ofstudyand according tothe second criterion; stock must be traded for at least 100 business days. The proposed variables of this study include the ratios ofbookvalue (BV) tomarketvalue (MV), BV/MV, sizeand excess ofreturn. In summary, excess ofreturnof share is dependent variable and excess ofreturnofmarket along with BV and MV are considered as dependent variables. In this paper, trading volume refers tovalueof traded shares in terms of local currency. The other necessary factor is to calculated liquidity, which is calculated as the mean absolute difference between the returns of stocks with no liquidity and stocks with high liquidity called Illiquidity factor (IMV). In this survey, we do not measure this factor directly. Normally firms are divided into three groups of stocks with no liquidity (I), stocks with medium liquidity (N) and stocks with high liquidity (V). In terms ofsize, stocks are divided into two groups of big (B) and small (S) and in terms oftheratioof BV/MV, stocks are divided into three groups of high (H), medium (M) and low (L). Therefore, the following combinations can be considered as different scenarios,
This work extends Sridharan’s (2015) results, who found a significant relationship between financial variables and realized volatility. In particular, the introduction ofSize, Research and Development Expenditures, Sales Growth, Cash Flow Volatility, Earnings Opacity, Leverage, Returnon Assets and Equity Book-to-MarketRatio in a model based onthe volatility implied in option market prices presented improved results. Applying a similar methodology to a different set of data, it is found that only three of those variables affect realized volatility in my sample. Leverage and Equity Book-to-MarketRatio have a negative impact andReturnon Assets a positive impact. It is hypothesized that financial variables should also be useful in the construction of a traditional ARCH model. This is confirmed empirically and it is shown that the better volatility forecasts, provided by the introduction of these financial variables, can be used to construct a successful investment strategy that outperforms themarket.
This study used the beta coefﬁcient available from the Economatica database, calculated on a 60-month period prior to each year’s start date. Thestudy found that a considerable part ofthe stocks had negative returns in the studied period (25.5 per cent), which comprehended the current world ﬁnancial crisis. So, we believe that the estimated beta coefﬁcient may not represent the systematic risk or simply may not be reﬂecting a speciﬁc characteristic ofthe Brazilian market in the context under study. It is important to note that the main objective of this study is to assess the importance ofthe fundamental variables to explain the stock returns and that the beta is being used solely as a control variable.
Returnof Investment has always been an interesting area of research among academics as well as investors. Although capital asset pricing model (CAPM) is capable of estimating risk of investment, many people argue that CAPM is not able to predict long-term return, properly. This paper presents an empirical investigation to find the effects of different financial figures including systematic risk (Beta), sizeof firm, ratioofbookvaluetomarket share, volume of trade andtheratioof price/earnings (P/E) onreturnof private banks in Iran. Thestudy gathers the necessary information over the period 2005-2011 from private banks in Iran. Thestudy uses multiple regression technique to find the effects of mentioned variables onreturnof private banks. The results indicate that there are some meaningful and positive relationship between returnof banks and systematic risk (Beta), size, volume of trade and P/E. Thestudy also finds some meaningful and reverse relationship between bank returnandbookvalueonmarketvalue.
