scholarly journals ХЕДЖУВАННЯ ЕКОЛОГІЧНИХ РИЗИКІВ ПІДПРИЄМНИЦЬКОЇ ДІЯЛЬНОСТІ: МІЖНАРОДНА ПРАКТИКА

2020 ◽  
pp. 30-36
Author(s):  
Череп А.В. ◽  
Каткова Н.В.
Keyword(s):  
Management Strategies ◽  
Weather Conditions ◽  
Environmental Risks ◽  
Exchange Traded Funds ◽  
Financial Instruments ◽  
Weather Derivatives ◽  
Degree Days ◽  
Forward Contracts ◽  
Investment Funds ◽  
Futures And Options

The article discusses hedging tools and insurance of environmental risks used in international practice. It was noted that so-called environmental derivatives are used as financial instruments for hedging environmental risks. Environmental derivatives are financial instruments that can be used by organizations or individuals to reduce the risk of adverse and unforeseen weather conditions or environmental catastrophes (in particular, weather derivatives, carbon credits and greenhouse gases emissions quotas, as well as futures and options for them, exchange trade funds based on ESG indicators, including environmental, social and management strategies). The main types of weather and carbon derivatives, as well as ways to trade them are considered. Thus, weather derivatives are usually based on an index that measures a certain weather aspect: cooling degree days, heating degree days, snowfall, snow depth, wind speed or chill level. Weather options and futures for trading (call) and put (put) are traded on exchanges, and on the over-thecounter markets (OTC) weather derivatives take various forms - from swaps to forward contracts. Carbon financial instruments include such as tradable pollution permits and credits, green trade, carbon derivatives, natural securities, carbon investment funds. The following carbon assets are traded on the EU spot carbon market: EU quotas, EU aviation quotas, certified emission reductionunits, emission reduction units. There are primary and secondary markets for carbon assets, as well as a market for derivatives — futures and options for quotas. Index exchange traded funds (ETFs), which are formed on the basis of ESG indicators (environmental, social and management strategies), are also considered as a tool for hedging environmental risks. Environmental, social and management strategies are increasingly popular in the indexing and ETF industries as investors seek to apply social values to investment portfolios.

Risk Management Strategies Adopted by Small-Scale Vegetable Farmers in Thaba Chweu Local Municipality, Mpumalanga Province, South Africa

2020 ◽  
Vol 55 (1) ◽  
Author(s):  
Jenny Mokhaukhau
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Weather Conditions ◽  
Small Scale ◽  
Snowball Sampling ◽  
Forward Contracts ◽  
Vegetable Farmers ◽  
Risk Management Strategies ◽  
Local Municipality ◽  
Sampling Procedures

Agriculture is one of the sectors considered to be an extremely risky business. This has led to many farmers adopting different risk management strategies in order to deal with the prevailing risks. The objectives of the study were to identify the types of risk and risk management strategies; and to determine the level of risk management strategies adopted by small-scale vegetable farmers in Thaba Chweu Local Municipality. Descriptive statistics and the adoption index were employed to address these objectives. Purposive and snowball sampling procedures were used to select 40 small-scale vegetable farmers in Thaba Chweu Local Municipality. The study identified pest attacks and unfavorable weather conditions as the major risks faced by small scale vegetable farmers in the study area. Furthermore, the study revealed that majority of these farmers use pesticides, forward contracts and crop rotation as the risk management strategies.

scholarly journals APPLICATION OF AIR DERIVATIVE FINANCIAL INSTRUMENTS IN LITHUANIAN ECONOMY

2020 ◽  
Vol 12 (0) ◽  
pp. 1-9
Author(s):  
Ernesta Latvytė ◽  
Raimonda Martinkutė-Kaulienė
Keyword(s):  
Weather Conditions ◽  
Assessment Methods ◽  
Financial Instruments ◽  
Weather Derivatives ◽  
Adverse Weather Conditions ◽  
Adverse Weather ◽  
Derivative Instruments

The paper explores the concept of weather derivatives: what it is, what its features are, and in what areas they can be applied. It has been established that there can be several types of weather derivative instruments – options and swaps. The use of weather derivatives has also been found to be very broad and attractive for tourism, construction, agriculture and heating companies. Companies operating in Lithuania do not use weather derivatives, although they do provide insurance against the risks associated with adverse weather conditions. The paper is conducting a study to determine which heating companies should apply weather derivatives to improve their performance. The study is conducted using multi-criteria assessment methods – SAW and TOPSIS. The multi-criteria assessment showed that AB Šiaulių energija and UAB Varėnos šiluma could use the opportunity to apply weather derivatives in their activities.

scholarly journals The effectiveness of capital management strategies used by the investment funds in Poland

2014 ◽  
Vol 15 (2) ◽  
pp. 119-129
Author(s):  
Paweł Trippner
Keyword(s):  
Financial Market ◽  
Financial Intermediation ◽  
Management Strategies ◽  
Financial System ◽  
The State ◽  
Financial Intermediaries ◽  
Investment Strategies ◽  
Capital Management ◽  
Investment Funds ◽  
Location Policy

