M.Com. (Financial Management) / Over the last three decades, socially responsible investing (SRI) has emerged as one of the foremost issues faced by individuals and institutions in their daily activities. While the roots of responsible investing date back to the 18th century, the recent focus on responsible investing has been impactful. There has been growth in understanding the impact of investors’ decisions on long-term sustainability of business and society. In South Africa, the recent amendment of Regulation 28 of Pension Funds Act of 1956 and the introduction of the Code for Responsible Investing in South Africa (CRISA) are some of the latest developments in support of SRI. This minor dissertation evaluates the performance of SRI funds relative to traditional funds from January 2006 to June 2011. Specifically, the focus is on four main measures. Firstly, SRI funds relative to SRI funds’ own mandated benchmark; secondly, SRI funds relative to proxy market benchmark indices; thirdly, SRI funds relative to a matched sample of traditional unit trust funds; and lastly, SRI indices relative to traditional market indices. Twenty-seven funds were analysed in the study. The first finding was that SRI funds outperform their respective benchmarks on an unadjusted basis. Secondly, SRI funds showed slightly better risk-adjusted performance compared to proxy benchmark indices. Thirdly, SRI funds underperformed against a matched sample of traditional peers. Lastly, the FTSE/JSE SRI Equity Index underperformed against the general market equity index, but outperformed both the bonds and money market indices.

SAMMANFATTNING   Titel: Hur påverkar goodwillnedskrivningar företags kreditbetyg? - en kvantitativ undersökning av europeiska företag   Nivå: Examensarbete på Grundnivå (kandidatexamen) i ämnet företagsekonomi   Författare: Danilo Jovanovic och Sven Nelson   Handledare: Jan Svanberg   Datum: 2019 - juni   Syfte: År 2005 blev tillämpningen av IASB:s kontroversiella och värdebaserade redovisningsstandard IFRS obligatorisk för europeiska noterade bolag, genom en förordning antagen av Europarlamentet. Med tiden har allvarlig kritik kommit att riktats mot utformningen av standarden, då den inbegriper en hög grad subjektivitet i samband med goodwillnedskrivningar. Samtidigt har obligationer kommit att utgöra en allt viktigare finansieringskälla för europeiska företag. Syftet med studien är att undersöka om goodwillnedskrivningar, enligt standarden IAS 36, har någon påverkan på företags kreditbetyg.   Metod: Studien utförs i positivistisk vetenskapstradition med en hypotetiskt-deduktiv ansats. Studien har en kvantitativ forskningsstrategi som innefattar åren 2013-2017. Sekundärdata för listade europeiska företag (exkl. UK) har inhämtats från Thomson Reuters Datastream och Thomson Reuters Eikon. Urvalet består av 76 företag. Hypotesen testas genom en regressionsanalys med ordered logit modellen i programmet IBM SPSS Statistics 24.   Resultat & slutsats: Resultatet från studien bekräftar att goodwillnedskrivningar har en negativ påverkan på företags kreditbetyg. Slutsatsen medför därmed att sambandet även gäller i en europeisk kontext där man tillämpar redovisningsstandarden IAS 36. Examensarbetets bidrag: Studien bidrar till redovisningslitteraturen genom att komplettera ett forskningsgap rörande faktorer som påverkar kreditbetyg, och om en faktor som karaktäriseras av subjektivitet får genomslag på kreditbetyg. Studien bidrar även till redovisningslitteraturen genom att fylla forskningsgapet rörande sambandet mellan goodwillnedskrivningar enligt IAS 36 och kreditbetyg. Studien lämnar även ett praktiskt till  obligationsemittenter, investerare och redovisningsupprättare för bättre beslutsfattande.   Förslag till fortsatt forskning: Då ett företags kreditvärdighet är multidimensionellt, begränsas studien av de utvalda företagsspecifika faktorerna. Även avgränsningen mot ett specifikt geografiskt område, tidsperiod och företagskaraktäristik utgör en begränsning. De förslag studien lämnar till fortsatt forskning utgörs av att basera framtida studier på en diversifierad geografisk kontext, för att undersöka möjligheten att generalisera de aktuella resultaten. Ytterligare förslag är att studera kreditbetygets påverkan av andra företagsspecifika faktorer, för att skapa en större förståelse för en multidimensionell bedömning av företags kreditvärdighet.   Nyckelord: IAS 36, goodwillnedskrivning, kreditbetyg. / Abstract   Title: How does goodwill impairments affect companies bond rating? - A quantitative study of European companies   Level: Student thesis, final assignment for Bachelor Degree in Business Administration   Author: Danilo Jovanovic and Sven Nelson   Supervisor: Jan Svanberg   Date: 2019 - June   Aim: The application of IASB’s controversial and fair value-based standard of accounting, IFRS, became mandatory for listed European corporations through a statue passed by the European parliament in 2005. A severe criticism has been aimed at the framing of the standard throughout the years, due to the high degree of subjectivity in connection to goodwill impairments. In parallel, bonds have grown to become an even more significant source of finance for European companies. The aim of this thesis is to examine whether goodwill impairments, in accordance with IAS 36, have an impact on companies’ bond ratings.   Method: The study is conducted in the positivist tradition with a hypothetical-deductive research approach. The study has a quantitative research strategy including the years 2013-2017. Secondary data for the listed European companies (not including UK) have been collected using Thomson Reuters Datastream and Thomson Reuters Eikon. The sample consists of 76 companies. The hypothesis is tested by using a regression analysis with the ordered logit model in IBM SPSS Statistics 24.   