ON FINANCE - Annotated Bibliography Example

Annotated Bibliography on Finance Annotated Bibliography on Finance Subrahmanyam, A. & Titman, S. (1999).The Going-Public Decision and the Development of Financial Markets. THE JOURNAL OF FINANCE, LIV (3):1045-1082.In this article, the authors explore the relationships that exist between the efficiency of stock price, preference concerning finance source (private and public financing) and rise of capital markets in developing nations. According to the authors, public financing becomes attracting in the event that pricey and assorted information is readily available and investors can freely access this valuable information.

The authors further assert that the market size determine the value of public corporations. Therefore, when firms go public, there is usually a positive externality that develops as firms go public. This article is crucial for individuals pursuing finance and those conducting research in the field of public financing. However, it remains vital to explore other sources of information on the same topic in order to come up with a report backed up with adequate academic sources.DENG, M., MELUMAD, N.

& SHIBANO, T. (2012). Auditors’ Liability, Investments, and Capital Markets: A Potential Unintended Consequence of the Sarbanes-Oxley Act. Journal of Accounting Research, 50(5):1179-1216.As the title suggests, the authors explore the effect of increased liability of auditors on rate of audit failure, cost of capital and new investment level. According to the authors, the Sarbanes-Oxley Act, 2000 authorized stringier regulations, which increased the liability of auditors. However, these move increased the confidence of investors as regards the trustworthiness of company financial disclosures.

The authors explore market imperfection in terms of information flow. They discuss a scenario where a firm in lemons market intends to raise capital from investors who have no information that the audit they are relying on is imperfect. The authors argue in their conclusion that audit failure is indirectly proportional to increased auditor liability and capital cost for new ventures. This resource is crucial for practicing auditors and accountants. It is also very insightful for professionals pursuing accounting and auditing career and conducting research.

However, further research is necessary to justify the claims of the authors.Bar-Yosef, S. & Prencipe, A. (2013).The Impact of Corporate Governance and Earnings Management on Stock Market Liquidity in a Highly Concentrated Ownership Capital Market, Journal of Accounting, Auditing & Finance, 28(3):292–316.In a situation with very high non-institutional ownership, the authors of this article explore how corporate governance machineries and earnings management impact market liquidity. The research presents empirical verification of dual effect of corporate governance mechanisms, which includes the independence of the board and duality of the CEO.

According to the article, there exists not much empirical evidence on the effect of mechanisms of corporate governance as well as earnings management on the liquidity of the market where non-institutional ownership dominates. This article is an important resource for individuals carrying out research in corporate governance issues in relation to market liquidity as it provides great insights into the topic.Jekyll & Hyde (2013). Safe or sorry? Some truths about annuities: What you need is probably not what your agent is pushing.

MoneyAdviser, 10(6):3-5.This article looks into annuity investment revealing some facts, which are important for annuity investors. The article discusses how annuities work giving some crucial advice to the public who intend to invest on annuities. The article gives various types of annuities citing their advantages and disadvantages for investors (retirees). This paper is quite resourceful for investors as it can help them make informed choices and decision-making concerning investment on annuities.

Also, the article provides great insight for researchers in the field of annuities as an investment opportunity.ERGUSSON, D.A. (n.d). RECENT DEVELOPMENTS IN PREFERRED STOCK FINANCING. The Journal of Finance, 448-462.As the title suggests, the author of this article explores latest advancements in the stock market. The article particularly focuses on the factors that have lead corporate management to increase the use of preferred stock financing. The author asses the role played by the factors to issuing investors, firms as well as the banking machinery.

This study offers investors and stock market researchers with crucial insight into the operation of stock market with particular focus on preferred stock financing.ReferencesBar-Yosef, S. & Prencipe, A. (2013).The Impact of Corporate Governance and Earnings Management on Stock Market Liquidity in a Highly Concentrated Ownership Capital Market, Journal of Accounting, Auditing & Finance, 28(3):292–316.DENG, M., MELUMAD, N. & SHIBANO, T. (2012). Auditors’ Liability, Investments, and Capital Markets: A Potential Unintended Consequence of the Sarbanes-Oxley Act.

Journal of Accounting Research, 50(5):1179-1216.ERGUSSON, D.A. (n.d). RECENT DEVELOPMENTS IN PREFERRED STOCK FINANCING. The Journal of Finance, 448-462.Jekyll & Hyde (2013). Safe or sorry? Some truths about annuities: What you need is probably not what your agent is pushing. MoneyAdviser, 10(6):3-5.Subrahmanyam, A. & Titman, S. (1999).The Going-Public Decision and the Development of Financial Markets. THE JOURNAL OF FINANCE, LIV (3):1045-1082.