WorldWideScience

Sample records for assets investment timing

  1. Transmission assets investment timing using net present value curves

    International Nuclear Information System (INIS)

    Garcia, Reinaldo C.; Contreras, Javier; Correia, Pedro F.; Munoz, Jose I.

    2010-01-01

    Improvement and expansion of the transmission grid is still an unresolved issue in the new competitive environment. In current electricity markets, transmission lines have become assets that need financial instruments for investors who wish to ensure steady long-term returns and to withstand short-term market volatility. The timing and the combination of new transmission investments is key to analyze their long-term effects. This paper presents the concept of net present value (NPV) curve to estimate the best investment time for the investor, where the curve is constructed by calculating the NPVs resulting from the investment in successive years. A specific contract model based on financial transmission rights (FTR) is used for the NPV evaluation of transmission assets, and the stochastic properties of all variables related to the investment market structure are considered. The model is applied to the IEEE 24-bus Reliability Test System (RTS) showing the approach capabilities as a decision-aid tool for transmission investors.

  2. Investment horizons : A time-dependent measure of asset performance

    OpenAIRE

    Ingve Simonsen; Anders Johansen; Mogens H. Jensen

    2005-01-01

    We review a resent {\\em time-dependent} performance measure for economical time series -- the (optimal) investment horizon approach. For stock indices, the approach shows a pronounced gain-loss asymmetry that is {\\em not} observed for the individual stocks that comprise the index. This difference may hint towards an synchronize of the draw downs of the stocks.

  3. Investment in Transportation Assets : Briefing Paper

    Science.gov (United States)

    2017-11-21

    Highways, streets, railroad lines, transit systems, ports, and other transportation fixed assets enable the movement of people and goods. Investment in transportation fixed assets helps build and maintain these critical resources. The pattern of tran...

  4. Asset pricing with index investing

    OpenAIRE

    Georgy Chabakauri; Oleg Rytchkov

    2014-01-01

    We provide a novel theoretical analysis of how index investing affects capital market equilibrium. We consider a dynamic exchange economy with heterogeneous investors and two Lucas trees and find that indexing can either increase or decrease the correlation between stock returns and in general increases (decreases) volatilities and betas of stocks with larger (smaller) market capitalizations. Indexing also decreases market volatility and interest rates, although those effects are weak. The im...

  5. The Role of Agribusiness Assets in Investment Portfolios

    OpenAIRE

    Johnson, Michael; Malcolm, Bill; O'Connor, Ian

    2006-01-01

    Investment in agribusiness assets has grown significantly in recent years. The question of interest is whether including agribusiness assets in investment portfolios provide benefits. The effects of diversification by including agribusiness assets in two investment portfolios, a mixed asset portfolio and a diversified share portfolio was investigated using Markowitz’s (1952) Modern Portfolio Theory (MPT) of mean-variance optimization. To measure the performance of agribusiness assets, an in...

  6. Asset liquidity, corporate investment, and endogenous financing costs

    DEFF Research Database (Denmark)

    Flor, Christian Riis; Hirth, Stefan

    2013-01-01

    We analyze how the liquidity of real and financial assets affects corporate investment. The trade-off between liquidation costs and underinvestment costs implies that low-liquidity firms exhibit negative investment sensitivities to liquid funds, whereas high-liquidity firms have positive sensitiv......We analyze how the liquidity of real and financial assets affects corporate investment. The trade-off between liquidation costs and underinvestment costs implies that low-liquidity firms exhibit negative investment sensitivities to liquid funds, whereas high-liquidity firms have positive...... sensitivities. If real assets are not divisible in liquidation, firms with high financial liquidity optimally avoid external financing and instead cut new investment. If real assets are divisible, firms use external financing, which implies a lower sensitivity. In addition, asset redeployability decreases...... the investment sensitivity. Our findings demonstrate that asset liquidity is an important determinant of corporate investment....

  7. Determinants of investment in fixed assets and in intangible assets for high-tech firms

    Directory of Open Access Journals (Sweden)

    Paulo Maçãs Nunes

    2017-05-01

    Full Text Available Based on a sample of 141 Portuguese high-tech firms for the period 2004-2012 and using GMM system (1998 and LSDVC (2005 dynamic estimators, this paper studies whether the determinants of high-tech firms’ investment in fixed assets are identical to the determinants of their investment in intangible assets. The multiple empirical evidence obtained allows us to conclude that the determinants of their investment in fixed assets are considerably different from those of their investment in intangible assets. Debt is a determinant stimulating investment in fixed assets, with age being a determinant restricting such investment. Size, age, internal finance and GDP are determinants stimulating investment in intangible assets, whereas debt and interest rates restrict such investment. These results let us make important suggestions for the owners/managers of high-tech firms, and also for policy-makers.

  8. 31 CFR 223.7 - Investment of capital and assets.

    Science.gov (United States)

    2010-07-01

    ... 31 Money and Finance: Treasury 2 2010-07-01 2010-07-01 false Investment of capital and assets. 223... WITH THE UNITED STATES § 223.7 Investment of capital and assets. The cash capital and other funds of... periodically issue instructions for the guidance of companies with respect to investments and other matters...

  9. The Q theory of investment, the capital asset pricing model, and asset valuation: a synthesis.

    Science.gov (United States)

    McDonald, John F

    2004-05-01

    The paper combines Tobin's Q theory of real investment with the capital asset pricing model to produce a new and relatively simple procedure for the valuation of real assets using the income approach. Applications of the new method are provided.

  10. A dynamic decision model for portfolio investment and assets management

    Institute of Scientific and Technical Information of China (English)

    QIAN Edward Y.; FENG Ying; HIGGISION James

    2005-01-01

    This paper addresses a dynamic portfolio investment problem. It discusses how we can dynamically choose candidate assets, achieve the possible maximum revenue and reduce the risk to the minimum level. The paper generalizes Markowitz's portfolio selection theory and Sharpe's rule for investment decision. An analytical solution is presented to show how an institutional or individual investor can combine Markowitz's portfolio selection theory, generalized Sharpe's rule and Value-at-Risk(VaR) to find candidate assets and optimal level of position sizes for investment (dis-investment). The result shows that the generalized Markowitz's portfolio selection theory and generalized Sharpe's rule improve decision making for investment.

  11. DYNAMICS OF ASSETS AND INVESTMENTS IN ROMANIA VOLUNTARY PENSION FUNDS

    Directory of Open Access Journals (Sweden)

    CONSTANTIN DURAC

    2016-10-01

    Full Text Available In most countries, private pensions have an increasingly more important place in the current pension systems. Their importance consist on the one hand, by their contribution that have to preserve a level of income in retirement, comparable to the active period, and on the other side, by the amounts collected from the participants and investments in various investment instruments. In this article I analyze the overall evolution of total assets and net assets on 30 September 2007 - September 30, 2016, and dynamics of the main investment instruments in which pension funds have made investments optional.

  12. 75 FR 47318 - GE Asset Management Incorporated and GE Investment Distributors, Inc.; Notice of Application and...

    Science.gov (United States)

    2010-08-05

    ...] GE Asset Management Incorporated and GE Investment Distributors, Inc.; Notice of Application and.... Applicants: GE Asset Management Incorporated (``GEAM'') and GE Investment Distributors, Inc. (``GEID... of Investment Management, Office of Investment Company Regulation). SUPPLEMENTARY INFORMATION: The...

  13. THE INTANGIBLE ASSETS INVESTMENTS. CHARACTERISTICS AND THE ACCOUNTING TREATMENT

    Directory of Open Access Journals (Sweden)

    Prediscan Mariana

    2011-07-01

    Full Text Available In the knowledge-based economy the fundamental determinants of the enterprise value, in the present, have an intangible nature. The intangible investments are the most important factors of the enterprise success. Wealth, growth and welfare are driven nowadays by intangible investments. The knowledge economy is characterized by huge investments in human capital and informational technology. Despite of the increased importance of intangible assets, as the source of the firm` competitive advantages, the information regarding these kind of assets, both available in the inside of the firm and, which is presented to the externals, is pour. In this paper I present the reasons for this situation.

  14. 77 FR 67029 - Arden Investment Series Trust and Arden Asset Management LLC; Notice of Application

    Science.gov (United States)

    2012-11-08

    ... Investment Series Trust and Arden Asset Management LLC; Notice of Application November 2, 2012. AGENCY... disclosure requirements. Applicants: Arden Investment Series Trust (the ``Trust'') and Arden Asset Management... Company Regulation, Division of Investment Management). SUPPLEMENTARY INFORMATION: The following is a...

  15. The current investment climate for midstream gas processing assets

    International Nuclear Information System (INIS)

    Brouwer, R.J.

    1999-01-01

    Topics discussed in this paper dealing with the current investment climate for midstream gas processing assets include: (1) strategic reasons to retain or divest midstream assets, (2) available options for midstream asset divestment, (3) midstream market fundamentals, and (4) financial performance of midstream companies. There are some 700 gas plants in Alberta at present, of which about 20 per cent are owned by midstream companies . About one half of the plants are smaller than 12.5 MMCFD which represent inefficient use of resources; a clear indication that there are substantial opportunities for consolidation. 1 tab., 4 figs

  16. Success in Investing: Integrating Spending Policy into Asset Allocation Strategy.

    Science.gov (United States)

    Morrell, Louis R.

    1996-01-01

    Successful college and university investments hinge on an asset allocation strategy capable of meeting the institution's needs for income and growth in principal at the lowest possible risk. Periodic adjustments must be made when there is a shift in the institution's risk tolerance, modification in need for income distribution, and changes in…

  17. Locus of control and investment in risky assets

    NARCIS (Netherlands)

    Salamanca Acosta, N.; de Grip, A.; Fouarge, D.; Montizaan, R.M.

    2013-01-01

    Using representative household panel data, we show that the investment behavior of households is related to the economic locus of control of household heads. A household’s internal locus of control in economic issues is positively related to its decision to hold risky assets as well as its share of

  18. Locus of control and investment in risky assets

    NARCIS (Netherlands)

    Salamanca, N.; de Grip, A.; Fouarge, D.; Montizaan, R.M.

    2013-01-01

    Using representative household panel data, we show that the investment behavior of households is related to the economic locus of control of household heads. A household's internal locus of control in economic issues is positively related to its decision to hold risky assets as well as its share of

  19. 29 CFR 2520.103-11 - Assets held for investment purposes.

    Science.gov (United States)

    2010-07-01

    ... Securities Exchange Act of 1934 or quoted on NASDAQ; (3) Assets held for investment purposes shall not... assets held for investment purposes the 1,000 shares of stock S under paragraph (b)(1) of this section... 29 Labor 9 2010-07-01 2010-07-01 false Assets held for investment purposes. 2520.103-11 Section...

  20. Investment of Vehicle Fixed Asset Investment on improving profitability (Case study of Parahyangan Express Karawang Branch

    Directory of Open Access Journals (Sweden)

    Sri Suartini

    2018-03-01

    Full Text Available The purpose of this study is to determine how much influence has fixed asset investment in profitability of Parahyangan Express Karawang Branch. This research uses the descriptive method with primary data source of Parahyangan Express Karawang Branch between 2007 - 2016. The result of this research is r average investment value of Parahyangan Express in the period 2007 until 2016. Parahyangan Express in the period 2007 to 2016 tends to decline. Based on test results t comparison t arithmetic with t table showing 2.840> 2.093 t count more than t table. The percentage of influence of fixed asset investment of 30% means 30 % development of profitability. Parahyangan Express is influenced by in-kind fixed assets while 70 % is influenced by other factors not examined in this study.

  1. Optimising investment in asset management using the multivariate asset management assessment topography

    Directory of Open Access Journals (Sweden)

    Bam, Wouter Gideon

    2014-08-01

    Full Text Available The multivariate asset management assessment topography (MAMAT was developed to quantify, and represent graphically, development, adoption, and performance of a business’ asset management (AM systems, as described by standards such as PAS 55. The MAMAT provides a way to visualise clearly the strengths and weaknesses of a business’ asset management system. Building on MAMAT, a model describing the relationship between the commitment of resources and the corresponding improvement in the MAMAT assessment outcome is proposed. The goal is to develop an optimisation model that will maximise financial benefits by improving the MAMAT assessment score achieved by a business, while minimising the investment required to attain this improvement. This is achieved by determining the optimal allocation of resources to the different subcategories of the MAMAT assessment framework. The multi-objective cross-entropy method (MOO CEM is used to find the Pareto set of solutions for this problem. In order to showcase the intended industry application and use of the optimisation model, a hypothetical case study is executed and described in this paper. From this application, it was found that the MOO CEM finds useful solutions that can support the implementation of standards such as PAS 55 by prioritising and assigning resources to implementation activities.

  2. Selection of asset investment models by hospitals: examination of influencing factors, using Switzerland as an example.

    Science.gov (United States)

    Eicher, Bernhard

    2016-10-01

    Hospitals are responsible for a remarkable part of the annual increase in healthcare expenditure. This article examines one of the major cost drivers, the expenditure for investment in hospital assets. The study, conducted in Switzerland, identifies factors that influence hospitals' investment decisions. A suggestion on how to categorize asset investment models is presented based on the life cycle of an asset, and its influencing factors defined based on transaction cost economics. The influence of five factors (human asset specificity, physical asset specificity, uncertainty, bargaining power, and privacy of ownership) on the selection of an asset investment model is examined using a two-step fuzzy-set Qualitative Comparative Analysis. The research shows that outsourcing-oriented asset investment models are particularly favored in the presence of two combinations of influencing factors: First, if technological uncertainty is high and both human asset specificity and bargaining power of a hospital are low. Second, if assets are very specific, technological uncertainty is high and there is a private hospital with low bargaining power, outsourcing-oriented asset investment models are favored too. Using Qualitative Comparative Analysis, it can be demonstrated that investment decisions of hospitals do not depend on isolated influencing factors but on a combination of factors. Copyright © 2016 John Wiley & Sons, Ltd. Copyright © 2016 John Wiley & Sons, Ltd.

  3. Applicability of Investment and Profitability Effects in Asset Pricing Models

    Directory of Open Access Journals (Sweden)

    Márcio André Veras Machado

    2017-11-01

    Full Text Available This study aims to investigate whether investment and profitability are priced and if they partially explain the variations of stock returns in the Brazilian stock market, according to the Fama and French’s (2015 five-factor model. By using time series and cross-section regression, we found that book-to-market, momentum and liquidity are associated with stock returns whereas investment and profitability were not significant. We also found that there is no investment premium in Brazil. Therefore, motivated by the importance of B/M, momentum and liquidity to the Brazilian stock market, as well as by the poor performance of profitability and investment, we document that Keene and Peterson’s (2007 five-factor model is superior to all other models, especially the five-factor model by Fama and French (2015.

  4. Return on Knowledge Assets: Rethinking Investments in Educational Technology.

    Science.gov (United States)

    Watkins, Karen E.; Callahan, Mary Wilson

    1998-01-01

    Presents various ways of understanding knowledge and intellectual capital and the assets they produce. Considers implications of assessing the return on educational technologies as organizational knowledge assets. Presents a case study to illustrate how an educational technology application might help capture the benefits of knowledge capital.…

  5. The instrument of asset securitization on the basis of investment funds

    Directory of Open Access Journals (Sweden)

    O.S. Novak

    2015-03-01

    Full Text Available This article explores the instruments of asset securitization on the basis of investment funds According to the proposed national model of asset securitization on the basis of investment funds developed the financial instruments, which provide its implementation. Depending on the opportunities the payment management proposed to service the operations of asset securitization by investment certificates with replenishment and without the possibility of replenishment. The use of financial instruments without the possibility of replenishment envisages a simple and low-cost operation of redirecting funds from the originator to the investors in the form of investment income by certification of securitization fund. The instruments with replenishment allow not only to redirect payments for operations of assets securitization, but also to manage them in order to minimize risks.

  6. The Impact of Assets-in-Place on Corporate Financing and Investment Decisions

    DEFF Research Database (Denmark)

    Clausen, Saskia; Flor, Christian Riis

    2015-01-01

    assets-in-place) mainly use debt financing, whereas young high-growth firms (without assets-in-place) frequently use equity financing and signal their type by early investment. Simulation analyses conrm this and our model is thus able to explain empirical patterns which contradict the static pecking...

  7. Precommitted Investment Strategy versus Time-Consistent Investment Strategy for a Dual Risk Model

    Directory of Open Access Journals (Sweden)

    Lidong Zhang

    2014-01-01

    Full Text Available We are concerned with optimal investment strategy for a dual risk model. We assume that the company can invest into a risk-free asset and a risky asset. Short-selling and borrowing money are allowed. Due to lack of iterated-expectation property, the Bellman Optimization Principle does not hold. Thus we investigate the precommitted strategy and time-consistent strategy, respectively. We take three steps to derive the precommitted investment strategy. Furthermore, the time-consistent investment strategy is also obtained by solving the extended Hamilton-Jacobi-Bellman equations. We compare the precommitted strategy with time-consistent strategy and find that these different strategies have different advantages: the former can make value function maximized at the original time t=0 and the latter strategy is time-consistent for the whole time horizon. Finally, numerical analysis is presented for our results.

  8. Time Consistent Strategies for Mean-Variance Asset-Liability Management Problems

    Directory of Open Access Journals (Sweden)

    Hui-qiang Ma

    2013-01-01

    Full Text Available This paper studies the optimal time consistent investment strategies in multiperiod asset-liability management problems under mean-variance criterion. By applying time consistent model of Chen et al. (2013 and employing dynamic programming technique, we derive two-time consistent policies for asset-liability management problems in a market with and without a riskless asset, respectively. We show that the presence of liability does affect the optimal strategy. More specifically, liability leads a parallel shift of optimal time-consistent investment policy. Moreover, for an arbitrarily risk averse investor (under the variance criterion with liability, the time-diversification effects could be ignored in a market with a riskless asset; however, it should be considered in a market without any riskless asset.

  9. Investments

    CERN Document Server

    Bodie, Zvi; Marcus, Alan J.

    2017-01-01

    The integrated solutions for Bodie, Kane, and Marcus' Investments set the standard for graduate/MBA investments textbooks. The unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The content places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts. Connect is the only integrated learning system that empowers students by continuously adapting to deliver precisely what they need, when they need it, and how they need it, so that your class time is more engaging and effective.

  10. 17 CFR 270.17f-5 - Custody of investment company assets outside the United States.

    Science.gov (United States)

    2010-04-01

    ...-owned direct or indirect subsidiary of a U.S. Bank or bank-holding company. (2) Foreign Assets means any investments (including foreign currencies) for which the primary market is outside the United States, and any... investments. (3) Foreign Custody Manager means a Fund's or a Registered Canadian Fund's board of directors or...

  11. Investments in fixed assets and depreciation of fixed assets: theoretical and practical aspects of study and analysis

    Directory of Open Access Journals (Sweden)

    Irina D. Demina

    2017-01-01

    Full Text Available It is indicated that domestic economy is experiencing a shortage of investment.The acceleration of the processes of import substitution is one of the most important challenges facing the domestic economy at present.Investments, especially capital investments and related investment relations constitute the basis for the development of the national economy and improving the efficiency of social production as a whole. A problem of formation of the amortization fundremains actual at the moment. In the modern scientific and educational literature amortization fund means the fund, including the use of funds to complete the restoration and repair of the fixed assets. This paper makesthe analysis of the situation in the area of investment in the fixed capital, which has developed in Russia for the past severalyears. The aim of this paper is to study the investment climate in the country based on the analysis of investments in the fixed capital by the sources of financing and types of the economic activity. The work is based on dynamic and structural analysis of analytical and statistical information on the processes occurring in this field.As a result, it can be noted that in spite of a number of efforts being made, in general, there are low growth rates in industry, there is a deficit of investments in the fixed assets. Most of the investments in fixed assets are carried out at the expense of the organizations’ own funds. A significant number of economic entities do not have the means, necessary for the technological renewal. Unfortunately, the regulatory framework in the field of accounting for the fixed assets and accrual of depreciation does not imply the use of a special account for the accumulation, and, most importantly, for the purposeful control of the use of the depreciation fund.First of all, it is necessary for companies with state participation and monopoly organizations. The lack of control over the targeted use of the depreciation fund

  12. The Intangible Assets of Korean Manufacturing Firms for Foreign Direct Investment

    Directory of Open Access Journals (Sweden)

    Sunghoon Hong

    2004-12-01

    Full Text Available This paper attempts to apply the intangible assets approach to the emerging multinational enterprises of Korea. More specifically, it tries to empirically analyze whether Korean firms investing in foreign markets possess more advanced intangible assets than those investing only in the domestic market, and whether Korean firms exploit different types of tangible assets in different host regions. The following conclusions have been drawn by analyzing the data on Korea manufacturing firms listed on the Stock Exchange. First, firms investing in foreign markets possess more advanced intangible assets than domestic market-oriented ones. More specifically, firms investing in the Western developed region are shown to be superior in the economies of scale, R&D, advertising intensity, capital intensity, and interfirm linkages, whereas those investing in the Asian developing region are superior only in the economies of scale and organizational skills. This implies that Korean firms operating in developed countries seem to exploit a wider range of intangible assets to address intense competition and sophisticated demand in the host markets. And, when firms investing in the developed and developing regions are compared directly, the former group are found to exploit technological capability and interfirm linkages more intensively. Second, availability of internal funds and human capital intensity do not show statistical significances, implying that these abilities are not different between firms investing in foreign markets and the domestic market. Third, Korean multinational enterprises are more similar to Japanese than Western ones in terms that they actively exploit organizational skills and interfirm network. Nonetheless, these conclusions have been derived by analyzing the data on parent firms, based on the assumption that Korean overseas subsidiaries commonly share the intangible assets of their parents. This weakness is mainly due to the limited

  13. The Educational Asset Market: A Finance Perspective on Human Capital Investment

    DEFF Research Database (Denmark)

    Christiansen, Charlotte; Nielsen, Helena Skyt

    2002-01-01

    on type and level of education enables us to focus on the shared features between human capital and stock investments. An innovative finance-labor approach is applied to study the educational asset market. A risk-return trade-off is revealed which is not directly related to the length of education.......Like the stock market, the human capital market consists of a wide range of assets, i.e. educations. Each young individual chooses the educational asset that matches his preferred combination of risk and return in terms of future income. A unique register-based data set with exact information...

  14. Sovereign wealth funds: Investment objectives and asset allocation strategies

    Directory of Open Access Journals (Sweden)

    Daniil Wagner

    2014-05-01

    Full Text Available Sovereign Wealth Funds (SWFs have steadily increased their importance in the global financial system in the last decade and especially during the financial crisis period. Although the objectives and investment strategies of SWFs are quite diverse, I propose to sort them into three main groups, depending on their sponsor countries’ endowment with resources and investment objectives. I present case studies and empirical analyses that reflect SWF investment activities and try to elaborate on the special role of each SWF group. Special emphasis is given to the recent financial crisis, where SWFs also acted as bailout investors by injecting substantial capital into global financial institutions, filling a financing gap that other institutional investors could not close

  15. Locus of control and investment in risky assets

    NARCIS (Netherlands)

    Salamanca Acosta, Nicolas; de Grip, A.; Fouarge, Didier; Montizaan, Raymond

    2016-01-01

    We show that household heads with a strong internal economic locus of control are more likely to hold equity and hold a larger share of equity in their investment portfolio. This relation holds when we control for economic preferences and possible confounders such as financial literacy,

  16. Transition to Clean Capital, Irreversible Investment and Stranded Assets

    OpenAIRE

    Rozenberg, Julie; Vogt-Schilb, Adrien; Hallegatte, Stephane

    2014-01-01

    This paper uses a Ramsey model with two types of capital to analyze the optimal transition to clean capital when polluting investment is irreversible. The cost of climate mitigation decomposes as a technical cost of using clean instead of polluting capital and a transition cost from the irreversibility of pre-existing polluting capital. With a carbon price, the transition cost can be limit...

  17. Estimating the value of a Country's built assets: investment-based exposure modelling for global risk assessment

    Science.gov (United States)

    Daniell, James; Pomonis, Antonios; Gunasekera, Rashmin; Ishizawa, Oscar; Gaspari, Maria; Lu, Xijie; Aubrecht, Christoph; Ungar, Joachim

    2017-04-01

    In order to quantify disaster risk, there is a demand and need for determining consistent and reliable economic value of built assets at national or sub national level exposed to natural hazards. The value of the built stock in the context of a city or a country is critical for risk modelling applications as it allows for the upper bound in potential losses to be established. Under the World Bank probabilistic disaster risk assessment - Country Disaster Risk Profiles (CDRP) Program and rapid post-disaster loss analyses in CATDAT, key methodologies have been developed that quantify the asset exposure of a country. In this study, we assess the complementary methods determining value of building stock through capital investment data vs aggregated ground up values based on built area and unit cost of construction analyses. Different approaches to modelling exposure around the world, have resulted in estimated values of built assets of some countries differing by order(s) of magnitude. Using the aforementioned methodology of comparing investment data based capital stock and bottom-up unit cost of construction values per square meter of assets; a suitable range of capital stock estimates for built assets have been created. A blind test format was undertaken to compare the two types of approaches from top-down (investment) and bottom-up (construction cost per unit), In many cases, census data, demographic, engineering and construction cost data are key for bottom-up calculations from previous years. Similarly for the top-down investment approach, distributed GFCF (Gross Fixed Capital Formation) data is also required. Over the past few years, numerous studies have been undertaken through the World Bank Caribbean and Central America disaster risk assessment program adopting this methodology initially developed by Gunasekera et al. (2015). The range of values of the building stock is tested for around 15 countries. In addition, three types of costs - Reconstruction cost

  18. The Heterogeneous Investment Horizon and Dynamic Strategies for Asset Allocation

    Science.gov (United States)

    Xiong, Heping; Xu, Yiheng; Xiao, Yi

    This paper discusses the influence of the portfolio rebalancing strategy on the efficiency of long-term investment portfolios under the assumption of independent stationary distribution of returns. By comparing the efficient sets of the stochastic rebalancing strategy, the simple rebalancing strategy and the buy-and-hold strategy with specific data examples, we find that the stochastic rebalancing strategy is optimal, while the simple rebalancing strategy is of the lowest efficiency. In addition, the simple rebalancing strategy lowers the efficiency of the portfolio instead of improving it.

  19. Evaluation on Optimal Scale of Rural Fixed-asset Investment-Based on Microcosmic Perspective of Farmers’ Income Increase

    Institute of Scientific and Technical Information of China (English)

    Jinqian; DENG; Kangkang; SHAN; Yan; ZHANG

    2014-01-01

    The rural fundamental and productive fixed-asset investment not only makes active influence on the changes of farmers’ operational,wages and property income,but it also has an optimal scale range for farmers’ income increase. From the perspective of farmers’ income increase,this article evaluates the optimal scale of rural fixed-asset investment by setting up model with statistic data,and the results show that the optimal scale of per capita rural fixed-asset investment is 76. 35% of per capita net income of rural residents,which has been reached in China in 2009. Therefore,compared with the adding of rural fixed-asset investment,a better income increase effect can be achieved through the adjustment of rural fixed-asset investment structure.

  20. Investments Portfolio Optimal Planning for industrial assets management: Method and Tool

    International Nuclear Information System (INIS)

    Lonchampt, Jerome; Fessart, Karine

    2012-01-01

    The purpose of this paper is to describe the method and tool dedicated to optimize investments planning for industrial assets. These investments may either be preventive maintenance tasks, asset enhancement or logistic investment such as spare parts purchase. The three methodological points to investigate in such an issue are: 1. The measure of the profitability of a portfolio of investments 2. The selection and planning of an optimal set of investments 3. The measure of the risk of a portfolio of investments The measure of the profitability of a set of investments in the IPOP (registered) tool is synthesised in the Net Present Value indicator. The NPV is the sum of the differences of discounted cash flows (direct costs, forced outages...) between the situations with and without a given investment. These cash flows are calculated through a pseudo-markov reliability model representing independently the components of the industrial asset and the spare parts inventories. The component model has been widely discussed over the years but the spare part model is a new one based on some approximations that will be discussed. This model, referred as the NPV function, takes for input an investments portfolio and gives its NPV. The second issue is to optimize the NPV. If all investments were independent, this optimization would be an easy calculation, unfortunately there are two sources of dependency. The first one is introduced by the spare part model, as if components are indeed independent in their reliability model, the fact that several components use the same inventory induces a dependency. The second dependency comes from economic, technical or logistic constraints, such as a global maintenance budget limit or a precedence constraint between two investments, making the aggregation of individual optimum not necessary feasible. The algorithm used to solve such a difficult optimization problem is a genetic algorithm. After a description of the features of the software a

  1. An Empirical Study of the Relationship between the Fixed Assets Investment and Urban-rural Income Gap during the Transition Period

    Institute of Scientific and Technical Information of China (English)

    Yingliang; ZHANG; Xingxi; LIU; Fang; YANG; Yongbin; GUAN

    2014-01-01

    As the gap in income between urban and rural residents bigger and bigger,based on the data from 1978 to 2007,this paper makes an empirical study of the dynamic relation between the fixed assets investment and the difference in income between urban and rural residents. The outcome from the study indicates a long-term balance exists between the investment rate of the fixed assets and the difference in income between urban and rural residents. A short-term deviation from the balance can be adjusted through long time. To a certain extent,city-oriented fixed assets investment policy is the main cause of the big gap in income between urban and rural residents. The big gap in income between urban and rural residents in turn reinforces their social status,thus further strengthening the city-oriented instead of countryside-oriented fixed assets investment policy. Based on that,this paper puts forward some suggestions on adjusting the fixed assets investment policy so as to shorten the difference in income between urban and rural residents and realize the goal of harmonious development between city and countryside.

  2. KNOWLEDGE ASSETS IN SERVICES ACROSS INDUSTRIES AND ACROSS TIME

    Directory of Open Access Journals (Sweden)

    Erickson, G. Scott

    2015-05-01

    Full Text Available This paper explores the question of whether knowledge assets are more developed in services industries than in non-services. The concept of the “knowledge economy” has always gone hand-in-hand with growth in the percentage of the economy represented by services. Two multi-year, multi-industry datasets are used to directly compare the knowledge asset levels in service industry firms against those in non-service industry firms. Service industries do, indeed, reflect higher levels of intellectual capital in recent years, but did not do so a decade ago. Further, there is considerable evidence of changes in specific service and non-service industries over the time period, adding details to the finding that knowledge development is not static but does vary over time and circumstance. These results open up a number of promising research directions that could lead to a better understanding of the nature of these differing circumstances and how better strategic choices might be made regarding investments in knowledge management.

  3. Investment under uncertainty : Timing and capacity optimization

    NARCIS (Netherlands)

    Wen, Xingang

    2017-01-01

    This thesis consists of three chapters on analyzing the optimal investment timing and investment capacity for the firm(s) undertaking irreversible investment in an uncertain environment. Chapter 2 studies the investment decision of a monopoly firm when it can adjust output quantity in a market with

  4. Communicating asset risk: how name recognition and the format of historic volatility information affect risk perception and investment decisions.

    Science.gov (United States)

    Weber, Elke U; Siebenmorgen, Niklas; Weber, Martin

    2005-06-01

    An experiment examined how the type and presentation format of information about investment options affected investors' expectations about asset risk, returns, and volatility and how these expectations related to asset choice. Respondents were provided with the names of 16 domestic and foreign investment options, with 10-year historical return information for these options, or with both. Historical returns were presented either as a bar graph of returns per year or as a continuous density distribution. Provision of asset names allowed for the investigation of the mechanisms underlying the home bias in investment choice and other asset familiarity effects. Respondents provided their expectations of future returns, volatility, and expected risk, and indicated the options they would choose to invest in. Expected returns closely resembled historical expected values. Risk and volatility perceptions both varied significantly as a function of the type and format of information, but in different ways. Expected returns and perceived risk, not predicted volatility, predicted portfolio decisions.

  5. Mean-variance Optimal Reinsurance-investment Strategy in Continuous Time

    Directory of Open Access Journals (Sweden)

    Daheng Peng

    2017-10-01

    Full Text Available In this paper, Lagrange method is used to solve the continuous-time mean-variance reinsurance-investment problem. Proportional reinsurance, multiple risky assets and risk-free asset are considered synthetically in the optimal strategy for insurers. By solving the backward stochastic differential equation for the Lagrange multiplier, we get the mean-variance optimal reinsurance-investment strategy and its effective frontier in explicit forms.

  6. Mean-variance Optimal Reinsurance-investment Strategy in Continuous Time

    OpenAIRE

    Daheng Peng; Fang Zhang

    2017-01-01

    In this paper, Lagrange method is used to solve the continuous-time mean-variance reinsurance-investment problem. Proportional reinsurance, multiple risky assets and risk-free asset are considered synthetically in the optimal strategy for insurers. By solving the backward stochastic differential equation for the Lagrange multiplier, we get the mean-variance optimal reinsurance-investment strategy and its effective frontier in explicit forms.

  7. FINANCING OF FIXED ASSET INVESTMENT IN THE SMALL AND MEDIUM-SIZED ENTERPRISES IN POLAND

    Directory of Open Access Journals (Sweden)

    Beata Geruzel-Dudzińska

    2016-03-01

    Full Text Available Small and medium-sized enterprises play an important role in the economy, creates, because a significant part of GDP, provides employment to many millions of people. One of the main barriers to the development of these enterprises, not only in Poland but also in EU countries, is the scarcity of equity and the difficulty in obtaining external sources of financing. It is not just about lack of funds to finance current operations, but also, and perhaps above all, lack of investment in fixed assets. This paper aims to present available sources of financing of fixed assets for enterprises from the SME sector and the assessment of their use by these companies.

  8. Investment timing under hybrid stochastic and local volatility

    International Nuclear Information System (INIS)

    Kim, Jeong-Hoon; Lee, Min-Ku; Sohn, So Young

    2014-01-01

    Highlights: • The effects of hybrid stochastic volatility on real option prices are studied. • The stochastic volatility consists of a fast mean-reverting component and a CEV type one. • A fast mean-reverting factor lowers real option prices and investment thresholds. • The increase of elasticity raises real option prices and investment thresholds. • The effects of the addition of a slowly varying factor depend upon the project value. - Abstract: We consider an investment timing problem under a real option model where the instantaneous volatility of the project value is given by a combination of a hidden stochastic process and the project value itself. The stochastic volatility part is given by a function of a fast mean-reverting process as well as a slowly varying process and the local volatility part is a power (the elasticity parameter) of the project value itself. The elasticity parameter controls directly the correlation between the project value and the volatility. Knowing that the project value represents the market price of a real asset in many applications and the value of the elasticity parameter depends on the asset, the elasticity parameter should be treated with caution for investment decision problems. Based on the hybrid structure of volatility, we investigate the simultaneous impact of the elasticity and the stochastic volatility on the real option value as well as the investment threshold

  9. Investment Timing When External Financing Is Costly

    DEFF Research Database (Denmark)

    Hirth, Stefan; Uhrig-Homburg, Marliese

    2010-01-01

    This paper analyzes the investment timing of firms facing two dimensions of financing constraints: Liquidity constraints and capital market frictions inducing financing costs. We show that liquidity constraints are not sufficient to explain voluntary investment delay. However, when additionally...... considering financing costs, we can explain both voluntary delay and acceleration of investment. More precisely, we find that investment thresholds are U-shaped in liquid funds. For high-liquidity firms, investment thresholds are decreasing (i.e. accelerated investment takes place) in either dimension...... of financing constraint. In contrast, investment thresholds are increasing (i.e. investment is further delayed) in either form of financing constraint for low-liquidity firms. For intermediate levels of liquidity, investment thresholds are U-shaped in market frictions....

  10. Valuation of long-term investments in energy assets under uncertainty

    Energy Technology Data Exchange (ETDEWEB)

    Abadie, L. M. [Bilbao Bizkaia Kutxa, Gran Via 30, 48009 Bilbao (Spain)

    2009-07-01

    This paper aims to contribute to the development of valuation models for long-term investments while keeping an eye on market prices. The adopted methodology is rooted on the existence of markets for futures and options on commodities related to energy investments. These markets are getting ever-increasingly liquid with ever-longer maturities while trading contracts. We discuss the advantages of this approach relative to other alternatives such as the Net Present Value (NPV) or the Internal Rate of Return (IRR), despite a limited increase in the complexity of the models involved. More specifically, using the valuation methods well-known to energy-finance academics, the paper shows how to: break down an investment into its constituent parts, apply to each of them the corresponding risk premium, value annuities on assets with a deterministic or stochastic behavior, and value the options that are available to its owner, in order to get an overall value of the investment project. It also includes an application to improvement in coal consumption, where futures markets are used to get a numerical estimate of the parameters that are required for valuation. The results are then compared with those from traditional methodologies. Conclusions for this type of investments under uncertainty are derived. (author)

  11. Valuation of Long-Term Investments in Energy Assets under Uncertainty

    Directory of Open Access Journals (Sweden)

    Luis M. Abadie

    2009-09-01

    Full Text Available This paper aims to contribute to the development of valuation models for long-term investments while keeping an eye on market prices. The adopted methodology is rooted on the existence of markets for futures and options on commodities related to energy investments. These markets are getting ever-increasingly liquid with ever-longer maturities while trading contracts. We discuss the advantages of this approach relative to other alternatives such as the Net Present Value (NPV or the Internal Rate of Return (IRR, despite a limited increase in the complexity of the models involved. More specifically, using the valuation methods well-known to energy-finance academics, the paper shows how to: break down an investment into its constituent parts, apply to each of them the corresponding risk premium, value annuities on assets with a deterministic or stochastic behavior, and value the options that are available to its owner, in order to get an overall value of the investment project. It also includes an application to improvement in coal consumption, where futures markets are used to get a numerical estimate of the parameters that are required for valuation. The results are then compared with those from traditional methodologies. Conclusions for this type of investments under uncertainty are derived.

  12. Valuation of long-term investments in energy assets under uncertainty

    International Nuclear Information System (INIS)

    Abadie, L. M.

    2009-01-01

    This paper aims to contribute to the development of valuation models for long-term investments while keeping an eye on market prices. The adopted methodology is rooted on the existence of markets for futures and options on commodities related to energy investments. These markets are getting ever-increasingly liquid with ever-longer maturities while trading contracts. We discuss the advantages of this approach relative to other alternatives such as the Net Present Value (NPV) or the Internal Rate of Return (IRR), despite a limited increase in the complexity of the models involved. More specifically, using the valuation methods well-known to energy-finance academics, the paper shows how to: break down an investment into its constituent parts, apply to each of them the corresponding risk premium, value annuities on assets with a deterministic or stochastic behavior, and value the options that are available to its owner, in order to get an overall value of the investment project. It also includes an application to improvement in coal consumption, where futures markets are used to get a numerical estimate of the parameters that are required for valuation. The results are then compared with those from traditional methodologies. Conclusions for this type of investments under uncertainty are derived. (author)

  13. Asset management guide : focusing on the management of our transit investments.

    Science.gov (United States)

    2012-10-01

    To advance transit asset management, this guide provides a transit-specific asset management framework for managing assets indi-vidually and as a portfolio of assets that comprise an integrated system. The guide provides flexible, yet targeted guidan...

  14. Asset management guide : focusing on the management of our transit investments [updated November 2016].

    Science.gov (United States)

    2016-11-01

    To advance transit asset management, this guide provides a transit-specific asset management framework for managing assets individually and as a portfolio of assets that comprise an integrated system. The guide provides flexible, yet targeted guidanc...

  15. Energy conservation assessment of fixed-asset investment projects: An attempt to improve energy efficiency in China

    International Nuclear Information System (INIS)

    Hu Yuan

    2012-01-01

    Fast economic growth in China has generated energy and environmental problems. Fixed-asset investments have contributed significantly to energy consumption. In China, an energy conservation assessment (ECA), a mechanism similar to the existing environmental impact assessment (EIA), has been applied to improve the energy efficiency of new fixed-asset investment projects. In this paper the origin and development of the ECA system is analyzed and the major features of ECA are discussed. To identify the success and failure of the ECA system, case studies are analyzed and comparison between ECA and EIA, which has been used in China for over 30 years, is made. Based on the analysis, recommendations are provided for the improvement of the ECA system in China. Despite the ECA system only being established for a relatively short time, it has clearly achieved significant success. With further efforts it could play an important role in achieving the goals of improving China’s energy efficiency and reducing green house gas emissions. - Highlights: ► We examine origin and development of energy conservation assessment (ECA) in China. ► ECA has great potential in energy efficiency improvement and GHGs reduction. ► Compared with EIA, ECA is still in its early stages. More efforts are needed. ► Improvements of legal system, assessment procedure, etc. are essential for next step.

  16. The next $120,000: a case study to illustrate analysis of alternative farm investments in fixed assets.

    Science.gov (United States)

    St-Pierre, N R; Shoemaker, D; Jones, L R

    2000-05-01

    Dairy scientists specializing in the area of farm management are increasingly involved in analysis of farm investments in fixed assets. There have been instances where the wrong procedures were used to assess investments in fixed assets, leading to erroneous and possibly disastrous conclusions. A detailed case study of a dairy farm facing the decision of where best to invest an unexpected $120,000 windfall is used to illustrate the various facets of financial analysis. Indicators of profitability, liquidity, solvency, repayment capacity, and financial efficiency are explained and applied to the farm case to produce a detailed analysis of the current financial position of the firm. Long-range budgets of four alternate investment options and their impact on all financial indicators are presented. The four options are: 1) to pay down debt, 2) to purchase an additional 100 cows, 3) to install automatic milk yield recording in the parlor, and 4) to build new heifer facilities. All four investments are profitable. Therefore, an analysis limited to profitability indicators would conclude that any of the four options is a good investment. However, liquidity and financial efficiency issues showed that the option of purchasing 100 cows is far superior to the three others. We conclude that a complete and thorough financial analysis is required to evaluate the impact of long-run investments in fixed assets.

  17. Building Assets Reducing Risks: Academic Success for All Students through Positive Relationships and Use of Real-Time Data

    Science.gov (United States)

    Corsello, Maryann; Sharma, Anu; Jerabek, Angela

    2015-01-01

    Building Assets Reducing Risks (BARR) is a social emotional model that achieves academic outcomes through combining use of real-time student data with proven relationship-building strategies and intensive teacher collaboration to prevent course failure. BARR is a recipient of US Department of Education "Investing in Innovation (i3)"…

  18. Measuring the impact of intangible asset investment toward companies financial health and agency problem : empirical reasearch from Indonesian companies during world financial crisis period 2006-2011

    OpenAIRE

    Widiantoro, Dimas Mukhlas

    2012-01-01

    Masteroppgave i økonomi og administrasjon - Universitetet i Agder 2012 The thesis examines the impact of intangible investment toward company‟s health and company agency problem. The research chooses Intangible asset because of its special characteristic. Intangible asset as the asset of production has equipped the employee with better skills and knowledge on productions. On the other hand, an intangible asset that does not have physical evidence also triggered the liquidity problem of the...

  19. Assessing market uncertainty by means of a time-varying intermittency parameter for asset price fluctuations

    Science.gov (United States)

    Rypdal, Martin; Sirnes, Espen; Løvsletten, Ola; Rypdal, Kristoffer

    2013-08-01

    Maximum likelihood estimation techniques for multifractal processes are applied to high-frequency data in order to quantify intermittency in the fluctuations of asset prices. From time records as short as one month these methods permit extraction of a meaningful intermittency parameter λ characterising the degree of volatility clustering. We can therefore study the time evolution of volatility clustering and test the statistical significance of this variability. By analysing data from the Oslo Stock Exchange, and comparing the results with the investment grade spread, we find that the estimates of λ are lower at times of high market uncertainty.

  20. The Power of Public Investment Management : Transforming Resources into Assets for Growth

    OpenAIRE

    Rajaram, Anand; Minh Le, Tuan; Kaiser, Kai; Kim, Jay-Hyung; Frank, Jonas

    2014-01-01

    This publication consists of seven chapters: building a system for public investment management; a unified framework for public investment management; country experiences of public investment management; approaches to better project appraisal; public investment management under uncertainty; procurement and public investment management; and public investment management for public-private pa...

  1. Investments

    CERN Document Server

    Bodie, Zvi

    2013-01-01

    The integrated solutions for Bodie, Kane, and Marcus' Investments set the standard for graduate/MBA investments textbooks. The unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The content places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts. McGraw-Hill's adaptive learning component, LearnSmart, provides assignable modules that help students master chapter core concepts and come to class more prepared. Bodie Investments' blend of practical and theoretical coverage combines with a complete digital solution to help your students achieve higher outcomes in the course

  2. Evaluation on Optimal Scale of Rural Fixed-asset Investment – Based on Microcosmic Perspective of Farmers’ Income Increase

    OpenAIRE

    DENG, Jinqian; SHAN, Kangkang; ZHANG, Yan

    2014-01-01

    The rural fundamental and productive fixed-asset investment not only makes active influence on the changes of farmers’ operational, wages and property income, but it also has an optimal scale range for farmers’ income increase. From the perspective of farmers’ income increase, this article evaluates the optimal scale of rural fixed-asset investment by setting up model with statistic data, and the results show that the optimal scale of per capita rural fixed-asset investment is 76.35% of...

  3. Risk Exposure and Net Flow in Investment Funds: Do Shareholders Monitor Asset Allocation?

    Directory of Open Access Journals (Sweden)

    Rafael Felipe Schiozer

    2014-03-01

    Full Text Available This study investigates the impact of asset allocation on the net flow of fixed income funds in the Brazilian market, by exploiting the exogenous variation in the risk perception of bank liabilities (CDs caused by the financial turmoil that followed Lehman Brothers’ demise in September 2008. The central hypothesis is that the exposure to assets negatively affected by the crisis impacts negatively the fund’s net flow. We find that, for mutual funds, the larger proportion of assets negatively affected by the crisis the larger the net outflow of resources, indicating that shareholders monitor asset allocation and exert disciplining power on fund managers by withdrawing their resources. In exclusive (fundos exclusivos, i.e., funds with a single shareholder, for which the shareholder is presumed to exert more influence on asset reallocation, we find no significant relationship between the exposure to assets negatively affected by the crisis and net flows.

  4. Doing Good with Foundation Assets: An Updated Look at Program-Related Investments

    Science.gov (United States)

    Lawrence, Steven

    2010-01-01

    For four decades U.S. foundations have had the ability to make below-market-rate investments in activities consistent with their missions, and count these investments as part of their annual charitable distributions. Program-related investments, or PRIs, provide the opportunity for a philanthropic multiplier effect, as foundations invest the…

  5. Economic perspectives of risk distribution system asset management : principles of risk valuation of grid investments

    OpenAIRE

    Rud, Linda

    2010-01-01

    A main challenge of the electricity grid company is to target the right level and choice of grid investment, maintenance and renewal. The nature of grid investments poses special challenges in determining the investment cash flow, partly because a main product of the grid investment often is to improve future performance, for example in terms of increased reliability. An essential aspect of valuing grid investments is to address the value of risk. The objective of this report is to apply the ...

