scholarly journals AUTHORIZED CAPITAL AS A RISK MANAGEMENT TOOL IN EMERGING ECONOMIES. THE CASE OF POLAND

2015 ◽  
Vol 1 (310) ◽  
Author(s):  
Agata Adamska ◽  
Piotr Staszkiewicz
Keyword(s):  
Risk Management ◽  
Financial Market ◽  
Emerging Economies ◽  
Stock Exchange ◽  
Management Tool ◽  
Market Forces ◽  
Statistical Relationship ◽  
Management Tools ◽  
Warsaw Stock Exchange ◽  
Authorized Capital

Abstract: This paper addresses the strength of the incentives from both supervisors and market players to use authorized capital application as a risk management tool. The study contrasts the motivational factors for the financial market in transition  and market supervisor. It analyses the interaction between motivation and the application of authorized capital as a risk management tool. We challenge the hypothesis that there is a weak statistical relationship between goodwill rates and the existence of authorized capital instruments for quoted companies and a weak statistical relationship between bank allowance and authorized capital instruments. Through the application of logit procedures to companies quoted on the Warsaw Stock Exchange, we conclude findings based on 386 listed and domiciled entities in Poland, as quoted on the of 30 December 2011. We conclude a semi-effective market suffers from efficiency in adoption of authorized capital as a risk management tool. We indicate that market forces are overridden by supervisory requirements; thus, the promotion of effective risk management tools is positively associated with regulator and supervisory activities.

Factors influencing Midwestern grain farmers’ use of risk management tools

2019 ◽  
Vol 79 (2) ◽  
pp. 192-203
Author(s):  
Brian K. Coffey ◽  
Ted C. Schroeder
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Mail Survey ◽  
Management Tool ◽  
Farm Size ◽  
Management Tools ◽  
Content Type ◽  
Multinomial Logit Regression ◽  
Decision Choices ◽  
Grain Farmers

PurposeThe purpose of this paper is to identify the relationships between grain farm and farmer profiles and their respective choices to use forward pricing techniques and revenue protection crop insurance to manage risk.Design/methodology/approachAn e-mail survey of Midwestern grain farmers elicited farmer demographic information, farm profile, risk attitudes and farmer use of forward pricing and revenue protection insurance. Responses regarding use of risk management tools were compiled as choices to use possible bundles of tools to account for simultaneous nature of the decision. Choices to use bundles of tools were used as the independent variable categories in a multinomial logit regression. Regressors were relevant data collected from the survey.FindingsFarm size, using a market advisory service, and being a technology adopter are the most important factors in predicting risk management tool use by grain farmers. Farmers tend to use forward pricing and revenue protection insurance in combination. Large farms are more likely to use forward pricing tools.Practical implicationsResults provide researchers, extension professionals and risk management specialists with a current understanding of how farm and farmer characteristics relate to use of risk management tools. The authors also elaborate on findings to provide guidance for future risk management research.Originality/valueThe survey covered 9 Midwestern states and 648 grain farmers. The survey results update understanding of grain farmers’ risk management practices. The empirical approach treats risk management decisions to use available tools as simultaneous, which recent literature suggests is more appropriate than earlier approaches.

scholarly journals Investor Sentiment In The Financial Market: A Survey

2021 ◽  
Author(s):  
Charles A. Aziegbemhin
Keyword(s):  
Neural Networks ◽  
Risk Management ◽  
Financial Market ◽  
Investor Sentiment ◽  
Management Tool ◽  
Market Behavior ◽  
Market Returns ◽  
Wide Acceptance ◽  
Comprehensive Survey ◽  
Alternative Markets

Many techniques like technical analysis, fundamental analysis, neural networks etc are used to forecast market behavior but none of these methods has been consistently acceptable forecasting tool. This thesis surveys more than 200 related published articles that study investor sentiment techniques as derived and applied to forecasting equity, debt and alternative markets. From the literatures, it shows that the application of investor sentiment for evaluating market behavior is gaining wide acceptance. Changes in investor sentiment can trigger changes in the valuation and pricing of assets, therefore offering the ability to forecasting market directions more accurately than other techniques. This study is the most comprehensive survey on investor sentiment techniques and its impact on forecasting a panel of assets in the equity, debt, derivative and other alternative investment markets. It examines forecasting as it affects sentiment, investor sentiment, it influence on market returns, news analytics and its use as profit and risk management tool.

scholarly journals Alternative Securities Markets as Financing Sources for SMEs – Selected Aspects of AIM and NC

2017 ◽  
Author(s):  
Joanna Małecka
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Stock Exchange ◽  
Annual Reports ◽  
Stock Exchanges ◽  
Special Focus ◽  
Growing Stock ◽  
Warsaw Stock Exchange ◽  
Market Operation ◽  
The Uk

