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Determinants of Financial Capital Use Review of Theories and Implications for Rural Businesses
No. 19, February 2012 Jarmila Curtiss Determinants of Financial Capital Use Review of theories and implications for rural businesses ABSTRACT This paper presents a review of financial economics literature and offers a comprehensive discussion and systematisation of determinants of financial capital use. In congruence with modern financial literature, it is acknowledged here that real and financial capital decisions are interdependent. While the fundamental role of the (unconstrained) demand for real capital in the demand for finance is acknowledged, the deliverable focuses on three complementary categories of the determinants of financial capital use: i) capital market imperfections; ii) factors mitigating these imperfections or their impacts; and iii) firm- and sector-related factors, which alter the severity of financial constraints and their effects. To address the question of the optimal choice of financial instruments, theories of firm capital structure are reviewed. The deliverable concludes with theory-derived implications for agricultural and non-agricultural rural business’ finance. FACTOR MARKETS Working Papers present work being conducted within the FACTOR MARKETS research project, which analyses and compares the functioning of factor markets for agriculture in the member states, candidate countries and the EU as a whole, with a view to stimulating reactions from other experts in the field. See the back cover for more information on the project. Unless otherwise indicated, the views expressed are attributable only to the authors -
Contingent-Claim-Based Expected Stock Returns∗
Contingent-Claim-Based Expected Stock Returns∗ Zhiyao Chen Ilya A. Strebulaev ICMA Centre Graduate School of Business University of Reading Stanford University and NBER ∗We thank Harjoat Bhamra, Chris Brooks, Wayne Ferson, Vito Gala, Andrea Gamba, Jo˜ao Gomes, Patrick Gagliardini, Chris Hennessy, Chris Juilliard, Nan Li, Rajnish Mehra, Stefan Nagel, Stavros Panageas, Marcel Prokopczuk, Michael Roberts, Ravindra Sastry, Stephan Siegel, Neal Stoughton, Yuri Tserlukevich, Kathy Yuan, Jeffrey Zwiebel and participants at the ASU Sonoran 2013 Winter Finance Conference, the European Financial Associations 2013 annual meetings and the American Financial Associations 2014 annual meetings for their helpful comments. Zhiyao Chen: ICMA Centre, University of Reading, UK, email: [email protected]; Ilya A. Strebulaev: Graduate School of Business, Stanford University, and NBER, email: [email protected]. Contingent-Claim-Based Expected Stock Returns Abstract We develop and test a parsimonious contingent claims model for cross-sectional returns of stock portfolios formed on market leverage, book-to-market equity, asset growth rate, and equity size. Since stocks are residual claims on firms’ assets that generate operating cash flows, stock returns are cash flow rates scaled by the sen- sitivities of stocks to cash flows. Our model performs well because the stock-cash flow sensitivities contain economic information. Value stocks, high-leverage stocks and low-asset-growth stocks are more sensitive to cash flows than growth stocks, low- leverage stocks and high-asset-growth stocks, particularly in recessions when default probabilities are high. Keywords: Stock-cash flow sensitivity, structural estimation, implied-state GMM, financial leverage, default probability, asset pricing anomalies JEL Classification: G12, G13, G33 2 1 Introduction Equity is a residual claim contingent on a firm’s assets that generate operating cash flows. -
Global Banking Private Placement
