https://www.um.edu.mt/library/oar/handle/123456789/28497 Sun, 05 Apr 2026 01:38:56 GMT 2026-04-05T01:38:56Z https://www.um.edu.mt/library/oar/handle/123456789/31453 Title: Time-varying risk premia in the single European treasury bill market Authors: Mylonidis, Nikolaos Abstract: This paper investigates the validity of the expectations hypothesis (EH) with time-varying, albeit stationary, term premia in the Ecu Treasury bill market. The analysis utilises the term premium factor representation proposed by Tzavalis and Wickens (1997) and the modified VAR approach by Cuthbertson et al. (1997). The findings indicate that once time-varying term premia are accounted for, estimated models cannot reject the predictions of the EH. However, these term premia do not exhibit strong persistence. The rejection of the spread restriction for (n,m)=(26-week,13-week) may be due to a small I(1) term premium and/or a slight misalignment of investment horizons. Sun, 01 Jan 2006 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/31453 2006-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/31452 Title: The Greek capital market : caught in between poor corporate governance and market inefficiency Authors: Thalassinos, Eleftherios; Kyriazidis, Theodoros; Thalassinos, John Abstract: The investors’ shift towards shares, in the late 1990s drove stock prices up to unduly high levels in the Athens Stock Exchange (ASE). On the other hand companies listed in the ASE were attracted to equity finance. There was a significant gap of perception between investors and companies regarding the cost of equity. The return on stock investment expected by investors between 1995 and 1999 was around 70%, yet, for companies the visible cost of equity, practically equal to the dividend yield, was about 1%. Such a gap can be explained by the problematic system of corporate governance and the inefficiency of the Greek stock market. The Greek governance system, traditionally based on the monitoring role of financial intermediation, lack the norms to provide adequate protection for minority interests in the context of the new trend favoring fund raising through the stock market. Preference of equity over debt reduced considerably control over the use of funds and the accountability of controlling owners to the providers of capital, allowing for misuse of resources. On the other hand, investors dared to invest in stocks that yielded dividends of about 1% in the late 1990s due to market inefficiency created by some form of irrational investors’ behavior based on "overreaction" and ‘feedback trading". The current slump of the stock market is changing the original perception. Weakness in investor’s protection affects access to finance, cost of capital and ultimately economic growth. Companies pay the price for their excess finance in the past and controlling owners face up to the true cost of equity. The true cost of equity emerges by the responsibilities to shareholders not only in terms of dividends, but also capital gains which investors expect. Corporate governance reform has become the new rhetoric in Greece, but it continues to separate capital contribution from control. However, with such a corporate governance and declining corporate’s profits, companies are unable to placate once again investors. Sun, 01 Jan 2006 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/31452 2006-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/31450 Title: Globalization and International entrepreneurship Authors: Pediaditakis, Minas; Thomaidis, Kleanthis Abstract: Despite its specific destabilizing effects, the real dimensions of globalization do not justify a general alarm. Although technology revolution, "knowledge society", and deregulation trend bring uncertainty and risks, there is not a real global market yet, abolishing the national policy field and exposing firms, social groups and states to the threat of the global speculative capital. Objective difficulties restrict the irrepressible development of globalization while, concerning firms, the dangers hanging over the big multinational firms weaned from their national base, explain the absence of a generalized trend for their conversion to supranational firms. However, the ineluctable character of globalization and the ensuing competitive landscape, force firms to permanently adjust their strategy, structure and processes and often to internationalize in order to survive and sustain their competitive advantage. Lastly, prerequisites for successful internationalization are examined, especially for mall and middle sized enterprises which, far from being in rivalry with the multinational firms, they do well to develop complementary relationships and mutually profitable synergistic links with them. Sun, 01 Jan 2006 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/31450 2006-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/31449 Title: Assessing the effectiveness of the exchange rate movements on the Greek current account deficit : a cointegration analysis Authors: Paleologos, John M.; Bitzis, Grigorios Abstract: Using the Johansen Cointegration analysis, Error Correction Modeling (ECM) and Granger Causality on annual data over the 1963 – 2003 period, it is shown that there is a long and short run relationship between the Greek current account deficit and the real effective exchange rate of the Greek currency with the currencies of European Union (EU-15) countries, which are partners of Greece in EU-15. The empirical evidence reveals one – way causality from current account deficit to GDP, RER, GDP11, M3 and BD. The specification and diagnostic tests yield satisfactory results, indicating that the ECM estimates are consistent with the empirical framework. Sun, 01 Jan 2006 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/31449 2006-01-01T00:00:00Z