Small and medium-sized enterprises are the foundation for the development of each contemporary national economy. Their number affects macroeconomic indices of economies and directly translates into the labour market created by SMEs. This article aims to investigate the key conditionings behind the macroeconomic significance and legal factors of the financial market operation in Poland and the UK, with particular emphasis on the stock exchange as the fundamental element of the capital market. Both AIM and NewConnect are platforms dedicated to SMEs, which have been allowed easier access to this capital market segment by minimising mandatory legal conditions. This study analyses the number of listed companies and their capitalisation values in 1999–2015, covering: the rules of the financial market operation, with a special focus on the legal bases of the stock market operation in the economies investigated; legal conditions for the development of this economic segment; and a detailed analysis of the number of participants and capitalisation values achieved on the Warsaw and London Stock Exchanges, in particular AIM and NewConnect. This paper builds on source data from various annual reports and stock exchange publications drawn up and made available by stock exchanges and financial supervisors. The attempt to compare the indices and capacities of the WSE and the NC with the biggest European player is motivated by the fact that the Warsaw Stock Exchange is classified as the largest and most dynamically growing stock exchange in Central and Eastern Europe.

scholarly journals The role of subsidies in managing the operating risk of agricultural enterprises

2009 ◽  
Vol 55 (No. 4) ◽  
pp. 169-180 ◽  
Author(s):  
J. Špička ◽  
J. Boudný ◽  
B. Janotová
Keyword(s):  
Risk Management ◽  
Crop Yields ◽  
Sample Survey ◽  
Cow Milk ◽  
Management Tool ◽  
Farm Income ◽  
Management Tools ◽  
Operating Risk ◽  
Livestock Productivity

The paper examines the relationship between the farmers’ operating risk and current subsidies. Focused at the commodity level, the analysis is based on a sample survey of costs and yields of two crops (winter wheat and rapeseed) and two livestock commodities (cow milk and fattening cattle) carried out in 2005–2007 in the Czech Republic. The risk analysis relates to the growing conditions, crop yields and the livestock productivity. The future role of the subsidies as the risk management tool in the farming business, as well as the position of this instrument against the other risk management instruments is analysed. The break even analysis and the Monte Carlo simulation are used as analytical tools. The results indicate that the current subsidies have an impact on the stability of the farmers’ income. Partially or fully decoupled payments serve as a “financial pillow” increasing the level of the farmers’ income and extending the farmers’ decision-making possibilities. Furthermore, the current subsidies reduce the variability of the farmers’ income. The current subsidies are a suitable complement to other commonly used risk management tools primarily designed to reduce the farmers’ and farm income variability.

An analysis of risk management tools utilized by Illinois farmers

2014 ◽  
Vol 74 (1) ◽  
pp. 69-86 ◽  
Author(s):  
Kerry Tudor ◽  
Aslihan Spaulding ◽  
Kayla D. Roy ◽  
Randy Winter
Keyword(s):  
Cluster Analysis ◽  
Risk Management ◽  
Logistic Regression ◽  
Multinomial Logistic Regression ◽  
Risk Attitude ◽  
Management Tool ◽  
Management Service ◽  
Perceived Effectiveness ◽  
Management Tools ◽  
Content Type

Purpose – The purpose of this paper is to investigate the relationships among choice of risk management tools, perceived effectiveness of risk management tools, self-reported risk attitude, and farm and farmer characteristics. Design/methodology/approach – A mail survey was used to collect information about utilization of risk management tools, perceived effectiveness of risk management tools, and factors that could influence choice of risk management tools by Illinois farmers. Cluster analysis, one-way ANOVA, χ2 tests of independence, and multinomial logistic regression were utilized to detect possible relationships among choice of risk management tools, perceived effectiveness of risk management tools, self-reported risk attitude, and farm and farmer characteristics. Findings – Multinomial logistic regression analysis revealed that age and gross farm income (GFI) were the strongest predictors of the risk management tool utilization group to which an individual would be assigned. The number of risk management tools utilized decreased with age but increased with GFI. Neither self-reported risk attitude nor education was a significant independent variable in the multinomial logistic regression model, but both were strongly impacted by age. Younger farmers with higher GFI were the most likely users of hedging. Research limitations/implications – The results of this study provide support for the idea that farmers who are better able to generate revenue are better able to manage risk, but the direction of causality was not investigated. Practical implications – Risk management service providers could benefit from this study as a benchmark for understanding their current and potential farmer clients’ risk management strategies. Originality/value – This study used cluster analysis and multinomial logistic regression to address the complexity of decisions regarding multiple risk management tools. The number of tools utilized by individuals was investigated.

scholarly journals Derivative products and innovation in Islamic finance

2014 ◽  
Vol 7 (3) ◽  
pp. 242-257 ◽  
Author(s):  
Seng Kiong Kok ◽  
Gianluigi Giorgioni ◽  
Jason Laws
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Supervisory Board ◽  
Management Tool ◽  
Islamic Finance ◽  
Management Tools ◽  
Content Type ◽  
Risk Transfer ◽  
Financial Framework ◽  
The Creation