May 2019 – Issue 4 Credit Journal Global Banking Private Placement 1 2 3 Banks Regulation Non-Bank Financial Institutions PAGE 2 PAGE 8 PAGE 11 4 5 6 Meet the Analyst Global Focus News & Events Q&A with Kevin Duignan, Global Head of Financial Institutions Ratings PAGE 14 PAGE 16 PAGE 20 Welcome to Credit Journal – a curated compilation of Fitch Ratings’ in-depth research and commentary. This latest edition takes a deep dive into banks and non-bank financial institutions (NBFIs). With coverage of close to 3,000 banks, securities firms, finance and leasing companies, financial market infrastructure companies, business development companies (BDCs), and investment managers, we are a leading force in bank and NBFI ratings. We hope this issue, as well as future ones, serve as reliable resources and help you make more informed investment decisions. We welcome comments for future issues, including suggestions for topical or credit-specific research. For our latest insights, please visit fitchratings.com Welcome In this new edition of Fitch Ratings’ Credit Journal, I am pleased to share with you a snapshot of Fitch’s credit views in the Bank and Non-Bank Financial Institution (NBFI) sectors. With heightened challenges of growth, stability, and risk at the end of the credit cycle, creditworthiness considerations are a main focus for 2019, providing significant opportunity for us to convey value-added opinions and publish insightful bank and NBFI research. Covering close to 3,000 banks and NBFIs worldwide, we are proud to be a leading force in financial institutions ratings, widely accepted by issuers, investors, and other debt capital markets participants. -
Natwest Markets N.V. Annual Report and Accounts 2020 Financial Review
NatWest Markets N.V. Annual Report and Accounts 2020 Financial Review Page Description of business Financial review NWM N.V., a licensed bank, operates as an investment banking firm serving corporates and financial institutions in the European Economic Presentation of information 2 Area (‘EEA’). NWM N.V. offers financing and risk solutions which 2 Description of business includes debt capital markets and risk management, as well as trading 2 Performance overview and flow sales that provides liquidity and risk management in rates, Impact of COVID-19 3 currencies, credit, and securitised products. NWM N.V. is based in Chairman's statement 4 Amsterdam with branches authorised in London, Dublin, Frankfurt, Summary consolidated income statement 5 Madrid, Milan, Paris and Stockholm. Consolidated balance sheet 6 On 1 January 2017, due to the balance sheet reduction, RBSH 7 Top and emerging risks Group’s regulation in the Netherlands, and supervision responsibilities, Climate-related disclosures 8 transferred from the European Central Bank (ECB), under the Single Risk and capital management 11 Supervisory Mechanism. The joint Supervisory Team comprising ECB Corporate governance 43 and De Nederlandsche Bank (DNB) conducted the day-to-day Financial statements prudential supervision oversight, back to DNB. The Netherlands Authority for the Financial Markets, Autoriteit Financiële Markten Consolidated income statement 52 (AFM), is responsible for the conduct supervision. Consolidated statement of comprehensive income 52 Consolidated balance sheet 53 UK ring-fencing legislation Consolidated statement of changes in equity 54 The UK ring-fencing legislation required the separation of essential Consolidated cash flow statement 55 banking services from investment banking services from 1 January Accounting policies 56 2019. -
A Framework for Statistical Network Modeling
A FRAMEWORK FOR STATISTICAL NETWORK MODELING By Harry Crane and Walter Dempsey Rutgers University and University of Michigan Basic principles of statistical inference are commonly violated in network data analysis. Under the current approach, it is often impossi- ble to identify a model that accommodates known empirical behaviors, possesses crucial inferential properties, and accurately models the data generating process. In the absence of one or more of these properties, sensible inference from network data cannot be assured. Our proposed framework decomposes every network model into a (relatively) exchangeable data generating process and a sampling mecha- nism that relates observed data to the population network. This frame- work, which encompasses all models in current use as well as many new models, such as edge exchangeable and relationally exchangeable models, that lie outside the existing paradigm, offers a sound context within which to develop theory and methods for network analysis. 1. Introduction. A statistical model, traditionally defined [15, 40, 41], is a family of probability distributions on the sample space of all maps M S from the set of statistical units into the response space . Some other au- U R thors discuss statistical modeling from various perspectives [21, 28, 41], but none of these prior accounts directly addresses the specific challenges of network modeling, namely the effects of sampling on network data and its subsequent impact on inference. In fact, these issues are hardly even men- tioned in the statistical literature on networks, a notable exception being the recent analysis of sampling consistency for the exponential random graph model [46]. Below we address both logical and practical concerns of statisti- cal inference as well as clarify how specific attributes of network modeling fit within the usual statistical paradigm. -
