Limiting too-big-to-fail: market reactions to policy announcements and actions

Banks considered too-big-to-fail (TBTF) tend to benefit from funding cost advantages as their debt is considered implicitly guaranteed by public authorities, even if the latter have undertaken substantial effort to limit TBTF. This paper focuses on the changes in related market perceptions in response to bank regulatory and resolution reform announcements as well as actual failure resolution actions. It analyses how premia on risky bank debt have reacted to such events, using data for senior and subordinated debt CDS quotes for 45 European banks from January 2007 to May 2020. The empirical results are consistent with progress being made in reducing the value of implicit bank debt guarantees, especially on subordinated bank liabilities. Some earlier bank failure resolution actions appeared to significantly raise risk premia, although more recent failure resolution cases either had no effect on risk premia or moved them in the opposite direction. Several of these events consisted of no-action, that is, in particular, they did not entail any bail-in. As opposed to resolution actions, the reactions of risk premia to policy and regulatory announcements are more difficult to explain and no clear pattern seems to be emerging, confirming the view that action speaks louder than words.

NILAI PERUSAHAAN PADA PERUSAHAAN BADAN USAHA MILIK NEGARA (BUMN) : KAJIAN SISTEMATIS

The value of the company has an important role in describing the level of public trust in a company. The purpose of this literature review is to determine the factors that affect the value of BUMN companies and how to solve them. A systematic study was carried out using a Systematic Literature Review approach in journals published from 2016 to 2020 which concluded that the value of BUMN companies in Indonesia was still low in their management capabilities. The causes of the low value of BUMN companies include 1) BUMN companies that do not pay attention to the components of intellectual capital they have, 2) excessive debt 3) Weak implementation of GCG 4) the occurrence of deviations by BUMN directors and 5) exposure and other risks. The solution to overcome this problem is that state-owned companies must create a competitive advantage so that market perceptions will increase and the company can survive in a dynamic business environment. How: 1) By utilizing all potential resources, namely human capital, physical capital, and structural capital to generate added value. 2) managing as efficiently and effectively as possible in order to generate profits as expected by investors and 3) making specific GCG practice guidelines for SOEs and 4) implementing debt policies, hedging and risk management such as financial risks, market risks and business risks . That way the company is not burdened by the weakening of the rupiah exchange rate against debt risk and is able to manage foreign currency assets. Keywords: Systematic Literature Review; Value of BUMN Companies

Market Perceptions of Fair Value Reporting for Tangible Assets

This article examines equity market perceptions of fair value reporting for tangible assets. We identify six events—four designated as increasing, two as decreasing—affecting the likelihood of U.S. adoption of fair value reporting for investment property (i.e., real estate) assets, one of the largest asset classes in the world. Fair value adoption in the United States would facilitate convergence of one of the widest remaining disparities between U.S. reporting and International Financial Reporting Standards (IFRS): accounting for tangible investment property assets, where the United States (IFRS) requires depreciated historical cost (recognized or disclosed fair values). Using a sample of U.S. investment property firms, we document an average positive market reaction for movement toward fair value reporting. We further find predictable cross-sectional variation, with the market reaction increasing for firms with greater commitment to high-quality reporting, greater investor demand for fair values, higher financial risk, and staler asset values. Overall, the results are consistent with U.S. equity markets perceiving net benefits to movement toward a fair value reporting approach for this asset class.

Recognizing Determinants to Smallholders’ Market Orientation and Marketing Arrangements: Building on a Case of Dairy Farming in Rural Kenya

Smallholder commercialization is central to international development policy and practice. As a result, several arrangements to foster market linkages are being implemented. Especially popular are farmers’ organizations, which are believed to be owned, controlled, and financed by smallholders. As such, their design is considered inclusive given every household in a community is theoretically allowed to become a member, and the governance and management structure encourage participatory decision-making. However, even in the context in which farmers’ organizations are actively promoted, a notable proportion of smallholders may not be able to engage in market-oriented production or may opt for the existing alternative marketing arrangements, as dictated by individual households’ socioeconomic characteristics. Focusing on the case of smallholder farming in Olenguruone, Nakuru county, Kenya, where a donor funded dairy farmers’ cooperative marketing arrangement is promoted alongside existing marketing opportunities, the present research investigated the factors that determine smallholders’ commercial farming orientation and marketing arrangements. It employed a case study approach, combining both quantitative and qualitative research methods for a more complete empirical inquiry. The findings demonstrate that irrespective of the external support provided through marketing opportunities such as farmer organizations, smallholders’ engagement in commercial farming and marketing is dictated by the socioeconomic attributes and market perceptions that are heterogeneous among households in a smallholder community.

Construction Work Health and Safety Management Using Building Information Modelling

The high rates of fatalities and injuries in the construction industry highlight the importance of work health and safety (WHS). Building information modelling (BIM) could significantly improve WHS management in construction, but integration has been limited. The chapter explores the application of BIM for WHS management and the rationale for market leaders' role to catalyse a BIM-enabled WHS management ecosystem through procurement strategies and tendering proficiency. An international comparative analysis of BIM WHS is presented along with a BIM drivers and barriers critique, including a clustering into seven areas of market, perceptions and attitudes, leadership, supply chain integration and collaborative practice, procurement strategies and tendering proficiency, decision tools, and technical functionality. A focussed decision framework is outlined. The findings provide insights for researchers and practitioners to understand how a BIM-enabled WHS management system can be facilitated and supported through the project lifecycle.

Percepciones en el mercado laboral: dos caras de una misma moneda / Labor market perceptions: two sides of the same coin

El acuerdo de paz en Colombia trae consigo retos a nivel socio-económico asociados a la reintegración social de los individuos involucrados. En este sentido, entidades como el Servicio Nacional de Aprendizaje adoptan un rol importante desde la formación para el trabajo y a su vez el apoyo para lograr una vinculación laboral. Este artículo tiene como objetivo comprender y analizar las percepciones del mercado laboral del municipio de Cali, desde dos perspectivas principales: empleadores y buscadores de empleo. Encontramos que los empleadores tienen una percepción baja sobre la sostenibilidad del acuerdo de paz y el rol del estado en este proceso, lo cual es clave en la implementación de políticas empresariales inclusivas. Por otro lado, las percepciones sobre las expectativas laborales, en general, son más bajas hacía los excombatientes. Sin embargo, observamos que las víctimas tienen una percepción pesimista que está por debajo de la media de las percepciones encontrados en el estudio. The peace agreement in Colombia brings with it socioeconomics challenges associated with the social reintegration of the individuals involved. In this sense, entities such as the "Servicio Nacional de Aprendizaje" (SENA) adopt a significant role from training for work and in turn support to achieve a work link. This article aims to understand and analyze the perceptions of the labor market from two main perspectives: employers and job seekers. It was found that employers have a low perception of the sustainability of the peace agreement and the role of the state in this process, which is key in the implementation of inclusive business policies. On the other hand, perceptions about labor expectations are lower towards ex-combatants. However, it was observed that victims have a pessimistic perception that is below this average.