Table 7 exposes the results for the estimations ofthe excess capital above the regulatory minimum. These calculations were based onthemarketratio, bookratioand Tier 1 ratio. In these regressions, besides thesize, market-to-book, profitability, collateral, dividends and asset risk variables we will add tothe model four macroeconomic variables: inflation, growth rate ofthe GDP, stock market volatility andthe term structure spread these are increasingly exposed tothe economic cycle fluctuations compared to non-financial firms. The introduction ofthe macroeconomic variables in the initial model does not manifest any significant changes in the previous results from table 6, in what concerns the three measurements ofthe dependent variable. It is also important to highlight that there has been a slight increase in the R 2 value which demonstrates that the macroeconomic variables have
In a knowledge-based economy, intellectual capital (IC) is considered a key resource in the firm’s value creation, competitiveness and growth. One ofthe main priorities in the Europe 2020 strategy is smart growth (Veugelers et al., 2015), i.e., economic growth based on innovation and knowledge. Knowledge is recognized as a valuable resource for firms’ growth and innovation (Lev, 2004). In recession periods, like the one following the recent global financial crisis, firms tend to have scarce financial resources (Hall, Moncada-Paternò-Castello, Montresor, and Vezzani, 2016). Financial crisis has a negative effecton economic development, which may contribute to firms reducing their investments. According tothe Quarterly Report onthe Euro Area (2013), several European Union (EU) countries reduced their investment in 2009. Spain, Portugal, Greece and Italy appeared to be the countries in the Eurozone with the highest probability of financial distress, which led to a financial assistance program (Greece and Portugal). The most affected countries, such as Portugal, Greece, Spain and Italy, implemented several measures to deal with theexcessive sovereign debt, with firms’ consequent difficulty in accessing credit. These may have worsened firms’ financial performance (FP), which was aggravated by the reduction of demand, forcing firms to look to new sources to gain competitive advantages (Ferrando et al., 2015). Therefore, in order to incentivize innovation, the European Union (EU) made efforts to fund innovation through projects such as Horizon 2020 (Veugelers et al., 2015). IC investments, often referred to as intangible assets, aim for future benefits, not having physical or financial form (Lev, 2004) and strongly contributing tovalue creation through employees’ knowledge, organizational processes and innovation and relationships (Serenko and Bontis, 2004; Wang, Wang, and Liang, 2014).
by intangible assets such as knowledge, patents, and intellectual property rights. This trend corresponds tothe shift to a knowledge-based economy (Ipate & Pârvu, 2015; Park, 2015). Nowadays, companies are acquiring and develop more non-physical assets. Therefore, a question arises – what is theeffectofthe intangible assets in companies’ performance? A study performed by Aboody and Lev (2000) shows that companies who had intense research and development programs (R&D) obtained bigger gains than those without them. Considering the relevance ofthe issue, this research aims tostudythe influence ofthe Intangible Assets (IA) - exclusively those that are recognized and showed in the balance sheet - ontheReturnon Equity (ROE). Due tothe accounting segregation ofthe IA andthe goodwill, the analysis considers both IA and “IA including goodwill”. Therefore, the main research question can be stated as follows: what is the influence of IA (recognized in the balance sheet) on companies’ performance, and, in particular, onthereturnon equity? In order to answer the question, five operational objectives were established: i) Analyze the impact of IA on ROE, measured at book values, ii) Analyze the impact of “IA, including goodwill”, on ROE, measured at book values, iii) Analyze the impact of IA on ROE, measured at market values, iv) Analyze the impact of “IA including goodwill” on ROE, measured at market values and v) Compare the results ofbookandmarket values approaches. In order to analyze the influence ofthe IA on ROE, thestudy is based on a group of companies that are components of Standard and Poor 100 Index (S&P100). The S&P100 index comprises 101 companies across multiple industry groups; however, due tothe requirements established for this project, only 68 companies were selected as the study’s sample. The Three-Step Dupont Model, which lies in a broken form ofReturnon Equity (ROE) original formula, is used as a starting point. The model comprises the three following factors: net profit margin, asset turnover and equity multiplier. For thestudy purposes the equity multiplier was modified to isolate the intangible assets, obtaining a modified version ofthe Dupont model. Next, the Ordinary Least Square (OLS) was used to analyze the impact ofthe intangible assets (recognized in the balance sheet) over thereturn equity.