  6. Economic perspectives of risk distribution system asset management: principles of risk valuation of grid investments

    Energy Technology Data Exchange (ETDEWEB)

    Rud, Linda

    2010-07-01

    A main challenge of the electricity grid company is to target the right level and choice of grid investment, maintenance and renewal. The nature of grid investments poses special challenges in determining the investment cash flow, partly because a main product of the grid investment often is to improve future performance, for example in terms of increased reliability. An essential aspect of valuing grid investments is to address the value of risk. The objective of this report is to apply the insight from economic theories of risk valuation to understand fundamental aspects of the valuation of risky grid investments. (Author)

  7. Endogenous time-varying risk aversion and asset returns.

    Science.gov (United States)

    Berardi, Michele

    2016-01-01

    Stylized facts about statistical properties for short horizon returns in financial markets have been identified in the literature, but a satisfactory understanding for their manifestation is yet to be achieved. In this work, we show that a simple asset pricing model with representative agent is able to generate time series of returns that replicate such stylized facts if the risk aversion coefficient is allowed to change endogenously over time in response to unexpected excess returns under evolutionary forces. The same model, under constant risk aversion, would instead generate returns that are essentially Gaussian. We conclude that an endogenous time-varying risk aversion represents a very parsimonious way to make the model match real data on key statistical properties, and therefore deserves careful consideration from economists and practitioners alike.

  8. Providing investment attractiveness of renewal and development of fixed assets in the energy sector

    Directory of Open Access Journals (Sweden)

    Evgeniy Anatolyevich Malyshev

    2013-09-01

    Full Text Available The purpose of research is a comparative analysis of economic mechanisms for the realization of investment projects for new construction and modernization power generation capacity in the energy sector and their effect on private investment. In this connection, planned and actual volumes of generating capacity, particular features of the industry, causing investment attractiveness are discussed. The necessity of using, and a comparison of primary economic mechanisms in order to guarantee the return of investments in the new construction and modernization of power generation capacity is shown. The method of calculating the tariff under the agreement of supply power capacity is analyzed. The study proved that the presence of an effective working mechanism of return on investment is a key element influencing the investment in new construction and modernization of power generation capacity. Also, it is shown that with the end of using agreement of supply power capacity, industry will face a significant reduction in investment. In this connection, it is recommended to speed up the formation of long-term capacity market, which involves the application of new investment incentives in the industry. The research results can be applied by investment banks, and other stakeholders as a methodological apparatus assessing investment and whether to participate in their financing.

  9. The importance of the 'weightless economy' and investment in intangible assets

    Directory of Open Access Journals (Sweden)

    Veselinović Branislav

    2015-01-01

    Full Text Available The economic landscape of the present and future is no longer shaped by tangible assets, but by intangible assets. Several decades ago, William Tenn wrote a science-fiction story in which aliens, as interstellar traders, claimed on their business cards to be 'dealers in intangibles'. Professor Danny Quah from London invented the term 'weightless economy', referring to economic activity whose value does not consist of physical products. In a weightless economy, success comes from knowing how to locate and combine specific pieces of information. The goal of this analysis is to provide an overview of possibilities and problems in valuation of intangible assets. In this qualitative and quantitative analysis, authors used comparation method, analysis and synthesis method, inductive and deductive method, and a local and international literature review.

  10. Optimal International Asset Allocation with Time-varying Risk

    OpenAIRE

    Flavin, Thomas; Wickens, M.R.

    2006-01-01

    This paper examines the optimal allocation each period of an internationally diversified portfolio from the different points of view of a UK and a US investor. We find that investor location affects optimal asset allocation. The presence of exchange rate risk causes the markets to appear not fully integrated and creates a preference for home assets. Domestic equity is the dominant asset in the optimal portfolio for both investors, but the US investor bears less risk than the UK...

  11. Time-independent models of asset returns revisited

    Science.gov (United States)

    Gillemot, L.; Töyli, J.; Kertesz, J.; Kaski, K.

    2000-07-01

    In this study we investigate various well-known time-independent models of asset returns being simple normal distribution, Student t-distribution, Lévy, truncated Lévy, general stable distribution, mixed diffusion jump, and compound normal distribution. For this we use Standard and Poor's 500 index data of the New York Stock Exchange, Helsinki Stock Exchange index data describing a small volatile market, and artificial data. The results indicate that all models, excluding the simple normal distribution, are, at least, quite reasonable descriptions of the data. Furthermore, the use of differences instead of logarithmic returns tends to make the data looking visually more Lévy-type distributed than it is. This phenomenon is especially evident in the artificial data that has been generated by an inflated random walk process.

  12. 76 FR 55308 - Treatment of Asset-Backed Issuers Under the Investment Company Act

    Science.gov (United States)

    2011-09-07

    ... that NRSROs conduct the type of analysis and review of asset-backed issuers' structures and operations... organizational documents . See supra note 45 and accompanying text. The Commission requests comment on the types.... Revisiting Rule 3a-7 1. Rating Requirements 2. Possible New Conditions for Rule 3a-7 a. Structure and...

  13. What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

    Science.gov (United States)

    Rosen, Harvey S.; Sappington, Alexander J. W.

    2016-01-01

    This paper examines whether university endowment managers think only in terms of the assets they manage or also take into account background income, that is, the other flows of income to the university. Specifically, we test whether the level and variability of a university's background income (e.g., from tuition and government grants) affect its…

  14. A Random Parameter Model for Continuous-Time Mean-Variance Asset-Liability Management

    Directory of Open Access Journals (Sweden)

    Hui-qiang Ma

    2015-01-01

    Full Text Available We consider a continuous-time mean-variance asset-liability management problem in a market with random market parameters; that is, interest rate, appreciation rates, and volatility rates are considered to be stochastic processes. By using the theories of stochastic linear-quadratic (LQ optimal control and backward stochastic differential equations (BSDEs, we tackle this problem and derive optimal investment strategies as well as the mean-variance efficient frontier analytically in terms of the solution of BSDEs. We find that the efficient frontier is still a parabola in a market with random parameters. Comparing with the existing results, we also find that the liability does not affect the feasibility of the mean-variance portfolio selection problem. However, in an incomplete market with random parameters, the liability can not be fully hedged.

  15. Social Investment in Times of Crisis

    DEFF Research Database (Denmark)

    Prandini, Riccardo; Orlandini, Matteo; Guerra, Alice

    The purpose of this report is to analyse and understand whether and how, in the last twenty years, the EU member countries have adopted welfare systems which incorporate aspects of social investment. The quantitative and comparative study is focused on social investment strategies across 28...... European member states. The aim is to map out and explore the effectiveness of different social investment strategies. An overview of macro-level welfare performance indicators consist of a review of available macro-indicators to assess welfare performance in the light of social investment decisions....

  16. Real Time Investments with Adequate Portfolio Theory

    Directory of Open Access Journals (Sweden)

    Alina Kvietkauskienė

    2015-02-01

    Full Text Available The objective of this paper is to identify investment decision makingschemes using the adequate portfolio model. This approach can be employed to project investment in stocks, using the opportunities offered by the markets and investor intelligence. It was decided to use adequate portfolio theory for investment decision making, simulation of financial markets, and optimisation of utility function. The main conclusion of article suggests investigating return on individual portfolio level. Real investment is a way to make sure of the soundness of applicable strategies.

  17. Japanese investment in Australian coal assets through the demise of concessional financing

    International Nuclear Information System (INIS)

    West, Jason

    2013-01-01

    The Australian coal industry has been described as being a perpetual case of ‘profitless prosperity’. This implies that foreign companies invest in low-margin mining activities with motives other than profit. It is argued that foreign investors and Japanese trading companies in particular used government investment concessions and subsidies to help create oversupply in the seaborne coal market. The aim of this strategy is to depress contract prices at the cost of achieving reasonable profitability levels, which have historically been well below that of other investors in the Australian mining sector. This study shows that the quasi-integration via concessional funding arrangements is not a credible strategy employed by Japanese trading companies or the Japanese Government. The analysis rejects the hypothesis that via foreign direct investment, Japanese companies are securing coal at below average prices. Furthermore we find no clear evidence of Japanese trading companies using their information advantage as equity investors to secure coal at favourable prices during contract negotiations. Finally we examine the investment behaviour of new entrants in the Australian coal production sector to highlight the differences in investment strategy between Japanese companies and other foreign investors regarding the security of supply. - Highlights: ► Past foreign investment practices sacrificed profit to create oversupply of Australian coal. ► Only a small amount of equity capital was required to exert influence over coal output. ► Foreign investors can no longer exploit information advantages to obtain favourable prices. ► Information advantages from partial ownership do not influence supply costs. ► Foreign investors in Australian mining now achieve similar profits to domestic firms.

  18. Life Cycle Asset Allocation in the Presence of Housing and Tax-Deferred Investing

    DEFF Research Database (Denmark)

    Marekwica, Marcel; Schaefer, Alexander; Sebastian, Steffen

    2013-01-01

    , investors can deduct mortgage interest payments from taxable income, while simultaneously earning interest in tax-deferred accounts tax-free. Matching empirical evidence, our model predicts that investors with higher retirement savings choose higher loan-to-value ratios to exploit this tax arbitrage......We study the dynamic consumption-portfolio problem over the life cycle, with respect to tax-deferred investing for investors who acquire housing services by either renting or owning a home. The joint existence of these two investment vehicles creates potential for tax arbitrage. Specifically...... opportunity. However, many households could benefit from more effectively taking advantage of tax arbitrage....

  19. Endowment Investing: Time for a Sustainability Play?

    Science.gov (United States)

    Pelletier, Stephen G.

    2010-01-01

    Managers of university endowment funds are paying closer attention to investing in "green" industries, commonly bundled under the umbrella "cleantech." Cleantech offers the possibility of buying in while prices are low "and" making a "green" investment play, but it also harbors the risks inherent in any emerging industry. Cleantech has varying…

  20. 17 CFR 270.17f-4 - Custody of investment company assets with a securities depository.

    Science.gov (United States)

    2010-04-01

    ... available concerning the internal accounting controls and financial strength of the custodian; and (3... controls and financial strength of the securities depository; and (2) The fund has implemented internal... 17 Commodity and Securities Exchanges 3 2010-04-01 2010-04-01 false Custody of investment company...

  1. Falling R and D but stable investments by oil companies, why? A study on R and D and investment in fixed assets in the oil industry

    International Nuclear Information System (INIS)

    Creusen, H.; Minne, B.

    2000-04-01

    In the last decade the world-wide research expenditures of the major oil companies have dropped. This is remarkable since their investments in fixed assets remained stable. This study reveals that the level of fixed investments particularly depend on their financial strength, while R and D mainly relates to competitors' research and common expectations. The decline in R and D is initiated by common expectations. In the mature oil industry, companies foresee diminishing research potential within the current technology. This is also confirmed by the declining number of patent applications. The high risks of research on renewable energy may lead to wait and see behaviour instead of new research initiatives. Actually, oil companies have hardly applied for patents on renewable energy. The R and D decline is intensified by a dwindling R and D-race, which is due to a large overlap in research topics. The companies protect their research results because they largely compete on their unique technologies which embody their research results. The research overlap appears from patents: the oil companies apply for patents in exactly the same patent classes. 19 refs

  2. An average-based accounting approach to capital asset investments: The case of project finance

    OpenAIRE

    Carlo Alberto Magni

    2014-01-01

    Literature and textbooks on capital budgeting endorse Net Present Value (NPV) and generally treat accounting rates of return as not being reliable tools. This paper shows that accounting numbers can be reconciled with NPV and fruitfully employed in real-life applications. Focusing on project finance transactions, an Average Return On Investment (AROI) is drawn from the pro forma financial statements, obtained as the ratio of aggregate income to aggregate book value. It is shown that such a me...

  3. Investment Timing for New Business Ventures

    OpenAIRE

    George W. Blazenko; Andrey D. Pavlov

    2010-01-01

    A key requirement for the start of many entrepreneurial businesses is private equity or venture capital financing. In the traditional approach to entrepreneurial investment analysis, an entrepreneur starts a new venture and a venture capitalist finances the new venture when business return exceeds the financial opportunity cost for comparable risk the cost of capital for the new venture. The real options literature recommends that entrepreneurs delay business start due to investment irreversi...

  4. Time-frequency wavelet analysis of the interrelationship between the global macro assets and the fear indexes

    Science.gov (United States)

    Abid, Fathi; Kaffel, Bilel

    2018-01-01

    Understanding the interrelationships of the global macro assets is crucial for global macro investing. This paper investigates the local variance and the interconnection between the stock, gold, oil, Forex and the implied volatility markets in the time/frequency domains using the wavelet methodology, including the wavelet power spectrum, the wavelet squared coherence and phase difference, the wavelet multiple correlation and cross-correlation. The univariate analysis reveals that, in some crisis periods, underlying asset markets present the same pattern in terms of the wavelet power spectrum indicating high volatility for the medium scale, and that for the other market stress periods, volatility behaves differently. Moreover, unlike the underlying asset markets, the implied volatility markets are characterized by high power regions across the entire period, even in the absence of economic events. Bivariate results show a bidirectional relationship between the underlying assets and their corresponding implied volatility indexes, and a steady co-movement between the stock index and its corresponding fear index. Multiple correlation analysis indicates a strong correlation between markets at high scales with evidence of a nearly perfect integration for a period longer than a year. In addition, the hedging strategies based on the volatility index lead to an increase in portfolio correlation. On the other hand, the results from multiple cross-correlations reveal that the lead-lag effect starts from the medium scale and that the VIX (stock market volatility index) index is the potential leader or follower of the other markets.

  5. Multi-asset class mutual funds: Can they time the market? Evidence from the US, UK and Canada

    OpenAIRE

    Clare, A.; O'Sullivan, N.; Sherman, M.; Thomas, S.

    2016-01-01

    The importance of asset allocation decisions in wealth management is well established. However, given its importance it is perhaps surprising that so little attention has been paid to the question of whether professional fund managers are skilful at timing market movement across asset classes over time. The timing literature has tended to concentrate on the timing skill of single asset class funds. Using data on US, UK and Canadian multi-asset class funds, we apply two alternative methodologi...

  6. Optimal Time to Invest Energy Storage System under Uncertainty Conditions

    Directory of Open Access Journals (Sweden)

    Yongma Moon

    2014-04-01

    Full Text Available This paper proposes a model to determine the optimal investment time for energy storage systems (ESSs in a price arbitrage trade application under conditions of uncertainty over future profits. The adoption of ESSs can generate profits from price arbitrage trade, which are uncertain because the future marginal prices of electricity will change depending on supply and demand. In addition, since the investment is optional, an investor can delay adopting an ESS until it becomes profitable, and can decide the optimal time. Thus, when we evaluate this investment, we need to incorporate the investor’s option which is not captured by traditional evaluation methods. In order to incorporate these aspects, we applied real option theory to our proposed model, which provides an optimal investment threshold. Our results concerning the optimal time to invest show that if future profits that are expected to be obtained from arbitrage trade become more uncertain, an investor needs to wait longer to invest. Also, improvement in efficiency of ESSs can reduce the uncertainty of arbitrage profit and, consequently, the reduced uncertainty enables earlier ESS investment, even for the same power capacity. Besides, when a higher rate of profits is expected and ESS costs are higher, an investor needs to wait longer. Also, by comparing a widely used net present value model to our real option model, we show that the net present value method underestimates the value for ESS investment and misleads the investor to make an investment earlier.

  7. Time is money: Rational life cycle inertia and the delegation of investment management

    Science.gov (United States)

    Kim, Hugh Hoikwang; Maurer, Raimond; Mitchell, Olivia S.

    2016-01-01

    Many households display inertia in investment management over their life cycles. Our calibrated dynamic life cycle portfolio choice model can account for such an apparently ‘irrational’ outcome, by incorporating the fact that investors must forgo acquiring job-specific skills when they spend time managing their money, and their efficiency in financial decision making varies with age. Resulting inertia patterns mesh well with findings from prior studies and our own empirical results from Panel Study of Income Dynamics (PSID) data. We also analyze how people optimally choose between actively managing their assets versus delegating the task to financial advisors. Delegation proves valuable to both the young and the old. Our calibrated model quantifies welfare gains from including investment time and money costs as well as delegation in a life cycle setting. PMID:28344380

  8. The estimation of time-varying risks in asset pricing modelling using B-Spline method

    Science.gov (United States)

    Nurjannah; Solimun; Rinaldo, Adji

    2017-12-01

    Asset pricing modelling has been extensively studied in the past few decades to explore the risk-return relationship. The asset pricing literature typically assumed a static risk-return relationship. However, several studies found few anomalies in the asset pricing modelling which captured the presence of the risk instability. The dynamic model is proposed to offer a better model. The main problem highlighted in the dynamic model literature is that the set of conditioning information is unobservable and therefore some assumptions have to be made. Hence, the estimation requires additional assumptions about the dynamics of risk. To overcome this problem, the nonparametric estimators can also be used as an alternative for estimating risk. The flexibility of the nonparametric setting avoids the problem of misspecification derived from selecting a functional form. This paper investigates the estimation of time-varying asset pricing model using B-Spline, as one of nonparametric approach. The advantages of spline method is its computational speed and simplicity, as well as the clarity of controlling curvature directly. The three popular asset pricing models will be investigated namely CAPM (Capital Asset Pricing Model), Fama-French 3-factors model and Carhart 4-factors model. The results suggest that the estimated risks are time-varying and not stable overtime which confirms the risk instability anomaly. The results is more pronounced in Carhart’s 4-factors model.

  9. An analysis of the usefulness to investors of managers’ fair value estimates of firm assets: Evidence from IAS 36 "Impairment of Assets" and IAS 40 "Investment Property"

    OpenAIRE

    Wirtz, D.

    2013-01-01

    Firms’ adoption of the International Financial Reporting Standards (IFRS) has been increasing worldwide. Even the U.S. Securities and Exchange Commission is considering direct incorporation of IFRS into the U.S. financial reporting regime in the foreseeable future. With the adoption of IFRS, reports of managers’ fair value estimates of a firm’s assets in financial statements became more pervasive than under local generally accepted accounting principles (GAAPs) and is likely to become increas...

  10. Stock Market Performance and Pension Fund Investment Policy: Rebalancing, Free Float, or Market Timing

    NARCIS (Netherlands)

    Bikker, J.A.; Broeders, D.W.G.A; de Dreu, J.

    2007-01-01

    This paper is the first that examines the impact of stock market performance on the investment policy of pension funds. We find that stock market prices influence the asset allocation of Dutch pension funds in two ways. In the short term, outperformance of equities over bonds and other investment

  11. Mean-downside risk versus mean-variance efficient asset class allocations in relation to the investment horizon

    NARCIS (Netherlands)

    Ruiter, de A.J.C.; Brouwer, F.

    1996-01-01

    In this paper we examine the difference between a Mean-Downside Risk (MDR) based asset allocation decision and a Mean-Variance (MV) based decision. Using a vector autoregressive specification, future return series, trom 1 month up to 10 years, of several US stock and bond asset classes have been

  12. Investment Timing, Liquidity, and Agency Costs of Debt

    DEFF Research Database (Denmark)

    Hirth, Stefan; Uhrig-Homburg, Marliese

    2010-01-01

    This paper examines the effect of debt and liquidity on corporate investment in a continuous-time framework. We show that stockholder-bondholder agency conflicts cause investment thresholds to be U-shaped in leverage and decreasing in liquidity. In the absence of tax effects, we derive the optimal...... level of liquid funds that eliminates agency costs by implementing the first-best investment policy for a given capital structure. In a second step we generalize the framework by introducing a tax advantage of debt, and we show that an interior solution for liquidity and capital structure optimally...... trades off tax benefits and agency costs of debt....

  13. Investment-based Capital Asset Pricing Model からみた投資と資産収益率

    OpenAIRE

    宮川, 努; 滝澤, 美帆

    2017-01-01

    本稿は,資産収益率の要因を,投資変動を使って説明するInvestment-based Capital Asset Pricing Model(I-CAPM)を使って,日米の投資規模と資産収益率の関係及び無形資産規模の影響を考察した。I-CAPM によれば,投資規模が大きくなると投資に付帯する費用によって資産収益率が低下するが,単純に投資規模別に分けた資産収益率を調べると,日米ともにI-CAPM の妥当性が検証される。しかしFama and French(1995)によるThree Factor Model など他の要因も加えると,日本では投資規模が明示的に資産収益率に影響を与える効果は検出できなかった。しかし米国では無形資産規模が大きい場合,I-CAPM の妥当性が成立することがわかる。また有形資産投資に無形資産投資を加えると収益率格差が縮小する現象も見られた。このことは,有形資産投資に伴う費用を無形資産投資が一部代替している可能性を示している,日本が今後IT 化を進める際にはハード面の投資だけでなく,無形資産投資も合わせて実施することで,付帯費用に伴う収益率低下を防ぐ必要がある...

  14. Precommitted Investment Strategy versus Time-Consistent Investment Strategy for a General Risk Model with Diffusion

    Directory of Open Access Journals (Sweden)

    Lidong Zhang

    2014-01-01

    Full Text Available We mainly study a general risk model and investigate the precommitted strategy and the time-consistent strategy under mean-variance criterion, respectively. A lagrange method is proposed to derive the precommitted investment strategy. Meanwhile from the game theoretical perspective, we find the time-consistent investment strategy by solving the extended Hamilton-Jacobi-Bellman equations. By comparing the precommitted strategy with the time-consistent strategy, we find that the company under the time-consistent strategy has to give up the better current utility in order to keep a consistent satisfaction over the whole time horizon. Furthermore, we theoretically and numerically provide the effect of the parameters on these two optimal strategies and the corresponding value functions.

  15. Asset Pricing in Markets with Illiquid Assets

    OpenAIRE

    Longstaff, Francis A

    2005-01-01

    Many important classes of assets are illiquid in the sense that they cannot always be traded immediately. Thus, a portfolio position in these types of illiquid investments becomes at least temporarily irreversible. We study the asset-pricing implications of illiquidity in a two-asset exchange economy with heterogeneous agents. In this market, one asset is always liquid. The other asset can be traded initially, but then not again until after a “blackout†period. Illiquidity has a dramatic e...

  16. How Are Property Investment Returns Determined? : Estimating the Micro-Structure of Asset Prices, Property Income, and Discount Rates

    OpenAIRE

    Shimizu, Chihiro

    2014-01-01

    How exactly should one estimate property investment returns? Investors in property aim to maximize capital gains from price increases and income generated by the property. How are the returns on investment in property determined based on its characteristics, and what kind of market characteristics does it have? Focusing on the Tokyo commercial property market and residential property market, the purpose of this paper was to break down and measure the micro-structure of property investment ret...

  17. A Tutorial on Nonlinear Time-Series Data Mining in Engineering Asset Health and Reliability Prediction: Concepts, Models, and Algorithms

    Directory of Open Access Journals (Sweden)

    Ming Dong

    2010-01-01

    Full Text Available The primary objective of engineering asset management is to optimize assets service delivery potential and to minimize the related risks and costs over their entire life through the development and application of asset health and usage management in which the health and reliability prediction plays an important role. In real-life situations where an engineering asset operates under dynamic operational and environmental conditions, the lifetime of an engineering asset is generally described as monitored nonlinear time-series data and subject to high levels of uncertainty and unpredictability. It has been proved that application of data mining techniques is very useful for extracting relevant features which can be used as parameters for assets diagnosis and prognosis. In this paper, a tutorial on nonlinear time-series data mining in engineering asset health and reliability prediction is given. Besides that an overview on health and reliability prediction techniques for engineering assets is covered, this tutorial will focus on concepts, models, algorithms, and applications of hidden Markov models (HMMs and hidden semi-Markov models (HSMMs in engineering asset health prognosis, which are representatives of recent engineering asset health prediction techniques.

  18. Investment Timing, Liquidity, and Agency Costs of Debt

    DEFF Research Database (Denmark)

    Hirth, Stefan; Uhrig-Homburg, Marliese

    This paper examines the effect of debt and liquidity on corporate investment in a continuous-time dynamic framework. We show that due to stockholder-bondholder agency conflicts, investment thresholds are U-shaped in leverage and decreasing in liquidity. While the underinvestment problem dominates...... for low-liquidity firms, there is overinvestment for high-liquidity firms. In the absence of tax effects, we derive the optimal level of liquid funds that eliminates agency costs by implementing the first-best investment policy for some given capital structure. In a second step we generalize the framework...... by introducing a tax advantage of debt, and we show that an interior solution for liquidity and capital structure optimally trades off tax benefits and agency costs of debt....

  19. Asset management techniques

    Energy Technology Data Exchange (ETDEWEB)

    Schneider, Joachim; Gaul, Armin J. [RWE Energy AG, Assetmanagement, Dortmund (Germany); Neumann, Claus [RWE Transportnetz Strom GmbH, Dortmund (Germany); Hograefer, Juergen [SAG Energieversorgungsloesungen GmbH, Langen (Germany); Wellssow, Wolfram; Schwan, Michael [Siemens AG, Power Transmission and Distribution, Erlangen (Germany); Schnettler, Armin [RWTH-Aachen, Institut fuer Hochspannungstechnik, Aachen (Germany)

    2006-11-15

    Deregulation and an increasing competition in electricity markets urge energy suppliers to optimize the utilization of their equipment, focusing on technical and cost-effective aspects. As a respond to these requirements utilities introduce methods formerly used by investment managers or insurance companies. The article describes the usage of these methods, particularly with regard to asset management and risk management within electrical grids. The essential information needed to set up an appropriate asset management system and differences between asset management systems in transmission and distribution systems are discussed. The bulk of costs in electrical grids can be found in costs for maintenance and capital depreciation. A comprehensive approach for an asset management in transmission systems thus focuses on the 'life-cycle costs' of the individual equipment. The objective of the life management process is the optimal utilisation of the remaining life time regarding a given reliability of service and a constant distribution of costs for reinvestment and maintenance ensuring a suitable return. In distribution systems the high number of components would require an enormous effort for the consideration of single individuals. Therefore statistical approaches have been used successfully in practical applications. Newest insights gained by a German research project on asset management systems in distribution grids give an outlook to future developments. (author)

  20. Asset management techniques

    International Nuclear Information System (INIS)

    Schneider, Joachim; Gaul, Armin J.; Neumann, Claus; Hograefer, Juergen; Wellssow, Wolfram; Schwan, Michael; Schnettler, Armin

    2006-01-01

    Deregulation and an increasing competition in electricity markets urge energy suppliers to optimize the utilization of their equipment, focusing on technical and cost-effective aspects. As a respond to these requirements utilities introduce methods formerly used by investment managers or insurance companies. The article describes the usage of these methods, particularly with regard to asset management and risk management within electrical grids. The essential information needed to set up an appropriate asset management system and differences between asset management systems in transmission and distribution systems are discussed. The bulk of costs in electrical grids can be found in costs for maintenance and capital depreciation. A comprehensive approach for an asset management in transmission systems thus focuses on the 'life-cycle costs' of the individual equipment. The objective of the life management process is the optimal utilisation of the remaining life time regarding a given reliability of service and a constant distribution of costs for reinvestment and maintenance ensuring a suitable return. In distribution systems the high number of components would require an enormous effort for the consideration of single individuals. Therefore statistical approaches have been used successfully in practical applications. Newest insights gained by a German research project on asset management systems in distribution grids give an outlook to future developments. (author)

  1. The Use of Islamic Real Estate Investment Trust (I-REITs as a Contemporary Instrument in Developing Waqf Assets: Potential Structure, Issues and Challenges

    Directory of Open Access Journals (Sweden)

    Aznan Hasan

    2017-01-01

    Full Text Available The primary objective of this paper is to explore the potential of Islamic Real Estate Investment Trusts (I-REITs as an effective instrument for financing waqf development activities. This study employs legal research methodology, (the data used were largely library-based and documentary in nature, in which opinions of jurists, classical and contemporary are analysed in discussing the potential of I-REITs as a mechanism to develop waqf assets. Besides, several resolutions issued by relevant market authorities are referred to in this study. The study concludes that despite several challenges, with proper implementation, I-REITs may be adopted by a waqf institution as a mechanism to finance the development of their waqf assets. The novelty of this paper lies in the proposed structure of I-REITs, which can be a useful reference for the policy-makers and REITs issuers in establishing an enabling environment within which waqf I-REITs can potentially operate. Therefore, this study hopes to shed some light on the potential of waqf I-REIT to become an asset class to provide diversity for the public to give waqf.

  2. Embedding the Circular Economy in Investment Decision-making for Capital Assets – A Business Case Framework

    NARCIS (Netherlands)

    Korse, M.; Ruitenburg, Richard Jacob; Toxopeus, Marten E.; Braaksma, Anne Johannes Jan

    2016-01-01

    Industry shows an increasing interest in the circular economy. However, circularity for physical capital assets is still ill-defined and existing models are complex and information dependent hindering implementation. This paper addresses these gaps by operationalizing circular economy principles and

  3. Asset management trends and challenges

    Energy Technology Data Exchange (ETDEWEB)

    Rijks, E. [Continuon, Arnhem (Netherlands); Ford, G.L. [PowerNex Associates Inc., Toronto, ON (Canada); Sanchis, G. [Reseau de Transport d' Electricite, Paris (France)

    2007-07-01

    Recent business and regulatory changes in the electric power industry have affected the operation of electric utilities. Most have accepted competition and commercialization. Various strategies have emerged as companies strive to improve performance and retain profitability in an environment where competition or regulatory pressure is reducing revenues at a time when customer expectation is increasing. As focus shifts away from engineering excellence towards commercial performance, the new business ideology for electric utilities is to optimize asset management. This paper identified asset management technology trends, opportunities and challenges. Although many utilities are currently comfortable with their existing asset management processes, regulators are increasingly scrutinizing utilities as they seek approval for rates and investments in aging infrastructure. Much more rigorous financial analysis methods are needed to justify the large investments that are needed. In addition, the credibility of the processes and methods used by utilities will be increasingly questioned. In recognition of the growing importance of asset management, several initiatives have been launched to provide forums for sharing information and to provide a unifying force to asset management methods. The International Council on Large Electric Systems (CIGRE) was one of the first to recognize the importance of asset management. This paper summarized recent CIGRE activities as well as the developments of publicly available specification (PAS) 55 in the United Kingdom. It was concluded that utilities that adopt standardized approaches will be more credible in the eyes of regulatory authorities. 3 refs., 4 figs.

  4. Optimal investment horizons

    Science.gov (United States)

    Simonsen, I.; Jensen, M. H.; Johansen, A.

    2002-06-01

    In stochastic finance, one traditionally considers the return as a competitive measure of an asset, i.e., the profit generated by that asset after some fixed time span Δt, say one week or one year. This measures how well (or how bad) the asset performs over that given period of time. It has been established that the distribution of returns exhibits ``fat tails'' indicating that large returns occur more frequently than what is expected from standard Gaussian stochastic processes [1-3]. Instead of estimating this ``fat tail'' distribution of returns, we propose here an alternative approach, which is outlined by addressing the following question: What is the smallest time interval needed for an asset to cross a fixed return level of say 10%? For a particular asset, we refer to this time as the investment horizon and the corresponding distribution as the investment horizon distribution. This latter distribution complements that of returns and provides new and possibly crucial information for portfolio design and risk-management, as well as for pricing of more exotic options. By considering historical financial data, exemplified by the Dow Jones Industrial Average, we obtain a novel set of probability distributions for the investment horizons which can be used to estimate the optimal investment horizon for a stock or a future contract.

  5. ECO INVESTMENT PROJECT MANAGEMENT THROUGH TIME APPLYING ARTIFICIAL NEURAL NETWORKS

    Directory of Open Access Journals (Sweden)

    Tamara Gvozdenović

    2007-06-01

    Full Text Available he concept of project management expresses an indispensable approach to investment projects. Time is often the most important factor in these projects. The artificial neural network is the paradigm of data processing, which is inspired by the one used by the biological brain, and it is used in numerous, different fields, among which is the project management. This research is oriented to application of artificial neural networks in managing time of investment project. The artificial neural networks are used to define the optimistic, the most probable and the pessimistic time in PERT method. The program package Matlab: Neural Network Toolbox is used in data simulation. The feed-forward back propagation network is chosen.

  6. Collective Investment Decision Making with Heterogeneous Time Preferences

    OpenAIRE

    Gollier, Christian; Zeckhauser, Richard

    2003-01-01

    We examine the investment decision problem of a group whose members have heterogeneous time preferences. In particular, they have different discount factors for utility, possibly not exponential. We characterize the properties of efficient allocations of resources and of shadow prices that would decentralize such allocations. We show in particular that the term structure of interest rates is decreasing when all members have DARA preferences. Heterogeneous groups should not use exponential dis...

  7. Management of Excess Material in the Navys Real Time Reutilization Asset Management Facilities Needs Improvement

    Science.gov (United States)

    2017-01-23

    Commands, that originally purchased the material from the command’s operational and maintenance fund. A flowchart of the RRAM material management process...streamlines business operations for financial and supply chain management . 22 SECNAVINST 4440.33A. The Navy retained excess material stored in 10 of...No. DODIG-2017-043 J A N U A R Y 2 3 , 2 0 1 7 Management of Excess Material in the Navy’s Real-Time Reutilization Asset Management Facilities

  8. Investing in Early Human Development: Timing and Economic Efficiency

    Science.gov (United States)

    Doyle, Orla; Harmon, Colm P.; Heckman, James J.; Tremblay, Richard E.

    2010-01-01

    Policy discussions to ameliorate socioeconomic (SES) inequalities are increasingly focused on investments in early childhood. Yet such interventions are costly to implement, and clear evidence on the optimal time to intervene to yield a high economic and social return in the future is meagre. The majority of successful early childhood interventions start in the preschool years. However socioeconomic gradients in cognitive skills, socio-emotional functioning and health can be observed by age three, suggesting that preventative programmes starting earlier in childhood may be even more effective. We discuss the optimal timing of early childhood intervention with reference to recent research in developmental neuroscience. We motivate the need for early intervention by providing an overview of the impact of adverse risk factors during the antenatal and early childhood periods on outcomes later in life. We provide a brief review of the economic rationale for investing early in life and propose the “antenatal investment hypothesis”. We conclude by discussing a suite of new European interventions that will inform this optimal timing debate. PMID:19213617

  9. Markov Chain Model with Catastrophe to Determine Mean Time to Default of Credit Risky Assets

    Science.gov (United States)

    Dharmaraja, Selvamuthu; Pasricha, Puneet; Tardelli, Paola

    2017-11-01

    This article deals with the problem of probabilistic prediction of the time distance to default for a firm. To model the credit risk, the dynamics of an asset is described as a function of a homogeneous discrete time Markov chain subject to a catastrophe, the default. The behaviour of the Markov chain is investigated and the mean time to the default is expressed in a closed form. The methodology to estimate the parameters is given. Numerical results are provided to illustrate the applicability of the proposed model on real data and their analysis is discussed.

  10. Investment timing decisions in a stochastic duopoly model

    Energy Technology Data Exchange (ETDEWEB)

    Marseguerra, Giovanni [Istituto di Econometria e CRANEC, Universita Cattolica del Sacro Cuore di Milan (Italy)]. E-mail: giovanni.marseguerra@unicatt.it; Cortelezzi, Flavia [Dipartimento di Diritto ed Economia delle Persone e delle Imprese, Universita dell' Insubria (Italy)]. E-mail: flavia.cortelezzi@uninsubria.it; Dominioni, Armando [CORE-Catholique de Louvain la Neuve (Belgium)]. E-mail: dominioni@core.ucl.ac.be

    2006-08-15

    We investigate the role of strategic considerations on the optimal timing of investment when firms compete for a new market (e.g., the provision of an innovative product) under demand uncertainty. Within a continuous time model of stochastic oligopoly, we show that strategic considerations are likely to be of limited impact when the new product is radically innovative whilst the fear of a rival's entry may deeply affect firms' decisions whenever innovation is to some extent limited. The welfare analysis shows surprisingly that the desirability of the different market structures considered does not depend on the fixed entry cost.

  11. Investment timing decisions in a stochastic duopoly model

    International Nuclear Information System (INIS)

    Marseguerra, Giovanni; Cortelezzi, Flavia; Dominioni, Armando

    2006-01-01

    We investigate the role of strategic considerations on the optimal timing of investment when firms compete for a new market (e.g., the provision of an innovative product) under demand uncertainty. Within a continuous time model of stochastic oligopoly, we show that strategic considerations are likely to be of limited impact when the new product is radically innovative whilst the fear of a rival's entry may deeply affect firms' decisions whenever innovation is to some extent limited. The welfare analysis shows surprisingly that the desirability of the different market structures considered does not depend on the fixed entry cost

  12. Tactical Asset Allocation mit Genetischen Algorithmen

    OpenAIRE

    Manuel Ammann; Christian Zenkner

    2003-01-01

    In this study of tactical asset allocation, we use a genetic algorithm to implement a market timing strategy. The algorithm makes a daily decision whether to invest in the market index or in a riskless asset. The market index is represented by the S&P500 Composite Index, the riskless asset by a 3-month T-Bill. The decision of the genetic algorithm is based on fundamental macroeconomic variables. The association of fundamental variables with a set of operators creates a space of possible strat...

  13. COINTEGRATION ANALYSIS OF EUROPEAN STOCK MARKETS (ROMANIA, GERMANY, FRANCE AND POLAND FROM THE PERSPECTIVE OF THE NET ASSETS INVESTMENT OF THE ROMANIAN MANDATORY PRIVATE PENSION FUNDS

    Directory of Open Access Journals (Sweden)

    Andreea-Cristina PETRICA

    2016-12-01

    Full Text Available The goal of this paper is to investigate cointegration between Bucharest Stock Exchange and three European Stock Markets: Germany,France and Poland, respectively. The choice of the European markets is based on the net assets investment of the Romanian mandatory private pension funds. On June 30, 2016, according to the Romanian Financial Supervisory Authority 91.28% of all investments in shares of private pension funds have been performed in Romanian shares, while the rest of 8.72% (0.44 billion lei have been performed in shares issued by Germany (2.34%, France (2.23%, Poland (0.89% and other countries. Having the intention of achieving maximizing returns by managing risk, and also to capture the co-movements in the above markets,we perform the cointegration analysis to examine portfolio diversification of the Romanian mandatory private pension funds. The empirical analysis is based on daily closing prices of the BET Index, DAX 30 Index, CAC 40 Index and WIG 20 Index and covers the period from 30 January 2006 to 27 September 2016 (2713 observations.

  14. It was the best of times, it was the worst of times: a tale of two years in not-for-profit hospital financial investments.

    Science.gov (United States)

    Song, Paula H; Smith, Dean G; Wheeler, John R C

    2008-01-01

    Not-for-profit (NFP) hospitals' accumulations of financial assets have been growing steadily over the past 10 years. Surprisingly, little is known about how much investment reserves represent and how they are handled among NFP hospitals. The purpose of this study is to evaluate investment strategies in financial assets among NFP hospitals. Specifically, this article seeks to explore how NFP hospitals allocate and manage financial assets, how much risk hospitals employ in their investment strategies, and the risk and return trade-off under contrasting market conditions. Using two years of survey data from the Common fund Benchmarks Study for Health Care Institutions for fiscal years 2002 and 2003, we analyze NFP hospitals' investment strategies by comparing asset size, investment management characteristics, board characteristics, asset allocation, levels of risk, and annual returns. Univariate regression analysis is used to evaluate the relationship between risk and return. NFP hospitals have sizeable long-term financial assets, averaging over $558 million in 2002 and $634 million in 2003. Two thirds of these funds are invested in long-term operating funds followed by defined benefit pension funds and insurance reserves; management of these funds is primarily outsourced. NFP hospitals allocate, on average, 50% of their operating fund assets to equities. During the stock market downturn in 2002, each 1% investment in equities was significantly associated with a -0.18% decrease in annual returns. In contrast, the relationship is almost exactly opposite--consistent with the relationship typically associated with risk and return--in 2003. NFP hospitals with heavy reliance on investment income to boost total profit margins may have difficulty adjusting to periods of low performance. Evaluation of the performance and financial condition of the hospital must account for the size and composition of financial assets.

  15. Optimal Investment Timing and Size of a Logistics Park: A Real Options Perspective

    Directory of Open Access Journals (Sweden)

    Dezhi Zhang

    2017-01-01

    Full Text Available This paper uses a real options approach to address optimal timing and size of a logistics park investment with logistics demand volatility. Two important problems are examined: when should an investment be introduced, and what size should it be? A real option model is proposed to explicitly incorporate the effect of government subsidies on logistics park investment. Logistic demand that triggers the threshold for investment in a logistics park project is explored analytically. Comparative static analyses of logistics park investment are also carried out. Our analytical results show that (1 investors will select smaller sized logistics parks and prepone the investment if government subsidies are considered; (2 the real option will postpone the optimal investment timing of logistics parks compared with net present value approach; and (3 logistic demands can significantly affect the optimal investment size and timing of logistics park investment.

  16. Financing Asset Sales and Business Cycles

    OpenAIRE

    Arnold, Marc; Hackbarth, Dirk; Puhan, Tatjana-Xenia

    2013-01-01

    This paper analyzes the decision of firms to sell assets to fund investments (financing asset sales). For a sample of U.S. manufacturing firms during the 1971-2010 period, we document new stylized facts about financing asset sales that cannot be explained by traditional motives for selling assets, such as financial distress or financing constraints. Using a structural model of financing, investment, and macroeconomic risk, we show that financing asset sales attenuate the debt overhang problem...

  17. The complexity classification of intangible assets

    Directory of Open Access Journals (Sweden)

    Paula-Angela Vidrascu

    2013-03-01

    Full Text Available This paper tries to solve the complex problems of arising in the definition and delimitation of the intangible assets. Over time the technology develops and resizes continuously and along with it redefine in a very short time the theoretical and practical concepts of the economy. From the economic point of view an asset can be defined as a resource controlled by the enterprise as a result of past transactions or investments, and which is expected to generate future economic benefits. Intangible assets are the most important economic resources of an entity because in terms of their analysis of the technical, material and financial ñ of her evolution over time and the ability of continuous development. The main purpose of this article is to analyse the research carried out for the purposes of the definition and delimitation of intangible assets.

  18. Inflation Protected Investment Strategies

    Directory of Open Access Journals (Sweden)

    Mirco Mahlstedt

    2016-03-01

    Full Text Available In this paper, a dynamic inflation-protected investment strategy is presented, which is based on traditional asset classes and Markov-switching models. Different stock market, as well as inflation regimes are identified, and within those regimes, the inflation hedging potential of stocks, bonds, real estate, commodities and gold are investigated. Within each regime, we determine optimal investment portfolios driven by the investment idea of protection from losses due to changing inflation if inflation is rising or high, but decoupling the performance from inflation if inflation is low. The results clearly indicate that these asset classes behave differently in different stock market and inflation regimes. Whereas in the long-run, we agree with the general opinion in the literature that stocks and bonds are a suitable hedge against inflation, we observe for short time horizons that the hedging potential of each asset class, especially of real estate and commodities, depend strongly on the state of the current market environment. Thus, our approach provides a possible explanation for different statements in the literature regarding the inflation hedging properties of these asset classes. A dynamic inflation-protected investment strategy is developed, which combines inflation protection and upside potential. This strategy outperforms standard buy-and-hold strategies, as well as the well-known 1 N -portfolio.

  19. Projection of the Russian economic development in the framework of the optimal control model by investments in fixed assets

    Directory of Open Access Journals (Sweden)

    Alexander Mikhajlovich Tarasyev

    2014-09-01

    Full Text Available In this paper, we develop an economic growth model taking into account two factors of production: fixed capital and labor force, to study the dynamics of GDP growth. The dependence of the output of these factors is described by a production function of the exponential type. Within the framework of the optimal control theory, the optimization problem for investment levels is being solved to maximize the integral index of consumption. We study the qualitative properties of optimal trajectories as solutions of the Hamiltonian systems arising in Pontryagin’s maximum principle. The sensitivity analysis of the equilibrium solutions of the economic system is implemented with respect to the elasticity coefficients of the production function, the depreciation rate of the capital, and the discount factor, and growth trends are indicated. The econometric analysis of the model parameters is provided basing on real data for the Russian economy. In accordance with the results of the regression analysis, the projection of economic development is constructed in conditions of the applicability of the economic growth model.

  20. Application of Entry-Time Processes to Asset Management in Nuclear Power Plants

    International Nuclear Information System (INIS)

    Nelson, Paul; Wang, Shuwen; Kee, Ernie J.

    2006-01-01

    The entry-time approach to dynamic reliability is based upon computational solution of the Chapman-Kolmogorov (generalized state-transition) equations underlying a certain class of marked point processes. Previous work has verified a particular finite-difference approach to computational solution of these equations. The objective of this work is to illustrate the potential application of the entry-time approach to risk-informed asset management (RIAM) decisions regarding maintenance or replacement of major systems within a plant. Results are presented in the form of plots, with replacement/maintenance period as a parameter, of expected annual revenue, along with annual variance and annual skewness as indicators of associated risks. Present results are for a hypothetical system, to illustrate the capability of the approach, but some considerations related to potential application of this approach to nuclear power plants are discussed. (authors)

  1. Determinants of Private Investment in Ethiopia: A Time Series Study ...

    African Journals Online (AJOL)

    In spite of little improvement in the post‐socialist era, the share of private investment in GDP has never been above 6 percent even until 2003. Yet, the reasons behind the weak performance have not been well studied. Hence, investigating the performance trend and maim constraints of private investment in Ethiopia ...

  2. Financial Integration and Asset Returns

    OpenAIRE

    P Martin; H Rey

    2000-01-01

    The paper investigates the impact of financial integration on asset return, risk diversification and breadth of financial markets. We analyse a three-country macroeconomic model in which (i) the number of financial assets is endogenous; (ii) assets are imperfect substitutes; (iii) cross-border asset trade entails some transaction costs; (iv) the investment technology is indivisible. In such an environment, lower transaction costs between two financial markets translate to higher demand for as...

  3. 17 CFR 256.136 - Temporary cash investments.

    Science.gov (United States)

    2010-04-01

    ... 17 Commodity and Securities Exchanges 3 2010-04-01 2010-04-01 false Temporary cash investments... UTILITY HOLDING COMPANY ACT OF 1935 3. Current and Accrued Assets § 256.136 Temporary cash investments. This account shall include the cost of investments, such as demand and time loans, bankers' acceptances...

  4. Public Policy Towards the Sale of State Assets in Troubled Times: Lessons from the Irish Experience

    NARCIS (Netherlands)

    Gorecki, P. K.; Lyons, S.; Tol, R.S.J.

    2011-01-01

    The sale of state assets, both tangible (e.g. commercial firms) and intangible (e.g. radio spectrum), can address budgetary shortfalls. However, drawing on the Irish experience to inform this important issue, it becomes clear that much more is involved in selling state assets in electricity, gas,

  5. DETERMINANTS OF PRIVATE INVESTMENT IN ETHIOPIA A Time ...

    African Journals Online (AJOL)

    Fitsum

    ambachewmekonnen@yahoo.com, Mobile: +44(0)7601068626. ..... augmented with characteristics presumed to constrain the investment .... But, this reality ..... With the application of these procedures, one final model for each has been.

  6. Timing of Investment and Dynamic Pricing in Privatized Sectors

    OpenAIRE

    Tarola, Ornella; Trento, Sandro

    2010-01-01

    Firms in equipment-intensive sectors, where investment in production is performed at diminishing marginal cost, spend billions of dollars in equipment and production capacity. Typically, this expenditure is induced by either the replacement of existing equipment, which deteriorates with age and can result in higher operating costs and lower production capacity, or further investment, to benefit from any technological improvement embedded in new equipment. We identify the optimal price policy,...

