Wiley Financial Innovation: 15 (Financial Economics and Quantitative Analysis Series)

Financial Innovation Philip Molyneux and Nidal Shamroukh Over the past twenty years there has been a massive increase in the development of new financial instruments, many of which have been off-balance-sheet activities. These instruments have become increasingly complex, placing higher demand on both the purchasers and the creators of such instruments. The risks involved and the penalties paid by those who have not adequately understood these products are well known. This book discusses in detail, through a blend of theory and empirical research, the processes of innovation and the diffusion of new financial instruments. It relates the theoretical approaches to innovation to current practice,producing and testing models for innovation and the diffusion of new financial products. Finance/Economics From the Inside Flap Over the past twenty years there has been a massive increase in the development of new financial instruments, many of which have been off-balance-sheet activities. These instruments have become increasingly complex, placing higher demand on both the purchasers and the creators of such instruments. The risks involved and the penalties paid by those who have not adequately understood these products are well known. This book discusses in detail, through a blend of theory and empirical research, the processes of innovation and the diffusion of new financial instruments. It relates the theoretical approaches to innovation to current practice,producing and testing models for innovation and the diffusion of new financial products. From the Back Cover Over the past twenty years there has been a massive increase in the development of new financial instruments, many of which have been off-balance-sheet activities. These instruments have become increasingly complex, placing higher demand on both the purchasers and the creators of such instruments. The risks involved and the penalties paid by those who have not adequately understood these products are well known. This book discusses in detail, through a blend of theory and empirical research, the processes of innovation and the diffusion of new financial instruments. It relates the theoretical approaches to innovation to current practice,producing and testing models for innovation and the diffusion of new financial products. About the Author Philip Molyneux is Professor of Banking and Finance in the School of Accounting, Banking and Economics at the University of Wales, Banner and Professor of Financial Services and Financial Conglomerates at the Erasmus University, Rotterdam, The Netherlands. His main research interests relate to the structure, efficiency and performance of banking markets and financial systems, areas in which he has written widely. He has acted as a consultant to many international banks and organisations, including the New York Federal Reserve Bank, World Bank and European Commission. He is currently a member of the UK's National Institute's Advisory Panel on the European Financial Markets Programme. Nidal Shamroukh is a financial engineer at Algorithmics UK, an enterprise-wide risk management software provider. He is a graduate of Bilkent University, Turkey and obtained his MA and PhD degrees from University of Wales, Bangor. Currently he advises major banks on modelling their portfolios and managing their risks.