Thestudy categorize the firms based on two ratioof price on earning (P/E) and price onbookvalue (P/BV) into two groups of income and growth. In other words, any firm whose P/E and P/BV values are less than market average is considered income funds andthe firms whose P/E and P/BV are above the average are considered as growth funds. Next, thestudy determines the relative returns of each fund based on Eq. (1). In our study, variance ofreturn is considered as the risk of each firm as follows,
Tobin's Q is themarketvalueof a company by comparing themarketvalueof a company listed on financial market with a replacement valueofthe company’s assets. This study employs Price-to-Bookvalue (PBV) as a measuring tool ofthe corporate value. PBV describes the extent to which themarket appreciates the share bookvalueof a company. PBV is the rating of stock price andbookvalue. Thebookvalue is theratio between share equity andthe number of circulating shares (Weston and Brigham, 2006). PBV implies the extent to which a company is able to create the corporate value relative tothe amount of capital invested (Utama and Santosa, 1998), hence higher PBV ratio shows that the more successful companies are in creating value for shareholders because higher PBV indicates high stock price as well. High stock price reflects high corporate value. The techniques and methods developed to measuring corporate value according to Fama and French (1998) are:
One ofthe most important issues in financing corporate is to find appropriate method to make a wise selection between getting loans and increasing the number of shares. There are different theories for making appropriate financing methods. The primary purpose of this paper is to investigate this issue based onmarket timing theory. The proposed model of this paper chooses selective companies from Tehran Stock Exchange. The proposed model of this paper uses regression analysis on two different models. The primary purpose ofthe first model given in this paper is tostudytheeffectofmarket timing theory. In this part of survey, we measure theeffectoftheratioofmarketvaluetobookvalueonthe sources of financing firms though increase in equities. Based onthe results, we can conclude that as theratioofmarketvaluetobookvalue increases, firms tend to increase their equity though an increase tothe number of shares. The first hypothesis of this paper is confirmed. The second model is associated with the relationship with mean ratioofmarketvalueon weighted bookvalueand Leverage andthe results of this paper do not confirm such relationship.
Nickel based superalloys castings are produced by investment casting methods which are constantly improved . Nickel superalloys are used for critical elements ofthe aircraft engines (so called „Flight safety parts” - FSP). They are subject of exceptional requirements in the production and control respects. These elements have to fulfil a lot of requirements ofthe consumer standards dealing with the chemical composition and microstructure – and first of all the grain size, the microstructure of matrix, the type and relative volume of carbides, porosity andthe surface roughness [2-5]. Properties of casted blades made of
Surface of C120 steel after arc plasma treatment showed tracks have multizone microstructure composed ofthe remelted zone, heat affected zone and substrate, which can have diversified microhardness. Structure (particularly precipitation of martensite, bainite retained austenite and secondary cementite) in the remelted zone is dependent onthe arc plasma treatment parameters. The cooling rate obtained during the treatment by arc plasma ofthe steels is compared tothe cooling rate ofthe steels during conventional heat treatment. This cooling rate can be estimated onthe basis ofthe standard CCT diagram for C120 steel. Increased ofthe current intensity of arc plasma lead toof grater areas of materials remelting and it decreases ofthe cooling
harder to negotiate with the bank or to secure credit for other loans in the future. When a mortgage loan is issued, a monthly due date for payments is usually specified. Many mortgages include a grace period of from one to two weeks, meaning that payments sent during the grace period will still be considered on time. After the grace period has elapsed, however, late fees will start to be levied. If more than 30 days after the due date go by, the mortgage is considered to be in default. Once the bank determines that the 30 days have elapsed, it sends a notice of mortgage default to a credit agency, impacting the credit score immediately. Within weeks, the bank will usually retain the services of a credit collection agency in an attempt to get the homeowner's past due payments. This adds tothe fees associated with mortgage default. Many banks will also insist on a full payment including late fees and collection fees to bring the homeowner current, and they will not accept partial mortgage payments when the mortgage is in default. Within 60 to 90 days ofthe determination that the mortgage has defaulted, the bank will send a notice of mortgage default tothe homeowner. This is the first step in foreclosure proceedings, giving the property owner a chance to make up the missed payments immediately and in full, or to risk having the collateral security taken over by the bank and sold at auction. The bank will also be obliged to post a public notice about the foreclosure, andthe property owner will have a chance to buy the property back during the foreclosure auction, if he or she can muster up the funds in cash. Some people choose to default on their mortgages and simply walk away, deciding that the negative impact on their credit scores is better than sinking any more equity into the home. This is most common in areas where property values have declined radically, leaving people with loans which are larger than their homes are worth. Other people may try to sell their homes before their mortgages go into default so that they can wipe the slate and start over again.