Result & Conclusions: The result from the study confirms that goodwill impairments have a negative impact on companies’ bond ratings. Therefore, the study reaches the conclusion that the relationship also applies in a European context where the accounting standard IAS 36 is applied.   Contribution of the thesis: This thesis contributes to present accounting literature by filling a gap regarding how company factors affect bond ratings. This by its specific focus on the subjective characteristics of a factor and its impact on bond ratings. Furthermore, this study contributes to the literature by examining the relation between goodwill devaluation according to IAS 36 and bond ratings, and by contributing to practicians such as bond issuers, investors and standard setters for improved decision.   Suggestions for future research: As the creditworthiness of a company is multidimensional, this study is limited by focusing on specific company factors. The study is also limited geographically, time periodically and company characteristically. This thesis proposes further research by basing future research on a more diversified geographical context. This to enable the exploration of possibilities to generalize relevant results and findings. Further suggestions would be to study how other company factors affect the bond rating, to create a more profound understanding of the multidimensional assessment of a companies’ credit reliability.   Key words: IAS 36, goodwill impairment, bond ratings.

Thesis advisor: Thomas J. Chemmanur / Thesis advisor: Arthur Lewbel / The dissertation aims to investigate the role of asymmetric information in capital structure, investment, compensation of mortgage servicers, and bond and equity returns. Specifically, I evaluate the impact of credit ratings on debt issuance and investment of private and public firms, as well as the effect of asymmetric information on compensation of loan servicers in the mortgage backed securities market. Further, I study the relationship between ratings issued by investor and issuer-paid credit rating agencies and equity analyst recommendations. Finally, I evaluate the effect of the aforementioned signals on bond and equity returns as well as firm leverage and investment decisions. Chapter one in the dissertation is the first study to empirically evaluate the effect of credit ratings on capital structure and investment for private U.S. firms, relative to equivalent public firms. I find that private firms constrain debt issuance and investment by 4.5 and 6.5 percentage points more than public firms, respectively, when their credit ratings are on upgrade or downgrade thresholds. Consistent with these results, private firms that become public through an IPO constrain debt issuance by 10 percentage points before going public, if their ratings are on an upgrade or downgrade boundary. The second chapter studies the impact of asymmetric information between mortgage sellers and servicers on mortgage servicer compensation. We proxy for asymmetric information using the decision to retain mortgage servicing rights, which creates a principal-agent problem between sellers and servicers. Using loan-level data on Fannie Mae-insured, full documentation mortgages, we first find that loans in which sellers retain servicing rights default and foreclose at a significantly lower rate, and lose less in foreclosure than those in which they are not retained. Since it is more costly to service non-performing loans, these ex-post differences in default rates should be reflected in servicer compensation. However, using Fannie Mae MBS pool-level data, we find no difference in servicing fees for pools in which servicing rights are retained relative to pools in which they are not retained. In order to identify the impact of seller/servicer affiliation on servicing fees, we exploit a post-crisis regulatory change which altered the incentive to retain servicing rights for small sellers of MBS relative to large sellers. Finally, in the third chapter, we evaluate the information flows to the stock and bond markets of issuer versus investor-paid rating agencies and equity analysts. Equity analysts' forecasts and ratings assigned by issuer-paid credit rating agencies such as Standard and Poor's (S&P) and by investor-paid rating agencies such as Egan and Jones (EJR) all involve information production about the same underlying set of firms, even though equity analysts focus on cash flows to equity and bond ratings focus on cash flows to bonds. Further, the two types of credit rating agencies differ in their incentives to produce and report accurate information signals. Given this setting, we empirically analyze the timeliness and accuracy of the information signals provided by each of the above three types of financial intermediary to their investor clienteles and the information flows between these intermediaries. We find that the information signals produced by EJR are the most timely (on average), and seem to anticipate the information signals produced by equity analysts as well as by S&P. We find that changes in leverage are associated with lower EJR ratings but higher equity analyst recommendations; further, credit rating changes by EJR have the largest impact on firms' investment levels. We also document an "investor attention" effect (in the sense of Merton, 1987) among stock and bond market investors in the sense that changes in equity analyst recommendations have a higher impact than either EJR or S&P ratings changes on the excess returns on firm equity, while EJR rating changes have a higher impact on bond yield spreads than either S&P ratings changes or changes in equity analyst recommendations. Finally, we analyze differences in bond ratings assigned to a given firm by EJR and S&P, and find that these differences are positively related to the standard proxies for disagreement among stock market investors.

