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Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items in financial statements like the balance sheet, income statement and cash flow statement; the ratios of one item –... more

Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items in financial statements like the balance sheet, income statement and cash flow statement; the ratios of one item – or a combination of items - to another item or combination are then calculated. Ratio analysis is used to evaluate various aspects of a company’s operating and financial performance such as its efficiency, liquidity, profitability and solvency. The trend of these ratios over time is studied to check whether they are improving or deteriorating. Ratios are also compared across different companies in the same sector to see how they stack up, and to get an idea of comparative valuations. Ratio analysis is a cornerstone of fundamental analysis

Corporate governance plays a vital role in creating a corporate culture of consciousness, transparency, and openness. In this context, this paper provides a brief view about the background of corporate governance mechanisms in India and... more

Corporate governance plays a vital role in creating a corporate culture of consciousness, transparency, and openness. In this context, this paper provides a brief view about the background of corporate governance mechanisms in India and Gulf Corporation Council (GCC) countries, corporate legal system and monitoring policies laid down by Indian and GCC governments. Furthermore, it analyzes the impact of corporate governance mechanisms on the financial performance of Indian and GCC listed firms. The study uses a sample that consists of 53 non-financial listed companies from India and 53 non-financial listed companies from GCC countries for the period 2009-2016. Results revealed that board accountability (BA) and audit committee (AC) have an insignificant impact on firms' performance measured by ROE and Tobin's Q. Similarly, transparency and disclosure (TD) have an insignificant negative impact on firms' performance measured by Tobin's Q. Moreover, the country dummy results show that Indian firms are performing better than Gulf countries ones in terms of corporate governance practices and financial performance. The current study is considered as a battery for further research and studies particularly in India & GCC listed firms in the context of corporate governance and financial performance. 1. Introduction Corporate governance is described as having legitimacy, accountability, and competence in the realm of policy and delivery of services by simultaneously respecting the law and human rights (Srivastava, 2009). The concept can be easily understandable by the Cadbury report in which it is mentioned how corporate governance manages and control companies working activities (Cadbury, 2002). However; it is said that governance can be good or bad, effective or ineffective but depending on what is incorporated during the governing practices and also based on the characteristic or quality values associated with it. The concept of corporate governance is not too old for India; it had started at the time of early 90′s when the globalization was introduced which requesting transparency, accountability and good performance from the corporate executives and that reflect the requirement of the Corporate Governance (CG) (Bhardwaj et al., 2014). The priority for CG in the GCC has started gaining momentum in early 2000 due to a chain of various unforeseen incidents in the business arena. It is recently emerged and grabs the attention of each one, whether they are investors or corporate professionals (Shehata, 2015).

In this study we use the monthly excess holding period yields (EHPY), and their volatility for five government bond indices markets, in order to test the popular expectations theory of the term structure and to assess whether there are... more

In this study we use the monthly excess holding period yields (EHPY), and their volatility for five government bond indices markets, in order to test the popular expectations theory of the term structure and to assess whether there are patterns in risk premia, which are common across these markets. For this reason, a GARCH-M model is used. The empirical results derived indicate that in most cases the Expectation Hypothesis is rejected and short medium-term government bond yields display serial correlation and co movement in the majority of the countries. Additionally, the term premia at the long end of the maturity structure are time varying in the USA, the UK and Canada. The risk factor is statistically significant as an explanatory variable for risk premia, only for 7 years maturity bonds in the USA and the UK.

We investigate whether and if so, how, corporate governance 'quality' 1 is related to the information flows from a company and how the share market and its agents respond. Specifically, we study links between the 'quality' of a firm's... more

We investigate whether and if so, how, corporate governance 'quality' 1 is related to the information flows from a company and how the share market and its agents respond. Specifically, we study links between the 'quality' of a firm's corporate governance (CGQ) and the informativeness of its disclosures. We employ six indicators of informativeness. They include document counts, properties of analysts' forecasts and a 'timeliness' metric, in the spirit of , that reflects the average speed of price discovery throughout the year. Our results suggest the answer to our question is 'Yes': better-governed firms do make more informative disclosures.

