34 CFR 668.172 - Financial ratios.

Science.gov (United States)

2010-07-01

... effect of changes in accounting principles, and the effect of changes in accounting estimates; (2) May... intangible assets defined as intangible in accordance with generally accepted accounting principles; and (5... 34 Education 3 2010-07-01 2010-07-01 false Financial ratios. 668.172 Section 668.172 Education...

The effect of financial ratios on systematic risk index

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Ali Faez

2013-11-01

Full Text Available This paper investigates the relationship between financial ratios and indicator of systemic risk in the Tehran Stock Exchange. The study selects 73 manufacturing companies of the Tehran Stock Exchange market over the period 2003-2010. The study first calculates the independent variables in the form of financial ratios and then the ratios affecting the systematic risk index are extracted using entropy method. The output of this stage is the introduction of five influential financial indicators as the independent variables of the study. Using t-test and Pearson correlation coefficient the rate of independent variables effect on the systematic risk index is evaluated and finally, using stepwise regression method, the effect of independent variables on the dependent variable is examined. According to results of our survey, the correlation coefficient of such indices as “the ratio of stock price to the profit of each share”, “Current ratio”, “each share profit ratio” and “the stockholders rights return ratio” have respectively the highest correlation with the systematic risk index.

Financial ratios in diagnostic radiology practices: variability and trends.

Science.gov (United States)

Hogan, Christopher; Sunshine, Jonathan H

2004-03-01

To evaluate variation in financial ratios for radiology practices nationwide and trends in these ratios and in payments. In 1999, the American College of Radiology surveyed radiology practices by mail. The final response rate was 66%. Weighting was used to make responses representative of all radiology practices in the United States. Self-reported financial ratios (payments, charges, accounts receivable turnover) were analyzed; 449 responses had usable data on these ratios. Comparison with results of a similar 1992 survey and combined analysis with Medicare data on billed charges provided information on trends. All measures of payment collections declined sharply from 1992 to 1999, with the gross collections rate (revenues as percentage of billed charges) decreasing from 71% to 55%. Average payment for a typical radiology service decreased approximately 4% in dollar terms or approximately 19% in inflation-adjusted terms. In 1999, nonmetropolitan practices appeared to fare better than others. Among insurers, Medicaid stood out as a low and slow payer, but neither managed care nor Medicare had a consistent effect on financial ratios. The gross collections rate varied substantially across geographic areas, as did, in an inverse pattern, the level of billed charges. One-quarter of practices had accounts receivable equal to 90 or more days of billings. The opposing geographic pattern of billed charges and gross collection rate suggests that geographic variation in the latter is driven more by variation in billed charges than by variation in payment levels. Radiologists saw a substantial decrease in the real (inflation-adjusted) value of payment per service during the 1990s. The large fraction of practices with accounts receivable of 90 or more days of billings-a level considered potentially imprudent by financial management advisors-suggests that many practices should improve financial management and that state prompt-payment laws have not had a substantial positive

Financial Ratio Analysis: the Development of a Dedicated Management Information System

Directory of Open Access Journals (Sweden)

Voicu-Dan Dragomir

2007-01-01

Full Text Available This paper disseminates the results of the development process for a financial analysis information system. The system has been subject to conceptual design using the Unified Modeling Language (UML and has been implemented in object-oriented manner using the Visual Basic .NET 2003 programming language. The classic financial analysis literature is focused on the chain-substitution method of computing the prior-year to current-year variation of linked financial ratios. We have applied this technique on the DuPont System of analysis concerning the Return on Equity ratio, by designing several structural UML diagrams depicting the breakdown and analysis of each financial ratio involved. The resulting computer application offers a flexible approach to the analytical tools: the user is required to introduce the raw data and the system provides both table-style and charted information on the output of computation. User-friendliness is also a key feature of this particular financial analysis application.

FRAN: financial ratio analysis and more (Version 2.0 for Windows)

Science.gov (United States)

Bruce G. Hansen; Arnold J., Jr. Palmer

1999-01-01

FRAN is a computer-based, stand-alone program designed to generate important financial and operating ratios from tax and wage forms filed with the Internal Revenue Service. FRAN generates standard profitability, financial/leverage, liquidity/solvency, and activity ratios, as well as unique measures of workforce and capital cost and acquisition. Information produced by...

A BLUEPRINT OF RATIO ANALYSIS AS INFORMATION BASIS OF CORPORATION FINANCIAL MANAGEMENT

Directory of Open Access Journals (Sweden)

Maja Andrijasevic

2014-10-01

Full Text Available Ratio analysis, due to its simplicity, has, for a long time, been one of the most frequently used methods of financial analysis. However, the question is how its results are a good basis for assessment of financial condition of a company by the external users of financial reports. If one takes into account numerous limitations, one can rather say that ratio analysis is a rough approximation of financial situation. What are the limitations, can they be overcome and in what way, can they, at least, be reduced, and to what extent the user has to take a reserved attitude when making business decisions on the basis of ratio analysis? The last but not the least, we should accept the fact that by insisting on financial analysis other aspects of the analyses are, in practice frequently marginalized, thus neglecting the fact that actually they themselves in the most direct manner point to the causes of potential disorders in business activities of a company.

A Financial Ratio Analysis of For-Profit and Non-Profit Rural Referral Centers

Science.gov (United States)

McCue, Michael J.; Nayar, Preethy

2009-01-01

Context: National financial data show that rural referral center (RRC) hospitals have performed well financially. RRC hospitals' median cash flow margin ratio was 10.04% in 2002 and grew to 11.04% in 2004. Purpose: The aim of this study is to compare the ratio analysis of key operational and financial performance measures of for-profit RRCs to…

Identifying the critical financial ratios for stocks evaluation: A fuzzy delphi approach

Science.gov (United States)

Mokhtar, Mazura; Shuib, Adibah; Mohamad, Daud

2014-12-01

Stocks evaluation has always been an interesting and challenging problem for both researchers and practitioners. Generally, the evaluation can be made based on a set of financial ratios. Nevertheless, there are a variety of financial ratios that can be considered and if all ratios in the set are placed into the evaluation process, data collection would be more difficult and time consuming. Thus, the objective of this paper is to identify the most important financial ratios upon which to focus in order to evaluate the stock's performance. For this purpose, a survey was carried out using an approach which is based on an expert judgement, namely the Fuzzy Delphi Method (FDM). The results of this study indicated that return on equity, return on assets, net profit margin, operating profit margin, earnings per share and debt to equity are the most important ratios.

Selected financial and operating ratios of public power systems

International Nuclear Information System (INIS)

Moody, D.

1993-01-01

In 1992, the American Public Power Association published its fourth report on financial and operating ratios. Based on 1990 data for the largest public power distribution systems, the report examined 21 categories of ratio indicators that can be used by public power distribution systems to assess their performance relative to the utilities of of comparable size and in the same geographic region. The 394 utilities summarized in the report are those that are required to file financial statements with the Energy Information Administration (EIA). Ratios were calculated from financial and operating data reported by utilities to the EIA. Data are presented for the following ratios: (1) revenue per kW/hr; (2) revenue for customer; (3) debt to total assets; (4) operating ratio; (5) current ratio; (6) times interest earned; (7) net income per revenue dollar; (8) uncollectible accounts per revenue dollar; (9) retail MW hr sales per manpower generation employee; (10) retail customers per nonpower generation employee; (11) total operation and maintenane expense per kW hr sold; (12) total operation and maintenance expense per retail customer; (13) total power supply expense kW hr sold; (14) purchased power cost per kW hr; (15) production expense per not kW hr; (16) retail customers for with reader; (17) distribution operation and maintenance expenses per retail customer; (18) distribution operation and maintenance expenses per circuit mile; (19) customer accounting, customer service and sales expenses per retail customers; (20) administration and general expenses per retail customer; (21) labor expense per worker-hour; (22) OSHA incidence rate; and (23) the system average interruptible duration index

The Benefits of Financial Ratios' as the Indocators of Future Bankruptcy on the Economic Crisis

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Setia Mulyawan

2015-08-01

Full Text Available It is proved that financial ratios can predict future bankruptcy even on high uncertainty conditions such as an economic crisis. The research indicates that the accuracy of prediction is more increasing in line with a coming bankruptcy.The result of the research shows that four years before a corporate becomes bankrupt there have been significant differences of financial ratios between bankrupt company and sustained one. The ratios of liquidity, profitability, activity, and return on investment of sustained company are higher; while the leverage ratio is lower.The dominant influencing financial ratios toward a bankruptcy are liquidity and leverage ratios. The research finds that from ten tested ratios, Current Asset to current liabilities and total liabilities to total asset are the dominant financial ratios. 

Updating Financial Ratios: Seeking Greater Understanding, Precision, and Practicality.

Science.gov (United States)

Jenny, Hans H.; Minter, W. John

1993-01-01

Modifications to current methods of calculating and reporting financial ratios are outlined for college managers. The modified ratios, felt to be more realistic, are illustrated with applications in three areas: (1) student revenues; (2) endowment and other investment income; and (3) public and private gifts, grants, and contracts revenue. (MSE)

An evaluation of the usefulness of cash flow ratios to predict financial distress

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L. Jooste

2007-12-01

Full Text Available Purpose: With the introduction of the cash flow statement it became an integral part of financial reporting. A need arose to develop ratios for the effective evaluation of cash flow information. This article investigates cash flow ratios suggested by various researchers and suggests a list of ratios with the potential to predict financial failure. Design: The cash flow ratios suggested by researchers, from as early as 1966, are investigated and eight cash flow ratios selected for inclusion in an analysis to predict financial failure. Ten failed entities are selected for a cash flow evaluation by means of the selected ratios for five years prior to failure. For a comparison, non-failed entities in similar sectors are selected and also evaluated by means of the cash flow ratios. The mean values of each ratio, for each year prior to failure, were then calculated and the means of the failed entities were compared to the non-failed entities. Findings: The comparison revealed that cash flow ratios have predictive value with the cash flow to total debt identified as the best indicator of failure. It was also determined that, although failed entities have lower cash flows than non-failed entities, they also had smaller reserves of liquid assets. Furthermore, they have less capacity to meet debt obligations and they tend to incur more debt. The ratios of the failed entities were unstable and fluctuated from one year to the next. Finally, bankruptcy could be predicted three years prior to financial failure. Implications: Income statement and balance sheet ratios are not enough to measure liquidity. An entity can have positive liquidity ratios and increasing profits, yet have serious cash flow problems. Ratios developed from the cash flow statement should supplement traditional accrual-based ratios to provide additional information on the financial strengths and weaknesses of an entity .

A Hybrid Joint Moment Ratio Test for Financial Time Series

NARCIS (Netherlands)

Groenendijk, Patrick A.; Lucas, André; Vries, de Casper G.

1998-01-01

We advocate the use of absolute moment ratio statistics in conjunctionwith standard variance ratio statistics in order to disentangle lineardependence, non-linear dependence, and leptokurtosis in financial timeseries. Both statistics are computed for multiple return horizonssimultaneously, and the

Examining through the Financial Ratio Analyses over Turkish Football Clubs in terms of Sportive Success and Financial Structure : Example of Galatasaray and Fenerbahce

Directory of Open Access Journals (Sweden)

Cihan Ulun

2016-04-01

Full Text Available The purpose of this study has been to examine two major incorporated Football Clubs in terms of sportive success and Financial structure in Turkey. These clubs are handled as statute of bussiness corporations. Sportive and financial outputs are quite important for the management succes of commercial nature of bussiness corporation. The accuracy of sportive and financial analyses is crucial in sportive corporation. For this reason, financial ratio analysis are used in context(extent of management science. Thus, the analysis focus on Galatasaray and Fenerbahce which are most successful footbal clubs national and international sportive success in Turkey. To results of the study, Galatasaray is more successful as a football club which won the championship three times at last five season than Fenerbahce which won two times at last five season in Turkey. At the same time, according to the ranking of UEFA, Galatasaray have en edge over fb through showing %29.35 success difference ratio. According to observation of liqudity ratio, “Cash ratio” is min 0.20, “Current Ratios” is higher than 1-1.5 are the prefered values for financial analysis ratio. Although accepted leverage ratio value is 0.50 from perspective of financial structure, this ratio is accepted 0.60 in Turkey. As regard to the consequences of financial analysis, sample clubs have lower Cash and Current Ratios than expected. However, in terms of financial structure, results are found higher than supposed to be. The results of this study shows that financial structure of the sample clubs are quite risky

A Hybrid Joint Moment Ratio Test for Financial Time Series

NARCIS (Netherlands)

P.A. Groenendijk (Patrick); A. Lucas (André); C.G. de Vries (Casper)

1998-01-01

textabstractWe advocate the use of absolute moment ratio statistics in conjunction with standard variance ratio statistics in order to disentangle linear dependence, non-linear dependence, and leptokurtosis in financial time series. Both statistics are computed for multiple return horizons

Financial and Staffing Ratio Analysis: Predicting Fiscal Distress in School Districts.

Science.gov (United States)

Lee, Robert Alan

1983-01-01

From analysis of data from 579 school districts it is concluded that financial ratios have the ability to forecast fiscal distress a year in advance. Liquidity ratios and salary and fringe benefit ratios were found to be strong forecasters, while per pupil expenditure data had little predictive value. (MJL)

A financial Ratio Analysis of Commercial Bank Performance in ...

African Journals Online (AJOL)

A financial Ratio Analysis of Commercial Bank Performance in South Africa. ... Journal Home > Vol 2, No 1 (2010) >. Log in or ... This paper investigates the performance of South Africa's commercial banking sector for the period 2005- 2009.

THE LIQUIDITY RATIOS AND THEIR SIGNIFICANCE IN THE FINANCIAL EQUILIBRIUM OF THE FIRMS

OpenAIRE

Ciprian Dan COSTEA; Florin HOSTIUC

2009-01-01

The year of 2008 was an important inflection point of the world’s economy evolution. Most of the economists talk about a banking crisis, some of them talk about a financial crisis, and a part of them agree that we are facing also a liquidity crisis. Following this idea, the objective of this working paper is to analyze the liquidity ratios and their significance in the financial equilibrium of the firms. The working paper points out the most important liquidity ratios: general liquidity ratio...

49 CFR Appendix II to Subpart A of... - Financial Ratios (Traffic and Cost Study Carrier _____)

Science.gov (United States)

2010-10-01

... 49 Transportation 8 2010-10-01 2010-10-01 false Financial Ratios (Traffic and Cost Study Carrier... to Subpart A of Part 1139—Financial Ratios (Traffic and Cost Study Carrier _____) [Complete appendix... shareholders' equity less intangibles L. 7+L. 18 $ $ $ 20 Operating ratio (2 decimals) L. 11÷L. 9 % % % 21...

Framework for financial ratio analysis of audited federal financial reports

OpenAIRE

Brady, Richard T.

1999-01-01

Federal agencies have traditionally prepared financial reports to monitor and report the obligation and expenditure of federal funding. With the passage of the Chief Financial Officers Act of 1990, Congress called for the production of financial statements that fully disclose a federal entity's financial position and results of operations. The disclosure of this type of information, it was believed, would enable decision-makers to understand the financial implications of budgetary, policy and...

Selection and reliability of financial ratios in an attempt to analyse financial statements. An empirical research of the listed companies at Greek stock exchange in Construction Sector. Dimitrios Tsiolis MA Finance

OpenAIRE

Tsiolis, Dimitrios

2008-01-01

Financial ratio analysis is a widely known financial statements analysis tool and is used to evaluate companies` financial position. Careful selection process in collaboration with other financial statement analysis techniques as well as taking into consideration the financial ratio analysis problems can lead the companies' analysts to a clear determination of their company's financial position.

Framework for Financial Ratio Analysis of Audited Federal Financial Reports

National Research Council Canada - National Science Library

Brady, Richard

1999-01-01

.... With the passage of the Chief Financial Officers Act of 1990, Congress called for the production of financial statements that fully disclose a federal entity's financial position and results of operations...

Comparative study on DuPont analysis and DEA models for measuring stock performance using financial ratio

Science.gov (United States)

Arsad, Roslah; Shaari, Siti Nabilah Mohd; Isa, Zaidi

2017-11-01

Determining stock performance using financial ratio is challenging for many investors and researchers. Financial ratio can indicate the strengths and weaknesses of a company's stock performance. There are five categories of financial ratios namely liquidity, efficiency, leverage, profitability and market ratios. It is important to interpret the ratio correctly for proper financial decision making. The purpose of this study is to compare the performance of listed companies in Bursa Malaysia using Data Envelopment Analysis (DEA) and DuPont analysis Models. The study is conducted in 2015 involving 116 consumer products companies listed in Bursa Malaysia. The estimation method of Data Envelopment Analysis computes the efficiency scores and ranks the companies accordingly. The Alirezaee and Afsharian's method of analysis based Charnes, Cooper and Rhodes (CCR) where Constant Return to Scale (CRS) is employed. The DuPont analysis is a traditional tool for measuring the operating performance of companies. In this study, DuPont analysis is used to evaluate three different aspects such as profitability, efficiency of assets utilization and financial leverage. Return on Equity (ROE) is also calculated in DuPont analysis. This study finds that both analysis models provide different rankings of the selected samples. Hypothesis testing based on Pearson's correlation, indicates that there is no correlation between rankings produced by DEA and DuPont analysis. The DEA ranking model proposed by Alirezaee and Asharian is unstable. The method cannot provide complete ranking because the values of Balance Index is equal and zero.

Analysis of Financial Ratio to Distinguish Indonesia Joint Venture General Insurance Company Performance using Discriminant Analysis

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Subiakto Soekarno

2012-01-01

Full Text Available Insurance industry stands as a service business that plays a significant role in Indonesiaeconomical condition. The development of insurance industry in Indonesia, both of generalinsurance and life insurance, has increased very fast. The general insurance industry itselfdivided into two major players which are local private company and Joint Venture Company.Lately, the use of statistical techniques and financial ratios models to asses financial institutionsuch as insurance company have been used as one of the appropriate combination inpredicting the performance of an industry. This research aims to distinguish between JointVenture General Insurance Companies that have a good performance and those who are lessperforming well using Discriminant Analysis. Further, the findings led that DiscriminantAnalysis is able to distinguish Joint Venture General Insurance Companies that have a goodperformance and those who are not performing well. There are also six ratios which are RBC,Technical Reserve to Investment Ratio, Debt Ratio, Return on Equity, Loss Ratio, and ExpenseRatio that stand as the most influential ratios to distinguish the performance of joint venturegeneral insurance companies. In addition, the result suggest business people to be concernedtoward those six ratios, to increase their companies’ performance.Key words: general insurance, financial ratio, discriminant analysis

Financial ratios: clues to the big picture of a hospital's fiscal health.

