Asset and investment valuation Research Papers (original) (raw)
TOPIC: REASONS ACCOUNTING FOR THE INCREASE IN THE PRODUCTION OF READY TO WEAR GARMENTS IN GHANA ABSTRACT This paper examined the role of perception, personality and price on consumer preference for “ready to wear” garments as well... more
This study has 4 contributions to the literature. First, the authors analyze the risk characteristics for 11 Relative Value hedge fund strategies. Second, the authors introduce 3 families of behavioral factors, the D family, the L family,... more
This study has 4 contributions to the literature. First, the authors analyze the risk characteristics for 11 Relative Value hedge fund strategies. Second, the authors introduce 3 families of behavioral factors, the D family, the L family, and the R family. In contrast to previous hedge fund studies, these new factors assume investors use historical and behavioral data such as average drawdown, run-up, and liquidity from each hedge fund category to assess the risk. Third, additional macroeconomic variables, such as the CRB, Copper, and Oil are found to be statistically significant in some strategies. This economic and historical information, when included with asset pricing models, is more powerful in explaining hedge fund returns than previous models. Fourth, unlike the previous literature, these generated models are corrected for time-series assumption violations and heteroskedasticity. To more fully understand the timing of risks and returns associated with investing in relative v...
This conference paper proposes a new type of art investment platform. The unified decentralized platform aims to solve the problem of collapse and stagnation on the art market, art investment, and creative industry in general. The project... more
This conference paper proposes a new type of art investment platform. The unified decentralized platform aims to solve the problem of collapse and stagnation on the art market, art investment, and creative industry in general. The project is aimed at all the main parties in the art business and it is using blockchain technology and tokenization. The paper summarizes the situation on the market and describes the resolution to the problem.
In order to test the moderating role of corporate strategy and industry environment in the effect of liquidity on investment for Portuguese manufacturing firms, we developed a multiple linear regression model for panel data. It is a... more
In order to test the moderating role of corporate strategy and industry environment in the effect of liquidity on investment for Portuguese manufacturing firms, we developed a multiple linear regression model for panel data. It is a static model with three types of variables: financial; strategic/environmental; and interactive. The estimated model was validated through the Breusch-Pagan/Cook-Weisberg and Wald Modified tests (heteroscedasticity tests), Lagrange Multiplier (industry random effects test, using the two-digit National Classification of Economic Activities), Hausman robust test (fixed effects model vs. random effects model test) and likelihood-ratio test (joint effect of industry and time test). The statistical processing of the data revealed that a company’s strategy (diversification and innovation) and the industry environment (growth) moderate the effect of liquidity on investment, which can be explained by the effect of these factors on the cost of asymmetric informat...
The following ratio analysis will look at the financial performance of American Eagle Outfitters (AEO), Inc. and Urban Outfitters (UO), Inc. Both companies compete within the retail family clothing stores industry and have domestic... more
The following ratio analysis will look at the financial performance of American Eagle Outfitters (AEO), Inc. and Urban Outfitters (UO), Inc. Both companies compete within the retail family clothing stores industry and have domestic and foreign operations.
AEO opened its first store in the United States (US) in 1977 and as of December 31, 2008 is operating in 1,098 stores and also operates e-commerce sites under AEO Direct. AEO has 37,500 employees who work under the name American Eagle Outfitters, and wholly-owned subsidiaries, American Eagle, and AE brand names (aerie, Dormware®, AE® Martin + OSA® and 77kids™), (Libby, Libby, & Short, 2011, pp. B-2 – B-3)
UO was founded in 1970 as a predecessor partnership and later “incorporated in the Commonwealth of Pennsylvania in 1976….The company’s principle business is the operation of a general consumer product retail and wholesale business selling to customers through various channels including retail stores, three catalogs, and four web sites” (Libby et al, 2011, p. C-7). As of January 31, 2009, the company operated out of 294 stores and “in addition, the company’s wholesale segment sold and distributed apparel to approximately 1,800 better specialty retailers worldwide” (Libby et al, 2011, p. C-7).