Within the vector-error correction (VEC) model, the short-run bilateral causal relationships among Gulf Cooperation Council's (GCC) weekly equity index returns are limited and mostly unidirectional. Their relationships with three global... more

Within the vector-error correction (VEC) model, the short-run bilateral causal relationships among Gulf Cooperation Council's (GCC) weekly equity index returns are limited and mostly unidirectional. Their relationships with three global factors (the oil price, the US S&P 500 index, and the US T-bill rate) suggest that the US T-bill rate has direct influence on some of these segmented GCC markets. The S&P 500 index and the Western Texas Intermediate (WTI) or the Brent oil price have no such direct impact, implying that local or regional factors such as liquidity and profitability directly affect them. In contrast, the impulse response analysis suggests that the S&P 500 shocks have positive dynamic impacts on all GCC markets over a 20-week forecast horizon, implying that GCC stock markets rise with US markets, while the impact of the T-bill rate is important but mixed. Moreover, a positive oil shock will benefit most of GCC markets. The variance decomposition implies that the largest portions of total variations in GCC index returns come from their own domestic or other GCC shocks over the forecast horizon. Excepting the oil price factor, which accounts for 30 percent of Oman's and 19 percent of Saudi Arabia's total variations, the global factors account for only a small percentage of these stock markets' total variations.

Abstract: We examine the valuation role of customer acquisition cost, retention and usage in the wireless industry during the period 1997–2004. We develop and test a model that links customer acquisition cost, customer retention and call... more

Abstract: We examine the valuation role of customer acquisition cost, retention and usage in the wireless industry during the period 1997–2004. We develop and test a model that links customer acquisition cost, customer retention and call usage to future financial performance and valuation. In doing so, we control for the role of traditional accounting measures as predictors of firm performance. Although the wireless industry maintains a rapid pace of technological and commercial changes, fundamental accounting numbers are found to be value relevant. We provide new evidence that customer acquisition cost is likely a firm value driver. Specifically, we show that this cost is positively associated with customer retention, future profits and current market values. However, customer acquisition cost is not associated with future revenues, suggesting that successful investment in customer acquisition is capable of saving future expenses and hence of improving profitability. There does not seem to be a direct association between customer retention and usage. Nevertheless, we document a positive relation between retention and future revenues, as well as a positive association between usage and future profits. Collectively, these results suggest that retention and usage play an important mediating role linking customer acquisition with benefit generation. Consistent with this, we find some evidence that customer retention and usage enhance market values.

There is a considerable body of literature on transfer pricing in divisionalised companies (Howard et al, 1982). Much of this literature is concerned with research into the motivational and behavioural effects of the pricing of internal... more

There is a considerable body of literature on transfer pricing in divisionalised companies (Howard et al, 1982). Much of this literature is concerned with research into the motivational and behavioural effects of the pricing of internal transfers in a single country setting. The focus of such research has been the design of transfer pricing methods which enable divisional managers to satisfy the goals of their division, while simultaneously furthering the goals of the organisation as a whole. The emergence of multinational enterprises, however, raises the question of whether similar approaches are applicable for firms operating in a number of different countries. When an enterprise operates across national borders further dimensions are added to the transfer pricing problem. Additional opportunities for maximising profits arise, but there are also additional risks (Shulman, 1969). Profit maximising opportunities can arise from tax considerations, currency fluctuations, cash flow management, import/export tariffs and subsidies, exploitation of local collaborators, etc. The sources of additional risk include political and social pressures, exchange controls, price controls and substantial inflation. Arpan (1972) identified a variety of conditions which make it advantageous to set particular transfer pricesthese .conditions are summarised in Arpan and Radebaugh (1981, p. 248). For this purpose, the benchmark for assessing a transfer price is the price which would be agreed between unrelated firms engaged in a similar transaction in the open marketnormally termed an 'arm's length price'. The particular conditions likely to induce high transfer prices (i.e., above arm's length prices) for flows from parents to foreign subsidiaries are as follows: Corporate income tax higher than in parent's country, Local partners, Pressure from workers to obtain greater share of company profit, Political pressures to nationalise or expropriate high-profit foreign firms, Political instability, High inflation rate, Substantial tie-in sales agreements,

Purpose The aim of the research is to analyze sustainability in energy companies in terms of financial innovation, innovation strategy and organizational innovation. Design/methodology/approach The analysis of this research was done by... more

