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Empirical analysis of positive effects of changes in exchange value of currency on trends of international diversification of business between 1st of January, 1988 and 30th June 2000 is presented.

Research indicates that duration models are effective in hedging or immunizing default- and option-free Government of Canada securities against interest rate risk. Data from the Bank of Canada Statistical Review and Bank of Canada Review, which consisted of monthly bond prices and rates of return from Jan 1963 to Aug 1986, were tested utilizing Fisher-Weil duration measures. The tests showed that duration-matching strategies performed better in reducing interest rates risk than the technique of matching bond maturity to the length of the planning period.

This paper argues that the current paradigm of value creation has led to a number of unacceptable outcomes. Exaggerated by executive compensation incentives focused on short‐term results, the model of shareholder wealth maximization spurs short‐term profits that fail to take into account those costs that are externalized to other stakeholders. We argue that the all‐inclusive costs can far exceed those explicitly accounted for and that their magnitude is often such that it outweighs the short‐term gains by a wide margin. The cascading nature of these costs, the growing voice of other stakeholders in support of their interests, the erosion of public trust, and the increasingly dire state of the global environment have accelerated the pace of calls for the adoption of a model of sustainable value creation—one in which shareholders' wealth is maximized without making any of the other stakeholders significantly worse off. Taking an exploratory step toward developing such an ideal process, we present a simple example of a valuation model that incorporates such a principle. We also argue that markets, education, and regulation represent the three indispensable cornerstones of a sustainable value creation framework. [ABSTRACT FROM AUTHOR]

Preferred stock is issued by many corporations in spite of its apparent disadvantages. This study explains why. A simple partial equilibrium model is presented in which preferred shares arc both supplied and demanded. Stronger tax incentives in Canada than in the United States may create a positive preferred equilibrium. Empirical evidence on the relative use of preferred stock in the two countries is presented to support this hypothesis. [ABSTRACT FROM AUTHOR]