An Empirical Comparison of Interest Rate Models for Pricing Zero Coupon Bond Options
AN EMPIRICAL COMPARISON OF INTEREST RATE MODELS FOR PRICING ZERO COUPON BOND OPTIONS HUSEYÄ IN_ S»ENTURKÄ AUGUST 2008 AN EMPIRICAL COMPARISON OF INTEREST RATE MODELS FOR PRICING ZERO COUPON BOND OPTIONS A THESIS SUBMITTED TO THE GRADUATE SCHOOL OF APPLIED MATHEMATICS OF THE MIDDLE EAST TECHNICAL UNIVERSITY BY HUSEYÄ IN_ S»ENTURKÄ IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN THE DEPARTMENT OF FINANCIAL MATHEMATICS AUGUST 2008 Approval of the Graduate School of Applied Mathematics Prof. Dr. Ersan AKYILDIZ Director I certify that this thesis satis¯es all the requirements as a thesis for the degree of Master of Science. Prof. Dr. Ersan AKYILDIZ Head of Department This is to certify that we have read this thesis and that in our opinion it is fully adequate, in scope and quality, as a thesis for the degree of Master of Science. Assist. Prof. Dr. Kas³rga Y³ld³rak Assist. Prof. Dr. OmÄurU¸gurÄ Co-advisor Supervisor Examining Committee Members Assist. Prof. Dr. OmÄurU¸gurÄ Assist. Prof. Dr. Kas³rga Y³ld³rak Prof. Dr. Gerhard Wilhelm Weber Assoc. Prof. Dr. Azize Hayfavi Dr. C. Co»skunKÄu»cÄukÄozmen I hereby declare that all information in this document has been obtained and presented in accordance with academic rules and ethical conduct. I also declare that, as required by these rules and conduct, I have fully cited and referenced all material and results that are not original to this work. Name, Last name: HÄuseyinS»ENTURKÄ Signature: iii abstract AN EMPIRICAL COMPARISON OF INTEREST RATE MODELS FOR PRICING ZERO COUPON BOND OPTIONS S»ENTURK,Ä HUSEYÄ IN_ M.Sc., Department of Financial Mathematics Supervisor: Assist. -
Kicking the Bucket Shop: the Model State Commodity Code As the Latest Weapon in the State Administrator's Anti-Fraud Arsenal, 42 Wash
Washington and Lee Law Review Volume 42 | Issue 3 Article 6 Summer 6-1-1985 Kicking the Bucket Shop: The oM del State Commodity Code as the Latest Weapon in the State Administrator's Anti-Fraud Arsenal Julie M. Allen Follow this and additional works at: https://scholarlycommons.law.wlu.edu/wlulr Part of the Securities Law Commons Recommended Citation Julie M. Allen, Kicking the Bucket Shop: The Model State Commodity Code as the Latest Weapon in the State Administrator's Anti-Fraud Arsenal, 42 Wash. & Lee L. Rev. 889 (1985), https://scholarlycommons.law.wlu.edu/wlulr/vol42/iss3/6 This Article is brought to you for free and open access by the Washington and Lee Law Review at Washington & Lee University School of Law Scholarly Commons. It has been accepted for inclusion in Washington and Lee Law Review by an authorized editor of Washington & Lee University School of Law Scholarly Commons. For more information, please contact [email protected]. KICKING THE BUCKET SHOP: THE MODEL STATE COMMODITY CODE AS THE LATEST WEAPON IN THE STATE ADMINISTRATOR'S ANTI-FRAUD ARSENAL JuIE M. ALLEN* In April 1985, the North American Securities Administrators Association adopted the Model State Commodity Code. The Model Code is designed to regulate off-exchange futures and options contracts, forward contracts, and other contracts for the sale of physical commodities but not exchange-traded commodity futures contracts or exchange-traded commodity options. Specif- ically, the Model Code addresses the problem of boiler-rooms and bucket shops-that is, the fraudulent sale of commodities to the investing public. -
Fictitious Capital and the Elusive Quest in Understanding Its Implications: Illusions and Paradoxes*