Abstract Collective investors play an extremely important role in the financial system of the state and in the economy. They operate in the financial market as institutions that enable households and businesses to convert savings into investments. Investment funds are the most conventional institutions which are dealing with financial intermediation. The main purpose of the submitted paper is to characterise the essence of investment funds operation in the role as financial intermediaries, to present the investment strategies and to characterise the methodology for measuring the effectiveness of capital management entrusted by the clients. The author has formulated a research hypothesis, according to which, the strategies of capital location policy used by the investment funds have an impact on the level of their performance, while funds holding higher risk portfolios perform better compared to the funds using passive investment strategies

scholarly journals A Methodical Approach to Design and Valuation of Weather Derivatives in Agriculture

2013 ◽  
Vol 2013 ◽  
pp. 1-8 ◽  
Author(s):  
Jindrich Spicka ◽  
Jiri Hnilica
Keyword(s):  
Risk Management ◽  
Low Income ◽  
Crop Yields ◽  
Option Price ◽  
Interdisciplinary Approach ◽  
Weather Conditions ◽  
Low Income Countries ◽  
Management Tool ◽  
Weather Derivatives ◽  
Methodical Approach

The paper deals with weather derivatives as the potentially effective risk management tool for agricultural enterprises seeking to mitigate their income exposure to variations in weather conditions. Design and valuation of the weather derivatives is an interdisciplinary approach covering agrometeorology, statistics, mathematical modeling, and financial and risk management. This paper first offers an overview of data sources and then methods of design and valuation of weather derivatives at the regional level. The accompanied case study focuses on cultivation of cereals (wheat and barley) in the Czech Republic. However, its generalizability is straightforward. The analysis of key growing phases of cereals is based on regression analysis using weather indices as the independent variables and crop yields as dependent variables. With the bootstrap tool, the burn analysis is considered as useful tool for estimating uncertainty about the payoff, option price, and statistics of probability distribution of revenues. The results show that the spatial and production basis risks reduce the efficiency of the weather derivatives. Finally, the potential for expansion of weather derivatives remains in the low income countries of Africa and Asia with systemic weather risk.

Uncharted waters: Investors get access to foreign exchange-traded funds

2021 ◽  
pp. 54-70
Author(s):  
S. R. Moiseev
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Driving Forces ◽  
Market Competition ◽  
Secondary Market ◽  
Portfolio Diversification ◽  
Exchange Traded Funds ◽  
Investment Funds ◽  
Retail Investors ◽  
Securities Trading

In 2022, Russian investors will get access to the wide possibilities of the global financial market. The Bank of Russia opens the market for foreign exchange-traded funds (ETFs) — one of the main savings instruments for households. The economy of ETFs differs from other investment funds, whose shares do not have secondary market. The opening of the ETFs market is intended to solve a number of issues for retail investors: moving away from the preference to individual foreign shares towards portfolio diversification, cost reduction, ensuring sustainable profitability, abandoning the aggressive securities trading, and supporting market competition. Soon, ETFs will be one of the driving forces in financial markets. However, their rapid growth is fraught with little-studied effects.

scholarly journals Exchange-traded products in Germany: development and substitution of exchange-traded funds, exchange-traded commodities and exchange-traded notes

Equilibrium ◽  
2018 ◽  
Vol 13 (4) ◽  
pp. 643-665
Author(s):  
Adam Marszk
Keyword(s):  
Value Added ◽  
Stock Exchanges ◽  
Exchange Traded Funds ◽  
Investment Funds ◽  
Market Shares ◽  
Time Period ◽  
Fast Development ◽  
Exchange Traded Notes ◽  
Insight Into ◽  
Total Market

Research background: Exchange-traded products (ETPs) are one of the most rapidly growing categories of financial products. Their fast development has been boosted by innovative features. Three main categories of ETPs are exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and exchange-traded notes (ETNs). ETCs and ETNs remain least known, even though their number on some stock exchanges is high. In Europe, Germany is one of the largest and most active ETPs markets. ETCs and ETNs are debt instruments, in contrast with the most popular ETFs, which are equity securities. Therefore, they offer investors different advantages, but also expose them to other types of risks. Purpose of the article: The key aim of the article is to present the features of ETPs and to provide in-depth insight into the issues linked with the development of ETPs market in Germany, with the special emphasis on the ETCs and ETNs. Methods: In the main empirical part of the article, German ETPs market is analyzed using descriptive statistics and technological substitution framework (employed for the analysis of innovations in order to evaluate the changing market shares of, first, ETFs versus ETCs and ETNs, as well as, second, ETFs versus other types of investment funds). The period of the analysis is 2010–2016 in the former case and 2007–2016 in the latter. Findings & Value added: Share of ETPs other than ETFs in the total market in Germany remains low. Even though the market position of the leading products, i.e. ETFs, is still very strong, some substitution has been observed, especially after 2015. Predictions indicate that this trend will continue in the upcoming years. The results of the analysis of the investment funds’ market confirm the substitution between ETFs and traditional investment funds over 2007–2017, in particular in the first years of this time period.