Purpose The aim of the research is to analyze sustainability in energy companies in terms of financial innovation, innovation strategy and organizational innovation. Design/methodology/approach The analysis of this research was done by using the Mplus 7 package program, and the research model was tested using the existing latent variables and their expressions. Data from 298 administrative staff (white collar) working in companies operating in the energy sector were analyzed. Findings Both independent and mediation effects of financial innovation and innovation strategy positively affect sustainability performance. Therefore, it can be concluded that in order for sustainability performance to be positive, importance should be given to financial innovation, innovation strategy and organizational innovation activities. Research limitations/implications As the data were collected from energy companies in this research, it is not correct to generalize the evaluations. Therefore, in term...

Small and medium-sized enterprises (SMEs), many of which are small retail shops, remain the largest employer in the western world. Yet the financing of their fixed and working capital investments remains under-researched. This study... more

Small and medium-sized enterprises (SMEs), many of which are small retail shops, remain the largest employer in the western world. Yet the financing of their fixed and working capital investments remains under-researched. This study focuses on this topic by examining Eurozone

The aim of the study was to investigate the impacts of capital structure on the performance of Nigerian listed non-financial firms and how these firms adjust to the target capital structure. We tested the Trade-off theory and the pecking... more

The aim of the study was to investigate the impacts of capital structure on the performance of Nigerian listed non-financial firms and how these firms adjust to the target capital structure. We tested the Trade-off theory and the pecking order theory and the relevance of these theories to Nigerian firms is confirmed. The speed of adjustment to the target capital structure is determined using both pool OLS and GMM to ensure the robustness of the finding. The descriptive statistics show that leverage constitute 63% of the capital structure of Nigerian firms, while leverage is dominated with the short term leverage. We observed that profitability and asset structure were negatively related to leverage while the size of the firm and non-debt tax shield were positively related to leverage. The adjustment speed of Nigerian firms is very high 47% that compares well with studies on non-financial firms done in most developed countries.

The emergence of entrepreneurial finance as a research field is the result of a double interest from both entrepreneurship researchers and financiers. Indeed, researchers focus on the financial fact existing in all entrepreneurial... more

The emergence of entrepreneurial finance as a research field is the result of a double interest from both entrepreneurship researchers and financiers. Indeed, researchers focus on the financial fact existing in all entrepreneurial projects, while financiers consider that entrepreneurial situations have specific features that we should lean on. Our article is a presentation of the basic mechanisms of the entrepreneurial Finance, and its relationship with the entrepreneurial venture in its early stages; it will also focus on the theoretical aspect on both the Agency theory and its developments, as well as on the emerging organization that takes into account the evolution of the Startups reality. Finally, we will make a presentation of the different modes of financing Startups. Our report reveals that little work was spent on funding the very beginnings of the entrepreneurial venture. To this end, the Finance business tends to stand out from the corporate finance by different concepts ...

The theory and practice of financial ratio analysis in Australia suffers from a lack of suitable empirical data. Aside from a few embryonic interfirm comparison projects notes by Gibson (1) and a limited study by Hercok (2) there is... more

The theory and practice of financial ratio analysis in Australia suffers from a lack of suitable empirical data. Aside from a few embryonic interfirm comparison projects notes by Gibson (1) and a limited study by Hercok (2) there is little recent published material relating to the financial structure of modem firms in this country. This study attempts to provide a number of financial ratios relating to financial position and performance for listed public companies in the food, electrical and accommodation industries for the years 1967, 1969 and 1971. This study adds to the body of empirical generalisations about financial ratios and also attempts to improve the methodology in this area. We have calculated the usual mean and variance, and skewness, for all ratios; however, a novel feature is the use of a fairly recent statistical test for normality. It is obviously important to know the distribution.followed by a given ratio in determining such things as whether the mean or variance has changed over time and the likelihood that the ratio for a given company falls within a certain interval from the industry mean ratio.' The Shapiro-Wilk test (3) employed in this study is probably the best small-sample test for normality and has never been used before in the field of ratio analysis. Another advantage of experimental design was the use of a random sample of firms to act as a control or comparison group. We were also able to obtain a measurement of the degree to which industry ratios were clustered and distinctively different from each other.