Science.gov (United States)

Taylor, R B

1990-03-01

With trustees, investors, regulatory agencies, and others paying close attention to hospital finances, healthcare financial managers must detect problems before they grow out of control. Liquidity, capital structure, activity, and profitability ratios can provide pieces to the puzzle.

Financial Ratio Analysis using ARMS Data

OpenAIRE

Ahrendsen, Bruce L.; Katchova, Ani L.

2012-01-01

The purpose of this research is to evaluate the financial performance measures calculated and reported by Economic Resource Service (ERS) from ARMS data. The evaluation includes the calculation method and the underlying assumptions used in obtaining the reported values. The financial measures calculated and reported are compared with those recommended by the Farm Financial Standards Council (FFSC). The underlying assumptions are identified by analyzing the software code used in calculating th...

EVALUATION OF FINANCIAL PERFORMANCE OF UNIVERSITY HOSPITALS BY RATIO ANALYSIS METHOD

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Ferda BÜLÜÇ

2017-09-01

Full Text Available This study aims to evaluate the financial performances of public university hospitals in Turkey; make contribution to the related literature in accordance with the findings and develop recommendations for the decision makers. Within the scope of the study, financial statements of revolving fund of the 43 public university hospitals for the years of 2013, 2014 and 2015 were obtained from the Ministry of Finance General Directorate of Public Accounts. Financial statements were evaluated by ratio analysis method. After analysing, it has been reached that the burden of debt of the hospitals were high,  they have been experiencing the problem of paying short term debts, stock turnover rates and turnover rates were low and the incomes of the hospitals can not cover their expenses. It is recomended that hospitals should use resources more efficiently and decision makers should consider education and research activities in budget allocation to university hospitals.

Faktor-Faktor yang Mempengaruhi Financial Sustainability Ratio pada Bank Umum Swast Nasional Non Devisa Periode 1995-2005

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Luciana Spica Almilia

2009-01-01

Full Text Available This study is aimed to test the consistency of time period model, whether the information that previously affects today’s performance can be used to predict the performance in the future, and how the consistency of Indonesia banking financial prediction model formulation equation in order to detect bank condition and performance in the period of pre-economic crisis (1995-1996, during economic crisis (1997-1999 or post-economic crisis (2000-2005 is since bank condition and health is the interest of all relevant parties namely bank owner and manager, customers, Bank Indonesia in its capacity as the supervisor and builder, and the government. The samples are Non Foreign Exchange National Private Banks listed in Indonesian Banking Directory during the period after economic crisis in 1995 – 2005 and Indonesian Financial Economic Statistics Monthly Statement for economic macro indicator. The sampling is performed by means of purposive method (purposive sampling. Dependent Variable in this study is Financial Sustainability Ratio and independent variable in this study is Capital Adequacy Ratio, Non Performing Loan, Return On Assets, Operational Cost Ratio to Operational Income, Loan to Deposit Ratio, Money Supply Sensitivity, General Customer Price Index Sensitivity and SBI Interest Rate Sensitivity. The result of this study shows that model financial sustainability ratio did not have structural stabilization in 1999 – 2005. Abstract in Bahasa Indonesia: Penelitian ini betujuan untuk menguji konsistensi model prediksi kinerja keuangan pada Bank Umum Swasta Nasional Non Devisa periode 1995-2005. Variabel-variabel yang digunakan dalam penelitian ini adalah kinerja keuangan Bank Umum Swasta Nasional Non Devisa yang diproksikan melalui Financial Sustainability Ratio (FSR. Sampel yang terpilih dalam penelitian ini dengan metode purposive sampling berjumlah 28 bank umum swasta nasional non devisa yang terdaftar di direktori Bank Indonesia selama tahun

THE RELATIVE IMPORTANCE OF FINANCIAL RATIOS AND NONFINANCIAL VARIABLES IN PREDICTING OF INSOLVENCY

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Ivica Pervan

2013-02-01

Full Text Available One of the most important decisions in every bank is approving loans to firms, which is based on evaluated credit risk and collateral. Namely, it is necessary to evaluate the risk that client will be unable to repay the obligations according to the contract. After Beaver's (1967 and Altman's (1968 seminal papers many authors extended the initial research by changing the methodology, samples, countries, etc. But majority of business failure papers as predictors use financial ratios, while in the real life banks combine financial and nonfinancial variables. In order to test predictive power of nonfinancial variables authors in the paper compare two insolvency prediction models. The first model that used financial rations resulted with classification accuracy of 82.8%, while the combined model with financial and nonfinancial variables resulted with classification accuracy of 88.1%.

Distributions of owner-occupiers' housing wealth, debt and interest expenditure ratios as financial soundness indicators

DEFF Research Database (Denmark)

Lunde, Jens

The Danish housing market boomed from 1993 to the end of 2006. The house price increases from 2003 to 2006 were especially dramatic and cannot be explained satisfactorily by `fundamentals'. Moreover, the owner-occupiers are highly indebted; Denmark is the nation with the highest household debt....../GDP, highest total liabilities/net wealth and highest mortgage debt/net non-financial wealth ratios among 15 OECD countries. Obviously, an analysis of the financial soundness of owner-occupiers is topical in order to analyse financial stability in society. The financial soundness of Danish owner......-occupier families is analysed using relevant financial indicators for the owner-occupiers' capital structure and interest payments. Tax statistics for the owner-occupier families are used here. In a financial soundness perspective macro data are of limited importance as they express total and average changes...

Financial Ratio Analysis of Audited Federal Financial Statements

National Research Council Canada - National Science Library

Kenney, Shane

2000-01-01

.... The purpose of these statements is to fully reveal federal entities' financial position, in the hope of enabling a better understanding of these federal entities, and to assist in resource management...

PROBABILISTIC PREDICTION OF BANK FAILURES WITH FINANCIAL RATIOS: AN EMPIRICAL STUDY ON TURKISH BANKS

Directory of Open Access Journals (Sweden)

Gamze Özel

2014-02-01

Full Text Available Banking risk management has become more important during the last 20 years in response to a worldwide increase in the number of bank failures. Turkey has experienced a series of economic and financial crisis since the declaration of Republic and banking system has the most affected sector from the results of these crises. This paper examines some bank failure prediction models using financial ratios. Survival, ordinary and conditional logistic regression models are employed in order to develop these prediction models. The empirical results indicate that the bank is more likely to go bankrupt if it is unprofitable, small, highly leveraged, and has liquidity problems and less financial flexibility to invest itself. 

Using Financial Ratios to Select Companies for Tax Auditing: A Preliminary Study

Science.gov (United States)

Marghescu, Dorina; Kallio, Minna; Back, Barbro

Tax auditing procedures include an investigation of the accounting records of a company and of other sources of information in order to assess whether the taxation has been based on correct and complete information. When there are found discrepancies between the accounting information and the real situation, the taxation should be corrected so that the eventual tax defaults are assessed and debited. The paper analyzes to what extent the financial performance of a company can be used as an indicator of tax defaults. We focus on one type of tax, namely employer's contribution, and four financial ratios. We evaluate the model in a study of Finnish companies by using a binomial logistic regression analysis. The study is exploratory and at a preliminary stage.

An Analysis of Agency Costs and Dividend Payout Ratio of Non-financial Companies

Directory of Open Access Journals (Sweden)

Amy Natalia

2017-12-01

Full Text Available This study aim to analyze the effect of Insider Ownership, Institutional Ownership, Dispersion of Ownership, Debt to Total Assets, Collateralizable Assets and Free Cash Flow on the Dividend Payout Ratio. These independent variables are proxies of agency costs. This study uses panel data of 90 non-financial companies in the period of 2009-2011. The findings indicate that (1 All independent variables (Insider Ownership, Institutional Ownership, Dispersion of Ownership, Debt to Total Assets, Collateralizable Assets and Free Cash Flow have significant effect on the dependent variable (Dividend Payout Ratio simultaneously; (2 Institutional Ownership and Collateralizable Assets have a significant positive effect on Dividend Payout Ratio; (3 Insider Ownership, Debt to Total Assets, and Dispersion of Ownership have a significant negative effect on Dividend Payout Ratio; (4 Free Cash Flow has no significant positive effect on Dividend Payout Ratio.

Framework for Financial Ratio Analysis of Audited Federal Financial Reports

National Research Council Canada - National Science Library

Brady, Richard

1999-01-01

.... The disclosure of this type of information, it was believed, would enable decision-makers to understand the financial implications of budgetary, policy and program issues and provide an analytical...

Enhancing Financial Security in Agricultural Business: Financial and Property Aspects

OpenAIRE

Yuliya Bezdushna

2014-01-01

The article provides the analysis of information support for the developing agrarian businesses financial security activities. The impact of financial statements on financial security has been proved through generalization procedure of such calculating indicators as operating margin, return on assets, total liquidity ratio and financial autonomy ratio. A causal effect between mass underestimation of operating fixed assets in accounting and inflated profitability rates in agribusinesses operat...

An Analysis of Agency Costs and Dividend Payout Ratio of Non-financial Companies

OpenAIRE

Amy Natalia; Retno Kusumastuti

2017-01-01

This study aim to analyze the effect of Insider Ownership, Institutional Ownership, Dispersion of Ownership, Debt to Total Assets, Collateralizable Assets and Free Cash Flow on the Dividend Payout Ratio. These independent variables are proxies of agency costs. This study uses panel data of 90 non-financial companies in the period of 2009-2011. The findings indicate that (1) All independent variables (Insider Ownership, Institutional Ownership, Dispersion of Ownership, Debt to Total Assets, Co...

Determining relevant financial statement ratios in Department of Defense service component general fund financial statements

OpenAIRE

Koetter, Nicholas J.; Krause, Daniel J.; Liptak, Carl S.

2014-01-01

Approved for public release; distribution is unlimited Department of Defense (DOD) service components are dedicating significant financial and human resources toward achieving unqualified opinions on audits of their financial statements. The DOD has endeavored to produce auditable financial statements as mandated in the Chief Financial Officers Act of 1990. In December of 2013, the United States Marine Corps became the first service component to achieve an unqualified audit opinion on its ...

Using MSN Money to Perform Financial Ratio Analysis

Science.gov (United States)

Hsu, H. Christine

2010-01-01

In today's information technology world, real time financial data is readily available via many financial websites, such as MSN Money, Google Finance, Yahoo Finance, etc. The incorporation of computer technology in finance classes has become more popular than ever in this information technology rich environment. Mediated classrooms have rapidly…

Detecting Fraudulent Manipulation of Accounting Ratios in Financial ...

African Journals Online (AJOL)

Based on the findings of the study, forensic experts are expected to consider whether the information presented in the financial statements is relevant, reliable, ... It is also recommended that quality assessment report that would add credibility to financial information for users should therefore be included in the statutory ...

Jordan Banks Financial Soundness Indicators

Directory of Open Access Journals (Sweden)

Imad Kutum

2015-09-01

Full Text Available The aim of this research paper is to examine the Jordanian banks using financial soundness indicators. This is to establish if Jordanian banks were affected because of the 2007/2008 financial crisis and determine the underlying reasons. The research paper was conducted on 25 banks in Jordan listed in the countries securities exchange. The research methodology used consisted of examining the banks financial records in order to derive four crucial Basel III ratio such as the capital adequacy ratio, the leverage ratio, the liquidity ratio and finally the Total Provisions (As % Of Non-Performing Loans %. The results revealed that out of the four hypotheses under examination Jordan Banks do not meet Basel financial Indicators for Capital Adequacy Ratio, Jordan Banks does not meet Basel financial Indicators for Liquidity Ratio , Jordan Banks do not meet Basel financial Indicators for Leverage Ratio and Jordan Banks do not meet Basel financial Indicators for Total Provisions (As % Of Non-Performing Loans ratio. Only one hypothesis was accepted based on the research outcomes. The rest of the hypothesis was rejected since the average trend line did not go below the Basel III required ratio level. The general outcome of the research revealed that Jordanian banks were not affected significantly by the financial crisis.

THE EARNINGS PER SHARE AND INVENTORY TURNOVER RATIOS IN THE GLOBAL FINANCIAL CRISIS: A COMPARATIVE STUDY FOR FOOD AND TEXTILE SECTORS IN ISTANBUL STOCK EXCHANGE

Directory of Open Access Journals (Sweden)

Sudi APAK

2009-01-01

Full Text Available The ongoing financial crisis in the global markets, which originated in the US subprime mortgage segment (real estate and quickly spread into other market segments and countries, is already seen today as one of the biggest financial crises in history. Underlying the subprime crisis had essentially two interrelated factors; the boom in US real estate markets, and the high liquidity demand in the global financial markets. The later period was, in turn, fuelled by the significant easing of US monetary policy over an extended period of time and by the additional boost to global liquidity as many emerging markets had tied their exchange rates to the US dollar and therefore had to match the expansive US monetary policy. The occurrence of market crash or financial crisis is possible key factor of earning per share (EPS and inventory turnover ratios (ITR inefficiency. This paper empirically investigates that the effects of the current financial crisis on the efficiency -earning per share (EPS and inventory turnover ratios- listed food and textile companies in Istanbul Stock Exchange (ISE. The EPS and inventory turnover ratios, applying the multivariate test statistics for the two sub-periods of pre-crisis and the crisis time. The article proceeds in the following manner. Firstly, the study will explain main reasons of global financial crises. Secondly the study will analyze all EPS and inventory turnover ratios changing are of related companies. Finally, that will be argued for adjustment of related ratios of sectors.

Families at financial risk due to high ratio of out-of-pocket health care expenditures to total income.

Science.gov (United States)

Bennett, Kevin J; Dismuke, Clara E

2010-05-01

High out-of-pocket expenditures for health care can put individuals and families at financial risk. Several groups, including racial/ethnic minority groups, the uninsured, rural residents, and those in poorer health are at risk for this increased burden. The analysis utilized 2004-2005 MEPS data. The dependent variables were the out-of-pocket health care spending to total income ratios for total spending, office-based visits, and prescription drugs. Multivariate analyses with instrumental variables controlled for respondent characteristics. Gender, age, rurality, insurance coverage, health status, and health care utilization were all associated with higher out-of-pocket to income ratios. Certain groups, such as women, the elderly, those in poor health, and rural residents, are at a greater financial risk due to their higher out-of-pocket to total income spending ratios. Policymakers must be aware of these increased risks in order to provide adequate resources and targeted interventions to alleviate some of this burden.

Industry specific financial distress modeling

Directory of Open Access Journals (Sweden)

Naz Sayari

2017-01-01

Full Text Available This study investigates uncertainty levels of various industries and tries to determine financial ratios having the greatest information content in determining the set of industry characteristics. It then uses these ratios to develop industry specific financial distress models. First, we employ factor analysis to determine the set of ratios that are most informative in specified industries. Second, we use a method based on the concept of entropy to measure the level of uncertainty in industries and also to single out the ratios that best reflect the uncertainty levels in specific industries. Finally, we conduct a logistic regression analysis and derive industry specific financial distress models which can be used to judge the predictive ability of selected financial ratios for each industry. The results show that financial ratios do indeed echo industry characteristics and that information content of specific ratios varies among different industries. Our findings show diverging impact of industry characteristics on companies; and thus the necessity of constructing industry specific financial distress models.

Comparing of the Financial Ratios: A case study on United States, Great Britain, Greece Due Financial Crisis

Directory of Open Access Journals (Sweden)

Dr. Stamatis Kontsas

2013-07-01

Full Text Available The aim of this paper is to present a comparative study of the countries through the financial ratios that were analysed. This study was carried out in order to find the characteristics of each economy in comparison to the others. It would be worthy to mention that the three economies that were put under comparative study, are not of the same dynamic. The United States of America and Great Britain show some common characteristics due to the positions of power that they possess in the allocation of the global economy. However, in the case of Greece the same dynamic with the other two countries doesn’t exist, a fact that is greatly imprinted in their in-between comparison.

Hisse Senetleri Fiyatlarının Belirlenmesinde Finansal Oranların Rolü(The Role of Financial Ratios in Determining the Stock Prices

Directory of Open Access Journals (Sweden)

Oğuzhan AYDEMİR

2012-01-01

Full Text Available In this study, financial ratios being effective in determining stock prices are investigated by panel data analysis. In this aim, data set belonging to 73 companies indexed in Istanbul Stock Exchange (ISE and operating in manufacturing sector over the period of 1990-2000 is used. Empirical results suggest that profitability and liquidity ratios have a positive effect on stock returns. Moreover, leverage ratio taken as an indicator of indebtedness has the same effect. However, it is seen that operating ratios have no impact on stock returns. Consequently, it may be said that the role of financial ratios in determining the stock returns is low.

The Financial Flexibility as a Factor of Financial Security

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Feofanova Iryna V.

2017-09-01

Full Text Available The article is aimed at researching the approaches to assessing financial flexibility and the ways to improve it as a constituent part of financial security. Both the external and the internal threats to financial security have been defined. The indicators of assessment of the financial status of enterprise that are being calculated on the basis of value of equity were analyzed. It has been determined that the growth of equity has a positive impact on all coefficients, with the exception of the ratio of non-negotiable assets and the equity funds. It has been suggested that the ratio of non-negotiable assets to equity funds should be used as an indicator of the sufficiency of own capital gains. The relationship between the maneuverability coefficient of the own negotiable capital and the ratio of non-negotiable assets to the equity funds has been considered. It has been found that formation of the own financial resources is one of the main ways of increasing the financial flexibility of enterprises and organizations. A number of measures to increase equity have been proposed; the sources of the equity funds and the factors influencing the money flows have been defined.

Financial Statements Analysis

OpenAIRE

Tănase Alin-Eliodor

2014-01-01

This article focuses on analyzing of a consolidated financial statements of a hypothetically SME. The interpretation of the financial position and performances is based on the more than 40 financial key ratios computed by using financial data from consolidated income statement, consolidated financial position and cash flow. However additional data from notes to financial statements are provided.

Financial and operational ratios for bond-insured hospitals.