Second language (L2) learners of English must learn to produce English phonemes, words, and sentences. These L2 learners make many errors when learning English; they may change the place or manner of articulation, insert vowels, or delete consonants. Obstruent sounds, such as fricatives, affricates, and stops, can be especially difficult for L2 learners. This study analyzed native English speakers<'> perception of the quality of obstruents produced by native Mandarin Chinese and Korean speakers. Target words containing obstruents had been produced in three different tasks: in a carrier phrase, in a paragraph, and in a spontaneous speech sample. Obstruents were produced in word-initial position and word-final position. Raters with differing levels of expertise listened to these words and rated the perceptual quality of the obstruents within the words. This study found that overall, English obstruent productions by native Mandarin and Korean L2 speakers learning English were rated most clear when produced in word-initial position in a carrier phrase or a paragraph. The lowest ratings given were of obstruents in word-final position in spontaneous speech. No significant differences were found for listener expertise level. Combined with future research, results from this study will help educate the field of second language instruction as to how the speech of Korean and Mandarin learners of English is perceived. It also provides additional information on the effect that listener expertise has on the judgment of L2 speech production.

Fu, Zhengjia. / Thesis (Ph.D.)--Chinese University of Hong Kong, 2013. / Includes bibliographical references (leaves 107-116). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstracts also in Chinese.

Submitted by Sara Ribeiro (sara.ribeiro@ucb.br) on 2018-08-08T13:33:03Z No. of bitstreams: 1 RafaelLeiteGregorioDissertacao2018.pdf: 1382550 bytes, checksum: 9c6e4f1d3c561482546aca581262b92b (MD5) / Approved for entry into archive by Sara Ribeiro (sara.ribeiro@ucb.br) on 2018-08-08T13:33:24Z (GMT) No. of bitstreams: 1 RafaelLeiteGregorioDissertacao2018.pdf: 1382550 bytes, checksum: 9c6e4f1d3c561482546aca581262b92b (MD5) / Made available in DSpace on 2018-08-08T13:33:24Z (GMT). No. of bitstreams: 1 RafaelLeiteGregorioDissertacao2018.pdf: 1382550 bytes, checksum: 9c6e4f1d3c561482546aca581262b92b (MD5) Previous issue date: 2018-07-09 / The credit risk assessment has a relevant role for financial institutions because it is associated with possible losses and has a large impact on the balance sheets. Although there are several researches on applications of machine learning and finance models, a study is still lacking that integrates available knowledge about credit risk assessment. This paper aims at specifying the machine learning model of the probability of default of publicly traded companies present in the Bovespa Index (corporations) and, based on the estimations of the model, to obtain risk assessment metrics based on risk letters. We converged methodologies verified in the literature and we estimated models that comprise fundamentalist (balance sheet) and governance data, macroeconomic and even variables resulting from the application of the proprietary model of KMV credit risk assessment. We test the XGboost and LinearSVM algorithms, which have very different characteristics among them, but are potentially useful to the problem. Parameter Grids were performed to identify the most representative variables and to specify the best performing model. The model selected was XGboost, and performance was very similar to the results obtained for the North American stock market in analogous research. The estimated credit ratings suggest that they are more sensitive to the economic and financial situation of the companies than that verified by traditional Rating Agencies. / A avaliação do risco de crédito tem papel relevante para as instituições financeiras por estar associada a possíveis perdas que podem gerar grande impacto nos balanços. Embora existam várias pesquisas sobre aplicações