Purpose – The purpose of this paper is to highlight the possibility of structuring an Islamic option which includes an element of risk sharing as opposed to risk transfer. Design/methodology/approach – The approach adopted in this research involved a combination of a wa’ad (promise) and murabaha (cost plus sale) and examining if they could form a risk-sharing Islamic option. The payoffs were assumed to be dependent on bi-period outcomes. Findings – The paper attempted to create a hybrid risk-sharing option by combining elements of both wa’ad (promise) and murabaha (cost plus sale). The results yielded are dependent on the eventual direction of the market (in-the-money, at-the-money and out-the-money). While the results are not definitive, they do provide arguments for the adoption of a risk-sharing, as opposed to a risk-transfer, methodology when it comes to structuring risk management instruments. Research limitations/implications – One of the major limitations of this research is the inability to assess the Shariah compliance of the proposed instrument. Shariah compliance is determined by a Shariah Supervisory Board, and every effort has been made to ensure that Shariah financial principles are adhered to in the creation of this structure. Practical implications – The structure provides some interest arguments in the creation of risk management tools under a Shariah financial framework. The structure illustrates the benefits of having a risk-sharing mode over the conventional risk-transfer stances of most risk management tools. Originality/value – The paper offers a new way of structuring a risk management tool in Islamic finance. It explores the highly debated area of derivatives in Islamic finance and proposes a new way of creating a risk management tool that involves some elements of risk sharing.

scholarly journals The Evaluation of Trade Credit Insurance in Lithuanian Business Market as a Credit Risk Management Tool

2017 ◽  
Vol 14 (1) ◽  
pp. 5-20 ◽  
Author(s):  
Aleksandra Lezgovko ◽  
Andrej Jakovlev
Keyword(s):  
Risk Management ◽  
International Trade ◽  
Credit Risk ◽  
Trade Credit ◽  
Alternative Methods ◽  
Management Tool ◽  
Credit Risk Management ◽  
Management Tools ◽  
Credit Insurance ◽  
Business Market

AbstractIn today’s trade, the vast majority of commercial transactions in both domestic and international trade are concluded by applying trade credit terms. The aim of this article is to analyse the trade credit insurance and, according to the methodology, to evaluate it as a credit risk management tool in the context of Lithuanian business market. The authors have proposed a methodology that combines theoretical and practical research methods. First of all, with assistance of qualitative analysis, the alternative external credit risk management tools were examined. Such analysis allows not only to identify the advantages, disadvantages and benefits of researched risk management tools but also to assess the efficiency and rationality of trade credit insurance in the context of alternative methods. In order to carry out an assessment in the practical aspect, considering the lack of statistical data, it was decided additionally to perform an expert evaluation. After performing an assessment of trade credit insurance, it was concluded that in international trade, with a large buyer portfolio and high sales volume, the trade credit insurance becomes the most effective and rational way to manage credit risk, which eliminates the losses because of the debtor’s insolvency or bankruptcy, manages countries and sector’s risks and helps to discipline the debtor, what determines the decline in overdue accounts frequencies, amounts and volumes.

Enhancing DotProject to Support Risk Management Aligned with PMBOK in the Context of SMEs

2015 ◽  
Vol 6 (2) ◽  
pp. 40-60 ◽  
Author(s):  
Rafael Queiroz Gonçalves ◽  
Elisa de Freitas Kühlkamp ◽  
Christiane Gresse von Wangenheim
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Best Practices ◽  
Software Development ◽  
Small And Medium Enterprises ◽  
Management Tool ◽  
Development Projects ◽  
Management Tools ◽  
Management Processes ◽  
Medium Enterprises

Many problems in software development projects are due to risks and could be avoided or minimized if identified and treated pro-actively. In this context, software tools to support risk management could be very helpful. However, it is difficult to find a project management tool, accessible to Small and Medium Enterprises (SMEs) that provides adequate support to risk management in conformance with best practices such as the PMBOK. Therefore, this paper has the objective to review support provided by popular project management tools with respect to risk management and to present enhancements made to the open-source tool – dotProject – in order to systematically support risk management aligned with the PMBOK. An initial evaluation identified benefits in the implementation of risk management processes in software SMEs, and, thus, contributing to their projects' success.

scholarly journals Why the Par Value of Share Matters to Investors

2021 ◽  
Vol 9 (1) ◽  
pp. 16
Author(s):  
Tadeusz Dudycz ◽  
Bogumiła Brycz
Keyword(s):  
Financial Market ◽  
Negative Impact ◽  
Stock Exchange ◽  
Equity Offerings ◽  
Share Capital ◽  
Excess Supply ◽  
Warsaw Stock Exchange ◽  
The Relationship

The purpose of the study is the analysis of the relationship between the par value (also known as nominal value or face value) and the parameters influencing a company’s financing. Additionally, the utility of the par value as a manipulation tool for equity offerings is examined. The study is based on a sample of IPO firms which went public on the Warsaw Stock Exchange. The study finds that an excess supply of shares has a negative impact on their valuation. In contrast, decreasing the par value prompts perceptual biases among investors beneficial to the success of the issuance. Moreover, share capital is found to be a useful signaling tool to improve the company’s position on the financial market.

Sign in / Sign up

Export Citation Format

Share Document