Science.gov (United States)

McCue, Michael J; McCluer, R Forrest

2008-01-01

Few, if any, researchers have analyzed the performance indicators of companies that offer bond insurance to hospitals and healthcare systems. The authors of this study analyzed the key financial and operational indicators of independent hospitals and hospitals within large multihospital systems that are insured by the 5 major bond insurance companies. The authors examined 87 insured bond issues; the results of this study show that some insurers cover healthcare facilities that have strong operational traits and others focus on financial factors.

Evaluating a Financial Assessment Tool: The Financial Checkup

OpenAIRE

Johnson, Alena C.

2001-01-01

The purpose of this study was to evaluate The Financial Checkup program. The program consisted of a booklet called The Financial Checkup and a 1-1 y, hour workshop explaining the booklet. The booklet helps individuals evaluate their financial situation on an annual basis. It includes a net worth statement, an income and expense statement, financial ratios, a revolving savings worksheet, a retirement worksheet, a life insurance worksheet, a financial goals worksheet, and a budget worksheet. Th...

PREDIKSI FINANCIAL DISTRESS PADA KOPERASI DI KABUPATEN PEMALANG

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Sukirno Sukirno

2014-05-01

Full Text Available This paper examines the usefulness of financial statements to predict financial distress in thecooperative. The financial distress is a condition before the bankruptcy that can be seen inthe financial statements. Furthermore, the financial statements are being analyzed using ratioanalysis. The ratio analysis  used as a predictor variable are current ratio, quick ratio, currentassets to total assets ratio, current liabilities to total assets, net profit margin ratio and net SHUto total assets ratio. While the research object is a cooperative financial statements reported on2012. There are 63 cooperatives used as the sample with purposive sampling approach. Thehypothesis is analysed using logistic regression. The results found that three variables can be used to predict financial distress of the cooperative. Those variables are ratio of current assets to total assets, current liabilities to total assets and net SHU to total assets. This implies theusefulnes of financial ratio to predict financial distress in the cooperative.

Prediksi Financial Distress Pada Koperasi Di Kabupaten Pemalang

OpenAIRE

Sukirno, Sukirno; Haryadi, Haryadi; Budiarti, Laeli

2014-01-01

This paper examines the usefulness of financial statements to predict financial distress in thecooperative. The financial distress is a condition before the bankruptcy that can be seen inthe financial statements. Furthermore, the financial statements are being analyzed using ratioanalysis. The ratio analysis used as a predictor variable are current ratio, quick ratio, currentassets to total assets ratio, current liabilities to total assets, net profit margin ratio and net SHUto total assets ...

Hubungan Analisis Ratio Keuangan dengan Kesehatan Perusahaan

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Soekarso Soekarso

2009-09-01

Full Text Available In the business world, companies develop a vision and mission to improve welfare in the future. The work program the company is to achieve productivity and profitability. Finance in the company is one of the strategic functions that includes wealth management and transformation of added value (added value and also the control of corporate health. The financial statements such as balance sheet (balance sheet, profit and loss statement (income statement, and financial ratio (financial ratios, reflects the company's performance and health. Financial ratio analysis relates to the health of the company through a ratio of effectiveness, efficiency, productivity, profitability, liquidity, and solvability. Analysis shows that whenever actual value of financial ratios is above standard it means the company is healthy, and when the actual value of financial ratios is below the standard, it reversely means that companies are not healthy.

Workplace Financial Education Facilitates Improvement in Personal Financial Behaviors

Science.gov (United States)

Prawitz, Aimee D.; Cohart, Judith

2014-01-01

Based on the life-cycle theory of consumption, this quasi-experimental study of 995 employees examined changes in financial behaviors following employee-needs-driven workplace financial education. Repeated-measures ANOVA compared participants and non-participants on perceived financial wellness and savings ratios; main effects indicated that both…

PREDIKSI FINANCIAL DISTRESS PADA KOPERASI DI KABUPATEN PEMALANG

OpenAIRE

Sukirno Sukirno; Haryadi Haryadi; Laeli Budiarti

2014-01-01

This paper examines the usefulness of financial statements to predict financial distress in thecooperative. The financial distress is a condition before the bankruptcy that can be seen inthe financial statements. Furthermore, the financial statements are being analyzed using ratioanalysis. The ratio analysis  used as a predictor variable are current ratio, quick ratio, currentassets to total assets ratio, current liabilities to total assets, net profit margin ratio and net SHUto total assets ...

Second-to-fourth digit ratio predicts success among high-frequency financial traders.

Science.gov (United States)

Coates, John M; Gurnell, Mark; Rustichini, Aldo

2009-01-13

Prenatal androgens have important organizing effects on brain development and future behavior. The second-to-fourth digit length ratio (2D:4D) has been proposed as a marker of these prenatal androgen effects, a relatively longer fourth finger indicating higher prenatal androgen exposure. 2D:4D has been shown to predict success in highly competitive sports. Yet, little is known about the effects of prenatal androgens on an economically influential class of competitive risk taking-trading in the financial world. Here, we report the findings of a study conducted in the City of London in which we sampled 2D:4D from a group of male traders engaged in what is variously called "noise" or "high-frequency" trading. We found that 2D:4D predicted the traders' long-term profitability as well as the number of years they remained in the business. 2D:4D also predicted the sensitivity of their profitability to increases both in circulating testosterone and in market volatility. Our results suggest that prenatal androgens increase risk preferences and promote more rapid visuomotor scanning and physical reflexes. The success and longevity of traders exposed to high levels of prenatal androgens further suggests that financial markets may select for biological traits rather than rational expectations.

[Operation directions by comparing financial ratio of 22 provincial hospitals].

Science.gov (United States)

Wang, J Y; Ko, Y C; Wang, J W; Jan, L C; Chang, F M; Lin, K C

1996-12-01

Even more restrictive regulations and reimbursement limits seem to be a very heavy burden and stress for most provincial hospitals, especially after the National Health Insurance System has been introduced. The purpose of this project to find a better, universal direction for these hospitals through three steps: 1) Using different financial and accounting ratio indexes to evaluate the general business performance of each hospital. 2) Taking a comprehensive questionnaire with senior managers of each hospital to know their concepts and attitudes concerning external environment and internal operation. 3) Comparing data's correlation and differentiation to ascertain better trends for future operation for all hospitals. The database for this project comes from two resources: 1) Government finance and budget reports of 22 provincial hospitals for the 1994 accounting calendar year. 2) The results of questionnaires returned by 274 senior managers of hospitals, and analysis of these by chi-square test. Through statistical comparison, a number of conclusions can be made: 1) Most hospitals have better operation efficiency if any professional hospital administrator is working for them. 2) The hospital with more comprehensive personnel system shows better business performance. 3) The hospital with routine and formal financial analysis reports always has better business performance. 4) The hospital with poor operational efficiency tends to get rid of restriction or limitation from government's system. 5) The hospital with good operational efficiency has more confidence and desire to improve and change. 6) The hospital with poor operational efficiency is more dependent on outside support from government. 7) The hospital with better business performance has more concern about the impact of malpractice around the hospital. In short, a hospital with poor business efficiency always has more pessimistic attitude and tends to rely on outside resource support. On the other hand, a

Financial Integrity Benchmarks

Data.gov (United States)

City of Jackson, Mississippi — This data compiles standard financial integrity benchmarks that allow the City to measure its financial standing. It measure the City's debt ratio and bond ratings....

MEMPREDIKSI FINANCIAL DISTRESS DENGAN BINARY LOGIT REGRESSION PERUSAHAAN TELEKOMUNIKASI

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Tiara Widya Antikasari

2017-04-01

Full Text Available In this globalization era, sub–sector telecommunication industry has rapid development as time goes by with the number of customers’ growth. However, its growth is not balanced with operational revenue development. Therefore, it is important to analyze the financial distress in telecommunication companies in order to avoid bankruptcy. This research aimed to investigate the effect of financial ratios to predict probability of financial distress. Financial ratios indicator used profitability ratio, liquidity ratio, activity ratio, and leverage ratio. The population in this research was telecommunication companies listed in the Indonesia Stock Exchange periods 2009-2016. Based on purposive sampling method, the criteria of financial distress in this study was measured by using net operation negative two years, while statistic analysis used was logistic regression with a significance level of 10%. The result was that liquidity ratio (current ratio and activity ratio (total asset turnover ratio had a negative significant value, and profitability ratio(return on asset and leverage ratio (debt to total asset had positive significant value to predict financial distress.

Financial Consumption and the Cost of Finance: Measuring Financial Efficiency in Europe (1950-2007)

OpenAIRE

Bazot, Guillaume

2014-01-01

This paper proposes to assess financial intermediation efficiency in Germany, France, the UK, and Europe more broadly, over the past 60 years. I rely on Philippon's (2012) methodology, which calculates the unit cost of financial intermediation through the ratio of 'financial consumption' | measured by financial income | to 'financial output' | approximated by the sum of outstanding assets intermediated. The contribution of this paper is threefold. First, because financial industry VA ignores ...

THE EFFECT OF FINANCIAL RATIOS, FIRM SIZE AND CASHFLOWSFROM OPERATING ACTIVITIES ON EARNINGS PER SHARE: (ANAPPLIED STUDY: ON JORDANIAN INDUSTRIAL SECTOR

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Khalaf Taani

2011-01-01

Full Text Available The objective of this study is to examine the effect of accounting information onearning per share (EPS by using five categories offinancial ratios. A sample of40 companies listed in the Amman Stock Market was selected. To measure theimpact of financial ratios on EPS multiple regression method and stepwiseregression models are used by taking profitability,liquidity, debit to equity,market ratio, size which is derived from firm’s total assets, and cash flow fromoperation activities as independent variables ,andEPS (Earning Per Share asdependent variable. The results show that profitability ratio (ROE, Market ratio(PBV, cash flow from operation/sales, and leverageratio (DER has significantimpact on earning per share.

Financial development and economic growth in Ghana: Does the measure of financial development matter?

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George Adu

2013-07-01

Full Text Available The aim of this paper is to investigate the long-run growth effects of financial development in Ghana. We find that the growth effect of financial development is sensitive to the choice of proxy. Both the credit to the private sector as ratios to GDP and total domestic credit are conducive for growth, while broad money stock to GDP ratio is not growth-inducing. The indexes created from principal component analysis confirmed the sensitivity of the effect to the choice of proxy. The findings here suggest that whether financial development is good or bad for growth depends on the indicator used to proxy for financial development.

Rates of credit obligations compliance on IFRS financial statement as a factor of financial stability

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O. V. Uvarova

2016-01-01

Full Text Available For the purposes of effective management of economic activity of the entities of insufficiently own accounting information. For objective assessment of a financial and economic provision of the entity it is necessary to pass from separate accounting data to certain valuable ratios of major factors – to financial performance or financial ratios. Calculation and interpretation of their values the integral and essentially necessary part of a financial analysis, especially it is important if the company has credit liabilities. Conditions of credit agreements often include accomplishment of credit covenants which represent restrictions for activities and a financial position of the company in addition to timely settlement of percent and a body of the credit and provide to lessors a certain level of safety from bankruptcy of the debtor. The article considers the covenants and financial covenants definitions; the main financial covenants containing in credit agreements between large banks and borrowers; data on structure of a credit portfolio and financial debt of NLMK as at June 30, 2016; the main financial covenants containing in credit agreements of the companies of NLMK Group; definitions and formulas of calculation of financial rates based on the IFRS financial statement; calculation of covenants on the example of IFRS consolidated financial statements of NLMK; subtleties of calculation of financial rates; the main differences of financial rates calculation based on the financial statements prepared on the different principles; conclusion about stability and a financial condition of NLMK by the results received during calculation financial covenants as at end of the first half of the year 2016.

Profitability and efficiency of Italian utilities: cluster analysis of financial statement ratios

International Nuclear Information System (INIS)

Linares, E.

2008-01-01

The last ten years have witnessed conspicuous changes in European and Italian regulation of public utility services and in the strategies of the major players in these fields. In response to these changes Italian utilities have made a variety of choices regarding size, presence in more or less capital-intensive stages of different value chains, and diversification. These choices have been implemented both through internal growth and by means of mergers and acquisitions. In this context it is interesting to try to establish whether there is a nexus between these choices and the performance of Italian utilities in terms of profitability and efficiency. Therefore statistical multivariate analysis techniques (cluster analysis and factor analysis) have been applied to several ratios obtained from the 2005 financial statement of 34 utilities. First, a hierarchical cluster analysis method has been applied to financial statement data in order to identify homogeneous groups based on several indicators of the incidence of costs (external costs, personnel costs, depreciation and amortization), profitability (return on sales, return on assets, return on equity) and efficiency (in the utilization of personnel, of total assets, of property, plant and equipment). Five clusters have been found. Then the clusters have been characterized in terms of the aforementioned indicators, the presence in different stages of the energy value chains (electricity and gas) and other descriptive variables (such as turnover, number of employees, assets, percentage of property, plant and equipment on total assets, sales revenues from electricity, gas, water supply and sanitation, waste collection and treatment and other services). In a second round cluster analysis has been preceded by factor analysis, in order to find a smaller set of variables. This procedure has revealed three not directly observable factors that can be interpreted as follows: i) efficiency in ordinary and financial management

Fundamentals of financial statement analysis for academic physician managers.

Science.gov (United States)

Danzi, J T; Boom, M L

1998-04-01

Academic medical centers (i.e., teaching hospitals) and academic medical practices are under pressure to control costs to compete with for-profit health care institutions. The authors explain how academic physician managers who want to control costs wisely must first understand the cost structure of the medical center or practice and compare that structure with those of for-profit institutions. Doing this requires a firm understanding of how to use a valuable tool, financial statement analysis, to assess an institution's health and performance. Such analysis consists of calculating a variety of financial ratios (e.g., operating income divided by revenues; net income divided by total assets) and then comparing them with the corresponding ratios that are considered industry norms. Three types of financial statements (defined in detail) lend themselves to this approach: the balance sheet, income statement, and statement of cash flows. The authors define standard financial ratios, point out their uses and limitations, and emphasize that a ratio's meaning derives from comparing it with the corresponding benchmark ratio in the industry as a whole. Ratios should be used not as the end point of assessing financial status, but as ways to identify possible problems that require further investigation. Analysis of trends of ratios over time within an institution is a complementary approach. The authors then discuss the use of ratios in three standard types of institutional evaluation: of performance, of liquidity and leverage, and of strategic planning. In addition, they present the financial statement of a fictitious academic medical center as an example of how to use ratios for financial statement analysis. The authors emphasize that the key to using the ratios they discuss and hundreds of others is first to decide what question needs answering and then to choose the relevant ratios to provide a basis for finding the answer.

Financial fragility and global dynamics

International Nuclear Information System (INIS)

Dieci, Roberto; Sordi, Serena; Vercelli, Alessandro

2006-01-01

This paper deals with a simple model of financial fluctuations, where a crucial role is played by the dynamic interaction between aggregate current and intertemporal financial ratios. The model results in a 4D discrete-time dynamical system-capable of generating complex dynamics-which is analyzed by means of both analytical tools, such as local stability analysis and bifurcation theory, and numerical simulations. The behavior of the model is studied for different parameter regimes. We show that its dynamic behavior is very sensitive to the parameters that represent (1) the speed of adjustment of the desired current financial ratio towards a safe level of the intertemporal one and (2) the intensity with which aggregate current financial decisions affect future financial constraints. In particular, different parameter regimes are identified, giving rise to two different 'routes' to complexity, one leading to chaotic dynamics, the other to a coexistence of attractors and path-dependence

Financialization across the Pacific: Manufacturing cost ratios, supply chains and power

OpenAIRE

Froud, Julie; Johal, Sukhdev; Leaver, Adam; Williams, Karel

2014-01-01

This article argues that thirty years ago favourable cost conditions helped build productive power in Asia, whereas now US financial power drives and benefits from low labour costs in China, using the very different supply chain positions of Apple Inc. and Foxconn International Holdings (FIH) as examples. In the first section, the authors bring together the literatures on financialization and global supply chains to contextualise the pressures and outcomes discussed. A temporal dimension is a...

Financial Development, Financial Structure, and Macroeconomic Volatility: Evidence from China

Directory of Open Access Journals (Sweden)

Feng Wei

2016-11-01

Full Text Available Using annual data from 1997–2014 of 30 provinces, municipalities, and autonomous regions, subdividing trended and cyclical volatility of macroeconomics and inflation, considering different indicators of financial development and financial structure, this paper investigated the impact of financial development and financial structure on macroeconomic volatility. The empirical results found that (1 the trended and cyclical volatility of the previous macroeconomic period had a significantly positive impact on that of the current period, and the impact of trended volatility was greater than that of cyclical volatility; (2 financial development had a significantly negative impact on macroeconomic cyclical volatility through inflation cyclical volatility, but inflation trended volatility would amplify macroeconomic volatility; financial markets have no significant effect on macroeconomic volatility; financial structure measured with the ratio of stock market turnover and the efficiency of the financial development had a significant positive impact on macroeconomic cyclical volatility; and (3 inflation trended volatility had a significantly negative impact on macroeconomic cyclical volatility and trended volatility, while inflation cyclical volatility had a significantly positive impact on macroeconomic cyclical volatility.

Assessing the Predictive Power of Customer Satisfaction for Financial and Market Performances: Price-to-Earnings Ratio is a Better Predictor Overall

Directory of Open Access Journals (Sweden)

Pierre Rostan

2012-01-01

Full Text Available Our paper shows that based on the RMSE criteria, Price-to-Earnings ratio is a better predictor of financial and market performances of the firm than the Customer Satisfaction index (CS. This conclusion is based on the choice of five financial and seven market indicators that we consider as proxies for financial and market performances with a sample comprising eighty-six companies: Book value, dividend yield, Gross Profit Margin, Price to Cash-Flows, Price-to-Earnings, Price to Sales, Annual return, ROA, ROE, ROI, Volatility and Tobin’s Q. However, CS clearly outperforms our five benchmarks (Tobin’s Q, Price-to-Cash Flows, Price-to-Earnings, Volatility or the indicator itself when forecasting Tobin’s Q, Volatility, ROE and ROI. In periods of volatile market such as year 2008, CS is a more stable predictor of Volatility or ROE than the indicators themselves (i.e. Volatility for Volatility, ROE for ROE.

