Top PDF A study on the effects of banks’ cash management on their share value

A study on the effects of banks’ cash management on their share value

A study on the effects of banks’ cash management on their share value

CCC Investory Conversion Period+Recivable Conversion Period-Payable Deferral Period  (1) where in Eq. (1), the inventory conversion period (ICP) is added to the receivable conversion period (RCP) and then the payable deferral period (PDP) is deducted from it to calculate the cash conversion cycle (CCC). The calculated variable represents cash management and the lower it is the more efficient will be the cash management (Wang, 2002). Other variables of this equation are calculated as follows: the inventory conversion period is calculated by dividing the average inventory by the average price during a year and the receivable conversion period is calculated by dividing the average accounts receivable by the average sale during a year and the payable deferral period is calculated by dividing the accounts payable by the actual cost. As mentioned earlier, in this study, the population of this survey includes all banks licensed by the Central Bank of the Islamic Republic of Iran. Therefore, sampling method was the complete sampling and includes all members of statistical population during the year 2011. All information has been extracted from official reported from Tehran Stock Exchange and investigated banks’ financial statements. Statistical methods of this study is to estimate the effect of liquidity management on the value of stock market pattern of ordinary least squares (OLS) based on econometric method. Econometrics is dealing with systematic study of economic phenomena using observed data (Arrow, 1960). Although many econometric methods express the application of statistical models, some specific characteristics of economic data are associated with the nature of domestic circumstances. Economic data are generally observational, and didn’t obtain from controlled tests. Since economic units operate with each other, the observed data show a complex economic equilibrium and they are not derived from a simple act of communication caused by precedence or technology. In this study, simple linear regression is used as follows.
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Investigating the effects of Iranian cultural factors on brand equity for strategic management of market share

Investigating the effects of Iranian cultural factors on brand equity for strategic management of market share

customer and attention to his perception of beauty, and thereby attempting to manufacture versatile products according to his/her taste, are mandatory for the survival of the company. Considering the fact that the quality perceived from the brand for products which are merely practical or merely luxurious is different from those enjoying both aspects at the same time, we should pay more profound attention in applying the above-mentioned strategy. Generally, we suggest that manufacturers pay special attention to the taste and social position of customers and customize their products in accordance with their demands. It is also suggested that target markets be divided into different categories and customers be studied at different levels and in different groups; thus, the various methods applied for attracting customers’ attention should be adjusted and each group should be treated according to their specific common features. Using market concentration strategies, and at the same time introducing various and versatile designs to specific markets, would be more beneficial and economical to this industry. We suggest other researchers to study brand value creation approaches and branding factors in other manufacturing and service industries and present a localized model conforming to the cultural needs of each society, since culture is considered as one of the most influential factors in customers and consumers’ criteria for choosing a specific product or service. 6. Acknowledgement
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A study on effects of knowledge management on the success of customer relationship management

A study on effects of knowledge management on the success of customer relationship management

Nowadays, it is widely accepted that knowledge is the primary source of adding more value to organizations and business units. Customer relationship management (CRM), on the other hand is the main bridge for building a connection between management team and users and a good CRM also contributes to firms in terms of customer retention and getting more market share through word of mouth advertisement. In this paper, we present an empirical investigation to find the effect of knowledge on CRM in one of Iranian banks. The proposed study selects a sample of 384 randomly selected people and distributes a questionnaire among them. Cronbach alphas for all components of the survey have been well above 0.70, which validates the overall questionnaire. The results have confirmed that knowledge influences CRM positively in terms of customer satisfaction, customer loyalty and trust.
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REPUTATIONAL RISK OF BANKS – A STUDY ON THE EFFECTS OF REGULATORY SANCTIONS FOR MAJOR BANKS IN EUROPE