CADMUS, Volume 2, No.3, October 2014, 55-65 Fictitious Capital and the Elusive Quest in Understanding its Implications: Illusions and Paradoxes* Joanílio Rodolpho Teixeira Fellow, World Academy of Art & Science; Emeritus Professor, University of Brasilia, Brazil Paula Felix Ferreira Post-graduate Student, Autonomous University of Madrid, Spain Abstract This paper deals with the interaction between fictitious capital and the neoliberal model of growth and distribution, inspired by the classical economic tradition. Our renewed interest in this literature has a close connection with the recent international crisis in the capitalist economy. However, this discussion takes as its point of departure the fact that standard eco- nomic theory teaches that financial capital, in this world of increasing globalization, leads to new investment opportunities which improve levels of growth, employment, income distribu- tion, and equilibrium. Accordingly, it is said that such financial resources expand the welfare of people and countries worldwide. Here we examine some illusions and paradoxes of such a paradigm. We show some theoretical and empirical consequences of this vision, which are quite different and have harmful constraints. 1. Introduction There is an extensive controversy concerning traditional models of economic equi- librium and new development paradigms based on an interdisciplinary, broader study of economics. When faced with the harmful effects of misguided directives in an economic and global sense, theorists have the obligation not only to explain their causes, but also to offer a practical solution or alternate thinking. After all, consistent levels of poverty, unemploy- ment and low growth are results which were not expected in orthodox economic models of equilibrium and should be dealt with instead of being thrown aside as a politically restricted issue. -
A Guide to Accountancy and Tax Issues for Financial Brokers
Financial Broker The Financial Broker Guide to Accountancy and Tax One – Unified Voice A Guide to Accountancy and Tax Issues for Financial Brokers Creating your success through Financial Planning Creating your success through Page 1 Financial Planning Financial Broker The Financial Broker Guide to Accountancy and Tax A Guide to Accountancy and Tax Issues for Financial Brokers How to develop and deliver a structured and creative marketing plan to boost the income levels of your business April 2019 Creating your success through FinancialCreating your Planning success through PagePage 01 2 Financial Planning Financial Broker The Financial Broker Guide to Accountancy and Tax Contents About the Authors 4 Introduction 5 Definitions 6 Section 1 Sole Trader versus Limited Company Structure for Financial Brokers 8 Section 2 Content of Accounts 11 Section 3 Central Bank Requirements for Audited Accounts and Solvency 13 Section 4 Recognition of Revenue 18 Section 5 VAT on Fees 23 Section 6 Cash Extraction 25 Section 7 Buy-Out of an Agency & Treatment of Assets Acquired 29 Section 8 Taxes on Sale/Purchase of a Financial Brokerage 34 Section 9 Close Company Surcharge 40 Section 10 Consultants: Contract of Service (Employee) vs Contract for Services (Self-Employed) 42 Section 11 PAYE System/Payments to Employees 44 Civil Service Subsistence Rates for absences within the State 47 Civil Service Subsistence Rates for absences outside the State 49 Civil Service Kilometric Rates 50 Companies prohibited from filing Abridged Accounts 51 Publications Version 1 published in 2012, authors Aidan Byrne and Brian Hyland, RSM Ireland Version 2 updated by Suzanne O’Neill, RSM Ireland and republished in 2016 Version 3 updated by Suzanne O’Neill, RSM Ireland and republished in 2019 Creating your success through Page 3 Financial Planning Financial Broker The Financial Broker Guide to Accountancy and Tax About the Authors RSM RSM is a leading mid-tier firm of accountants and business advisors in Ireland, and an independent member of the sixth largest global audit, tax and consultancy network. -
Decreto Del Direttore Amministrativo N