This study investigated how debt management impacts the performance of small scale enterprises in the Kumasi Metropolis of Ghana. In total, 120 small scale enterprises were interviewed. The study showed that most small scale businesses... more

This study investigated how debt management impacts the performance of small scale enterprises in the Kumasi Metropolis of Ghana. In total, 120 small scale enterprises were interviewed. The study showed that most small scale businesses lacked indepth knowledge on the issue of debt management. The study further revealed that the major cause of debts among small scale businesses were lack of advice on the business type and finances, lack of knowledge on the type of business and poor methods of keeping financial records. The study therefore recommends that Small scale businesses must hire financial experts to help them manage their businesses through prudent record keeping. Moreover, it argues that small scale businesses should work within their budgets in order to avoid higher expenditure and subsequent incurring of debts which could be detrimental to the running of their business. It posits that financial institutions should strive to give expert advice on business management to their clients.

ABSTRACT The general aim of this study is to investigate the effect of exchange rate on financial performance of small and middle-sized companies in Mogadishu.Specifically, this study investigated the effects of Balance of payments, the... more

ABSTRACT
The general aim of this study is to investigate the effect of exchange rate on financial performance of small and middle-sized companies in Mogadishu.Specifically, this study investigated the effects of Balance of payments, the effect of foreign direct investment, the degree of Inflation and the effect of Taxation. The related theories of exchange rate are Purchasing power Theory, Interest Rate Theory and Product Cycle Theory. This study was conducted through a descriptive study. In addition the study employed a survey research design in data collection. The sampling procedure of this study used non-probability sampling procedure particularly purposive sampling or judgmental sampling, this research employed quantitative data collection method whereby data was gathered by the use of closed ended questionnaires which are self-administered. The data collected was analyzed using the software called Statistical Package for the Social Sciences (SPSS) version 22 and results shown in terms of frequency distribution and percentages, the target population of the study is 140 employees of some merchandising companies in Mogadishu. A sample of 42 respondents was selected using Mugenda and Mugenda’s formula. The study used primary data. Data collection methods used included use of questionnaires. The selection sample technique was purposive or judgmental approach. A regression model was applied to determine the relationship between Balance of payments, foreign direct investment, inflation and Taxation as the independent variables and financial performance for os small and medium sized enterprises as the dependent variable.

Accounting information is the basis for business management. It is well known that there is no business management without business reports. The most important reports are the ones that are generated by an accounting system. Largely,... more

Accounting information is the basis for business management. It is well known that there is no business management without business reports. The most important reports are the ones that are generated by an accounting system. Largely, these reports are financial statements. Because of that, quality accounting information is the prerequisite for achieving business goals. The fact is that there is no quality accounting information without a quality accounting information system. However, accounting information system is not the only factor that is important for the quality of accounting information. Internal controls, internal audit, information technology and other are significant factors for preparing quality accounting information. An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.

his study examines the effect of financing sources on financial performance of T Small and Medium Enterprises in Taraba State, Nigeria. The specific objectives of the study are to examine the effect of commercial bank loan, retained... more

his study examines the effect of financing sources on financial performance of T Small and Medium Enterprises in Taraba State, Nigeria. The specific objectives of the study are to examine the effect of commercial bank loan, retained earnings, trade credit and leasing on financial performance of Small and Medium Enterprises in Taraba State. The study is limited to 2019 while descriptive survey research design was adopted for the study. The population comprised of small, medium and micro enterprises registered in Taraba State, Nigeria. Based on Small and Medium Enterprise Development Agency of Nigeria report of 2018, the total number of these enterprises are 514, 864. The study set a criterion that for any of the Small and Medium Enterprises to be sampled; the Small and Medium Enterprises must have an asset base (excluding land) of between N5Million-N500Million and labour force of 50 to 199. Based on the report of Small and Medium Enterprises Development Agency, it was only 69 Small and Medium Enterprises that satisfied the stated criteria. These 69 Small and Medium Enterprises formed the sample size for the study. The study used filtering sampling technique to arrive at sample size of 69. Primary data were collected from the field. Questionnaire was used to collect primary data from the field. Data was analyzed using multiple regression analysis. The study found that commercial bank loan and trade credit have significant positive effect on financial performance of Small and Medium Enterprises, while lease financing has significant negative effect on financial performance of Small and Medium Enterprises.

