reduce the cost of capital generally. The equity holds a call option on a levered firm because shareholders can buy the firm by repaying the debt. The strike price for exercising the equity option is therefore the firm’s cost of credit. Reducing this cost – i.e., reducing the strike price – makes stock more valuable to own. Hence, it becomes easier for firms to raise equity capital as their country’s bankruptcysystem becomes more efficient. The second direct implication of reducing the cost of capital by an improvement in thebankruptcysystem is the expansion ofthe credit market (reduction on credit constraint). La Porta, Lopez-de-Silanes, Shleifer and Vishny (1997) present an important empirical study about legal systems and their influence in finance. They show that a bankruptcy law and an enforcement mechanism that protect the rights of creditors tend to generate more financial development. Araujo and Funchal (2004) examining the same relation argue that when the protection of creditors implies penalization of debtors, an extremely high level of protection reduces debtors’ interest in demanding credit, fearing possible consequences 11 . Notice that the supply of credit is increasing in creditors’ protection because ofthe moral-hazard problem, while on the other hand the demand for credit is decreasing in creditors’ protection due to the fear of punishment. So there exists an intermediary level of creditor protection (neither too strong nor too weak) that provides the maximal level of credit in the economy.
The FPVs represented in Figure 4 thus constitute the evaluation references which, from the expert panel members’ point of view, are the key elements for predicting an SME’s bankruptcy. FPV1 – Management Skills refers to factors related to a manager’s ability or level of responsibility, such as level of experience or qualifications. FPV2 – Product, Marketing and Sales – reflects the manner in which the company shapes the market’s perspective ofthe product (for instance, image, after-sales service or brand value). FPV3 – Financial Aspects – comprises indicators ofthe company’s financial position (e.g. cost structure, access to credit or fiscal management). FPV4 – External Factors – brings together factors reflective ofthe macroeconomic context in which the organization operates (e.g. legislation, financial background or political instability). PVF5 – Structure and Employees – comprises factors related to the organizational team, such as cohesion, motivation levels or automation. Finally, FPV6 – Strategic Aspects – includes characteristics relating to the organization’s strategy (e.g. research and development, reinventions or synergy).
Under Brazilian law, there is an understanding in the sense that cross- collateralization would increase the likelihood of payment ofthe credit in bankruptcy proceedings and would allow a higher hierarchical level, passing, e.g., from the class of unsecured credits to the class of creditors with collateral, which corresponds to improper favoritism ofthe holder ofthe credit to the detriment of lenders over whom they happened to have privilege. It is noted that the operation would be subject to the inefficiency of Art. 129, item III, ofthe LRE and may even imply the [commission] of a crime under Art. 172 ofthe LRE. For this reason, such a practice would not be admitted under the national system, except as expressly approved at the creditors’ meeting to resolve the reorganization plan, which would involve most ofthe affected creditors, who may, within the limits of freedom of choice, agree to the proposal of this order. Still, we do not see a great advantage in cross-collateralization for the respective lender because the judicial reorganization plans generally involve bargains and arrangements where the secured loans will not necessarily be paid before the hierarchically inferior credits, at least during judicial reorganization.
Leverage played a major role in the recent financial crisis of 2008. Leading to the crisis, it was not only households that were highly indebted but also large financial institutions. These large institutions turned to the shadow banking system to finance themselves (see e.g. Gorton and Metrick (2010)). The repo market is a crucial part of this system. The haircut applied to the loan given in a repo trade is inversely related to how much agents can build up their positions in a security by using the repo market as a means of financing security positions. Security and repo trades can be combined in way that allows security positions to be increased, as the security gets pledged as collateral in repo, then repledged or short sold by the creditor (then again pledged by the counterparty ofthe short seller and so on). How do collateral reuse and haircuts determine what leverage is? The former may be an ingredient but does not determine by itself what leverage is (and limitations on reuse do not automatically translate into targeted reductions in leverage). For long agents to lever up to haircut potential, the reuse ofthe collateral only becomes necessary when the wealth of these agents is high enough and the haircut is low enough that the resulting aggregate leveraged long positions exceed aggregate initial holdings ofthe security. It is ultimately the haircut that determines what leverage is (and it could be the shorts being leveraged instead). More recently, in the sovereign debt crisis of 2010-12, there was substantial deleverage (also of those short selling) caused by the consecutive hikes in repo margins on bonds issued by several European governments.
