CROSS-BORDER INVESTMENTS (KIRT C. BUTLER AND SWINYAI UTETE) ; CHAPTER 20 MULTINATIONAL RESTRUCTURING (PENGCHENG ZHU) ; CHAPTER 21 CORPORATE MANAGEMENT OF FOREIGN CURRENCY RISK: CONCEPTUAL FRAMEWORK, POLICIES, AND STRATEGIES (RAJ AGGARWAL) ; CHAPTER 22 MULTINATIONAL COST OF CAPITAL AND CAPITAL STRUCTURE (FRANCK BANCEL, USHA R. MITTOO, AND ZHOU ZHANG) ; CHAPTER 23 DIVIDEND POLICY ACROSS COUNTRIES (STEPHEN P. FERRIS AND SANJIV SABHERWAL) ; CHAPTER 24 INTERNATIONAL GOVERNANCE AND CONVERGENCE (STEPHEN P. FERRIS AND KAREN SCHNATTERLY) ; SECTION V. SPECIAL TOPICS ; CHAPTER 25 BUSINESS BANKRUPTCIES ACROSS COUNTRIES AND THE LAW (BENOIT MARIO PAPILLON) ; CHAPTER 26 ALTERNATIVE FINANCING METHODS (JAMES MOORE) ; CHAPTER 27 DIFFERENCES IN OWNERSHIP STRUCTURES ACROSS COUNTRIES (WOOJIN KIM) ; CHAPTER 28 UNDERSTANDING FINANCIAL MARKET FAILURES (RAJ AGGARWAL)