scholarly journals Financial Risk Assesment of Post Tsunami 2004 Shrimp Production in Aceh

Author(s):  
A U Fitrah ◽  
N A Nasution ◽  
A Nugroho ◽  
A Maulana ◽  
Irwan Irwan

This study aims to identify and to measure the impact of financial risks on shrimp farming in relation to post-tsunami 2004 in Aceh and shrimp diseases. Interviews using questionnaires were conducted on 47 shrimp farmers in five shrimp producing regions in Aceh Province. The risks assessments were measured in frequency of the occurence and the severity of the impacts. This study shows that financial risks due to natural disasters and diseases consisted of production and marketsaspects. The deterioration in selling prices and the increase in production costs would affect major impacts as well as having relatively high frequencies.

2020 ◽  
Vol 22 (1) ◽  
pp. 6-12
Author(s):  
Nelia Volkova ◽  
◽  
Alina Mukhina ◽  

Abstract. Introduction. The issue of financial risk management of commercial banks is quite relevant today, because the activity of banks is the most risky of all. The presence of risks in banking can lead to unexpected losses, namely the loss of own resources. That’s why for the stable operation of the bank without loss the priority is to assess the financial risks, which is the basis for their further neutralization. Purpose. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them. Results. The article analyzes the impact of risks on the financial stability of a banking institution. The main methods of bank risk assessment are considered. All these include the statistical method, the analytical method, the expert method, the analogue method and the combined method. The necessity of neutralization of financial risks in order to avoid negative consequences is substantiated. Also the methods of bank risks neutralization are considered. It should be noted that these methods of neutralization can not only be used, but also supplement the list with new methods must be done, which in the future will protect the bank from the influence of undesirable factors. A conceptual approach to the assessment and neutralization of financial risks is proposed. This conceptual approach aims to ensure effective assessment of the level of risk with their subsequent neutralization Conclusions. Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk. Thanks to using this approach, the banking institution will be able to react swiftly to the presence of financial risks and to prevent the occurrence of negative consequences, which may lead to a violation of the financial stability of the bank.


Author(s):  
Oleksandr Volodmyrovych Lutskevych ◽  

Urgency of the research. Digital technologies are transforming all spheres of social life, and the financial sphere is no exception. In general, such trends cannot but leave an imprint on approaches to managing the financial risk of digital securities. Target setting. Currently, scientific and methodological support for the formation of a mechanism for managing the financial risks of digital securities is in the early stages of development, while the quality of state regulation and supervision of participants in digital securities directly depends on the effectiveness of the current mechanism for managing such risks. Actual scientific researches and issues analysis. Theoretical and applied aspects of the securities market, features of the impact of financial innovations and financial risk management in the field of securities circulation, are researched by V. Bodrov [1], O. M. Kovaleva [2], I. V. Krasnova [3], N. V. Tkachenko [4], Yu. B. Kolupaeva [5] and others. Uninvestigated parts of general matters defining. The methodology of formation the mechanism for managing the financial risks of digital securities needs more precise research. The research objective. Deepening the scientific understanding of the term "financial risk management mechanism for the circulation of digital securities" will ensure to outline ways of increasing the efficiency of this financial instrument usage. The statement of basic materials. This article analyzes the essence of the term "financial risk management mechanism". The construction of the mechanism has been adapted to the specifics of digital securities risk management. Conclusions. The essence of the mechanism of financial risks management of digital securities circulation is improved due to application of a set of methods for identification, quantitative and qualitative analysis, measures to prevent realization and / or reduction of negative consequences of financial risks of digital securities circulation, ways of control over some events.