  7. Grandparental investment: The influence of reproductive timing and family size.

    Science.gov (United States)

    Coall, David A; Meier, Marc; Hertwig, Ralph; Wänke, Michaela; Höpflinger, François

    2009-01-01

    The influence that grandparents have on the life history traits of their descendants has been studied extensively. However, no attention has been paid to the potential influence a grandparent's own reproductive history has on the investment they make in their grandchildren. We use data from 658 Swiss grandchildren and 591 of their grandparents to investigate whether grandparents' reproductive scheduling and family size influence the amount of investment grandparents make in a focal grandchild (shared contacts, occasions to meet, activities, discussions, interests, and important roles the grandparent plays). Grandparents who were younger when they had their first child had more children and grandchildren; this relationship strengthened after controlling for grandparental age, sex, lineage, and education (all P children or grandchildren was associated with reduced levels of grandparental investment. After adjustment for a wide range of factors known to influence investment, having more children or grandchildren and having a first child or grandchild at a younger age were associated with reduced investment in 14 of 24 analyses (all P family size. Interestingly, these relationships were only present in data reported from the grandchild's point of view, not the grandparent's. This analysis provides preliminary evidence that grandparents' reproductive strategies have consequences for the amount of investment they make in their grandchildren. These results are examined in terms of the trade-offs between current and future reproduction and offspring quality and quantity. 2009 Wiley-Liss, Inc.

  8. The Dirichlet Portfolio Model: Uncovering the Hidden Composition of Hedge Fund Investments

    OpenAIRE

    Korsos, Laszlo F.

    2013-01-01

    Hedge funds have long been viewed as a veritable "black box" of investing since outsiders may never view the exact composition of portfolio holdings. Therefore, the ability to estimate an informative set of asset weights is highly desirable for analysis. We present a compositional state space model for estimation of an investment portfolio's unobserved asset allocation weightings on a set of candidate assets when the only observed information is the time series of portfolio returns and the ca...

  9. Scaling symmetry, renormalization, and time series modeling: the case of financial assets dynamics.

    Science.gov (United States)

    Zamparo, Marco; Baldovin, Fulvio; Caraglio, Michele; Stella, Attilio L

    2013-12-01

    We present and discuss a stochastic model of financial assets dynamics based on the idea of an inverse renormalization group strategy. With this strategy we construct the multivariate distributions of elementary returns based on the scaling with time of the probability density of their aggregates. In its simplest version the model is the product of an endogenous autoregressive component and a random rescaling factor designed to embody also exogenous influences. Mathematical properties like increments' stationarity and ergodicity can be proven. Thanks to the relatively low number of parameters, model calibration can be conveniently based on a method of moments, as exemplified in the case of historical data of the S&P500 index. The calibrated model accounts very well for many stylized facts, like volatility clustering, power-law decay of the volatility autocorrelation function, and multiscaling with time of the aggregated return distribution. In agreement with empirical evidence in finance, the dynamics is not invariant under time reversal, and, with suitable generalizations, skewness of the return distribution and leverage effects can be included. The analytical tractability of the model opens interesting perspectives for applications, for instance, in terms of obtaining closed formulas for derivative pricing. Further important features are the possibility of making contact, in certain limits, with autoregressive models widely used in finance and the possibility of partially resolving the long- and short-memory components of the volatility, with consistent results when applied to historical series.

  10. A behavioral asset pricing model with a time-varying second moment

    International Nuclear Information System (INIS)

    Chiarella, Carl; He Xuezhong; Wang, Duo

    2006-01-01

    We develop a simple behavioral asset pricing model with fundamentalists and chartists in order to study price behavior in financial markets when chartists estimate both conditional mean and variance by using a weighted averaging process. Through a stability, bifurcation, and normal form analysis, the market impact of the weighting process and time-varying second moment are examined. It is found that the fundamental price becomes stable (unstable) when the activities from both types of traders are balanced (unbalanced). When the fundamental price becomes unstable, the weighting process leads to different price dynamics, depending on whether the chartists act as either trend followers or contrarians. It is also found that a time-varying second moment of the chartists does not change the stability of the fundamental price, but it does influence the stability of the bifurcations. The bifurcation becomes stable (unstable) when the chartists are more (less) concerned about the market risk characterized by the time-varying second moment. Different routes to complicated price dynamics are also observed. The analysis provides an analytical foundation for the statistical analysis of the corresponding stochastic version of this type of behavioral model

  11. Scaling symmetry, renormalization, and time series modeling: The case of financial assets dynamics

    Science.gov (United States)

    Zamparo, Marco; Baldovin, Fulvio; Caraglio, Michele; Stella, Attilio L.

    2013-12-01

    We present and discuss a stochastic model of financial assets dynamics based on the idea of an inverse renormalization group strategy. With this strategy we construct the multivariate distributions of elementary returns based on the scaling with time of the probability density of their aggregates. In its simplest version the model is the product of an endogenous autoregressive component and a random rescaling factor designed to embody also exogenous influences. Mathematical properties like increments’ stationarity and ergodicity can be proven. Thanks to the relatively low number of parameters, model calibration can be conveniently based on a method of moments, as exemplified in the case of historical data of the S&P500 index. The calibrated model accounts very well for many stylized facts, like volatility clustering, power-law decay of the volatility autocorrelation function, and multiscaling with time of the aggregated return distribution. In agreement with empirical evidence in finance, the dynamics is not invariant under time reversal, and, with suitable generalizations, skewness of the return distribution and leverage effects can be included. The analytical tractability of the model opens interesting perspectives for applications, for instance, in terms of obtaining closed formulas for derivative pricing. Further important features are the possibility of making contact, in certain limits, with autoregressive models widely used in finance and the possibility of partially resolving the long- and short-memory components of the volatility, with consistent results when applied to historical series.

  12. Asset management inventory and data collection.

    Science.gov (United States)

    2009-10-01

    An efficient and accurate inventory of a state highway agencys assets, along with the means to assess the condition : of those assets and model their performance, is critical to enabling an agency to make informed investment decisions : in a Trans...

  13. Space and time: Wind in an investment planning model

    International Nuclear Information System (INIS)

    Neuhoff, Karsten; Ehrenmann, Andreas; Butler, Lucy; Cust, Jim; Hoexter, Harriet; Keats, Kim; Kreczko, Adam; Sinden, Graham

    2008-01-01

    Investment planning models inform investment decisions and government policies. Current models do not capture the intermittent nature of renewable energy sources, restricting the applicability of the models for high penetrations of renewables. We provide a methodology to capture spatial variation in wind output in combination with transmission constraints. The representation of wind distributions using stochastic approaches or using extensive historic data sets exceeds computational constraints for real world application. Hence we restrict the amount of input data, and use bootstrapping to illustrate the robustness of the results. For the UK power system we model wind deployment and the value of transmission capacity

  14. 12 CFR 223.22 - What valuation and timing principles apply to asset purchases?

    Science.gov (United States)

    2010-01-01

    ... the covered transaction after the purchase may be reduced to reflect amortization or depreciation of the asset, to the extent that such reductions are consistent with GAAP. (2) Exceptions. (i) Purchase...

  15. Efficiently Inefficient Markets for Assets and Assets Management

    DEFF Research Database (Denmark)

    Garleanu, Nicolae; Heje Pedersen, Lasse

    We consider a model where investors can invest directly or search for an asset manager, information about assets is costly, and managers charge an endogenous fee. The efficiency of asset prices is linked to the efficiency of the asset management market: if investors can find managers more easily......, more money is allocated to active management, fees are lower, and asset prices are more efficient. Informed managers outperform after fees, uninformed managers underperform after fees, and the net performance of the average manager depends on the number of "noise allocators." Finally, we show why large...

  16. Return models and dynamic asset allocation strategies

    OpenAIRE

    Shi, Wyanet Wen

    2017-01-01

    This thesis studies the design of optimal investment strategies. A strategy is considered optimal when it minimizes the variance of terminal portfolio wealth for a given level of expected terminal portfolio wealth, or equivalently, maximizes an investor's utility. We study this issue in two particular situations: when asset returns follow a continuous-time path-independent process, and when they follow a discrete-time path-dependent process. Continuous-time path-independent return mode...

  17. DETERMINANTS OF PRIVATE INVESTMENT IN ETHIOPIA A Time ...

    African Journals Online (AJOL)

    Fitsum

    Hence, this study adopts the practice of employing the flexible accelerator model augmented with ... In addition, many potential determinants such as wage rates, interest rates, taxes, and other .... consumer demand in explaining investment via accelerator principle, Sloman (2003) says “the ...... Malaysia for Australia”.

  18. Beyond Keynesianism : global infrastructure investments in times of crisis

    OpenAIRE

    Lin, Justin Yifu; Doemeland, Doerte

    2012-01-01

    As the world recovers only slowly from the 2008 financial crisis and Europe is facing a looming debt crisis, concerns have increased that the "new normal" -- a period of high unemployment, low returns on investment, high risks, and low growth -- may become protracted in advanced economies. If growth remains weak, unemployment rates and debt levels will be slow to recede. Consequently, the ...

  19. Investing in acute health services: is it time to change the paradigm?

    Science.gov (United States)

    Kerr, Rhonda; Hendrie, Delia V; Moorin, Rachael

    2014-11-01

    Capital is an essential enabler of contemporary public hospital services funding hospital buildings, medical equipment, information technology and communications. Capital investment is best understood within the context of the services it is designed and funded to facilitate. The aim of the present study was to explore the information on capital investment in Australian public hospitals and the relationship between investment and acute care service delivery in the context of efficient pricing for hospital services. This paper examines the investment in Australian public hospitals relative to the growth in recurrent hospital costs since 2000-01 drawing from the available data, the grey literature and the reports of six major reviews of hospital services in Australia since 2004. Although the average annual capital investment over the decade from 2000-01 represents 7.1% of recurrent expenditure on hospitals, the most recent estimate of the cost of capital consumed delivering services is 9% per annum. Five of six major inquiries into health care delivery required increased capital funding to bring clinical service delivery to an acceptable standard. The sixth inquiry lamented the quality of information on capital for public hospitals. In 2012-13, capital investment was equivalent to 6.2% of recurrent expenditure, 31% lower than the cost of capital consumed in that year. Capital is a vital enabler of hospital service delivery and innovation, but there is a poor alignment between the available information on the capital investment in public hospitals and contemporary clinical requirements. The policy to have capital included in activity-based payments for hospital services necessitates an accurate value for capital at the diagnosis-related group (DRG) level relevant to contemporary clinical care, rather than the replacement value of the asset stock. WHAT IS KNOWN ABOUT THE TOPIC?: Deeble's comprehensive hospital-based review of capital investment and costs, published in

  20. 12 CFR 701.36 - FCU ownership of fixed assets.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 6 2010-01-01 2010-01-01 false FCU ownership of fixed assets. 701.36 Section... ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS § 701.36 FCU ownership of fixed assets. (a) Investment in Fixed Assets. (1) No Federal credit union with $1,000,000 or more in assets may invest in any fixed...

  1. Making sense in asset markets: Strategies for Implicit Organizations

    Directory of Open Access Journals (Sweden)

    Johannes M. Lehner

    2015-12-01

    Full Text Available While asset markets are traditionally left to economic inquiry, the paper shows that there is both a legal possibility and an incentive for organizing within such markets and for exercising market share-based strategic maneuvering. It proposes, based on sensemaking theory, Implicit Organizations in asset markets to exploit equivocality for momentum trading strategies. An Implicit Organization fulfills the criteria of an organization, while maintaining the image of a perfect market. Its members coordinate via market signals and fixed investment time windows to ensure positive returns to strategic maneuvering in asset markets. In support of hypotheses derived from sensemaking theory, results of empirical studies from two different investment contexts (Xetra and NYSE provide evidence that equivocal analysts’ recommendations predict investment returns after a fixed time period.

  2. Trends in asset structure between not-for-profit and investor-owned hospitals.

    Science.gov (United States)

    Song, Paula H; Reiter, Kristin L

    2010-12-01

    The delivery of health care is a capital-intensive industry, and thus, hospital investment strategy continues to be an important area of interest for both health policy and research. Much attention has been given to hospitals' capital investment policies with relatively little attention to investments in financial assets, which serve an important role in not-for-profit (NFP) hospitals. This study describes and analyzes trends in aggregate asset structure between NFP and investor-owned (IO) hospitals during the post-capital-based prospective payment system implementation period, providing the first documentation of long-term trends in hospital investment. The authors find hospitals' aggregate asset structure differs significantly based on ownership, size, and profitability. For both NFP and IO hospitals, financial securities have remained consistent over time, while fixed asset representation has declined in IO hospitals.

  3. Trends in Asset Structure between Not-for-Profit and Investor Owned Hospitals

    Science.gov (United States)

    Song, Paula H.; Reiter, Kristin L.

    2010-01-01

    The delivery of health care is a capital intensive industry and thus hospital investment strategy continues to be an important area of interest for both health policy and research. Much attention has been given to hospitals’ capital investment policies with relatively little attention to investments in financial assets, which serve an important role in NFP hospitals. This study describes and analyzes trends in aggregate asset structure between NFP and IO hospitals during the post-capital based PPS implementation period, providing the first documentation of long-term trends in hospital investment. We find hospitals’ aggregate asset structure differs significantly based on ownership, size, and profitability. For both NFP and IO hospitals, financial securities have remained consistent over time, while fixed asset representation has declined in IO hospitals. PMID:20519429

  4. The Effects of Abandonment Options on Investment Timing and Profit Sharing of FDI

    Directory of Open Access Journals (Sweden)

    Weiwei Zhang

    2017-01-01

    Full Text Available The paper incorporates cooperative game theory into a real option method in a foreign direct investment setting and examines the operational decisions of a multinational corporation in a cooperative framework, where the corporation is endowed with an abandonment option and shares its profit with the host country. In particular, we investigate how the abandonment options affect the optimal investment timing and the optimal profit share of a foreign direct investment using a real option game method. We show that the flexibility of the abandonment option induces the corporation to investment earlier, which indicates the negative effects on investment trigger. The result is consistent with intuition since the abandonment option provides insurance and thus reduces the overall risk of the project. We also find that the introduction of the abandonment option reduces the optimal profit share in a cooperative framework and in turn the lower profit share increases the investment trigger, thereby having a positive effect on the investment threshold to hinder the investment. By numerical analysis, we find that the overall effect of the abandonment options is inversely related to the investment trigger. These findings provide quantitative analysis about the decisions regarding cooperation in international investment extraction projects.

  5. Indicators of responsible investing

    NARCIS (Netherlands)

    Scholtens, Bert

    Responsible investment has witnessed significant changes in the past decade. It is estimated that about one fifth of assets under management in the US and about half of all assets under management in the EU are done on the basis of one of the seven responsible investment strategies. This paper

  6. Input price risk and optimal timing of energy investment: choice between fossil- and biofuels

    Energy Technology Data Exchange (ETDEWEB)

    Murto, Pauli; Nese, Gjermund

    2002-05-01

    We consider energy investment, when a choice has to be made between fossil fuel and biomass fired production technologies. A dynamic model is presented to illustrate the effect of the different degrees of input price uncertainty on the choice of technology and the timing of the investment. It is shown that when the choice of technology is irreversible, it may be optimal to postpone the investment even if it would otherwise be optimal to invest in one or both of the plant types. We provide a numerical example based on cost, estimates of two different power plant types. (author)

  7. Input price risk and optimal timing of energy investment: choice between fossil- and biofuels

    International Nuclear Information System (INIS)

    Murto, Pauli; Nese, Gjermund

    2002-01-01

    We consider energy investment, when a choice has to be made between fossil fuel and biomass fired production technologies. A dynamic model is presented to illustrate the effect of the different degrees of input price uncertainty on the choice of technology and the timing of the investment. It is shown that when the choice of technology is irreversible, it may be optimal to postpone the investment even if it would otherwise be optimal to invest in one or both of the plant types. We provide a numerical example based on cost, estimates of two different power plant types. (author)

  8. Investments, time preferences and public transfers paid to women.

    Science.gov (United States)

    Rubalcava, Luis; Teruel, Graciela; Thomas, Duncan

    2009-04-01

    The literature suggests men and women may have different preferences. This paper exploits a social experiment in which women in treatment households were given a large public cash transfer (PROGRESA). In an effort to disentangle the effect of additional income in the household from the effect of changing the distribution of income within the household, the impact of PROGRESA income on savings and investments decisions is compared with all other income sources (after taking into account participation in the program). Additional money in the hands of women is spent on small livestock (which are traditionally managed and cared for by women), improved nutrition and on child goods (particularly clothing). Among single headed households, PROGRESA income is not treated differently from other income. Direct evidence on inter-temporal preferences gathered in the Mexican Family Live Survey indicates that women are more patient than males when thinking about the future. Taken together, the results suggest that PROGRESA income results in a shift in the balance of power within households and women allocated more resources towards investments in the future.

  9. Experiments on asset markets & decision making : The role of information and time

    NARCIS (Netherlands)

    Xu, Yilong

    2017-01-01

    This dissertation applies experimental methods to answer a number of questions in economics. Chapter 2 studies whether mispricing in an asset market can be mitigated by introducing a futures market and how trading behaviors in these markets relate to individuals’ cognitive ability. Chapter 3 answers

  10. Interaction between Dynamic Financing and Investments

    DEFF Research Database (Denmark)

    Dockner, Engelbert J.; Mæland, Jøril; Miltersen, Kristian R.

    Debt priority rules, i.e., the rules determining how different classes of debt split the firm's assets after bankruptcy, influence the firm's investment decisions. Existing debt benefits from an investment either because the investment is equity financed or because new debt issued to (partly......) finance the investment has lower priority in the event of bankruptcy as is the case for the commonly used absolute priority rule (APR). This incentivizes equity holders to under invest. If debt priority rules are specified in such a way that existing debt can be exploited by issuing new debt, do equity...... holders have the incentive to over invest. We formulate a dynamic structural model to study the interaction of initial capital structure choice, investment policy, subsequent debt issues, and debt priority rules. We find that priority rules have a substantial impact on investment timing as well...

  11. How Are Property Investment Returns Determined? — Estimating the Micro-Structure of Asset Prices, Property Income, and Discount Rates —

    OpenAIRE

    清水, 千弘; Chihiro, Shimizu

    2014-01-01

    How exactly should one estimate property investment returns? Investors in property aim to maximize capital gains from price increases and income generated by the property. How are the returns on investment in property determined based on its characteristics, and what kind of market characteristics does it have? Focusing on the Tokyo commer-cial property market and residential property market, the purpose of this paper was to break down and measure the micro-structure of property investment re...

  12. 12 CFR 560.160 - Asset classification.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Asset classification. 560.160 Section 560.160... Lending and Investment Provisions Applicable to all Savings Associations § 560.160 Asset classification... consistent with, or reconcilable to, the asset classification system used by OTS in its Thrift Activities...

  13. Asset pricing restrictions on predictability : Frictions matter

    NARCIS (Netherlands)

    de Roon, F.A.; Szymanowska, M.

    2012-01-01

    U.S. stock portfolios sorted on size; momentum; transaction costs; market-to-book, investment-to-assets, and return-on-assets (ROA) ratios; and industry classification show considerable levels and variation of return predictability, inconsistent with asset pricing models. This means that a

  14. Optimal Consumption and Investment under Time-Varying Relative Risk Aversion

    DEFF Research Database (Denmark)

    Steffensen, Mogens

    2011-01-01

    We consider the continuous time consumption-investment problem originally formalized and solved by Merton in case of constant relative risk aversion. We present a complete solution for the case where relative risk aversion with respect to consumption varies with time, having in mind an investor...... with age-dependent risk aversion. This provides a new motivation for life-cycle investment rules. We study the optimal consumption and investment rules, in particular in the case where the relative risk aversion with respect to consumption is increasing with age....

  15. EFFICIENCY OF CURRENCY ASSET CLASSES

    Directory of Open Access Journals (Sweden)

    Mohammad R. Safarzadeh

    2013-04-01

    Full Text Available Analyzing the risk and return for the S&P Currency Index Arbitrage and the Merk Absolute Return Currency Fund, this study intends to find whether currency asset classes are worthwhile investments. To determine where the efficient currency portfolios lie in the risk and return spectrum, this paper compares the two portfolios to fixed income and equity asset portfolios. The results lead to a baffling conclusion that, in general, the returns to low-risk currency asset portfolios are higher than the equity asset portfolios of same risk level.

  16. It's about time : investing in transportation to keep Texas economically competitive.

    Science.gov (United States)

    2011-03-01

    This current report, It's About Time: Investing in Transportation to Keep Texas : Economically Competitive, updates the February 2009 report by providing : an enhanced analysis of the current state of the Texas transportation system, : determining th...

  17. Investment timing under uncertain renewable energy policy: An empirical study of small hydropower projects

    International Nuclear Information System (INIS)

    Linnerud, Kristin; Andersson, Ane Marte; Fleten, Stein-Erik

    2014-01-01

    Policy uncertainty can be a powerful deterrent to immediate investments. Based on panel data of 214 licenses to construct small run-of-the-river hydropower plants, we examine whether the prospect of a common Swedish–Norwegian market for green certificates (i.e., a renewable portfolio standard scheme) affected the timing of investments. Our results show that traditional utilities and other professional investors in the energy market acted in accordance with a real options investment rule, and the prospect of possible future subsidies delayed their investment decision. On the other hand, our results do not show that farmers and other non-professional investors incorporated timing considerations in their investment decisions. Rather, our results indicate that these investors behaved as if their investment opportunity is now-or-never, investing if the project is profitable according to a net present value investment rule, ignoring the opportunity to create additional value by waiting. The observed difference in behavior between professional and non-professional investors is interesting given the distributed nature of many renewable energy technologies, and can help planners and policymakers better understand the forces shaping the future market for electricity. - Highlights: • We examine whether the prospect of introducing subsidies delayed investments in hydropower. • We find that professional and non-professional investors behaved differently. • Professional investors explored the opportunity to create additional value by waiting. • Farmers behaved as if their investment opportunity was now-or-never. • These observations are interesting given the distributed nature of renewable energy technologies

  18. Momentum and mean-reversion in strategic asset allocation

    NARCIS (Netherlands)

    Koijen, R.S.J.; Rodriguez, J.C.; Sbuelz, A.

    2009-01-01

    We study a dynamic asset allocation problem in which stock returns exhibit short-run momentum and long-run mean reversion. We develop a tractable continuous-time model that captures these two predictability features and derive the optimal investment strategy in closed form. The model predicts

  19. The timing of pollution abatement investments and the business cycle. An international comparison

    Energy Technology Data Exchange (ETDEWEB)

    Bouman, M. [Department of Economics, Faculty of Economics and Econometrics, University of Amsterdam, Amsterdam (Netherlands); Hofkes, M.W. [Department of Economics, Faculty of Economics and Econometrics, Vrije Universiteit Amsterdam, Amsterdam (Netherlands)

    1995-12-31

    A simple equilibrium business-cycle model for an economy with both clean- and dirty-producing plants is developed. The authors derive that the optimal timing of cleaning the production process is during a slowdown of the economy. Due to external effects and market failures the timing of pollution abatement investments is not expected to be optimal in the real world. We test the optimality of the timing of those investments with data for Germany, the Netherlands and the U.S.A. It appears that for more than 25 percent of the sectors pollution abatement investments show counter-cyclical behaviour, while in only one sector these investments are pro-cyclical. 1 tab., 3 appendices, 10 refs.

  20. The timing of pollution abatement investments and the business cycle. An international comparison

    International Nuclear Information System (INIS)

    Bouman, M.; Hofkes, M.W.

    1995-01-01

    A simple equilibrium business-cycle model for an economy with both clean- and dirty-producing plants is developed. The authors derive that the optimal timing of cleaning the production process is during a slowdown of the economy. Due to external effects and market failures the timing of pollution abatement investments is not expected to be optimal in the real world. We test the optimality of the timing of those investments with data for Germany, the Netherlands and the U.S.A. It appears that for more than 25 percent of the sectors pollution abatement investments show counter-cyclical behaviour, while in only one sector these investments are pro-cyclical. 1 tab., 3 appendices, 10 refs

  1. Early Maternal Time Investment and Early Child Outcomes

    OpenAIRE

    Del Bono, Emilia; Francesconi, Marco; Kelly, Yvonne; Sacker, Amanda

    2014-01-01

    Using large longitudinal survey data from the UK Millennium Cohort Study, this paper estimates the relationship between maternal time inputs and early child development. We find that maternal time is a quantitatively important determinant of skill formation and that its effect declines with child age. There is evidence of long-term effects of early maternal time inputs on later outcomes, especially in the case of cognitive skill development. In the case of non-cognitive development, the evide...

  2. The Impact of Short-Sale Constraints on Asset Allocation Strategies via the Backward Markov Chain Approximation Method

    OpenAIRE

    Carl Chiarella; Chih-Ying Hsiao

    2005-01-01

    This paper considers an asset allocation strategy over a finite period under investment uncertainty and short-sale constraints as a continuous time stochastic control problem. Investment uncertainty is characterised by a stochastic interest rate and inflation risk. If there are no short-sale constraints, the optimal asset allocation strategy can be solved analytically. We consider several kinds of short-sale constraints and employ the backward Markov chain approximation method to explore the ...

  3. Investment Avenues

    Science.gov (United States)

    Jain, Priyanka

    2012-11-01

    Investors are a heterogeneous group, they may be large or small, rich or poor, expert or lay man and not all investors need equal degree of protection (Mayya, 1996). An investor has three objectives while investing his money, namely safety of invested money, liquidity position of invested money and return on investment. The return on investment may further be divided into capital gain and the rate of return on investment as interest or dividend. Among all investment options available, securities are considered the most challenging as well as rewarding. Securities include shares, debentures, derivatives, units of mutual funds, Government securities etc. An investor may be an individual or corporate legal entity investing funds with a view to derive maximum economic advantage from investment such as rate of return, capital appreciation, marketability, tax advantage and convenience of investment.The Capital market facilitates mobilization of savings of individuals and pools them into reservoir of capital which can be used for the economic development of a country. An efficient capital market is essential for raising capital by the corporate sector of the economy and for the protection of the interest of investors in corporate securities. There arises a need to strike a balance between raising of capital for economic development on one side and protection of investors on the other. Unless the interests of investors are protected, raising of capital, by corporates is not possible. Like, the primary objective of a senior citizenís asset allocation is the generation of regular income.

  4. Time Investment and Time Management: An Analysis of Time Students Spend Working at Home for School

    Science.gov (United States)

    Wagner, Petra; Schober, Barbara; Spiel, Christiane

    2008-01-01

    This paper deals with the time students spend working at home for school. In Study 1, we investigated amount and regulation of time. Study 2 serves to validate the results of Study 1 and, in addition, investigates the duration of the time units students used and their relation to scholastic success. In Study 1, the participants were 332 students…

  5. The "Seattle Times Extra:" An Investment in Content, Not Technology.

    Science.gov (United States)

    Bondarook, Nina

    1995-01-01

    Describes the strategies used to develop the "Seattle Times Extra," an online bulletin board service, and outlines some of the challenges that the introduction of this two-way computerized medium brought to the company and the newspaper. Discussion includes issues of competition, content development, technical support, finances, marketing, union…

  6. Timing of Investment and Dynamic Pricing in Privatized Sectors

    OpenAIRE

    Sandro Brusco; Ornella Tarola; Sandro Trento

    2012-01-01

    In equipment-intensive sectors - such as water utilities, power generation, gas - billions of dollars are spent in capital equipment. We discuss and characterize the optimal policy of a profit-maximizing firm and compare it with the optimal policy of a welfare-maximizing planner. When there is no technical progress, the duration of the plant is longer for a private firm. With technical progress, we show that duration tends to increase when the installed capacity increases over time, while it ...

  7. 2014 World Congress on Engineering Asset Management

    CERN Document Server

    Hoohlo, Changela; Mathew, Joe

    2015-01-01

    Engineering asset management encompasses all types of engineered assets including built environment, infrastructure, plant, equipment, hardware systems and components. Following the release of ISO 5500x set of standards, the 9th WCEAM addresses the hugely important issue of what constitutes the body of knowledge in Engineering Asset Management. Topics discussed by Congress delegates are grouped into a number of tracks including strategies for investment and divestment of assets, operations and maintenance of assets, assessments of assets condition, risk and vulnerability, technologies and systems for management of asset, standards, education, training and certification. These proceedings include a sample of the wide range of topics presented during the 9th World Congress on Engineering Asset Management in Pretoria South Africa 28 – 31 October, 2014 and complements other emerging publications and standards that embrace the wide ranging issues concerning the management of engineered physical assets.

  8. Effect of False Confidence on Asset Allocation Decisions of Households

    Directory of Open Access Journals (Sweden)

    Swarn Chatterjee

    2014-01-01

    Full Text Available This paper investigates whether false confidence, as characterized by a high level of personal mastery and a low level of intelligence (IQ, results in frequent investor trading and subsequent investor wealth erosion across time. Using the National Longitudinal Survey (NLSY79, change in wealth and asset allocation across time is modeled as a function of various behavioral, socio-economic and demographic variables drawn from prior literature.  Findings of this research reveal that false confidence is indeed a predictor of trading activity in individual investment assets, and it also has a negative impact on individual wealth creation across time.

  9. New accounting rules: asset allocation and portfolio management.

    Science.gov (United States)

    Andrew, B K

    1997-01-01

    New accounting rules went into effect at the end of 1995 that are now starting to affect how medical practices must report income from equity and fixed income investments. This article explores the new accounting rules and considers the other factors that help practices determine investment strategies, including desired investment return, comfort with level of risk, appropriate time horizons, liquidity needs and legal restrictions. The author also presents an example that examines the different considerations that may affect an asset allocation decision, including endowments and operating reserve funds.

  10. Real-Time Location Systems for Asset Management in Nursing Homes: An Explorative Study of Ethical Aspects

    Directory of Open Access Journals (Sweden)

    J. van Hoof

    2018-04-01

    Full Text Available Real-time location systems (RTLS can be implemented in aged care for monitoring persons with wandering behaviour and asset management. RTLS can help retrieve personal items and assistive technologies that when lost or misplaced may have serious financial, economic and practical implications. Various ethical questions arise during the design and implementation phases of RTLS. This study investigates the perspectives of various stakeholders on ethical questions regarding the use of RTLS for asset management in nursing homes. Three focus group sessions were conducted concerning the needs and wishes of (1 care professionals; (2 residents and their relatives; and (3 researchers and representatives of small and medium-sized enterprises (SMEs. The sessions were transcribed and analysed through a process of open, axial and selective coding. Ethical perspectives concerned the design of the system, the possibilities and functionalities of tracking, monitoring in general and the user-friendliness of the system. In addition, ethical concerns were expressed about security and responsibilities. The ethical perspectives differed per focus group. Aspects of privacy, the benefit of reduced search times, trust, responsibility, security and well-being were raised. The main focus of the carers and residents was on a reduced burden and privacy, whereas the SMEs stressed the potential for improving products and services.

  11. Paternal investment and status-related child outcomes: timing of father's death affects offspring success.

    Science.gov (United States)

    Shenk, Mary K; Scelza, Brooke A

    2012-09-01

    Recent work in human behavioural ecology has suggested that analyses focusing on early childhood may underestimate the importance of paternal investment to child outcomes since such investment may not become crucial until adolescence or beyond. This may be especially important in societies with a heritable component to status, as later investment by fathers may be more strongly related to a child's adult status than early forms of parental investment that affect child survival and child health. In such circumstances, the death or absence of a father may have profoundly negative effects on the adult outcomes of his children that cannot be easily compensated for by the investment of mothers or other relatives. This proposition is tested using a multigenerational dataset from Bangalore, India, containing information on paternal mortality as well as several child outcomes dependent on parental investment during adolescence and young adulthood. The paper examines the effects of paternal death, and the timing of paternal death, on a child's education, adult income, age at marriage and the amount spent on his or her marriage, along with similar characteristics of spouses. Results indicate that a father's death has a negative impact on child outcomes, and that, in contrast to some findings in the literature on father absence, the effects of paternal death are strongest for children who lose their father in late childhood or adolescence.

  12. Efficiently Inefficient Markets for Assets and Asset Management

    DEFF Research Database (Denmark)

    Garleanu, Nicolae; Pedersen, Lasse Heje

    We consider a model where investors can invest directly or search for an asset manager, information about assets is costly, and managers charge an endogenous fee. The efficiency of asset prices is linked to the efficiency of the asset management market: if investors can find managers more easily......, more money is allocated to active management, fees are lower, and asset prices are more efficient. Informed managers outperform after fees, uninformed managers underperform after fees, and the net performance of the average manager depends on the number of "noise allocators." Small investors should...... be passive, but large and sophisticated investors benefit from searching for informed active managers since their search cost is low relative to capital. Hence, managers with larger and more sophisticated investors are expected to outperform....

  13. ASSET guidelines

    International Nuclear Information System (INIS)

    1990-11-01

    The IAEA Assessment of Safety Significant Events Team (ASSET) Service provides advice and assistance to Member States to enhance the overall level of plant safety while dealing with the policy of prevention of incidents at nuclear power plants. The ASSET programme, initiated in 1986, is not restricted to any particular group of Member States, whether developing or industrialized, but is available to all countries with nuclear power plants in operation or approaching commercial operation. The IAEA Safety Series publications form common basis for the ASSET reviews, including the Nuclear Safety Standards (NUSS) and the Basic Safety Principles (Recommendations of Safety Series No. 75-INSAG-3). The ASSET Guidelines provide overall guidance for the experts to ensure the consistency and comprehensiveness of their review of incident investigations. Additional guidance and reference material is provided by the IAEA to complement the expertise of the ASSET members. ASSET reviews accept different approaches that contribute to ensuring an effective prevention of incidents at plants. Suggestions are offered to enhance plant safety performance. Commendable good practices are identified and generic lessons are communicated to other plants, where relevant, for long term improvement

  14. 76 FR 78703 - American Century Strategic Asset Allocations, Inc., et al.;

    Science.gov (United States)

    2011-12-19

    ...] American Century Strategic Asset Allocations, Inc., et al.; Notice of Application December 13, 2011. AGENCY... Century Strategic Asset Allocations, Inc. (``ACSAA''), American Century Investment Management, Inc... with its investment objectives, policies, strategies and limitations, in financial instruments that may...

  15. Do Resit Exams Promote Lower Investments of Study Time? Theory and Data from a Laboratory Study.

    Science.gov (United States)

    Nijenkamp, Rob; Nieuwenstein, Mark R; de Jong, Ritske; Lorist, Monicque M

    2016-01-01

    Although many educational institutions allow students to resit exams, a recently proposed mathematical model suggests that this could lead to a dramatic reduction in study-time investment, especially in rational students. In the current study, we present a modification of this model in which we included some well-justified assumptions about learning and performance on multiple-choice tests, and we tested its predictions in two experiments in which participants were asked to invest fictional study time for a fictional exam. Consistent with our model, the prospect of a resit exam was found to promote lower investments of study time for a first exam and this effect was stronger for participants scoring higher on the cognitive reflection test. We also found that the negative effect of resit exams on study-time investment was attenuated when access to the resit was made uncertain by making it probabilistic or dependent on obtaining a minimal, non-passing grade for the first attempt. Taken together, these results suggest that offering students resit exams may compromise the achievement of learning goals, and they raise the more general implication that second chances promote risky behavior.

  16. Predicting undergraduates' academic achievement : the role of the curriculum, time investment and self-regulated learning

    NARCIS (Netherlands)

    Torenbeek, Marjolein; Jansen, Ellen; Suhre, Cor

    2013-01-01

    The time students invest in their studies and their resulting achievement is partly dependent on curriculum characteristics. Degree programmes differ greatly with respect to how the curriculum is organized, for example in the type (e.g. lectures, practicals) and the number of classes. The focus of

  17. Giving Online Quizzes in Corporate Finance and Investments for a Better Use of Seat Time

    Science.gov (United States)

    Peng, Zhuoming

    2007-01-01

    The primary benefit of providing out-of-class online quizzes in a face-to-face class is to gain more in-class time. A study designed to investigate this issue was conducted during the Spring 2006 and Spring 2007 semesters. Thirty-one and 34 Corporate Finance undergraduate students from each semester, and 33 and 36 Investments undergraduate…

  18. Foreign Remittances, Foreign Direct Investment, Foreign Imports and Economic Growth in Pakistan: A Time Series Analysis

    Directory of Open Access Journals (Sweden)

    Muhammad Tahir

    2015-10-01

    Full Text Available This empirical research paper focuses on establishing a relationship between external determinants and economic growth of Pakistan economy. Empirical analyses are carried out with time series econometric techniques using data over the period of 1977-2013. The main finding is that external determinants such as foreign remittances, foreign direct investment, and foreign imports matter from a growth perspective. Foreign remittances and foreign direct investment have a significant positive role in the growth process of Pakistan economy. Furthermore, it is found that foreign imports have adversely influenced the economic growth of Pakistan. The study recommends that policy makers shall take appropriate steps to increase the inflow of both foreign remittances and foreign direct investment in order to achieve the long run economic growth.

  19. Mapping global health research investments, time for new thinking--a Babel Fish for research data.

    Science.gov (United States)

    Terry, Robert F; Allen, Liz; Gardner, Charles A; Guzman, Javier; Moran, Mary; Viergever, Roderik F

    2012-09-01

    Today we have an incomplete picture of how much the world is spending on health and disease-related research and development (R&D). As such it is difficult to align, or even begin to coordinate, health R&D investments with international public health priorities. Current efforts to track and map global health research investments are complex, resource-intensive, and caveat-laden. An ideal situation would be for all research funding to be classified using a set of common standards and definitions. However, the adoption of such a standard by everyone is not a realistic, pragmatic or even necessary goal. It is time for new thinking informed by the innovations in automated online translation - e.g. Yahoo's Babel Fish. We propose a feasibility study to develop a system that can translate and map the diverse research classification systems into a common standard, allowing the targeting of scarce research investments to where they are needed most.

  20. Mapping global health research investments, time for new thinking - A Babel Fish for research data

    Science.gov (United States)

    2012-01-01

    Today we have an incomplete picture of how much the world is spending on health and disease-related research and development (R&D). As such it is difficult to align, or even begin to coordinate, health R&D investments with international public health priorities. Current efforts to track and map global health research investments are complex, resource-intensive, and caveat-laden. An ideal situation would be for all research funding to be classified using a set of common standards and definitions. However, the adoption of such a standard by everyone is not a realistic, pragmatic or even necessary goal. It is time for new thinking informed by the innovations in automated online translation - e.g. Yahoo's Babel Fish. We propose a feasibility study to develop a system that can translate and map the diverse research classification systems into a common standard, allowing the targeting of scarce research investments to where they are needed most. PMID:22938160

  1. Transportation Energy Futures Series: Vehicle Technology Deployment Pathways: An Examination of Timing and Investment Constraints

    Energy Technology Data Exchange (ETDEWEB)

    Plotkin, S.; Stephens, T.; McManus, W.

    2013-03-01

    Scenarios of new vehicle technology deployment serve various purposes; some will seek to establish plausibility. This report proposes two reality checks for scenarios: (1) implications of manufacturing constraints on timing of vehicle deployment and (2) investment decisions required to bring new vehicle technologies to market. An estimated timeline of 12 to more than 22 years from initial market introduction to saturation is supported by historical examples and based on the product development process. Researchers also consider the series of investment decisions to develop and build the vehicles and their associated fueling infrastructure. A proposed decision tree analysis structure could be used to systematically examine investors' decisions and the potential outcomes, including consideration of cash flow and return on investment. This method requires data or assumptions about capital cost, variable cost, revenue, timing, and probability of success/failure, and would result in a detailed consideration of the value proposition of large investments and long lead times. This is one of a series of reports produced as a result of the Transportation Energy Futures (TEF) project, a Department of Energy-sponsored multi-agency effort to pinpoint underexplored strategies for abating GHGs and reducing petroleum dependence related to transportation.

  2. Transportation Energy Futures Series. Vehicle Technology Deployment Pathways. An Examination of Timing and Investment Constraints

    Energy Technology Data Exchange (ETDEWEB)

    Plotkin, Steve [Argonne National Lab. (ANL), Argonne, IL (United States); Stephens, Thomas [Argonne National Lab. (ANL), Argonne, IL (United States); McManus, Walter [Oakland Univ., Rochester, MI (United States)

    2013-03-01

    Scenarios of new vehicle technology deployment serve various purposes; some will seek to establish plausibility. This report proposes two reality checks for scenarios: (1) implications of manufacturing constraints on timing of vehicle deployment and (2) investment decisions required to bring new vehicle technologies to market. An estimated timeline of 12 to more than 22 years from initial market introduction to saturation is supported by historical examples and based on the product development process. Researchers also consider the series of investment decisions to develop and build the vehicles and their associated fueling infrastructure. A proposed decision tree analysis structure could be used to systematically examine investors' decisions and the potential outcomes, including consideration of cash flow and return on investment. This method requires data or assumptions about capital cost, variable cost, revenue, timing, and probability of success/failure, and would result in a detailed consideration of the value proposition of large investments and long lead times. This is one of a series of reports produced as a result of the Transportation Energy Futures (TEF) project, a Department of Energy-sponsored multi-agency effort to pinpoint underexplored strategies for abating GHGs and reducing petroleum dependence related to transportation.

  3. Looking for Synergy with Momentum in Main Asset Classes

    OpenAIRE

    Lukas Macijauskas; Dimitrios I. Maditinos

    2014-01-01

    As during turbulent market conditions correlations between main asset-classes falter, classical asset management concepts seem unreliable. This problem stimulates search for non-discretionary asset allocation methods. The aim of the paper is to test weather the concept of Momentum phenomena could be used as a stand alone investment strategy using all main asset classes. The study is based on exploring historical prices of various asset classes; statistical data analysis method is used. Result...

  4. GLOBAL TRENDS OF ALTERNATIVE INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Ivan LUCHIAN

    2016-08-01

    Full Text Available An alternative investment is an investment product other than the traditional investments of stocks, bonds, cash, or property. The term is a relatively loose one and includes tangible assets such as art, wine, antiques, coins, or stamps and some financial assets such as commodities, hedge funds, venture capital,and others. At the moment it was created a global industry opportunities for making investments in nontraditional form. The aim of this paper consists in demonstrating the possibilities of these investments. For this have been studied related main international markets, a fter then deducted world dominant trends. This article is concerned to present some details of alternative investments global market.

  5. Inverse Statistics and Asset Allocation Efficiency

    Science.gov (United States)

    Bolgorian, Meysam

    In this paper using inverse statistics analysis, the effect of investment horizon on the efficiency of portfolio selection is examined. Inverse statistics analysis is a general tool also known as probability distribution of exit time that is used for detecting the distribution of the time in which a stochastic process exits from a zone. This analysis was used in Refs. 1 and 2 for studying the financial returns time series. This distribution provides an optimal investment horizon which determines the most likely horizon for gaining a specific return. Using samples of stocks from Tehran Stock Exchange (TSE) as an emerging market and S&P 500 as a developed market, effect of optimal investment horizon in asset allocation is assessed. It is found that taking into account the optimal investment horizon in TSE leads to more efficiency for large size portfolios while for stocks selected from S&P 500, regardless of portfolio size, this strategy does not only not produce more efficient portfolios, but also longer investment horizons provides more efficiency.

  6. Gas-fired power plants: Investment timing, operating flexibility and CO2 capture

    International Nuclear Information System (INIS)

    Fleten, Stein-Erik; Naesaekkaelae, Erkka

    2010-01-01

    We analyze investments in gas-fired power plants based on stochastic electricity and natural gas prices. A simple but realistic two-factor model is used for price processes, enabling analysis of the value of operating flexibility, the opportunity to abandon the capital equipment, as well as finding thresholds for energy prices for which it is optimal to enter into the investment. We develop a method to compute upper and lower bounds on plant values and investment threshold levels. Our case study uses representative power plant investment and operations data, and historical forward prices from well-functioning energy markets. We find that when the decision to build is considered, the abandonment option does not have significant value, whereas the operating flexibility and time-to-build option have significant effect on the building threshold. Furthermore, the joint value of the operating flexibility and the abandonment option is much smaller than the sum of their separate values, because both are options to shut down. The effects of emission costs on the value of installing CO 2 capture technology are also analyzed.

  7. Asset management methodology in NPP Cofrentes

    International Nuclear Information System (INIS)

    Galbally, D.; Feijo, J. P.; Sierra, M.

    2011-01-01

    The Cofrentes asset management plan is articulated around the tool SIGAN (computer management system of nuclear assets), this tool allows you to structure in an objective and documented the investment plan aimed at modernization and management of the plant life, achieving a consensus among the parties involved in terms of planning development and implementation.

  8. Mean-Variance portfolio optimization when each asset has individual uncertain exit-time

    Directory of Open Access Journals (Sweden)

    Reza Keykhaei

    2016-12-01

    Full Text Available The standard Markowitz Mean-Variance optimization model is a single-period portfolio selection approach where the exit-time (or the time-horizon is deterministic. ‎In this paper we study the Mean-Variance portfolio selection problem ‎with ‎uncertain ‎exit-time ‎when ‎each ‎has ‎individual uncertain ‎xit-time‎, ‎which generalizes the Markowitz's model‎. ‎‎‎‎‎‎We provide some conditions under which the optimal portfolio of the generalized problem is independent of the exit-times distributions. Also, ‎‎it is shown that under some general circumstances, the sets of optimal portfolios‎ ‎in the generalized model and the standard model are the same‎.

  9. Asset Meltdown

    DEFF Research Database (Denmark)

    Marekwica, Marcel; Maurer, Raimond; Sebastian, Steffen P.

    2011-01-01

    Executive Summary. This paper analyzes the relation between demographic structure and real asset returns on Treasury bills, bonds, and stocks for the G7 countries (United States, Canada, Japan, Italy, France, the United Kingdom, and Germany). A macroeconomic multifactor model is used to examine a...

  10. Asset prices and priceless assets

    NARCIS (Netherlands)

    Penasse, J.N.G.

    2014-01-01

    The doctoral thesis studies several aspects of asset returns dynamics. The first three chapters focus on returns in the fine art market. The first chapter provides evidence for the existence of a slow-moving fad component in art prices that induces short-term return predictability. The article has

  11. ESG Integration and the Investment Management Process : Fundamental Investing Reinvented

    NARCIS (Netherlands)

    van Duuren, Emiel; Plantinga, Auke; Scholtens, Bert

    2016-01-01

    We investigate how conventional asset managers account for environmental, social and governance factors (ESG) in their investment process. We do so on the basis of an international survey among fund managers. We find that many conventional managers integrate responsible investing in their investment

  12. Utilizing a GPS-enabled fleet management system to improve safety through real-time personnel monitoring and asset management

    Energy Technology Data Exchange (ETDEWEB)

    Mavreas, M. [Bell Canada, Montreal, PQ (Canada)

    2005-07-01

    The telepod is a real-time dispatch, tracking and vehicle management system developed by Bell, which also allows remote access to company data. Advantages of the system were discussed in this power point presentation. It was suggested that the system offers increased efficiency, asset tracking and more accurate maintenance. Productivity improvements are made possible through real-time dispatching of orders, which results in improved customer service. Additional benefits of the system include fuel savings; trip reports to track vehicle start and stop times; and improved route changes through trip analysis. The system also enables the tracking of vehicles driven after work hours and on weekends. The generator tracking capability provides information on when generators are being moved as well as uptime for improved maintenance in addition to registering fuel levels to ensure business keeps running during a blackout. The vehicle management system is also capable of identifying under-utilized vehicles and can assist in the reduction of inactive vehicles as well as in a reduction of fuel consumption and harmful emissions by controlling idling time. Other advantages include maintenance eliminated mileage errors; an improved inspection program; remote diagnosis and prognostics; a reduction in downtime and costs associated with unnecessary vehicle breakdown; and reduced vehicle wear and tear. Among the safety features is a trigger for the dispatch of emergency vehicles. It was suggested that the lone worker device provides technicians with a sense of security, as well as ensuring greater consumer safety. It was concluded that Bell supports industry cooperation for safe driving awareness through advertising campaigns, and communicates safety messages to customers, employees and the public at large. tabs, figs.