Financial Risk Ratios and Earnings Management: Reducing Uncertainties in Shariah-compliant Companies

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Soheil Kazemian

2018-01-01

Full Text Available This study examines whether Shariah-compliant companies practice earnings management by investigating the relationship among the risk of financial distress, leverage, and free cash flow in discretionary accruals, which function as a substitute for earnings management. This empirical research is conducted on a sample of Malaysian Shariah-compliant companies from all industries in Bursa Malaysia from 2012 to 2014. Results show that Shariah-compliant companies are highly influenced by the risk of financial distress, leverage, and free cash flow. This study argues that working as either Shariah-compliant or non-Shariah-compliant does not affect the level of earnings management through financial distress, high leverage, and free cash flow by managers. Results should be of interest to stakeholders, shareholders, and regulatory bodies (i.e., the Shariah Advisory Council and the Securities Commission that oversee the accountability of corporate financial reporting to prevent earnings management in Shariah-compliant companies. Findings can also aid relevant authorities (i.e., the Shariah Advisory Council and the Security Commission in Malaysia in overcoming or reducing problems related to earnings management. This study is one of the most significant works in Malaysia in terms of sample size and methodology. It argues that the three elements of earnings management (i.e., financial distress, high leverage, and free cash flow influence better disclosure of reported earnings.

Memprediksi Financial Distress dengan Binary Logit Regression Perusahaan Telekomunikasi

OpenAIRE

antikasari, tiara widya; Djuminah, Djuminah

2017-01-01

In this globalization era, sub–sector telecommunication industry has rapid development as time goes by with the number of customers’ growth. However, its growth is not balanced with operational revenue development. Therefore, it is important to analyze the financial distress in telecommunication companies in order to avoid bankruptcy. This research aimed to investigate the effect of financial ratios to predict probability of financial distress. Financial ratios indicator used profitability ra...

Does Financial Inclusion Induce Financial Stability? Evidence from Cross-country Analysis

Directory of Open Access Journals (Sweden)

Md. Nur Alam Siddik

2018-04-01

Full Text Available In recent times, financial inclusion and financial stability issue have become a priority on policy agendas across the world. However, there is relative dearth of empirical studies addressing and establishing the link between the same. This study fills this gap. Using panel data of 2001-2013, this study empirically investigated whether financial inclusion contributes to country’s financial stability, measured by Z-score. Robust results from GMM dynamic panel data estimator show that financial inclusion variables as measured by number of SME borrowers to total borrowers and ratio of outstanding SME loans to total loans have significant positive contributions to financial stability. Findings also indicate that GDP per capita, liquidity, proportion of private credit to GDP are positively and proportion of domestic credit provided to private sector and financial crisis are negatively associated with financial stability. Empirical findings of this study is of greater significance to the policymakers as it will invoke the attention of governments and policymakers to undertake such policies to accelerate financial inclusion of their countries which in turn will lead to country’s greater financial stability. This study also contributes to empirical literatures of the issue of financial inclusion and financial stability by reconfirming (or otherwise findings of previous studies.

Presenting practice financial information.

Science.gov (United States)

Webster, Lee Ann H

2007-01-01

Medical practice leadership teams, often consisting primarily of physicians with limited financial backgrounds, must make important business decisions and continuously monitor practice operations. In order to competently perform this duty, they need financial reports that are relevant and easy to understand. This article explores financial reporting and decision-making in a physician practice. It discusses reports and tools, such as ratios, graphs, and comparisons, that practices typically include in their reports. Because profitability and cash flow are often the most important financial considerations for physician practices, reports should generally focus on the impact of various activities and potential decisions upon these concerns. This article also provides communication tips for both those presenting practice financial information and those making the decisions. By communicating effectively, these leaders can best use financial information to improve decision-making and maximize financial performance.

Changes in the financial ratios of the wholesale and retail sector companies arising from the new accounting of the operating lease

Directory of Open Access Journals (Sweden)

Mariana Moreira Arrozio

2016-11-01

Full Text Available In a recent study, released by the International Accounting Standard Board (IASB, changes in lease accounting criteria will add $ 2 trillion to the balance sheets of US companies. This impact is mainly due to the accounting characteristics that the operating lease has, off balance item. In this sense, this research analyzed the operating leasing operations of the wholesale and retail companies, qualified as lessees, and the impacts of the publication of IFRS 16 as its determinant. The study was based on the extraction of the accounting information published in the financial statements of the companies listed on the Brazilian BMF & Bovespa stock exchange. The statistical technique used in the study was the Wilcoxon signed rank test. The obtained results with use of the Liquidity, Debt and Leverage ratios, calculated on the basis of the financial statements published in 2015 and the adjusted statements according to the disclosure, have a significant impact on the equity structure of these companies. They revealed an increase of debt level, financial leverage and in liquidity, observed by the recognition of new assets and liabilities.

GAAP VS. IFRS TREATMENT OF LEASES AND THE IMPACT ON FINANCIAL RATIOS

OpenAIRE

Peter Harris; William Stahlin; Liz Washington Arnold; Katherine Kinkela

2013-01-01

As of January 1, 2011, most of the world financial market economies are using International Reporting Standards (IFRS) as the required framework for financial statements. A non-comprehensive listing includes the European Union Countries, Canada, Australia and New Zealand. In the United States, US Generally Accepted Accounting Principles (GAAP) is still required but adoption of IFRS has support of many accounting firms and professional organizations and is under consideration by the SEC. This ...

An Examination of the Relationship between Financial Development ...

African Journals Online (AJOL)

Three financial indicators were used: deposit money bank assets as percentage GDP, ratio of liquid liabilities to GDP and ratio of private sector credit of deposit money banks to GDP. The result found that real gdpc and financial development variables have at least one common stochastic trend driving their relationship.

Analysis of cash flow ratios: A study on CMC

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Somnath Das

2018-01-01

Full Text Available Cash flow ratios help financial users get relevant information about financial resources for a given time. Cash flow ratios are now used more than the traditional ones because it is more effective and justified. Cash flow based ratios are especially surprising because they do not only play a significant role in the credit rating of evaluation, but also forecast the failure of a corporation. In this study, we perform an empirical investigation on a company named CMC. From the study, it is clear that the liquidity and solvency positions of the company were moderate whereas the company maintained low profitability. On the other hand, the efficiency and sufficiency ratios of the study give us a new look on financial judgement.

COMPARING FINANCIAL DISTRESS PREDICTION MODELS BEFORE AND DURING RECESSION

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Nataša Šarlija

2011-02-01

Full Text Available The purpose of this paper is to design three separate financial distress prediction models that will track the changes in a relative importance of financial ratios throughout three consecutive years. The models were based on the financial data from 2000 privately-owned small and medium-sized enterprises in Croatia from 2006 to 2009, and developed by means of logistic regression. Macroeconomic conditions as well as market dynamic have been changed over the mentioned period. Financial ratios that were less important in one period become more important in the next period. Composition of model starting in 2006 has been changed in the next years. It tells us what financial ratios are more important during the time of economic downturn. Besides, it helps us to understand behavior of small and medium-sized enterprises in the period of prerecession and in the period of recession.

Examining financial performance indicators for acute care hospitals.

Science.gov (United States)

Burkhardt, Jeffrey H; Wheeler, John R C

2013-01-01

Measuring financial performance in acute care hospitals is a challenge for those who work daily with financial information. Because of the many ways to measure financial performance, financial managers and researchers must decide which measures are most appropriate. The difficulty is compounded for the non-finance person. The purpose of this article is to clarify key financial concepts and describe the most common measures of financial performance so that researchers and managers alike may understand what is being measured by various financial ratios.

financial analysis of the company

OpenAIRE

Pojerová, Jana

2008-01-01

The main goal of this bachelor thesis called "Company Financial Analysis" is to evaluate the financial situation of ZS Kosova Hora a.s. in the years 2005 2013 using standard methods of financial analysis. To achieve this goal horizontal and vertical analyses, ratio analysis, pyramidal decomposition of the ROE indicator and solvency and bankruptcy models have been used. In all these areas the selected company has been compared with a selected sample of other agricultural enterprises and its fi...

THEORETICAL PROPOSAL FOR EXPANSION OF ROE WITH NEW SUB-RATIOS

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Danilo Dorović

2017-09-01

Full Text Available ROE is the ratio of profitability which can be separated into three ratios in Du Pont model. The question is - can it be even more comprehensive with more than three Du Pont ratios; that is can it also include liquidity, market share, break-even point, plan vs. actual, structure of assets and liabilities, structure of fixed costs, etc.? If these can be included in calculation, the financial, management accounting and strategic analysis could be more integrated into one more rounded system. Financial ratio analysis would also integrate into one ratio the usually different areas of analysis, like structure of assets, structure of liabili-ties, liquidity, turnover, financial leverage, etc. Strategic management and management accounting ratios, developed in the literature and used in business practice, are represented. The article in front of you presents a theoretical proposal through deduction method of how mentioned measures can potentially be included in ROE, resulting in potential benefits in planning and controlling. Integrated different areas of financial ratio analysis, manage- ment accounting and strategic analysis each represented with its ratios in profitability measure ratio, provides potentially better view of conditions, profit multiplicators and risk the profitability is achieved by. Integration inside profitability measure gives a special qual-itative advantage, having in mind that achieved profit is the main goal for owners of the company`s equity.

Monitoring mechanisms and financial distress of public listed companies in Malaysia

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Soheil Kazemian

2017-05-01

Full Text Available This study examines the relationships between financial distress and financial ratio (liquidity, leverage, profitability, firm’s performance, and dividend among public listed companies, using the Altman Z-Score to determine the financial distress levels among public listed companies in Malaysia. Five-year data has been collected (2010 to 2014 from the annual financial statements and from Data Stream of public listed companies in Malaysia. The findings indicate significant relationships between liquidity, leverage, profitability, firm’s performance, and dividend with the financial distress levels among the companies in question. This study also examines the interaction effects of financial ratios and the year after implementation of the Malaysian Code on Corporate Governance (MCCG in 2012 on financial distress levels. The results suggest that only liquidity and firm’s performance have stronger effects on financial distress levels in two years after MCCG implementation. This indicates that after the implementation of the Code, liquidity and firms’ performance ratios had strong and significant effect on financial distress levels. Overall, this study could help investors, creditors as well as external regulators in monitoring companies from being classified as financially distressed companies.

Financial Performance Bank BNI Syariah Company

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Diana Widhi Rachmawati

2018-05-01

Full Text Available ABSTRACT PT Bank BNI Syariah, one of them working are a big banking company is almost covering all over the country until now looked at  pretty good company asset which are owned, so author conduct research in the title “Financial Performance PT Bank BNI Syariah in Solvability Ratio”. Financial Statement Analysis is aplication from tools and technical analysis financial report general aim and data to be related and estimation produce useful conclutions in business analysis. Financial Performance Analysis research used analysis methode is solvability ratio. General aim to give information finance performance PT Bank BNI Syariah development.  Special goals is finance performance PT Bank BNI Syariah from Solvability Ratio”. This Sample is: PT Bank BNI Syariah. Final result which is research obtained it says finance performance  PT Bank BNI Syariah from Solvability Ratio quite solvable, because this three point inside it contained increased.  This development hope PT Bank BNI Syariah, to be remain consistent with trying to do breakthrough a company goals   Key Words  :  Financial Performance PT Bank BNI Syariah

Financial Leverage and Corporate Performance: Does Financial Crisis Owe an Explanation?

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Syed Jawad Hussain Shahzad

2015-04-01

Full Text Available The objective of this study is to investigate the impact of financial leverage on corporate financial performance of Pakistan’s textile sector from 1999-2012 using panel data. The leverage-performance relationship is examined with a special focus on the Global Financial Crisis of 2007-2008. Both accounting-based (Return on Assets - ROA and market-based (Tobin’s Q measures of corporate financial performance are used. Regression analysis is performed with and without inclusion of financial crisis dummy. Total Debt to Total Assets (TDTA, Long Term Debt to Total Assets (LDTA, Short Term Debt to Total Assets (SDTA and Debt to Equity (DE ratios are used as proxies for financial leverage whereas firm’s size and firm’s efficiency are used as control variables. The results indicate that financial leverage has a negative impact on corporate performance when measured with ROA. Whereas in case of Tobin’s Q, SDTA coefficient is positive. It can be concluded that since cost of borrowing is high in Pakistan and debt capital markets are less developed, firms are forced to resort to banks as their source of debt finance and thus have to repay huge amount of principal and interest which has a heavy toll on their financial health. In addition to this, financial crisis was found to have a negative impact on corporate performance and also affect the leverage-performance relationship.

Financial analysis as a tool for asset and capital management

OpenAIRE

BLAŽKOVÁ, Andrea

2010-01-01

This thesis deals with general characteristics of financial analysis, the importance of financial analysis for financial management, an expression of financial ratios, including their systems, economic value added, and some bankruptcy and creditworthy models. The analytical section of the thesis applies selected financial indicators to interpret the financial situation of the constructional company Hochtief CZ.

Key components of financial-analysis education for clinical nurses.

Science.gov (United States)

Lim, Ji Young; Noh, Wonjung

2015-09-01

In this study, we identified key components of financial-analysis education for clinical nurses. We used a literature review, focus group discussions, and a content validity index survey to develop key components of financial-analysis education. First, a wide range of references were reviewed, and 55 financial-analysis education components were gathered. Second, two focus group discussions were performed; the participants were 11 nurses who had worked for more than 3 years in a hospital, and nine components were agreed upon. Third, 12 professionals, including professors, nurse executive, nurse managers, and an accountant, participated in the content validity index. Finally, six key components of financial-analysis education were selected. These key components were as follows: understanding the need for financial analysis, introduction to financial analysis, reading and implementing balance sheets, reading and implementing income statements, understanding the concepts of financial ratios, and interpretation and practice of financial ratio analysis. The results of this study will be used to develop an education program to increase financial-management competency among clinical nurses. © 2015 Wiley Publishing Asia Pty Ltd.

Performance evaluation using bootstrapping DEA techniques: Evidence from industry ratio analysis

OpenAIRE

Halkos, George; Tzeremes, Nickolaos

2010-01-01

In Data Envelopment Analysis (DEA) context financial data/ ratios have been used in order to produce a unified measure of performance metric. However, several scholars have indicated that the inclusion of financial ratios create biased efficiency estimates with implications on firms’ and industries’ performance evaluation. There have been several DEA formulations and techniques dealing with this problem including sensitivity analysis, Prior-Ratio-Analysis and DEA/ output–input ratio analysis ...

A Financial Analysis of Brazilian Hospitals Between 2006 and 2011

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Antônio Artur de Souza

2014-12-01

Full Text Available This paper presents the results of a research that aimed at developing a financial analysis of a sample of Brazilian hospitals between 2006 and 2011. The data were collected from financial statements of 23 hospitals and from the Database of United Health System. These secondary data were analyzed through the following techniques: descriptive statistics, Spearman’s correlation, Kolmogorov-Smirnov’s test, Kruskal-Wallis’ test and Chi-square’s test. It was verified that the sample presents unsatisfactory general results about financial performance, especially when related to financial ratios of profitability and return. However, the analysis of different categories of hospitals displays relevant and significant divergences, especially about the type of hospitals: publics and voluntaries ones. The voluntary hospitals present higher liquidity ratios and the best profitability and their capital structure usually focus on long term financing obtained from external agents. These evidences suggest that those organizations focus on financial leverage to achieve better results without deteriorate their liquidity. On the other hand, the public hospitals present lower liquidity as well as worse profitability and return ratios. It was verified that the large-sized hospitals usually present lower financial ratios (liquidity, profitability and return than the medium-sized hospitals.

Financial Statement Fraud Detection using Text Mining

OpenAIRE

Rajan Gupta; Nasib Singh Gill

2013-01-01

Data mining techniques have been used enormously by the researchers’ community in detecting financial statement fraud. Most of the research in this direction has used the numbers (quantitative information) i.e. financial ratios present in the financial statements for detecting fraud. There is very little or no research on the analysis of text such as auditor’s comments or notes present in published reports. In this study we propose a text mining approach for detecting financial statement frau...

Financial Performance of Pension Companies Operating in Turkey with Topsis Analysis Method

OpenAIRE

Gulsun Isseveroglu; Ozan Sezer

2015-01-01

In this study, financial performances of the companies were analyzed by TOPSIS method via using financial tables of the sixteen pension and life-pension companies. Firstly, financial ratios which are one of the important indicators for the financial power of companies were determined and calculated for each company separately. Calculated ratios converted to demonstrate of company performance unique point by using TOPSIS method. Companies have sorted according to their calculated performance s...

COMPANIES’FINANCIAL STATUS AND THE BUSINESS TURNOVER ON EMERGENT MARKETS: THE ROMANIAN CASE

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Stefea Petru

2013-07-01

Full Text Available The aim of this study is to test for the relevance of some financial ratios as descriptors of companies’ financial status in explaining the evolutions of their business turnover. We are considering a data sample of 36 companies quoted on the Romanian capital market for a time span between 2007 and 2010.The predictive capacity of some significant financial ratios for the companies’ business turnover is analyzed and a methodology for the evaluation of their financial status based on these ratios is advanced. We found that the predictive capacity of some relevant financial ratios for the dynamic of some quoted companies’ turnovers is non-uniform across the two conventional sectors in which we have grouped these companies according to their field of activity. Based on these results, an synthetic indicator of the companies’ financial status is constructed at the level of each individual sector and the non-linear correlation between this indicator and the business turnover is tested.

Financial Statement Analysis for Colleges and Universities.

Science.gov (United States)

Woelfel, Charles J.

1987-01-01

Presents ratio analysis of financial statements as a tool applicable for use by nonprofit institutions for evaluation of financial and operational performance of an institution. It can be used as a screening, forecasting, diagnostic, and evaluative tool for administration and governance. (MD)

Investigation on the Efficiency of Financial Companies in Malaysia with Data Envelopment Analysis Model

Science.gov (United States)

Weng Siew, Lam; Kah Fai, Liew; Weng Hoe, Lam

2018-04-01

Financial ratio and risk are important financial indicators to evaluate the financial performance or efficiency of the companies. Therefore, financial ratio and risk factor are needed to be taken into consideration to evaluate the efficiency of the companies with Data Envelopment Analysis (DEA) model. In DEA model, the efficiency of the company is measured as the ratio of sum-weighted outputs to sum-weighted inputs. The objective of this paper is to propose a DEA model by incorporating the financial ratio and risk factor in evaluating and comparing the efficiency of the financial companies in Malaysia. In this study, the listed financial companies in Malaysia from year 2004 until 2015 are investigated. The results of this study show that AFFIN, ALLIANZ, APEX, BURSA, HLCAP, HLFG, INSAS, LPI, MNRB, OSK, PBBANK, RCECAP and TA are ranked as efficient companies. This implies that these efficient companies have utilized their resources or inputs optimally to generate the maximum outputs. This study is significant because it helps to identify the efficient financial companies as well as determine the optimal input and output weights in maximizing the efficiency of financial companies in Malaysia.