de modelos de aprendizado de máquina e finanças, ainda não há estudo que integre o conhecimento disponível sobre avaliação de risco de crédito. Este trabalho visa especificar modelo de aprendizado de máquina da probabilidade de descumprimento de empresas de capital aberto presentes no Índice Bovespa (corporações) e, fruto das estimações do modelo, obter métrica de avaliação de risco baseada em letras (ratings) de risco. Convergiu-se metodologias verificadas na literatura e estimou-se modelos que compreendem componentes fundamentalistas (de balanço) e de governança corporativa, macroeconômicos e ainda variáveis produto da aplicação do modelo proprietário de avaliação de risco de crédito KMV. Testou-se os algoritmos XGboost e LinearSVM, os quais possuem características bastante distintas entre si, mas são potencialmente úteis ao problema exposto. Foram realizados Grids de parâmetros para identificação das variáveis mais representativas e para a especificação do modelo com melhor desempenho. O modelo selecionado foi o XGboost, tendo sido observado desempenho bastante semelhante aos resultados obtidos para o mercado de ações norte-americano em pesquisa análoga. Os ratings de crédito estimados mostram-se mais sensíveis à situação econômico-financeira das empresas ante o verificado por agências de rating tradicionais.

Li Ka-leung. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2005. / Includes bibliographical references (leaves 85-88). / Abstracts in English and Chinese. / Chapter 1 --- Introduction --- p.1 / Chapter 2 --- Structural models of credit risk --- p.9 / Chapter 2.1 --- The original Merton model --- p.10 / Chapter 2.2 --- The extended Merton model --- p.11 / Chapter 2.3 --- The Black and Cox model --- p.12 / Chapter 2.4 --- The LS model --- p.14 / Chapter 2.5 --- The CDG model --- p.16 / Chapter 2.6 --- Comments on structural models --- p.19 / Chapter 3 --- Proxies and their implications --- p.20 / Chapter 3.1 --- Reviews of the EHH's empirical studies --- p.20 / Chapter 3.2 --- The proxy for market values of firms --- p.23 / Chapter 3.2.1 --- Zero coupon bonds under the Merton model --- p.23 / Chapter 3.2.2 --- Coupon bearing bonds under the extended Merton model --- p.25 / Chapter 3.2.3 --- Zero coupon bonds under the LS model --- p.26 / Chapter 3.2.4 --- Coupon bearing bonds under the LS model --- p.28 / Chapter 3.3 --- Implications of other proxies --- p.29 / Chapter 4 --- Maximum Likelihood Estimation --- p.33 / Chapter 4.1 --- The MLE approach for the Merton model --- p.33 / Chapter 4.2 --- The MLE approach for the barrier dependent models --- p.35 / Chapter 4.3 --- Survivorship consideration --- p.36 / Chapter 4.4 --- Simulation tests --- p.37 / Chapter 4.5 --- Simulation results --- p.39 / Chapter 4.5.1 --- Simulation results for the Merton model --- p.39 / Chapter 4.5.2 --- Simulation results for the LS model --- p.42 / Chapter 5 --- Empirical test --- p.47 / Chapter 5.1 --- Criteria of bond selection --- p.47 / Chapter 5.2 --- Parameters of models --- p.51 / Chapter 5.2.1 --- Firm specific parameters --- p.51 / Chapter 5.2.2 --- Interest rate parameters --- p.54 / Chapter 5.2.3 --- Stationary leverage process parameters --- p.55 / Chapter 5.2.4 --- Bond specific parameters --- p.57 / Chapter 5.3 --- Empirical results --- p.58 / Chapter 5.3.1 --- Empirical results for the Merton model --- p.59 / Chapter 5.3.2 --- Empirical results for the LS model --- p.66 / Chapter 5.3.3 --- Empirical results for the CDG model --- p.71 / Chapter 6 --- Conclusion --- p.77 / Appendix --- p.80 / Chapter A.1 --- Appendix 1 --- p.80 / Chapter A.2 --- Appendix 2 --- p.82 / Chapter A.3 --- Appendix 3 --- p.84 / Bibliography --- p.85