Basel III seeks to improve the financial sector's resilience to stress scenarios which calls for a reassessment of banks' credit risk models and, particularly, of their dependence on business cycles. This paper advocates a Mixture of... more

Basel III seeks to improve the financial sector's resilience to stress scenarios which calls for a reassessment of banks' credit risk models and, particularly, of their dependence on business cycles. This paper advocates a Mixture of Markov Chains (MMC) model to account for stochastic business cycle effects in credit rating migration risk. The MMC approach is more efficient and provides superior out-of-sample credit rating migration risk predictions at long horizons than a naïve approach that conditions deterministically on the business cycle phase. Banks using the MMC estimator would counter-cyclically increase capital by 6% during economic expansion and free up to 17% capital for lending during downturns relative to the naïve estimator. Thus the MMC estimator is well aligned with the Basel III macroprudential initiative to dampen procyclicality by reducing the recession-versus-expansion gap in capital buffers. JEL classifications: C13; C41; G21; G28.

Abstract This article investigates how international decision-making's conditionality aids countries during strenuous economic conditions imposed by the COVID-19 pandemic. It examines and contrasts the European Union's... more

Abstract This article investigates how international decision-making's conditionality aids countries during strenuous economic conditions imposed by the COVID-19 pandemic. It examines and contrasts the European Union's conditionality policies, the International Monetary Fund, and the World Bank as the more influential and leading groups of institutions. The article reveals notable policy differences. As opposed to that of the IMF and WB, the EU's approach is more comprehensive and not confined to economic considerations. Those variations aside, the article draws on the same premise: expectations of compliance with the set conditions. While in-depth, structural requirements could guide ordinary decision-making and build up resilient national institutions and policies, this article questions the merits of large-scale comprehensive terms in the face of a situation created by a force majeure or a humanly uncontrollable event such as the COVID-19 pandemic. With no more initial research addressing the specific question of the application and adequacy of conditionality to force majeure emergencies or pandemic situations of the scale of COVID-19, this article argues in favor of a measured and targeted response limited to the development, design, or determination of policy choices that tackle the intended purpose. Also, for validly practical considerations that search for to ensure the better use of aid and avoid distracting or overburdening the recipient countries to the point of risking losses of devastating proportions, the article proposes to revise and limit conditionality during force majeure events to the essential aspects of transparent management of funds for the sole intended purpose. This in itself is a distinct democratic exercise of efficient and accountable public management decision-making.

As we know finance is the lifeblood of every business, its management requires special attention. Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm's financial... more

As we know finance is the lifeblood of every business, its management requires special attention. Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm's financial resources. Finance is one of the basic foundations of all kinds of economic activities. Finance is defined as "provision of money at the time when it is required". Every enterprise, whether big, medium, or small, needs finance to carry on its operations and to achieve its targets. Without adequate finance, no enterprise can possibly accomplish its objectives. So finance is regarded as the lifeblood of any business enterprise. Funds are needed right from the time of commencing the business for purchasing fixed assets such as plant and machinery, furniture and fixtures etc., as well as for the day to day expenses. So here in this article the main objectives is to have the clear understanding of the managing business finance in terms of its concept, objectives and scope , various sources of raising finance and factors influencing the financial requirement of any organisation.

This study examined the effect of Small and Medium Scale Enterprises (SMEs) on economic growth in Nigeria using data between 1986 and 2018. Vector Autoregression (VAR) technique was employed in analysing the data collected. The results of... more

This study examined the effect of Small and Medium Scale Enterprises (SMEs) on economic growth in Nigeria using data between 1986 and 2018. Vector Autoregression (VAR) technique was employed in analysing the data collected. The results of the estimation indicated that SMEs output growth rate has a significant positive effect on gross domestic product (GDP) growth rate (a proxy for economic growth). Furthermore, it was found that SMEs contribute 61% of the growth in GDP. Thus, the study concluded that economic growth in Nigeria is driven by SMEs. The study recommended that the Central Bank of Nigeria should ensure that SMEs have increased access to funding at a reduced cost to boost their growth. Also, the federal as well as state governments in Nigeria should ensure that the economy is business/investment friendly for SMEs by adjusting key economic policies such as reduction in tax rate/granting of tax waivers, provision of incentives/grants to SMEs in their domain to help them grow. The aforementioned recommendations are necessary because the growth of SMEs triggers the growth of the economy.