Investors are forever in need of an asset that adds value to the portfolio. Therefore, along with fixed income investments, stocks, gold and other assets are inevitable parts of a balanced portfolio. For Indian investors, gold is not only... more
Investors are forever in need of an asset that adds value to the portfolio. Therefore, along with fixed income investments, stocks, gold and other assets are inevitable parts of a balanced portfolio. For Indian investors, gold is not only an investment asset but a commodity with a major importance in the social customs that makes it all the more interesting to study. As an investment asset, it is considered a diversifier asset and a hedging asset. Not only that, it is called a ‘safe-haven’ asset for times of economic distress, meaning that it retains its value when the stock market is giving low or negative returns. In this paper, we analyze the risk-return parameters of both the gold and Sensex for a period from 1992 to 2017 and find out how they perform along with each other. We also do detailed subperiod analysis in terms of Pearson’s correlation coefficient and see how it changes in pre-recession and post-recession period. We analyze whether gold is a diversifier asset, a hedge,...
The main contribution of the paper is to present hard evidence on risk exposure, hedging strategies, and agency problems resulting in speculation with derivatives, by focusing on the case of Aracruz Celulose. It highlights the failure of... more
The main contribution of the paper is to present hard evidence on risk exposure, hedging strategies, and agency problems resulting in speculation with derivatives, by focusing on the case of Aracruz Celulose. It highlights the failure of risk management systems in non-financial firms in the face of extreme events like the financial crisis of 2008. The company posted financial losses of U$2.1 billion due to currency derivatives trading in the third quarter of 2008. We show how the company‟s real hedge position deviated from its optimal hedge as a result of the speculation with OTC derivatives, permitted by weak governance structures that failed in preventing hubris and mistakes in risk management.
step by step explanation of guidelines to investments, and invsting.
Performance assessment is key to business management in any industry sector as it helps organizations to control, compare and even correct their performance. This paper proposes a model to evaluate the Argentine insurance sector,... more
Performance assessment is key to business management in any industry sector as it helps organizations to control, compare and even correct their performance. This paper proposes a model to evaluate the Argentine insurance sector, analyzing efficiency and relative productivity during the 2002-2011 period, using an efficient frontier technique known as Data Envelopment Analysis and the Malmquist Index. The results indicate that the market has not improved its productivity over the last ten years. One of the causes is attributed to the technological decline suffered in the period. Companies needed more resources to keep up their production, they have not invested in pursuit of improving their administrative and technological practices, or investments have not brought an increase in the volume of negotiated premiums.
Valores extrínsecos y valores intrínsecos, una aproximación.
- by German Roberto Díaz Carvajal-Profesor de Fundamentales de la Valuación de Bienes Tangibles e Intangibles. Herramienta de Orientación/Formación/Investigación Autónoma y Académica. Uso Exclusivo con Grupos de Estudio Cerrados. Autora(e)s indicada(o)s.
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- Real Estate, Arquitetura, Valuation, Asset and investment valuation
Research based on the returns across asset classes since 1980 in India, and subsequent analysis of its impact on the various Investment Portfolios. The whole project concludes with an analysis of how each asset class (and portfolio... more
Research based on the returns across asset classes since 1980 in India, and subsequent analysis of its impact on the various Investment Portfolios. The whole project concludes with an analysis of how each asset class (and portfolio baskets) performed in each phase between 1980 and 2012.
The aim of the paper is to study the value created by foreign shareholders in Indonesia finance company industry over the period 2001-2011. We analysed the financial performance of the Japanese owned finance companies and the foreign non... more
The aim of the paper is to study the value created by foreign shareholders in Indonesia finance company industry over the period 2001-2011. We analysed the financial performance of the Japanese owned finance companies and the foreign non Japanese owned finance companies. Japanese companies are the major players in automotive industry with market share more than 90% in both 2 wheeler and 4 wheeler. Meanwhile, the automotive manufacturers and dealers are the one who provide the products of financing for finance company. We analysed 7 micro key financial ratios (profitability, efficiency, growth, firm size, liquidity, solvency and asset quality). We use non parametric Mann Whitney and parametric panel data dummy regression. The empirical results show that finance companies owned by Japanese shareholders, are better in asset allocation, more profitable, bigger in size, and higher in growth capability.