ANTESEDEN PROBABILITAS FINANCIAL DISTRESS PADA PERUSAHAAN MANUFAKTUR DI INDONESIA

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Triani Pujiastuti

2017-03-01

Full Text Available Based on theory and previous research, some factors which influenced probability of corporate financialdistress were found. This research was done for testing the consistency of research result with different researchperiod that would strengthen the related empirical research finding. The purpose of this research was to test theimpact of profitability ratio (Return on Assets, working capital policy, capital structure, size, current ratioand firm age toward the probability of financial distress of manufacturing firms at Indonesian Stock Exchange.The method used in this research was purposive sampling, which was taking data with certain criteria.The criteria was that the companies or firms used were those which issued bond and were listed in IndonesianStock Exchange between 2007 until 2012 and had data completion needed in this research. The research resultsusing Logistic Regression were 1 test of profitability ratio, working capital policy ratio, capital structure, size,and firm age had significant influence to the probability of financial distress manufacturing firms in Indonesia,2 partially only profitability ratio that had negative significant influence to the probability of financialdistress manufacturing firms in Indonesia while working capital ratio, capital structure, size, and age firm didnot have significant influence to financial distress manufacturing firms in Indonesia. This research producedprediction model of financial distress.

Financial Ratio and Its Influence to Profitability in Islamic Banks.

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Erika Amelia

2015-10-01

Full Text Available This research aims to analyze the influence of the Capital Adequacy Ratio (CAR, Non Performing Financing (NPF, Financing to Deposit Ratio (FDR and Biaya Operasional Pendapatan Operasional (BOPO to Return on Asset (ROA in Bank Muamalat Indonesia and Bank Syariah Mega. The data analysis method used in this research is multiple regression analysis. From the test results show that the Capital Adequacy Ratio (CAR, Non Performing Financing (NPF, Financing to Deposit Ratio (FDR and Biaya Operasional Pendapatan Operasional (BOPO simultaneously effect to Return on Asset (ROA. Based on the test results of the t statistic was concluded that the Capital Adequacy Ratio (CAR, Non Performing Financing (NPF and the Financing to Deposit Ratio (FDR partially no significant effect to Return on Asset (ROA, while Biaya Operasional Pendapatan Operasional (BOPO partially significant effect to Return on Asset (ROADOI: 10.15408/aiq.v7i2.1700

The Competition between London Companies Regarding Their Financial Performance

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Simionescu Mihaela

2016-06-01

Full Text Available There is a high level of competition between companies and the final result is often measured by their financial performance. The main purpose of this study is to evaluate the financial performance of a sample of companies from London. Statistical analysis is performed of 293 companies randomly selected from the population of firms resident in London, the economic indicators being registered for 2014. The main results indicated that most of the variation in financial performance is explained by the book-to-market ratio and cash-to-assets ratio. On the other hand, financial performance is also explained by cash flow and leverage. Most of the firms that were placed in the same group had a successful financial performance in 2014. Few companies located in the other cluster encountered some difficulties regarding cash flow and sales. This situation could be explained by the difficulties of facing the economic crisis. Thus the financial performance evaluation is useful in improving a firm’s financial indicators in order to achieve a higher profit. The diagnosis will help managers in taking the most suitable decisions to solve the financial problems by selecting the best strategies.

CASH AND LIQUIDITY/LIQUIDITY AND LIQUIDITY RATIO

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BEATRIX LIGHEZAN BREUER

2012-12-01

Full Text Available The present paper aims to present the correlation as well as the differences between liquidity/cash and liquidity ratio in terms of economic entities. Researches on this topic are based on the opinions of some specialists in accounting and in the economic-financial analysis, as well as on the national legal stipulations and the ones set out in the International Accounting Standards, the Financial report, respectively. The object of this paper is represented by the correlation between liquidity/cash and liquidity ratios representing the liquidity as current assets, assets implied in the determination of liquidity ratios. The end of the paper consists of the conclusions drawn from the issues presented in the paper but also our views on this research topic.

A comparative financial analysis of multi-institutional organizations by ownership type.

Science.gov (United States)

Coyne, J S

1985-01-01

Concern about future directions in healthcare exists, with corporate consolidation seen as likely and necessary. To understand this transformation, the author examines the financial growth trends among the nation's leading corporate providers. Investor-owned (IO) and not-for-profit (NFP) firms are compared using audited data on four financial accounts (assets, debt, equity and income) and three financial ratios (liquidity, leverage, and profitability). The author analyzes financial trends from 1978 to 1982 and looks beyond the significant differences in the balance sheet and income statement accounts to a significant similarity in ratio trends between the NFP and the IO firms' financial conditions. The implications of these findings are discussed in terms of future forms of corporate providers.

Liquidity, banking and financial crises / B. de Waal

OpenAIRE

De Waal, B

2013-01-01

Some financial experts have blamed deficiencies in Basel II capital regulation for the exacerbation of financial crises in 2007 to 2012. In response to this, new proposals in the form of Basel III attempt to raise the quality, consistency and transparency of the regulatory capital base in order to enhance the risk coverage of Basel II via appropriate ratios. In this article, the authors explore how the new Basel liquidity standards, as encapsulated by the liquid coverage ratio ...

Benchmarking Non Public Hospitals in Puerto Rico: A Key Component in the Financial Performance

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Arisbel Ramos Martin

2016-03-01

Full Text Available Benchmarking is considered a key component of the organizational performance measurement system. This study examines a sample of 53 profit and nonprofit hospitals registered in the American Hospital Directory, through four financial dimensions: liquidity, efficiency, profitability and capital structure. The purpose of the study is to validate whether the financial industry benchmark differs or not from a group of 17 selected financial ratios of profit and nonprofit hospitals, to determine if their financial performance is efficient or inefficient in the Puerto Rico health care system. The findings from the research show that 53% or more of the 17 selected financial ratios, compared globally, suggest being efficient in both types of hospitals. This means that these financial ratios were greater than or equal to the industry benchmark.

Contribution to the problem of liquidity ratios

OpenAIRE

Dvoøáèek Jaroslav

1997-01-01

The article is based on the importance of the financial analysis in mining industry. The author pays attention to liquidity ratios given in literature from the standpoint of their number, content, units and recommended quantity value of single ratios. For the application in practice two liquidity ratios are suggested and the methodology of their recommended values determination is given.

Methodological Approach to Company Cash Flows Target-Oriented Forecasting Based on Financial Position Analysis

OpenAIRE

Sergey Krylov

2012-01-01

The article treats a new methodological approach to the company cash flows target-oriented forecasting based on its financial position analysis. The approach is featured to be universal and presumes application of the following techniques developed by the author: financial ratio values correction techniques and correcting cash flows techniques. The financial ratio values correction technique assumes to analyze and forecast company financial position while the correcting cash flows technique i...

Financial Structure and Economic Development in Nigieria

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Ph. D. Olusegun Olowe

2012-05-01

Full Text Available In this study , the measurement of the Nigerian financial interrelation ratio was considered in line with the structure and development of financial system between 1999 and 2008 with a view to examining the incidences of the financial liberalization . The financial intermediation role for Nigeria on current basic prices was computed to determining the extent of stability and /or positive cum negative changes. This is to ensure the involvement of government as well as thedegree of financial institutions’ involvement in the economic growth and development of the country. In essence, the results of this study will be of relevance to formulate and execute policy formulation in its entirety. The result of the study revealed a pure neglect in the country with emphasis on financial intermediation. The earlier we put an enhanced financial structure in place, , the better for the economy.

Contribution to the problem of liquidity ratios

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Dvoøáèek Jaroslav

1997-03-01

Full Text Available The article is based on the importance of the financial analysis in mining industry. The author pays attention to liquidity ratios given in literature from the standpoint of their number, content, units and recommended quantity value of single ratios. For the application in practice two liquidity ratios are suggested and the methodology of their recommended values determination is given.

La Dinámica Cross-Section de los Ratios Financieros: ¿Tienden los Ratios a Converger hacia la Media Sectorial?

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Manuel Illueca Muñoz

2002-12-01

Full Text Available El objetivo fundamental de este artículo consiste en contrastar si los ratios financieros describen un proceso de ajuste / convergencia hacia la media sectorial. Utilizando un enfoque no paramétrico, se ha modelizado explícitamente la dinámica de las distribuciones de seis ratios, calculados a partir de una muestra de empresas del sector español de pavimentos y revestimientos cerámicos. Los resultados no permiten afirmar que las empresas de la muestra converjan hacia la media del sector, al contrario, las distribuciones de probabilidad de los ratios analizados presentan a largo plazo una dispersión similar a la del periodo muestral.The main objective of this paper is to test whether financial ratios follow a convergent path towards the industry mean. A non parametric approach is used to model the cross-section dynamics of six financial ratios, computed on a sample of Spanish tile firms. Our findings do not support the hipothesis of convergence. The dispersion of the ratios does not shrink in the long term.

Financial Plumbing and Monetary Policy

OpenAIRE

Manmohan Singh

2014-01-01

This paper focuses on how changes in financial plumbing of the markets may impact the monetary policy options as central banks contemplate lift off from zero lower bound (ZLB). Under the proposed regulations, banks will face leverage ratio constraints. As a result of quantitative easing (QE), banks want balance sheet “space” for financial intermediation/ non-depository activities. At the same time, regulatory changes are boosting demand for high quality liquid assets. The paper also discusses...

The Impact of Financial Diplomacy and the Effects of Financial Crisis on Norwegian Firms' Capital

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Dan DUMITRIU

2015-03-01

Full Text Available This research focuses on investigating changes in the financial diplomacy of the Norwegian firms’ leverages due to the decrease in banks’ lending as a consequence of the financial crisis shock wave. The research question is whether the leverage ratio measured as debt-to-equity significantly declined as a consequence of the credit crunch. Its purpose is to analyze the relationship between firms, financial diplomacy and banks and find out its implications on the capital structure, answering to the question whether firms whose bank received a large shock after Lehman Brothers’ default changed their capital structure or they found substitutes for bank lending. This paper does not study whether the changes in financial leverage led to a decreased performance of the companies, the research focuses on the relationship between Norwegian financial diplomacy and firms, emphasizing how performance of the banks influences the way in which a company finances its assets and which substitutes does it have when there is a credit crunch.

Business strategy and financial structure: an empirical analysis of acute care hospitals.

Science.gov (United States)

Ginn, G O; Young, G J; Beekun, R I

1995-01-01

This study investigated the relationship between business strategy and financial structure in the U.S. hospital industry. We studied two dimensions of financial structure--liquidity and leverage. Liquidity was assessed by the acid ratio, and leverage was assessed using the equity funding ratio. Drawing from managerial, finance, and resource dependence perspectives, we developed and tested hypotheses about the relationship between Miles and Snow strategy types and financial structure. Relevant contextual financial and organizational variables were controlled for statistically through the Multivariate Analysis of Covariance technique. The relationship between business strategy and financial structure was found to be significant. Among the Miles and Snow strategy types, defenders were found to have relatively high liquidity and low leverage. Prospectors typically had low liquidity and high leverage. Implications for financial planning, competitive assessment, and reimbursement policy are discussed.

A Comparative Study of Financial Data Sources for Critical Access Hospitals: Audited Financial Statements, the Medicare Cost Report, and the Internal Revenue Service Form 990

Science.gov (United States)

Ozmeral, Alisha Bhadelia; Reiter, Kristin L.; Holmes, George M.; Pink, George H.

2012-01-01

Purpose: Medicare Cost Reports (MCR), Internal Revenue Service Form 990s (IRS 990), and Audited Financial Statements (AFS) vary in their content, detail, purpose, timeliness, and certification. The purpose of this study was to compare selected financial data elements and characterize the extent of differences in financial data and ratios across…

Financial repression and high public debt in Europe

NARCIS (Netherlands)

van Riet, Ad

2018-01-01

The sharp rise in public debt-to-GDP ratios in the aftermath of the global financial crisis of 2008 posed serious challenges for fiscal policy in euro area countries. This thesis examines whether and to what extent modern financial repression has been applied in Europe to address these challenges.

INCOME PER BED AS A DETERMINANT OF HOSPITAL’S FINANCIAL LIQUIDITY

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Agnieszka Bem

2014-10-01

Full Text Available Hospitals’ financial condition is very important, in terms of availability and quality of inpatient health care services. Inpatient’s services consume, in Poland, an important part (about 50% of National Health Fund resources, but financial situation of hospitals is difficult and many hospitals report problems with liquidity and solvency. The purpose of this research is to study the relationship between the intensity of care, measured by the annual income per bed, and the static liquidity ratios (current ratio and quick ratio. The research has been conducted on the sample of 138 Polish hospitals, using data covering the period 2009-2011. In order to test research hypotheses, statistical tools have been used (T-Student distribution. The study has shown, that, during analyzed period, liquidity ratios have lowered and the level of financial liquidity is, in case of Polish hospitals, lower than recommended in the literature. The authors also confirmed the existence of the relationship between annual income per bed and liquidity ratios. However, the most important finding is that the relationship between the hospital’s income per bed and financial liquidity ratios is positive only up to a certain level, which has been estimated at about 60,000-70,000 EUR per bed. Above this level further increase in income per bed decreases liquidity ratios. This finding seems to be extremely important for health care managers, which usually strive for the income maximization.

FINANCIAL POSITION AND ITS RELEVANCE TO STAKEHOLDERS

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MIRON VASILE-CRISTIAN-IOACHIM

2015-04-01

Full Text Available The financial position of an economic entity is a concept that can have different meanings, depending on the stakeholder category that make its analysis. In energy sector, which is considered of high importance in the national economy, we consider that the most important category of stakeholder is the state (government, because ensuring the functionality of this sector is an crucial condition for development of others sectors from national economy. For this reason, we can look at the informational needs of other stakeholder categories trough the state’s “sine qua non” condition to ensure the optimal functionality of this sector, which manifests itself like this: the functioning of the sector involves the attraction of investors, the functioning of the sector involves the existence of human resources, the functioning of the sector cannot be ensured without the existence of commercial relations that involves suppliers and clients and for insuring the functioning of the sector it is often require various financing sources. All those aspects are giving raise to some categories of stakeholder interested over the parameters in which the energy sector entities are functioning, one of the interest domain being the financial position of the companies activating in its field. Over the present study we had in view to highlight the main present approaches regarding the concept of financial position, but also the main issues fallowed by the main stakeholder categories in their attempt to appreciate the financial position of the entities activating in energy sector which are listed to Bucharest Stock Exchange. The results of this study have showed that there is some base requirements regarding the informational needs of stakeholder regarding the financial position of the companies activating in energy sector, and those are related to the concepts of going concern, overall solvency ratio, general liquidity ratio and indebtedness degree. After this study

Generalized financial ratios to predict the equity premium

NARCIS (Netherlands)

Algaba, Andres; Boudt, Kris

2017-01-01

Empirical evidence for the price-dividend ratio to be a predictor of the equity premium is weak. We argue that changes in the economic conditions and market composition lead to a time-varying relationship between prices, dividends and the equity premium. Exploiting the information in the rolling

Forecasting Fire Insurance Loss Ratio in Misr Insurance Company

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Tarek TAHA

2017-06-01

Full Text Available Loss ratio is one of the most important indicator that has many strategic decisions applications, such as pricing, underwriting, investment, reinsurance and reserving decisions. It serves as an early warning of financial solvency of insurance companies and it can be judged on the strength of the financial position of these companies. The aim of this study is to identify the reliable time series-forecasting model to forecast loss ratio estimates of fire segment in Misr insurance company. Box-Jenkins Analysis is applied on actual reported loss ratios data for Misr insurance company for the period 1980/1981– 2013/2014. The study concludes that the best forecasting model is ARMA(1,1.

Financial characteristics of hospitals purchased by investor-owned chains.

Science.gov (United States)

McCue, M J; Furst, R W

1986-01-01

This article focuses on the preacquisition financial condition of not-for-profit hospitals acquired by investor-owned hospital chains. Financial ratios are used to determine if not-for-profit hospitals acquired by investor-owned hospital systems have common financial characteristics which make them a likely target for a takeover. The results indicate that during the time period studied, investor-owned hospital systems did tend to purchase hospitals with common financial characteristics and that these characteristics provide a reasonable description of a financially distressed hospital. This finding has important consequences for our health care delivery system. PMID:3771232

Local Government Units in Indonesia: Demographic Attributes and Differences in Financial Condition

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Rusmin Rusmin

2014-06-01

Full Text Available This study examines the outcome of decentralisation reforms in Indonesia, focusing on the association between demographic characteristics and differences in the financial condition of local governments units. It investigates cross-sectional data pertaining to demographic characteristics and financial statements audited by the Supreme Audit Body of 419 Indonesian local government units for the fiscal year 2007. It utilises demographic attributes including scope of entity, location, tenure (date of entry, gender, human development index (HDI and size of local governments to explain differences in the financial condition of Indonesia’s local government. Local government financial condition is proxied by quick ratio, debt ratio, services ratio, and ratio of local to total revenues. The results suggest that scope and location of local government units help explain all of the financial condition variables. The findings further infer that local government units domiciled in Java tend to report better financial conditions relative to those domiciled in other islands. Our results also show that local government units with greater female populations and higher HDI are more likely to have a local authority that (1 has better ability to finance their general services from their unrestricted net assets, and (2 has greater ability to earn more revenues from local sources. Finally, this study documents that the larger the population of a local government unit, the higher its liquidity position, the stronger its ability to funding general services, and the greater its possibility earning revenues from its local sources.

Does competition improve financial stability of the banking sector in ASEAN countries? An empirical analysis.