  13. Effects of Diversification of Assets on Mean and Variance | Jayeola ...

    African Journals Online (AJOL)

    Diversification is a means of minimizing risk and maximizing returns by investing in a variety of assets of the portfolio. This paper is written to determine the effects of diversification of three types of Assets; uncorrelated, perfectly correlated and perfectly negatively correlated assets on mean and variance. To go about this, ...

  14. A Critical Review of the Literature on Firm-Level Theories on Ship Investment

    Directory of Open Access Journals (Sweden)

    Sinem Celik Girgin

    2018-01-01

    Full Text Available The maritime industry is one of those rare industries that are both highly international integrated to international trade and also highly capital intensive dependent on substantial investment amount. In the literature, ship investments have not been widely examined through the firm-level investment theories to explore the link between investment level and asset price valuation. The general trend in the literature of ship investments is to analyse the relationship among the shipping markets (newbuilding, second-hand, freight rate and scrap and their impact on asset price valuation, the timing of investments and market entry and exit conditions. In this paper, we extensively reviewed the literature of firm-level investment theories and ship investments. We showed that the application of firm-level investment theories to the ship investments is confined to the basic investment valuation models, such as Net Present Value and Real Option Analysis. Ship investments need to be examined by firm-level investment theories to define firm/industry value maximization level within the approach of the solid investment theories.

  15. Risk and return in oilfield asset holdings

    Energy Technology Data Exchange (ETDEWEB)

    Kretzschmar, Gavin L.; Kirchner, Axel; Reusch, Hans [University of Edinburgh, College of Humanities and Social Sciences, The Management School (United Kingdom)

    2008-11-15

    Convention suggests that emerging market investment should provide commensurately lower risk or higher returns than comparable assets in developed countries. This study demonstrates that emerging markets contain regulatory specificities that challenge asset valuation model convergence and potentially invert risk return convention. 292 oilfield assets are used to provide evidence that, under upward oil prices, emerging markets are characterized by progressive state participation in oilfield cash flows. Specifically, this work advances the low oil price paradigm of prior oil and gas asset valuation studies and provides evidence that emerging market state participation terms limit the corporate value of globalization for the sector. (author)

  16. Risk and return in oilfield asset holdings

    International Nuclear Information System (INIS)

    Kretzschmar, Gavin L.; Kirchner, Axel; Reusch, Hans

    2008-01-01

    Convention suggests that emerging market investment should provide commensurately lower risk or higher returns than comparable assets in developed countries. This study demonstrates that emerging markets contain regulatory specificities that challenge asset valuation model convergence and potentially invert risk return convention. 292 oilfield assets are used to provide evidence that, under upward oil prices, emerging markets are characterized by progressive state participation in oilfield cash flows. Specifically, this work advances the low oil price paradigm of prior oil and gas asset valuation studies and provides evidence that emerging market state participation terms limit the corporate value of globalization for the sector. (author)

  17. Global Tactical Cross-Asset Allocation: Applying Value and Momentum Across Asset Classes

    NARCIS (Netherlands)

    D.C. Blitz (David); P. van Vliet (Pim)

    2008-01-01

    textabstractIn this paper we examine global tactical asset allocation (GTAA) strategies across a broad range of asset classes. Contrary to market timing for single asset classes and tactical allocation across similar assets, this topic has received little attention in the existing literature. Our

  18. Investment risk management by applying contemporary modern portfolio theory

    Directory of Open Access Journals (Sweden)

    Jakšić Milena

    2015-01-01

    Full Text Available Investment risk is the principal threat to the assets side of the balance sheets of financial institutions. It is evident that investors who concentrate their wealth on one type of securities can rarely be found. Instead, they tend to invest diversified portfolio of securities. This reduces the degree of risk of the expected return, which depends both on the absolute risk of each investment in the portfolio, and the relationship that exists between individual investments within the portfolio. The paper analyzes the investment risk management by using modern portfolio theory in both national and global financial f lows. At the same time, the paper considers the risk management models that ensures efficient portfolio diversification, aiming at investment risk reduction. It is pointed out that the investment risk management in modern financial f lows is a complex process, and that the development of financial theory goes towards improving, soft risk management method.

  19. Organizations must match assets

    International Nuclear Information System (INIS)

    Carley, G.R.

    1991-01-01

    The unprofitable state of the Canadian oil industry, the adverse economic environment, the difficulty of finding capital, and the diminishing resources of conventional lighter crude oil make it necessary for Canadian oil companies to match their organizations and their financing to their assets. This is illustrated according to the experience of Saskoil, a Saskatchewan oil and gas company. An increasing production of oil and natural gas, and an increasing amount of new oil production as heavy oil, led to organizational changes such as the purchase of an asphalt plant to provide the company with downstream experience, establishing a working group to explore and develop heavy oil resources, and forming a company to manage non-core assets. The latter company, Pasqua Resources, manages assets such as small properties and ownership interests in order to increase the operating efficiency of Saskoil. Pasqua provides Saskoil with a corporate and organizational vehicle to accommodate partnerships and joint venture capital invested in property purchase opportunities, and to manage any of Saskoil's divestiture activities

  20. Option pricing and foreign investment under political risk

    NARCIS (Netherlands)

    Cherian, J.A.; Perotti, E.C.

    1999-01-01

    The paper analyzes foreign investment and asset prices in a context of uncertainty over future government policy. The model endogenizes the process of learning by foreign investors facing a potentially opportunistic government, which chooses strategically the timing of a policy reversal in order to

  1. Option pricing and foreign investment under political risk

    NARCIS (Netherlands)

    Cherian, J.A.; Perotti, E.C.

    1999-01-01

    he paper analyses foreign investment and asset prices in a context of uncertainty over future government policy. The model endogenizes the process of learning by foreign investors facing a potentially opportunistic government, which chooses strategically the timing of a policy reversal in order to

  2. Option pricing and foreign investment under political risk

    NARCIS (Netherlands)

    Cherian, J. A.; Perotti, E.C.

    1999-01-01

    The paper analyses foreign investment and asset prices in a context of uncertainty over future government policy. The model endogenizes the process of learning by foreign investors facing a potentially opportunistic government, which chooses strategically the timing of a policy reversal in order to

  3. 76 FR 66135 - Investment Advice-Participants and Beneficiaries

    Science.gov (United States)

    2011-10-25

    ... theories that take into account historic returns of different asset classes over defined periods of time, but also notes that generally accepted investment theories that take into account additional... payor intends to act as an incentive, whereas the statutory provision appears to address receipt of any...

  4. Optimizing time and resource allocation trade-offs for investment into morphological and behavioral defense

    DEFF Research Database (Denmark)

    Steiner, Uli; Pfeiffer, Thomas

    2007-01-01

    pronounced at intermediate environmental conditions. Optimizing single traits generally leads to a more pronounced response of the defense traits, which implies that studying single traits leads to an overestimation of their response to predation. Behavioral defense and morphological defense compensate......Prey organisms are confronted with time and resource allocation trade-offs. Time allocation trade-offs partition time, for example, between foraging effort to acquire resources and behavioral defense. Resource allocation trade-offs partition the acquired resources between multiple traits...... for and augment each other depending on predator densities and the effectiveness of the defense mechanisms. In the presence of time constraints, the model shows peak investment into morphological and behavioral defense at intermediate resource levels....

  5. Long-run savings and investment strategy optimization.

    Science.gov (United States)

    Gerrard, Russell; Guillén, Montserrat; Nielsen, Jens Perch; Pérez-Marín, Ana M

    2014-01-01

    We focus on automatic strategies to optimize life cycle savings and investment. Classical optimal savings theory establishes that, given the level of risk aversion, a saver would keep the same relative amount invested in risky assets at any given time. We show that, when optimizing lifecycle investment, performance and risk assessment have to take into account the investor's risk aversion and the maximum amount the investor could lose, simultaneously. When risk aversion and maximum possible loss are considered jointly, an optimal savings strategy is obtained, which follows from constant rather than relative absolute risk aversion. This result is fundamental to prove that if risk aversion and the maximum possible loss are both high, then holding a constant amount invested in the risky asset is optimal for a standard lifetime saving/pension process and outperforms some other simple strategies. Performance comparisons are based on downside risk-adjusted equivalence that is used in our illustration.

  6. Long-Run Savings and Investment Strategy Optimization

    Directory of Open Access Journals (Sweden)

    Russell Gerrard

    2014-01-01

    Full Text Available We focus on automatic strategies to optimize life cycle savings and investment. Classical optimal savings theory establishes that, given the level of risk aversion, a saver would keep the same relative amount invested in risky assets at any given time. We show that, when optimizing lifecycle investment, performance and risk assessment have to take into account the investor’s risk aversion and the maximum amount the investor could lose, simultaneously. When risk aversion and maximum possible loss are considered jointly, an optimal savings strategy is obtained, which follows from constant rather than relative absolute risk aversion. This result is fundamental to prove that if risk aversion and the maximum possible loss are both high, then holding a constant amount invested in the risky asset is optimal for a standard lifetime saving/pension process and outperforms some other simple strategies. Performance comparisons are based on downside risk-adjusted equivalence that is used in our illustration.

  7. The Diversification Benefits of Including Carbon Assets in Financial Portfolios

    Directory of Open Access Journals (Sweden)

    Yinpeng Zhang

    2017-03-01

    Full Text Available Carbon allowances traded in the EU-Emission Trading Scheme (EU-ETS were initially designed as an economic motivation for efficiently curbing greenhouse as emissions, but now it mimics quite a few characteristics of financial assets, and have now been used as a candidate product in building financial portfolios. In this study, we examine the time-varying correlations between carbon allowance prices with other financial indices, during the third phase of EU-ETS. The results show that, at the beginning of this period, carbon price was still strongly corrected with other financial indices. However, this connection was weakened over time. Given the relative independence of carbon assets from other financial assets, we argue for the diversification benefits of including carbon assets in financial portfolios, and building such portfolios, respectively, with the traditional global minimum variance (GMV strategy, the mean-variance-OGARCH (MV-OGARCH strategy, and the dynamic conditional correlation (DCC strategy. It is shown that the portfolio built with the MV-OGARCH strategy far out-performs the others and that including carbon assets in financial portfolios does help reduce investment risks.

  8. The pricing of illiquidity and illiquid assets : Essays on empirical asset pricing

    NARCIS (Netherlands)

    Tuijp, Patrick

    2016-01-01

    This dissertation studies the pricing of liquidity and illiquid assets. For this thesis, liquidity will generally refer to the ease with which an asset can be traded. The first chapter investigates the role of the investment horizon in the impact of illiquidity on stock prices. We obtain a clientele

  9. A course-based research experience: how benefits change with increased investment in instructional time.

    Science.gov (United States)

    Shaffer, Christopher D; Alvarez, Consuelo J; Bednarski, April E; Dunbar, David; Goodman, Anya L; Reinke, Catherine; Rosenwald, Anne G; Wolyniak, Michael J; Bailey, Cheryl; Barnard, Daron; Bazinet, Christopher; Beach, Dale L; Bedard, James E J; Bhalla, Satish; Braverman, John; Burg, Martin; Chandrasekaran, Vidya; Chung, Hui-Min; Clase, Kari; Dejong, Randall J; Diangelo, Justin R; Du, Chunguang; Eckdahl, Todd T; Eisler, Heather; Emerson, Julia A; Frary, Amy; Frohlich, Donald; Gosser, Yuying; Govind, Shubha; Haberman, Adam; Hark, Amy T; Hauser, Charles; Hoogewerf, Arlene; Hoopes, Laura L M; Howell, Carina E; Johnson, Diana; Jones, Christopher J; Kadlec, Lisa; Kaehler, Marian; Silver Key, S Catherine; Kleinschmit, Adam; Kokan, Nighat P; Kopp, Olga; Kuleck, Gary; Leatherman, Judith; Lopilato, Jane; Mackinnon, Christy; Martinez-Cruzado, Juan Carlos; McNeil, Gerard; Mel, Stephanie; Mistry, Hemlata; Nagengast, Alexis; Overvoorde, Paul; Paetkau, Don W; Parrish, Susan; Peterson, Celeste N; Preuss, Mary; Reed, Laura K; Revie, Dennis; Robic, Srebrenka; Roecklein-Canfield, Jennifer; Rubin, Michael R; Saville, Kenneth; Schroeder, Stephanie; Sharif, Karim; Shaw, Mary; Skuse, Gary; Smith, Christopher D; Smith, Mary A; Smith, Sheryl T; Spana, Eric; Spratt, Mary; Sreenivasan, Aparna; Stamm, Joyce; Szauter, Paul; Thompson, Jeffrey S; Wawersik, Matthew; Youngblom, James; Zhou, Leming; Mardis, Elaine R; Buhler, Jeremy; Leung, Wilson; Lopatto, David; Elgin, Sarah C R

    2014-01-01

    There is widespread agreement that science, technology, engineering, and mathematics programs should provide undergraduates with research experience. Practical issues and limited resources, however, make this a challenge. We have developed a bioinformatics project that provides a course-based research experience for students at a diverse group of schools and offers the opportunity to tailor this experience to local curriculum and institution-specific student needs. We assessed both attitude and knowledge gains, looking for insights into how students respond given this wide range of curricular and institutional variables. While different approaches all appear to result in learning gains, we find that a significant investment of course time is required to enable students to show gains commensurate to a summer research experience. An alumni survey revealed that time spent on a research project is also a significant factor in the value former students assign to the experience one or more years later. We conclude: 1) implementation of a bioinformatics project within the biology curriculum provides a mechanism for successfully engaging large numbers of students in undergraduate research; 2) benefits to students are achievable at a wide variety of academic institutions; and 3) successful implementation of course-based research experiences requires significant investment of instructional time for students to gain full benefit.

  10. Giving Online Quizzes in Corporate Finance and Investments for a Better Use of Seat Time

    Directory of Open Access Journals (Sweden)

    Zhuoming “Joe” Peng, Ph.D.

    2007-07-01

    Full Text Available The primary benefit of providing out-of-class online quizzes in a face-to-face class is to gain more in-class time. A study designed to investigate this issue was conducted during the Spring 2006 and Spring 2007 semesters. Thirty-one and 34 Corporate Finance undergraduate students from each semester, and 33 and 36 Investments undergraduate students from each semester participated in this study. Do students cheat whilst taking online versus in-class quizzes? Key results indicate no significant differences between online versus in-class administered quizzes. This finding alleviates concerns about student cheating and hence frees up in-class time for additional materials and interactions. The process of administering an online quiz is discussed in detail. The monetary cost of using a test generator program to create an online quiz is nominal in comparison with the licensing fee of any online course management software. Giving online quizzes does appear to be a better use of class seat time, and this pedagogical method is recommended to faculty delivering courses using face-to-face instructional design, especially those who are teaching corporate finance or investments.

  11. When asset management and organizations meet: accounting for employee experiences

    NARCIS (Netherlands)

    Schraven, Daan; Hartmann, Andreas; Dewulf, Geert P.M.R.

    2015-01-01

    For some time, organisations have encountered challenges when implementing asset management, particularly when closing the gap between how the asset management is understood by employees and how they support it in practice. Maturity models, common applied evaluations for implementing asset

  12. Global Tactical Cross-Asset Allocation: Applying Value and Momentum Across Asset Classes

    OpenAIRE

    Blitz, D.C.; van Vliet, P.

    2008-01-01

    textabstractIn this paper we examine global tactical asset allocation (GTAA) strategies across a broad range of asset classes. Contrary to market timing for single asset classes and tactical allocation across similar assets, this topic has received little attention in the existing literature. Our main finding is that momentum and value strategies applied to GTAA across twelve asset classes deliver statistically and economically significant abnormal returns. For a long top-quartile and short b...

  13. Results of real-time production optimization of a maturing North Sea gas asset with production constraints

    NARCIS (Netherlands)

    Linden, R.J.P. van der; Marck, J.W.; Boer, J.P. de

    2015-01-01

    Operating maturing assets poses increasingly complex challenges to operators. Meeting hourly or daily production targets becomes more difficult when wells are more often shut in for e.g. water washes (against salt deposition) or solvent jobs (at asphaltenes deposition). Declining reservoir pressure

  14. Teaching Time Investment: Does Online Really Take More Time than Face-to-Face?

    Science.gov (United States)

    Van de Vord, Rebecca; Pogue, Korolyn

    2012-01-01

    Enrollments in online programs are growing, increasing demand for online courses. The perception that teaching online takes more time than teaching face-to-face creates concerns related to faculty workload. To date, the research on teaching time does not provide a clear answer as to the accuracy of this perception. This study was designed to…

  15. A stochastic dynamic model for optimal timing of investments in new generation capacity in restructured power systems

    International Nuclear Information System (INIS)

    Botterud, Audun; Korpaas, Magnus

    2007-01-01

    In this paper we formulate the power generation investment problem for a decentralised and profit-maximising investor operating in a restructured and competitive power system. In particular, we look at how uncertainty influences the optimal timing of investments in new power generation capacity. A real options approach is used to take long-term uncertainty in load growth, and its influence on future electricity prices, into account in the investment optimisation. In order to value the operational flexibility of a new power plant we use an electricity price model, where the spot price is a function of load level and installed generation capacity, in addition to short-term uncertainties and temporal fluctuations in the market. The investor's income from a capacity payment, which also can depend on the system's total capacity balance, can also be represented. Hence, with the optimisation model we can analyse power plant profitability and optimal timing of new investments under different market designs. In a case study from the Nordic electricity market we analyse the effect of uncertainty on optimal investment timing. We also examine how a fixed or variable capacity payment would influence the investment decision, and discuss the system consequences of the resulting investment strategies. (author)

  16. DEPRECIATION AS THE SOURCE OF REPLENISHMENT OF ENTERPRISE CURRENT ASSETS

    Directory of Open Access Journals (Sweden)

    KAFKA Sofiіa

    2017-06-01

    Full Text Available Along with the classical approach to understanding the meaning of such economic category as depreciation, we have considered the issues if the amortization is the source of the fixed assets renewal. For the purposes of the study we used methods of analysis and synthesis, systematic approach - to study the processes of working capital enterprises, logical method and simulation - to systematize information security of these processes. Results of investigations to determine the characteristics of the economic substance of depreciation established: depreciation is a compensation of working capital, which at one time was removed from circulation for the purchase of fixed assets, so you cannot treat depreciation as a source of investment in fixed assets. The source of the formation of the working capital of own funds is certainly profits and depreciation - only if profitable economic activity. So when it comes to sources of funding something, including the acquisition (creation of fixed assets, only the working capital can be the source that’s why it is important to use them efficiently and the conditions of the limited resources. The practical significance is to develop scientifically based recommendations on formation and sources of working capital enterprises and reproduction of fixed assets, which provide methodological support to forming the depreciation policy of enterprises

  17. Impact of speculator's expectations of returns and time scales of investment on crude oil price behaviors

    International Nuclear Information System (INIS)

    He, Ling-Yun; Fan, Ying; Wei, Yi-Ming

    2009-01-01

    Based on time series of crude oil prices (daily spot), this paper analyses price fluctuation with two significant parameters τ (speculators' time scales of investment) and ε (speculators' expectations of return) by using Zipf analysis technique, specifically, by mapping τ-returns of prices into 3-alphabeted sequences (absolute frequencies) and 2-alphabeted sequences (relative frequencies), containing the fundamental information of price fluctuations. This paper empirically explores parameters and identifies various types of speculators' cognition patterns of price behavior. In order to quantify the degree of distortion, a feasible reference is proposed: an ideal speculator. Finally, this paper discusses the similarities and differences between those cognition patterns of speculators' and those of an ideal speculator. The resultant analyses identify the possible distortion of price behaviors by their patterns. (author)

  18. Determinants Of Foreign Direct Investment In Mauritius Evidence From Time Series Data

    Directory of Open Access Journals (Sweden)

    Medha Kisto

    2017-08-01

    Full Text Available Over the last two decades Foreign Direct Investment FDI claimed an impressive economic record as it enables economy to transit from an agrarian to knowledge based economy. This paper focuses on the determinants and impact of FDI in Mauritius using annual time series data from 1975 through 2015. The Vector Error Correction Model VECM analysis reveals that macroeconomic variables namely inflation rates and exchange rate are among the major and important factor that affect FDI in Mauritius over this period of time. Exchange rate exhibited negative significant influence on FDI while interest rate affects FDI positively. The study therefore recommends that government should continue to diversify the export and tourism markets ensure stable macroeconomic policies implement reforms on doing business increase its expenditure in the area of infrastructural development and redirect FDI in productive sector of the economy as ways to accelerate the growth of Mauritian economy.

  19. Investing in biogas: Timing, technological choice and the value of flexibility from input mix

    International Nuclear Information System (INIS)

    Di Corato, Luca; Moretto, Michele

    2011-01-01

    In a stochastic dynamic frame, we study the technology choice problem of a continuous co-digestion biogas plant where input factors are substitutes but need to be mixed together to provide output. Given any initial rule for the composition of the feedstock, we consider the possibility of revising it if economic circumstances make it profitable. Flexibility in the mix is an advantage under randomly fluctuating input costs and comes at a higher investment cost. We show that the degree of flexibility in the productive technology installed depends on the value of the option to profitably re-arrange the input mix. Such option adds value to the project in that it provides a device for hedging against fluctuations in the input relative convenience. Accounting for such value we discuss the trade-off between investment timing and profit smoothing flexibility. - Research highlights: ► We study the technology choice problem of a continuous co-digestion biogas plant where input factors are substitutes but need to be mixed together to provide output. ► We show that the degree of flexibility in the productive technology installed depends on the value of the option to profitably re-arrange the input mix. ► Such option adds value to the project in that it provides a device for hedging against fluctuations in the input relative convenience.

  20. Investment Dynamics with Natural Expectations.

    Science.gov (United States)

    Fuster, Andreas; Hebert, Benjamin; Laibson, David

    2010-01-01

    We study an investment model in which agents have the wrong beliefs about the dynamic properties of fundamentals. Specifically, we assume that agents underestimate the rate of mean reversion. The model exhibits the following six properties: (i) Beliefs are excessively optimistic in good times and excessively pessimistic in bad times. (ii) Asset prices are too volatile. (iii) Excess returns are negatively autocorrelated. (iv) High levels of corporate profits predict negative future excess returns. (v) Real economic activity is excessively volatile; the economy experiences amplified investment cycles. (vi) Corporate profits are positively autocorrelated in the short run and negatively autocorrelated in the medium run. The paper provides an illustrative model of animal spirits, amplified business cycles, and excess volatility.

  1. Investment Dynamics with Natural Expectations*

    Science.gov (United States)

    Fuster, Andreas; Hebert, Benjamin; Laibson, David

    2012-01-01

    We study an investment model in which agents have the wrong beliefs about the dynamic properties of fundamentals. Specifically, we assume that agents underestimate the rate of mean reversion. The model exhibits the following six properties: (i) Beliefs are excessively optimistic in good times and excessively pessimistic in bad times. (ii) Asset prices are too volatile. (iii) Excess returns are negatively autocorrelated. (iv) High levels of corporate profits predict negative future excess returns. (v) Real economic activity is excessively volatile; the economy experiences amplified investment cycles. (vi) Corporate profits are positively autocorrelated in the short run and negatively autocorrelated in the medium run. The paper provides an illustrative model of animal spirits, amplified business cycles, and excess volatility. PMID:23243469

  2. 12 CFR 956.2 - Authorized investments.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Authorized investments. 956.2 Section 956.2... ITEMS FEDERAL HOME LOAN BANK INVESTMENTS § 956.2 Authorized investments. In addition to assets... securities of any small business investment company formed pursuant to 15 U.S.C. 681(d), to the extent such...

  3. Evaluation of asset replacement strategies considering economic cycles: lessons from the machinery rental business

    NARCIS (Netherlands)

    Grössler, A.; Bivona, E.; Fuzhuang, L.; Größler, A.

    2015-01-01

    In businesses with heavy capital investments, the effective management of assets is crucial, in particular in the fleet rental business where assets are the major source of revenues. One important question in this regard concerns the replacement of used assets and the purchase of new assets. Thus,

  4. Optimal technology choice and investment timing: A stochastic model of industrial cogeneration vs. heat-only production

    International Nuclear Information System (INIS)

    Wickart, Marcel; Madlener, Reinhard

    2007-01-01

    In this paper we develop an economic model that explains the decision-making problem under uncertainty of an industrial firm that wants to invest in a process technology. More specifically, the decision is between making an irreversible investment in a combined heat-and-power production (cogeneration) system, or to invest in a conventional heat-only generation system (steam boiler) and to purchase all electricity from the grid. In our model we include the main economic and technical variables of the investment decision process. We also account for the risk and uncertainty inherent in volatile energy prices that can greatly affect the valuation of the investment project. The dynamic stochastic model presented allows us to simultaneously determine the optimal technology choice and investment timing. We apply the theoretical model and illustrate our main findings with a numerical example that is based on realistic cost values for industrial oil- or gas-fired cogeneration and heat-only generation in Switzerland. We also briefly discuss expected effects of a CO 2 tax on the investment decision

  5. Japanese views on ASSET

    Energy Technology Data Exchange (ETDEWEB)

    Hirano, M [Department of Reactor Safety Research, Japan Atomic Energy Research Inst. (Japan)

    1997-10-01

    The presentation briefly reviews the following aspects directed to ensuring NPP safety: Japanese participation in ASSET activities; views to ASSET activities; recent operating experience in Japan; future ASSET activities.

  6. Japanese views on ASSET

    International Nuclear Information System (INIS)

    Hirano, M.

    1997-01-01

    The presentation briefly reviews the following aspects directed to ensuring NPP safety: Japanese participation in ASSET activities; views to ASSET activities; recent operating experience in Japan; future ASSET activities

  7. Investing: reducing risks to enhance returns.

    Science.gov (United States)

    West, J; Glickman, S; Seidner, A G

    1996-09-01

    The financial assets of a healthcare organization can present many opportunities for investment. In order to develop a profitable investment program that avoids risky speculation, however, healthcare financial managers must fully understand the nature and risks of their organizations' investments. They must define and monitor their investment objectives, limitations, levels of acceptable risk and policies and conditions through a statement of investment policy and comprehensive investment guidelines.

  8. FLUCTUATION IN PENSION FUND ASSETS PRIVATELY MANAGED UNDER THE INFLUENCE OF CERTAIN FACTORS. STATISTICAL STUDY IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Dracea Raluca

    2011-07-01

    Full Text Available On international level, the economic and financial crisis has determined a diminution of the asset value of compulsory pension funds, reflecting a reallocation of funds towards alternative or low-risk investments. The present paper indicates how the net asset value of privately managed pension funds in Romania may be affected or not by certain influence factors in direct correlation with different asset allocation strategies of pension funds. In this way, on literature review there are many studies which have analyzed the fluctuation of pension funds assets and a better reallocation of their investment in order to improve their efficiency. The experience of the value fluctuation of privately administered pension fund net assets is highly important, firstly beacause of its effects on the increase and the decrease of invested values for the insured persons’ accounts, under the circumstances of constantly maintaining their contributions and, implicitly, the results achieved through these investments. The research methodology consists in testing of five variables: currency exchange rate, credit interest rate, bank deposit interest rate, reference interest rate and value of the stock exchange market index (BET-C index, by means of the multiple linear regression method. The conclusion is that only two of these factors, namely, the currency exchange rate and the reference interest rate, influence net asset value of privately managed pension funds, the second pillar, one in direct and the other in indirect correlation. In order to neutralize the effects generated by the diminution of the net asset value of privately managed pension funds, considering a short time horizon, we shall elaborate a dynamic mix of their investments able to adapt to the fluctuations of the influence factors. Thus, new opportunities will be generated in order to achieve the efficiency of pension funds and to prevent the diminution of the value of insured individuals

  9. INVESTMENT FUNDS ON ROMANIAN CAPITAL MARKET

    Directory of Open Access Journals (Sweden)

    Cristian GHEORGHE

    2014-05-01

    Full Text Available National laws governing collective investment undertakings were updated as a result of European secondary law modernization with a view to approximating the conditions of competition between those undertakings at Community level, while at the same time ensuring more effective and more uniform protection for unit-holders. Such coordination intended to facilitate the removal of the restrictions on the free movement of units of UCITS in the internal market. For the purposes of internal regulation UCITS means an undertaking: (a with the sole object of collective investment in transferable securities or in other liquid financial assets of capital raised from the public and which operate on the principle of risk-spreading; and (b with units which are, at the request of holders, repurchased or redeemed, directly or indirectly, out of those undertakings’ assets. The UCITS may be constituted in accordance with contract law (as common funds managed by management companies, trust law (as unit trusts, or statute (as investment companies. Key investor information should be provided as a specific document to investors, before the subscription of the UCITS, in order to help them to reach informed investment decisions. Investment funds enjoy in Romania a new regulatory framework: the contract of common society hosted by new Civil Code and the new Emergency Ordinance regarding UCITS.

  10. Optimal investment decisions with a liability: the case of defined benefit pension plans

    OpenAIRE

    Josa-Fombellida, Ricardo; Rincón-Zapatero, Juan Pablo

    2006-01-01

    In this paper the optimal management of an aggregated dynamic pension fund is studied. To cover the promised liabilities to workers at the age of retirement, the plan sponsor continuously manages time-varying funds. He or she can choose the rate of contribution to the fund, the investment in a given number of risky assets, and a security with constant rate of return. The problem of maximizing the probability that the fund assets achieve some prescribed goal before some undesirable lower value...

  11. Human Capital and Risky Asset Allocation

    OpenAIRE

    Lu, Wenjie; Yu, Qun

    2011-01-01

    Much research has been done to examine the relation between investors' human capital and their financial asset allocation. While some showed that the value of human capital should be taken into consideration to make financial asset allocation decisions on the composition of investing portfolios, most argued not. In this paper, we selected the monthly return of 9 industrial ETFs from June of 2007 to July 2011, used the present value of total future income as estimate of human capital, and reli...

  12. Intangible Assets – Important Resources for Performant Enterprise Gestion

    Directory of Open Access Journals (Sweden)

    Corina Grosu

    2006-10-01

    Full Text Available Along time, the goal of intangible assets became very important for the activity and prosperity of business. This matter is achieved as well as more and more the companies operate in a global economy which has as main base the digital revolution and information management. The increase of the immaterial investments percent requires evaluation and recognition criteria by knowledge, intelligence and human competence. But recently, the accounting standards were about to accord negligible attention or even totally ignored the appropriate modalities of report this category of assets. The accounting, obliged to bend to economic, financial and juridical logics, in a „Taylor” modality, presents an unreal image of the company economic life and particularly of investment activity. In a competitive environment, the reliability of future economic benefits, generated by investments, depends less on their material or immaterial nature and more on the characteristics of the market they operate on. These are just a few reflections which determined us to focus our attention to this thought-provoking domain of immaterial investments, appreciated as a potential for the company.

  13. INTANGIBLE ASSETS – IMPORTANT RESOURCE FOR ENTERPRISE PERFORMANCE MANAGEMENT

    Directory of Open Access Journals (Sweden)

    ANDREEA PAULA DUMITRU

    2011-04-01

    Full Text Available Along time, the goal of intangible assets became very important for the activity and prosperity of business. This matter is achieved as well as more and more the companies operate in a global economy which has as main base the digital revolution and information management. The increase of the immaterial investments percent requires evaluation and recognition criteria by knowledge, intelligence and human competence. But recently, the accounting standards were about to accord negligible attention or even totally ignored the appropriate modalities of report this category of assets. The accounting, obliged to bend to economic, financial and juridical logics, in a „Taylor” modality, presents an unreal image of the company economic life and particularly of investment activity. In a competitive environment, the reliability of future economic benefits, generated by investments, depends less on their material or immaterial nature and more on the characteristics of the market they operate on. These are just a few reflections which determined us to focus our attention to this thoughtprovoking domain of immaterial investments, appreciated as a potential for the company.

  14. INVESTMENT FUNDS IN ROMANIA

    Directory of Open Access Journals (Sweden)

    COPIL CRINA ANGELA

    2013-07-01

    Full Text Available I chose this topic because my goal was to capture in detail all aspects of the evolution of investment funds under the influence of factors leading to globalization of the banking financial market. Main motivation was that I proposed to present in an original manner the concept of investment in mutual funds by the thoroughness of the following points: the different types of investment funds from Romania, the advantages, the risks and the specific costs of the investment in mutual funds and the effects of the financial crisis on the industry of the investment funds on the national level. The financial crisis and the risk of infecting the global economy affected the taste of risk of the investors and their request for the investment fund, determining the orientation of the investors to the funds with a lower risk – the diversified funds, the funds of bonds and the monetary funds. I considered important the theoretical approach of the concept of investments in investment funds because they are a barometer of the macro economical stability, in case the economical increase is positive on the macro economical level the investments in investments funds are increasing too. In Romania the market of the mutual funds is at an incipient level, but with potential and perspectives of development. Due to the bankruptcy of FNI in the beginning of the years 2000 and due to the absence of a clear legislation regarding the calculation of the unitary value of the net asset and the control of the activity developed by the investment funds, the development of the industry of the investment funds had to fight against the crisis of credibility generated by these events. The convergence of the Romanian economy to the European standards will attract also a modification of the structure of the financial investments of the individuals, by an increase of the investments in funds. In the world the investment funds are preferred by the investors for their advantages

  15. Relations between the development of future time perspective in three life domains, investment in learning, and academic achievement

    NARCIS (Netherlands)

    Peetsma, T.; van der Veen, I.

    2011-01-01

    Relations between the development of future time perspectives in three life domains (i.e., school and professional career, social relations, and leisure time) and changes in students’ investment in learning and academic achievement were examined in this study. Participants were 584 students in the

  16. Relations between the Development of Future Time Perspective in Three Life Domains, Investment in Learning, and Academic Achievement

    Science.gov (United States)

    Peetsma, Thea; van der Veen, Ineke

    2011-01-01

    Relations between the development of future time perspectives in three life domains (i.e., school and professional career, social relations, and leisure time) and changes in students' investment in learning and academic achievement were examined in this study. Participants were 584 students in the first and 584 in the second year of the lower…

  17. Beyond Restoration. Valorization of the Public. Monumental Heritage Asset The Istituto degli Innocenti and the MUDI Project

    Directory of Open Access Journals (Sweden)

    Carlo Terpolilli

    2012-04-01

    Full Text Available While protection of our collective monumental heritage is a value and an objective we pass along to future generations, at the same time it must be conceived of a commitment to making these assets available to citizens of the present time. This means applying the disciplines of preservation and restoration and at the same time going beyond with a cultural approach that interprets the monumental asset as a fabbrica; that is, as a place of ongoing design activity: a workshop for a work in progress. This approach necessitates programs for valorization and productive investments that operate in full respect of the assets themselves while employing the innovative tools available for ensuring that the asset as a whole produces income. This is the framework for the MUDI project in Florence.

  18. IMPLEMENTATION OF ASSET MANAGEMENT IN ROAD ADMINISTRATION OF SLOVAK REPUBLIC

    Directory of Open Access Journals (Sweden)

    Ľubomír Pepucha

    2014-03-01

    Full Text Available The article presents basic principles and solutions for the application of Asset Management as part of road administration in Slovakia. It deals with application of Assets management methods and best practices of global trends in road maintenance, repair and rehabilitation strategies. An effective public Asset Management combines principles and strategies of asset management used in private sector with sound practices and methods proven to be applicable by public road administrator and his digital information systems. The under-funding of road management leads to development of tools and methods, which enable us to define criteria for establishing priorities for investments into road assets.

  19. Why hasn’t Macedonia succeeded for a long time in absorbing Foreign Direct Investment

    Directory of Open Access Journals (Sweden)

    Dr.Sc. Nasir Selimi

    2015-06-01

    Full Text Available Recently almost all countries of the world without exception developed countries or the developing countries are attracting foreign direct investments. The reason is that there is no dilemma that benefits of foreign direct investments in the host countries as well as domestic countries are greater than the damage that can have. Western Balkan countries also follow this trend for attracting foreign direct investment. Some of them have achieved notable successes, while the others have achieved less success.  Macedonia is a country that during the last two decades ranks among the countries with smaller foreign direct investments. In the paper which I have chosen to analyze, in the start I gave a general overview of the meaning, role and importance of foreign direct investments for economic development of a country.  Later I have analyzed the trend of foreign direct investments in the region, and especially in Macedonia. At the end sought and given reasons of locking foreign direct investment in Macedonia and recommendations to overcome such a situation.

  20. Investing in river health.

    Science.gov (United States)

    Bennett, J

    2002-01-01

    Rivers provide society with numerous returns. These relate to both the passive and extractive uses of the resources embodied in river environments. Some returns are manifest in the form of financial gains whilst others are non-monetary. For instance, rivers are a source of monetary income for those who harvest their fish. The water flowing in rivers is extracted for drinking and to water crops and livestock that in turn yield monetary profits. However, rivers are also the source of non-monetary values arising from biological diversity. People who use them for recreation (picnicking, swimming, boating) also receive non-monetary returns. The use of rivers to yield these returns has had negative consequences. With extraction for financial return has come diminished water quantity and quality. The result has been a diminished capacity of rivers to yield (non-extractive) environmental returns and to continue to provide extractive values. A river is like any other asset. With use, the value of an asset depreciates because its productivity declines. In order to maintain the productive capacity of their assets, managers put aside from their profits depreciation reserves that can be invested in the repair or replacement of those assets. Society now faces a situation in which its river assets have depreciated in terms of their capacity to provide monetary and non-monetary returns. An investment in river "repair" is required. But, investment means that society gives up something now in order to achieve some benefit in the future. Society thus has to grapple wih the choice between investing in river health and other investments--such as in hospitals, schools, defence etc. - as well as between investing in river health and current consumption--such as on clothes, food, cars etc. A commonly used aid for investment decision making in the public sector is benefit cost analysis. However, its usefulness in tackling the river investment problem is restricted because it requires all

  1. Investor Flows to Asset Managers

    DEFF Research Database (Denmark)

    Christoffersen, Susan E. K.; Musto, David K.; Wermers, Russ

    2014-01-01

    of the financial system and the real economy, and the retirement security and protection of the investors. There is an accordingly large and growing literature on flows that has concentrated on the main retail investment pool, the open-end mutual fund, and has used flows to explore many aspects of retail financial...... decision making. We survey this literature and, where relevant, describe how open-end flows compare to other investment vehicles. We also identify opportunities both for future research and for refinement of mutual fund design, in particular as suggested by the recent rethinking of retail investment pools......Cash flows between investors and funds are both cause and effect in a complex web of economic decisions. Among the issues at stake are the prospects and fees of the funds, the efforts and risk choices by the funds' managers, the pricing and comovement of the assets they trade, the stability...

  2. Asset management program

    International Nuclear Information System (INIS)

    Wison, P.; Newman, G.

    2013-01-01

    In order to understand our assets we have been assessing the condition of the units in our nuclear power plants developing asset life management options on a component by component basis. We have concluded that with the right work and planning we will be able to manage the units in a way that balances capacity requirements over the long term and at the same time manage the demand on critical resources. Major component replacement outages include Installing/removing bulkheads, pressure tube and calandria tube replacement, feeder replacement, steam generator replacement, supporting facilities and infrastructure, reactor inspections and maintenance including tooling enhancements, additional non reactor systems inspection & testing and continued research and analysis. These plans will have to take into account cost, resource and capacity requirements.

  3. Windfall profit in portfolio diversification? An empirical analysis of the potential benefits of renewable energy investments

    Energy Technology Data Exchange (ETDEWEB)

    Bruns, Frederik

    2013-05-01

    Modern Portfolio Theory is a theory which was introduced by Markowitz, and which suggests the building of a portfolio with assets that have low or, in the best case, negative correlation. In times of financial crises, however, the positive diversification effect of a portfolio can fail when Traditional Assets are highly correlated. Therefore, many investors search for Alternative Asset classes, such as Renewable Energies, that tend to perform independently from capital market performance. 'Windfall Profit in Portfolio Diversification?' discusses the potential role of Renewable Energy investments in an institutional investor's portfolio by applying the main concepts from Modern Portfolio Theory. Thereby, the empirical analysis uses a unique data set from one of the largest institutional investors in the field of Renewable Energies, including several wind and solar parks. The study received the Science Award 2012 of the German Alternative Investments Association ('Bundesverband Alternative Investments e.V.').

  4. PERFORMANCE MEASUREMENT OF UCITS INVESTMENT FUNDS IN CROATIA

    Directory of Open Access Journals (Sweden)

    Marko Curkovic

    2017-03-01

    Full Text Available UCITS investment funds represent an important investment opportunity for retail, as well for institutional investors in the European Union. The aim of this paper is to analyse the performance of the UCITS investment funds in Croatia and to detect relatively homogeneous groups among the UCITS funds based on its performance. The analysis includes 55 UCITS, in the period from the beginning of 2011 until the end of 2014, and it is conducted on daily data of share prices, available from Bloomberg terminal. Analysis is performed separately within the groups of different investment fund by investment strategy. The research methodology is based on the calculation of various indicators of absolute and relative risk-adjusted performance and riskiness of the funds. In general, based on analysis of performance measures, it can be concluded that funds with higher values of net assets were more successful compared to the funds with below-average asset values. Also, funds with below-average values of net assets were more volatile. At the same time, funds run by foreign own management companies were more successful by the absolute performance measures, compared to funds run by management companies with domestic ownership. On the other hand, those funds were more volatile, as well.

  5. Portability, Salary and Asset Price Risk: A Continuous-Time Expected Utility Comparison of DB and DC Pension Plans

    Directory of Open Access Journals (Sweden)

    An Chen

    2015-03-01

    Full Text Available This paper compares two different types of private retirement plans from the perspective of a representative beneficiary: a defined benefit (DB and a defined contribution (DC plan. While salary risk is the main common risk factor in DB and DC pension plans, one of the key differences is that DB plans carry portability risks, whereas DC plans bear asset price risk. We model these tradeoffs explicitly in this paper and compare these two plans in a utility-based framework. Our numerical analysis focuses on answering the question of when the beneficiary is indifferent between the DB and DC plan. Most of our results confirm the findings in the existing literature, among which, e.g., portability losses considerably reduce the relative attractiveness of the DB plan. However, we also find that the attractiveness of the DB plan can decrease in the level of risk aversion, which is inconsistent with the existing literature.

  6. AUTOMATING ASSET KNOWLEDGE WITH MTCONNECT.

    Science.gov (United States)

    Venkatesh, Sid; Ly, Sidney; Manning, Martin; Michaloski, John; Proctor, Fred

    2016-01-01

    In order to maximize assets, manufacturers should use real-time knowledge garnered from ongoing and continuous collection and evaluation of factory-floor machine status data. In discrete parts manufacturing, factory machine monitoring has been difficult, due primarily to closed, proprietary automation equipment that make integration difficult. Recently, there has been a push in applying the data acquisition concepts of MTConnect to the real-time acquisition of machine status data. MTConnect is an open, free specification aimed at overcoming the "Islands of Automation" dilemma on the shop floor. With automated asset analysis, manufacturers can improve production to become lean, efficient, and effective. The focus of this paper will be on the deployment of MTConnect to collect real-time machine status to automate asset management. In addition, we will leverage the ISO 22400 standard, which defines an asset and quantifies asset performance metrics. In conjunction with these goals, the deployment of MTConnect in a large aerospace manufacturing facility will be studied with emphasis on asset management and understanding the impact of machine Overall Equipment Effectiveness (OEE) on manufacturing.

  7. A model for efficient management of electrical assets

    International Nuclear Information System (INIS)

    Alonso Guerreiro, A.

    2008-01-01

    At the same time that energy demand grows faster than the investments in electrical installations, the older capacity is reaching the end of its useful life. The need of running all those capacity without interruptions and an efficient maintenance of its assets, are the two current key points for power generation, transmission and distribution systems. This paper tries to show the reader a model of management which makes possible an effective management of assets with a strict control cost, and which includes those key points, centred at predictive techniques, involving all the departments of the organization and which goes further on considering the maintenance like a simple reparation or substitution of broken down units. Therefore, it becomes precise a model with three basic lines: supply guarantee, quality service and competitively, in order to allow the companies to reach the current demands which characterize the power supply. (Author) 5 refs

  8. Index Tracking with Control on the Number of Assets

    Directory of Open Access Journals (Sweden)

    Leonardo Riegel Sant'Anna

    2014-06-01

    Full Text Available Index tracking is a passive investment strategy, which aims at generating portfolios to reproduce a specific market index’s performance. This article proposes a model for a index tracking problem with control on the number of assets in the portfolio, which corresponds to a restriction in transaction costs. The model is applied to Ibovespa (sample: 67 stocks from January/2009 to July/2012. Portfolios were formed without limiting the amount of stocks and limiting this amount to 40, 30 and 20 stocks, with rebalancing periods of 20, 40 and 60 trading days. The results were satisfactory especially for the 60 days rebalancing period, in which transaction costs become lower due to the longer rebalancing period. We also verified that changes in Cplex parameters didn’t influence the results especially in relation to the computational times. Therefore, we also conclude about the need of using heuristic approaches to form portfolios with smaller amounts of assets.

  9. Optimising investment performance through international diversification

    Directory of Open Access Journals (Sweden)

    J. Swart

    2014-01-01

    Full Text Available International portfolio diversification is often advocated as a way of enhancing portfolio performance particularly through the reduction of portfolio risk. Portfolio managers in Europe have for decades routinely invested a substantial portion of their portfolios in securities that were issued in other countries. During the last decade US investors have held a significant amount of foreign securities with over a trillion dollars invested in foreign assets by 1994. South African institutions have been allowed some freedom to diversify internationally since mid 1995 and individual investors since July 1997. In this paper the potential diversification benefits for South African investors are considered. The stability over time of the correlation structure is investigated and simple ex-ante investment strategies are formulated and evaluated.

  10. Intensity and efficiency analysis of assets use when monitoring the ...

    African Journals Online (AJOL)

    The authors define the gap as an underestimated part of assets and identify it with the company's goodwill. The authors research the practical application area of the business activity indicators, including for the grounded management decisions concerning the evaluation of investment attractiveness and efficiency of assets ...

  11. Pension Fund Asset Allocation and Liability Discount Rates

    NARCIS (Netherlands)

    Andonov, Aleksandar; Bauer, Rob; Cremers, Martijn

    2017-01-01

    The unique regulation of U.S. public pension funds links their liability discount rate to the expected return on assets, which gives them incentives to invest more in risky assets in order to report a better funding status. Comparing public and private pension funds in the United States, Canada, and

  12. Optimal Investment Under Transaction Costs: A Threshold Rebalanced Portfolio Approach

    Science.gov (United States)

    Tunc, Sait; Donmez, Mehmet Ali; Kozat, Suleyman Serdar

    2013-06-01

    We study optimal investment in a financial market having a finite number of assets from a signal processing perspective. We investigate how an investor should distribute capital over these assets and when he should reallocate the distribution of the funds over these assets to maximize the cumulative wealth over any investment period. In particular, we introduce a portfolio selection algorithm that maximizes the expected cumulative wealth in i.i.d. two-asset discrete-time markets where the market levies proportional transaction costs in buying and selling stocks. We achieve this using "threshold rebalanced portfolios", where trading occurs only if the portfolio breaches certain thresholds. Under the assumption that the relative price sequences have log-normal distribution from the Black-Scholes model, we evaluate the expected wealth under proportional transaction costs and find the threshold rebalanced portfolio that achieves the maximal expected cumulative wealth over any investment period. Our derivations can be readily extended to markets having more than two stocks, where these extensions are pointed out in the paper. As predicted from our derivations, we significantly improve the achieved wealth over portfolio selection algorithms from the literature on historical data sets.