REPUTATIONAL RISK OF BANKS – A STUDY ON THE EFFECTS OF REGULATORY SANCTIONS FOR MAJOR BANKS IN EUROPE

A common observation from the stock market, is that the stock price reacts to new information. In the moment, a new and important information about a listed company is revealed to the public, the corresponding stock price reacts positive or negative. The adjustment of stock prices to new information was first studied by Fama et al. (1969), using the example of stock split and dividend announcements on the stock price. Their work was the basis for further research. Peltzman & Jarrell (1985) investigate the effect of product recalls on stock prices, and Fiordelisi et al. (2014) analyse the effect of the announcement of operational losses on stock prices. Furthermore, Karpoff & Lott (1993) investigate the effect of committing fraud on the stock price, while Armour et al. (2015) conduct a study in which they focus on fraud committed in the UK´s banking sector. Both find a negative reaction of the stock price to sanction announcements. Sanction announcements are new and important information, which are revealed to the market, and are consequently the stock price adjusts. The first reason is the monetary fine and additional compensation payments associated with the sanction. Thus, money leaves the bank, which has a negative impact on the market value, and thus on the stock price. The second reason is the reputational risk associated with the sanction described in Section 2.5. Accordingly, there should be an abnormal loss in the stock price at the date when a sanction is announced. The following hypothesis summarises the reasoning:
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Hedging a bank´s interest rate risk with interest rate swaps accouting treatment and auditing procedures

Hedging a bank´s interest rate risk with interest rate swaps accouting treatment and auditing procedures

The purpose of the audit is to enable the auditor to express an opinion on whether the financial statements are prepared in all material respects, in accordance with the applicable financial reporting system. In order to do so, the auditor should test, for example that the derivatives reported in the financial statements exist at the balance sheet date; make sure that all of the derivatives are reported in the financial statements and ensure that the classification, description and disclosure of derivatives in the financial statements are in accordance with the applicable reporting model.Regular reconciliations with external documents are an important way to control the operations with derivatives. For instance, reconciliation of the records of the counterparty with the records used by the bank; reconciliation of bank accounts as well as extracts of brokers to ensure that all outstanding elements are identified properly. It is important that the auditor does an analysis and assessment of the documentation prepared by the bank to support the criteria defined in IFRS 9 in order to qualify the derivatives as hedges. Analysis of the consistency and completeness of the disclosures related to derivative financial instruments and assessment of compliance with the disclosure requirements are also key.
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Disentangling the effect of private and public cash flows on firm value

Disentangling the effect of private and public cash flows on firm value

There are two previous findings in the literature which provide insights about our results. Doidge (2004) finds that foreign firms cross-listing in the U.S. have a voting premium of 43% lower than firms that do not cross-list. This means that the effect for firms that do not cross-list could be even higher than the one we unveil here with a higher negative effect on the firm value after an increase in the voting right value. On the other hand, Dyck and Zingales (2004) find Brazil is the country (among 39 countries) with the highest value for corporate control. They relate their results of a higher premium to lower investor protection and higher willingness to extract private benefits. The lower investor protection would explain the significantly negative π estimates.
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On the Labor Share

On the Labor Share

The presence of adjustment costs also impacts the labor share behavior (Arpaia et al, 2009). If the labor share is above its long-run level there will be downward pressure on the wage bill. High hiring and firing costs (like in Europe), or even higher labor taxes, prevent a quicker adjustment towards the equilibrium labor share level. This happens since firms will set wages bellow marginal productivity of labor, signaling an insurance premium. Thus, if real wages are not flexible downwards, the unemployment may surge due to misalignments between wages and productivity. Take C 5 as an insurance premium proportional to wage. In this analysis no capital adjustment costs were considered. Assuming also an imperfect product market, firms will set real wages equal to:
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BPI - Banco Português do Investimento : Equity Research

BPI - Banco Português do Investimento : Equity Research

In this sense, besides the difficulties that the bank will have associated with its solvency, the evolution of assets quality will also be a relevant topic, namely due to the increasing trend of the nonperforming loans verified lately. Therefore, I consider that BPI will continue to have a conservative policy comparing to its peers, which is reflected in their provision levels and correspondent cost of credit risk (provisioning cost), around 0,42% on the 9M11. Over the last months BPI (as well as its peers), has been opting for the reinforcement of its balance sheet, what has been leading to lower levels of profitability (in example, ROE of 8,8% in 2009 and 2010, and 6.1% in the 9M11). This is done namely via less credit amounts granted, more restrictive conditions, via the increase of the deposits amounts (which has lead to an intensification of the competitive environment in the domestic market – increase of the spreads offered and higher pressure on NIM), or by the sale of non-core assets. These measures are also expected to be maintained in the near future so that the confidence on financial system is recovered and banks liquidity is improved as well as its profitability by starting to have access to the wholesale funding markets again, which are associated with higher returns, instead of resourcing so much on the ECB funds.
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Potencial de uso agrícola de dois resíduos de agroindústria fumageira