We examine the valuation role of customer acquisition cost, retention and usage in the wireless industry during the period 1997-2004. We develop and test a model that links customer acquisition cost, customer retention and call usage to... more

We examine the valuation role of customer acquisition cost, retention and usage in the wireless industry during the period 1997-2004. We develop and test a model that links customer acquisition cost, customer retention and call usage to future financial performance and valuation. In doing so, we control for the role of traditional accounting measures as predictors of firm performance. Although the wireless industry maintains a rapid pace of technological and commercial changes, fundamental accounting numbers are found to be value relevant. We provide new evidence that customer acquisition cost is likely a firm value driver. Specifically, we show that this cost is positively associated with customer retention, future profits and current market values. However, customer acquisition cost is not associated with future revenues, suggesting that successful investment in customer acquisition is capable of saving future expenses and hence of improving profitability. There does not seem to be a direct association between customer retention and usage. Nevertheless, we document a positive relation between retention and future revenues, as well as a positive association between usage and future profits. Collectively, these results suggest that retention and usage play an important mediating role linking customer acquisition with benefit generation. Consistent with this, we find some evidence that customer retention and usage enhance market values.

Academic researchers have devoted a considerable amount of attention to the activities of credit rating agencies over the past 20 years, focusing in particular on the agencies' potential role in overseeing corporate financial strength and... more

Academic researchers have devoted a considerable amount of attention to the activities of credit rating agencies over the past 20 years, focusing in particular on the agencies' potential role in overseeing corporate financial strength and promoting the efficient operation of financial markets. Examinations of credit rating practices has recently extended to the insurance industry, where the complex technical nature of market transactions leads to policyholders, investors and others facing particularly acute information asymmetries at the point-of-sale. Published credit ratings are therefore seen as helping to alleviate imperfections in insurance markets by providing a third party opinion on the adequacy of an insurer's financial health and the likelihood of it meeting obligations to policyholders and others in the future. Although the United Kingdom (UK) insurance market is now one of the five largest in the world, relatively little is known about the practices of the major firms and policy-makers which influence its operations. In particular, whilst the determinants of rating agencies' assessments of United States (US) insurers is well documented, published studies have yet to provide comprehensive evidence about insurance company ratings in the UK. This study attempts to fill this gap by examining the ratings awarded by two of the world's leading agencies -A.M. Best and Standard and Poor (S&P) -and establishing the extent to which organizational variables can help predict: (i) insurance firms' decision to be rated; and (ii) the assigned ratings themselves.

This paper investigates the relationship between firm efficiency and leverage. We consider both the effect of leverage on firm performance as well as the reverse causality relationship. In particular, we address the following questions:... more

This paper investigates the relationship between firm efficiency and leverage. We consider both the effect of leverage on firm performance as well as the reverse causality relationship. In particular, we address the following questions: Does higher leverage lead to better firm performance? Does efficiency exert a significant effect on leverage over and above that of traditional financial measures of capital structure? Is the effect of efficiency on leverage similar across different capital structures? What is the signalling role of efficiency to creditors or investors? Using a sample of 12,240 New Zealand firms we find evidence supporting the theoretical predictions of the Jensen and Meckling (1976) agency cost model. Efficiency measured as the distance from the industry's 'best practice' production frontier is positively related to leverage over the entire range of observed data. The frontier is constructed using the non-parametric Data Envelopment Analysis (DEA) method. Using quantile regression analysis we show that the reverse causality effect of efficiency on leverage is positive at low to mid-leverage levels and negative at high leverage ratios. Firm size also has a non-monotonic effect on leverage: negative at low debt ratios and positive at mid to high debt ratios. The effect of tangibles and profitability on leverage is positive while intangibles and other assets are negatively related to leverage.