2020 ◽  
Vol 17 (1) ◽  
pp. 1-14
Author(s):  
Atanas Sixpence ◽  
Olufemi P. Adeyeye ◽  
Rajendra Rajaram

The impact of financial risks on share prices concerns investors, company executives and accounting standards developers. Investors need this information in delineating their equity valuation models while company executives need the information to make appropriate capital structure decisions. Accounting standards developers use this information in their policy to make accounting standards contemporary. The authors examine the link between relative and absolute financial risks and share prices using a dynamic panel of non-financial listed companies on the Zimbabwe Stock Exchange after dollarization. Equity investors incurred losses before dollarization, which prompted this investigation into the sphere of financial risks in order to explain share price movements so that investors can use it to minimize losses in the future. Absolute financial risk is measured by the total debt, while debt/equity ratio measures relative financial risk. Market capitalization as a proxy for equity and debt is measured by total liabilities. An average debt/equity ratio greater or equal to one qualifies a firm into the high-risk category while ratios below one imply low-risk firms. Results from two-step System Generalised Method of Moments (GMM) show negative and significant connection between relative risk and share prices across risk categories. The impact of absolute risk on share prices differs by risk category. Firm managers are advised to keep total liabilities below market capitalization in order to enjoy the benefits of low-risk categorization. Debt ratio is a reasonable indicator of value and investors can use it in equity valuation. Mandatory reporting of debt ratios should be considered by accounting standards developers.


2020 ◽  
Vol 9 (28) ◽  
pp. 451-464
Author(s):  
Viktoriya Manuylenko ◽  
Denis Ryzin ◽  
Natalia Gryzunova ◽  
Olga Bigday ◽  
Olga Mandrytsa

The study substantiates the need to develop and test a model for assessment of strategic financial risk level in corporations. It implies modeling for two indicators: relative (financial leverage) and absolute (external capital of indicators). The model should also take into account influence of emergent environment factors and most stakeholder groups’ interests when building scenarios for their behaviors in the financial markets –Implementation of the model allows establishing financial risk target values considering deviation calculations between the indicators’ modeled and actual values simultaneously determining both tactical and strategic guidelines for Financial Risk Management Policy in corporations, which should involve stakeholders into financial risk-taking process. The model implementation also should be the basis for development and improvement of risk-based forecasting tools, business planning and stress testing. The toolkit for assessing level of current and strategic financial risks in corporations based on simulation modeling was developed and implemented with attraction of general scientific and special methods. Direct results of the study are as follows: in theoretical block of the research – essentially, main attributes of financial risks classification for corporations are identified; they are recognized by time as retrospective, current and strategic financial risks, and correct classification of the latter allows their identification, evaluation and regulation; in practical block of the research – evaluation of financial risk in corporations reveals that the risk apart from other internal factors is highly affected by the level of financial leverage, where its high value increases financial risk; still, corporations do not take into account the influence of environmental factors on its level; the role of tax risk as a part of financial risk is not significant, still it is unfortunate that the Russian legislation system allows double taxation on income tax in the form of dividends, and dividend policy of Russian corporations is unstable; in methodological block of the research –financial risk assessment model for corporations was developed and tested on a platform of a special new software product that determines the target level of financial risk; the model differs from standard approaches to financial risk assessment as it carries strategic forecasting nature and takes into account the impact of emergent environment factors; thus it promotes new areas in strategic financial risk management.


2021 ◽  
pp. 25-32
Author(s):  
Dinara Olzhabayeva ◽  
Maria Petrovskaya Vladimirovna

This article discusses the features of using a multi-level simulation model of financial and economic forecasting when planning the activities of an enterprise operating in the railway industry, in particular in the segment of national and international freight transportation. The authors set a goal to show how, through the use of a multi-level simulation model of forecasting, it is possible to significantly increase the reliability of organizational and managerial decisions and ensure a more efficient allocation of resources and reduction of financial risks. The model constructed by the authors can be used to optimize costs, improve the quality of settlements with debtors and creditors, plan the cost and other indicators of financial and economic activity, the ability to build various forecast scenarios allows you to choose the most acceptable option for the company, taking into account the impact of key factors on the financial result and the level of financial risk.


