My self- study for today consists of learning more about the business English and to learn more vocabulary. For that, I used a new web site which is http://www.nottingham.ac.uk/~alzsh3/acvocab/AVWLGapChoice.pl.
This paragraph that I choose from Google scholar is talking about the role of Capital in the financial institutions
According to the authors, the point of departure for all modern on capital is the Modigliani-Miller (M&M, 1958) proposition that in a frictionless world of full information and complete markets, a firm s capital cannot affect its value. The authors suggest however, that institutions lack any plausible rationale in the frictionless world of M&M. Most of the past on institutions has begun with a set of imperfections, such as taxes, costs of distress, transactions costs, asymmetric information and regulation. Miller argues (1995) that these imperfections may not be important enough to overturn the M&M Proposition. Most of the other papers presented at this conference on capital take the view that the deviations from M&M s frictionless world are important, so that institutions may be able to enhance their market values by taking on an optimal amount of leverage.
Summarize
This paragraph show us the importance of Modigliani and Miller‘s theory. In fact, according to this though, all the other research on the capital’s structures were based.
The second paragraph is about comparing financial system
Financial systems are crucial to the allocation of resources in a modern . They channel household savings to the corporate and allocate investment funds among firms; they allow intertemporal smoothing of consumption by households and expenditures by firms; and they enable households and firms to share risks. These are common to the systems of most developed . Yet the form of these systems widely. In the
Summarize
According to this paragraph, we can conclude that British and American systems are simulated to each other and they differ from those of
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