Potencial de uso agrícola de dois resíduos de agroindústria fumageira

Brazil is one of the leaders in producing and trading tobacco leaves in the global market, with an amount of production over 800,000t annually (KBH & C, 2004). However, the industrial processing of tobacco leaves results in near 4% (35,000t per year) of byproducts with no commercial value at factories (KBH & C, 2004). The main byproducts of tobacco processing are dust (TPR D) and the stem fibers (TPR S), with nearly 95% and 5% of global amounts, respectively. The generation of dust (TPR D) and stem fibers (TPR S) depends mainly on leaves quality (e.g. position level on plants) and efficiency level of industrial processing unity. The major amounts of residues come from processing of Virginia Flue Cured (VFC) and Burley tobacco varieties.
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Are negative interest rates on bank credit possible?

Are negative interest rates on bank credit possible?

Before the global financial crisis, the world was supposedly “prepared” for an economic slowdown. Governments had space for fiscal stimulus, and perhaps more importantly, central banks (CBs) had room for conventional monetary policy. However, aggregate demand (AD) fell so much in the crisis that even cuts to zero of CB nominal interest rates were unable to bring economies back to full employment (FE). As a result, CBs had to opt for other monetary tools, mainly quantitative easing (purchase of sovereign and private bonds in exchange for newly created reserves) and forward guidance (providing information about future monetary policy decisions, in order to change the expectation of future short-term interest rates, and consequently influence today’s long-term interest rates).
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Winning the Oil Lottery: The Impact of Natural Resource Extraction on Growth Tiago Cavalcanti Daniel Da Mata Frederik Toscani

Winning the Oil Lottery: The Impact of Natural Resource Extraction on Growth Tiago Cavalcanti Daniel Da Mata Frederik Toscani

It is worth pointing out that the whole of Brazil went through a process of moving towards a higher share of services, a lower share of agriculture, more urbanization, and less informality. In our sample of municipalities in which drilling occurred, the share of services workers stood slightly below 0.1 in 1940 and had risen to over 0.3 in 2000, for example. Discovering oil accentuated this trend in a quantitatively important manner. The increase in the share of services workers we estimated translates to roughly half a standard deviation of the distribution in the sample in 2000. Similarly, the estimated 37 percent increase in the size of services firms corresponds to a quarter of the standard deviation of the distribution in 2000. The mean size was 9 workers, implying on average 3-4 additional workers per firm due to oil discoveries. Skilled wages are estimated to be about 20 percent higher in discovery MCAs. This corresponds to 150 Real per month, or one national minimum wage in 2000. In terms of low skilled wages we did not find any effect. Looking at the distribution we find that the average low skilled formal services sector wage in 2000 in our sample was above the national minimum wage. Given the very low income an informal subsistence farmer could expect, the opportunity to work at or above the legal minimum wage was a sufficient incentive to move to the urban agglomeration and enter the formal workforce.
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A Research on The Effects of Marketing Spending on Firm Value

A Research on The Effects of Marketing Spending on Firm Value

The purpose of this study is to investigate the influence of “Marketing Expenses” on firm value. The study uses data belonging to 120 firms, which are traded in Borsa Istanbul (BIST) in the period of 2009-2012. The independent variables used in the study consist of “Return on Assets” (ROA) and “Return on Equity” (ROE), which are accounting based performance indicators. The other is "Tobin's q" ratio which is market-based ratio. The regression and correlation analysis have been employed in empirical analyzes. The result of the conducted analysis showed that the increase in marketing expenses influences value of the firms in a positive way. As a result, organizations should accept the marketing expenses not only as a spending but also an investment as a value added to business.
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A study on effects of knowledge management on organizational entrepreneurship: A case study of educational system

A study on effects of knowledge management on organizational entrepreneurship: A case study of educational system