2021 ◽  
pp. 1-10
Author(s):  
Huali Deng ◽  
Aoduo Zhang

Supply chain finance refers to one or more companies upstream and downstream of the industrial supply chain. According to the core company of each node, based on actual transactions, use customized and standardized financing transaction methods to control capital flows or control assets. The right to provide comprehensive financial products and services between supply chain nodes. This article only needs to introduce the financial risk analysis of the enterprise supply chain based on the fuzzy analytic hierarchy process. This paper proposes a fuzzy analytic hierarchy process, which uses a combination of qualitative and quantitative risk assessment methods to assess financial risks, and designs a financial risk assessment system by constructing a fuzzy judgment matrix. It also proposes a comprehensive judgment of the financial risk assessment method. The impact of various risk factors on financial services provides a basis for risk prevention. The experimental results of this paper show that the fuzzy analytic hierarchy process evaluation method is relatively objective and can effectively evaluate the financial risks of the enterprise supply chain. From the weight analysis, it can be concluded that the technical risk weight value is 0.47, which accounts for the largest proportion and is the most important risk.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mostafa Kamal Hassan ◽  
Bassam Abu-Abbas ◽  
Hany Kamel

PurposeThe authors investigate the impact of disclosure tones and financial risk on the readability of annual reports in the banking sector. The authors also examine the moderating effect of banks' financial risk on the tone–readability relationship.Design/methodology/approachThis study relies on the agency theory and the social psychology theory to formulate its testable hypotheses and explain the empirical findings. It uses a sample of 390 bank-year observations from banks listed in the Gulf Cooperation Council (GCC) Stock Exchanges during the period 2014–2019. It also employs random effect regressions to analyze the data and to examine the reverse causality/endogeneity in order to obtain robust findings.FindingsThis study’s results demonstrate that easy (difficult) to read annual reports is significantly associated with positive (negative) tone. Bank managers characterized as “too positive/optimistic” and banks with higher financial risks publish less readable annual reports. The results also show that the interaction between negative tone and a bank's financial risk is inversely associated with reading difficulty, indicating that managers prepare easy text to clarify causes of their banks’ high risks, yet they communicate this easy text with a negative tone that reflects their feelings/emotions towards the financial risks of their banks.Practical implicationsThis study’s findings call for the use of a plain English text that bears a neutral tone and urge financial analysts to go beyond the financial aspects of annual reports. They also stimulate policymakers to draft policies, which ensure the presence of audit committee members who possess a broad expertise to uncover the linguistic issues embedded in the annual reports.Originality/valueTo the best of the authors' knowledge, this is the first study dedicated to exploring the tone–readability association in the GCC's banking sector.


2019 ◽  
Vol 14 (1) ◽  
pp. 73
Author(s):  
Maharani Yulisti ◽  
Tenny Apriliani ◽  
Risna Yusuf ◽  
Rismutia Hayu Deswati