Income capitalization is a widely used in commercial property for valuation, development appraisal or for project feasibility analysis. As a decision-making tool, its technical and philosophical limitations are manifest but often... more
Income capitalization is a widely used in commercial property for valuation, development appraisal or for project feasibility analysis. As a decision-making tool, its technical and philosophical limitations are manifest but often overlooked. If bungled, capitalization, can lead to ‘white elephant’ projects, investment losses, corporate collapse. To avoid such waste, the research investigates capitalisation technical issues and philosophical conundrums. Sound capitalization practice scopes project and clarifies valuation base(s). Market comparison, risk diagnostics and analytics help render complex data to estimate yields or an appropriate discount rate. For a project feasibility analysis, supplementary salient concerns include wider strategic imperatives, indigenous land rights, stakeholder management, administrative probity and the inclusion of environmental or social spillovers.
“Multiple Spread Trading” (MST) is the multidimensional evolution of the traditional “Pair Trading”, also known as “Spread Trading”. MST is an investment strategy that does not depend on the market trend. It is based on quantitative... more
“Multiple Spread Trading” (MST) is the multidimensional evolution of the traditional “Pair Trading”, also known as “Spread Trading”.
MST is an investment strategy that does not depend on the market trend. It is based on quantitative algorithms that calculate the temporary misalignment between three or more correlated and cointegrated assets compared to their statistical relative trend, exploiting their intrinsic feature of return to “normal” values.
MST can be applied independently of the market conditions – bull, bear or sided market – and on different asset classes, such as futures, Forex, stocks or ETFs.
Due to its peculiarities, MST is an extremely protected approach from the market risks, and it is profitable, as many practical cases demonstrate.
The Impact of dividend decision on the share price volatility in the Indian Stock Market is the subject matter of this study. Using the correlation analysis and the least square multiple regression methods, the study found only 32% of the... more
The Impact of dividend decision on the share price volatility in the Indian Stock Market is the subject matter of this study. Using the correlation analysis and the least square multiple regression methods, the study found only 32% of the changes in the share prices are explained by Dividend Yield, Dividend Payout Ratio, Investment growth, Size of the Firm, Leverage, and Earnings Volatility.
The role of investment, in particularly foreign direct investment (FDI), is regarded as one of the most important contributors of economic growth. The past quarter century has witnessed remarkable growth in FDIs flow all over the world.... more
The role of investment, in particularly foreign direct investment (FDI), is regarded as one of the most important contributors of economic growth. The past quarter century has witnessed remarkable growth in FDIs flow all over the world. This is due to the fact that many countries, especially developing countries, see FDI as an important element in their overall strategy for economic development. This paper provides a review of the economic impact of FDI, with specific focus on developing countries particularly Kosovo and ex-Yugoslavian countries in the Balkan Peninsula. FDIs contribute to the economic development of host country in two main ways. They include the augmentation of domestic capital and the enhancement of efficiency through the transfer of new technology, marketing and managerial skills, innovation, and best practices. Secondly, FDI has both benefits and costs, and its impact is determined by the country's specific conditions in general and the policy environment in particular. This is in terms of the ability to diversify, the level of absorption capacity, targeting of FDI, and the various opportunities for linkages between FDI and domestic investment. The paper aims to clarify the main causes of failure of foreign direct investments in Kosovo and reviles the importance of indicators that majorly has an institutional nature. Neither the amount nor the effects of foreign direct investment were satisfactory. Therefore, the paper reviles that in this aspect, a wide range of actions needs to be made, which is specifically related to government institutions and the business community.
Un mejor entendimiento de los costos económicos de la degradación ambiental puede facilitar la evaluación de políticas para proteger y mejorar el ambiente y al mismo tiempo apoyar objetivos más específica en materia ambiental.
- by German Roberto Díaz Carvajal-Profesor de Fundamentales de la Valuación de Bienes Tangibles e Intangibles. Herramienta de Orientación/Formación/Investigación Autónoma y Académica. Uso Exclusivo con Grupos de Estudio Cerrados. Autora(e)s indicada(o)s.