  13. Pension fund sophistication and investment policy

    NARCIS (Netherlands)

    de Dreu, J.|info:eu-repo/dai/nl/364537906; Bikker, J.A.|info:eu-repo/dai/nl/06912261X

    This paper assesses the sophistication of pension funds’ investment policies using data on 748 Dutch pension funds during the 1999–2006 period. We develop three indicators of sophistication: gross rounding of investment choices, investments in alternative sophisticated asset classes and ‘home bias’.

  14. AFFECT AND THE FRAMING EFFECT WITHIN INDIVIDUALS OVER TIME: RISK TAKING IN A DYNAMIC INVESTMENT SIMULATION.

    Science.gov (United States)

    Seo, Myeong-Gu; Goldfarb, Brent; Barrett, Lisa Feldman

    2010-04-01

    We examined the role of affect (pleasant or unpleasant feelings) and decision frames (gains or losses) in risk taking in a 20-day stock investment simulation in which 101 participants rated their current feelings while making investment decisions. As predicted, affect attenuated the relationships between decision frames and risk taking. After experiencing losses, individuals made more risky choices, in keeping with the framing effect. However, this tendency decreased and/or disappeared when loss was simultaneously experienced with either pleasant or unpleasant feelings. Similarly, individuals' tendency to avoid risk after experiencing gains disappeared or even reversed when they simultaneously experienced pleasant feelings.

  15. Asset Reuse of Images from a Repository

    Science.gov (United States)

    Herman, Deirdre

    2014-01-01

    According to Markus's theory of reuse, when digital repositories are deployed to collect and distribute organizational assets, they supposedly help ensure accountability, extend information exchange, and improve productivity. Such repositories require a large investment due to the continuing costs of hardware, software, user licenses, training,…

  16. Dukovany ASSET mission preparation

    Energy Technology Data Exchange (ETDEWEB)

    Kouklik, I [NPP Dukovany (Czech Republic)

    1997-12-31

    We are in the final stages of the Dukovany ASSET mission 1996 preparation. I would like to present some of our recent experiences. Maybe they would be helpful to other plants, that host ASSET missions in future.

  17. Dukovany ASSET mission preparation

    International Nuclear Information System (INIS)

    Kouklik, I.

    1996-01-01

    We are in the final stages of the Dukovany ASSET mission 1996 preparation. I would like to present some of our recent experiences. Maybe they would be helpful to other plants, that host ASSET missions in future

  18. "Asset Ownership Across Generations"

    OpenAIRE

    Ngina S. Chiteji; Frank P. Stafford

    2000-01-01

    This paper examines cross-generational connections in asset ownership. It begins by presenting a theoretical framework that develops the distinction between the intergenerational transfer of knowledge about financial assets and the direct transfer of dollars from parents to children. Its analysis of data from the Panel Study of Income Dynamics (PSID) reveals intergenerational correlations in asset ownership, and we find evidence to suggest that parental asset ownership or family-based exposur...

  19. System and Method for Monitoring Distributed Asset Data

    Science.gov (United States)

    Gorinevsky, Dimitry (Inventor)

    2015-01-01

    A computer-based monitoring system and monitoring method implemented in computer software for detecting, estimating, and reporting the condition states, their changes, and anomalies for many assets. The assets are of same type, are operated over a period of time, and outfitted with data collection systems. The proposed monitoring method accounts for variability of working conditions for each asset by using regression model that characterizes asset performance. The assets are of the same type but not identical. The proposed monitoring method accounts for asset-to-asset variability; it also accounts for drifts and trends in the asset condition and data. The proposed monitoring system can perform distributed processing of massive amounts of historical data without discarding any useful information where moving all the asset data into one central computing system might be infeasible. The overall processing is includes distributed preprocessing data records from each asset to produce compressed data.

  20. Foreign Direct Investment and Economic Growth in Developing

    African Journals Online (AJOL)

    Prof

    investments involving transfer of assets, including financial capital, advanced .... different impacts across sectors, estimation results showed that the composition ... Investment, Population, Inflation rate, Natural Resource Rent and Interest rate,.

  1. Assessing Asset Pricing Anomalies

    NARCIS (Netherlands)

    W.A. de Groot (Wilma)

    2017-01-01

    markdownabstractOne of the most important challenges in the field of asset pricing is to understand anomalies: empirical patterns in asset returns that cannot be explained by standard asset pricing models. Currently, there is no consensus in the academic literature on the underlying causes of

  2. Capital Structure and Assets

    DEFF Research Database (Denmark)

    Flor, Christian Riis

    2008-01-01

    This paper analyzes a firm's capital structure choice when assets have outside value. Valuable assets implicitly provide a collateral and increase tax shield exploitation. The key feature in this paper is asset value uncertainty, implying that it is unknown ex ante whether the equity holders ex p...

  3. Macroeconomic influences on optimal asset allocation

    OpenAIRE

    Flavin, Thomas; Wickens, M.R.

    2003-01-01

    We develop a tactical asset allocation strategy that incorporates the effects of macroeconomic variables. The joint distribution of financial asset returns and the macroeconomic variables is modelled using a VAR with a multivariate GARCH (M-GARCH) error structure. As a result, the portfolio frontier is time varying and subject to contagion from the macroeconomic variable. Optimal asset allocation requires that this be taken into account. We illustrate how to do this using three ri...

  4. THE MAIN QUESTION OF FIXED ASSETS

    Directory of Open Access Journals (Sweden)

    Kogan A. B.

    2015-03-01

    Full Text Available The article deals with the methods of selecting the best type of fixed assets (real investment. Explore the current situation where the investor has to compare the different-parametrical alternatives (DPA. The DPA are the fixed assets which have similar functions, but different in price, durability and periodic effects. In the general case the DPA are the investment projects which have different amounts of investment, accounting periods and net cash flow. Net present value (NPV and internal rate of return (IRR are criticized. The author describes his indicator «speed index of unit value increase» (IS. The author proves on numerical examples that the economy, the subjects of which use IS instead of NPV and IRR, has accelerated the pace of development.

  5. Addressing Thermal Model Run Time Concerns of the Wide Field Infrared Survey Telescope using Astrophysics Focused Telescope Assets (WFIRST-AFTA)

    Science.gov (United States)

    Peabody, Hume; Guerrero, Sergio; Hawk, John; Rodriguez, Juan; McDonald, Carson; Jackson, Cliff

    2016-01-01

    The Wide Field Infrared Survey Telescope using Astrophysics Focused Telescope Assets (WFIRST-AFTA) utilizes an existing 2.4 m diameter Hubble sized telescope donated from elsewhere in the federal government for near-infrared sky surveys and Exoplanet searches to answer crucial questions about the universe and dark energy. The WFIRST design continues to increase in maturity, detail, and complexity with each design cycle leading to a Mission Concept Review and entrance to the Mission Formulation Phase. Each cycle has required a Structural-Thermal-Optical-Performance (STOP) analysis to ensure the design can meet the stringent pointing and stability requirements. As such, the models have also grown in size and complexity leading to increased model run time. This paper addresses efforts to reduce the run time while still maintaining sufficient accuracy for STOP analyses. A technique was developed to identify slews between observing orientations that were sufficiently different to warrant recalculation of the environmental fluxes to reduce the total number of radiation calculation points. The inclusion of a cryocooler fluid loop in the model also forced smaller time-steps than desired, which greatly increases the overall run time. The analysis of this fluid model required mitigation to drive the run time down by solving portions of the model at different time scales. Lastly, investigations were made into the impact of the removal of small radiation couplings on run time and accuracy. Use of these techniques allowed the models to produce meaningful results within reasonable run times to meet project schedule deadlines.

  6. Optimal Investment and Reinsurance for Insurers with Uncertain Time-Horizon

    Directory of Open Access Journals (Sweden)

    Ailing Gu

    2014-01-01

    state hits the barrier. The objective of the insurer is to maximize the expected discounted exponential utility of her terminal wealth. By dynamic programming approach and Feynman-Kac representation theorem, we derive the expressions for optimal value functions and optimal investment-reinsurance strategies in two special cases. Furthermore, an example is considered under the diffusion-approximation model, which shows some interesting results.

  7. The roles of the trading time risks on stock investment return and risks in stock price crashes

    Science.gov (United States)

    Li, Jiang-Cheng; Dong, Zhi-Wei; Yang, Guo-Hui; Long, Chao

    2017-03-01

    The roles of the trading time risks (TTRs) on stock investment return and risks are investigated in the condition of stock price crashes with Hushen300 data (CSI300) and Dow Jones Industrial Average (ˆDJI), respectively. In order to describe the TTR, we employ the escape time that the stock price drops from the maximum to minimum value in a data window length (DWL). After theoretical and empirical research on probability density function of return, the results in both ˆDJI and CSI300 indicate that: (i) As increasing DWL, the expectation of returns and its stability are weakened. (ii) An optimal TTR is related to a maximum return and minimum risk of stock investment in stock price crashes.

  8. 17 CFR 270.5b-1 - Definition of “total assets.”

    Science.gov (United States)

    2010-04-01

    ... (CONTINUED) RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940 § 270.5b-1 Definition of “total assets... 17 Commodity and Securities Exchanges 3 2010-04-01 2010-04-01 false Definition of âtotal assets.â..., shall mean the gross assets of the company with respect to which the computation is made, taken as of...

  9. Asset liability management modeling using multi-stage mixed-integer stochastic programming

    NARCIS (Netherlands)

    Drijver, S.J.; Klein Haneveld, W.K.; van der Vlerk, Maarten H.

    2000-01-01

    A pension fund has to match the portfolio of long-term liabilities with the portfolio of assets. Key instruments in strategic Asset Liability Management (ALM) are the adjustments of the contribution rate of the sponsor and the reallocation of the investments in several asset classes at various

  10. Electricity and combined heat and power from municipal solid waste; theoretically optimal investment decision time and emissions trading implications.

    Science.gov (United States)

    Tolis, Athanasios; Rentizelas, Athanasios; Aravossis, Konstantin; Tatsiopoulos, Ilias

    2010-11-01

    Waste management has become a great social concern for modern societies. Landfill emissions have been identified among the major contributors of global warming and climate changes with significant impact in national economies. The energy industry constitutes an additional greenhouse gas emitter, while at the same time it is characterized by significant costs and uncertain fuel prices. The above implications have triggered different policies and measures worldwide to address the management of municipal solid wastes on the one hand and the impacts from energy production on the other. Emerging methods of energy recovery from waste may address both concerns simultaneously. In this work a comparative study of co-generation investments based on municipal solid waste is presented, focusing on the evolution of their economical performance over time. A real-options algorithm has been adopted investigating different options of energy recovery from waste: incineration, gasification and landfill biogas exploitation. The financial contributors are identified and the impact of greenhouse gas trading is analysed in terms of financial yields, considering landfilling as the baseline scenario. The results indicate an advantage of combined heat and power over solely electricity production. Gasification, has failed in some European installations. Incineration on the other hand, proves to be more attractive than the competing alternatives, mainly due to its higher power production efficiency, lower investment costs and lower emission rates. Although these characteristics may not drastically change over time, either immediate or irreversible investment decisions might be reconsidered under the current selling prices of heat, power and CO(2) allowances.

  11. Investment Restrictions and Contagion in Emerging Markets

    OpenAIRE

    Anna Ilyina

    2005-01-01

    The objectives of this paper are: (1) to analyze an optimal portfolio rebalancing by a fund manager in response to a "volatility shock" in one of the asset markets, under sufficiently realistic assumptions about the fund manager's performance criteria and investment restrictions; and (2) to analyze the sensitivity of the equilibrium price of an asset to shocks originating in other fundamentally unrelated asset markets for a given mix of common investors. The analysis confirms that certain com...

  12. Investment Strategy and Efficiency of Investment Activity of European Insurers

    Directory of Open Access Journals (Sweden)

    Zhabynets Olga Yo.

    2014-02-01

    Full Text Available The article studies investment strategy and efficiency of investment activity of European insurance companies. In particular, it analyses the share of investments of insurance companies of Europe in GDP, investment portfolio of European insurers and its structure, contribution of insurance companies – leaders of investment activity – into the European investment portfolio. It studies influence of the financial crisis upon investment strategy of European insurers and analyses efficiency of investment activity of European insurers in risk insurance and life insurance. The article proves that investment business models of insurance companies are capable of resisting crisis phenomena more efficiently than other financial institutions. It marks out that measures of insurance companies that are directed at increase of profitability of investments require from them both significant expenditures on creation of the system of investment risk management and open access to different categories of financial assets and markets, which influences the general risk level, taken upon by an insurance company. The author draws a conclusion that, taking into account recent developments, European insurers should focus on equity and investment risk management, finding new possibilities for their (investments growth and also adaptation of new systems and operations for solution of these important tasks.

  13. Capital investment requirements for greenhouse gas emissions mitigation in power generation on near term to century time scales and global to regional spatial scales

    International Nuclear Information System (INIS)

    Chaturvedi, Vaibhav; Clarke, Leon; Edmonds, James; Calvin, Katherine; Kyle, Page

    2014-01-01

    Our paper explores the implication of climate mitigation policy and electricity generation technology performance for capital investment demands by the electric power sector on near term to century time scales. We find that stabilizing GHG emissions will require additional investment in the electricity generation sector over and above investments that would be needed in the absence of climate policy, in the range of 15 to 29 trillion US$ (48–94%) depending on the stringency of climate policy during the period 2015 to 2095 under default technology assumptions. This increase reflects the higher capital intensity of power systems that control emissions as well as increased electrification of the global economy. Limits on the penetration of nuclear and carbon capture and storage technology could increase costs substantially. Energy efficiency improvements can reduce the investment requirement by 18 to 24 trillion US$ (compared to default technology climate policy assumptions), depending on climate policy scenario. We also highlight the implications of different technology evolution scenarios for different regions. Under default technology set, the heaviest investments across scenarios in power generation were observed in China, India, SE Asia and Africa regions with the latter three regions dominating in the second half of the 21st century. - Highlights: • We present electricity generation investment requirement under different scenarios. • A climate policy will lead to substantial increase in investment requirement. • Stringency of climate policy has significant implications for investments. • Technology evolution and performance alter investment requirements significantly. • China, India, Southeast Asia and Africa dominate as investment destinations

  14. A Technical Note on Australian Default Superannuation Investment Strategies

    Directory of Open Access Journals (Sweden)

    Loretta Iskra

    2012-06-01

    Full Text Available Superannuation has become more complex over time. Individual investors are inclined to seek the ‘path of least resistance’ and invest in default investment funds which are typically concentrated in high risk assets. Understanding how these funds will meet the individual needs of members relative to their changing circumstances can provide peace of mind and confidence in the market. Given the value of superannuation as an investment in terms of the economy, it is paramount than an appropriate mechanism be in place for default fund investors. This paper will clarify the existing position relative to default fund investment options and outline future research which will provide the impetus for change in terms ofgovernment policy, the financial planning profession and for industry superannuation funds.

  15. Management of Portfolio Investment Held by Pension Funds

    Directory of Open Access Journals (Sweden)

    Dan Armeanu

    2008-09-01

    Full Text Available As a result of the fact that pension funds are financial intermediaries, the value of their assets and liabilities is influenced by changing conditions in financial markets. The market image of a pension fund (and hence its perceived value are closely tied to the “financial health” of the fund. Setting up and managing complex investment portfolios requires that pension administrators use scientific models of portfolio selection and optimization based on the risk-expected return relationship. Most investment portfolios are modified in time as result of changing stock prices and investment policy objectives. Having established investment policy guidelines, the administrators of pension funds have to determine the structure of their portfolios so that the latter meet legal requirements.

  16. The incentives of households to implement the educational investment

    Directory of Open Access Journals (Sweden)

    Nedospasova Olga

    2016-01-01

    Full Text Available Households (as any other rational investors will make investments in the higher education sphere only in case of being sure that in future invested money will generate a significant money flow at a low risk level. It is important that capital investment should bring return at the rate commensurable with profitability of other assets and time of their expenditure cover should not exceed the horizon, acceptable for the investor. In this article, indices of net present value (NVP and a period of payback (PB in the empirical case format are discussed in detail. A conclusion is made by empirical analysis about economic effectiveness of household investments in the higher education sphere and as a result, in personal human capital. The empiric case, presented in this article, revealed considerable private economic benefits from higher education.

  17. Consumer willingness to invest money and time for benefits of lifestyle behaviour change: an application of the contingent valuation method.

    Science.gov (United States)

    Alayli-Goebbels, Adrienne F G; van Exel, Job; Ament, André J H A; de Vries, Nanne K; Bot, Sandra D M; Severens, Johan L

    2015-12-01

    To use contingent valuation (CV) to derive individual consumer values for both health and broader benefits of a public-health intervention directed at lifestyle behaviour change (LBC) and to examine the feasibility and validity of the method. Participants of a lifestyle intervention trial (n = 515) were invited to complete an online CV survey. Respondents (n = 312) expressed willingness to invest money and time for changes in life expectancy, health-related quality of life (HRQOL) and broader quality of life aspects. Internal validity was tested for by exploring associations between explanatory variables (i.e. income, paid work, experience and risk factors for cardiovascular diseases) and willingness to invest, and by examining ordering effects and respondents' sensitivity to the scope of the benefits. The majority of respondents (94.3%) attached value to benefits of LBC, and 87.4% were willing to invest both money and time. Respondents were willing to invest more for improvements in HRQOL (€42/month; 3 h/week) and broader quality of life aspects (€40/month; 2.6 h/week) than for improvements in life expectancy (€24/month; 2 h/week). Protest answers were limited (3%) and findings regarding internal validity were mixed. The importance of broader quality of life outcomes to consumers suggests that these outcomes are relevant to be considered in the decision making. Our research showed that CV is a feasible method to value both health and broader outcomes of LBC, but generalizability to other areas of public health still needs to be examined. Mixed evidence regarding internal validity pleads for caution to use CV as only the base for decision making. © 2014 John Wiley & Sons Ltd.

  18. Gaining Insight into an Organization's Fixed Assets.

    Science.gov (United States)

    Hardy, Elisabet

    2003-01-01

    Discusses issues related to school district implementation of June 2001 Government Accounting Standards Board (GASB) Statement 34 designed to change how schools report fixed assets. Includes planning for GASB implementation, conducting fixed-asset inventories, and making time for GASB reporting. (PKP)

  19. Alternative approaches to transmission investment

    Energy Technology Data Exchange (ETDEWEB)

    Thon, S. [AltaLink Management Ltd., Calgary, AB (Canada)

    2004-07-01

    AltaLink is Canada's first stand-alone power transmission company, serving all major centres in Alberta and 85 per cent of Alberta's population. It has more than $1 billion in assets, 11,500 km of transmission lines and 300 substations. It was noted that there has not been any significant investment in power transmission in Alberta for the past 20 years, partly because transmission assets have a very long lifespan. The new role of the power grid is to ensure reliability, safety, efficiency, market effectiveness and supply diversity. The benefits and costs of AltaLink's 500 kV North-South upgrade project were outlined. It was noted that a healthy transmission system is the basis for economic growth throughout the province and for the development of Alberta's resource base. The transmission policy in Alberta endorses that all consumers pay postage stamp tariffs. It also promotes a proactive plan for transmission projects, the time to maximum rate (TMR) in limited cases only, a congestion-free grid under normal conditions, the financial commitment of generators, specific time limits on permitting processes, and regional interconnections to benefit all customers. tabs., figs.

  20. Residential Customer Enrollment in Time-based Rate and Enabling Technology Programs: Smart Grid Investment Grant Consumer Behavior Study Analysis

    Energy Technology Data Exchange (ETDEWEB)

    Todd, Annika [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Cappers, Peter [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Goldman, Charles [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

    2013-05-01

    The U.S. Department of Energy’s (DOE’s) Smart Grid Investment Grant (SGIG) program is working with a subset of the 99 SGIG projects undertaking Consumer Behavior Studies (CBS), which examine the response of mass market consumers (i.e., residential and small commercial customers) to time-varying electricity prices (referred to herein as time-based rate programs) in conjunction with the deployment of advanced metering infrastructure (AMI) and associated technologies. The effort presents an opportunity to advance the electric industry’s understanding of consumer behavior.

  1. Nuclear investment: performance and opportunity

    International Nuclear Information System (INIS)

    Lacy, B.

    2007-01-01

    Nuclear power plant ownership in the United States has continued its steady trend toward ownership consolidation and removal of assets from rate regulated environments that began in 1998. This is paralleled by changes in companies providing nuclear services and growing talk of building new units. World wide, new nuclear plant construction and related supplier investment is proceeding around the world. The nuclear fuel supply part of the business is seeing interest and excitement that would have been almost inconceivable a decade ago. Nuclear is now increasingly being recognized for its energy, economic and environmental benefits. For investors, this is a time of opportunity. And the opportunity is strongly supported by excellent performance trends and fundamental change sin the US electricity business. But in order to benefit from these changes, investors must remain cautious and be committed to comprehensively and thoroughly understanding the individual and interrelated technical, regulatory and political issues that surround this useful and powerful technology. (orig.)

  2. Asset Allocation:diversification dan Rebalancing sebagai Bagian dari Proses Perencanaan Keuangan (suatu Kajian Pustaka)

    OpenAIRE

    Dewi, Vera Intanie

    2013-01-01

    Financial planning is the process of designing an investmentstrategy that can helps an individual to achieve financial goals. Asset allocation, diversification and rebalancing is a particularly important steps of investment strategy process. By doing asset allocation and diversification among a variety of different asset categories such as bonds,stocks,mutual funds and saving can helps minimize risk and maximize return. And the goal of rebalancing is to move the current asset allocation back ...

  3. KEBIJAKAN PENDANAAN DAN DIVIDEN DENGAN PENDEKATAN INVESTMENT OPPORTUNITY SET

    OpenAIRE

    Christian Herdinata

    2017-01-01

    This research aimed to identify policy difference of debt and dividend policy amongcompanies having potency high and low growth with approach of investment opportunity setin Indonesia Stock Exchange (BEI). To classify company growth, it was applied five proxiesInvestment Opportunity Set (IOS) that was market to book of asset ratio (MVE/BE), price earningratio (PER), value book of plant, property, and equipment to asset ratio ( PPE/BVA) and capitaladdition to book of asset ratio (CAP/BVA). The...

  4. Kebijakan Pendanaan Dan Dividen Dengan Pendekatan Investment Opportunity Set

    OpenAIRE

    Herdinata, Christian

    2009-01-01

    This research aimed to identify policy difference of debt and dividend policy amongcompanies having potency high and low growth with approach of investment opportunity setin Indonesia Stock Exchange (BEI). To classify company growth, it was applied five proxiesInvestment Opportunity Set (IOS) that was market to book of asset ratio (MVE/BE), price earningratio (PER), value book of plant, property, and equipment to asset ratio ( PPE/BVA) and capitaladdition to book of asset ratio (CAP/BVA). The...

  5. Valuation of intangible assets

    OpenAIRE

    Karlíková, Jitka

    2010-01-01

    The thesis is focused on the valuation of intangible assets, particularly trademarks and copyrights. In the beginning it deals with the problems of valuation of intangible assets. The main part of the thesis provides an overview of methods for valuation of intangible assets. This part is followed by a practical section that illustrates the procedure of valuation of trademarks and copyrights on a concrete example.

  6. [ASSET experience in China

    International Nuclear Information System (INIS)

    Zhang Shanming

    1996-01-01

    The ASSET philosophy for prevention of nuclear safety incident is being implemented in our nuclear power plant as the other international nuclear power plants, and the in-depth analysis of operational events in order to find out and eliminate the root causes is considered as the prioritized work in the plant safety management. Some observations are discussed which were made during the implementation of ASSET philosophy and the ASSET approach in our nuclear power plant

  7. Asset Opacity and Liquidity

    OpenAIRE

    Stenzel, A.; Wagner, W.B.

    2013-01-01

    Abstract: We consider a model of private information acquisition in which the cost of information depends on an asset's opacity. The model generates a hump-shaped relationship between opacity and the equilibrium amount of private information. In particular, the incentives to acquire information are largest for assets of intermediate opacity; such assets hence display low liquidity in the secondary market due to adverse selection. We also show that costly information acquisition generates ince...

  8. [ASSET experience in China

    Energy Technology Data Exchange (ETDEWEB)

    Shanming, Zhang [Dayabay NPP (China)

    1997-12-31

    The ASSET philosophy for prevention of nuclear safety incident is being implemented in our nuclear power plant as the other international nuclear power plants, and the in-depth analysis of operational events in order to find out and eliminate the root causes is considered as the prioritized work in the plant safety management. Some observations are discussed which were made during the implementation of ASSET philosophy and the ASSET approach in our nuclear power plant.

  9. Japanese views on ASSET

    Energy Technology Data Exchange (ETDEWEB)

    Hirano, Masashi [Department of Reactor Safety Research, Japan Atomic Energy Research Inst., Tokai, Ibaraki (Japan)

    1997-12-31

    In general, the ASSET has had a positive effect on enhancement of operating experience feedback. The ASSET has played an important role to supply information to the IAEA Extra Budgetary Program. However, this role has come to an end; since the needs for safety upgrading have become identified and prioritized. ASSET missions in future: Linkage among various safety missions should be sought in order to avoid duplication and to enhance effective usage of a limited budget and human resources.

  10. Environmental, Social and Governance (ESG and Investment Decision in Bangladesh

    Directory of Open Access Journals (Sweden)

    Sayema Sultana

    2018-06-01

    Full Text Available As a key facet of sustainable development, environmental, social and governance (ESG discretion on stock market investment decision is gaining prevalence following the global financial crisis. ESG considers the sustainable return, risk reduction, and accountability aspects of investments. This study is an exploration of the individual stock market investors’ preferences for ESG issues and the influence that purpose of investment has on investment decision-making, by testing the investment horizon as a moderator. The theoretical background was taken from the theory of planned behavior (TPB, goal setting theory (GST, and the behavioral asset pricing model (BAPM. The study uses the sequential mix method of research, starting with an interview followed by a survey, which was conducted among individual stock market investors in Bangladesh, using simple random sampling. Structural equation modeling (SEM analysis was carried out using Warp PLS version 6.0. The key findings of this study delineate the effect of ESG issues and the purpose of investment on investment decision-making. The contribution of the study signifies the moderating role of the investment horizon, which confirms the importance of the long-term horizon as a time and risk diversification factor. The sparse utilization of the United Nations Global Compact (UNGC (2004 and Thomson Reuters Corporate Responsibility Index (TRCRI (2013 as measurement scales in this study is mentioned. This study has made practical contributions for managers, investors, and regulators.

  11. Three-dimensional GIS approach for management of assets

    Science.gov (United States)

    Lee, S. Y.; Yee, S. X.; Majid, Z.; Setan, H.

    2014-02-01

    Assets play an important role in human life, especially to an organization. Organizations strive and put more effort to improve its operation and assets management. The development of GIS technology has become a powerful tool in management as it is able to provide a complete inventory for managing assets with location-based information. Spatial information is one of the requirements in decision making in various areas, including asset management in the buildings. This paper describes a 3D GIS approach for management of assets. An asset management system was developed by integrating GIS concept and 3D model assets. The purposes of 3D visualization to manage assets are to facilitate the analysis and understanding in the complex environment. Behind the 3D model of assets is a database to store the asset information. A user-friendly interface was also designed for more easier to operate the application. In the application developed, location of each individual asset can be easily tracked according to the referring spatial information and 3D viewing. The 3D GIS approach described in this paper is certainly would be useful in asset management. Systematic management of assets can be carried out and this will lead to less-time consuming and cost-effective. The results in this paper will show a new approach to improve asset management.

  12. Three-dimensional GIS approach for management of assets

    International Nuclear Information System (INIS)

    Lee, S Y; Yee, S X; Majid, Z; Setan, H

    2014-01-01

    Assets play an important role in human life, especially to an organization. Organizations strive and put more effort to improve its operation and assets management. The development of GIS technology has become a powerful tool in management as it is able to provide a complete inventory for managing assets with location-based information. Spatial information is one of the requirements in decision making in various areas, including asset management in the buildings. This paper describes a 3D GIS approach for management of assets. An asset management system was developed by integrating GIS concept and 3D model assets. The purposes of 3D visualization to manage assets are to facilitate the analysis and understanding in the complex environment. Behind the 3D model of assets is a database to store the asset information. A user-friendly interface was also designed for more easier to operate the application. In the application developed, location of each individual asset can be easily tracked according to the referring spatial information and 3D viewing. The 3D GIS approach described in this paper is certainly would be useful in asset management. Systematic management of assets can be carried out and this will lead to less-time consuming and cost-effective. The results in this paper will show a new approach to improve asset management

  13. Asset tracking in harsh environments

    International Nuclear Information System (INIS)

    O'Neal, E.S.

    2009-01-01

    Current economic times require tight control of all assets / inventory and processes a company manages. These items if managed correctly and timely can mean the difference between success and failure of a company. Cost savings in hard economic times are essential to allow a company to utilize its assets to the fullest potential by eliminating duplication and waste. Accurate process management leads to greater customer satisfaction and loyalty. Many industries and processes have believed it to be impossible to track their products or assets using bar-codes due to the unique conditions of their environment; whether it is high temperature, rough handling or chemicals. That has now changed. Companies specializing in identification methods have stepped up to the challenge and have overcome many obstacles of the past. It's no longer a paper or plastic bar-code world. The presentation will be broken down into four parts: 1) The differences between Asset and ID tracking; 2) Why does a company need to bar-code?; 3) The objections many companies use for not bar-coding; and, 4) What's new in bar-coding? Case study handouts and a reference list of various companies including software, labeling and attachment techniques will be available at the end of the presentation. (author)

  14. Asset tracking in harsh environments

    Energy Technology Data Exchange (ETDEWEB)

    O' Neal, E.S. [Infosight Corp., Chillicothe, OH (United States)

    2009-07-01

    Current economic times require tight control of all assets / inventory and processes a company manages. These items if managed correctly and timely can mean the difference between success and failure of a company. Cost savings in hard economic times are essential to allow a company to utilize its assets to the fullest potential by eliminating duplication and waste. Accurate process management leads to greater customer satisfaction and loyalty. Many industries and processes have believed it to be impossible to track their products or assets using bar-codes due to the unique conditions of their environment; whether it is high temperature, rough handling or chemicals. That has now changed. Companies specializing in identification methods have stepped up to the challenge and have overcome many obstacles of the past. It's no longer a paper or plastic bar-code world. The presentation will be broken down into four parts: 1) The differences between Asset and ID tracking; 2) Why does a company need to bar-code?; 3) The objections many companies use for not bar-coding; and, 4) What's new in bar-coding? Case study handouts and a reference list of various companies including software, labeling and attachment techniques will be available at the end of the presentation. (author)

  15. Prediction of future asset prices

    Science.gov (United States)

    Seong, Ng Yew; Hin, Pooi Ah; Ching, Soo Huei

    2014-12-01

    This paper attempts to incorporate trading volumes as an additional predictor for predicting asset prices. Denoting r(t) as the vector consisting of the time-t values of the trading volume and price of a given asset, we model the time-(t+1) asset price to be dependent on the present and l-1 past values r(t), r(t-1), ....., r(t-1+1) via a conditional distribution which is derived from a (2l+1)-dimensional power-normal distribution. A prediction interval based on the 100(α/2)% and 100(1-α/2)% points of the conditional distribution is then obtained. By examining the average lengths of the prediction intervals found by using the composite indices of the Malaysia stock market for the period 2008 to 2013, we found that the value 2 appears to be a good choice for l. With the omission of the trading volume in the vector r(t), the corresponding prediction interval exhibits a slightly longer average length, showing that it might be desirable to keep trading volume as a predictor. From the above conditional distribution, the probability that the time-(t+1) asset price will be larger than the time-t asset price is next computed. When the probability differs from 0 (or 1) by less than 0.03, the observed time-(t+1) increase in price tends to be negative (or positive). Thus the above probability has a good potential of being used as a market indicator in technical analysis.

  16. Basis of measurement of assets and liabilities: correlation analysis of years 2006 and 2010

    Directory of Open Access Journals (Sweden)

    Joyce Menezes da Fonseca Tonin

    2013-05-01

    Full Text Available The study aims to identify the measurement bases of accounts Assets and Liabilities evidenced in the Explanatory Notes in 2006 and 2010 of the largest publicly traded Brazilian companies listed in the Revista Exame - Melhores e Maiores de 2011. The descriptive study in a purposive sample of 30 companies used the application of content analysis to categorize the data needed for the inferences and Correspondence Analysis (ANACOR to involve the disclosure of the measurement bases of assets, and liability from 2006 to 2010. The results shown with the χ2 test showed that the items accounting Financial Investments, Stocks and Investment showed no significant difference, having no changes in their measurement bases. The Current Cost prevailed for Financial Applications, Cost History and realizable value for inventories and the Equity Method for Investments, even though this is a method of accounting and not based on measurement of assets. Other accounts differ significantly between the bases of measurement, and the concept of the fair value as a vector of the changes from one period to another. It is concluded that the companies have significantly changed the basis of measurement of the accounts of active and passive from 2006 to 2010, despite the short time of revision of the law nº 6.404/1976.

  17. Smart-grid Investments, Regulation and Organization

    DEFF Research Database (Denmark)

    Agrell, Per J.; Bogetoft, Peter; Mikkers, Misja

    2013-01-01

    Grid infrastructure managers worldwide are facing demands for reinvestments in new assets with higher on-grid and off-grid functionality in order to meet new environmental targets. The roles of the current actors will change as the vertical interfaces between regulated and unregulated tasks become...... blurred. In this paper, we characterize some of the effects of new asset investments policy on the network tasks, assets and costs and contrast this with the assumptions of the current economic network regulation. To provide structure, we present a model of investment provision under regulation between...

  18. Commercial Building Energy Asset Score System: Program Overview and Technical Protocol (Version 1.0)

    Energy Technology Data Exchange (ETDEWEB)

    Wang, Na; Gorrissen, Willy J.

    2013-01-11

    The U.S. Department of Energy (DOE) is developing a national voluntary energy asset score system that includes an energy asset score tool to help building owners evaluate their buildings with respect to the score system. The goal of the energy asset score system is to facilitate cost-effective investment in energy efficiency improvements of commercial buildings. The system will allow building owners and managers to compare their building infrastructure against peers and track building upgrade progress over time. The system can also help other building stakeholders (e.g., building operators, tenants, financiers, and appraisers) understand the relative efficiency of different buildings in a way that is independent from their operations and occupancy. This report outlines the technical protocol used to generate the energy asset score, explains the scoring methodology, and provides additional details regarding the energy asset score tool. This report also describes alternative methods that were considered prior to developing the current approach. Finally, this report describes a few features of the program where alternative approaches are still under evaluation.

  19. Regret Theory and Equilibrium Asset Prices

    Directory of Open Access Journals (Sweden)

    Jiliang Sheng

    2014-01-01

    Full Text Available Regret theory is a behavioral approach to decision making under uncertainty. In this paper we assume that there are two representative investors in a frictionless market, a representative active investor who selects his optimal portfolio based on regret theory and a representative passive investor who invests only in the benchmark portfolio. In a partial equilibrium setting, the objective of the representative active investor is modeled as minimization of the regret about final wealth relative to the benchmark portfolio. In equilibrium this optimal strategy gives rise to a behavioral asset priciting model. We show that the market beta and the benchmark beta that is related to the investor’s regret are the determinants of equilibrium asset prices. We also extend our model to a market with multibenchmark portfolios. Empirical tests using stock price data from Shanghai Stock Exchange show strong support to the asset pricing model based on regret theory.

  20. Cross-sectional consumption-based asset pricing: The importance of consumption timing and the inclusion of severe crises

    DEFF Research Database (Denmark)

    Engsted, Tom; Møller, Stig Vinther

    By using a beginning-of-period timing convention for consumption, and by including the Great Depression years in the analysis, we show that on annual data from 1926 to 2009 a standard contemporaneous consumption risk model goes a long way in explaining the size and value premiums in cross......-sectional data that include both the Fama-French portfolios and industry portfolios. A long run consumption risk variant of the model also produces a high cross-sectional …t. In addition, the equity premium puzzle is signi…cantly reduced in the models. We argue that in evaluating consumption based models...

  1. Influence of time of placement of investments for burnout and the type of rings being used on the casting accuracy.

    Science.gov (United States)

    Shah, Shabir A; Naqash, Talib Amin; Padmanabhan, T V; Subramanium; Lambodaran; Nazir, Shazana

    2014-03-01

    The sole objective of casting procedure is to provide a metallic duplication of missing tooth structure, with as great accuracy as possible. The ability to produce well fitting castings require strict adherence to certain fundamentals. A study was undertaken to comparatively evaluate the effect on casting accuracy by subjecting the invested wax patterns to burnout after different time intervals. The effect on casting accuracy using metal ring into a pre heated burnout furnace and using split ring was also carried. The readings obtained were tabulated and subjected to statistical analysis.

  2. An assessment of the optimal timing and size of investments in concentrated solar power

    International Nuclear Information System (INIS)

    Massetti, Emanuele; Ricci, Elena Claire

    2013-01-01

    We extend the WITCH model to consider the possibility to produce and trade electricity generated by large-scale concentrated solar power plants (CSP) in highly productive areas that are connected to demand centers through High Voltage Direct Current cables. We test the attractiveness of the CSP option by imposing a global cap on Greenhouse gases concentration equal to 535 ppm CO 2 -eq in 2100, with and without constraints to the expansion of nuclear power and IGCC coal with carbon capture and storage (CCS). We find that it becomes optimal to produce with CSP from 2040 and to trade CSP electricity across the Mediterranean from 2050. Therefore projects like DESERTEC seem to be premature. After 2050, CSP electricity shares become significant. CSP has a high stabilization cost option value: depending on the constraints, it ranges between 2.1% and 4.1% of discounted GDP in the Middle East and North Africa (MENA), between 1.1. and 3.4 in China, between 0.2% and 1.2% in the USA, between 0.1 and 1.3% in Eastern Europe and between 0.1 and 0.4% in Western Europe. A moderate level of subsidy to invest more and earlier in CSP might increase welfare. However, large-scale deployment should occur after 2040. We also show that MENA countries have the incentive to form a cartel to sell electricity to Europe at a price higher than the marginal cost. This suggests that a hypothetical Mediterranean market for electricity should be carefully regulated. - Highlights: ► An extensive use of Concentrated Solar Power (CSP) will be optimal after 2050. ► Trade of CSP electricity between MENA and Europe will start in 2050. ► CSP reduces greatly the option value of nuclear power and coal with CCS. ► Learning externalities motivate moderate subsidies for earlier CSP investments. ► MENA countries have the incentive to form a cartel to sell electricity to Europe

  3. Investing in systematic factor premiums

    NARCIS (Netherlands)

    Koedijk, Kees G.; Slager, Alfred M. H.; Stork, P.A.

    In this paper we investigate and evaluate factor investing in the US and Europe for equities and bonds. We show that factor-based portfolios generally produce comparable or better portfolios than market indices. We expand the analysis to other asset classes and factors, work with other optimisation

  4. Investment in capital markets

    OpenAIRE

    Ledenyov, Dimitri O.; Ledenyov, Viktor O.

    2017-01-01

    Investment in Capital Markets creates a strategic vision on the financial capital investment in the capital markets with the aim to get an increased return premium in the short and long time periods. The book is written with a main goal to explain the pros and cons of the financial capital investment in the capital markets, discussing the sophisticated investment concepts and techniques in the simple understandable readable general format language. We would like to highlight the three interes...

  5. Preparing for asset retirement.

    Science.gov (United States)

    Luecke, Randall W; Reinstein, Alan

    2003-04-01

    Statement of Financial Accounting Standards (SFAS) No. 143 requires organizations to recognize a liability for an asset retirement obligation when it is incurred--even if that occurs far in advance of the asset's planned retirement. For example, organizations must recognize future costs associated with medical equipment disposal that carries hazardous material legal obligations.

  6. Essays on asset pricing

    NARCIS (Netherlands)

    Nazliben, Kamil

    2015-01-01

    The dissertation consists of three chapters that represent separate papers in the area of asset pricing. The first chapter studies investors optimal asset allocation problem in which mean reversion in stock prices is captured by explicitly modeling transitory and permanent shocks. The second chapter

  7. Energy intensities, EROIs (energy returned on invested), and energy payback times of electricity generating power plants

    International Nuclear Information System (INIS)

    Weißbach, D.; Ruprecht, G.; Huke, A.; Czerski, K.; Gottlieb, S.; Hussein, A.

    2013-01-01

    The energy returned on invested, EROI, has been evaluated for typical power plants representing wind energy, photovoltaics, solar thermal, hydro, natural gas, biogas, coal and nuclear power. The strict exergy concept with no “primary energy weighting”, updated material databases, and updated technical procedures make it possible to directly compare the overall efficiency of those power plants on a uniform mathematical and physical basis. Pump storage systems, needed for solar and wind energy, have been included in the EROI so that the efficiency can be compared with an “unbuffered” scenario. The results show that nuclear, hydro, coal, and natural gas power systems (in this order) are one order of magnitude more effective than photovoltaics and wind power. - Highlights: ► Nuclear, “renewable” and fossil energy are comparable on a uniform physical basis. ► Energy storage is considered for the calculation, reducing the ERoEI remarkably. ► All power systems generate more energy than they consume. ► Photovoltaics, biomass and wind (buffered) are below the economical threshold

  8. USING RF TECHNOLOGY FOR PROTECTED ASSET TRACKING

    International Nuclear Information System (INIS)

    Younkin, James R.; Pickett, Chris A.; Richardson, Dave; Stinson, Brad J.

    2008-01-01

    The Oak Ridge National Laboratory (ORNL) is working on systems that use a new radio frequency (RF) technology called Rubee to manage and inventory many types of protected assets, including weapons housed in Department of Energy (DOE) armories, tooling, and nuclear material containers. Rubee is being considered for an IEEE Standard, and is used on several projects at ORNL because of its high performance when used in, on, and around metal-an environment that is typical of that found in an armory vault and that of many other protected assets locations within nuclear facilities. The primary objective using Rubee is to supply sustainable technology that provides timely information on the status and location of protected assets. This paper focuses on the results from a deployment of this technology at a DOE armory and discusses the applicability of Rubee for use with other protected assets within nuclear facilities. Key Words: Rubee, low radio frequency, protected assets

  9. Analytical Provision of Management of Intangible Assets

    Directory of Open Access Journals (Sweden)

    Shelest Viktoriya S.

    2013-11-01

    Full Text Available The goal of the article lies in the study of the process of conduct of economic analysis of such a complex product of the innovation and information society as objects of intellectual property, which are accepted in business accounting as intangible assets. All-absorbing integration processes in the economy and large-scale propagation of information technologies influence the capital structure. Thus, accepting intangible assets as a driving factor of competitiveness, enterprises prefer namely these assets, reducing the share of tangible assets. Taking this into account the scientists thoroughly studied the issues of economic analysis of intangible assets, since the obtained data are the main source of accounting and analytical information required for making weighted managerial decisions. At the same time, the issues of authenticity, accuracy, efficiency and transparency of the obtained results become topical. In the process of the study the article shows information content of the accounting and analytical data due to introduction of accounting and conduct of economic analysis of intangible assets. The article considers the modern state of the methods of analysis of intangible assets based on opinions of scientists. It characterises economic and legal state of development of licence agreements in Ukraine. It justifies economic expediency of use of such agreements. It forms the ways of making efficient managerial decisions on use of intangible assets in economic activity of subjects of entrepreneurship.

  10. QUANTITATIVE INDICATORS OF THE SECURITIZATION OF ASSETS

    Directory of Open Access Journals (Sweden)

    Denis VOSTRICOV

    2018-02-01

    Full Text Available Securitization is instrumental in return on capital increment through the withdrawal from the balance oflending activities being accompanied by off-balance incomes flow from fees, which are less capital-intensive. Thepurpose of this paper is to analyze the quantitative indicators characterizing the securitization of assets. For draftingthis article, the method of analysis, synthesis method, logic and dialectic method, normative method, the study ofstatistical sampling and time series of expert evaluations (Standard and Poor’s, personal observations, andmonographic studies have been used. The main difference between the securitization of assets from traditional waysof financing is related to the achievement of a plenty of secondary goals in attracting financial resources, whichcan play a significant role in choosing to favour the securitization of assets or other types of financing. Inparticular, it gives a possibility to write off the assets from the balance sheet along with the relevant obligationsunder the securities, to expand the range of potential investors accompanied by the reducing of credit risk, interestrate and liquidity risk, as well as to improve the management quality of assets, liabilities and risks. All of thesesecondary effects are achieved by the isolation of selected assets from the total credit risk of the enterprise, raisingits funds, which forms the pivotal actuality and significance of asset securitization. The article containsdemonstrations of quantitative and qualitative indicators characterizing the securitization of assets.

  11. Optimal Time-Consistent Investment Strategy for a DC Pension Plan with the Return of Premiums Clauses and Annuity Contracts

    Directory of Open Access Journals (Sweden)

    De-Lei Sheng

    2014-01-01

    Full Text Available Defined contribution and annuity contract are merged into one pension plan to study both accumulation phase and distribution phase, which results in such effects that both phases before and after retirement being “defined”. Under the Heston’s stochastic volatility model, this paper focuses on mean-variance insurers with the return of premiums clauses to study the optimal time-consistent investment strategy for the DC pension merged with an annuity contract. Both accumulation phase before retirement and distribution phase after retirement are studied. In the time-consistent framework, the extended Hamilton-Jacobi-Bellman equations associated with the optimization problem are established. Applying stochastic optimal control technique, the time-consistent explicit solutions of the optimal strategies and the efficient frontiers are obtained. In addition, numerical analysis illustrates our results and also deepens our knowledge or understanding of the research results.

  12. Monetary Policy, Investment and Non-Fundamental Shocks

    OpenAIRE

    Fernando Alexandre

    2002-01-01

    Using a sticky price model with endogenous investment and adjustment costs we analyse the benefits of monetary policy reacting to asset prices, when investment is under the influence of a non-fundamental shock, both for inflation-forecast targeting rules and for Taylor rules. We conclude that in this context there are benefits from reacting to asset prices that result from a more stable output gap, which is the consequence of a much lower volatility in firms’ investment. Howeve...

  13. A framework for considering externalities in urban water asset management.

    Science.gov (United States)

    Marlow, David; Pearson, Leonie; Macdonald, Darla Hatton; Whitten, Stuart; Burn, Stewart

    2011-01-01

    Urban communities rely on a complex network of infrastructure assets to connect them to water resources. There is considerable capital investment required to maintain, upgrade and extend this infrastructure. As the remit of a water utility is broader than just financial considerations, infrastructure investment decisions must be made in light of environmental and societal issues. One way of facilitating this is to integrate consideration of externalities into decision making processes. This paper considers the concept of externalities from an asset management perspective. A case study is provided to show the practical implications to a water utility and asset managers. A framework for the inclusion of externalities in asset management decision making is also presented. The potential for application of the framework is highlighted through a brief consideration of its key elements.

  14. Labor Unions and Asset Prices

    DEFF Research Database (Denmark)

    Busato, Francesco; Addessi, William

    The paper investigates the nexus between labor and financial markets, focusing on the interaction between labor union behavior in setting wages, firms' investment strategy and asset prices. The way unions set wage claims after observing firm's financial performance increases the volatility of firms......' returns and the riskiness of corporate ownership. To remunerate this higher volatility and stronger risk, firms' equities have to grant high return. This mechanism is able to offer an explanation of for the "equity puzzle", that is it can explain the difference between equity returns and the risk free...... rate. It is a welcome result that the simulated excess return is about the empirical estimate and this result is obtained with a logarithmic specification of the shareholders preferences....