Corso di Laurea magistrale (ordinamento ex D.M. 270/2004) in Economia e Finanza Tesi di Laurea Gli strumenti derivati ed il loro utilizzo in azienda: l’importanza di gestirne i vantaggi e le complessità Relatore Prof. Guido Massimiliano Mantovani Laureando Ambra Moschini Matricola:835318 Anno Accademico 2013 / 2014 Sessione straordinaria 2 Indice Indice delle Figure ....................................................................................................................... 6 Indice delle Tavole ...................................................................................................................... 7 Introduzione ................................................................................................................................. 8 Capitolo 1 - Il concetto di rischio ............................................................................................. 11 1.1. Definizione .................................................................................................................. 12 1.2. La percezione del rischio in azienda ........................................................................... 16 1.3. Identificazione delle categorie di rischio .................................................................... 24 1.3.1. Rischi finanziari .................................................................................................. 26 1.3.1.1. Rischio di mercato ............................................................................................... 28 1.3.1.1.1. Rischio di -
This Offering Memorandum Constitutes an Offering of the Securities
This Offering Memorandum constitutes an offering of the securities described herein in all provinces and territories of Canada and only to whom they may be lawfully offered for sale and is not, and under no circumstances is to be construed as, a prospectus or public offering of such securities or advertisement relating to units of the funds described herein. No securities commission or similar authority in Canada has in any way passed upon the merits of the securities offered hereunder nor has it reviewed this Offering Memorandum and any representation to the contrary is an offence. As there is no market for these securities, it may be difficult or even impossible for investors to sell these securities. They may sell them only pursuant to an exemption prescribed by the securities legislation of their particular province or territory or with a prospectus or with the granting of an exemption. The securities, however, may be redeemed in accordance with the provisions of this offering memorandum. ARROW DIVERSIFIED FUND BROADVIEW DARK HORSE LONG/SHORT FUND CURVATURE MARKET NEUTRAL FUND EAST COAST INVESTMENT GRADE II FUND HIRSCH PERFORMANCE FUND LAZARD GLOBAL CREDIT FUND LAZARD GLOBAL CREDIT II FUND SG U.S. MARKET NEUTRAL FUND _______________________________ Offering Memorandum _______________________________ January 29, 2016 TABLE OF CONTENTS GLOSSARY OF TERMS ..................................................................................................................................................................................................... -
Foreign Exchange Rate Risk in Microfinance
FocusNote NO. 31 JANUARY 2006 FOREIGN EXCHANGE RATE RISK IN MICROFINANCE: WHAT IS IT AND HOW CAN IT BE MANAGED? Introduction Many borrowing microfinance institutions (MFIs) are not adequately managing their The authors of this Focus Note exposure to foreign exchange rate risk. There are at least three components of foreign are Scott Featherston, consult- exchange rate risk: (1) devaluation or depreciation risk, (2) convertibility risk, and (3) ant, Elizabeth Littlefield, CEO transfer risk. CGAP, and Patricia Mwangi, microfinance specialist, CGAP. Devaluation or depreciation risk typically arises in microfinance when an MFI acquires debt in a foreign currency, usually U.S. dollars (USD) or euros, and then lends CGAP, the Consultative Group those funds in domestic currency (DC). The MFI then possesses a liability in a hard to Assist the Poor, is a currency and assets in a DC (in which case, an MFI’s balance sheet is said to contain a consortium of 31 development agencies that support “currency mismatch”). Fluctuations in the relative values of these two currencies can microfinance. More information adversely affect the financial viability of the organization. is available on the CGAP Convertibility risk is another possible component of foreign exchange risk. For the Web site: www.cgap.org. purposes of this note, convertibility risk refers to the risk that the national government will not sell foreign currency to borrowers or others with obligations denominated in hard currency. Transfer risk refers to the risk that the national government will not allow foreign currency to leave the country regardless of its source. Since MFIs operate in developing countries where the risk of currency depreciation is highest, they are particularly vulnerable to foreign exchange rate risk.