Consistent patterns of maturity and density-dependent growth among populations of walleye (Sander vitreus): application of the growing degree-day metric

2010 ◽  
Vol 67 (7) ◽  
pp. 1057-1067 ◽  
Author(s):  
Paul A. Venturelli ◽  
Nigel P. Lester ◽  
Terry R. Marshall ◽  
Brian J. Shuter
Keyword(s):  
Growth Rate ◽  
Explanatory Power ◽  
Management Strategies ◽  
Fold Increase ◽  
Fish Growth ◽  
Growing Degree Days ◽  
Sander Vitreus ◽  
Degree Days ◽  
Regional Management ◽  
Dependent Growth

Growing degree-days (GDD, °C·days) are an index of ambient thermal energy that relates directly to an ectotherm’s cumulative metabolism but is rarely used to describe growth and development in fish. We applied GDD to length and maturity data from 416 populations of walleye ( Sander vitreus ) from Ontario and Quebec, Canada (mean annual GDD = 1200 to 2300 °C·days). On average, males matured after they had experienced 6900 °C·days and reached 350 mm total length (L) (n = 77 populations), and females matured after 10 000 °C·days and at 450 mm L (n = 70). Across 143 populations, GDD accounted for up to 96% of the variation in the length of immature walleye but also revealed a twofold difference in growth rate that was indicative of variation in food availability. When applied to data from eight populations in which walleye abundances have changed dramatically over time, GDD revealed a 1.3-fold increase in immature growth rate when abundance was low compared with when it was high. Our results both demonstrate the explanatory power of GDD with respect to fish growth and maturity and inform the development of regional management strategies for walleye.

Strategically Informed, Environmentally Conscious Information Requirements for Accounting Information Systems

2005 ◽  
Vol 19 (2) ◽  
pp. 79-103 ◽  
Author(s):  
Darrell L. Brown ◽  
Jesse F. Dillard ◽  
R. Scott Marshall
Keyword(s):  
Information Systems ◽  
Management Strategies ◽  
Information Matrix ◽  
Accounting Information ◽  
Environmental Issues ◽  
Environmental Risks ◽  
Environmentally Conscious ◽  
Business World ◽  
Accounting Information Systems ◽  
Environmental Requirements

Accounting information systems (AIS) should provide the information firms need to manage organizational activities. Environmental considerations are increasingly important in the business world, so firms are attending more to environmental risks and activities. AIS must respond to these emerging environmental requirements. We develop an information matrix for identifying alternative management strategies for framing and responding to environmental issues. The proposed matrix provides a tool for identifying the information collected, stored, analyzed, and reported in environmentally attuned accounting information systems.

scholarly journals Weather derivatives and hedging the weather risks

2014 ◽  
Vol 60 (No. 7) ◽  
pp. 309-313 ◽  
Author(s):  
J. Taušer ◽  
R. Čajka
Keyword(s):  
Weather Conditions ◽  
Business Case ◽  
Main Issue ◽  
Weather Derivatives ◽  
Advantages And Disadvantages ◽  
Financial Products ◽  
Hedging Effectiveness ◽  
Weather Risks

The article focuses on weather derivatives with the aim to present the substance of weather derivatives as relatively new financial products and to discuss their advantages and disadvantages when being used as a tool to diminish the loses coming from these suboptimal weather conditions. We conclude with the findings that weather derivatives have a great potential to develop further. They provide an opportunity to hedge against the suboptimal weather conditions at reasonable costs. However, the hedging effectiveness is the main issue to be analyzed in each specific business case.  

The Risk of Reverse Convertible Bonds: German Capital Market Law and Investor Protection

2002 ◽  
Vol 3 (12) ◽  
Author(s):  
Sung-Kee Kim ◽  
Peer Zumbansen
Keyword(s):  
Capital Market ◽  
National Policy ◽  
Federal Court ◽  
Convertible Bonds ◽  
Financial Instruments ◽  
Investment Funds ◽  
Legal Rules ◽  
German Capital ◽  
Federal Court Of Justice ◽  
Investment And Financing

In times of a continuously expanding proliferation of investment and financing possibilities in the hands of banks, investment funds and individual capital investors, particular attention should be paid to the effects that new financial instruments are likely to have not only on concrete financing and investing modes but also on the further development of legal rules in this field. As the German capital market has been considered unable - at least until the widely marketed Deutsche Telekom IPO - to get rid of its persisting prejudice of being structurally lagging behind other countries’ systems, the legal treatment of emerging financial instruments deserves greatest attention. The rocket science of new financial instruments challenges law's aim to rightly assess the real quality of these instruments and to strike an adequate balance between the interests involved against a national policy background and EU demands. While the past few years have been a time of great legislative activity in the field of company and capital market law in Germany, only a closer look at court decisions reveals the true pressure resulting from a fast moving capital market on traditional legal perceptions. The so-called Aktienanleihe-Decision by the Federal Court of Justice, [FCJ] (Bundesgerichtshof - BGH) of 12 March 2002 marks an important step in the ongoing process of Germany's developing capital market law.

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