Abstract: For the past 30 years the problem ofbankruptcy prediction had been thoroughly studied. From the paper of Altman in 1968 to the recent papers in the '90s, the progress of prediction accuracy was not satisfactory. This paper investigates an alternative modeling ofthesystem (firm), combining neural networks and fuzzy controllers, i.e. using neuro-fuzzy models. Classical modeling is based on mathematical models that describe the behavior ofthe firm under consideration. The main idea of fuzzy control, on the other hand, is to build a model of a human control expert who is capable of controlling the process without thinking in a mathematical model. This control expert specifies his control action in the form of linguistic rules. These control rules are translated into the framework of fuzzy set theory providing a calculus, which can stimulate the behavior ofthe control expert and enhance its performance. The accuracy ofthe model is studied using datasets from previous research papers.
Chapter two evaluates the empirical consequences of a bankruptcy reform on a poorly developed credit market. In early 2005, the Brazilian Congress approved a new bankruptcy law. The new legislation increased creditor protection and improved the efficiency ofthebankruptcysystem. Using data from Brazilian and non-Brazilian firms, we estimate, using two different treatment effects models, the effects ofthebankruptcy reform on contractual and non-contractual debt variables. In general, both models yield similar results. Concerning contractual debt variables, we found a significant increase in both total debt and long-term debt, and a reduction in the cost of debt. We found no effect in the loans’ ownership structure. Finally, in chapter three we develop an estimable equilibrium search model of credit that can be used to conduct ex-ante evaluation of institutional changes, such as bankruptcy laws. Economic literature has established a causal relationship between institutions (such as laws and regulations) and financial market development. While this qualitative conclusion is widely accepted in the literature, there is little evidence of its quantitative importance. With our framework, it is possible to estimate how debt contracts change in response to modifica- tions in credit-related institutions. It is also possible to estimate how investments made by firms will be affected, as well as characterize the distribution of firm size, age, and produc- tivity before and after the institutional change. In an empirical exercise, we use data from Brazilian firms to simulate the effects of changing creditors recovery rates on the total and the mean values of both capital and debt. We find that debt increases with lower recovery rates. In most cases, the same is true for the stock of capital.
Foreign banks use a complex systemof assessing credit risk in order to prevent entry of organizations into bankruptcy and prevent non-recovery of loans, given a number of factors such as: rating agencies for assessing country risk like Moody's and Standard & Poor's, degree of financial stability, access to financial markets, debt service ability and management of balance sheet restrictions. Thus, categories of ratings classified according to credit risk are obtained : excellent, strong, good, satisfactory, acceptable, marginal, in observation, standard, non-performing and rating - loss [ ].
The …rst three changes have several expected e¤ects on the life of …rms. In the period preceding …nancial distress, these changes should cause a reduction ofthe cost of capital (proposition 2), an expansion of both the credit market and the set of socially e¢cient projects that will be …nanced (proposition 4), and a reduction ofthe underinvestment in e¤ort, which is exacerbated when thebankruptcysystem gives priority to tax or labor claims over creditors’ claims (proposition 7). In the period following …nancial distress, the portion of insolvent …rms will probably be reduced because the investment in e¤ort increases and the aggregate gambling and delay e¤ects are diminished (although the individual e¤ects remain constant). The fourth and …fth changes, in turn, can be expected to increase the value of …rms in bankruptcy states. The more creditors expect to receive in the insolvency state, the less they will require …rms to pay in the solvency state, thus reducing the cost of capital (proposition 1). The …fth change will also speed up the process of putting the capital of liquidated …rms to more e¢cient use. Finally, the sixth change reduces the indirect costs ofthe reorganization procedure. This should make potential buyers more willing to deal with the company and less likely to demand especially favorable terms than was the case under the former bankruptcy law. This factor tends to increase creditors’ returns in the insolvency state, as well as the chance of success in reorganization.
The progressive quality of clonal expan- sion is also absent from antigen-specific lym- phocytes of animals which have been previ- ously exposed to the antigen by mucosal routes and then immunized by parenteral routes. When higher doses of antigen are used in the oral (or nasal) pretreatment, the animals respond feebly to subsequent paren- teral immunizations and are said to be orally tolerant (24,25). However, with lower doses of antigen, animals that become partially tolerant may form significant titers of spe- cific antibodies upon parenteral immuniza- tions, although lower than in control animals without mucosal pretreatment. And here is the relevant point: whereas control animals increase specific antibody titers at each addi- tional injection of antigen, the titers of anti- bodies formed by partially tolerant mice remain remarkably stable in spite of repeated injections of antigen (26). Thus, partially tolerant animals have no secondary-type responsiveness (memory) and, at the same time, cannot be properly characterized as tolerant, since they are forming significant amounts of specific antibodies. The reactiv- ity to elements ofthe autochthonous micro- biota is also stable (27) and something simi- lar may be said ofthe physiologic produc- tion of autoantibodies, which remains stable in the presence ofthe specific autoantigens (1). Stability, not progressive responsive- ness, is the distinctive mark of several physi- ologic aspects of immune responsiveness, e.g., those related to food intake, to the na- tive microbiota and to autoreactivity.
