scholarly journals Value-relevance of disclosure: risk factors and risk management in Brazilian firms

2018 ◽  
Vol 29 (78) ◽  
pp. 390-404
Author(s):  
José Glauber Cavalcante dos Santos ◽  
Antonio Carlos Coelho
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Capital Market ◽  
Value Relevance ◽  
Panel Data Estimation ◽  
Residual Income Valuation ◽  
Existence Of Value ◽  
Accounting Reports ◽  
Data Estimation

ABSTRACT This study investigated whether the disclosure in accounting reports of information on risk and its management affects, at the margin, firm valuations in the Brazilian capital market. It questioned the existence of value relevance in the disclosure of information related to risk factors and risk management structures. The importance of the topic arises from the documentation that disclosure on risk factors plays a statistically significant role in valuing firms in a context marked by economic and political uncertainty, as is the case of the Brazilian market. The findings confirmed that information about risk shows informational relevance for firm valuations. Information on risk management in a firm, in turn, was not shown to be significant in terms of affecting company share valuations. The investigation of detailed reports with different risk factors indicated that individualized information shows different degrees of relevance for company valuations. It is inferred that the disclosure of risk factors affects the perception of investors, who also base their estimates of return on the availability and detail of such information. It is also observed that information on risk management structure was not shown to be value relevant; moreover, few firms published information on the establishment of this type of entity in their management structures. The residual income valuation (RIV) model (Ohlson, 1995) was applied using regressions with panel data estimation related to the three years covering 2012 to 2014. The sample, which was randomly delimited, was formed of 100 companies. The data on disclosure of risk and disclosure of risk management were collected from the companies’ Reference Forms, available from the website of the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA). As an impact on the area of knowledge, broader discussions are expected regarding the utility of disclosure on the topic related to risk factors and the existence of a specific body responsible for risk management in firms, according to investors’ perceptions. It also contributes by providing evidence about the quality of disclosure related to risk (factors and management) and the perception of the capital market regarding the informativeness and relevance of such elements.

ENTREPRENEURIAL OPTIMISM, THE NATURE OF ENTREPRENEURIAL EXPERIENCE AND DEBT DECISION FOR BUSINESS START-UP

2018 ◽  
Vol 22 (03) ◽  
pp. 1850024 ◽  
Author(s):  
HÉDIA FOURATI ◽  
RIHAB BEN ATTITALAH
Keyword(s):  
Earnings Forecasts ◽  
Adjustment Cost ◽  
Debt Ratio ◽  
Entrepreneurial Experience ◽  
Panel Data Estimation ◽  
Quality Of Control ◽  
Start Up ◽  
Serial Entrepreneurs ◽  
Data Estimation

This paper studies the entrepreneurial optimism and debt decisions for business start-up. By analysing a sample of 160 business start-up and by using the panel data estimation, we study entrepreneurs’ optimism and its impact on debt decision of business start-up. The measure of entrepreneurial optimism is based on the entrepreneur earnings forecasts initiated by Lin et al. (2005). Meanwhile, the nature of entrepreneurial experience (serial and portfolio entrepreneur) has an effect on entrepreneurial optimism and leads to more or less optimistic entrepreneur. The results reveal that optimistic entrepreneur prefers equity in funding the financial deficit. Serial entrepreneurs tend to use more debt funding. In the dynamic model, the entrepreneur acquiring business concurrently adjusts slowly to debt ratio. Nevertheless, the sequential entrepreneurial experience leads to more optimism and so on more debt use. Given the governance role played by banks, the high adjustment cost for start-up is a consequence of the efficiency of the quality of control exercised by banks that in spite of entrepreneurial optimism, the entrepreneur does not convince the financiers to be so confident on the prospect of the business.

scholarly journals Factors affecting the student evaluation of teaching scores: evidence from panel data estimation

2012 ◽  
Vol 42 (1) ◽  
pp. 129-150 ◽  
Author(s):  
Eduardo de Carvalho Andrade ◽  
Bruno de Paula Rocha
Keyword(s):  
Training Programs ◽  
Student Evaluation ◽  
Random Effects Model ◽  
Student Evaluation Of Teaching ◽  
Factors Affecting ◽  
Panel Data Estimation ◽  
Quality Of Teaching ◽  
Evaluation Of Teaching ◽  
Data Estimation

We use a random-effects model to find the factors that affect the student evaluation of teaching (SET) scores. Dataset covers 6 semesters, 496 undergraduate courses related to 101 instructors and 89 disciplines. Our empirical findings are: (i) the class size affects negatively the SET score; (ii) instructors with more experience are better evaluated, but these gains reduce over time; (iii) participating in training programs, designed to improve the quality of teaching, did not increase the SET scores; (iv) instructors seem to be able to marginally 'buy' a better evaluation by inflating students' grade. Finally, there are significant changes in the rankings when we adjust the SET score to eliminate the effects of variables beyond instructors' control. Despite these changes, they are not statistically significant.