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- Investment analysis and valuation, Valuation, Asset and investment valuation
Indian Textile industry is playing an essential role in the world after China and it is contributing growth towards GDP, employment, exchange reserves, exports, total production etc. It investigates the investment decision factors, risk,... more
Indian Textile industry is playing an essential role in the world after China and it is contributing growth towards GDP, employment, exchange reserves, exports, total production etc. It investigates the investment decision factors, risk, and growth factors of CMIE registered Indian Textile companies from the state of Tamil Nadu. The study has used regression analysis to know which investment factor is highly impacting on the financial performance and which risk factors are highly impacting on the textile finance companies. Factor analysis used to explore the growth factors of textile companies and have identified four factors from pilot study using SPSS. The study finds management outlook is the highest impact factor on the performance of textile companies from the investment factors, it also find that the competitor risk is the highest impact among the risk factors of textile companies. Further the study suggests that the companies first emphasize on utilizing the resources efficiently to improve the performance through up-gradation of new technology, make changes in the textile policy by the local government, generate quality products with less cost, focusing on sustainability in order to boost the overall efficiency.
Kaizen event is about the implementation of structured continuous improvement projects, using a dedicated cross-functional team to improve a targeted work area, process or product. Usually, it is executed within an accelerated timeframe... more
Kaizen event is about the implementation of structured continuous improvement projects, using a dedicated
cross-functional team to improve a targeted work area, process or product. Usually, it is executed within an accelerated
timeframe by applying proven process tools and human creativity with a goal of improving the overall performance. Thus,
this paper is to show the enhancement a company has experienced with the implementation of kaizen events in one of its
production areas. The main aim is to share how assessment methodologies were systematically conducted on the areas that
should be empirically measured and evaluated in order to maximize the impact of kaizen events on the overall performance.
All the measurements, techniques, and methods were described clearly, thus underlining its potential benefits and pitfalls.
The case proposed refers to a manufacturing components company for the automotive industry in Malaysia. This case
study evaluates one particular event of many events done by the company every day. Through performance analysis,
results were measured and analysed by comparing the lean metrics such as productivity, quality, and space, cycle time and
setup time reduction between the existing against the improved area. Findings show that the company managed to reduce
its operational cost and production lead time significantly. As for the assessment of the cost saving analysis, a total of RM
31,661.22 per year of saving is targeted to be achieved through the long-term commitment from the kaizen team and also
top management. On the other hand, the economic analysis shows that the investment made for this event is viable and less
risk to be implemented in other production areas or other manufacturing disciplines.
Karst landscapes cover 15% of the earth’s topography with an estimated 1.5 billion inhabitants residing on the land. Therefore restricting land uses and preventing infrastructure developments on dolomite land may be deemed highly... more
Karst landscapes cover 15% of the earth’s topography with an
estimated 1.5 billion inhabitants residing on the land. Therefore restricting land uses
and preventing infrastructure developments on dolomite land may be deemed highly
impractical. As a result, infrastructure restrictions in karst areas have encouraged
geotechnical professionals into developing geological models to simulate the
magnitude of catastrophic subsidence experienced due to dolomite sinkholes.
Sinkholes in dolomite are triggered by the alteration of the existing groundwater
level within the karstic strata. In this study, the appraisal of sinkhole propagation was
facilitated with the geological data acquired along the Gautrain route through
Centurion, South Africa. This paper presents the conceptualized ‘angle of draw’ of
dolomite overburden layers into cavities, with Terzaghi’s arching in soil equation.
The analytical results illustrated constant vertical drawdown in the weathered altered
dolomite (WAD) and incremental cavity propagation in the frictional chert residuum.
The sinkhole propagation results replicated previous physical modelling and
empirical findings. This idealized analogy of sinkhole propagation compliments the
quantitative assessment of empirical data, limit analysis and expert judgement
applied to estimate dolomite sinkhole hazards.
Investment funds first appeared in the Netherlands in the late 18th century for the purpose of financing trade expeditions. The first modern fund was established in the United States, Massachusetts in 1924, in his first year of formation... more
Investment funds first appeared in the Netherlands in the late 18th century for the purpose of financing trade expeditions. The first modern fund was established in the United States, Massachusetts in 1924, in his first year of formation increased by 50,000 to 392,000 US dollars.
For Mark Tompkins of Montrose Capital is obvious that the time of investment funds in the country is yet to come. Trust is basically divided into indoor and outdoor (mutual funds) and private funds (hedge funds). According to the number and importance to have the dominant open funds. Private funds like Mark Tompkins Montrose Capital INC however, came twenty years later, also in the United States. After their features, these vary from open on the possibility to sell shares on the stock market (which is not allowed in the open funds) and thus effectively reduce the risk of existing positions (hedging), hence the name Hegde Fund. This feature is extremely important for Montrose Capital because in terms of a general decline in share prices on the stock exchange, private funds can still make profit (selling higher level and closing short positions at a lower price). The growth of Mark Tompkins Montrose Capital in recent times is accompanied by enormous growth in funds under management because of the exceptional techniques for hedging and introducing innovations in financial intermediation. Because these features are said hedge funds are able to generate alpha refund, which is an exercise over a benchmark such as yield annually the index S & P, and is due exclusively to the ability of Montrose Capital portfolio managers to create unique portfolios and strategies .