SNS has to “transition from today’s hospital-centred and illness based system where things are done to or for a patient to a person-centred and health based one where citizens are partners in health promotion and health care. It will use the latest knowledge and technology and offer access to advice and high quality services in homes and communities as well as in clinics and specialist centres. “This vision maintains the founding values ofthe SNS and builds on the strengths ofthe current system, the skills of health professionals and the achievements ofthe past - but it demands new approaches, different infrastructure and a lower and more sustainable cost base.” 1
The article confirms the hypothesis that a multiplicity of parties ofthe European and national levels forms the party systemofthe European Union (EU). The authors describe the main characteristics of Eu- roparties and political groups comprised of them as key actors in the European Par- liament’s (EP) political and legislative processes. The authors adopt the institu- tional approach and make use ofthe tools ofthe comparative, structural, and func- tional analyses. Special attention is paid to the ‘two-tier’ structure — the connection between national and supranational institu- tions — as a key feature ofthe European Union’s party system. The study is based on the European Parliament framework laws, election results, Europarties’ political pro- grammes, as well as on the comparison ofthe composition ofthe Europarties and the EU bodies. The analysis provides a new perspective on the major processes and contradictions in the functioning ofthe European Parliament and demonstrates that the transformation ofthe EU from an intergovernmental association to a (con)federation has not been completed yet.
The article describes the subsystem of workflow ofthe department at the institute “The calculation of teaching load”. As the process of calculation of teaching load is very complicated it has become necessary to make this process automatic. The mental card was developed where we can see the structure ofthe program for cal- culating teaching load. The subsystem has simple and understandable interface. The results of its work are represented in the form of filled blanks adopted by the academy in EXCEL. The created subsystem makes easier the teaching process ofthe department at the academy very much
As for why this happens, Giannetti and Laeven (2012) consider that domestic banks have informational advantages (that is, they face less information asymmetry before the borrower) in evaluating credit risk for companies in their own country, they have a better understanding ofthe political and economic risks of their own country, and they are influenced by the familiarity that comes with geographic proximity and cultural affinity with those companies. In a similar way, Agarwall and Hauswald (2007) find that the proximity to the borrower facilitates the gathering of private information by local banks, which gives them a competitive advantage toward foreign competitors and allows them to conquer a largest share ofthe local market. Dass and Massa (2009), also in accordance with these results, support that geographic proximity improves the bank’s ability to monitor the company’s managers and, therefore, improves the company’s governance. In this context, Petersen and Rajan (2002) find evidence of a differentiation in loan interest rates according to geographic distance between the borrower’s headquarters and that ofthe lending bank in the USA, and that the distance effect has been increasing through time. However, in small companies the distance may devalue the credit relationship, since it makes the relationship with the bank less intense and leads to higher interest rates. Finally, Degryse and Ongena (2005) find that banks that are geographically close to small companies have lower costs in gathering information and monitoring credit, so they can attribute better conditions to their clients, when compared to those offered by banks that are farther away. Interest rates fall with the distance between the company and the lending bank, and increase with the distance between the company and the competing banks.
In terms ofthe second point, one ofthe most evident of these patterns is the dichotomy between financially responsible and irresponsible European countries – a dichotomy which has been often used by public figures and has filled many minutes and pages of social media. In this sense, it is useful to remember the acronym PIGS, originally coined by the English financial press, for the economies of Portugal, Ireland, Greece and Spain. Or the moralist speeches by Angela Merkel about the necessity to homogenise the retirement age in order to adopt a German standard, because, as she said at that time, ‘Germany helps, but only when the others make an effort’ (El País, 18 May 2011). Or in an even more aggressive and nationalist way, the Finnish populist right-wing leader, Timo Soini made a negative statement about supporting ‘the parties ofthe southern Europeans’ in order to finance ‘their fun time’ (Soto 2011).