scholarly journals METHODICAL ISSUES IN ASSESSING THE RISK OF FAILURE TO ACHIEVE THE STRATEGY GOAL OF THE MONOTOWN DEVELOPMENT

2018 ◽  
Vol 2018 (1) ◽  
pp. 97-102
Author(s):  
Р. Качалов ◽  
R. Kachalov
Keyword(s):  
Risk Factors ◽  
Economic Theory ◽  
Risk Management ◽  
Economic Development ◽  
Negative Impact ◽  
Social And Economic Development ◽  
Operational Theory ◽  
Single Industry ◽  
Strategic Goal

<p>The research features the problem of social and economic characteristics of improvement of single-industry cities, or monotowns. Its proposed solution is based on the strategy of their transformation into territories of the advancing social and economic development. It is shown that successful achievement of this strategy requires revealing risk factors of a deviation from the strategy goal and assessing the degree of their negative impact on the process of achievement of the strategic indicators. The methodical aspect can be provided by the operational theory of risk management. Applied methods of the operational theory of risk management together with methods of the systematic economic theory and theory of indistinct sets allow one to increase the chances of successful achievement of a strategic goal and to increase quality of management of formation process (on the basis of monotowns) and to improve the conditions of the advancing social and economic development. The author recommends some methods of identification of risk factors connected with a failure to achieve the strategic goal as well as some methods of development of anti-risk administrative influences.</p>

scholarly journals Value relevance of deferred tax assets in the Brazilian banking industry

2020 ◽  
Vol 31 (82) ◽  
pp. 33-49
Author(s):  
Leandro Dias Guia ◽  
José Alves Dantas
Keyword(s):  
Capital Market ◽  
Banking Industry ◽  
Value Relevance ◽  
Negative Relationship ◽  
Market Value ◽  
Economic Benefits ◽  
Equity Structure ◽  
Deferred Tax Assets ◽  
Deferred Tax

ABSTRACT This study aimed to investigate the informational relevance to the capital market of the significant level of deferred tax assets (DTAs) in the Brazilian banking industry, identifying whether such assets influence the market value of publicly-held banks. The value relevance of DTAs in the banking industry is an incipient topic in the national literature, with conflicting results in the international research. Brazil presents characteristics, most notably regarding the dimension of the asymmetries between accounting and taxable profit, which justify concern about the effects of DTAs on the market value of banks. The literature highlights issues involving DTAs related to their ability to generate economic benefits and control of the entity, especially in the banking industry, due to not fulfilling the role of financial intermediation, which would make them devoid of economic substance. This would signal potential bank risks and weaknesses, such as a reduction in the quality of equity and profits, in addition to distortions in the economic-financial indicators, which would justify a negative perception on the part of investors. As the study’s main contribution to the literature, we can highlight the identification that in the Brazilian market, the asymmetries between banks’ taxable and corporate earnings, the origin of deferred tax assets, weigh negatively on the market value of these institutions. We empirically tested the hypothesis in the Brazilian capital market, using data from 2000 to 2017 on publicly-held banks, by estimating two models - Market-to-Book and Ohlson (1995). The results of this study show that in the Brazilian capital market there is a negative relationship between the volume of the banks’ DTAs and the market value of these entities, corroborating the hypothesis that investors identify the relevance of these assets in the equity structure as a sign of the quality of the equity and the profit of these entities being undermined.

scholarly journals Editorial

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Abimbola Windapo
Keyword(s):  
Risk Factors ◽  
South Africa ◽  
Risk Management ◽  
Construction Projects ◽  
Social Protection ◽  
Business Strategies ◽  
Response Level ◽  
Management Techniques ◽  
Business And Management

Welcome to the first issue of the Journal of Construction Business and Management in 2018. The themes covered in this issue are related to risk management and procurement practices used in the delivery of construction projects. These papers fill critical gaps in the knowledge and practice of construction procurement, business and project management by exposing the reader to innovative procurement systems and risk management techniques. The issue contains five articles that were written by authors based in South Africa and Nigeria. Altogether, eight authors produced these papers aimed at strengthening the discourse in and enhancing construction project procurement, business and management research. The first paper by Ayegba investigates the duties performed by and the required competencies of management contractors, towards elucidating essential considerations for the selection and use of management contractors on construction projects. The study establishes that a management contractor's duties involve multi-tasking over the design and construction stages of a project. Paper two by Olusanya examines the influence of subcontracting systems on access to social protection measures by workers in the informal building construction sector and suggests that the government in Nigeria should advance formalization of employment in the informal sector and support community-based social insurance schemes. Dosumu's paper highlights the need to identify risks on projects before the initiation of the project based on the research findings that although stakeholders are aware and adopt risk management techniques on construction projects, the implementation is at response level rather than identification level. Paper four by Waziri identifies nine risk factors as significant contributors to the high-risk profile of Build Operate and Transfer projects and proposes that stakeholders should focus on these risk factors responsible for 80% of the risk impacts. The final paper by Anugwo, Shakantu, Saidu and Adamu suggests that a significant number of Small, Medium and Micro Enterprise (SMME) contractors in South Africa are reluctant to amplify their potential capabilities, and needed the readiness to develop international business strategies that would enable them to penetrate and participate in the South African Development Community region and global construction market. The authors recommend that both the SMME and large contractors in South Africa should harness their potential capacity towards globalizing their businesses and improving their global competitiveness. Finally, I wish to thank all authors who submitted papers for consideration, members of the Editorial Board and Panel of Reviewers for their assistance, timeous feedback and comments that helped shape and improve the quality of the submitted manuscripts. Finally, we welcome your feedback and suggestions that will help improve the quality of the journal and maintain the integrity of the findings published.