  15. Crisis will impact investments

    International Nuclear Information System (INIS)

    Anon.

    2008-01-01

    of supply deterioration. While today's world economic crisis should reduce energy demand, decrease CO 2 emissions and decrease electricity and gas prices, the credit crunch will likely delay the needed investments in infrastructure to replace aging plants or to build new plants, electrical lines and gas pipelines. Also, governments will have less tax revenues and will have to limit their spending, analysts said. They might be tempted to reduce financial subsidies to renewable energies, as did the Spanish government in October 2008, limiting its incentives to solar development. Analysts said such decisions could jeopardize the growth of renewable energies, especially wind and solar, which need subsidies to be financially competitive. Governments could also impose new taxes on certain utilities; for example, windfall profits linked to CO 2 certificates obtained for free and incorporated in the wholesale prices at their market price. Also, many governments may want to protect their citizens' purchasing power by taking measures such as capping electricity prices (as announced by the Belgian minister of Energy in October 2008) or imposing special measures to protect vulnerable customers (as per discussions currently taking place in the U.K.). During the first half of 2008, some long-awaited mergers and acquisitions were closed, in turn triggering acquisitions of the divested assets following these transactions. The crisis should trigger an increased market consolidation, the acquirers being those with solid balance sheets and cash. Analysts said young companies and new entrants with weak balance sheets could be acquired by stronger ones, thus decreasing market competition. Utilities have to quickly adapt to the new landscape by thriving toward operational excellence, analysts said. This means they will have to streamline their internal processes, simplify their organizations and increase their reactivity while continuously benchmarking their results with the 'best in

  16. HARMONIZATION, HISTORICAL COST AND INVESTMENTS

    OpenAIRE

    Valentin Gabriel CRISTEA

    2016-01-01

    Choosing depreciation of assets; revaluation of tangible or keeping their historical cost; registration, whilst the tangible assets are entered in the conservation of amortization expenses or a corresponding adjustment to depreciation expense ascertained; choosing the method of evaluating stocks is accounting policies. IAS 40 is significant because it was the first time the International Accounting Standards Board has introduced a fair value accounting model for non-financial assets. All firm...

  17. Optimal Regulation of Lumpy Investments

    NARCIS (Netherlands)

    Zwart, G.; Broer, D.P.

    2012-01-01

    When a monopolist has discretion over the timing of infrastructure investments, regulation of post-investment prices interferes with incentivizing socially optimal investment timing. In a model of regulated lumpy investment under uncertainty, we study regulation when the regulator can condition

  18. Resource Slack and Propensity to Discount Delayed Investments of Time Versus Money

    Science.gov (United States)

    Zauberman, Gal; Lynch, John G.

    2005-01-01

    The authors demonstrate that people discount delayed outcomes as a result of perceived changes over time in supplies of slack. Slack is the perceived surplus of a given resource available to complete a focal task. The present research shows that, in general, people expect slack for time to be greater in the future than in the present. Typically,…

  19. Socially Responsible Investment in Japanese Pensions

    OpenAIRE

    Henry Hongbo Jin; Olivia S. Mitchell; John Piggott

    2005-01-01

    As the level of retirement-related assets has grown, so too has public and private interest in so-called "Socially Responsible Investment" (SRI), an investment strategy that employs criteria other than the usual financial risk and return factors when selecting firms in which to invest. This study evaluates whether SRI indexes would alter portfolio risk and return patterns for the new defined contribution pension plans currently on offer in Japan. We conclude that SRI funds can be included as ...

  20. Corporate Tax Stimulus and Investment in Colombia

    OpenAIRE

    Galindo, Arturo; Melendez, Marcela

    2010-01-01

    This paper uses a yearly dataset of plant-level investment in Colombian firms during the period 1997 to 2007 to assess the impact of a tax incentive for firms that invest in fixed assets implemented in 2004. A positive and statistically significant correlation is found between the boom observed in investment and the adoption of the tax policy. However, the correlation vanishes when year-specific effects are controlled for. This result is robust to changes in the empirical specification, chang...

  1. THE ANALYSIS OF INVESTMENTS IN AN UNCERTAIN ENVIRONMENT

    Directory of Open Access Journals (Sweden)

    Silviu Cornel Virgil CHIRIAC

    2014-11-01

    Full Text Available The notion of investment is extremely complex, perceived with different meanings and significations. The use of investment strategies in the management activity implies the application of scientific techniques and methods. In order to ensure a constant economic growth it is necessary to prepare investment projects. In practice the predominant one is the investment activity based on real investments performed for the modernising of assets, in order to ensure their physical and moral wear and tear.

  2. Pension fund regulation: Unintended consequences of foreign investment restrictions in an emerging market economy

    Directory of Open Access Journals (Sweden)

    Coert Frederik Erasmus

    2016-12-01

    Full Text Available Retirement savings allow investors to earn income after retirement by saving while being part of the workforce. Retirement savings comprise the largest portion of retirement savings and should be safeguarded by effective regulation. To safeguard retirement savings, exposure to foreign asset investments is limited. However, in an emerging economy, limiting foreign asset investments, especially investment in developed markets, could hamper the potential investment returns due to the translation risk. To assess the effect of translation risk, a preservation provident fund was used in the present study to determine whether the returns of this preservation provident fund would be adversely affected by investment allocation regulation. The findings indicated how the translation effect affected the preservation provident fund, illustrating the adverse unintended consequences of investment regulation in emerging market economies. Consequently, regulators should reconsider the maximum allowed foreign asset investment in pension fund regulations to enhance investment returns from foreign asset investments

  3. Franchise Bidding in the Water Industry- Auction Schemes and Investment Incentives

    OpenAIRE

    Urs Meister

    2004-01-01

    The periodical re-auction of a water monopoly concession causes the danger of underinvestment. If the life-time of specific assets such as water pipes exceeds the contract length and transferring the ownership of assets is difficult, the incumbent franchisee faces a hold-up problem. Using a simple auction model that considers the specifics of the piped water sector this paper shows that investment incentives may vary depending on the applied auction scheme. The model is designed as a two stag...

  4. HARMONIZATION, HISTORICAL COST AND INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Valentin Gabriel CRISTEA

    2016-06-01

    Full Text Available Choosing depreciation of assets; revaluation of tangible or keeping their historical cost; registration, whilst the tangible assets are entered in the conservation of amortization expenses or a corresponding adjustment to depreciation expense ascertained; choosing the method of evaluating stocks is accounting policies. IAS 40 is significant because it was the first time the International Accounting Standards Board has introduced a fair value accounting model for non-financial assets. All firms must provide fair value for their real estate assets either directly in the balance sheet in accordance with the fair value model choice, either in the footnotes below cost model selection.

  5. IT Asset Management System -

    Data.gov (United States)

    Department of Transportation — ITAMS provides a web frontend for the managing of all HW Assets lifecycle data purchased by ATO since 2006. In addition it contains much of our Enterprise SW license...

  6. Asset Inventory Database

    Data.gov (United States)

    US Agency for International Development — AIDM is used to track USAID assets such as furniture, computers, and equipment. Using portable bar code readers, receiving and inventory personnel can capture...

  7. Managing terminology assets in Electronic Health Records.

    Science.gov (United States)

    Abrams, Kelly; Schneider, Sue; Scichilone, Rita

    2009-01-01

    Electronic Health Record (EHR)systems rely on standard terminologies and classification systems that require both Information Technology (IT) and Information Management (IM) skills. Convergence of perspectives is necessary for effective terminology asset management including evaluation for use, maintenance and intersection with software applications. Multiple terminologies are necessary for patient care communication and data capture within EHRs and other information management tasks. Terminology asset management encompasses workflow and operational context as well as IT specifications and software application run time requirements. This paper identifies the tasks, skills and collaboration of IM and IT approaches for terminology asset management.

  8. Market for oil and gas assets defined in survey

    International Nuclear Information System (INIS)

    Taggart, L.; Murry, D.A.

    1991-01-01

    This paper reports that hundreds of companies are currently active in the oil and gas acquisition and disposition marketplace, but unfortunately, the entire sale process within the industry continues to operate inefficiently. The mechanism for selling oil and gas properties in this secondary market - as used here, a term that excludes initial investments in oil and gas assets and sales of drilling program shares - is sort of catch-as-catch- can. Identifying who is seeking what type of property at any time is difficult, bordering on guesswork. A recent survey of 186 company representatives and individuals, who declared themselves as in the market, disclosed some of this information at a point in time

  9. Solar Asset Management Software

    Energy Technology Data Exchange (ETDEWEB)

    Iverson, Aaron [Ra Power Management, Inc., Oakland, CA (United States); Zviagin, George [Ra Power Management, Inc., Oakland, CA (United States)

    2016-09-30

    Ra Power Management (RPM) has developed a cloud based software platform that manages the financial and operational functions of third party financed solar projects throughout their lifecycle. RPM’s software streamlines and automates the sales, financing, and management of a portfolio of solar assets. The software helps solar developers automate the most difficult aspects of asset management, leading to increased transparency, efficiency, and reduction in human error. More importantly, our platform will help developers save money by improving their operating margins.

  10. Prudent management of utility assets -- Problem or promise?

    International Nuclear Information System (INIS)

    Hatch, D.; Serwinowski, M.

    1998-01-01

    As utilities move into a deregulated market, the extent and nature of their asset base, as well as, the manner in which they have managed it, may play a key factor in the form of regulatory recovery. Utilities must face the issue of stranded assets. One form of addressing this issue is using ''EVA'', Economic Value Added as a mechanism to form financial models for prudent asset management. The authors present an approach to this challenging aspect of deregulation. They focus on the following utility assets: buildings/facilities, and excess real physical assets. Primarily focusing on Niagara Mohawk, two or three case studies are used to demonstrate how proactive management and EVA analysis transforms underperforming utility assets. These will be presented in a way that can show benefits for all utility stakeholders such as cost avoidance, load growth, real estate tax savings, stranded asset reductions, environmental gains, corporate image enhancement, and regulatory/governmental gains; over and above possible economic gains. Examples will be given that include the transformation of utility assets into award winning commercial, residential, and industrial developments as well as recreational/park lands and greenways. Similarly, other examples will show the many tangible and intangible benefits of an effective investment recovery and waste stream management program. Various strategies will also be presented that detail how utilities can begin to develop a total comprehensive plan for their asset portfolio. The first step in realizing and maximizing EVA towards a portfolio of assets is a change in corporate policy--one from passive ownership to active prudent management. Service and cost will drive competition resulting from full deregulation. To drive down costs, utilities will need to become more efficient in dealing with their asset base. By embracing an EVA model on an entire asset portfolio, utilities can prepare and excel in the newly shaped marketplace

  11. Optimal Cycle Time and Preservation Technology Investment for Deteriorating Items with Price-sensitive Stock-dependent Demand Under Inflation

    Science.gov (United States)

    Shah, Nita H.; Shah, Arpan D.

    2014-04-01

    The article analyzes economic order quantity for the retailer who has to handle imperfect quality of the product and the units are subject to deteriorate at a constant rate. To control deterioration of the units in inventory, the retailer has to deploy advanced preservation technology. Another challenge for the retailer is to have perfect quality product. This requires mandatory inspection during the production process. This model is developed with the condition of random fraction of defective items. It is assumed that after inspection, the screened defective items are sold at a discounted rate instantly. Demand is considered to be price-sensitive stock-dependent. The model is incorporating effect of inflation which is critical factor globally. The objective is to maximize profit of the retailer with respect to preservation technology investment, order quantity and cycle time. The numerical example is given to validate the proposed model. Sensitivity analysis is carried out to work out managerial issues.

  12. 77 FR 60732 - PACE Select Advisors Trust and UBS Global Asset Management (Americas) Inc.; Notice of Application

    Science.gov (United States)

    2012-10-04

    ....; Institutional Capital, LLC; J.P. Morgan Investment Management, Inc.; Kayne Anderson Rudnick Investment...; Standish Mellon Asset Management Company, LLC; Systematic Financial Management, L.P.; Wellington Management... Select Advisors Trust and UBS Global Asset Management (Americas) Inc.; Notice of Application September 27...

  13. Arbitrage Pricing, Capital Asset Pricing, and Agricultural Assets

    OpenAIRE

    Louise M. Arthur; Colin A. Carter; Fay Abizadeh

    1988-01-01

    A new asset pricing model, the arbitrage pricing theory, has been developed as an alternative to the capital asset pricing model. The arbitrage pricing theory model is used to analyze the relationship between risk and return for agricultural assets. The major conclusion is that the arbitrage pricing theory results support previous capital asset pricing model findings that the estimated risk associated with agricultural assets is low. This conclusion is more robust for the arbitrage pricing th...

  14. 76 FR 29147 - Federal Home Loan Bank Investments

    Science.gov (United States)

    2011-05-20

    ...-AA32 Federal Home Loan Bank Investments AGENCY: Federal Housing Finance Agency; Federal Housing Finance...-adopting existing investment regulations that apply to the Federal Home Loan Banks (Banks) and that were...' investment in mortgage-backed securities (MBS) and certain asset-backed securities (ABS) that were previously...

  15. Accounting of Long-Term Biological Assets

    OpenAIRE

    Valeriy Mossakovskyy; Vasyl Korytnyy

    2015-01-01

    The article is devoted to generalization of experience in valuation of long-term biological assets of plant-growing and animal-breeding, and preparation of suggestions concerning improvement of accounting in this field. Recommendations concerning accounting of such assets are given based on the study of accounting practice at specific agricultural company during long period of time. Authors believe that fair value is applicable only if price level for agricultural products is fixed by the gov...

  16. Asset Pricing - A Brief Review

    OpenAIRE

    Li, Minqiang

    2010-01-01

    I first introduce the early-stage and modern classical asset pricing and portfolio theories. These include: the capital asset pricing model (CAPM), the arbitrage pricing theory (APT), the consumption capital asset pricing model (CCAPM), the intertemporal capital asset pricing model (ICAPM), and some other important modern concepts and techniques. Finally, I discuss the most recent development during the last decade and the outlook in the field of asset pricing.

  17. Rational Asset Pricing Bubbles Revisited

    OpenAIRE

    Jan Werner

    2012-01-01

    Price bubble arises when the price of an asset exceeds the asset's fundamental value, that is, the present value of future dividend payments. The important result of Santos and Woodford (1997) says that price bubbles cannot exist in equilibrium in the standard dynamic asset pricing model with rational agents as long as assets are in strictly positive supply and the present value of total future resources is finite. This paper explores the possibility of asset price bubbles when either one of ...

  18. Investment innovation trends: Factor-based investing

    Directory of Open Access Journals (Sweden)

    Sanja Centineo

    2017-05-01

    Full Text Available This article shows that it can take a long period of time until research knowledge finds its application in practice and get disseminated as innovation trend. Factor-based investing is such an example. Having its developing roots in the nineties, it took more than two decades until this approach was detected by the by investment community. The goal of this article is to recall the definition of factor investing, present its historical evolvement and motivate its recent break-through and current trend among investment practitioners (known also under the notion smart beta. It aims at familiarizing with this investment approach from a practical perspective and highlighting its diversifying benefits in a portfolio context with the potential to outperform the market on risk-adjusted basis.

  19. Socially Responsible Investing

    DEFF Research Database (Denmark)

    Parisi, Cristiana; Stang, Andreas

    This paper analyzes the Scandinavian market for Socially Responsible Investing (SRI) mutual funds in order to determine the returns from discriminatory investment decision compared to the return from conventional portfolios. The analysis is conducted on 642 Scandinavian equity mutual funds...... counterparts. In the case of Norway no statistical difference in return is found when conducting the three factor regression. The Scandinavian market is considered particularly relevant for the interest of the investors in SRI mutual funds. However, to the authors’ knowledge, this is the first study to present....... The methodology adopts the Sharpe ratio to establish the risk return relationship. Moreover, the Capital Asset Pricing Model (CAPM) and the Fama and French Three Factor model are used to test the hypotheses. The results indicate the underperformance of Swedish and Danish SRI funds relative to their conventional...

  20. 26 CFR 1.338-7 - Allocation of redetermined ADSP and AGUB among target assets.

    Science.gov (United States)

    2010-04-01

    ...: Asset class Asset Fair market value V Building $ 100 V Stock of X (not a target) 200 Total 300 (B) T has... target assets. 1.338-7 Section 1.338-7 Internal Revenue INTERNAL REVENUE SERVICE, DEPARTMENT OF THE... redetermined ADSP and AGUB among target assets. (a) Scope. ADSP and AGUB are redetermined at such time and in...

  1. Does Money Grow on Trees? The Diversification Properties of US Timberland Investments

    NARCIS (Netherlands)

    Scholtens, Bert; Spierdijk, Laura

    This paper quantifies the diversification potential of timberland investments in a meanvariance framework. The starting point is a broad set of benchmark assets represented by various indexes. Including publicly traded timberland investments in the portfolio does not significantly increase

  2. AN INVESTIGATION INTO THE SIGNIFICANT IMPACTS OF AUTOMATION IN ASSET MANAGEMENT

    Directory of Open Access Journals (Sweden)

    Benjamin L. Britton

    2017-03-01

    Full Text Available This paper explores the implications of applying automation, a technological force in which computer systems can fulfill human tasks, into the asset management industry. The investigation explores a number of significant topics in which managers should begin contemplating, including workforce origination post automation, the primary skills necessary to facilitate augmentation, and how robo advisors could challenge an organization’s value proposition. The investigation was centered on Jupiter Asset Management (JAM to support their preparations for automation, as well as to provide insight from the ‘grass roots’. Research centered on interviews with experienced individuals within automative and asset management. The findings identify that current entry level occupations with systematic, repetitive tasks in a fixed domain, will be automated. Placing a greater demand for analytical abilities in junior recruits as the cognitive understanding of what data represents is a weakness of artificial intelligence (AI thus strengthening augmentation between employees and technology. Automated investment profilers known as robo advisors will challenge the value proposition of organizations, such as JAM, which in time will need to be onboard with the technology to remain competitive within a growing millennial market. The paper concludes that there is an evident need for asset management firms to design training processes that blend enhanced senior level shadowing, with programmes focused on broadening juniors’ abilities to interpret and apply AI generated data through a series of newly identified skills.

  3. Implementace Asset managementu

    OpenAIRE

    Fuxa, Lukáš

    2016-01-01

    Tato diplomová práce obsahuje návrh implementace Asset managementu do ServiceNow v nejmenované nadnárodní společnosti. Cílem diplomové práce je analýza požadavku společnosti a nalezení vhodného řešení implementace Asset managementu v rámci stávajících nástrojů. Závěrem zhodnotím, zda je možné vybraný nástroj využít. This master’s thesis contains proposal to implementation Asset management to ServiceNow in unnamed multinational company. The aim of this master’s thesis is analysis of company...

  4. Using an inflation-augmented price-earnings ratio to guide tactical asset allocation

    OpenAIRE

    Adrian Saville

    2011-01-01

    Asset allocation plays a central role in determining investment outcomes, and available evidence shows that portfolio results can be enhanced through tactical asset allocation if managers use the simple price-earnings ratio as a predictor of equity returns. Recently, some international evidence has emerged which shows that, by augmenting the price-earnings metric with information about consumer price inflation, further enhancements can be achieved in tactical asset allocation.  This study rev...

  5. Modeling energy technology choices. Which investment analysis tools are appropriate?

    International Nuclear Information System (INIS)

    Johnson, B.E.

    1994-01-01

    A variety of tools from modern investment theory appear to hold promise for unraveling observed energy technology investment behavior that often appears anomalous when analyzed using traditional investment analysis methods. This paper reviews the assumptions and important insights of the investment theories most commonly suggested as candidates for explaining the apparent ''energy technology investment paradox''. The applicability of each theory is considered in the light of important aspects of energy technology investment problems, such as sunk costs, uncertainty and imperfect information. The theories addressed include the capital asset pricing model, the arbitrage pricing theory, and the theory of irreversible investment. Enhanced net present value methods are also considered. (author)

  6. Real Estate Investments, Regulation, and Financial Intermediation

    OpenAIRE

    Heinrich, Michael

    2018-01-01

    Real estate as an asset class can deliver high risk-adjusted returns, which are also low-correlated to the returns of other asset classes, such as stocks and bonds. According to the literature, a well-diversified mixed-asset portfolio should therefore comprise between 10% and 30% of real estate. This holds true for large and medium-sized institutional investors, but also for small retail investors (private investors). However, direct real estate proves to be an unsuitable investment for the v...

  7. 26 CFR 1.806-3 - Certain changes in reserves and assets.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 8 2010-04-01 2010-04-01 false Certain changes in reserves and assets. 1.806-3 Section 1.806-3 Internal Revenue INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Investment Income § 1.806-3 Certain changes in reserves and assets. (a...

  8. Asset Management Costs and Financial Performance of Dutch Pension Funds in 2011-2014

    NARCIS (Netherlands)

    Hollanders, David

    2016-01-01

    The costs of Dutch pension funds have increased in the last decades. The costs, as a percentage of assets invested, doubled between 1992-2009. In 2014 total costs equalled 6.3 billion euro, or 19.6% of annual contributions. Asset management is the largest component of costs. Pension funds claim that

  9. 401(k) plan asset allocation, account balances, and loan activity in 2008.

    Science.gov (United States)

    VanDerhei, Jack; Holden, Sarah; Alonso, Luis

    2009-10-01

    Because 401(k) balances can fluctuate with market returns from year to year, meaningful analysis of 401(k) plans must examine how participants' accounts have performed over the long term. Looking at consistent participants in the EBRI/ICI 401(k) database over the five-year period from 2003 to 2008 (which included one of the worst bear markets for stocks since the Great Depression), the study found: After rising in 2003 and for the next four consecutive years, the average 401(k) retirement account fell 24.3 percent in 2008. The average 401(k) account balance moved up and down with stock market performance, but over the entire five-year time period increased at an average annual growth rate of 7.2 percent, attaining $86,513 at year-end 2008. The median (mid-point) 401(k) account balance increased at an average annual growth rate of 11.4 percent over the 2003-2008 period to $43,700 at year-end 2008. THE BULK OF 401(K) ASSETS CONTINUED TO BE INVESTED IN STOCKS. On average, at year-end 2008, 56 percent of 401(k) participants' assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Forty-one percent was in fixed-income securities such as stable-value investments and bond and money market funds. THREE-QUARTERS OF 401(K) PLANS INCLUDED LIFECYCLE FUNDS IN THEIR INVESTMENT LINEUP AT YEAR-END 2008. At year-end 2008, nearly 7 percent of the assets in the EBRI/ICI 401(k) database were invested in lifecycle funds and 31 percent of 401(k) participants held lifecycle funds. Also known as "target-date" funds, they are designed to simplify investing and automate account rebalancing. NEW EMPLOYEES CONTINUED TO USE BALANCED FUNDS, INCLUDING LIFECYCLE FUNDS. Across all age groups, more new or recent hires invested their 401(k) assets in balanced funds, including lifecycle funds. At year-end 2008, 36 percent of the account balances of recently hired participants in their 20s were invested in balanced funds, compared with

  10. 401(k) plan asset allocation, account balances, and loan activity in 2007.

    Science.gov (United States)

    VanDerhei, Jack; Holden, Sarah; Alonso, Luis; Copeland, Craig

    2008-12-01

    The bulk of 401(k) assets continued to be invested in stocks. On average, at year-end 2007, about two-thirds of 401(k) participants' assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. About one-third was in fixed-income securities such as stable value investments and bond and money market funds. Although these relative shares have changed little over the past 12 years, the underlying fund composition has changed over time. About two-thirds of 401(k) plans included lifecycle funds in their investment lineup at year-end 2007. New analysis shows that at year-end 2007, more than 7 percent of the assets in the EBRI/ICI database were invested in lifecycle funds and one-quarter of 401(k) participants held lifecycle funds. Also known as "target date" funds, they are designed to simplify investing and automate account rebalancing. New employees continued to utilize balanced funds, including lifecyclefunds. Across all age groups, more new or recent hires invested their 401(k) assets in balanced funds, including lifecycle funds. At year-end 2007, 28 percent of the account balances of recently hired participants in their 20s were invested in balanced funds, compared with 24 percent in 2006, 19 percent in 2005, and about 7 percent in 1998. At year-end 2007, almost 19 percent of the account balances of recently hired participants in their 20s were invested in lifecycle funds compared with 16 percent at year-end 2006. 401(k) participants continued to seek diversification of their investments. The share of 401(k) accounts invested in company stock continued to shrink, falling by 0.5 percentage point (to 10.6 percent) in 2007. That continued a steady decline that started in 1999. Recently hired 401(k) participants contributed to this trend: they were less likely to hold employer stock. Participants' 401(k) loan activity was stable. In 2007, 18 percent of all 401(k) participants eligible for loans had a loan

  11. 401(k) plan asset allocation, account balances, and loan activity in 2009.

    Science.gov (United States)

    VanDerhei, Jack; Holden, Sarah; Alonso, Luis

    2010-11-01

    CONSISTENT SAMPLE: Because 401(k) balances can fluctuate with market returns from year to year, meaningful analysis of 401(k) plans must examine how participants' accounts have performed over the long term. Looking at consistent participants in the EBRI/ICI 401(k) database over the six-year period from 2003 to 2009 (which included one of the worst bear markets for stocks since the Great Depression), the study found: After rising in 2003 and for the next four consecutive years, the average 401(k) retirement account fell 27.8 percent in 2008, before rising 31.9 percent in 2009. The average 401(k) account balance moved up and down with stock market performance, but over the entire six-year time period increased at an average annual growth rate of 10.5 percent, attaining $109,723 at year-end 2009. The median (or midpoint, half above and half below) 401(k) account balance increased at an average annual growth rate of 14.7 percent over the 2003-2009 period to $59,381 at year-end 2009. THE BULK OF 401(K) ASSETS CONTINUED TO BE INVESTED IN STOCKS: On average, at year-end 2009, 60 percent of 401(k) participants' assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Thirty-six percent was in fixed-income securities such as stable-value investments and bond and money funds. MORE THAN THREE-QUARTERS OF 401(K) PLANS INCLUDED TARGET-DATE FUNDS IN THEIR INVESTMENT LINEUP AT YEAR-END 2009: At year-end 2009, nearly 10 percent of the assets in the EBRI/ICI 401(k) database was invested in target-date funds and 33 percent of 401(k) participants held target-date funds. Also known as lifecycle funds, they are designed to simplify investing and to automate account rebalancing. NEW EMPLOYEES CONTINUED TO USE BALANCED FUNDS, INCLUDING TARGET-DATE FUNDS: Across all but the oldest age group, more new or recent hires invested their 401(k) assets in balanced funds, including target-date funds. At year-end 2009, about 42 percent

  12. Asset Allocation and Diversification by Real Estate Sector Within a Portfolio: Two Australian Case Studies

    OpenAIRE

    Mike Wallace

    1992-01-01

    The research results presented in this paper are a subset of a more extensive investigation of asset allocation and investment diversification in a pooled or mixed asset portfolio including bonds, equities and real estate in real property form, and listed and unlisted property trusts as they are termed in Australia. Australian property trusts are analogous to Real Estate Investment Trusts (REITs) in the United States. This empirical research study is exploratory in nature, and concentrates sp...

  13. Historical development of derivatives’ underlying assets

    Directory of Open Access Journals (Sweden)

    Sylvie Riederová

    2011-01-01

    Full Text Available The derivative transactions are able to eliminate the unexpected risk arising from the price volatility of the asset. The need for risk elimination relates to the application of derivatives.This paper is focused on derivatives’ underlying assets themselves. With the plain description, supported by progressive summarization, the authors analysed the relevant theoretical sources, dealt with derivatives, their underlying assets and their development in centuries. Starting in the ancient history, 2000 BC, the first non-standard transaction, very close to today’s understanding of derivatives, becomes to be closed between counterparties. During the time, in different kingdoms and emporiums, derivatives started to play a significant role in daily life, helping to reduce the uncertainty of the future. But the real golden era for derivatives started with the so called ‘New derivative markets’ and computer supported trading. They have extended their form from simple tools to most complex structures, without changing their main purpose hedging and risk – reduction.For the main purpose of this paper it is impossible to split the development of derivatives from the very wide extension of underlying assets. The change of these assets was one of the main drivers in derivatives development. Understanding of the dynamic character of these assets helps to understand the world of derivatives.

  14. Transportation investment and GDP, some concepts, data, and analysis

    Science.gov (United States)

    2004-01-01

    This report provides statistics on capital investment by sector (government, private business, and households), asset type (infrastructure, rolling stock, and other equipment used by transportation industries), and by mode of transportation (air, hig...

  15. Hotels as a Property Asset Class: International and South African ...

    African Journals Online (AJOL)

    This article contributes to an understanding – presently undeveloped – of the production of hospitality spaces in South Africa, and in particular examines the country's growing hotel sector. The specific focus is upon the hotel as a form of property investment and the hotel sector as a specific property asset class. Against the ...

  16. A comparative analysis of returns of various financial asset classes ...

    African Journals Online (AJOL)

    kirstam

    2014-12-09

    Dec 9, 2014 ... returns on all asset classes should conceptually more or less converge. The results from ..... Based on monthly means, clearly cash underperforms both equities and bonds as might be ..... valuation models. Conclusion ... does not explore the complexities of the risk-parity style of investment, which is left for.

  17. Education and Asset Composition.

    Science.gov (United States)

    Bradley, Michael G.; Graham, John W.

    1988-01-01

    Investigates the relationship between educational attainment and married couples' efficiency at managing their assets. Using 1976 data, this study of over 750 Illinois couples disclosed little empirical evidence that education imparts efficiency to the realm of personal finance. Includes 6 tables, 5 notes, and 17 references. (MLH)

  18. Asset Opacity and Liquidity

    NARCIS (Netherlands)

    Stenzel, A.; Wagner, W.B.

    2013-01-01

    Abstract: We consider a model of private information acquisition in which the cost of information depends on an asset's opacity. The model generates a hump-shaped relationship between opacity and the equilibrium amount of private information. In particular, the incentives to acquire information are

  19. Managing intangible assets

    NARCIS (Netherlands)

    Schoemaker, M.J.R.; Jonker, J.

    2005-01-01

    - Purpose – To develop a concept of managing intangible assets in contemporary organisations. Insight is given into the rise of the network organisation and the importance of talent, social capital and identity in this kind of organisation. - Design/methodology/approach – This paper develops a

  20. Pension plan asset valuation

    OpenAIRE

    Owadally, M. I; Haberman, S.

    2001-01-01

    Various asset valuation methods are used in the context of funding valuations. The motivation for such methods and their properties are briefly described. Some smoothed value or market-related methods based on arithmetic averaging and exponential smoothing are considered and their effect on funding is discussed. Suggestions for further research are also made.

  1. Probabilistic Cash Flow-Based Optimal Investment Timing Using Two-Color Rainbow Options Valuation for Economic Sustainability Appraisement

    Directory of Open Access Journals (Sweden)

    Yonggu Kim

    2017-10-01

    Full Text Available This research determines the optimal investment timing using real options valuation to support decision-making for economic sustainability assessment. This paper illustrates an option pricing model using the Black-Scholes model applied to a case project to understand the model performance. Applicability of the project to the model requires two Monte Carlo simulations to satisfy a Markov process and a Wiener process. The position of project developers is not only the seller of products, but it is also the buyer of raw materials. Real options valuation can be influenced by the volatility of cash outflow, as well as the volatility of cash inflow. This study suggests two-color rainbow options valuation to overcome this issue, which is demonstrated for a steel plant project. The asymmetric results of the case study show that cash outflow (put option influences the value of the steel plant project more than cash inflow (call option does of which the discussion of the results is referred to a sensitivity analysis. The real options valuation method proposed in this study contributes to the literature on applying the new model, taking into consideration that investors maximize project profitability for economic sustainable development.

  2. Home Bias and Dutch Pension Funds’ Investment behaviour

    NARCIS (Netherlands)

    Verschoor, W.F.C.; Rubbaniy, G.; Lelyveld van, I.P.P.

    2014-01-01

    Using a panel data set of more than 600 Dutch pension funds (PFs) between 1992 and 2006, we investigate asset allocation behavior of Dutch PFs across multiple asset classes. We find that domestic investments, also known as home bias, in portfolio choices of Dutch institutional investors have fallen.

  3. ISO 55001 STANDART IN ASSET MANAGEMENT AND THE ROLE OF INFORMATION TECHNOLOGIES

    Directory of Open Access Journals (Sweden)

    İsa COŞKUN

    2017-09-01

    Full Text Available Asset management is an area of reseach which isimportant for any business that desires to obtain value from assets, and it has become an international standard with the ISO 55000 Asset Management Standard Series published in 2014. With the developing technology, assets reached high material values and resulted in significant investments for businesses. Therefore using assets effectively during their lifecycles has become a necessity for sustainable businesses. In this study, importance of asset management standards and the role of information technologies in managing related processes have been discussed in detail by conducting a comprehensive literature review. Considering that the ISO 55000 standard series are still very recent and there are limited number of companies with certification in Turkey, the study contributes to asset management literature bu simultaneously handling both the systems and information technology perspectives.

  4. Applying the Theory of the Firm to Examine a Technology Startup at the Investment Stage

    Directory of Open Access Journals (Sweden)

    Michael Ayukawa

    2012-05-01

    Full Text Available The investment stage of a new technology firm is when resources, opportunities, investors, and early customers first converge. Currently, technology entrepreneurs make many expensive mistakes. They invest in assets and develop capabilities that prove to have limited value. They take too long to discover and validate the product-market fit for their firms during the investment stage and run out of time and money. Understanding how theory can help entrepreneurs make decisions during the investment stage is important to accelerate new-firm formation and growth as well as to reduce the uncertainty of founders and stakeholders of technology firms. This article introduces a model developed to examine deal making during the investment stage of a new technology firm. It is an extension of a model of lateral firm scope proposed by Oliver Hart and Bengt Holmstrom. The extensions come from considering a technology firm as being both a deal-making entity and a pool of resources during the investment stage. A deal is the result of a decision the entrepreneur and others make to coordinate (i.e., work together to achieve a common objective. Benefits from a deal include cash profits for the firm and private benefits for the entrepreneur. This extended model is then applied to examine the author’s firm which is still in the investment stage. Application of the extended model to a real-life situation generated two important insights: i when private benefits include learning from experimentation, the number of deals increases and ii at the start of the investment stage, private benefits drive deal-making, whereas at the end of the investment stage, cash profits derived from asset ownership drive deal-making.

  5. Perlakuan Akuntansi Sumber Daya Manusia: Assets Sekaligus Investor Bagi Perusahaan

    Directory of Open Access Journals (Sweden)

    Sri Ningsih

    2015-12-01

    Full Text Available Human resources or called employee as a company asset to be one determinant of the success of the company (organization. Issue growing is that labor (human resources is not only the company's assets but also as owners and investors on its human capital to be invested in the company where he works (at work. This article tries to see how human resources can be considered as an asset for the company and when human resources can act as an investor of its human capital. This article also discusses the accounting treatment of human resources as company assets and the possibility of counting on human resources as human capital investor.    

  6. Managing Uncertainty and Risk in Public-sector Investments

    Science.gov (United States)

    2007-04-30

    private sector, Capital Asset Pricing Models ( CAPM ) models provide valuation tools, of which the Black-Scholes equation is the most well known and...maximized mean of discounted cash flows on the assumption that the risk to underlying investment options can be replicated by assets in a financial... assumptions seldom apply for large-scale infra-modernization programs, in either the public or the private sector. In addition, NPV investment is

  7. RISK MANAGEMENT OF INVESTMENT PORTFOLIO BY FUTURE

    Directory of Open Access Journals (Sweden)

    K. Kerimov Alexandr

    2017-01-01

    Full Text Available The article considers the problem of the dynamic risk management of the investment portfolio using future con- tracts. The management starts with the concept of effective inhomogeneous portfolios, which contain futures together with underlying asserts. The effective portfolios are defined as the ones of the minimal dispersion with the expected return greater or equal to the specified value. Risk is measured by the probability of losing of a certain part of the portfolio value. The control parameters are the number of futures for each asset of portfolio, which is defined from the condition of effec- tiveness of portfolio and risk acceptability on each step.The effective adaptive strategies of portfolio risk management together with comparative analysis on a concrete example are presented. The proposed approach provides the forecast correction of the expected income and its variance for the assets with the emergence of new data. The financial time series are determined by volatility clustering, i.e. relative or absolute price changes tend to keep high or low magnitude for some time, with the result that clusters are created - periods of high or low volatility. Then adaptive estimate of correlational relationships between asset prices are essential because the degree of correlational relationship also changes in time. So the correlation of future and spot price changes considerably increases while approaching to performance of contracts. For taking into account of data instability of dispersion and correlation simple methods of volatility forecasting and correlation of relative changes of price data based on exponential smoothing are implemented.

  8. Identification, Analysis, Modeling and Prediction of Time Series Characterizing the Indicators of Asset Structure in the Credit Institutions Operating in Romania

    Directory of Open Access Journals (Sweden)

    Daniel CALINICA

    2012-08-01

    Full Text Available This paper aims to accurately characterize the dynamics of the structural indicators of the assets in the credit institutions operating in Romania through an empirical mathematical model of dual function: regulation and control. The model can be used to predict the future evolution of the economic processes involved, or to study how to act upon them (management in case of changes in the environment around them (e.g. the impact of reducing the minimum compulsory reserve requirements on credit etc.

  9. 75 FR 47036 - Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940

    Science.gov (United States)

    2010-08-04

    ...) 551-6810, SEC, Division of Investment Management, Office of Investment Company Regulation, 100 F... connection with the liquidation were paid by Ironwood Investment Management, LLC, applicant's investment... liquidation were paid by Van Kampen Asset Management, applicant's investment adviser. Filing Dates: The...

  10. 75 FR 80865 - Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940

    Science.gov (United States)

    2010-12-23

    ..., SEC, Division of Investment Management, Office of Investment Company Regulation, 100 F Street, NE... Investment Counsel, LLC and Jacob Asset Management of New York, LLC, applicant's investment advisers. Filing... incurred in connection with the reorganization were paid by AFBA Investment Management Company, applicant's...

  11. INNOVATION IN ACCOUNTING BIOLOGIC ASSETS

    OpenAIRE

    Stolуarova M. A.; Shcherbina I. D.

    2016-01-01

    The article describes the innovations in the classification and measurement of biological assets according to IFRS (IAS) 41 "Agriculture". The difficulties faced by agricultural producers using standard, set out in article. The classification based on the adopted amendments, according to which the fruit-bearing plants, previously accounted for as biological assets are measured at fair value are included in the category of fixed assets. The structure of biological assets and main means has bee...

  12. The Impact of a Holistic Conditional Cash Transfer Program in New York City on Parental Financial Investment, Student Time Use, and Educational Processes and Outcomes

    Science.gov (United States)

    Aber, J. Lawrence; Morris, Pamela; Wolf, Sharon; Berg, Juliette

    2016-01-01

    This article examines the impacts of Opportunity New York City-Family Rewards, the first holistic conditional cash transfer (CCT) program evaluated in the United States, on parental financial investments in children, and high school students' academic time use, motivations and self-beliefs, and achievement outcomes. Family Rewards, launched by the…

  13. Development of methodology of financial assets accounting in IFRS context

    Directory of Open Access Journals (Sweden)

    V.I. Tsurkanu

    2018-04-01

    Full Text Available In the innovation economy the proportion of resources directed to investment is significantly increasing and therefore the process becomes an integral part of the economic activities of modern organizations. In that situation the organization acquire another type of assets called financial, which differ in their characteristics from tangible and intangible assets. The authors of the present study firstly prove the need for economic interpretation of the financial assets and allocation in the balance their own positions, after the recognition, on the basis of the characteristic of such assets and for accounting and reporting should be assessed. In this context, we reveal methods that can choose the organizations, using business management models implemented by IFRS 9 «Financial instruments» for evaluation of financial assets, depending on their category. Special attention is paid to improving the methodology of accounting for financial assets in accordance with their specific characteristics of recognition and measurement. These issues are investigated not only in theoretical terms, but also on the basis of the comparison of normative and legislative acts of the Republic of Moldova and Ukraine with the regulations of IFRS. In addition, whereas the accounting systems and financial reporting in these countries change in accordance with the requirements of the Directive 2013/34/EU, their impact on the accounting of financial assets is also taken into account. According to the results of the research, drafting conclusions and suggestions are of theoretical nature and are of practical importance.

  14. Commercial Building Energy Asset Rating Program -- Market Research

    Energy Technology Data Exchange (ETDEWEB)

    McCabe, Molly J.; Wang, Na

    2012-04-19

    Under contract to Pacific Northwest National Laboratory, HaydenTanner, LLC conducted an in-depth analysis of the potential market value of a commercial building energy asset rating program for the U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy. The market research objectives were to: (1) Evaluate market interest and need for a program and tool to offer asset rating and rapidly identify potential energy efficiency measures for the commercial building sector. (2) Identify key input variables and asset rating outputs that would facilitate increased investment in energy efficiency. (3) Assess best practices and lessons learned from existing national and international energy rating programs. (4) Identify core messaging to motivate owners, investors, financiers, and others in the real estate sector to adopt a voluntary asset rating program and, as a consequence, deploy high-performance strategies and technologies across new and existing buildings. (5) Identify leverage factors and incentives that facilitate increased investment in these buildings. To meet these objectives, work consisted of a review of the relevant literature, examination of existing and emergent asset and operational rating systems, interviews with industry stakeholders, and an evaluation of the value implication of an asset label on asset valuation. This report documents the analysis methodology and findings, conclusion, and recommendations. Its intent is to support and inform the DOE Office of Energy Efficiency and Renewable Energy on the market need and potential value impacts of an asset labeling and diagnostic tool to encourage high-performance new buildings and building efficiency retrofit projects.

  15. Competitive Procurement and Asset Specificity

    NARCIS (Netherlands)

    Sorana, V.

    2003-01-01

    This paper studies the effects of asset specificity on the performance of procurement auctions with subcontracting and asset sales.The analysis highlights the role of several asset features like transfer costs, type of alternative uses and maintenance requirements.It is argued that, if bargaining

  16. Asset planning performance measurement framework

    NARCIS (Netherlands)

    Arthur, D.; Hodkiewicz, M.; Schoenmaker, R.; Muruvan, S.

    2014-01-01

    The international asset management standard ISO 55001, introduced in early 2014, outlines the requirement for an effective Asset Management System. Asset Management practitioners are seeking guidance on implementing one of the key requirements of the standard: the “line of sight” between the

  17. Multivariate time-varying volatility modeling using probabilistic fuzzy systems

    NARCIS (Netherlands)

    Basturk, N.; Almeida, R.J.; Golan, R.; Kaymak, U.

    2016-01-01

    Methods to accurately analyze financial risk have drawn considerable attention in financial institutions. One difficulty in financial risk analysis is the fact that banks and other financial institutions invest in several assets which show time-varying volatilities and hence time-varying financial

  18. 401(k) plan asset allocation, account balances, and loan activity in 2011.

    Science.gov (United States)

    VanDerhei, Jack; Holden, Sarah; Alonso, Luis; Bass, Steven

    2012-12-01

    THE BULK OF 401(K) ASSETS CONTINUED TO BE INVESTED IN STOCKS: On average, at year-end 2011, 61 percent of 401(k) participants' assets was invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Thirty-four percent was in fixed-income securities such as stable-value investments and bond and money funds. SEVENTY-TWO PERCENT OF 401(K) PLANS INCLUDED TARGET-DATE FUNDS IN THEIR INVESTMENT LINEUP AT YEAR-END 2011: At year-end 2011, 13 percent of the assets in the EBRI/ICI 401(k) database was invested in target-date funds and 39 percent of 401(k) participants held target-date funds. Also known as lifecycle funds, these funds are designed to offer a diversified portfolio that automatically rebalances to be more focused on income over time. MORE NEW OR RECENT HIRES INVESTED THEIR 401(K) ASSETS IN BALANCED FUNDS, INCLUDING TARGET-DATE FUNDS: For example, at year-end 2011, 51 percent of the account balances of recently hired participants in their 20s was invested in balanced funds, compared with 44 percent in 2010, and about 7 percent in 1998. A significant subset of that balanced fund category is target-date funds. At year-end 2011, 40 percent of the account balances of recently hired participants in their 20s was invested in target-date funds, compared with 35 percent at year-end 2010. 401(K) PARTICIPANTS CONTINUED TO SEEK DIVERSIFICATION OF THEIR INVESTMENTS: The share of 401(k) accounts invested in company stock remained at 8 percent in 2011. This share has fallen by more than half since 1999. Recently hired 401(k) participants contributed to this trend: They tended to be less likely to hold employer stock. PARTICIPANTS' 401(K) LOAN ACTIVITY REMAINED STEADY, ALTHOUGH LOAN BALANCES INCREASED SLIGHTLY IN 2011: At year-end 2011, 21 percent of all 401(k) participants who were eligible for loans had loans outstanding against their 401(k) accounts, unchanged from year-end 2009 and year-end 2010, and up from 18 percent at year

  19. 401(k) plan asset allocation, account balances, and loan activity in 2010.

    Science.gov (United States)

    VanDerhei, Jack; Holden, Sarah; Alonso, Luis; Bass, Steven

    2011-12-01

    THE BULK OF 401(K) ASSETS CONTINUED TO BE INVESTED IN STOCKS: On average, at year-end 2010, 62 percent of 401(k) participants' assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Thirty-three percent were in fixed-income securities such as stable value investments and bond and money funds. SEVENTY PERCENT OF 401(K) PLANS INCLUDED TARGET-DATE FUNDS IN THEIR INVESTMENT LINEUP AT YEAR-END 2010: At year-end 2010, 11 percent of the assets in the EBRI/ICI 401(k) database were invested in target-date funds and 36 percent of 401(k) participants held target-date funds. Also known as lifecycle funds, they are designed to offer a diversified portfolio that automatically rebalances to be more focused on income over time. MORE NEW OR RECENT HIRES INVESTED THEIR 401(K) ASSETS IN BALANCED FUNDS, INCLUDING TARGET-DATE FUNDS: For example, at year-end 2010, 44 percent of the account balances of recently hired participants in their 20s were invested in balanced funds, compared with 42 percent in 2009, and about 7 percent in 1998. A significant subset of that balanced fund category is target-date funds. At year-end 2010, 35 percent of the account balances of recently hired participants in their 20s were invested in target-date funds, compared with 31 percent at year-end 2009. 401(K) PARTICIPANTS CONTINUED TO SEEK DIVERSIFICATION OF THEIR INVESTMENTS: The share of 401(k) accounts invested in company stock continued to shrink, falling by more than a percentage point (to 8 percent) in 2010, continuing a steady decline that started in 1999. Recently hired 401(k) participants contributed to this trend: They tended to be less likely to hold employer stock. PARTICIPANTS' 401(K) LOAN BALANCES DECLINED SLIGHTLY IN 2010: In 2010, 21 percent of all 401(k) participants who were eligible for loans had loans outstanding against their 401(k) accounts, unchanged from year-end 2009, and up from 18 percent at year-end 2008. Loans

  20. Maternal Behavior by Birth Order in Wild Chimpanzees (Pan troglodytes): Increased Investment by First-Time Mothers.

    Science.gov (United States)

    Stanton, Margaret A; Lonsdorf, Elizabeth V; Pusey, Anne E; Goodall, Jane; Murray, Carson M

    2014-08-01

    Parental investment theory predicts that maternal resources are finite and allocated among offspring based on factors including maternal age and condition, and offspring sex and parity. Among humans, firstborn children are often considered to have an advantage and receive greater investment than their younger siblings. However, conflicting evidence for this "firstborn advantage" between modern and hunter-gatherer societies raises questions about the evolutionary history of differential parental investment and birth order. In contrast to humans, most non-human primate firstborns belong to young, inexperienced mothers and exhibit higher mortality than laterborns. In this study, we investigated differences in maternal investment and offspring outcomes based on birth order (firstborn vs. later-born) among wild chimpanzees ( Pan troglodyte schweinfurthii ). During the critical first year of life, primiparous mothers nursed, groomed, and played with their infants more than did multiparous mothers. Furthermore, this pattern of increased investment in firstborns appeared to be compensatory, as probability of survival did not differ by birth order. Our study did not find evidence for a firstborn advantage as observed in modern humans but does suggest that unlike many other primates, differences in maternal behavior help afford chimpanzee first-borns an equal chance of survival.