The operation ofthe HV system is done by dedicated panels which are accessed from the DCS main panel by clicking with the mouse on the inner rectangles ofthe main TileCal DCS panel, allowing to access to one specific super-drawer, as shown in Figure 5.11. In this new panel we can see on the top part the current readings ofthe 32 PMT high voltage values( in the extended-barrel partitions we only have 32 channels). In normal operation conditions the panel background color is light grey and in case of no PMT present the color is dark grey. We can also notice the yellow background in PMT number 12 showing that PMT is in WARNING state because the difference between the reference and output voltages is larger than 1V. In the same figure it is possible to access, by a click on the right icon, another panel where some trending history will be plotted (see example in figure 5.12). The channel status is displayed using the panel presented in Figure 5.13. In this panel we have a red color in the background which corresponds to the state ERROR meaning that the difference between the set voltage and the output voltage is larger than 2V. Important to refer that each type of parameter has its own state definition and the examples shown are only valid for those specific channels, and even in some special cases the same type of parameter can have different threshold value, for example for some problematic channels.
Concerning the development of discriminating analysis, models for bankruptcy risk existed in our country, although they occurred with a small offset global developments as the information necessary for the calculation are not time periods (10-15 years) or if they are not relevant, given the specific transitional period, compared to countries where there is a stable market economy. Romanian specialists and practitioners have expressed a particular interest (especially as a result of research and studies from the university), based on the structure ofthe Romanian economy and especially that ofthe industry. The Robu-Mironiuc model was developed from a study based on a sample of 60 industrial companies from different sectors, which are quoted on the Stock Exchange, Bucharest (Muntean and Solomon, 2011: 278). The score function that determines the risk ofbankruptcy is presented as follows:
This way the initial debt was transfer from the lenders book to the part guaranteeing the debt, that way investors, mainly banks, would be able to remove a very large amount of debt and, more important, risk from its books. This allow than to use its cash reserves to make more lending and other investments. originally, this was not a well received idea, from the point of view ofthe regulators but was accepted and then become increasable part ofthe financial market, as a very efficient way of removing risk of balance sheets and books. Although, the risk was not completely eliminated, it just was shifting from one company to another, and this was based on the reputation ofthe counterparts to deliver the expected results. This new type of financial innovation is not a traditional insurance so it is not regulate by its normal state-based regulator, instead, it is regulate by ISDA International Swap Derivatives Association.
The development ofthe questionnaire began with a brainstorming among the authors. Some items were later modified and others were added as a result of interviews with HR managers. To assess content validity, these items were presented to a group of graduate students in one executive post-experience OB/HRM master’s program, together with the definitions ofthe nine metafeatures. We asked these experts to classify the items in the nine metafeatures and retained only those that reached a minimum of 75% agreement (Hinkin, 1998). We then evaluated the terminology to ensure that it was distilled from the theoretical model and to enhance readability, clarity, and relevance and ended up with 72 items, 8 in each characteristics, which is considered an adequate number (Harvey, Billings & Nilan, 1985). We used a 7-point scale, where 1 = strongly disagree and 7 = strongly agree.
ratify in the near future, and stay competitive, the European Union needs to promote resource efficient industries, bio-based products and bioenergy, in other words, promote a transition towards Bioeconomy, according to the Bioeconomy Strategy (European Union, 2012). The political promotion and commitment to this path can contribute for, not only stop the actual climate change, but even to regress it. For example, by using innovative techniques and better soil management strategies, an estimate holds, it would be possible to store about 5,5 billion tons of carbon dioxide – one ofthe main drivers of climate change – every year, which represents one sixth of global emissions. Another estimate shows that the services provided by forests in terms of carbon sequestration will worth around 3,7 trillion US dollars in 2030 (Juniper, 2013). The Bioeconomy is expected to make the connection between human knowledge and nature services, fostering the development of new solutions that take full potential from the facts as the stated above. The average rate of unemployment in European Union has never been below 9,0 per cent since 2009. In 2015, six years after the sovereign crises struck the majority ofthe EU countries, the average rate of unemployment is still 9,4 per cent. In that year, in many countries of EU the unemployment rate was still double digit and, in the cases of Spain and Greece, it reached values over 20 per cent. These values were even more striking if we narrow the observations to the youth group, from 15 to 24-year-old, where the average rate of unemployment in the European Union reached 19,8 per cent in December 2015 (Eurostat, 2016). Taking into account this data, Job Creation is a key challenge for European future social-economic development.