Standar keamanan pangan di Indonesia telah diusulkan untuk menghadapi tantangan pasar ikan global seperti peningkatan produksi budidaya dan perjanjian perdagangan bebas. Namun, manfaat sertifikasi keamanan pangan bagi pembudidaya ikan sering diperdebatkan. Dampaknya sangat kontekstual, yang sebenarnya sangat relevan dengan sektor perikanan skala kecil yang memiliki tingkat keragaman agro ekologi dan kondisi sosial ekonomi. Ini tidak selalu dipertimbangkan dalam penelitian sebelumnya. Oleh karena itu, kajian ini menganalisis dampak adopsi organic standard terhadap produktivitas petambak udang dengan mengambil studi kasus di Kabupaten Sidoarjo. Analisis yang digunakan untuk mengetahui faktor penentu adopsi menggunakan model probit; sedangkan untuk mengukur dampak terhadap outcome budidaya udang digunakan model endogenous switching regression. Hasil analisis probit menunjukkan bahwa standar organik tampaknya lebih banyak diterapkan pada pembudidaya yang memiliki pekerjaan di luar tambak udang dan lebih banyak memiliki pengalaman, tetapi kurang diadopsi oleh petani yang menyewa tambak, memiliki hubungan pasar dan hubungan kredit dengan pembeli mereka. Hasil analisis dampak menunjukkan bahwa rata-rata dari hasil budidaya udang tidak ditemukan perbedaan yang signifikan antara petambak yang mengadopsi standar dan yang tidak mengadopsi, sedangkan terdapat perbedaan signifikan dalam keuntungan bersih antara dua rezim. Namun, hasil analisis menunjukkan bahwa adopter memiliki hasil lebih besar pada produksi udang jika mereka tidak mengadopsi, begitu pula sebaliknya terhadap nonadopter menghasilkan produksi udang lebih kecil apabila mereka mengadopsi standard. Di sisi lain, adopter memiliki profit lebih kecil pada produksi udang jika mereka tidak mengadopsi, begitu pula sebaliknya terhadap non-adopter menghasilkan profit lebih kecil apabila mereka tidak mengadopsi standard. Determinants for Adopting Organic Standard and Their Impact on Performance of Black Tiger Shrimp FarmingFood safety standard  in Indonesia has been proposed to face global fish market challenges such as increasing aquaculture production and free trade agreements. Yet, the benefits of food safety certification for farmers has often been debated. It has context-specific impact and closely relevant to small farm sector with its large degree of agroecological and socio-economic heterogenity. This idea was not always get into consideration in previous researches. Therefore, this paper analyzes the impact of organic standard adoption on productivity of small-scale shrimp farming in Indonesia. The study used  a probit model to determine the determinants of adoption, while endogenous switching regression model was used to measure the impact on the outcome of shrimp farming. Heterogeneity is accounted for an endogenous switching regression framework. The analytical result of probit showed that organic standard is more applied to farmers who have off-farm job and experiences, but is less adopted by farmers who rent ponds, have market and credit relationship with their buyers. The result of impact analysis showed that there were no significant differences on shrimp production between those adopted the standard and those who did not, the average yield of shrimp farming was not found to be a significant   between farmers who adopted and those who did not adopt the standard, while there were significant differences on net profit between the two regimes. However, the analysis found that adopters had higher results on shrimp production if they do not adopt standard, and nonadopters had less shrimp production if they adopt the standard. On the other hand, adopters have smaller profit on shrimp production if they do not adopt the standard, and non-adopters made smaller profits if they do not adopt the standard. 


2014 ◽  
Vol 1 (6) ◽  
pp. 41
Author(s):  
Biruta Garanča

There has been calculated and analysed the profitability of the branches of economy and the basic activity of Latgale in comparison with that of Latvia during the period of time from 2006 to 2012. The impact of the profitability of the economic and the basic activity has been calculated by applying the author’s worked out methodology. There have been calculated and analysed the profitability variation quotients of the branches of economy and the basic activity, which characterize the financial risk. The advantages of the branches in Latgale have been stated by combining the analysis of profitability and the financial risks.


2022 ◽  
Vol 12 ◽  
Author(s):  
Xiao Liang ◽  
Ying Yang ◽  
Wenxi Ruan ◽  
Ji Liu ◽  
Bo Zhang ◽  
...  

Entrepreneurship plays an important role in the development of national economy. The study aims to accelerate the construction of social and economic structure by improving the success rate of new entrepreneurs in the process of innovation and entrepreneurship. First, the related theories of financial risk prediction are introduced, and entrepreneurial psychological status and the psychological states on entrepreneurship are analyzed. Second, the current situation of entrepreneurial psychology of new entrepreneurs is analyzed through a questionnaire survey and model test. The results show that private enterprises account for the largest proportion, with a percentage of 58.14% of 125. In total, 32 Chinese-foreign joint ventures rank second and account for 14.88% of the total, and the scale of each type of enterprises accounts for 25%, respectively. The operating years of enterprises are mainly between 10 and 20 years. Among the enterprises surveyed, the significant level of entrepreneurial psychology and entrepreneurial opportunity of entrepreneurs is p = 0.000–0.01. It indicates that males’ psychological adjustment ability and entrepreneurial ability in the entrepreneurial process are higher than females’, and their entrepreneurial psychological states and entrepreneurial ability will improve with the growth of age, education levels, and positions. It is concluded that entrepreneurial psychological capital and entrepreneurial opportunity are significantly positively correlated with financial risk expectation. The research results prove the impact of financial risks on the entrepreneurial psychology of new entrepreneurs, and provide a reference for new entrepreneurs in predicting financial risks.


Sign in / Sign up

Export Citation Format

Share Document