This paper examines the impact of FSA's (Financial Services Agency) recent policy changes on the efficiency and returns-to-scale (RTS) of Japanese financial institutions including banks, securities companies and bank holding companies.... more

This paper examines the impact of FSA's (Financial Services Agency) recent policy changes on the efficiency and returns-to-scale (RTS) of Japanese financial institutions including banks, securities companies and bank holding companies. Three kinds of efficiency are investigated namely, technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) using the non-parametric methodology named data envelopment analysis (DEA). The DEA analysis shows a substantial improvement in the overall efficiency of Japanese banks, albeit a significant difference of efficiency scores between the major/city banks and the regional banks. Results are robust to alternative specifications of efficiency and scale changes.

Equities are a type of security that represents the ownership in a company. Equities are traded (bought and sold) in stock markets. Alternatively, they can be purchased via the Initial Public Offering (IPO) route, i.e. directly from the... more

Equities are a type of security that represents the ownership in a company. Equities are traded (bought and sold) in stock markets. Alternatively, they can be purchased via the Initial Public Offering (IPO) route, i.e. directly from the company. Investing in equities is a good long-term investment option as the returns on equities over a long time horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk.

We study the association of Web-based non-financial disclosure and a firm's cost of finance within an international context (North America and Continental Europe). We examine voluntary Web placement of non-financial disclosures using an... more

We study the association of Web-based non-financial disclosure and a firm's cost of finance within an international context (North America and Continental Europe). We examine voluntary Web placement of non-financial disclosures using an information index covering a firm's value creation process. We find a negative association between the level of Web-based nonfinancial disclosure and the implied cost of equity capital in North America and in Continental Europe. Continental European firms with higher levels of Web-based non-financial disclosure also tend to benefit from a lower information asymmetry and from a lower cost of debt capital, whereas North American firms do not.

ABSTRACT This paper explains the need for supplementing traditional financial and economic factors with softer cultural and institutional measures in explaining the determinants of firm financing. The theoretical arguments are based on... more

ABSTRACT This paper explains the need for supplementing traditional financial and economic factors with softer cultural and institutional measures in explaining the determinants of firm financing. The theoretical arguments are based on the incompleteness of contracts and therefore the important role of ethics and behavioral norms in the need and cost of enforcing such contracts. The practical argument is simply that adding these soft factors to traditional economic factors provides a better and more complete explanation of firm financing. This paper notes the lack of such literature in mainstream finance journals in spite of these demonstrated needs. Finally, this paper introduces the papers in this issue and their contributions.

In this paper we measure and evaluate the performance of a number of Value-at-Risk (VaR) methods using a portfolio which is based on the foreign exchange exposure of a small open economy (Ireland) among its key trading partners. A number... more

In this paper we measure and evaluate the performance of a number of Value-at-Risk (VaR) methods using a portfolio which is based on the foreign exchange exposure of a small open economy (Ireland) among its key trading partners. A number of recent studies have compared the various methods of measuring risk, however, we are primarily concerned with the evaluation of these methods. The sample period highlights the changing nature of Ireland's exposure to risk over the past decade in the run-up to EMU. The novel aspect of our analysis is that we measure the portfolio risk faced by firms (e.g. banks, exporters) using new risk management techniques. Our results will offer an indication as to the level of accuracy of the various approach's and discuss the issues of models ensuring statistical accuracy or more conservative leanings. The approach we will adopt is based on the Value-at-Risk models. We investigate the two central VaR modelling methodologies, parametric and non-parametric analysis. Results based on recently developed evaluation techniques would appear to suggest that the EWMA is the more appropriate method.

We examine the performance of 84 firms that adopt value-based management (VBM) systems during the period 1984-1997. The typical firm significantly improves matched-firmadjusted residual income after adopting VBM. This improvement persists... more

We examine the performance of 84 firms that adopt value-based management (VBM) systems during the period 1984-1997. The typical firm significantly improves matched-firmadjusted residual income after adopting VBM. This improvement persists for the five postadoption years studied. After controlling for possible sample bias, we find that large firms show less improvement than small firms. We find a negative relation between tying compensation to VBM and post-adoption performance. We also find that firms reduce capital expenditures following VBM adoption, but that the reductions in spending do not differ based on the firms' growth opportunities. Overall, the evidence suggests that VBM improves economic performance and the efficient use of capital.