Knowledge management plays an important role in business development especially in educational system. The proposed study designs and distributes a questionnaire among experts who are involved in education systems in province of Tehran, Iran. The population of this survey includes 1680 people who are enrolled in administration levels of this province and using a simple sapling technique is calculated as 313. The questionnaire consists of 30 questions in Likert scale and there are six categories for the proposed study of this paper including the concept of knowledge, management, knowledge tools, knowledge measurement, change management, knowledge content. We have used LISREL software package to find the relationship between entrepreneurship and knowledge management components. Based on the results of this survey, knowledge content is number one priority followed by knowledge tools and concept of knowledge. The other factors including management, knowledge measurement and change management are in lower levels of importance.
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Effects of soil management systems on soil microbial activity, bulk density and chemical properties

Effects of soil management systems on soil microbial activity, bulk density and chemical properties

Also, the accentuated accumulation of P on no- tillage system was remarkable compared with other treatments. On the other hand, the lower ratios of Ca and K observed at the pasture or the medium ratios of these nutrients observed for conventional tillage probably occurred due to the losses caused by soil erosion and crop residues incorporation (Rheinheimer et al., 1998). In Brazil, many type of soil is phos- phate-limited for plant production. The larger inert reservoir of this mineral has been phosphate rock, but this reservoir is being increasingly tapped by the fertilizer industry. Usually, small and actively cycled reservoirs of phosphate are dissolved in living and dead organic matter. Most microbial P transforma- tions are performed as a transfer of inorganic to or- ganic phosphate or as transfer of phosphate from in- soluble, immobilized forms to soluble or mobile com- pounds (Atlas & Bartha, 1993). Therefore, the re- sults observed on the no-tillage system can be ex- plained by the fact that the soil on this system usu- ally provides a vertical deposition of crop residues, once it is not periodically revolved as well as it pre- sents high microbial activities (Table 1).
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Tree Species Composition and Harvest Intensity Affect Herbivore Density and Leaf Damage on Beech, Fagus sylvatica, in Different Landscape Contexts.

Tree Species Composition and Harvest Intensity Affect Herbivore Density and Leaf Damage on Beech, Fagus sylvatica, in Different Landscape Contexts.

Influence of forest management on leaf damage and herbivore density Despite the strong regional differences in herbivore communities, consistent effects of tree spe- cies composition (beech dominance) and harvest intensity on herbivore density and damage were found. This finding emphasizes the potential importance of forest management for inter- actions between beech trees and their arthropod herbivores in different environmental contexts and it augments information obtained from qualitative herbivory assessments [42]. The in- crease of damage to beech trees with beech dominance also suggests that some processes de- scribed by “associational resistance hypotheses” may hold for native Central European beech forests and are not restricted to agricultural [83, 84] or plantation [38, 45, 85] systems that are strongly influenced by land management. Associational resistance can be based on different processes, which may affect herbivores directly via plant traits such as suitability or apparency of focal plants (bottom-up processes), or via indirect effects on the herbivores’ enemies (top- down processes). Different bottom-up processes contribute to associational resistance (see [47, 48] for review of associational resistance hypotheses). As most of these hypotheses have been developed in short-lived agricultural systems—where initial host plant colonization is assum- edly more important than in long-lived, perennial systems such as forests—or in young experi- mental forests, it is still a matter of ongoing investigations how they apply to mature or near- natural forest systems.
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Effect of Annealing Time for Quenching CuAl7Fe5Ni5W2Si2 Bronze on the Microstructure and Mechanical Properties

Effect of Annealing Time for Quenching CuAl7Fe5Ni5W2Si2 Bronze on the Microstructure and Mechanical Properties

CuAl7Ni5Fe5W2Si2 bronze melted in a laboratory induction furnace crucible a capacity of 15 kg and frequency of 8 kHz. Each time charcoal was spread on the metallic charge, with the task of limiting access of oxygen to the liquid alloy. Alloy was withstand in a temperature of 1γ00°C ± 15°C. The slag covering and refining UNITOP BA-1 was dosed as follows: half of the slag was added to the so-called cold metallic charge, and the rest after melting the charge. After melting bronze and isothermal heating slag removed and refined N 2 for 5 min. Then added 0.6% of the
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Utopia University: A Faculty Member Reflects on Recommendations for the Future of SoTL

Utopia University: A Faculty Member Reflects on Recommendations for the Future of SoTL