  1. Dynamic asset allocation for bank under stochastic interest rates.

    OpenAIRE

    Chakroun, Fatma; Abid, Fathi

    2014-01-01

    This paper considers the optimal asset allocation strategy for bank with stochastic interest rates when there are three types of asset: Bank account, loans and securities. The asset allocation problem is to maximize the expected utility from terminal wealth of a bank's shareholders over a finite time horizon. As a consequence, we apply a dynamic programming principle to solve the Hamilton-Jacobi-Bellman (HJB) equation explicitly in the case of the CRRA utility function. A case study is given ...

  2. Asset Stock Accumulation and Sustainability of Competitive Advantage

    OpenAIRE

    Ingemar Dierickx; Karel Cool

    1989-01-01

    Given incomplete factor markets, appropriate time paths of flow variables must be chosen to build required stocks of assets. That is, critical resources are accumulated rather than acquired in "strategic factor markets" (Barney [Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.]). Sustainability of a firm's asset position hinges on how easily assets can be substituted or imitated. Imitability is linked to the characteri...

  3. Federal Investment

    Science.gov (United States)

    Campbell, Sheila; Tawil, Natalie

    2013-01-01

    The federal government pays for a wide range of goods and services that are expected to be useful some years in the future. Those purchases, called investment, fall into three categories: physical capital, research and development (R&D), and education and training. There are several economic rationales for federal investment. It can provide…

  4. Monte Carlo simulations on the Black-Litterman model with absolute views: a comparison with the Markowitz model and an equal weight asset allocation strategy

    OpenAIRE

    Fernández Pibrall, Eric

    2015-01-01

    The focus of this degree thesis is on the Black-Litterman asset allocation model applied to recent popular investment vehicles such as Exchange Traded Funds (ETFs) simulating absolute views generated by Monte Carlo simulations that allow the inclusion of correlations. The sensibility of the scalar (which is a measure of the investor’s confidence in the prior estimates) contained in the Black-Litterman model will be analyzed over several periods of time and the results obtained compared with t...

  5. Positive Mood Risk Attitudes, and Investment Decisions

    DEFF Research Database (Denmark)

    Lepori, Gabriele

    moodshifting mechanism commonly employed in lab studies. More specifically, I exploit the time-series variation in the domestic theatrical release of comedy movies as a natural experiment for testing the impact that happy mood (proxied by weekend comedy movie attendance) has on investment in risky assets...... (proxied by the performance of the U.S. stock market on the following Monday). My hypothesis rests upon the evidence that individual investors are more likely to ponder trading decisions during the weekend and trade on Mondays. To control for unobserved factors that may contemporaneously affect movie...... attendance and equity returns, I employ the percentage of theater screens dedicated to the comedy genre as an instrument. Using a sample of data from 1995 to 2010, I estimate that an increase in comedy attendance on a given weekend is followed by a decrease in equity returns on the subsequent Monday, which...

  6. Digital asset management.

    Science.gov (United States)

    Humphrey, Clinton D; Tollefson, Travis T; Kriet, J David

    2010-05-01

    Facial plastic surgeons are accumulating massive digital image databases with the evolution of photodocumentation and widespread adoption of digital photography. Managing and maximizing the utility of these vast data repositories, or digital asset management (DAM), is a persistent challenge. Developing a DAM workflow that incorporates a file naming algorithm and metadata assignment will increase the utility of a surgeon's digital images. Copyright 2010 Elsevier Inc. All rights reserved.

  7. A paperless course on structural engineering programming: investing in educational technology in the times of the Greek financial recession

    Science.gov (United States)

    Sextos, Anastasios G.

    2014-01-01

    This paper presents the structure of an undergraduate course entitled 'programming techniques and the use of specialised software in structural engineering' which is offered to the fifth (final) year students of the Civil Engineering Department of Aristotle University Thessaloniki in Greece. The aim of this course is to demonstrate the use of new information technologies in the field of structural engineering and to teach modern programming and finite element simulation techniques that the students can in turn apply in both research and everyday design of structures. The course also focuses on the physical interpretation of structural engineering problems, in a way that the students become familiar with the concept of computational tools without losing perspective from the engineering problem studied. For this purpose, a wide variety of structural engineering problems are studied in class, involving structural statics, dynamics, earthquake engineering, design of reinforced concrete and steel structures as well as data and information management. The main novelty of the course is that it is taught and examined solely in the computer laboratory ensuring that each student can accomplish the prescribed 'hands-on' training on a dedicated computer, strictly on a 1:1 student over hardware ratio. Significant effort has also been put so that modern educational techniques and tools are utilised to offer the course in an essentially paperless mode. This involves electronic educational material, video tutorials, student information in real time and exams given and assessed electronically through an ad hoc developed, personalised, electronic system. The positive feedback received from the students reveals that the concept of a paperless course is not only applicable in real academic conditions but is also a promising approach that significantly increases student productivity and engagement. The question, however, is whether such an investment in educational technology is indeed

  8. Essays on Empirical Asset Pricing

    DEFF Research Database (Denmark)

    Gormsen, Niels Joachim

    that the expected return to the distant-future cash flows increases by more in bad times than the expected return to near-future cash flows does. This new stylized fact is important for understanding why the expected return on the market portfolio as a whole varies over time. In addition, it has strong implications...... for which economic model that drives the return to stocks. Indeed, I find that none of the canonical asset pricing models can explain this new stylized fact while also explaining the previously documented facts about stock returns. The second chapter, called Conditional Risk, studies how the expected return...... on individual stocks is influenced by the fact that their riskiness varies over time. We introduce a new ”conditional-risk factor”, which is a simple method for determining how much of the expected return to individual stocks that can be explained by time variation in their market risk, i.e. market betas. Using...

  9. China's Sovereign Wealth Fund Investments in overseas energy: The energy security perspective

    International Nuclear Information System (INIS)

    Sun, Xiaolei; Li, Jianping; Wang, Yongfeng; Clark, Woodrow W.

    2014-01-01

    Sovereign Wealth Funds (SWFs) are state-owned investment funds that invest in real and financial assets. Since the global financial crisis in 2008, SWFs' investments have resulted in national security concerns of host countries because SWFs continue to expand rapidly and have become increasingly active in real-time strategic transactions. Given this background, China, which has the biggest SWF in the world, is facing severe challenges of energy resources shortages while its plan is to accomplish social and economic development goals. Energy security is a key driving force of the energy investment policy of China's SWFs. This makes the SWF investments more complicated and more politically sensitive. The combination of sovereign rights and the strategic importance of energy also makes geopolitics more complicated and brings more uncertainty to SWF investments. This article explores the relationship between energy security and energy investments of China's SWFs. It is recognised that the energy investment of SWFs must follow a sustainable path to coordinate energy security, economic growth, return on investment and national security concerns. Government policymakers are urged to balance the financial and political returns on SWFs against potential negative effects. The conclusion presents insights for policymakers, energy scholars and SWF researchers. - Highlights: • Sovereign Wealth Funds (SWFs) are government-owned and may pursue geopolitical power. • SWF investment in energy is necessary for commercial and strategic interests. • China's SWFs are active in energy investment to support a “going global” strategy. • Sovereign rights are inevitable to integrate the strategic property of energy. • SWF investments in energy suffer negative impacts due to sovereign rights

  10. Financial Investments in Romania. A Comparative Analysis between Open-end Mutual Funds and Bank Deposits

    Directory of Open Access Journals (Sweden)

    Pop Izabela Luiza

    2017-01-01

    Full Text Available Despite the failures that investment funds have registered in Romania by the year 2000, they are a financial instrument chosen by more and more people to capitalize on their savings. Therefore, open-end investment funds have had a steady growth trend in Romania over the past 10 years; their net asset value increased by 24 times and the number of investors tripled. In this context, the purpose of our paper is to present possible factors that have caused this increase. Particularly, the empirical research focuses on studying the links that might exist between open-end investment funds, bank deposits and interest rates on bank deposits. The correlations between these variables were analysed by computing the Pearson's correlation coefficient. The results highlight a high negative relationship that exist between net asset value of investment funds and bank interest. Nevertheless, it has been found that bank deposits are related neither to the interest rate nor to the open-end investment funds.

  11. Entropy-based financial asset pricing.

    Directory of Open Access Journals (Sweden)

    Mihály Ormos

    Full Text Available We investigate entropy as a financial risk measure. Entropy explains the equity premium of securities and portfolios in a simpler way and, at the same time, with higher explanatory power than the beta parameter of the capital asset pricing model. For asset pricing we define the continuous entropy as an alternative measure of risk. Our results show that entropy decreases in the function of the number of securities involved in a portfolio in a similar way to the standard deviation, and that efficient portfolios are situated on a hyperbola in the expected return-entropy system. For empirical investigation we use daily returns of 150 randomly selected securities for a period of 27 years. Our regression results show that entropy has a higher explanatory power for the expected return than the capital asset pricing model beta. Furthermore we show the time varying behavior of the beta along with entropy.

  12. Entropy-based financial asset pricing.

    Science.gov (United States)

    Ormos, Mihály; Zibriczky, Dávid

    2014-01-01

    We investigate entropy as a financial risk measure. Entropy explains the equity premium of securities and portfolios in a simpler way and, at the same time, with higher explanatory power than the beta parameter of the capital asset pricing model. For asset pricing we define the continuous entropy as an alternative measure of risk. Our results show that entropy decreases in the function of the number of securities involved in a portfolio in a similar way to the standard deviation, and that efficient portfolios are situated on a hyperbola in the expected return-entropy system. For empirical investigation we use daily returns of 150 randomly selected securities for a period of 27 years. Our regression results show that entropy has a higher explanatory power for the expected return than the capital asset pricing model beta. Furthermore we show the time varying behavior of the beta along with entropy.

  13. Accounting treatment of intangible assets

    OpenAIRE

    Gorgieva-Trajkovska, Olivera; Koleva, Blagica; Georgieva Svrtinov, Vesna

    2015-01-01

    The accounting for fixed assets is, in many cases, a straightforward exercise, but it isn’t always so when it comes to the issue of intangible fixed assets and recognizing such assets on the balance sheet. IAS 38, In¬tan¬gi¬ble Assets, outlines the accounting re¬quire¬ments for in¬tan¬gi¬ble assets, which are non-mon¬e¬tary assets which are without physical substance and iden¬ti¬fi¬able (either being separable or arising from con¬trac¬tual or other legal rights). In¬tan¬gi¬ble assets meeting ...

  14. INVESTMENTS AS A FACTOR OF STABILITY OF THE RUSSIAN HEALTHCARE SYSTEM

    Directory of Open Access Journals (Sweden)

    Lyudmila Valentinovna Tokun

    2016-01-01

    Full Text Available In this article the author examines the structure of public expenditure on health in Russia and analyzes the adequacy of the investments in the health system. Goal / Objectives. The aim of this article is to analyze the expenses of the project “Development strategy of the Russian healthcare system for the long-term period 2015–2030”. The main objectives of this article are the definition of the technical condition of the buildings and improvement of health facilities, evaluation of the value of fixed assets in the healthcare and medical equipment depreciation, evaluation of tariff s in the compulsory health insurance system. Methodology. the method of comparative analysis of 10 past years indicators is used in this article Results. From 2005 to 2014 healthcare expenditures have increased 3 times, which is comparable to GDP growth. In the same period, investments in health have increased by 2 times. The main increase in expenditures occurred in the wages. These trends may indicate a lack of attention in relation to fixed assets. In relation to the renovation and the depreciation factor, rate of growth and the level of investment cast doubt on the adequacy and sustainability of the healthcare’s material basis for the provision of necessary medical assistance. It is required to calculate the standard, which includes continuous updating of fixed assets based on the each region of RF, depending on the regional characteristics and the structure of fixed assets. Conclusions / Significance. The study concluded that at the moment the size of the annual investment in health by the federal and regional budgets do not meet the needs of even simple reproduction, not to mention the modernization and development. Planning budget investment requirements can be carried out based on a special standard ratio, which takes into account the volume, composition and structure of fixed assets. Financial stability of the Russian healthcare depends not only on

  15. Parental Investments in Children

    DEFF Research Database (Denmark)

    Bonke, Jens; Esping-Andersen, Gösta

    This study examines parental time investment in their children, distinguishing between developmental and non-developmental care. Our analyses centre on three influential determinants: educational background, marital homogamy, and spouses’ relative bargaining power. We find that the emphasis...

  16. Investment in nursing human assets: education and minds of the future Inversiones en activos humanos de enfermería: educación y mentalidades para el futuro Investimento em ativos humanos da enfermagem: educação e mentes do futuro

    Directory of Open Access Journals (Sweden)

    Maria Auxiliadora Trevizan

    2010-06-01

    Full Text Available This paper analyzes issues related to education, crises and changes in light of the postmodern order, emphasizing efforts towards human capital as the impetus to promote changes. Focusing on universities and organizations, we discuss the main five types of minds valued by modern and future societies, proposing investment in human assets through the use of strategies and technologies to ensure continuing education throughout life.El artículo analiza: cuestiones sobre educación, crisis y cambios bajo la perspectiva las tendencias del nuevo orden postmoderno; y, los esfuerzos a ser emprendidos a favor del capital humano, fuente de toda la energía para la concretización de los cambios. Teniendo como foco las universidades y las organizaciones, son discutidos cinco tipos de mentalidades priorizadas y apreciadas en las sociedades contemporáneas y del futuro, proponiéndose realizar inversiones en los activos humanos utilizando tácticas y tecnologías que garanticen la educación continuada durante toda la vida.O objetivo deste artigo foi analisar questões sobre educação, crise e mudança à luz de tendências da nova ordem pós-moderna e dos esforços a serem empreendidos em prol do capital humano, fonte de toda energia para a concretização de mudanças. Tendo como foco as universidades e as organizações, discutem-se os cinco tipos de mentes priorizados e valorizados nas sociedades contemporâneas e do futuro, propondo-se o investimento em ativos humanos, com utilização de estratégias e tecnologias que favoreçam a garantia de educação contínua ao longo da vida.

  17. Operational management of offshore energy assets

    Science.gov (United States)

    Kolios, A. J.; Martinez Luengo, M.

    2016-02-01

    Energy assets and especially those deployed offshore are subject to a variety of harsh operational and environmental conditions which lead to deterioration of their performance and structural capacity over time. The aim of reduction of CAPEX in new installations shifts focus to operational management to monitor and assess performance of critical assets ensuring their fitness for service throughout their service life and also to provide appropriate and effective information towards requalification or other end of life scenarios, optimizing the OPEX. Over the last decades, the offshore oil & gas industry has developed and applied various approaches in operational management of assets through Structural Health and Condition Monitoring (SHM/CM) systems which can be, at a certain level, transferable to offshore renewable installations. This paper aims to highlight the key differences between offshore oil & gas and renewable energy assets from a structural integrity and reliability perspective, provide a comprehensive overview of different approaches that are available and applicable, and distinguish the benefits of such systems in the efficient operation of offshore energy assets.

  18. Kursk ASSET brings praise for plant operators

    International Nuclear Information System (INIS)

    Anon.

    1992-01-01

    An Assessment of Safety Significant Events Team (ASSET) from the International Atomic Energy Agency (IAEA) visited Kursk on 19-31 July 1992 - the first time such a group had been to a RBMK reactor site. Kursk is a four unit station and the IAEA Team was able to consider safety significant events over its 45 reactor-year history. all four units have good operating records, with lifetime load factors of 70-80%. The ASSET's aim was to consider the plants current safety provisions for prevention of accidents and incidents. ASSET recommendations may cover the design and operability of the plant, personnel or operating procedures. At Kursk the Team found that ''highly qualified plant management and a very dedicated and knowledgeable operating staff'' was a major asset. They found a sound maintenance programme although some aspects of the facility appeared neglected. This was attributed to Russian industrial priorities that focused on functionality rather than appearance. it was in the test and maintenance personnel that the ASSET mission found the safety culture weakest. Some of their recommendations are reported in this article. (Author)

  19. 75 FR 77922 - Nuveen Asset Management, et al.; Notice of Application

    Science.gov (United States)

    2010-12-14

    ... SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 29522; File No. 812-13839] Nuveen Asset Management, et al.; Notice of Application December 8, 2010. AGENCY: Securities and Exchange... company's voting stock to be owned by investment companies and companies controlled by them. 2. Section 12...

  20. 75 FR 55376 - Transamerica Asset Management, Inc. et al.; Notice of Application

    Science.gov (United States)

    2010-09-10

    ... more investment companies for short-term cash management purposes, or (ii) engage in interfund... Fund to: (i) acquire securities of one or more investment companies for short-term cash management...] Transamerica Asset Management, Inc. et al.; Notice of Application September 3, 2010 AGENCY: Securities and...

  1. Considering foreign direct investment in Denmark

    DEFF Research Database (Denmark)

    Gjerding, Allan Næs

    2005-01-01

    The present paper examines the aspect of relational assets and relates it to the strategic decision on undertaking foreign direct investment (FDI). The point of departure is the increasing importance of FDI globally as well as in the Danish economy, and the observation that even though Denmark...

  2. Asset management for infrastructure systems energy and water

    CERN Document Server

    Balzer, Gerd

    2015-01-01

    The book offers a broad overview of asset management processes for different utilities, with a special emphasis on energy and water. It provides readers with important practical considerations concerning the development of new competitive structures and procedures for guaranteeing a sufficient supply of energy and water in a regulated environment, using clearly defined technical and economic cornerstones. On the one hand asset owners expect suitable interests from their investment and business growth; on the other hand regulators focus more on a reliable and cost-effective customer supply. Thi

  3. Macroeconomic Dynamics of Assets, Leverage and Trust

    Science.gov (United States)

    Rozendaal, Jeroen C.; Malevergne, Yannick; Sornette, Didier

    A macroeconomic model based on the economic variables (i) assets, (ii) leverage (defined as debt over asset) and (iii) trust (defined as the maximum sustainable leverage) is proposed to investigate the role of credit in the dynamics of economic growth, and how credit may be associated with both economic performance and confidence. Our first notable finding is the mechanism of reward/penalty associated with patience, as quantified by the return on assets. In regular economies where the EBITA/Assets ratio is larger than the cost of debt, starting with a trust higher than leverage results in the highest long-term return on assets (which can be seen as a proxy for economic growth). Therefore, patient economies that first build trust and then increase leverage are positively rewarded. Our second main finding concerns a recommendation for the reaction of a central bank to an external shock that affects negatively the economic growth. We find that late policy intervention in the model economy results in the highest long-term return on assets. However, this comes at the cost of suffering longer from the crisis until the intervention occurs. The phenomenon that late intervention is most effective to attain a high long-term return on assets can be ascribed to the fact that postponing intervention allows trust to increase first, and it is most effective to intervene when trust is high. These results are derived from two fundamental assumptions underlying our model: (a) trust tends to increase when it is above leverage; (b) economic agents learn optimally to adjust debt for a given level of trust and amount of assets. Using a Markov Switching Model for the EBITA/Assets ratio, we have successfully calibrated our model to the empirical data of the return on equity of the EURO STOXX 50 for the time period 2000-2013. We find that dynamics of leverage and trust can be highly nonmonotonous with curved trajectories, as a result of the nonlinear coupling between the variables. This

  4. Evaluating the role of private investment in infrastructure assets.

    Science.gov (United States)

    2015-10-01

    Public Private Partnership (P3) projects are likely to fundamentally impact entire : transportation systems. However, most studies are focused on system modeling rather than : policy analysis, and few studies have examined the impacts of P3s on real-...

  5. 77 FR 36228 - Financial Asset Securitization Investment Trusts

    Science.gov (United States)

    2012-06-18

    ... are being used to facilitate tax avoidance transactions. H.R. Rep. No. 108-548, Pt. 1, at 295 (2004... Chief Counsel (Financial Institutions and Products). List of Subjects in 26 CFR Part 1 Income taxes...

  6. Asset sales, asset exchanges, and shareholder wealth in China

    Directory of Open Access Journals (Sweden)

    Weiting Huang

    2012-01-01

    Full Text Available In this paper, we study a sample of 1376 corporate asset sales and 250 asset exchanges in China between 1998 and 2006. We find that corporate asset sales in China enhance firm value with a cumulative abnormal return (CAR of 0.46% for the pre-announcement five-day period, which is consistent with the evidence discovered in both U.K. and U.S. For companies that exchanged assets during the sample period, the pre-announcement five-day CAR of 1.32% is statistically significant. We also discover that gains from divesting assets are positively related to managerial performance measured by Tobin's q ratio and the relative size of the asset sold or exchanged. Well-managed (high-q companies are more likely to sell or exchange assets in a value-maximizing fashion than poorly managed (low-q companies. Furthermore, asset-seller gains are not related to enhancing corporate focus, but improving corporate focus by exchanging for core assets enhances firm value.

  7. Asset management maturity in public infrastructure: the case of Rijkswaterstaat

    NARCIS (Netherlands)

    Volker, L.; Ligtvoet, A.; van den Boomen, M.; Wessels, Peter; van der Lei, T.E.; Herder, P.M.

    2013-01-01

    In times of restructuring governmental policies and resources, the
    need for strategic asset management is growing. Maturity models offer
    organisations a structure to assist them in improving their asset management
    performance. We present the results of a repeated maturity measurement

  8. Pricing Volatility Referenced Assets

    Directory of Open Access Journals (Sweden)

    Alan De Genaro Dario

    2006-12-01

    Full Text Available Volatility swaps are contingent claims on future realized volatility. Variance swaps are similar instruments on future realized variance, the square of future realized volatility. Unlike a plain vanilla option, whose volatility exposure is contaminated by its asset price dependence, volatility and variance swaps provide a pure exposure to volatility alone. This article discusses the risk-neutral valuation of volatility and variance swaps based on the framework outlined in the Heston (1993 stochastic volatility model. Additionally, the Heston (1993 model is calibrated for foreign currency options traded at BMF and its parameters are used to price swaps on volatility and variance of the BRL / USD exchange rate.

  9. Protection of endangered intangible assets specific insight into the role of the law

    Directory of Open Access Journals (Sweden)

    Stajić Ljubomir

    2011-01-01

    Full Text Available There will always be states and corporations that will want and try to appropriate possessions of others without any intellectual or financial investments. Such a 'theft' is made easier by the fact that the owners of a certain property either have no awareness of its significance or tend to neglect the threats of a potential theft. For those, who naively believe that they don't possess property which will be 'attacked' by someone, and they don't want to know that it should be protected, and how to protect it, but the moment of sobering will be the moment of destruction. It is often wrongly assumed that intangible assets includes only brands, patents, information and similar. According to modern interpretations the intangible assets includes also the summary of knowledge, skills and experiences of the employees. In the Republic of Serbia also much more attention is paid to physical and technical protection of the material than of the intangible assets. In percentage terms the protection of employees, proprietors and owners as well as protection of business is so small that it is almost nonexistent. By analyzing historical data it has been decided that protection had always been behind the theft methods. It can also be concluded that the protection used to be efficient only for a limited and relatively short period of time. The problems of protection today lies in the fact that, being non-material, intangible assets does not actually need to be physically stolen so that the number of modalities of thefts and appropriation in different ways has considerably increased. Its protection today means adoption of such a massive protective system which, quite often, exceeds the capabilities of the owner. The significance of the intangible assets protection is best confirmed by the fact that is has been regulated in numerous multilateral as well as bilateral conventions and agreements. The law, actually, emerges as the basis, method and limitation of the

  10. 12 CFR 704.10 - Investment action plan.

    Science.gov (United States)

    2010-01-01

    ... market pricing, cash flows, and risk; (3) How the investment fits into the credit union's asset and... Banks and Banking NATIONAL CREDIT UNION ADMINISTRATION REGULATIONS AFFECTING CREDIT UNIONS CORPORATE CREDIT UNIONS § 704.10 Investment action plan. (a) Any corporate credit union in possession of an...

  11. Irreversible investments revisited

    DEFF Research Database (Denmark)

    Sandal, Leif K.; Steinshamn, Stein I.; Hoff, Ayoe

    2007-01-01

    A multi-dimensional, non-linear dynamic model in continuous time is presented for the purpose of finding the optimal combination of exploitation and capital investment in optimal renewable resource management. Non-malleability of capital is incorporated in the model through an asymmetric cost......-function of investment, and investments can be both positive and negative. Exploitation is controlled through the utilisation rate of available capital. A novel feature in this model is that there are costs associated with the available capital whether it is utilised or not. And, in contrast to most of the previous...

  12. European methodology of analysis vertical restraints under rule of reason in context of cooperative relation specific investments

    Directory of Open Access Journals (Sweden)

    Agamirova Maria, Е.

    2015-06-01

    Full Text Available The problem of underinvestment in specific assets is a key issue in new institutional economics, especially in case of cooperative relation specific investments. It can be solved due to vertical restraints, as an alternative way of vertical integration to transfer control to partner, who makes relation specific investments. The type of relationspecific investments called «cooperative» investments (or cross investments was nearly absent in economic analysis up to the very end of the twentieth century despite of the fact that such investments are widespread. It led to the absence of analysis relation specific investments in official regulation documents. At the same time, different types of relation specific investments can be characterized by different degree of riskiness and need special regulations of vertical agreements. In the paper author makes an attempt to analyze the European methodology of assessment vertical restraints under rule of reason focusing on the type of relation specific investments. It makes possible to improve analysis of vertical restraint in Russian antitrust.

  13. Asset protection: why a preventive approach is the best insurance against liability.

    Science.gov (United States)

    Rinaldi, Ellen; Shin, Alisa

    2008-02-01

    Asset-protection planning is critical for people in high-risk professions, such as dentistry. Planning requires a careful weighing of risks, such as the risk of a lawsuit versus that of relinquishing control of assets. The authors examine several lawful techniques that may protect a dentist's assets from claims of future creditors. Asset-protection planning, if done early and with the guidance of an attorney well-versed in the subject, can help deter creditors from claims resulting from malpractice suits, divorce, business partner disputes, bad investments, poor tax planning or a combination of these. Practice Implications. Careful planning can minimize the risk to a dentist's personal assets and the assets of the practice resulting from a lawsuit or other liabilities.

  14. How Does Corruption in Developing Countries Affect Corporate Investment and Tax Compliance?

    OpenAIRE

    Riedel, Nadine; Fuest, Clemens; Maffini, Giorgia

    2010-01-01

    Using a rich panel data base for firms in Asian countries, we assess the effect of public sector corruption on corporate assets investment and tax payments. Our findings suggest that public sector corruption does not deter investment activities of national firms while asset investment of multinational corporations is significantly reduced in corrupt environments. Moreover, the findings indicate that corruption exerts a quantitatively large negative effect on corporate tax payments, especially...

  15. Open-end Investment Funds in Croatia

    Directory of Open Access Journals (Sweden)

    Bojan Morić Milovanović

    2006-03-01

    Full Text Available This work discusses investment funds in Croatia, with a particular emphasis on openend investment funds. After a short review of the development of the funds, the perception of the funds is analysed, as are the trends in total assets and in average yields. The degree of concentration of open-end investment funds is shown with statistical measures of concentration (the Gini Coefficient, the Lorenz Curve and concentration ratios. All these indicators show that the concentration is moderate to strong. The greatest yields are given by the equity funds, but these are also the most risky.

  16. Portfolio Choice with Illiquid Assets

    OpenAIRE

    Andrew Ang; Dimitris Papanikolaou; Mark Westerfield

    2013-01-01

    We present a model of optimal allocation over liquid and illiquid assets, where illiquidity is the restriction that an asset cannot be traded for intervals of uncertain duration. Illiquidity leads to increased and state-dependent risk aversion, and reduces the allocation to both liquid and illiquid risky assets. Uncertainty about the length of the illiquidity interval, as opposed to a deterministic non-trading interval, is a primary determinant of the cost of illiquidity. We allow market liqu...

  17. A mean-variance frontier in discrete and continuous time

    NARCIS (Netherlands)

    Bekker, Paul A.

    2004-01-01

    The paper presents a mean-variance frontier based on dynamic frictionless investment strategies in continuous time. The result applies to a finite number of risky assets whose price process is given by multivariate geometric Brownian motion with deterministically varying coefficients. The derivation

  18. Investing for a low carbon economy. Special issue COP21

    International Nuclear Information System (INIS)

    Guez, Herve; Basselier, Clotilde; Bennani, Zineb; Coeslier, Manuel; Dufour, Mathilde; Dunand-Chatellet, Lea; Guez, Herve; Lauverjat Celine; Ostiari, Emmanuelle; Smia, Ladislas; Bonnin, Marguerite; Briand, Marc; Favier, Julien; Finidori, Esther; Wigley, Chris; Dobie, Jacqueline; Mary Ellis, Susannah; Kiernan, Shannon; Lefer, Elizabeth; Perrin, Elsa; Treadwell, Christopher; Zerner, Rachel

    2015-11-01

    Mirova, an asset management firm dedicated to responsible investment, has published today Investing in a low-carbon economy, a guide for investors to become COP21 compliant. Mirova's study provides an in-depth analysis highlighting the challenges of climate change and presents methods for investors to effectively measure their carbon footprint. Mirova offers a unique range of investment solutions promoting energy transition across all asset classes. COP21: mobilising private investors is a necessity To maintain the economy in a '2 degree' trajectory, it is vital to redirect savings towards companies and projects promoting energy transition. Philippe Zaouati, Head of Mirova explains: 'The energy transition can only succeed if we manage to mobilise private investors' savings. The success of COP21 therefore also depends on the ability of asset management firms to propose solutions in response to the climate challenge, whilst delivering the returns expected by investors'. Accurately measuring your carbon footprint. In response to growing demands on investors to make greener investments, Mirova, in partnership with the leading carbon strategy specialist consultant Carbone 4, has developed an innovative methodology to measure the carbon footprint of an investment portfolio. This decision-making tool assesses a company's contribution to the reduction of global greenhouse gas emissions (GGE). Measuring the overall impact of a business on the environment is an essential step towards acting against global warming. Assessing the carbon footprint is therefore an indispensable stage in the construction of portfolios contributing to energy transition. Low-carbon investments across all asset classes In order to redirect capital towards investments promoting energy transition, Mirova is proposing solutions involving all asset classes: - Renewable energy infrastructures: 100% low carbon allocation For more than 10 years now, Mirova has provided European institutions with access to

  19. The Mutual Investments in Romania - Current Developments and Trends

    Directory of Open Access Journals (Sweden)

    Florina Oana VIRLANUTA

    2013-03-01

    Full Text Available Mutual fund industry in Romania has undergone significant growth in recent years in the number of investors and the net assets managed, but still very small compared to other European countries. Capital market development in Romania, the emergence of new investment instruments provides a greater variety of mutual funds investments. Managers decide on the structure of the portfolio by selecting categories of assets in accordance with the rules set out in the Prospectus and according to the degree of risk. In this paper we propose to realize an analysis of mutual investments system in Romania, the progress and their efficiency.

  20. Commercial Building Energy Asset Score Program Overview and Technical Protocol (Version 1.1)

    Energy Technology Data Exchange (ETDEWEB)

    Wang, Na; Goel, Supriya; Makhmalbaf, Atefe

    2013-08-09

    The U.S. Department of Energy (DOE) is developing a voluntary national scoring system for commercial buildings to help building owners and managers assess a building’s energy-related systems independent of operations. The goal of the score is to facilitate cost-effective investment in energy efficiency improvements of commercial buildings. The system, known as the Commercial Building Energy Asset Score, will allow building owners and managers to compare their building infrastructure against peers and track building upgrades over time. The system will also help other building stakeholders (e.g., building investors, tenants, financiers, and appraisers) understand the relative efficiency of different buildings in a way that is independent from operations and occupancy. This report outlines the technical protocol used to generate the energy asset score, explains the scoring methodology, and provides additional details regarding the energy asset scoring tool. The alternative methods that were considered prior to developing the current approach are described in the Program Overview and Technical Protocol Version 1.0.

  1. Basel III and Asset Securitization

    Directory of Open Access Journals (Sweden)

    M. Mpundu

    2013-01-01

    Full Text Available Asset securitization via special purpose entities involves the process of transforming assets into securities that are issued to investors. These investors hold the rights to payments supported by the cash flows from an asset pool held by the said entity. In this paper, we discuss the mechanism by which low- and high-quality entities securitize low- and high-quality assets, respectively, into collateralized debt obligations. During the 2007–2009 financial crisis, asset securitization was seriously inhibited. In response to this, for instance, new Basel III capital and liquidity regulations were introduced. Here, we find that we can explicitly determine the transaction costs related to low-quality asset securitization. Also, in the case of dynamic and static multipliers, the effects of unexpected negative shocks such as rating downgrades on asset price and input, debt obligation price and output, and profit will be quantified. In this case, we note that Basel III has been designed to provide countercyclical capital buffers to negate procyclicality. Moreover, we will develop an illustrative example of low-quality asset securitization for subprime mortgages. Furthermore, numerical examples to illustrate the key results will be provided. In addition, connections between Basel III and asset securitization will be highlighted.

  2. Smart-grid investments, regulation and organization

    International Nuclear Information System (INIS)

    Agrell, Per J.; Bogetoft, Peter; Mikkers, Misja

    2013-01-01

    Grid infrastructure managers worldwide are facing demands for reinvestments in new assets with higher on-grid and off-grid functionality in order to meet new environmental targets. The roles of the current actors will change as the vertical interfaces between regulated and unregulated tasks become blurred. In this paper, we characterize some of the effects of new asset investments policy on the network tasks, assets and costs and contrast this with the assumptions of the current economic network regulation. To provide structure, we present a model of investment provision under regulation between a distribution system operator and a potential investor–generator. The results from the model confirm the hypothesis that network regulation should find a focal point, should integrate externalities in the performance assessment and should avoid wide delegation of contracting-billing for smart-grid investments. - Highlights: ► We review regulatory solutions for smart-grid and DER investments. ► What matters more than upfront incentives is organization and delegation. ► We model regulated investment under private information by a generator or a DSO. ► Highest welfare for high-powered incentives and centralized information. ► Market approaches likely to give poor outcomes for this case.

  3. INVESTMENT ATTRACTIVENESS OF ENTERPRISES

    Directory of Open Access Journals (Sweden)

    Nadiia Davydenko

    2017-03-01

    Full Text Available In the article the approaches to defining the essence of the concept of “investment attractiveness of enterprises” were analyzed. On the example of "Agrofirm Brusilov" depth analysis of the agricultural enterprises to evaluate of profitability, liquidity, solvency, financial stability, the timing of the return of invested funds and minimizing investment risks was conducted. To study methods of rating and system analysis were used. To justify the conditions of  increasing investment attractiveness farms method of scoring was used. It was established as a result of the use of integrated evaluation of the financial position one can see problem aspects of financial position of the company and develop measures to enhance liquidity, solvency, identify potential for raising the efficiency of company and prevention of financial crisis. The analysis of financial position showed that the management of the enterprise doesn’t  think  about  financial stability and solvency, does not understand the benefit of borrowed capital. Using research results in practice of agricultural enterprises allows us to give a real evaluation of investment attractiveness and justify ways to improve it. Key words: investments, investment attractiveness, potential business, financial position.

  4. Determinants of Return on Assets in Romania: A Principal Component Analysis

    Directory of Open Access Journals (Sweden)

    Sorana Vatavu

    2015-03-01

    Full Text Available This paper examines the impact of capital structure, as well as its determinants on the financial performance of Romanian companies listed on the Bucharest Stock Exchange. The analysis is based on cross sectional regressions and factor analysis, and it refers to a ten-year period (2003-2012. Return on assets (ROA is the performance proxy, while the capital structure indicator is debt ratio. Regression results indicate that Romanian companies register higher returns when they operate with limited borrowings. Among the capital structure determinants, tangibility and business risk have a negative impact on ROA, but the level of taxation has a positive effect, showing that companies manage their assets more efficiently during times of higher fiscal pressure. Performance is sustained by sales turnover, but not significantly influenced by high levels of liquidity. Periods of unstable economic conditions, reflected by high inflation rates and the current financial crisis, have a strong negative impact on corporate performance. Based on regression results, three factors were considered through the method of iterated principal component factors: the first one incorporates debt and size, as an indicator of consumption, the second one integrates the influence of tangibility and liquidity, marking the investment potential, and the third one is an indicator of assessed risk, integrating the volatility of earnings with the level of taxation. ROA is significantly influenced by these three factors, regardless the regression method used. The consumption factor has a negative impact on performance, while the investment and risk variables positively influence ROA.

  5. Financing Investment

    DEFF Research Database (Denmark)

    Hirth, Stefan; Flor, Christian Riis

    Intuition suggests that corporate investment should be decreasing in financing constraints. We show that even when financing is obtained using a standard debt contract and there is symmetric information between the firm and outside investors, the relation is actually U-shaped. We thus provide a new...... theoretical explanation for the recent empirical findings of Cleary et al. (2007). We split up the endogenously implied financing costs and propose a trade-off between expected liquidation costs and second-best investment costs. For rather unconstrained firms, the risk of costly liquidation dominates the cost...

  6. Intellectual Capital and Intangible Assets Analysis and Valuation

    Directory of Open Access Journals (Sweden)

    Ion Anghel

    2008-03-01

    Full Text Available Today the intellectual capital is a key factor in company’s profitability. Two major forces have driven the high performance workplace over the past two decades: globalization and increasing in technological changes. In this environment, the intellectual capital and intangible assets is fundamental to success. In the new economic competition, knowledge assets provide a sustainable competitive advantage. The measurement is fundamental to support management decision in allocation investment and investor’s decision regarding the value versus price. In our research we consider a group of Romanian listed companies on Bucharest Stock Exchange and analyze the importance of intangible value into the total market value of the equity. From accounting point of view the importance of intangible assets is very low but from the market evidence was indicated 47% importance of intangible value in total market value for the Romanian listed companies.

  7. A Critical Review of the Literature on Firm-Level Theories on Ship Investment

    OpenAIRE

    Sinem Celik Girgin; Thanasis Karlis; Hong-Oanh Nguyen

    2018-01-01

    The maritime industry is one of those rare industries that are both highly international integrated to international trade and also highly capital intensive dependent on substantial investment amount. In the literature, ship investments have not been widely examined through the firm-level investment theories to explore the link between investment level and asset price valuation. The general trend in the literature of ship investments is to analyse the relationship among the shipping markets (...

  8. Managing assets in the infrastructure sector

    NARCIS (Netherlands)

    van Houten, T.P.; Zhang, L.

    2010-01-01

    In view of the importance of managing assets and the lack of research in managing assets in the infrastructure sector, we develop an asset management model in this study. This model is developed in line with the unique characteristics of the infrastructure assets and asset management principles and

  9. Do strong brands pay off? : An empirical investigation of the relation between brand asset valuator and financial performance

    NARCIS (Netherlands)

    Verbeeten, F.H.M.; Vijn, P.

    2006-01-01

    In this study, we investigate the relation between BrandAssetTM Valuatorand financial performance measures. More specifically, we investigate whether pillars of the BrandAssetTM Valuatormodel (Brand Vitality and Brand Stature) are associated with accounting performance (return on investment, return

  10. The asset pricing model of musharakah factors

    Science.gov (United States)

    Simon, Shahril; Omar, Mohd; Lazam, Norazliani Md

    2015-02-01

    The existing three-factor model developed by Fama and French for conventional investment was formulated based on risk-free rates element in which contradict with Shariah principles. We note that the underlying principles that govern Shariah investment were mutual risk and profit sharing between parties, the assurance of fairness for all and that transactions were based on an underlying asset. In addition, the three-factor model did not exclude stock that was not permissible by Shariah such as financial services based on riba (interest), gambling operator, manufacture or sale of non-halal products or related products and other activities deemed non-permissible according to Shariah. Our approach to construct the factor model for Shariah investment was based on the basic tenets of musharakah in tabulating the factors. We start by noting that Islamic stocks with similar characteristics should have similar returns and risks. This similarity between Islamic stocks was defined by the similarity of musharakah attributes such as business, management, profitability and capital. These attributes define factor exposures (or betas) to factors. The main takeaways were that musharakah attributes we chose had explain stock returns well in cross section and were significant in different market environments. The management factor seemed to be responsible for the general dynamics of the explanatory power.

  11. Derailed locomotive? Petrobras investments and economic growth in Brazil

    Directory of Open Access Journals (Sweden)

    Raíssa Fernandes Yabiko

    2018-01-01

    Full Text Available Petrobras is the largest firm in Brazil and one of the largest in the world. Its investment plans are among the biggest in the oil and gas industry, focused in Brazil and on E&P. Petrobras is responsible for a large share of gross capital formation and gross domestic product (GDP growth in the country. The correlation between its investments and the country investment and GDP growth is above 0.8 and shows the dependency of the economy to Petrobras activity. At the same time, as a state enterprise it has been a tool of macroeconomic policy. In the 2010´s its gasoline and diesel prices were frozen to keep inflation down. The recent crisis in the company, including corruption scandals and oil price slump increased debt levels and reduced its capital expenditures. The sale of assets directive since 2016 is required to reduce its net debt. While a medium to long term survival strategy, the change in Petrobras’ investment profile may decrease the prospects of GDP growth in the Brazilian economy.

  12. Investment, regulation, and uncertainty

    Science.gov (United States)

    Smyth, Stuart J; McDonald, Jillian; Falck-Zepeda, Jose

    2014-01-01

    As with any technological innovation, time refines the technology, improving upon the original version of the innovative product. The initial GM crops had single traits for either herbicide tolerance or insect resistance. Current varieties have both of these traits stacked together and in many cases other abiotic and biotic traits have also been stacked. This innovation requires investment. While this is relatively straight forward, certain conditions need to exist such that investments can be facilitated. The principle requirement for investment is that regulatory frameworks render consistent and timely decisions. If the certainty of regulatory outcomes weakens, the potential for changes in investment patterns increases.   This article provides a summary background to the leading plant breeding technologies that are either currently being used to develop new crop varieties or are in the pipeline to be applied to plant breeding within the next few years. Challenges for existing regulatory systems are highlighted. Utilizing an option value approach from investment literature, an assessment of uncertainty regarding the regulatory approval for these varying techniques is undertaken. This research highlights which technology development options have the greatest degree of uncertainty and hence, which ones might be expected to see an investment decline. PMID:24499745

  13. 77 FR 20853 - Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940

    Science.gov (United States)

    2012-04-06

    ... BlackRock Low Duration Bond Portfolio, a series of BlackRock Funds II, based on net asset value. Of... Investment Management, Office of Investment Company Regulation, 100 F Street NE., Washington, DC 20549-8010... approximately $32,393 incurred in connection with the liquidation were paid by Reich & Tang Asset Management...

  14. 75 FR 25002 - Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940

    Science.gov (United States)

    2010-05-06

    ... Strategic Value Fund, a series of Advantage Funds, Inc., based on net asset value. Expenses of $81,000... ceased to be an investment company. On September 25, 2009, applicant transferred its assets to Alliance... AllianceBernstein L.P., applicant's investment adviser. Filing Date: The application was filed on March 18...

  15. The Tradeoff Between Mutual Fund and Direct Stock Investments

    DEFF Research Database (Denmark)

    Marekwica, Marcel; Steininger, Bertram I.

    2014-01-01

    We study the tradeoff between direct and indirect stock investments through equity mutual funds for a utility-maximizing investor. Whereas direct investments impose higher transaction costs on the formation of a well-diversified portfolio, mutual funds charge fees for their services. Our results...... show that the fee levels that make private investors indifferent between direct and indirect stock investments vary heavily according to risk aversion, the amounts invested, correlations between assets, transaction costs, and the length of investment horizon. In particular, our results suggest...

  16. Asset management: the big picture.

    Science.gov (United States)

    Deinstadt, Deborah C

    2005-10-01

    To develop an comprehensive asset management plan, you need, first of all, to understand the asset management continuum. A key preliminary step is to thoroughly assess the existing equipment base. A critical objective is to ensure that there are open lines of communication among the teams charged with managing the plan's various phases.

  17. Assets Expropriation via Cash Dividends? Free Cash Flow or Tunneling

    Directory of Open Access Journals (Sweden)

    Jeng-Ren Chiou

    2010-06-01

    Full Text Available This study solves the dispute between the free cash flow and tunneling hypotheses in explaining the role of cash dividends on asset expropriation of the controlling shareholders in Chinese listed firms. Investors value more the cash dividends and the cash holdings of firms with lower ownership control than those of firms with higher ownership control. This is more consistent with the tunneling hypothesis. However, when investment opportunities are considered, the free cash flow hypothesis better explains firms' dividend policy. Investors value more the cash dividends of firms with fewer investment opportunities and higher probability of expropriation. This study indicates that investors are concerned with the potential asset expropriation through cash payouts, unless firms possess high growth opportunities.

  18. Game Options approach in bankruptcy triggering asset value

    Directory of Open Access Journals (Sweden)

    Abdelmajid El hajaji

    2019-07-01

    Full Text Available In this paper, we develop a new numerical method, game theory and option pricing to compute a bankruptcy triggering asset value. we will draw our attention to determining a the numerical asset value, or price of a share, at which a bankruptcy is triggered. This paper develops and analyze a cubic spline collocation method for approximating solutions of the problem. This method converges quadratically. In addition, this article also provides with a real-life case study of the investment bank, and the optimal bankruptcy strategy in this particular case. As we will observe, the bankruptcy trigger computed in this example could have served as a good guide for predicting fall of this investment bank.

  19. The Risk-Return Trade-Off in Human Capital Investment

    DEFF Research Database (Denmark)

    Christiansen, Charlotte; Joensen, Juanna Schrøter; Nielsen, Helena Skyt

    In this paper we analyze investments in human capital assets in a way which is standard for financial assets, but not (yet) for human capital assets. We study mean-variance plots of human capital assets. We compare the properties of human capital returns using a performance measure and by sing...... tests for mean-variance spanning. A risk-return trade-off is revealed, hich is not only related to the length of education but also to the type of education. We identify a range of educations that are efficient in terms of investment goods, and a range of educations that are inefficient, and may...

  20. Applying Sustainability and Responsible Investment on Islamic Equity Investment: An Analysis of FTSE Shariah and FTSE4GOOD Indices

    OpenAIRE

    Rizki, Reza

    2015-01-01

    2015 dissertation for MSc Islamic Banking and Finance. Selected by academic staff as a good example of a masters level dissertation. \\ud \\ud Shariah-compliant Investment and Sustainability Responsible Investment (SRI) are the slternative asset classes and they are growing rapidly leaving their counterparts behind. Nonetheless, there are some criticisms against the screening criteria which are applied by Islamic equity investment because they exclude the environment, social and human rights is...