Wang, Wei. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2011. / Includes bibliographical references (p. 106-122). / Abstracts in English and Chinese. / Abstract --- p.ii / Acknowledgement --- p.vi / Chapter 1 --- Introduction --- p.1 / Chapter 1.1 --- Overview --- p.1 / Chapter 1.2 --- Thesis Contributions --- p.5 / Chapter 1.3 --- Thesis Organization --- p.8 / Chapter 2 --- Background and Literature Review --- p.9 / Chapter 2.1 --- Label Ranking in Machine Learning --- p.11 / Chapter 2.1.1 --- Label Ranking --- p.11 / Chapter 2.1.2 --- Semi-Supervised Learning --- p.12 / Chapter 2.1.3 --- The Development of Label Ranking --- p.14 / Chapter 2.2 --- Question Retrieval in Community Question Answering --- p.16 / Chapter 2.2.1 --- Question Retrieval --- p.16 / Chapter 2.2.2 --- Basic Question Retrieval Models --- p.18 / Chapter 2.2.3 --- The Development of Question Retrieval Models --- p.21 / Chapter 2.3 --- Ranking through CTR by Building Click Models --- p.24 / Chapter 2.3.1 --- Click Model's Importance --- p.24 / Chapter 2.3.2 --- A Simple Example of Click Model --- p.25 / Chapter 2.3.3 --- The Development of Click Models --- p.27 / Chapter 3 --- Semi-Supervised Label Ranking --- p.30 / Chapter 3.1 --- Motivation: The Limitations of Supervised Label Ranking --- p.30 / Chapter 3.2 --- Label Ranking and Semi-Supervised Learning Framework --- p.32 / Chapter 3.2.1 --- Label Ranking and Semi-Supervised Learning Setup --- p.32 / Chapter 3.2.2 --- Information Gain Decision Tree for Label Ranking --- p.37 / Chapter 3.2.3 --- Instance Based Label Ranking --- p.39 / Chapter 3.2.4 --- Mallows Model Decision Tree for Label Ranking --- p.40 / Chapter 3.3 --- Experiments --- p.40 / Chapter 3.3.1 --- Dataset Description --- p.41 / Chapter 3.3.2 --- Experimental Results --- p.42 / Chapter 3.3.3 --- Discussion --- p.42 / Chapter 3.4 --- Summary --- p.44 / Chapter 4 --- An Application of Label Ranking --- p.45 / Chapter 4.1 --- Motivation: The Limitations of Traditional Question Retrieval --- p.45 / Chapter 4.2 --- Intention Detection Using Label Ranking --- p.47 / Chapter 4.2.1 --- Question Intention Detection --- p.48 / Chapter 4.2.2 --- Label Ranking Algorithms --- p.50 / Chapter 4.2.3 --- Some Other Learning Algorithms --- p.53 / Chapter 4.3 --- Improved Question Retrieval Using Label Ranking --- p.54 / Chapter 4.3.1 --- Question Retrieval Models --- p.55 / Chapter 4.3.2 --- Improved Question Retrieval Model --- p.55 / Chapter 4.4 --- Experimental Setup --- p.56 / Chapter 4.4.1 --- Experiment Objective --- p.56 / Chapter 4.4.2 --- Experiment Design --- p.56 / Chapter 4.4.3 --- DataSet Description --- p.57 / Chapter 4.4.4 --- Question Feature --- p.59 / Chapter 4.5 --- Experiment Result and Comments --- p.60 / Chapter 4.5.1 --- Question Classification --- p.60 / Chapter 4.5.2 --- Classification Enhanced Question Retrieval --- p.63 / Chapter 4.6 --- Summary --- p.69 / Chapter 5 --- Ranking by CTR in Click Models --- p.71 / Chapter 5.1 --- Motivation: The Relational Influence's Importance in Click Models --- p.71 / Chapter 5.2 --- Click Models in Sponsored Search --- p.75 / Chapter 5.2.1 --- A Brief Review on Click Models --- p.76 / Chapter 5.3 --- Collaborating Influence Identification from Data Analysis --- p.77 / Chapter 5.3.1 --- Quantity Analysis --- p.77 / Chapter 5.3.2 --- Psychology Interpretation --- p.82 / Chapter 5.3.3 --- Applications Being Influenced --- p.82 / Chapter 5.4 --- Incorporating Collaborating Influence into CCM . --- p.83 / Chapter 5.4.1 --- Dependency Analysis of CCM --- p.83 / Chapter 5.4.2 --- Extended CCM --- p.84 / Chapter 5.4.3 --- Algorithms --- p.85 / Chapter 5.5 --- Incorporating Collaborating Influence into TCM . --- p.87 / Chapter 5.5.1 --- TCM --- p.87 / Chapter 5.5.2 --- Extended TCM --- p.88 / Chapter 5.5.3 --- Algorithms --- p.88 / Chapter 5.6 --- Experiment --- p.90 / Chapter 5.6.1 --- Dataset Description --- p.90 / Chapter 5.6.2 --- Experimental Setup --- p.91 / Chapter 5.6.3 --- Evaluation Metrics --- p.91 / Chapter 5.6.4 --- Baselines --- p.92 / Chapter 5.6.5 --- Performance on RMS --- p.92 / Chapter 5.6.6 --- Performance on Click Perplexity --- p.93 / Chapter 5.6.7 --- Performance on Log-Likelihood --- p.93 / Chapter 5.6.8 --- Significance Discussion --- p.98 / Chapter 5.6.9 --- Sensitivity Analysis --- p.98 / Chapter 5.7 --- Summary --- p.102 / Chapter 6 --- Conclusion and Future Work --- p.103 / Chapter 6.1 --- Conclusion --- p.103 / Chapter 6.2 --- Future Work --- p.105 / Bibliography --- p.106