Science.gov (United States)

Noman, Abu Hanifa Md; Gee, Chan Sok; Isa, Che Ruhana

2017-01-01

This study examines the influence of competition on the financial stability of the commercial banks of Association of Southeast Asian Nation (ASEAN) over the 1990 to 2014 period. Panzar-Rosse H-statistic, Lerner index and Herfindahl-Hirschman Index (HHI) are used as measures of competition, while Z-score, non-performing loan (NPL) ratio and equity ratio are used as measures of financial stability. Two-step system Generalized Method of Moments (GMM) estimates demonstrate that competition measured by H-statistic is positively related to Z-score and equity ratio, and negatively related to non-performing loan ratio. Conversely, market power measured by Lerner index is negatively related to Z-score and equity ratio and positively related to NPL ratio. These results strongly support the competition-stability view for ASEAN banks. We also capture the non-linear relationship between competition and financial stability by incorporating a quadratic term of competition in our models. The results show that the coefficient of the quadratic term of H-statistic is negative for the Z-score model given a positive coefficient of the linear term in the same model. These results support the non-linear relationship between competition and financial stability of the banking sector. The study contains significant policy implications for improving the financial stability of the commercial banks.

Financial qualifications review of applicants for nuclear power plant construction permits

International Nuclear Information System (INIS)

Hendrickson, P.L.; Mullen, M.F.; Carr, D.B.

1988-09-01

The NRC and its predecessor the AEC have had a regulatory requirement since 1956 that utilities seeking a construction permit for a nuclear power plant be financially qualified to construct and operate the plant. Several amendments to the requirements were made over the years including an attempt in 1982 to drop financial qualification review for electric utilities. This attempt was subsequently found invalid by a federal court. Nevertheless, financial qualification reviews consume significant amounts of NRC staff time and time at Atomic Safety and Licensing Board hearings. The analysis reported in this study was conducted to determine whether there is any empirical evidence of a relationship between a utility's financial health at the time of its construction permits application and the subsequent safety performance of the operating plant. The principal financial measures used to test for this relationship were bond rating, interest coverage ratio, debt/asset ratio, debt/equity ratio, and rate of return on equity. The principal safety measure was the long-term average of the scores assigned the utility in four key areas by the NRC under the Systematic Assessment of Licensee Performance program. The results of the analysis showed no evidence of a relationship between financial health at the time of the construction permit and subsequent safety performance. 7 refs., 16 figs., 4 tabs

MICROECONOMIC FACTORS AFFECTING BANKS’ FINANCIAL PERFORMANCE: THE CASE OF ROMANIA

Directory of Open Access Journals (Sweden)

Lavinia Mihaela GUŢU

2015-04-01

Full Text Available Banks are important cells in the economy as they have a significant role by maintaining and encouraging the development of economic sectors. They refocus the resources from those who have surplus to those which have a deficit. Therefore, as any other enterprises, performance is highly desirable for banks and, then, it is crucial to discover what the main factors that influence this objective are. So, this paper analyzes the microeconomic factors affecting bank’s financial performance focusing on 11 entities for the period between 2003 and 2013. The performance is measured by return on assets. The independent variables used are bank’s size, financial leverage,loans to assets ratio, deposits to assets ratio, number of employees, liquidity, net result and monetary policy rate. The results show that bank’s size, loans to assets ratio and liquidity have not a significant impact on performance. Financial leverage has a negative impact, meanwhile the number of employees, deposits to assets ratio and net result have a positive effect.

PUBLIC ATTENTION AND FINANCIAL INFORMATION AS DETERMINANTS OF FIRMS PERFORMANCE IN THE TELECOMMUNICATION SECTOR

Directory of Open Access Journals (Sweden)

Ridwan Nurazi

2017-03-01

Full Text Available The remarkable progress of information technology had driven every firm to publish their financial performanceby using internet. This circumstance resulted in the high public attention in order to generate the stockreturn. In addition, financial information such as financial ratio namely DER, LEV, NPM, ROI, and ROEwere supposed to influence the firm’s performance either in positive or negative effects. This study focused onthe investigation of public attention (PA and financial information as determinants of financial performanceon four companies in Telecommunication sector, Indonesia Stock Exchange (IDX, within time period from2007 to 2012. Hereby, we pointed out that public attention and financial information considerably contributeto firm performance, in which the Pooled Least Square (EGLS with cross section and period weight wasemployed. The results showed that Public Attention (PA positively contributed towards stock return. Further,financial ratio such as debt-to-equity ratio (DER negatively influenced the return. Leverage (LEV, net profitmargin (NPM and return on investment (ROI positively related to return. However, return on equity (ROEshowed the contrary sign, in which it negatively influenced the return but was statistically insignificant. Then,we reported that the stock price (LNSP did not significantly contribute towards return (RET.

Monitoring mechanisms and financial distress of public listed companies in Malaysia

OpenAIRE

Soheil Kazemian; Noor Azura Ahmad Shauri; Zuraidah Mohd Sanusi; Amrizah Kamaluddin; Shuhaida Mohamed Shuhidan

2017-01-01

This study examines the relationships between financial distress and financial ratio (liquidity, leverage, profitability, firm’s performance, and dividend) among public listed companies, using the Altman Z-Score to determine the financial distress levels among public listed companies in Malaysia. Five-year data has been collected (2010 to 2014) from the annual financial statements and from Data Stream of public listed companies in Malaysia. The findings indicate significant relationships betw...

Financial history and financial economics

OpenAIRE

Turner, John D.

2014-01-01

This essay looks at the bidirectional relationship between financial history and financial economics. It begins by giving a brief history of financial economics by outlining the main topics of interest to financial economists. It then documents and explains the increasing influence of financial economics upon financial history, and warns of the dangers of applying financial economics unthinkingly to the study of financial history. The essay proceeds to highlight the many insights that financi...

Financial Performance of Health Insurers: State-Run Versus Federal-Run Exchanges.

Science.gov (United States)

Hall, Mark A; McCue, Michael J; Palazzolo, Jennifer R

2018-06-01

Many insurers incurred financial losses in individual markets for health insurance during 2014, the first year of Affordable Care Act mandated changes. This analysis looks at key financial ratios of insurers to compare profitability in 2014 and 2013, identify factors driving financial performance, and contrast the financial performance of health insurers operating in state-run exchanges versus the federal exchange. Overall, the median loss of sampled insurers was -3.9%, no greater than their loss in 2013. Reduced administrative costs offset increases in medical losses. Insurers performed better in states with state-run exchanges than insurers in states using the federal exchange in 2014. Medical loss ratios are the underlying driver more than administrative costs in the difference in performance between states with federal versus state-run exchanges. Policy makers looking to improve the financial performance of the individual market should focus on features that differentiate the markets associated with state-run versus federal exchanges.

Investigating the effect of growth and financial strength variables on the financial leverage: Evidence from the Tehran Stock Exchange

Directory of Open Access Journals (Sweden)

Iman Dadashi

2013-04-01

Full Text Available The primary objective of this study is to investigate the effect of growth and financial strength variables on the financial leverage for some listed companies in the Tehran Stock Exchange. For this purpose, a sample of 700 firm-years among listed companies in the Tehran Stock Exchange over the period 2006-2010 was examined. In the present study, the growth variables, including asset growth, profit growth and sales growth; and financial strength calculated by the Altman Z-bankruptcy model have been considered as independent variables. In addition, the ratios of long-term debt to total assets, long-term debt to fixed assets, total long-term debt and short-term receivable facilities to equity capital and total long-term debt and short-term receivable facilities to total assets are used as measures of financial leverage and dependent variables. The results indicate that there is a negative and significant relationship between assets growth and some indexes of financial leverage. There is also a positive and significant relationship between the variables of profit growth, sales growth and financial strength with financial leverage measures.

Financial Structure Analysis of Publicly Held Lodging Companies: An International Comparison

Directory of Open Access Journals (Sweden)

Erdinç KARADENİZ

2015-12-01

Full Text Available The aim of this study is to analyze financial structure and preference of lodging companies that issues traded in European and Turkish stock markets by using ratio analysis technique. In this context, statements of financial positions of 51 lodging companies from European stock markets and 12 lodging companies from Borsa Istanbul used and calculated 10 financial structure ratios for each company between 2011-2012-2013 years. In the results of ratio analysis, it is determined that Turkish lodging companies use mainly equity while European lodging companies prefer liabilities and debt to finance their activities. In respect to maturity of liabilities it is determined that European lodging companies prefer long term debt while Turkish lodging companies use short term liabilities. Finally, it is determined that European lodging companies use leasing but no Turkish lodging companies to choose leasing.

CASH AND LIQUIDITY/LIQUIDITY AND LIQUIDITY RATIO

OpenAIRE

ADELA BREUER; MIHAELA LESCONI FRUMUSANU; BEATRIX LIGHEZAN BREUER; ANDRA MANCIU

2012-01-01

The present paper aims to present the correlation as well as the differences between liquidity/cash and liquidity ratio in terms of economic entities. Researches on this topic are based on the opinions of some specialists in accounting and in the economic-financial analysis, as well as on the national legal stipulations and the ones set out in the International Accounting Standards, the Financial report, respectively. The object of this paper is represented by the correlation between liquidit...

Ratio analysis and Piotroski scoring system in the automobile industry in Croatia

Directory of Open Access Journals (Sweden)

Morana Mesarić

2014-10-01

Full Text Available To gain insight into operational efficiency, sustainable profitability, the ability to fulfil commitments, use of funds borrowed or investment risk or operational self-sufficiency, it is necessary to conduct analyses of financial statements usually known as ratio analysis. The paper provides analyses of five Croatian general distributors of the automobile industry. Ratios used in the analyses are those used in the Piotroski f-scoring analyses, which are famous for assessing financial capacities of enterprises on the stock exchange market. Based on ratios used in Piotroski scoring systems the assessment of five enterprises, as well as the sector as a whole was carried out. The analysis covers the period 2007-2012. That is the period of the rise, falling and recovery of the automotive industry throughout the world as well as the rise, falling and recession of the whole economy including the automobile market. In general, the sector itself is financially unstable and consequently risk exposed. Results are used for preliminary analyses and prediction of the future financial strength of the auto industry in Croatia.

ANALYSIS OF MARKET TIMING TOWARD LEVERAGE OF NON-FINANCIAL COMPANIES IN INDONESIA

OpenAIRE

Wulandari, Vera Pipin; Setiawan, Kusdhianto

2015-01-01

ABSTRACTThis study aimed to examine the effect of market timing on leverage on non-financial compa-nies in Indonesia. Market timing was tested on the hot and cold market conditions. Hot and cold markets are determined by the monthly market to book ratio. A hot (cold) market occurs when the average market to book ratio of a particular month is above (below) the value of the moving average of the monthly market to book ratio. This study also aimed to test whether non-financial companies in Indo...

Financial sector taxation: Financial activities tax or financial transaction tax?

Directory of Open Access Journals (Sweden)

Danuše Nerudová

2011-01-01

Full Text Available The recent financial crises has revealed the need to improve and ensure the stability of the financial sector to reduce negative externalities, to ensure fair and substantial contribution of the financial sector to the public finances and the need to consolidate public finance. All those needs represent substantial arguments for the discussion about the introduction of financial sector taxation. There are discussed in the paper two possible schemes of financial sector taxation – financial transaction tax and financial activities tax. The aim of the paper is to research the possibility of the introduction of financial sector taxation, to discuss the pros and cons of two major candidates on financial sector taxation – financial transaction tax and financial activities tax and to suggest the possible candidate suitable for the implementation on the EU level. Financial transaction tax represents the tool suitable mainly on global level, for only in that case enables generate sufficient financial resources. From EU point of view is considered as less suitable, for it bears the risk of reallocation. Therefore the introduction of financial activities tax on EU level is considered as a better solution for the financial sector taxation in the EU, for financial sector is exempted from value added tax. With respect to the fact, that the implementation would represent the innovative approach to the financial sector taxation, there are no empirical proves and therefore this could be the subject of further research.

The impact of IFRS on ratios of listed and new listed companies of Athens Exchange

Directory of Open Access Journals (Sweden)

Balios Dimitrios

2013-07-01

Full Text Available In this study we are researching the effect of the implementation of International Financial Reporting Standards (IFRS on financial ratios of listed companies of Athens Exchange (AE. Emphasis is given to the differences between Greek Accounting Standards (GAS and IFRS and their impact on the calculation of financial ratios which are based on financial statements prepared in accordance with the first or the second accounting standard. Therefore, the study was applied to two samples of companies. The first sample includes companies that have been listed in AE for years and the second sample includes companies that have recently been listed in AE. Considering the particular characteristics of each group of companies, we are examining the probability of quantitative differentiations in financial ratios due to the transition from the one accounting standard to the other. The results of the research results showed that both samples of companies, when not influenced by other factors, do not have significant differences in their behavior.

Financial Performance Analysis to Reformulate Business Strategy (Case Study: Bank Syariah Mandiri KCP XYZ)

OpenAIRE

Rachmadiah, Euis; Aliludin, Arson

2013-01-01

The purpose of this research is to analyzing Financial Performance of KCP XYZ of PT Bank Syariah Mandiri in order to reformulate business strategy and its implementation plan. The strategy formulation is conducted with evaluating its current performance as a first stage element. Financial Performance analysis by 4 financial ratios; ROA, BOPO, NCOM, FDR and 4 growth ratios; Growth of Assets, Growth of Depositor Funds, Growth of Financing and Growth of Net Earnings, is chosen to evaluate the po...

A comparative study of financial data sources for critical access hospitals: audited financial statements, the Medicare cost report, and the Internal Revenue Service form 990.

Science.gov (United States)

Ozmeral, Alisha Bhadelia; Reiter, Kristin L; Holmes, George M; Pink, George H

2012-01-01

Medicare cost reports (MCR), Internal Revenue Service form 990s (IRS 990), and audited financial statements (AFS) vary in their content, detail, purpose, timeliness, and certification. The purpose of this study was to compare selected financial data elements and characterize the extent of differences in financial data and ratios across the MCR, IRS 990, and AFS for a sample of nonprofit critical access hospitals (CAHs). Line items from AFS of 47 CAHs were compared to data reported in the hospitals' MCR and IRS 990s. Line items were based on 9 financial indicators commonly used to assess hospital financial performance. Of the indicators examined, the equity financing ratio most frequently matched between the 3 reports, while salaries and benefits to total expenses and debt service coverage were often different. Variances were driven by differences in individual account balances used to construct the ratios. Relative to AFS, cash was frequently lower on the IRS 990 while marketable securities and unrestricted investments were often higher. Other revenue and net income were consistently lower on the MCR and IRS 990, and depreciation was often higher on the MCR. The majority of total assets and fund balance (equity) values matched across the 3 reports, suggesting differences in classification among detailed accounts were more common than variances between the component totals (total assets, total liabilities, and fund balance). Health policy researchers should consider the impact of these variances on study results and consider ways to improve the availability and quality of financial accounting information. © 2012 National Rural Health Association.

Does competition improve financial stability of the banking sector in ASEAN countries? An empirical analysis

Science.gov (United States)

Gee, Chan Sok; Isa, Che Ruhana

2017-01-01

This study examines the influence of competition on the financial stability of the commercial banks of Association of Southeast Asian Nation (ASEAN) over the 1990 to 2014 period. Panzar-Rosse H-statistic, Lerner index and Herfindahl-Hirschman Index (HHI) are used as measures of competition, while Z-score, non-performing loan (NPL) ratio and equity ratio are used as measures of financial stability. Two-step system Generalized Method of Moments (GMM) estimates demonstrate that competition measured by H-statistic is positively related to Z-score and equity ratio, and negatively related to non-performing loan ratio. Conversely, market power measured by Lerner index is negatively related to Z-score and equity ratio and positively related to NPL ratio. These results strongly support the competition-stability view for ASEAN banks. We also capture the non-linear relationship between competition and financial stability by incorporating a quadratic term of competition in our models. The results show that the coefficient of the quadratic term of H-statistic is negative for the Z-score model given a positive coefficient of the linear term in the same model. These results support the non-linear relationship between competition and financial stability of the banking sector. The study contains significant policy implications for improving the financial stability of the commercial banks. PMID:28486548

Bank Liquidity and Financial Performance: Evidence from Moroccan Banking Industry

Directory of Open Access Journals (Sweden)

El Mehdi Ferrouhi

2014-12-01

Full Text Available This paper aims to analyze the relationship between liquidity risk and financial performance of Moroccan banks and to define the determinants of bank’s performance in Morocco during the period 2001–2012. We first evaluate Moroccan banks’ liquidity positions through different liquidity and performance ratios then we apply a panel date regression to identify determinants of Moroccan banks performance. We use 4 bank’s performance ratios, 6 liquidity ratios and we analyze 5 specific determinants and 5 macroeconomic determinants of bank performance. Results show that Moroccan bank’s performance is mainly determined by 7 determinants: liquidity ratio, size of banks, logarithm of the total assets squared, external funding to total liabilities, share of own bank’s capital of the bank’s total assets, foreign direct investments, unemployment rate and the realization of the financial crisis variable. Banks’ performance depends positively on size of banks, on foreign direct investments and on the realization of the financial crisis and negatively on external funding to total liabilities, on share of own bank’s capital of the bank’s total assets and on unemployment rate while the dependence between bank performance and liquidity ratios and bank performance and logarithm of the total assets squared depend on the model used.

Household Financial Distress and Initial Endowments

DEFF Research Database (Denmark)

Olafsson, Arna

2016-01-01

( 4000 g). I also find evidence that the collapse reduced the sex ratio, indicating selection in utero due to maternal prenatal stress exposure. My results imply large welfare losses from financial distress that have hitherto been ignored...

Securing financial independence in the legal basis of a central bank

NARCIS (Netherlands)

F. Amtenbrink (Fabian)

2005-01-01

textabstractTogether with institutional, functional and organizational independence, financial independence constitutes one of the cornerstones of central bank independence, the economic ratio of which has been demonstrated extensively in the literature. In broad terms financial independence may be

Financialization and financial profit

Directory of Open Access Journals (Sweden)

Arturo Guillén

2014-09-01

Full Text Available This article starts from the critical review of the concept of financial capital. I consider it is necessary not to confuse this category with of financialization, which has acquired a certificate of naturalization from the rise of neoliberalism. Although financial monopoly-financial capital is the hegemonic segment of the bourgeoisie in the major capitalist countries, their dominance does not imply, a fortiori, financialization of economic activity, since it depends of the conditions of the process reproduction of capital. The emergence of joint stock companies modified the formation of the average rate of profit. The "promoter profit" becomes one of the main forms of income of monopoly-financial capital. It is postulated that financial profit is a kind of "extraordinary surplus-value" which is appropriated by monopoly-financial capital by means of the monopolistic control it exerts on the issue and circulation of fictitious capital.

