ABSTRACT The problem of interest rate risk exposure has become increasingly important for financial institutions. There is a direct relation between the duration of life insurance products and its present value sensitivity to changes in market interest rates. This article describes the historical development of duration and its application in the study of life insurance products. This study examines the interest rate risk exposure of life insurance products.

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For the last half century, financial forecast has been undergone numerous discussions among AICPA, authority agencies, and experts. Generally, scholars and researchers use either general financial ratios or cash-flow ratios or both to predict if enterprises will bankrupt or fail. As a matter of fact, there is no concurrent conclusion as for which one is better. Some believe that the former is more accurate than the latter, while some claim that it is the vice versa. Still, some assert that it is more accurate to use them both, and some even believe that cash forecast sheet is the most effective. Usually, it has been some time since financial forecast was submitted to board of directors for approval prior to fiscal year, and moreover, some unpredictable information might occur during fiscal year given the information asymmetry. Therefore, the most important is to find funds gap as early as possible so as to respond quickly. From the perspective of an enterprise insider, the researcher regards financial forecast as a necessary tool for professional managers to cope with current information, utilizing models conforming to business¡¦s needs to introduce various situations for predicting possible funds gap in the near future. The information for the development of financial forecasts is highly complex, involving all departments in a company. Using Excel as a tool and a case company as a basis, this study developed a model which could be used for predictions with several single variables or multi-variables. Also, the validity of this model was verified by virtue of about twenty times of simulation tests. II Given that this case company, which engages in basic metal industry, is small and middle business, the model developed based on this case can only be used by similar businesses. This model which employs a MIS approach and is developed based on financial and accounting procedures often acquires inputs of enormous amount of time, manpower, and resources to become an effective tool for planning and management. Due to the limited resources and talented, it takes researcher a lot of efforts to successfully establish this model. Moreover, the operation of this model which uses Excel as a tool is not as easy as that of other systems written with programming languages. Finally, because the case company is small and middle business which has possible crises different from that of large companies, the prediction the model can make is limited. This study is mainly concerned with a system model which is not able to be shown in the text. Therefore, it is suggested to first recognize the framework of this study, and then pair with related tables to better understand this study.

After semiconductor industry, TFT-LCD technology has become the other valuable technique for Taiwan to play an important role in the world. Both government and investors have already spent lots of effort to make it grow during last decade. To be able to increase the competitive, we are looking forward to merge the TFT-LCD manufactories. This paper focuses on the market expectation of merge of TFT-LCD industry in Taiwan. This paper has use two stock market public corporate, A.U.O. and Q.D.I, as our study and observation models and by applies the L-G model from Kermit D. Larson and Nicholas J. Gonedes, we will be able to prove the concept and examine our observation cases. On the other hand, I use the free cash flow model from Damodaran to evaluate the capital value for both companies. In particular, we examine them in three different scenarios to analysis their firm-value and use them as the ratio for future stock merge between both companies. By simulate our observation models and experiment for their fair market value; we will be able to demonstrate the L-G model is appropriate in this particular circumstance. According to the result and demonstration of cases study, it can provide the new prospective of Taiwan TFT-LCD industry in the future.

In light of the limitations of cost and profit centers, this research attempts to explore how enterprise N integrates managerial information and thus transforms into the concept of an investment center. The BCG matrix (Boston Consulting Group¡A1970) is adopted as the major analytical tool in this study. With this tool we are able to acquire the market attractiveness and profitability of enterprise N, its business units, and its subsidiaries, so as to facilitate business resource allocation. The FCF analysis reveals the balance of funds between individual business units, subsidiaries, and the enterprise as a whole. Calculation of EVA reveals the contribution that each business unit and subsidiary makes to the enterprise. We furthermore interview executives in order to verify the preliminary result of the BCG model. We also adopt SWOT analysis to investigate the strengths, weaknesses, opportunities, and threats of each business unit located in the respective quadrant of the BCG model. Thus, we may be lead to understand the fund allocation and strategic intention of respective business units and subsidiaries. Finally, we conclude and make suggestions for enterprise N, both regarding financial and strategic aspects. This study aims to find out the key success factors regarding how enterprise N makes and executes business resource allocation and synergy development. We hope that this case study may provide valuable information and serve as a refined tool of business analysis for enterprise N.

Evaluation of the real price for financial assets has been an important issue. This thesis used four approaches, namely free cash flow method, dividend discount method, C.R.R Binomial Numerical Analysis of real-option theory and capital-budgeting techniques, to evaluate the real value of REITs in Taiwan. Fubon No.1, Cathy No.1, Shin Kong No.1 are chosen as cases to study in this thesis. This thesis analyzes their financial statements and historical data to estimate the parameters in those models and compute the real price of REITs. Our empirical results show that the real prices estimated from the free cash flow approach are higher than market prices by 30%. The real prices from the dividend discount method are higher than average market price by 300%.The real prices from the third approach, present value method, are higher than market prices by 10%. After considering the opportunities managers hold by the real-option approach, the real prices are higher than the market value by 200%. These results suggested the current prices of REITs in Taiwan are undervalued. It appears that anchoring tendency might be an explanation that prices of REITs in Taiwan are fixed in certain levels.

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Due to the fast progress of the internet technologies, electronic commerce becomes more and more popular. Many people and businesses deal with their transactions via the internet. The technologies of credit cards, electronic tickets, e-cash, and other advanced services have realized the vision of electronic commerce. In this thesis, we propose an off-line e-cash scheme with anonymity, untraceability, double-spending checking, and traceability. Anonymity and untraceability must be possessed in any e-cash scheme. In an off-line e-cash scheme, the bank or the third party (TTP) must be able to revoke the anonymity of a user who doubly spent her/his e-cash(s). In our proposed e-cash scheme, the bank can fast derive the identity of the user who doubly spent her/his e-cash(s) without the participation of TTP. If some illegal transactions are reported, TTP can also directly revoke the anonymity of the user who spent her/his e-cash(s) in the illegal transactions. In addition, the police needs to trace a specific user in some situation, and we propose a process to satisfy this requirement,called traceability.

Thesis (MSD (EAP))--Universiteit van Pretoria, 2003.

This thesis investigates how CEO risk taking incentives related to compensation in the form of executive stock options affect the decision to engage in merger and acquisition (M&A) activities with particular attention to same-industry versus cross-industry acquisitions. Risk taking incentives increase the propensity of M&As, especially for same-industry M&As. Furthermore, risk taking incentives increase the likelihood of cash payment for both same and cross-industry acquisitions. We do not find a significant direct stock price response difference between same-industry and cross-industry acquiring firms. The market responds favorably when risk taking incentives are higher for both same-industry acquisitions and cross-industry takeovers. We further find that the acquiring firm’s post-acquisition cash flow volatility is also positively related to risk taking incentives for both same- and cross-industry M&As.