Is personality important for understanding the variation we see in animal welfare? In this thesis, I address that question by studying the association between personality and health, welfare, and happiness in three species of nonhuman primate: rhesus macaques (Macaca mulatta), brown capuchins (Sapajus apella), and chimpanzees (Pan troglodytes). As part of this research I test a newly designed animal welfare questionnaire. In Chapter 1 I review how animal welfare questionnaires can be designed and implemented as an addition tool for assessing animal welfare. In Chapter 2 I present a study of rhesus macaque personality, dominance, behaviour, and health. In Chapter 3 I test the reliability and validity of my animal welfare questionnaire. In Chapter 4 I extended my work on welfare questionnaires to test if they are valid for assessment of chimpanzee welfare and associated with personality. I specifically test if welfare ratings are based on observed behaviour. I conclude my quantitative work in Chapter 5 with a study testing the association between personality and health, welfare, and subjective well-being in rhesus macaques. Finally, Chapter 6 includes my conclusions and future directions for this line of research. Across all four quantitative studies some common trends were found. First, personality is associated with overall welfare and health. Second, welfare questionnaires are reliable and valid way to assess welfare in the studied species. And third, welfare and subjective well-being are measuring the same construct in these species. Overall, I conclude that personality is clearly useful for understanding animal welfare and that questionnaires are a reliable, valid, and valuable method of animal welfare assessment, in additional to traditional methods.

The bankruptcy is examined insufficiently in spite of the fact of its significancy. The aim of this diploma thesis was to define the bankruptcy, examine the economic possibilities of its settlement, analyse causes and consequences of the bankruptcy and find prevention and treatment. The thesis distinguishes bankruptcy of private subject and sovereign bankruptcy. The paradox of the monetary system is shown as primary cause of both private and state bankruptcy. Debt fiat money is created throughout credit expansion which generates malinvestments (Austrian economic theory of monetary cycles) and causes bankruptcies. On the other hand, financial system is based on necessity of permanent harmful issuance of credit fiat money which is issued by commercial banks (not by central banks). Furthermore, diploma thesis uses the criteria of Moody's rating agency as appropriate approximation of secondary causes of sovereign bankruptcy. The next part evaluates the impacts of bankruptcy (sovereign and private) on global financial markets and monetary unions. Credit freeze, run on banks, panics and collapse of the financial system are shown as the most substancial consequences of bankruptcy. In globalized world, the state bankruptcy is not isolated event. Financial institutions in other countries can be possible holders of devaluated (government) bonds. This study evaluates the impact of the bankruptcy on the monetary union. Currency devaluation is a common instrument of facing the consequences of bankruptcy which is not applicable in case of membership in monetary union. So, the bankruptcy of one member affects entire monetary union. In the next step, the study aims to examine topic of institucional solution of sovereign bankruptcy. Thesis uses private bankruptcy law (specifically Czech Insolvency Act) to formulate the possibilities of state bankruptcy settlement. Bankruptcy (In Czech: Konkurz), Reorganization (In Czech: Reorganizace), Debt clearance (In Czech: Oddlužení), Restructuring (In Czech: Restrukturalizace) and Fusion-acquisition (In Czech: Akvizice a fúze) are analyzed as options of sovereign bankruptcy solution. The instances of some threaten European countries are analyzed in the last part of thesis.