Ordered LOGIT Model approach for the determination of financial distress.

Science.gov (United States)

Kinay, B

2010-01-01

Nowadays, as a result of the global competition encountered, numerous companies come up against financial distresses. To predict and take proactive approaches for those problems is quite important. Thus, the prediction of crisis and financial distress is essential in terms of revealing the financial condition of companies. In this study, financial ratios relating to 156 industrial firms that are quoted in the Istanbul Stock Exchange are used and probabilities of financial distress are predicted by means of an ordered logit regression model. By means of Altman's Z Score, the dependent variable is composed by scaling the level of risk. Thus, a model that can compose an early warning system and predict financial distress is proposed.

The Financial Performance of the Greek Football Clubs

Directory of Open Access Journals (Sweden)

Panagiotis Dimitropoulos

2010-01-01

Full Text Available The aim of this paper is to analyze the financial performance of the football clubs participating within the first division of the Greek football league for a period of 14 years (1993-2006 and to propose specific actions that need to be taken by both managers and regulators in order to improve the financial stability of the clubs. We perform financial analysis of key accounting ratios extracted from the football club’s annual financial statements in order to explain the particular causes of the recent financial crisis which characterizes the Greek professional football league. The analysis of the clubs’ annual financial statements revealed that the Greek football clubs are highly leveraged, have intense liquidity and profitability problems and face an increased danger of financial distress, despite the increased amounts that football clubs invested during 2005. The above mentioned crisis can be attributed to aggregate financial mismanagement and political inefficiencies during the last fifteen years. The paper proposes specific actions that need to be taken by both managers and regulators in order to improve the financial stability of the clubs and the overall competitiveness of the Greek football league.

FINANCIAL STABILITY OF ISLAMIC AND CONVENTIONAL BANKS IN BANGLADESH: REVISITING STABILITY MEASURES AND ANALYZING STABILITY BEHAVIOR

Directory of Open Access Journals (Sweden)

Md Enayet Hossain

2018-03-01

Full Text Available This study intends to assess the relative financial stability of Islamic banks in Bangladesh using three different Z-Scores as financial stability measures, based on a sample of 29 listed commercial banks (23 conventional and 6 Islamic in Bangladesh over the period 2005-2016. Apart from the existing measure of financial stability, Z-Score, the paper contributes to the literature by developing an alternative Z-Score based on bank’s loan portfolio infection ratio. We first use pair-wise comparison and find that Islamic banks are financially more stable in two stability measures i.e. Z-Score (based on Capital Adequacy Ratio and Z-Score (based on Infection Ratio. We then perform static (random effects and dynamic (GMM panel data analysis. By controlling for bank-specific, industry-specific and macroeconomic variables in the regressions, we find that Islamic banks are financially more stable in 2 panel regressions of Z-Score (based on Infection Ratio. We also find that the presence of Islamic banks increases the stability of all banks in the system including their conventional peers.

Modeling Financial Liquidity Of Construction Companies Using Error Correction Mechanism

Directory of Open Access Journals (Sweden)

Tomasz Stryjewski

2017-03-01

Full Text Available Financial liquidity is one of the most important economic categories in the functioning of the company. There are many methods of assessment of the company in this field, ranging from ratio analysis, to advanced models of financial flows. In this paper was presented econometric model of financial income, which was used to analyze the liquidity of the three construction companies. This analysis was made on the background of methods indicator.

ANALISIS FINANCIAL LEVERAGE PADA PT. RAJAWALI JAYA SAKTI CONTRINDO DI MAKASSAR.

OpenAIRE

ANWAR, H. MUH.

2013-01-01

2013 H.Muh.ANWAR, A financial leverage analysis at PT.Rajawali Jaya Sakti Contrindo of Makassar (Supervised by HJ.Siti Haerani and Kasman Damang). The problem statement of this research is whether financial leverage can increase company???s profit. The objectives of this research is to find out the calculation of financial leverage applied by company and to analyse the impact of financial leverage toward profit gained by company. The result of the research on leverage ratio of PT.Raja...

The early indicators of financial failure: a study of bankrupt and solvent health systems.

Science.gov (United States)

Coyne, Joseph S; Singh, Sher G

2008-01-01

This article presents a series of pertinent predictors of financial failure based on analysis of solvent and bankrupt health systems to identify which financial measures show the clearest distinction between success and failure. Early warning signals are evident from the longitudinal analysis as early as five years before bankruptcy. The data source includes seven years of annual statements filed with the Securities and Exchange Commission by 13 health systems before they filed bankruptcy. Comparative data were compiled from five solvent health systems for the same seven-year period. Seven financial solvency ratios are included in this study, including four cash liquidity measures, two leverage measures, and one efficiency measure. The results show distinct financial trends between solvent and bankrupt health systems, in particular for the operating-cash-flow-related measures, namely Ratio 1: Operating Cash Flow Percentage Change, from prior to current period; Ratio 2: Operating Cash Flow to Net Revenues; and Ratio 4: Cash Flow to Total Liabilities, indicating sensitivity in the hospital industry to cash flow management. The high dependence on credit from third-party payers is cited as a reason for this; thus, there is a great need for cash to fund operations. Five managerial policy implications are provided to help health system managers avoid financial solvency problems in the future.

Diagnosing companies in financial difficulty based on the auditor’s report

Directory of Open Access Journals (Sweden)

Robert Zenzerović

2016-04-01

Full Text Available The approach used in this paper expands on existing research that focuses on devising prediction models for companies experiencing financial difficulties and which in turn serves as a criteria-based diagnosis tool for distinguishing healthy companies from those facing seriously financial difficulties. It draws on auditors’ reports on company financial statements that emphasize a company’s ability to continue as a going concern as the main criterion used to distinguish companies experiencing financial difficulties from companies that are not. Two closely-related hypotheses were tested in this paper. First, the authors tested the hypothesis that an auditor’s report accompanied by an explanatory paragraph pointing out issues associated with the going concern assumption is the proper criterion for differentiating companies experiencing financial difficulties from those that are not. Second, the central assumption that is tested relates to a combination of financial ratios whereby authors presume that an appropriate combination of financial ratios is a good analytical tool for distinguishing companies experiencing serious financial difficulties from those that are not. Research results conducted among 191 companies listed on the Zagreb Stock Exchange confirm both hypotheses. The LRA model – a diagnosis tool for identifying companies with financial problems, was also derived using logistic regression analysis. The statistical adequacy and quality of the model was tested using measures like Nagelkerke R2, type 1 and type 2 errors that appear when calculating the classification ability of the model. All measures indicated that model was statistically sufficient and validated its use as a diagnosis tool in recognizing the companies facing financial difficulties.

Inflation and Financial Sector Performance: The Case of Nigeria

Directory of Open Access Journals (Sweden)

Alimi R. Santos

2014-06-01

Full Text Available The paper examines the long run and short run relationships between inflation and the financial sector development in Nigeria over the period between 1970 and 2012. Three variables, namely; broad definition of money as ratio of GDP, quasi money as share of GDP and credit to private sector as share of GDP, were used to proxy financial sector development. Our findings suggest that inflation presented deleterious effects on financial development over the study period. The main implication of the results is that poor macroeconomic performance has deleterious effects to financial development - a variable that is important for affecting economic growth and income inequality. Moreover, we observed a negative effect of the measures of financial development on growth, suggesting that impact of inflation on the economic growth passes through financial sector. Therefore, low and stable prices, is a necessary first step to achieving a deeper and more active financial sector that will enhance growth as predicted by Schumpeter.

Causality Relationship Between Stock Liquidity and Financial Performance: An Example of Borsa İstanbul

Directory of Open Access Journals (Sweden)

Şükriye Gül REİS

2014-12-01

Full Text Available The aim of this study is to present the relationship between financial performance and stock liquidity. The relationship has been examined for industry firms which operate in BIST 100 index for the period of 2005Q1-2012Q1. The stock liquidity proxies are Amihud illiquidity ratio and turnover ratio; financial performance proxy is Market Value/Book Value(MV/BV. Dumitrescu and Hurlin causality test is used for determining the relationship. Empirical results show that there is a two-way causality between financial performance and stock liquidity in Borsa Istanbul

Assessing the firm performance through the financial ratios

Directory of Open Access Journals (Sweden)

VASILESCU LAURA

2011-09-01

Full Text Available The main objective of every firm is the creation of value, respectively the investment for which the efficiency resulted is above the profitability ratio required by the shareholders. In this paper are presented the fianancial indicators used for a proper value measuring of the firm’s performance, which are grouped in three categories: accounting, economical and stock exchange. For each group of indicators are presented the weak and strong points and there is underlined the importance of each indicator in order to reflect the value creation.

The Role of Family Control on Financial Performance of Family Business in Gebze

Directory of Open Access Journals (Sweden)

Huriye Sabancı Özer

2012-01-01

Full Text Available This paper analysis the role of family control on financial performance of family business by using the key financial data of family businesses of 16 firm registred to Gebze Chamber of Commerce. In this paper, financial performance of a family business is measured by using Return on Assets, Return on Sales and Total Debt/Total Assets ratios. The family member CEO is more successful as far as ROA ratios concerned, but is less successful as far as TD/TA ratios concerned, in comparison to non family member CEO. In other words, the non family member CEO is more successful as far as TD/TA ratios concerned, but is less successful as far as ROA ratios concerned, in comparison to family member CEO. Additionally, as far as ROS ratios concerned, there is no significant difference between family member CEO and non family member CEO. Overall, the results are consistent with the hypotheses that there is difference between ROA of family member CEO and non family member CEO, and there is difference between TD/TA of family member CEO and non family member CEO.

Report on the Financial Evaluation: McDonald’s Corporation and Yum! Brands

Directory of Open Access Journals (Sweden)

Ayrapetova Tamara

2014-01-01

Full Text Available The aim of this paper is to perform financial analysis by using financial ratios and to comment, evaluate, and understand the origins of the results by using the comparison of two companies chosen as a case study.

Multivariate Statistical Methods as a Tool of Financial Analysis of Farm Business

Czech Academy of Sciences Publication Activity Database

Novák, J.; Sůvová, H.; Vondráček, Jiří

2002-01-01

Roč. 48, č. 1 (2002), s. 9-12 ISSN 0139-570X Institutional research plan: AV0Z1030915 Keywords : financial analysis * financial ratios * multivariate statistical methods * correlation analysis * discriminant analysis * cluster analysis Subject RIV: BB - Applied Statistics, Operational Research

Empirical Analysis of the Impact of Financial Sector Reforms on Savings Mobilization in Nigeria

Directory of Open Access Journals (Sweden)

Enobong Udoh

2017-03-01

Full Text Available This paper examines whether Nigeria witnessed considerable savings mobilization amidst financial sector reforms from 2007 to 2015 using the estimation method of Autoregressive Distributed Lag. Unlike previous papers in this area that mostly focused on interest rates liberalization thesis, this paper goes deeper by looking at financial reforms across money, capital and foreign exchange markets. The estimation results show that there are still structural rigidities in the money, foreign exchange and equity markets nexus. In that, the following variables that proxy financial sector reforms namely treasury bill yield, interest rate spread, market capitalization ratio and currency in circulation ratio (which proxy technological modernization of payment systems all went against a priori expectation. However, financial reforms had one success story in credit/loans advances to private/public sectors (financial deepening which posted its correct economic sign. In sum, except for the financial deepening variable it can be safely concluded that financial reforms in Nigeria is yet to positively impact savings mobilization. The regulatory and reform authorities must show effectiveness in reforms implementation.

EXPLORING LINKS AMONG INVENTORY AND FINANCIAL PERFORMANCE IN THE AGRICULTURAL MACHINERY INDUSTRY

Directory of Open Access Journals (Sweden)

Dimitris Folinas

2014-10-01

Full Text Available The paper aims to investigate the effects of Inventory Turnover and Inventory Days on firm performance in the United Kingdom agricultural machinery industry by examining past literature reviews and empirical evidence of a primary research. Specific performance measures such as Earnings before Interest and Tax to Sales Ratio, Gross Profit to Sales Ratio, and Return on Assets are examined by conducting statistical analyses to determine the correlations between inventory and financial performance in agricultural machinery industry. The analysis of Inventory Turnover with financial performance measures doesn’t indicate any links between these variables. Furthermore, based on the results, Inventory Days plays a role in the financial performance of organisations however to varying degrees.

Pengaruh Sustainability Reporting terhadap Kinerja Keuangan Perusahaan Publik dari Sisi Profitability Ratio

OpenAIRE

Natalia, Ria

2014-01-01

Sustainability report contains the financial performance and non –financial performance . In recent years, has been realized the importance of this disclosure through its impact on financial performance. This study aimed to examine the relationship between indicators of sustainability reporting and the company's profitability ratio. This study used secondary data. The independent variable in this study was the disclosure of Sustainability report that divided into the performances of disclosur...

EDF - 2013 full-year results up, driven by good operating and financial performance; Strengthened financial structure; 2014-2018 vision. Annual results 2013. 2013 Consolidated financial statements. Management report 2013

International Nuclear Information System (INIS)

Proglio, Henri

2014-01-01

As the world's biggest electricity generator, the EDF Group covers every sector of expertise, from generation to trading and transmission grids. EDF builds on the expertise of its people, its R and D and engineering skills, its experience as a leading industry operator and the attentive support of its customers to deliver competitive solutions that successfully reconcile economic growth with climate protection. This document presents the 2013 annual results, management report and Consolidated financial statements of the Group at 31 December 2013: Group EBITDA: euro 16.8 bn, +5.5% in organic growth; Strong growth in low-carbon energies: Hydro and other renewable output in France: +22.5% vs. 2012, Highest hydro output in over 10 years in France, Highest nuclear output in past 8 years in the United Kingdom and stable output in France; Net income - Group share: euro 3,517 m, +7.4%; Net income excluding non-recurring items: euro 4,117 m vs. euro 4,175 m in 2012; Spark: euro 1.3 bn in cost savings at end-December; initial target: euro 1 bn; Net financial debt/EBITDA: 2.1x vs. 2.4x2 at 31 December 2012; Proposed cash dividend for 2013: euro 1.25/share, a pay-out ratio of 56.5%, within the range of 55% to 65% of net income excluding non-recurring items. Financial targets for 2014: Group EBITDA excluding Edison: organic growth of at least 3%; Edison EBITDA: expectation for recurring EBITDA of euro 1 bn and at least euro 600 m in 2014 before effects of gas contract re-negotiations; Net financial debt/EBITDA: between 2x and 2.5x; Pay-out ratio of net income excluding non-recurring items post hybrid: 55% to 65%. 2014-2018 vision: Cash-flow after dividends: positive in 2018. Consolidated financial statements: 1 - Historical financial information: Consolidated income statements, Statements of net income and gains and losses recorded directly in equity, Consolidated balance sheets, Consolidated cash flow statements, Changes in consolidated equity, Notes to the consolidated

THE IMPACT OF ACQUISITION ON FINANCIAL PERFORMANCE OF PT. ABC

OpenAIRE

Novian Zen; Noer Azam Achsani; Trias Andati

2016-01-01

This study aimed to analyze the financial performance of the subsidiary company (PT ABC) before and after acquired by the holding company (PT XYZ). The examined ratios of the financial performance were profitability and capital structure for the period of 2010-2014. This study utilized the t test tool. In the first and second year after the acquisition, the result shows that with the existence of business synergy, there was a change in financial performance although it was insignificant. Furt...

Financial Performance Analysis of BIST Tourism Companies with TOPSIS for 2011-2015 Period

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Mahmut ERDOĞAN

2018-01-01

Full Text Available The main aim of this paper is to investigate of financial performance of 13 tourism firms quoted on BIST with TOPSIS method by exploitation of financial ratios for the 2011-2015 period. Basically, to determine financial power of the tourism firms financial ratios have measured and then general corporate performance scores estimated by TOPSIS method. Algorithm of the TOPSIS method is repeated and ranking orders of firms are calculated for each year. However, companies’ yearly performances are outlined and an average ranking is stated for 6 years. Lastly, tourism corporations have ranked with these scores. The result of this paper shows that financial performance of tourism companies point instability out during the all period. According to the results of analysis Net Turizm, Tekart Turizm, and Marmaris Altinyunus have the best performance in 2011 respectively, but Metemtur has the worst. On the other hand, surprisingly, Metemtur has the best financial efficiency and Martı Otel has the worst performance in 2015. However, Net Turizm and Marmaris Altinyunus have been continuing their financial stability and Metemtur is very volatile company in given term.

Comparative Analysis Of Financial Performance Banking Before And After The Global Economic Crisis In 2008

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Sri Indrastuti S.

2017-11-01

Full Text Available This research was conducted at the Regional Development Bank BPD in Indonesia. This study aims to examine and obtain empirical evidence about the comparative financial performance of regional banks after the global crisis with a view of its financial ratio which includes a ratio ROA CAR COF GMP LDR NIM ROA and ROE. This study further whether there was a significant difference in the time before and after the global economic crisis of 2008.The method used is a saturated or census sampling of the 26 Bank Pembangunan Daerah BPD. This study uses secondary data obtained from financial statement data Regional Development Bank for the period 2006 to 2010. The analytical tool used to determine differences in financial performance before and after the global economic crisis of 2008 was Paired sample T test for normally distributed data. If the data were not normally distributed using the Wilcoxon Signed Rank Test.The results showed that the financial performance of the Bank Pembangunan Daerah BPD in the ratio of ROA CAR COF GMP LDR NIM and ROA before and after the global economic crisis in 2008 there are significant differences. While ROE ratios before and after the global economic crisis of 2008 was not a significant difference.

Usage of Data Mining at Financial Decision Making

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Levent BORAN

2014-06-01

Full Text Available The knowledge age requires controlling every kind of information. Recognition of patterns in data may provide previously unknown and useful information that can provide competitive advantages. If related techniques are applied on financial statements, it is possible to acquire valuable information about companies’ financial situations. It is considered that data mining could be an alternative of common financial analysis techniques such as vertical analysis, horizontal analysis, trend analysis and ratio analysis. Against existing financial analysis methods, data mining provides some advantages, which are ability of manipulation of huge data and competence of obtaining previously unknown information. There exist two major constraints of data mining implementation that are lack of experts on both data mining and related domains and cost of computer software and hardware used.

Financial Literacy, Financial Education, and Economic Outcomes

Science.gov (United States)

Hastings, Justine S.; Madrian, Brigitte C.; Skimmyhorn, William L.