Teaching cent ers can also be int egral in changing t he cam pus clim at e concerning t he scholarship of t eaching and learning. Working wit h facult y in t heir first year is one of t he fast est ways t o change t he accept ance of and expect at ion for SoTL. Hav e facult y w ho r egularly publish in t he ar ea of t eaching and learning shar e t hese exper iences w it h new facult y ( Richlin & Cox, 2004) . I n m y exper ience as a direct or, new er facult y are m ore likely t o have com e from graduat e progr am s w hich include t raining in pedagogy ; t herefore, t hey t end t o be m ore int er est ed in acquir ing new t eaching skills. I t is harder t o convince seasoned facult y t hat exam ining t eaching and learning issues is w ort hw hile, because m any do not believe t hey hav e som et hing new t o learn. Yet ev en t hose w ho have been in t he classroom for a long t im e can benefit from dialogue w it h facult y in t heir fir st fiv e years of t eaching. New facult y ar e oft en m ore educat ed in innovat ive pedagogical st rat egies, m ore current in t echnology , and m ore fam iliar wit h a syst em at ic approach t o exam ining t heir course st r engt hs and weaknesses because of t heir recent experiences wit h pedagogical inst ruct ion. One way t o encour age novice facult y and t heir experienced count er par t s t o t alk about t eaching is t o set up m ent or ing pairs ( McGr at h, 2012; Richlin & Cox , 2004; Tr ask, Mar ot z- Baden, Set t les, Gent r y, & Ber ke, 2009) . Experienced facult y share t heir k now ledge of inst it ut ional hist ory as w ell as t heir t hought s about t eaching, and newer facult y ask t heir quest ions and share w hat t eaching t echniques t hey hav e lear ned.
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Modeling and Analysis of Queuing Systems in Banks A case study of Ghana Commercial Bank Ltd. Kumasi Main Branch

Modeling and Analysis of Queuing Systems in Banks A case study of Ghana Commercial Bank Ltd. Kumasi Main Branch

Abstract: Queues are common sight of many banks in Ghana. The obvious implication of customers waiting in long and winding queues could result to prolonged discomfort and economic cost to them; however increasing the service rate will require additional number of tellers which implies extra cost to management. This study therefore attempts to find the trade-off between minimizing the total economic cost (waiting cost and service cost) and the provision of a satisfactory and reasonably shortest possible time of service to customers, in order to assist management of the bank in deciding the optimal number of tellers needed. Data for this study was collected at the Ghana Commercial Bank Ltd, Kumasi Main Branch for one month through observations, interviews and by administering of questionnaire and was formulated as multi-server single line queuing model. The data was analyzed using TORA optimization Software as well as using descriptive method of analysis. The performance measures of different queuing systems were evaluated and analyzed. The results of the analysis showed using a five teller system was better than a four or a six-teller system in terms of average waiting time and thetotal economic cost, hence the study recommends that, the management should adopt a five teller model to reduce total economic costs and increase customer satisfaction.
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A study on the effect of size and ratio of book value to market value on excessive return

A study on the effect of size and ratio of book value to market value on excessive return

of study and according to the second criterion; stock must be traded for at least 100 business days. The proposed variables of this study include the ratios of book value (BV) to market value (MV), BV/MV, size and excess of return. In summary, excess of return of share is dependent variable and excess of return of market along with BV and MV are considered as dependent variables. In this paper, trading volume refers to value of 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 of size, stocks are divided into two groups of big (B) and small (S) and in terms of the ratio of 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,
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BAR, Braz. Adm. Rev.  vol.14 número4

BAR, Braz. Adm. Rev. vol.14 número4

Barakat and Hussainey (2013) examine the impact of corporate governance mechanisms on the quality of operational risk disclosures in the annual reports of 63 publicly-listed European banks for the years 2008 and 2009. By using panel data regressions, their empirical results reveal that banks with a higher proportion of outside members on their board of directors are associated with higher operational risk disclosure quality. In addition, the results clarify that agency theory offsets management entrenchment theory in banks, as they show a positive association between the proportion of outstanding shares held by executive directors and operational risk disclosure quality. Furthermore, the study shows a positive relationship between a rigid legal system and the enforcement of senior management in providing their stakeholders with high quality operational risk information. Overall, this study confirms the positive impact of effective corporate governance mechanisms on operational risk disclosure quality, as well as the importance of considering the impact legal systems have on operational risk disclosure.
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