Alternativas de valuación desarrolladas por dos profesores de la Universidad Politécnica de Valencia. España.
- by German Roberto Díaz Carvajal-Profesor de Fundamentales de la Valuación de Bienes Tangibles e Intangibles. Herramienta de Orientación/Formación/Investigación Autónoma y Académica. Uso Exclusivo con Grupos de Estudio Cerrados. Autora(e)s indicada(o)s.
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- Securities Valuation, Valuation, Asset and investment valuation
The stakeholder management concept has increasingly become more prominent in the project and portfolio literature in recent years. While the need to work effectively with stakeholders have been identified, it remains a continuing... more
The stakeholder management concept has increasingly become more prominent in the project and portfolio literature in recent years. While the need to work effectively with stakeholders have been identified, it remains a continuing challenge for portfolio governance network to identify appropriate stakeholders, to determine when and how to engage with them and to effectively manage and coordinate policies and relationships to achieve expected results and derive portfolio value. This paper considers the definition, identification and classification of portfolio stakeholders. Then the salience of stakeholders and how various combinations of salience are linked to stakeholder engagement activities will be examined. As a classification system three variables: power, urgency, legitimacy are aggregated into the construct of portfolio stakeholder salience.
Overview Transport is the number-one source of air pollution in cities, causing serious problems to human health, the economy, climate and the environment. Current approaches to reducing transport emissions have not led to the desired... more
Overview Transport is the number-one source of air pollution in cities, causing serious problems to human health, the economy, climate and the environment. Current approaches to reducing transport emissions have not led to the desired results, leaving city regulators with challenges of protecting the health and wellbeing of their residents. The Air Quality & Transport (AQT) Green Bond provides public authorities and investors with exciting opportunities to capitalize on clean transport projects that monitor, manage and reduce emissions. Returns on investment are maximized through economic benefits of improved public health and economic productivity, climate change mitigation and reduced public expenditure on transport-related externalities. The AQT Bond is particularly suitable for cities wanting to take global leadership on air quality management and climate change mitigation, providing win-win-win solutions that benefits people, the economy, climate and the environment
The paper aims to explore the potential for outperformance of the enhanced index fund constructed using a multifactor model that has been widely used by practitioners. By presenting an empirical implementation of the factor model to... more
The paper aims to explore the potential for outperformance of the enhanced
index fund constructed using a multifactor model that has been widely used by practitioners.
By presenting an empirical implementation of the factor model to construct the enhanced
index fund based on the component stocks of the Shanghai Stock Exchange 50 (SSE50)
index, the paper also identifies significant factors to explain excess return on securities
in the Chinese market. By introducing an ad hoc weight-allocating approach, the paper
constructs the enhanced index fund that can deliver a higher active return and information
ratio and lower tracking error through an optimal mix of the benchmark weight and renewal
rate obtained from backtesting results.
The study is Identify and describe the characteristic features of the art marketplace, determine organizational functions and key stages of the development of international art market. Particular attention payed to the economic and legal... more
The study is Identify and describe the characteristic features of the art marketplace, determine organizational functions and key stages of the development of international art market. Particular attention payed to the economic and legal aspects, Defined the specific features of the approach to the articles of the Uniform Commercial Code of the United States. In priority shown aspects of legal regulations of the New York General Business Law, which is focused on relationships of art market parties. Established interrelationships between economy and art in a row with the large-scale volumes and forms of the art market. This study additionally raises questions about the pricing of contemporary art in the art market. The article reveals the problems of unregulated art market, the lack of transparency in prices, as well as in transactions. Discussion keep on the issue of circulation of forgeries in the art market, that leads to pay more attention for the authenticity. The article examines trends in the US’s art market, it’s investments potential and contribution to the country’s economy through private and public income, which leads to the leader position at the international arena of art industry.