  1. Conformance and non conformance of asset managers to the environment, social and governance pressures: sensemaking capacities and the use of externally defined information

    OpenAIRE

    Sakuma, Kyoko

    2012-01-01

    This thesis focuses on a central behavioral paradox in the asset management community. Recent decades have brought an upsurge in initiatives throughout the investment community to voluntarily integrate sustainability issues into investment decisions. The financial crisis has however revealed behavioral inconsistency and deepening irresponsibility. Today, sustainable investments represent USD 10.7 trillion, or 7% of the entire market, of assets under management and it is growing steadily. One ...

  2. Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms

    Directory of Open Access Journals (Sweden)

    Shaista Wasiuzzaman

    2013-06-01

    Full Text Available The paper examines the determinants of the level of investment in net operating working capital by firms in Malaysia. Data from 192 companies spanning a period of 8 years (2000- 2007 are analysed using the OLS regression technique for this purpose. The study finds that in times of economic expansion, younger and smaller firms with less tangible assets, low leverage, high immediate sales growth, high operating cash flows, less volatile revenues and low levels of asymmetric information are likely to have the highest investments inoperating working capital. Board characteristics, namely size and the independence of the board, are not found to have any significant influence on the working capital investment of firms.

  3. Optimal Investment-Consumption Strategy under Inflation in a Markovian Regime-Switching Market

    Directory of Open Access Journals (Sweden)

    Huiling Wu

    2016-01-01

    Full Text Available This paper studies an investment-consumption problem under inflation. The consumption price level, the prices of the available assets, and the coefficient of the power utility are assumed to be sensitive to the states of underlying economy modulated by a continuous-time Markovian chain. The definition of admissible strategies and the verification theory corresponding to this stochastic control problem are presented. The analytical expression of the optimal investment strategy is derived. The existence, boundedness, and feasibility of the optimal consumption are proven. Finally, we analyze in detail by mathematical and numerical analysis how the risk aversion, the correlation coefficient between the inflation and the stock price, the inflation parameters, and the coefficient of utility affect the optimal investment and consumption strategy.

  4. ASSESSMENT OF BANKING ASSETS ON FINANCIAL RISK MANAGEMENT - ALBANIAN CASE

    Directory of Open Access Journals (Sweden)

    ADRIATIK KOTORRI

    2014-02-01

    Full Text Available Recognizing the asset value dynamics volatility of the financial institutions and the importance of its recognition both for financial reporting purposes and risk management effect, this paper aims to provide a practical model for the assets and financial institutions evaluation especially banks. It also aims to present a model to measure the value of banking assets for the purposes of risk management as an opportunity to identify in an early moment the banking risks. The paper develops the bank assets assessment forms and the basis of mathematical modeling of this assessment in general. He identifies also the evaluation factors as for example time to maturity, interest rate market for the assets (YTM, the interest rate agreed, the early repayment of the loan, interest ceilings and floors, off-balance sheet treatment, etc..

  5. Security Investment in Contagious Networks.

    Science.gov (United States)

    Hasheminasab, Seyed Alireza; Tork Ladani, Behrouz

    2018-01-16

    Security of the systems is normally interdependent in such a way that security risks of one part affect other parts and threats spread through the vulnerable links in the network. So, the risks of the systems can be mitigated through investments in the security of interconnecting links. This article takes an innovative look at the problem of security investment of nodes on their vulnerable links in a given contagious network as a game-theoretic model that can be applied to a variety of applications including information systems. In the proposed game model, each node computes its corresponding risk based on the value of its assets, vulnerabilities, and threats to determine the optimum level of security investments on its external links respecting its limited budget. Furthermore, direct and indirect nonlinear influences of a node's security investment on the risks of other nodes are considered. The existence and uniqueness of the game's Nash equilibrium in the proposed game are also proved. Further analysis of the model in a practical case revealed that taking advantage of the investment effects of other players, perfectly rational players (i.e., those who use the utility function of the proposed game model) make more cost-effective decisions than selfish nonrational or semirational players. © 2018 Society for Risk Analysis.

  6. Initial cash/asset ratio and asset prices: an experimental study.

    Science.gov (United States)

    Caginalp, G; Porter, D; Smith, V

    1998-01-20

    A series of experiments, in which nine participants trade an asset over 15 periods, test the hypothesis that an initial imbalance of asset/cash will influence the trading price over an extended time. Participants know at the outset that the asset or "stock" pays a single dividend with fixed expectation value at the end of the 15th period. In experiments with a greater total value of cash at the start, the mean prices during the trading periods are higher, compared with those with greater amount of asset, with a high degree of statistical significance. The difference is most significant at the outset and gradually tapers near the end of the experiment. The results are very surprising from a rational expectations and classical game theory perspective, because the possession of a large amount of cash does not lead to a simple motivation for a trader to bid excessively on a financial instrument. The gradual erosion of the difference toward the end of trading, however, suggests that fundamental value is approached belatedly, offering some consolation to the rational expectations theory. It also suggests that there is a time scale on which an evolution toward fundamental value occurs. The experimental results are qualitatively compatible with the price dynamics predicted by a system of differential equations based on asset flow. The results have broad implications for the marketing of securities, particularly initial and secondary public offerings, government bonds, etc., where excess supply has been conjectured to suppress prices.

  7. A modelling approach for railway overhead line equipment asset management

    OpenAIRE

    Kilsby, Paul; Remenyte-Prescott, Rasa; Andrews, John

    2017-01-01

    The Overhead Line Equipment (OLE) is a critical sub-system of the 25kV AC overhead railway electrification system. If OLE asset management strategies can be evaluated using a whole lifecycle cost analysis that considers degradation processes and maintenance activities of the OLE components, the investment required to deliver the level of performance desired by railway customers and regulators can be based on evidence from the analysis results. A High Level Petri Net (HLPN) model, proposed in ...

  8. Analysis on Time-Lag Effect of Research and Development Investment in the Pharmaceutical Industry in Korea.

    Science.gov (United States)

    Lee, Munjae; Choi, Mankyu

    2015-08-01

    The aim of this study is to analyze the influence of the research and development (R&D) investment of pharmaceutical companies on enterprise value. The period of the empirical analysis is from 2000 to 2012, considering the period after the influence of the financial crisis. Financial statements and comments in general and internal transactions were extracted from TS-2000 of the Korea Listed Company Association, and data related to stock price were extracted from KISVALUE-III of National Information and Credit Evaluation Information Service Co., Ltd. STATA 12.0 was used as the statistical package for panel analysis. In the pharmaceutical firms, the influence of the R&D intensity with regard to Tobin's q was found to be positive. However, only the R&D expenditure intensities of previous years 2 and 5 (t-2 and t-5, respectively) were statistically significant (p company, such as generic, incrementally modified drugs, and biosimilar products.

  9. Evaluation of the Effect of Non-Current Fixed Assets on Profitability and Asset Management Efficiency

    Science.gov (United States)

    Lubyanaya, Alexandra V.; Izmailov, Airat M.; Nikulina, Ekaterina Y.; Shaposhnikov, Vladislav A.

    2016-01-01

    The purpose of this article is to investigate the problem, which stems from non-current fixed assets affecting profitability and asset management efficiency. Tangible assets, intangible assets and financial assets are all included in non-current fixed assets. The aim of the research is to identify the impact of estimates and valuation in…

  10. 78 FR 11702 - AdvisorShares Investments, LLC and AdvisorShares Trust; Notice of Application

    Science.gov (United States)

    2013-02-19

    ..., American Wealth Management, Trim Tabs Asset Management, LLC, Rockledge Advisors, LLC, Your Source Financial... of Investment Management, Office of Investment Company Regulation). SUPPLEMENTARY INFORMATION: The... organized as a Delaware statutory trust and is registered under the Act as an open-end management investment...

  11. The Investment Capacities of the Ukrainian Economy the EU countries

    Directory of Open Access Journals (Sweden)

    O. S.

    2017-02-01

    Full Text Available The article deals with selected aspects of investment in the context of the enhanced competition at investment markets and the need to increase the investment performance. A review of literary sources shows that investment capacities essentially refer to the economy’s capability to fund processes or phases related with generation of innovation, formation and modernization of fixed assets or intangible assets; development of education, research and information sectors; reproduction, support and creation of national wealth. It is emphasized that formation and realization of investment capacities in the economy can be attributed to processes that have significant effects for economic performance in the long run, especially when the capacities are innovative. The author’s definition of investment capacities of the economy is given, as the capacity to support financially the upward investment trend through accumulating fixed capital and increasing the profit rate from its generation in current and medium-term periods. The existing methodology for assessment of investment capacities at country level is analyzed; recommendations to improve the system of aggregated investment statistics, taking into account the Eurostat methodology, are given. Statistical indicators measuring the investment capacities in EU countries and Ukraine are analyzed. The analysis shows that the investment rate in Ukrainian industrial enterprises was 21.8% in 2014 and 19.6% in 2015, giving an indication of downward investment trend and the shrinking investment capacities of the national economy. Growth in the share of profit in the value added in 2015 by 6.7 percentage points (to 47.3% compared with 2014 is evidence that instead of investing internal resources, enterprises use them to cover financial loses or tend to take them off the national boundaries. Upward investment trend can be recovered by the increased supply of investment projects with low level of investment risk

  12. Key determinants of managing the marketing asset of global companies

    Directory of Open Access Journals (Sweden)

    Tatyana Tsygankova

    2016-12-01

    Full Text Available As a result of organization and summarization of key concepts of evolution of the marketing tools of global companies, the authors determined the role of the marketing assets in the system of modern marketing management (as a dialectically higher stage of development of the analyzed tools, which will allow overcoming the antagonistic contradiction of “P- and C-vectors” of their development. The article identified the optimal set of key elements of the system of marketing assets, which are the brand, customer loyalty, reputation, network cooperation, marketing strategy, internal marketing, marketing information system and marketing innovation. Due to correlation and regression analysis of the impact of each system elements on performance of global companies, the model of the "marketing asset octagon" was built as an integrative management tool. Also, as a result of construction of the said model, the authors identified the most profitable marketing assets, return on investment and development of competencies in the field of efficient management will bring the highest profit to the company. On the basis of summarizing the regional and branch features of managing the disparate elements of the marketing assets of global companies, the key regional and sectoral priorities of formation, development and improvement of existing concepts of the international marketing management were identified, particularly in terms of building an author’s integrative octagon model.

  13. CAIA level I an introduction to core topics in alternative investments

    CERN Document Server

    Anson, Mark J P; CAIA Association; Black, Keith H; Kazemi, Hossein

    2012-01-01

    The official study text for the Level I Chartered Alternative Investment Analyst (CAIA) exam The Chartered Alternative Investment Analyst (CAIA) designation is the financial industry's first and only globally recognized program that prepares professionals to deal with the ever-growing field of alternative investments. The second edition of CAIA Level I: An Introduction to Core Topics in Alternative Investments contains comprehensive insights on the alternative investment issues a potential Level I candidate would need to know about as they prepare for the exam. The information found here will help you build a solid foundation in alternative investment markets--with coverage of everything from the characteristics of various strategies within each alternative asset class to portfolio management concepts central to alternative investments. * Uses investment analytics to examine each alternative asset class * Examines quantitative techniques used by investment professionals * Addresses the unique attributes a...

  14. Speaking of Securitization of Financial Assets

    Directory of Open Access Journals (Sweden)

    Munteanu Bogdan

    2017-01-01

    Full Text Available The history of securitization dates back to “Middle Ages”, as it has emerged into today’s refinements under various ways of obtaining liquidity to finance business growth. As today many blame securitization and low interest rates for the American crisis, this paper aims at shedding light upon what this technique is, what are its benefits and why the past economic growth expanded based on pools of pledged assets. The main risk of securitization is that the systematic risk (beta of the market is less relevant then the assets’ inner risks (alpha, as this technique creates tailor made products with very specific features. The relevance of securitization will remain open for future analysis in America as basis for creating investment resources to sustain development after the gloomy days of September 2008.

  15. Digital asset ecosystems rethinking crowds and cloud

    CERN Document Server

    Blanke, Tobias

    2014-01-01

    Digital asset management is undergoing a fundamental transformation. Near universal availability of high-quality web-based assets makes it important to pay attention to the new world of digital ecosystems and what it means for managing, using and publishing digital assets. The Ecosystem of Digital Assets reflects on these developments and what the emerging 'web of things' could mean for digital assets. The book is structured into three parts, each covering an important aspect of digital assets. Part one introduces the emerging ecosystems of digital assets. Part two examines digital asset manag

  16. Long term cross asset management of critical structures

    International Nuclear Information System (INIS)

    Wenzel, H.

    2013-01-01

    Conclusions: Asset management requires tools for optimisation. SHM delivers the required information. SHM helps to reduce the uncertainties. Life Cycle methodologies are mature. Life Time Extension can be justified and monitored. Life Cycle Engineering is a must nowadays

  17. Knowledge asset management pertinent to information systems outsourcing

    CSIR Research Space (South Africa)

    Smuts, H

    2015-04-01

    Full Text Available Organisations have over time realised that leveraging their already accumulated knowledge assets are the most cost effective way to increase their competitive standing and to harness innovation. In choosing to outsource their information systems (IS...

  18. Investment Attractiveness of Food Industries in Ukraine

    Directory of Open Access Journals (Sweden)

    L. О.

    2017-02-01

    Full Text Available Effective investment is a factor for long-term company development. As enhancement of investment attractiveness is a required condition for economic growth and improvement of living standards, it needs to be on the agenda at government and company level. The article’s objective is to study investment attractiveness of food industries in Ukraine over 2012–2015. Investment attractiveness of food industries can be measured by indicators of liquidity, financial sustainability, and profit rate. Basically, food industries in Ukraine are attractive for investment, which is demonstrated by assessment of the financial indicators. The investment attractiveness worsened slightly in 2015 compared with 2014. The essential problems faced by food industries are shortage of internal funds and negative profit rate of all the activities, assets and own capital. Official statistical data and software package SPSS are used to build the dendrogram, allowing for dividing food industries by level of investment attractiveness into three groups: industries with high, medium and low level of investment attractiveness. It is found that meat industry is the one with the highest level of investment attractiveness. Also, investors should look positively at food-canning industry, oil and animal fat industry, flour-milling industry, starch and starch products industry, and other foods industry.

  19. Optimisation of Investment Resources at Small Enterprises

    Directory of Open Access Journals (Sweden)

    Shvets Iryna B.

    2014-03-01

    Full Text Available The goal of the article lies in the study of the process of optimisation of the structure of investment resources, development of criteria and stages of optimisation of volumes of investment resources for small enterprises by types of economic activity. The article characterises the process of transformation of investment resources into assets and liabilities of the balances of small enterprises and conducts calculation of the structure of sources of formation of investment resources in Ukraine at small enterprises by types of economic activity in 2011. On the basis of the conducted analysis of the structure of investment resources of small enterprises the article forms main groups of criteria of optimisation in the context of individual small enterprises by types of economic activity. The article offers an algorithm and step-by-step scheme of optimisation of investment resources at small enterprises in the form of a multi-stage process of management of investment resources in the context of increase of their mobility and rate of transformation of existing resources into investments. The prospect of further studies in this direction is development of a structural and logic scheme of optimisation of volumes of investment resources at small enterprises.

  20. The Cross-Section of Crypto-Currencies as Financial Assets: An Overview

    OpenAIRE

    Elendner, Hermann; Trimborn, Simon; Ong, Bobby; Lee, Teik Ming

    2016-01-01

    Crypto-currencies have developed a vibrant market since bitcoin, the first crypto-currency, was created in 2009. We look at the properties of cryptocurrencies as financial assets in a broad cross-section. We discuss approaches of altcoins to generate value and their trading and information platforms. Then we investigate crypto-currencies as alternative investment assets, studying their returns and the co-movements of altcoin prices with bitcoin and against each other. We evaluate their additi...

  1. Electrical actuators in asset management systems; Elektrische Stellantriebe in Asset-Management-Systemen

    Energy Technology Data Exchange (ETDEWEB)

    Herbstritt, Michael [AUMA Riester GmbH und Co. KG, Muellheim (Germany)

    2010-06-15

    The terms ''asset management'' and ''life-cycle management'' are nowadays popularly used to designate modern plant management. In the case of complex systems such as process-engineering plants, time and effort are necessary before an idea can be translated into data clear to all the persons involved, however. A key role is played in this context by NAMUR. This article discusses the potential benefits of asset management for electrical actuators and similar field devices and the part played by the NAMUR recommendations. (orig.)

  2. A Risk-Based Approach for Asset Allocation with A Defaultable Share

    Directory of Open Access Journals (Sweden)

    Yang Shen

    2018-02-01

    Full Text Available This paper presents a novel risk-based approach for an optimal asset allocation problem with default risk, where a money market account, an ordinary share and a defaultable security are investment opportunities in a general non-Markovian economy incorporating random market parameters. The objective of an investor is to select an optimal mix of these securities such that a risk metric of an investment portfolio is minimized. By adopting a sub-additive convex risk measure, which takes into account interest rate risk, as a measure for risk, the investment problem is discussed mathematically in a form of a two-player, zero-sum, stochastic differential game between the investor and the market. A backward stochastic differential equation approach is used to provide a flexible and theoretically sound way to solve the game problem. Closed-form expressions for the optimal strategies of the investor and the market are obtained when the penalty function is a quadratic function and when the risk measure is a sub-additive coherent risk measure. An important case of the general non-Markovian model, namely the self-exciting threshold diffusion model with time delay, is considered. Numerical examples based on simulations for the self-exciting threshold diffusion model with and without time delay are provided to illustrate how the proposed model can be applied in this important case. The proposed model can be implemented using Excel spreadsheets.

  3. Life insurance investment and stock market participation in Europe.

    Science.gov (United States)

    Cavapozzi, Danilo; Trevisan, Elisabetta; Weber, Guglielmo

    2013-03-01

    In most European countries life insurance has played a key role in household portfolios, to the extent that it has often been the first asset ever purchased. In this paper we use life history data from a host of European countries to investigate the role of life insurance investment in shaping individuals' attitudes towards participation in stocks and mutual funds. We show that individuals who purchased a life insurance policy are more likely to invest in stocks and mutual funds later. On the one hand, these findings support the notion that life insurance policies play an educational role in financial investment. On the other hand, they are also consistent with behavioural models where economic agents are first concerned with avoiding unacceptable adverse scenarios by purchasing low risk investments, such as life insurance policies, and then invest in riskier assets, such as stocks and mutual funds, to obtain higher economic returns. Copyright © 2012 Elsevier Ltd. All rights reserved.

  4. CONSIDERATIONS REGARDING THE DIVERSITY OF TANGIBLE ASSETS IN THE LIGHT OF THE NEW ACCOUNTING REGULATIONS

    Directory of Open Access Journals (Sweden)

    Maria NEGRILA

    2017-12-01

    Full Text Available Fixed assets represent an important category in the patrimonial structure of any entity, because they have a complex structure and they materialize in items with significant values. As regards the analysis of this group, we can observe the existence of a significant volume of empirical studies regarding the usefulness of the accounting information related to the tangible assets for different categories of potential users of the annual financial statements (among which managers and investors are distinguished with priority. This shows that the place occupied by these assets in the patrimony of the entity is of significant importance. Diverse categories are individually recognized in the accounts as follows: land, landscaping, construction, real estate investments, productive biological assets, tangible assets for the exploration and evaluation of mineral resources. According to the professional reasoning, it is necessary that each item to be registered separately, as a good individual, whether it was purchased in a transaction involving a mix of elements.

  5. Dynamical insurance models with investment: Constrained singular problems for integrodifferential equations

    Science.gov (United States)

    Belkina, T. A.; Konyukhova, N. B.; Kurochkin, S. V.

    2016-01-01

    Previous and new results are used to compare two mathematical insurance models with identical insurance company strategies in a financial market, namely, when the entire current surplus or its constant fraction is invested in risky assets (stocks), while the rest of the surplus is invested in a risk-free asset (bank account). Model I is the classical Cramér-Lundberg risk model with an exponential claim size distribution. Model II is a modification of the classical risk model (risk process with stochastic premiums) with exponential distributions of claim and premium sizes. For the survival probability of an insurance company over infinite time (as a function of its initial surplus), there arise singular problems for second-order linear integrodifferential equations (IDEs) defined on a semiinfinite interval and having nonintegrable singularities at zero: model I leads to a singular constrained initial value problem for an IDE with a Volterra integral operator, while II model leads to a more complicated nonlocal constrained problem for an IDE with a non-Volterra integral operator. A brief overview of previous results for these two problems depending on several positive parameters is given, and new results are presented. Additional results are concerned with the formulation, analysis, and numerical study of "degenerate" problems for both models, i.e., problems in which some of the IDE parameters vanish; moreover, passages to the limit with respect to the parameters through which we proceed from the original problems to the degenerate ones are singular for small and/or large argument values. Such problems are of mathematical and practical interest in themselves. Along with insurance models without investment, they describe the case of surplus completely invested in risk-free assets, as well as some noninsurance models of surplus dynamics, for example, charity-type models.

  6. Decentralized investment management: evidence from the pension fund industry

    OpenAIRE

    Blake, David; Timmermann, Allan; Tonks, Ian; Wermers, Russ

    2010-01-01

    The past few decades have seen amajor shift from centralized to decentralized investment management by pension fund sponsors, despite the increased coordination problems that this brings. Using a unique, proprietary dataset of pension sponsors and managers, we identify two secular decentralization trends: sponsors switched (i) from generalist (balanced) to specialist managers across asset classes and (ii) from single to multiple competing managers within each asset class. We study the effe...

  7. Gender, Livestock and Asset Ownership

    International Development Research Centre (IDRC) Digital Library (Canada)

    measure of gender inequality and women's economic empowerment compared to indicators such as income. The role of livestock as an asset for women has been analysed in Kenya, Tanzania .... were a more common source in Tanzania and.

  8. Developing formal asset management plans

    Science.gov (United States)

    2014-06-01

    This report highlights key recommendations and best practices identified at the peer exchange on Transportation Asset Management Plans (TAMP), held on February 5 and 6, 2014, in Columbia, South Carolina. This event was sponsored by the Transportation...

  9. Asset management techniques for transformers

    International Nuclear Information System (INIS)

    Abu-Elanien, Ahmed E.B.; Salama, M.M.A.

    2010-01-01

    In a deregulated/reformed environment, the electric utilities are under constant pressure for reducing operating costs, enhancing the reliability of transmission and distribution equipments, and improving quality of power and services to the customer. Moreover, the risk involved in running the system without proper attention to assets integrity in service is quite high. Additionally, the probability of losing any equipment vital to the transmission and distribution system, such as power and distribution transformers, is increasing especially with the aging of power system's assets. Today the focus of operating the power system is changed and efforts are being directed to explore new approaches/techniques of monitoring, diagnosis, condition evaluation, maintenance, life assessment, and possibility of extending the life of existing assets. In this paper, a comprehensive illustration of the transformer asset management activities is presented. The importance of each activity together with the latest researches done in the area is highlighted. (author)

  10. Asset correlations and credit portfolio risk: an empirical analysis

    OpenAIRE

    Düllmann, Klaus; Scheicher, Martin; Schmieder, Christian

    2007-01-01

    In credit risk modelling, the correlation of unobservable asset returns is a crucial component for the measurement of portfolio risk. In this paper, we estimate asset correlations from monthly time series of Moody's KMV asset values for around 2,000 European firms from 1996 to 2004. We compare correlation and value-atrisk (VaR) estimates in a one-factor or market model and a multi-factor or sector model. Our main finding is a complex interaction of credit risk correlations and default probabi...

  11. Asset Pricing and Monetary Policy

    OpenAIRE

    Bingbing Dong

    2014-01-01

    This paper examines the role of money in understanding the behavior of asset prices and whether and how monetary policy should react to asset prices such as stock prices and equity premiums. To do so, I introduce money via the form of transaction cost into a production economy with limited stock market participation where agents with lower inter-temporal elasticity of substitution (IES), called non-stockholders, have no access to stock market. In addition to facilitating transactions of consu...

  12. Choosing What to Protect When Attacker Resources and Asset Valuations are Uncertain

    Directory of Open Access Journals (Sweden)

    Kjell Hausken

    2014-01-01

    Full Text Available The situation has been modelled where the attacker's resources are unknown to the defender. Protecting assets presupposes that the defender has some information on the attacker's resource capabilities. An attacker targets one of two assets. The attacker's resources and valuations of these assets are drawn probabilistically. We specify when the isoutility curves are upward sloping (the defender prefers to invest less in defense, thus leading to higher probabilities of success for attacks on both assets or downward sloping (e.g. when one asset has a low value or high unit defense cost. This stands in contrast to earlier research and results from the uncertainty regarding the level of the attacker's resources. We determine which asset the attacker targets depending on his type, unit attack costs, the contest intensity, and investment in defense. A two stage game is considered, where the defender moves first and the attacker moves second. When both assets are equivalent and are treated equivalently by both players, an interior equilibrium exists when the contest intensity is low, and a corner equilibrium with no defense exists when the contest intensity is large and the attacker holds large resources. Defense efforts are inverse U shaped in the attacker's resources. (original abstract

  13. Misplaced Inventory and Lead-Time in the Supply Chain: Analysis of Decision-Making on RFID Investment with Service Level

    Directory of Open Access Journals (Sweden)

    Li-Hao Zhang

    2014-01-01

    Full Text Available Radio-frequency identification (RFID, as the key technology of Internet of Things (IoT, has been hailed as a major innovation to solve misplaced inventory and reduce lead-time. Many retailers have been pushing their suppliers to invest this technology. However, its associated costs seem to prohibit its widespread application. This paper analyzes the situation of service level in a retail supply chain, which has resulted from misplaced inventory and lead-time. By newsvendor model, we analyze the difference between with- and without-RFID technologies in service level of centralized and decentralized supply chains, respectively. Then with different service levels, we determine the tag cost thresholds at which RFID technology investment becomes profitable in centralized and decentralized supply chains, respectively. Furthermore, we apply a linear transfer payment coefficient strategy to coordinate with the decentralized supply chain. It is found that whether the adoption of RFID technology improves the service level depends on the cost of RFID tag in the centralized system, but it improves the service level in the decentralized system when only the supplier bears the cost of RFID tag. Moreover, the same cost thresholds of RFID tag with different service levels exist in both the centralized and the decentralized cases.

  14. A proposal to finance low carbon investment in Europe

    International Nuclear Information System (INIS)

    Aglietta, Michel; Espagne, Etienne; Perrissin Fabert, Baptiste

    2015-02-01

    This year, Europe is confronted with a critical double challenge: addressing the climate change issue and pulling itself out of a persistent low growth trap. Today these two challenges are addressed separately. On the one hand, climate negotiations must reach a historical agreement in the Paris conference in December 2015. On the other hand, the Juncker Plan of 315 billion euros of investment, and above all the ECB announcement of a massive purchase of assets for an amount of around 1100 billion euros, must help to avoid a deflationary spiral and stimulate a new flow of investments. Regarding climate policies, public regulators have essentially focused on a carbon price, which remains today at an insufficient level to trigger the financing needs of the low carbon transition. The potential of the banking and saving channels (targets of the asset purchase program of the ECB) to scale up climate finance is however neglected. This 'Note d'analyse' proposes to make private low-carbon assets eligible for the ECB asset purchase program. The carbon impact of these assets would benefit from a public guarantee that would value their carbon externality at a level sufficient to compensate the absence of an adequate carbon price. This mechanism would immediately impact the investment decisions of private actors with a positive effect on growth. It would also strongly incite governments to progressively implement carbon pricing tools to ensure that the public backing of the value of the carbon assets remains neutral with respect to public budgets. (authors)

  15. THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT

    Directory of Open Access Journals (Sweden)

    Hristea Anca Maria

    2013-07-01

    Full Text Available Real estate investments are one of the most attractive business opportunities in the context of the contemporary economy, generally marked by economic recession and especially by monetary and financial instability. Last years international reporting concluded that deepening the global economic crisis determined an increase of the real estate request, while despite all expectations one did not assist a crash of the prices. Economic reality showed that real estate assets value (buildings, land kept proportions with economic reality over time. A comparison between stock exchange market and the real estate market shows that while an movables investor (investments in stocks, bonds or life insurance might lose completely his initial investment, the investments in real estate assets, such as buildings, would keep their quality as goods and would also keep a value to better resist shocks and thus allowing an increase of the capital. When appreciating the value of an investment the first things to analyze are the return, liquidity and risk criteria, which are essential in real estate investments too. Stimulating real estate market must be not only a wish but also a reality of global economy, since it can correct many of the aggregated indicators of a country. Containing scientifically detached from economic practice, this article is addressed to readers with interests in real estate investment. The language is usually referred particularly to the qualitative side of the real estate market approach. The feasibility of the real estate investments is being conditioned by their capacity to generate important profits, on the background of the reduction of the duration of recovery of their value. The economic instability from the last couple of years has generated fears and failures but, paraphrasing Johann Wolfgang von Goethe, courage is a mixture of genius, magic and power that helps us succeed in everything we set our mind to. The investments on the real

  16. Investing in Diamonds

    NARCIS (Netherlands)

    Renneboog, Luc

    2015-01-01

    This paper examines the risk-return characteristics of investment grade gems (white diamonds, colored diamonds and other types of gems including sapphires, rubies, and emeralds). The transactions are coming from gem auctions and span the period 1999-2012. Over our time frame, the annual nominal USD

  17. 24 CFR 990.270 - Asset management.

    Science.gov (United States)

    2010-04-01

    ... 24 Housing and Urban Development 4 2010-04-01 2010-04-01 false Asset management. 990.270 Section... THE PUBLIC HOUSING OPERATING FUND PROGRAM Asset Management § 990.270 Asset management. As owners, PHAs have asset management responsibilities that are above and beyond property management activities. These...

  18. Financier-led asset lease model

    NARCIS (Netherlands)

    Zhao, X.; Angelov, S.A.; Grefen, P.W.P.J.; Meersman, R.A.; Dillon, T.S.

    2010-01-01

    Nowadays, the business globalisation trend drives organisations to spread their business worldwide, which in turn generates vast asset demands. In this context, broader asset channels and higher financial capacities are required to boost the asset lease sector to meet the increasing asset demands

  19. Irreversible investments revisited

    DEFF Research Database (Denmark)

    Sandal, Leif K.; Steinshamn, Stein I.; Hoff, Ayoe

    2007-01-01

    A multi-dimensional, non-linear dynamic model in continuous time is presented for the purpose of finding the optimal combination of exploitation and capital investment in optimal renewable resource management. Non-malleability of capital is incorporated in the model through an asymmetric cost......-function of investment, and investments can be both positive and negative. Exploitation is controlled through the utilisation rate of available capital. A novel feature in this model is that there are costs associated with the available capital whether it is utilised or not. And, in contrast to most of the previous...... literature, the state variables, namely the physical capital and the biological resource, enter the objective function. Due to the nonlinearities in this model some of the results are in sharp contrast to previous literature....

  20. Steam generator asset management: integrating technology and asset management

    International Nuclear Information System (INIS)

    Shoemaker, P.; Cislo, D.

    2006-01-01

    Asset Management is an established but often misunderstood discipline that is gaining momentum within the nuclear generation industry. The global impetus behind the movement toward asset management is sustainability. The discipline of asset management is based upon three fundamental aspects; key performance indicators (KPI), activity-based cost accounting, and cost benefits/risk analysis. The technology associated with these three aspects is fairly well-developed, in all but the most critical area; cost benefits/risk analysis. There are software programs that calculate, trend, and display key-performance indicators to ensure high-level visibility. Activity-based costing is a little more difficult; requiring a consensus on the definition of what comprises an activity and then adjusting cost accounting systems to track. In the United States, the Nuclear Energy Institute's Standard Nuclear Process Model (SNPM) serves as the basis for activity-based costing. As a result, the software industry has quickly adapted to develop tracking systems that include the SNPM structure. Both the KPI's and the activity-based cost accounting feed the cost benefits/risk analysis to allow for continuous improvement and task optimization; the goal of asset management. In the case where the benefits and risks are clearly understood and defined, there has been much progress in applying technology for continuous improvement. Within the nuclear generation industry, more specialized and unique software systems have been developed for active components, such as pumps and motors. Active components lend themselves well to the application of asset management techniques because failure rates can be established, which serves as the basis to quantify risk in the cost-benefits/risk analysis. A key issue with respect to asset management technologies is only now being understood and addressed, that is how to manage passive components. Passive components, such as nuclear steam generators, reactor vessels

  1. Managing Assets in The Infrastructure Sector

    Directory of Open Access Journals (Sweden)

    T.P. van Houten

    2010-09-01

    Full Text Available In view of the importance of managing assets and the lack of research in managing assets in the infrastructure sector, we develop an asset management model in this study. This model is developed in line with the unique characteristics of the infrastructure assets and asset management principles and criteria. In the proposed model, we consider activities at three levels, namely the strategical, tactical and operational levels. The interviews with experts in asset management and officials in several Dutch organizations have proven the potential of our asset management model.

  2. Investment Strategy in an Inflationary Environment

    OpenAIRE

    Zvi Bodie

    1981-01-01

    This paper addresses the issue of how an investor concerned about the real rate of return on his investment portfolio should allocate his funds among four major asset classes: stocks, bonds, bills and commodity futures contracts. It employs the Markowitz mean-variance framework to derive estimates of the pre-tax, real risk-return tradeoff curve currently facing an investor in the U.S. capital markets. Some of the major findings are: 1) Bills are the cornerstone of any low-risk investment stra...

  3. PEMILIHAN SAHAM YANG OPTIMAL MENGGUNAKAN CAPITAL ASSET PRICING MODEL (CAPM

    Directory of Open Access Journals (Sweden)

    Dioda Ardi Wibisono

    2017-08-01

    Full Text Available Optimal portfolio is the basis for investors to invest in stock. Capital Asset Pricing Model (CAPM is a method to determine the value of the risk and return of a company stock. This research uses a secondary data from the closing price of the monthly stock price (monthly closing price, Stock Price Index (SPI, and the monthly SBI rate. The samples of this research are 41 stocks in LQ45 February-July 2015 on the Indonesian Stock Exchange (ISE. The study period is during 5 year from October 2010 - October 2015. The result of analysis shows that the optimal portfolio consists of 18 companies. The average return of the optimal portfolio is higher than the average risk-free return (SBI rate and the average market return. This proves that investing in stocks is more profitable than a risk-free investment. � Keywords: Stock, CAPM, return, risk�

  4. Estimating Phenomenological Parameters in Multi-Assets Markets

    Science.gov (United States)

    Raffaelli, Giacomo; Marsili, Matteo

    Financial correlations exhibit a non-trivial dynamic behavior. This is reproduced by a simple phenomenological model of a multi-asset financial market, which takes into account the impact of portfolio investment on price dynamics. This captures the fact that correlations determine the optimal portfolio but are affected by investment based on it. Such a feedback on correlations gives rise to an instability when the volume of investment exceeds a critical value. Close to the critical point the model exhibits dynamical correlations very similar to those observed in real markets. We discuss how the model's parameter can be estimated in real market data with a maximum likelihood principle. This confirms the main conclusion that real markets operate close to a dynamically unstable point.

  5. 77 FR 65234 - Notice of Intention To Cancel Registrations of Certain Investment Advisers Pursuant to the...

    Science.gov (United States)

    2012-10-25

    ...-71854 ACCESS GLOBAL ADVISORS 801-70973 ADVANCED FINANCIAL SOLUTIONS, INC. 801-71094 AFC ASSET MANAGEMENT... INVESTMENT COUNSEL, LLC 801-70312 LIGHTHOUSE CAPITAL PARTNERS, LLC 801-56394 LITCHFIELD & NELSON, INC 801...

  6. Pengaruh Investment Oportunity Set Terhadap volume perdagangan Saham Perusahaan Go Public Di...

    OpenAIRE

    Gusrifa, Rahmad

    2007-01-01

    Tujuan penelitian ini adalah untuk menguji pengaruh investment opportunity set terhadap volume perdagangan saham antara perusahan yang berpotensi tumbuh dan perusahaan yang tidak berpotensi tumbuh. Ada enam proksi yang digunakan sebagai variabel 10S, yaitu rasio market to hook value of assets (A7/VA HVA), ratio market to hook value of equity (WERI/A), rusio price to earning (flip), rust capital expenditure to hook value of assets (CAP 13114), rasio capital expenditure to market value of asset...

  7. Towards a listed real estate investment valuation model

    Directory of Open Access Journals (Sweden)

    Douw Gert Brand Boshoff

    2013-09-01

    Full Text Available This paper presents a Listed Real Estate Investment Valuation Model that was developed to investigate the movement in indirect real estate investment through the consideration of the underlying assets of property loan stock companies. Specific reference is given to information that is made available to shareholders by way of annual financial statements in order to determine the extent to which shareholders can make investment decisions based on this information. The study enhances the knowledge of direct vs. indirect real estate investment behaviour and provides more insight into price discovery in the property sector.

  8. CHALLENGES IN PERFORMANCE METRICS IN SOCIALLY RESPONSIBLE INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Kuti Monika

    2014-07-01

    Full Text Available Sustainability issues have been penetrating the financial world over the decades at corporate and sector levels. In the field of sustainable finance, socially responsible investments (SRI are a dynamically evolving segment which has become a special industry in asset allocation and investments out of a niche movement. This article aims to highlight the trends, investors’ motives and performances of these investments. It concludes that controversies around the terminology, performance metrics and return of socially responsible investments, have not been resolved in academic literature yet.

  9. Understanding the Effects of Marriage and Divorce on Financial Investments

    DEFF Research Database (Denmark)

    Christiansen, Charlotte; Joensen, Juanne S.; Rangvid, Jesper

    2015-01-01

    We investigate how changes in marital status affect financial investments and how these effects vary with background risk. We use detailed register-based panel data and difference-in-differences estimatiors to benchmark common unobserved influences on financial investments. Women increase...... the fraction of wealth invested in stocks after marriage and decrease it after divorce, whereas men show the opposite behavior. Households whose joint labor income risk is reduced more by marriage have a higher increase in their exposure to risky assets in marriage. Thus income risk sharing in the household...... is important for financial risk taking and investment responses to marital transitions...

  10. Developing 2 C-compatible investment criteria

    Energy Technology Data Exchange (ETDEWEB)

    Roeser, Frauke [NewClimate - Institute for Climate Policy and Global Sustainability gGmbH, Bonn (Germany); Weischer, Lutz [Germanwatch e.V., Koeln (Germany); Thomae, Jakob [2degrees Investing Initiative, New York, NY (United States); Hoehne, Niklas; Hagemann, Markus; El Alaoui, Alexander; Bals, Christoph; Eckstein, David; Kreft, Soenke; Rosse, Morten

    2015-11-30

    This report studies the development of criteria for assessing the compatibility of financial investments with the international goal to limit global temperature increase to below 2 C above pre-industrial levels. The findings are intended as a starting point and a key input for a longer term process to develop consensus-based 2 C investing criteria. The focus here is placed on investments in projects and physical assets, in particular of development and climate finance organisations. In order to limit global temperature increase to 2 C, global greenhouse gas (GHG) emissions will have to be reduced significantly, eventually to zero, during the course of this century. This requires shifting capital from high to low carbon investments as well as significant capital mobilisation for investments in 2 C-compatible infrastructure. Given the long lifetime of physical assets, and the urgency of decarbonisation over the coming decades, this needs to begin today. Public financial institutions can play a prominent role in contributing to aligning investment flows with the 2 C limit, as well as in closing the current infrastructure investment gap, responding to their explicit or implicit climate mandates and leadership role in the finance sector. The majority of international financial institutions integrate climate considerations into their finance decisions to some degree, and are familiar with different types of criteria, including positive and negative lists, qualitative and quantitative benchmarks, and the use of shadow carbon pricing. However, current approaches do not link to the 2 C limit. 2 C investment criteria are therefore needed to guide investors in this regard. Such criteria may also support other purposes, including an understanding of climate risks and improved reporting and accountability.

  11. Developing 2 C-compatible investment criteria

    International Nuclear Information System (INIS)

    Roeser, Frauke; Weischer, Lutz; Thomae, Jakob; Hoehne, Niklas; Hagemann, Markus; El Alaoui, Alexander; Bals, Christoph; Eckstein, David; Kreft, Soenke; Rosse, Morten

    2015-01-01

    This report studies the development of criteria for assessing the compatibility of financial investments with the international goal to limit global temperature increase to below 2 C above pre-industrial levels. The findings are intended as a starting point and a key input for a longer term process to develop consensus-based 2 C investing criteria. The focus here is placed on investments in projects and physical assets, in particular of development and climate finance organisations. In order to limit global temperature increase to 2 C, global greenhouse gas (GHG) emissions will have to be reduced significantly, eventually to zero, during the course of this century. This requires shifting capital from high to low carbon investments as well as significant capital mobilisation for investments in 2 C-compatible infrastructure. Given the long lifetime of physical assets, and the urgency of decarbonisation over the coming decades, this needs to begin today. Public financial institutions can play a prominent role in contributing to aligning investment flows with the 2 C limit, as well as in closing the current infrastructure investment gap, responding to their explicit or implicit climate mandates and leadership role in the finance sector. The majority of international financial institutions integrate climate considerations into their finance decisions to some degree, and are familiar with different types of criteria, including positive and negative lists, qualitative and quantitative benchmarks, and the use of shadow carbon pricing. However, current approaches do not link to the 2 C limit. 2 C investment criteria are therefore needed to guide investors in this regard. Such criteria may also support other purposes, including an understanding of climate risks and improved reporting and accountability.

  12. Family Assets and Liabilities in the Innovation Process

    DEFF Research Database (Denmark)

    Bennedsen, Morten; Foss, Nicolai Juul

    2015-01-01

    Innovation in family firms is often driven by family assets, valuable resources that are particularly prevalent in family firms. For example, they have particularly strong networks that can be deployed in an innovation context. These family assets can over time atrophy and stifle rather than...... stimulate innovation performance. However, family firms can fight this process by institutionalizing innovation within the family and the firm by means of family and corporate governance and through incentivizing key individuals in the innovation process....

  13. A tactical asset allocation strategy that exploits variations in VIX

    OpenAIRE

    Richard Cloutier; Arsen Djatej; Dean Kiefer

    2017-01-01

    Buy and hold strategies make staying disciplined difficult for investors, especially given the variability of returns for different asset classes/strategies during divergent market conditions. Market timing strategies, on the other hand, present significant theoretical benefits, but in reality these benefits are difficult to obtain. Tactical asset allocation, where limited deviations from the strategic allocation are allowed permits the portfolio manager to take advantage of market conditions...

  14. Tidemark's, the key assets in times of crisis management; Las marcas, activos clade de la gestion en tiempos de crisis

    Energy Technology Data Exchange (ETDEWEB)

    Brujo, G.

    2011-07-01

    The financial crisis is challenging all the companies and their main audiences. This article analyzes the brand importance and how in this time of economic recession they become essential for the business, the customers, the products, the services and the competence. Also the authors goes through some examples of brand managing to show how they help to increase the value of the companies and to hide from the adverse situation we are leaving with. (Author) 5 refs.

  15. ISO 55000: Creating an asset management system.

    Science.gov (United States)

    Bradley, Chris; Main, Kevin

    2015-02-01

    In the October 2014 issue of HEJ, Keith Hamer, group vice-president, Asset Management & Engineering at Sodexo, and marketing director at Asset Wisdom, Kevin Main, argued that the new ISO 55000 standards present facilities managers with an opportunity to create 'a joined-up, whole lifecycle approach' to managing and delivering value from assets. In this article, Kevin Main and Chris Bradley, who runs various asset management projects, examine the process of creating an asset management system.

  16. Essays in Investment Theory

    International Nuclear Information System (INIS)

    Bobtcheff, C.

    2006-01-01

    This thesis analyzes different aspects of the investment decision. In the first chapter, we consider an economy in which different energy sources may produce electricity. The model focuses first on the optimal use of a hydroelectric dam from which water can be extracted and which is supplied with a random water flow. The presence of constraints on a minimal and on a maximal storage capacity makes electricity consumption smoothing possible only when the quantity of water available to the agent lies in a certain range that we determine. In a second stage, we introduce a second energy source with unlimited supply at some exogenous cost. The marginal propensity to produce hydroelectricity is an increasing function of the second technology cost. The availability at a low cost of the alternative source improves thus time diversification. Finally, the optimal electric park is composed of a number of dams that is increasing with the cost of the second technology. Chapter 2 studies the decision of an investor who wants to undertake an irreversible investment when he has the choice between two mutually exclusive projects that present input price and/or output price uncertainty. We prove that the investor decides not to invest in any project when each investment generates the same payoff independently of its size. Therefore, some inaction region appears in which the investor prefers not to invest whereas an immediate investment would have been optimal if no choice had been available: a 'choice value' is thus created. A key feature of this bidimensional degree of uncertainty is thus that the payoff generated by each project is not a sufficient statistic to make a rational investment. In this context, our analysis provides a new motive for waiting to invest: the benefits associated with the dominance of one project over the other. In chapter 3, we study the investment decision problem of a duo-poly with price competition on a market of finite size driven by stochastic taste

  17. Design, Development and Implementation of Decision Support Systems for Private Equity Investment

    OpenAIRE

    Vroomen, Paul

    2017-01-01

    The objective of this research is to design, develop and implement an intelligent decision support system (IDSS) for making rational private equity investment decisions. (Private equity investments are capital investments in enterprises that are not traded on public equity markets; they include Equity Buy-Out, Venture Capital, and the new Equity Crowd Funding (ECF) asset classes). The design and development of the IDSS requires the integration of investment science (valuation theory, portfoli...

  18. Assets Held for Sale and Discontinued Operations – Evaluation of Liquidity – Determination of Ratio – or Necessity of Adjustment?

    Directory of Open Access Journals (Sweden)

    Grazyna Voss

    2015-03-01

    Full Text Available The change in the use of an asset results from economic conditions and requires that a company revalue the asset and adjusts its value by costs of sale or liquidation. The current value of the asset determined in that way influences the financial result of the company and enables the movement of value from non-current assets to current assets. This change has an impact on the evaluation of financial situation and financial ratios.The aim of this article is to describe principles of measurement and presentation of assets held for sale and application of financial analysis in order to assess risks by potential investors. The purpose of this work constitutes part of a wide-ranging discussion on the directions of changes in financial reporting and principles of effective investing.

  19. Incarceration and Household Asset Ownership.

    Science.gov (United States)

    Turney, Kristin; Schneider, Daniel

    2016-12-01

    A considerable literature documents the deleterious economic consequences of incarceration. However, little is known about the consequences of incarceration for household assets-a distinct indicator of economic well-being that may be especially valuable to the survival of low-income families-or about the spillover economic consequences of incarceration for families. In this article, we use longitudinal data from the Fragile Families and Child Wellbeing Study to examine how incarceration is associated with asset ownership among formerly incarcerated men and their romantic partners. Results, which pay careful attention to the social forces that select individuals into incarceration, show that incarceration is negatively associated with ownership of a bank account, vehicle, and home among men and that these consequences for asset ownership extend to the romantic partners of these men. These associations are concentrated among men who previously held assets. Results also show that post-incarceration changes in romantic relationships are an important pathway by which even short-term incarceration depletes assets.

  20. Investment Opportunities & Job Information

    Institute of Scientific and Technical Information of China (English)

    2006-01-01

    Shanghai Vacancies from Chinajob.com China Pacific Insurance (Group) Co. Ltd. Senior Investment Manager and Senior Accounting Analyst are needed, full time; annual salary: $50,000-100,000. China Europe International Business School wants professors or people with doctoral degrees to teach Accounting, Finance, Human Resources and Management, Strategic and General Management, Carving out Management, Production and Transportation Management, and Information Management Systems, full time. Salary starts at $1...