Abstract: Mathematical model for the impact of pressure drop onthe human body has been investigated in the present studies. The studies has been aimed at personnel (army and mountaineer) who would be prone for higher altitude effectonthe body andto suggest them appropriate measures (as a precautionary or advisory purpose) who either will be getting inducted onto higher altitudes venturing onto higher peaks. The model accounts for heights of altitudes ranging from 4000-6000 meters and accounting for all the possible cardiovascular diseases
Optimisation ofthe turbine mixer’s performance during the preparations ofthe sand mix still remains an important issue as this mixer type is now in widespread use. Monitoring techniques ofthe system sand mixing include the analysis of electric power demand by the mixer’s drive based on measurements of power components. This study shows the operating characteristics of turbine mixers as the function of electric power demand by the drive system.
In relative valuation, thevalueofthe company is calculated based onthemarket price of comparable firms. To do this, we first need to identify comparable firms, i.e. firms within the same sector of activity, similar cash flow levels, financial structure, risk and expected growth ofthe target company. Being identified, there is the need to convert their price into normalized and comparable values. These normalized values are pricing multiples which allow for the pricing and comparison of two or more comparable firms. According to Fernandez (2001), the most used multiple is the Price Earnings Ratio (PER), however, some multiples can be more appropriate than others, depending onthe industry (in hotel valuation processes it’s commonly used the price per room). For a practical example relatively to PER, if we get from quoted companies in themarket a PER of 10, then we can estimate thevalueofthe company we are valuing multiplying by 10 its earnings.
Progressive materials with high-speed development in wide range of commercial applications are aluminum alloys Al – Si. Future of their further use is connected with their unique characteristic, resp. advantageous relation between mechanical properties and density. Largest use of these alloys is in the transport industry – automobile and aerial industry. Also often used in engineering industry and special role in army industry. Desirable mechanical properties may be considered one ofthe main reason for wide spectrum efficiency of aluminum alloys, therefore is very important to understand the factors, which have major impact on this properties. Main goal of this work was to execute group of experiments, to prove impact of filtration elements on morphology of eutectical silicon. Shape, deployment and scale of eutectical silicon are one ofthe factors, that have
Another special case ofbookvalue valuation is liquidation valuation. Due tothe urgency of selling, the liquidation value will be a specified percentage ofbookvalue – Berger et al (1996) argue on this and provide evidence that bookvalue operates as a proxy for the abandonment value in many firms, while Lang et al (1989) use bookvalue as a proxy for replacement costs. The discount tobookvalue varies greatly; Kaplan (1989) cited a Merryl Lynch estimate that the speedy sales ofthe Campeau stake in Federated would bring about 32% less than an orderly sale ofthe same assets, and Holland (1990) estimates a discount in excess of 50% in the liquidation of assets of a machine tool manufacturer. Williamson (1998) points out that assets that are not specialized and that can be redeployed elsewhere have a smaller discount due to great use opportunities, and Shleifer&Vishny (1992) argue that assets with few potential buyers or buyers with financial constraints are likely to sell for higher discounts.
For the testing one prepared 36 specimens from AlSi13Cu2 alloy, the specimens were poured in foundry laboratory of University in Bielsko – Biala. As the first sequence there were cast 18 specimens destined to determination an effectof vibrations during crystallization on phenomenon of porosity. Subsequently, one poured next 18 specimens destined tothe testing aimed at determination of an effectof vibrations during crystallization on mechanical properties.