scholarly journals Determination by the Settlement Systems of the Required Collateral Imposed to Participants

2020 ◽  
Vol 14 (1) ◽  
pp. 925-939
Author(s):  
Laurentiu Paul Baranga ◽  
Iulian Zalinca
Keyword(s):  
Risk Management ◽  
Financial Markets ◽  
Capital Market ◽  
Financial Risks ◽  
Settlement System ◽  
Settlement Systems ◽  
Clearing And Settlement ◽  
Financial Transactions

AbstractThe dynamics of the increase in volume and amount of the financial or commercial transactions during the last decennials has amplified the role of clearing and settlement systems, along with the payment ones. From the quality of these systems as a financial markets stability provider also derives the concern for the management of financial risks mainly generated by the participants in these systems. The clearing-settlement systems, operated by infrastructure entities of the capital markets, ensure, within certain limits, a risk management for the incidents that could occur in the settlement activity regarding the financial transactions concluded between participants. We are going to present a methodology for determining the required collateral that must be maintained/updated by the debtor participants of a clearing-settlement system in order to ensure a robust management of the risks that could occur in the settlement operations. This methodology can be applied by any infrastructure entity of the capital market that manages collateral systems to limit the number of cases of settlement fails in financial transactions.

The concept of motivation for effective credit risk management

2020 ◽  
Vol 26 (11) ◽  
pp. 2567-2593
Author(s):  
M.V. Pomazanov
Keyword(s):  
Risk Management ◽  
Economic Modeling ◽  
Type I ◽  
Credit Risk Management ◽  
Curve Modeling ◽  
Business Functions ◽  
The Common ◽  
Lending Decisions ◽  
The One

Subject. The study addresses the improvement of risk management efficiency and the quality of lending decisions made by banks. Objectives. The aim is to present the bank management with a fair algorithm for risk management motivation on the one hand, and the credit management (business) on the other hand. Within the framework of the common goal to maximize risk-adjusted income from loans, this algorithm will provide guidelines for ‘risk management’ and ‘business’ functions on how to improve individual and overall efficiency. Methods. The study employs the discriminant analysis, type I and II errors, Lorentz curve modeling, statistical analysis, economic modeling. Results. The paper offers a mechanism for assessing the quality of risk management decisions as opposed to (or in support of) decisions of the lending business when approving transactions. The mechanism rests on the approach of stating type I and II errors and the corresponding classical metric of the Gini coefficient. On the ‘business’ side, the mechanism monitors the improvement or deterioration of the indicator of changes in losses in comparison with the market average. Conclusions. The study substantiates the stimulating ‘rules of the game’ between the ‘business’ and ‘risk management’ to improve the efficiency of the entire business, to optimize interactions within the framework of internal competition. It presents mathematical tools to calculate corresponding indicators of the efficiency of internally competing entities.

Ergonomic approaches to the organization of workplaces of teenagers at school

2020 ◽  
pp. 533-533
Author(s):  
V. A. Ablyaeva
Keyword(s):  
Risk Factors ◽  
Musculoskeletal System ◽  
Work Ability ◽  
Educational Environment ◽  
Visual Analyzer

The ergonomics of workplaces in the educational environment makes a significant effect on adolescents’ health, may create risk factors for disorders of the musculoskeletal system and the visual analyzer, which affect the work ability and quality of future life.

Clinical case of a comorbid patient with arterial hypertension

2020 ◽  
pp. 31-39
Author(s):  
Ella Polozova ◽  
Vsevolod Skvortsov ◽  
Olga Radaykina ◽  
Mariya Narvatkina ◽  
Anastasiya Seskina ◽  
...  
Keyword(s):  
Quality Of Life ◽  
Risk Factors ◽  
Arterial Hypertension ◽  
Clinical Picture ◽  
Clinical Case ◽  
Diagnosis And Treatment ◽  
The Moment

The widespread prevalence of comorbid pathology determines the relevance of this problem. Comorbid pathology due to the interaction of diseases, drug pathomorphism, age characteristics of the patient, significantly changes clinical picture and course of the main nosology, affects severity of complications and their nature, significantly affects quality of life and prognosis of patients. Diagnosis and treatment of many diseases is complicated in the conditions of comorbidity. The article presents a clinical case of a comorbid patient with arterial hypertension from the moment of exposure to risk factors and ending with the formation of many concomitant diseases, as an example of trans-nosological comorbidity.

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