2013-01-01

In this article, we review the literature on financial literacy, financial education, and consumer financial outcomes. We consider how financial literacy is measured in the current literature and examine how well the existing literature addresses whether financial education improves financial literacy or personal financial outcomes. We discuss the…

Effect of Financial Stress and Positive Financial Behaviors on Cost-Related Nonadherence to Health Regimens Among Adults in a Community-Based Setting.

Science.gov (United States)

Patel, Minal R; Kruger, Daniel J; Cupal, Suzanne; Zimmerman, Marc A

2016-04-07

Little is known about the role of positive financial behaviors (behaviors that allow maintenance of financial stability with financial resources) in mitigating cost-related nonadherence (CRN) to health regimens. This study examined the relationships between positive financial behaviors, financial stress, and CRN. Data came from the 2011 Speak to Your Health! Community Survey (n = 1,234). Descriptive statistics were computed to examine financial stress and CRN, by chronic condition and health insurance status. We used multivariate logistic regression models to examine the relationship between positive financial behaviors and financial stress and their interaction on a composite score of CRN, controlling for health insurance status, educational level, age, marital status, number of chronic conditions, and employment status. Thirty percent of the sample engaged in CRN. Participants reported moderate financial stress (mean, 13.85; standard deviation [SD] = 6.97), and moderate positive financial behavior (mean, 8.84; SD = 3.24). Participants with employer-sponsored insurance, Medicaid, Medicare, the Genesee Health Plan, high blood pressure, asthma, and diabetes had the highest proportion of CRN. The relationship between financial stress and CRN was not significantly different between those who reported lower versus higher levels of positive financial behavior (P = .32). Greater financial stress was associated with a greater likelihood of CRN (odds ratio [OR] = 2.49; 95% confidence interval [CI], 2.08-2.99). Higher level of positive financial behavior was associated with a lower likelihood of CRN (OR = 0.80; 95% CI, 0.67-0.94). Financial literacy as a means of promoting positive financial behavior may help reduce CRN. An intervention strategy focused on improving financial literacy may be relevant for high-risk groups who report high levels of financial stress.

ANALYSIS OF INTERCOMMUNICATION OF FINANCIAL RESULTS OF ACTIVITY AND INDEXES OF ESTIMATION OF THE FINANCIAL STATE OF A COMMERCIAL ORGANIZATION

OpenAIRE

Prudnikov A. G.; Zhurova O. I.

2016-01-01

The system of indicators characterizing the financial condition of a commercial organization, the major thing is profitability of its operations as the ratio of profit on sales and revenues, the ratio of profit before tax and the average annual value of total assets, the ratio of net profit and the average value of all assets, net income and average equity. Great practical importance for the efficient management of resources economic entity is marginal analysis, but it requires, in our opinio...

Bankruptcy Prediction Based on the Autonomy Ratio

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Daniel Brîndescu Olariu

2016-11-01

Full Text Available The theory and practice of the financial ratio analysis suggest the existence of a negative correlation between the autonomy ratio and the bankruptcy risk. Previous studies conducted on a sample of companies from Timis County (largest county in Romania confirm this hypothesis and recommend the autonomy ratio as a useful tool for measuring the bankruptcy risk two years in advance. The objective of the current research was to develop a methodology for measuring the bankruptcy risk that would be applicable for the companies from the Timis County (specific methodologies are considered necessary for each region. The target population consisted of all the companies from Timis County with annual sales of over 10,000 lei (aprox. 2,200 Euros. The research was performed over all the target population. The study has thus included 53,252 yearly financial statements from the period 2007 – 2010. The results of the study allow for the setting of benchmarks, as well as the configuration of a methodology of analysis. The proposed methodology cannot predict with perfect accuracy the state of the company, but it allows for a valuation of the risk level to which the company is subjected.

Impact of HMO mergers and acquisitions on financial performance.

Science.gov (United States)

Weech-Maldonado, Robert

2002-01-01

This study examines the effect of health maintenance organization (HMO) mergers and acquisitions on financial performance, as indicated by cash flow returns, profitability ratios, and efficiency indicators. Pooled, cross-sectional files of financial performance data were created for HMO mergers occurring in the period of 1988 to 1994. The study uses a time-series design involving the analysis of pre- and post-acquisition financial performance measured over a period of four years. Change scores for the industry-adjusted financial performance measures were calculated and then evaluated using t-tests. The study showed that HMO mergers had a positive effect on financial performance and efficiency. This effect disappeared, however, after adjusting for HMO industry returns. Potential synergies arising from HMO mergers have been largely illusory. Mergers may have been a result of non-value enhancing motives or management overconfidence.

Dynamics of Financial System: A System Dynamics Approach

OpenAIRE

Girish K. Nair; Lewlyn Lester Raj Rodrigues

2013-01-01

There are several ratios which define the financial health of an organization but the importance of Net cash flow, Gross income, Net income, Pending bills, Receivable bills, Debt, and Book value can never be undermined as they give the exact picture of the financial condition. While there are several approaches to study the dynamics of these variables, system dynamics based modelling and simulation is one of the modern techniques. The paper explores this method to simulate the before mentione...

Financial Condition Analysis In Municipalities: A Case Of Turkey

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Fatma ÖZKUL

2017-07-01

Full Text Available This study included the analysis of prepared comprehensive financial statements with the transitionto accrual-based accounting system from cash-based accounting system in the public institutionsin 2006. In Turkey, there is no specific method developed to the goals of public institutions. GASB 1Reporting Model, which is a model developed in the USA, and is not yet used in Turkey, has been appliedby taking financial statements data of the Istanbul Metropolitan Municipality. The study was carriedout using the institution’s balance sheets and statement of financial performance for 2006-2014.Using ratios developed in the model, the financial condition of institution was measured from fourdifferent aspects: cash solvency, budget solvency, long-term solvency, and service-level solvency, andthe results were analyzed. The purpose of the study is the implementation of financial analysis methodsto have a public sector accounting information system that will achieve a financial structure whichcan measure, evaluate and develop the financial condition of public institutions by decision-makingand that will contribute to the efficient and comprehensible use of the produced information by decision-makers in Turkey.

Business sustainability performance measurement: Eco-ratio analysis

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Collins C. Ngwakwe

2016-12-01

Full Text Available Eco-aware customers and stakeholders are demanding for a measurement that links environmental performance with other business operations. To bridge this seemingly measurement gap, this paper suggests ‘Eco-Ratio Analysis’ and proposes an approach for conducting eco-ratio analysis. It is argued that since accounting ratios function as a tool for evaluating corporate financial viability by management and investors, eco-ratio analysis should be brought to the fore to provide a succinct measurement about the linkage between environmental performance and conventional business performance. It is hoped that this suggestion will usher in a nuance debate and approach in the teaching, research and practice of environmental management and sustainability accounting

Post-crisis financial intermediation

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Ilie MIHAI

2015-09-01

Full Text Available The recent financial crisis that begun in 2007 in the US, which then swept around the world, has left deep scars on the already wrinkled face of the global economy. Some national and regional economies, which had money for expensive makeup, or created money[1], managed to blur or hide the scars left by the crisis, others are still facing difficulties in overcoming the effects of this. The rapacity of banks, their greed and risk ignorance, were the origin of the outbreak of the last major economic and financial crisis but unfortunately those who were responsible or, rather, irresponsible, paid little or nothing at all for the burden of their bad loan portfolio. This cost has been supported by the population, either directly by paying high interest and fees [Mihai I., 2007], or indirectly, through the use of public budgets to cover the losses of banks, most of which had private capital. In this context, we intend to examine the state of financial intermediation in Romania in the post-crisis period, and to primarily follow: (i The structure and evolution of the banking system; (ii Non-government credit situation; (iii The level of savings; (iiii Loan-deposit ratio; (v The degree of financial intermediation and disintegration phenomenon etc., and to articulate some conclusions and suggestions on the matters that have been explored.

Varieties of indebtedness: Financialization and mortgage market institutions in Europe.

Science.gov (United States)

Van Gunten, Tod; Navot, Edo

2018-02-01

During the global housing boom that preceded the 2007-9 financial crisis, household debt increased substantially in many European countries, posing a challenge for literature on financialization and the institutional heterogeneity of mortgage markets. This paper examines recent institutional shifts in European mortgage markets and specifies three analytically distinct models of debt accumulation: inclusion, extension and intensity. While existing research has emphasized inclusion (access to homeownership), we show that financial intensification is an important determinant of cross-national variation in debt. We assess the variation in financial intensity in six European countries (France, Germany, Italy, the Netherlands, Portugal and Spain) using household-level survey data. Our results show that inclusion and expansion explain only part of the cross-national variation in mortgage debt to income ratios. Furthermore, household financial behavior is consistent with the financial intensity model, and variation in the degree of financial intensification explains a substantial portion of the cross-national difference in debt levels. Copyright © 2017 Elsevier Inc. All rights reserved.

Financial integration and financial development in transition economies: What happens during financial crises?

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Igor Masten

2011-12-01

Full Text Available

This paper provides an empirical analysis of the role of financial development and financial integration in the growth dynamics of transition countries. We focus on the role of financial integration in determining the impact of financial development on growth, distinguishing “normal times” from periods of financial crises. In addition to confirming the significant positive effect on growth exerted by financial development and financial integration, our estimates show that a higher degree of financial openness tends to reduce the contractionary effect of financial crises, by cushioning the effect on the domestic supply of credit. Consequently, the high reliance on international capital flows by transition countries does not necessarily increase their financial fragility. This implies that financial protectionism is a self-defeating policy, at least for transition countries.

The Use of Statistical Process Control Tools for Analysing Financial Statements

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Niezgoda Janusz

2017-06-01

Full Text Available This article presents the proposed application of one type of the modified Shewhart control charts in the monitoring of changes in the aggregated level of financial ratios. The control chart x̅ has been used as a basis of analysis. The examined variable from the sample in the mentioned chart is the arithmetic mean. The author proposes to substitute it with a synthetic measure that is determined and based on the selected ratios. As the ratios mentioned above, are expressed in different units and characters, the author applies standardisation. The results of selected comparative analyses have been presented for both bankrupts and non-bankrupts. They indicate the possibility of using control charts as an auxiliary tool in financial analyses.

THE INFLUENCE OF CORPORATE FINANCIAL PERFORMANCE ON SHARE RETURN

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Ghulam Nurul Huda

2015-09-01

Full Text Available This study was conducted to examine the effect of financial performances of Economic Value Added (EVA, Market Value Added (MVA as well as financial ratios (Fixed Asset Turnover, Return on Investment, Debt to Equity Ratio, Price to Book Value, Total Asset Turnover on Stock Return. This study used the data of six representative palm oil companies which were listed in Indonesia Stock Exchange. The analysis models that were used included three multiple regression equations for EVA, MVA and Stock Return. The results indicate that DER significantly influences EVA and PBV, and TATO significantly influences MVA. Return Shares are significantly only affected by EVA. The company's fundamentals, especially EVA, PBV, TATO and DER were used by investors to predict the Stock Return in Indonesia Stock Exchange in 2009–2014 period. This study confirmed the previous studies that these variables are involved on regression model to predict the Stock Return. The results of the analysis of the company's financial performance with EVA and MVA and financial fundamental variables provide a better alternative picture on the achievement of the company so that the benefits in investing in the palm oil business in Indonesia can be maximally managed.Keywords: Indonesia Stock Exchange, investor, market, multiple regression, stock

Financial Village Standing in Indonesian Financial System

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Herry Purnomo

2015-12-01

Full Text Available Financial resources of the village that are sourced from a country or a Regional Finance Financial based Law Number 6 Year 2014 of The Village is the mandate of the law that must be allocated to the village. The interconnectedness of the financial position of the village in the financial system of the country or Region concerned the Financial administrative and territorial relations, and there is no setting directly regarding the finances of the village as part of the financial system of the country or the financial area. In respect of the elements of the crime of corruption deeds against financial irregularities of the village there are still disagreements on the interpretation of the law in trapping the perpetrators of corruption on the village chief that implies not satisfy the principle of legality and legal certainty in the ruling of the matter of financial irregularities. In fact, many of the village chief or Councilor caught the criminal offence of corruption over the use of financial irregularities. This research analyzes How the financial position of the village in the financial system of the country or region, as well as whether the financial resources of the village is derived from the state budget or region budget managed in village budget belongs to the category of village finances and whether tort against the financial management of the village can be categorized as a criminal act corruption. How To Cite: Purnomo, H. (2015. Financial Village Standing in Indonesian Financial System. Rechtsidee, 2(2, 121-140. doi:http://dx.doi.org/10.21070/jihr.v2i2.81

Factor analysis of financial and operational performance measures of non-profit hospitals.

Science.gov (United States)

Das, Dhiman

2009-01-01

To understand the important dimensions of the financial and operational performance of non-profit hospitals. Secondary data for non-profit US hospitals between 1996 and 2004. I use iterative principal factor analysis of hospitals' financial and operational ratios for each year of the study. For factor interpretation, I use oblique rotation. Financial ratios were created using cost report data from HCRIS 2552-96 available from the Centers for Medicaid & Medicare Services (CMS). I identify five factors--capital structure, profitability, activity, liquidity, and an operational factor--that explain most of the variation in the performance of non-profit hospitals. I also find that capital structure is more important than profitability in determining the performance of these hospitals. The importance of capital structure highlights a significant shift in the organization of the non-profit hospitals' finances.

Fundamental ratios and stock market performance : evidence from Turkey

OpenAIRE

Parlak, Deniz

2013-01-01

The fundamental analysis strives to determine the approximate future market value of a firm and an important step in a fundamental analysis is the computation of basic ratios which provide an indication of firms' financial performance in several key areas. The purpose of this study is to investigate the financial performance of Turkish manufacturing companies and the impact of this performance on common stock returns for the three years from 2009 to 2012. The sample consisted of 20 chemical-s...

FINANCIAL INSTABILITY, FINANCIAL DEVELOPMENT AND POVERTY

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Ionescu Cristian

2012-12-01

Full Text Available There is a positive relationship between financial development and economic growth in short-run and long-run. Financial development is beneficial to the reduction of poverty. But the financial instability which accompanies financial development is is costly for the poor and reduces the positive effect of financial development on the reduction of poverty. The paper aims to analyze in detail the relationship and the (direct and indirect effects between these variables, taking into account their economic and social importance. It is also highlighted the correlation between the financial economy and the real economy, emphasizing the impact on social welfare involved by the interaction of the above mentioned variables.

Positioning of equity in financial intermediation cooperatives compared to IFRS on financial instruments

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Francisco Martínez Batista

2017-04-01

Full Text Available This research has not transeccional experimental and design, it focuses on analyzing the equity position of financial intermediation cooperatives (I.F. against the contributions of its partners. Begins with theoretical approaches of international and local accounting standards, the ratio of total invested assets versus liabilities, Heritage and Contributions. The case study analyzed the balance sheet figures, the real differences under the uncertainty of the full standard. The results show 14.8% equity and deterioration of overall indebtedness in the same order. Case Study In the real situation, versus the full standard, and considering the irreducible minimum of Capital Contributions, as decreases in 10.2% Equity and Financial Liabilities increased 10.2%. In conclusion, it is considered solvent use some strategy that the situation of international accounting standards with national converge for the benefit of cooperatives.

Financial Analysis of the World Top IT Companies

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Cristina ROMANCIUC

2010-01-01

Full Text Available Financial crisis has influenced all the economiesaround the world. A similar situation happened during the ITcrash. Some, even, believe the crash of the dot-com bubblecontributed to the actual situation. The rush for financialsuccess led to a whole generation of young adults immersingthemselves in technology. Nevertheless IT has an importantinfluence on nowadays economy this is the reason of thepresent study. Here will be presented one of the world largestcompanies in IT and analyzed using few financial methods(comparative statements, ratio analysis, cash flow analysis.

Financial Literacy and Financial Behaviour

NARCIS (Netherlands)

Sayinzoga, Aussi; Bulte, Erwin H.; Lensink, Robert

2016-01-01

We organise a field experiment with smallholder farmers in Rwanda to measure the impact of financial literacy training on financial knowledge and behaviour. The training increased financial literacy of participants, changed their savings and borrowing behaviour and had a positive effect on the

Predicting financial distress in publicly-traded companies

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Felipe Fontaine Rezende

2017-07-01

Full Text Available ABSTRACT Several models for forecasting bankruptcy have been developed over the years, one of the reasons for which is the important part it plays in decision-making. However, forecasting a company’s bankruptcy leaves a very short time for stakeholders to change the situation. It is in this context that this paper arises in order to develop a model for predicting financial distress, which is identified as a step prior to bankruptcy. The predictive model uses the logistic regression technique with panel data and a sample of Brazilian publicly-traded companies with shares listed on the São Paulo Stock, Commodities, and Futures Exchange between 2001 and 2014. As well as financial variables, the final model includes market expectations (macroeconomic and sector variables. These variables are statistically tested and the hypothesis is confirmed that they improve the accuracy of the model. The research identified the existence of financial distress in 96% of the companies that went bankrupt. In addition, the relationship between the phenomena of bankruptcy and financial distress is verified, using financial and macroeconomic explanatory variables. The results demonstrate that most (83% of the explanatory variables in the model for predicting bankruptcy are also present in the model for predicting the phenomenon of financial distress. The expected gross domestic product variables and the quick ratio, asset turnover, and net equity over total liabilities financial variables are statistically significant in predicting both phenomena. With this evidence, the study suggests the use of the concept of financial distress as a stage prior to bankruptcy and provides a model for predicting financial distress with 89% accuracy when applied to publicly-traded companies in Brazil in the period examined.

THE IMPACT OF ACQUISITION ON FINANCIAL PERFORMANCE OF PT. ABC

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Novian Zen

2016-09-01

Full Text Available This study aimed to analyze the financial performance of the subsidiary company (PT ABC before and after acquired by the holding company (PT XYZ. The examined ratios of the financial performance were profitability and capital structure for the period of 2010-2014. This study utilized the t test tool. In the first and second year after the acquisition, the result shows that with the existence of business synergy, there was a change in financial performance although it was insignificant. Furthermore, in the third year, there was absolutely no change; however, in the fourth year, there was an insignifant change. The implications of this research indicates the motive or objective of the shareholders (K-State-owned Enterprises in assigning the holding company (XYZ to restructure the financial performance and improve capital structure of its subsidiary company (PT ABC by conducting a business synergy has not been reached.Keywords: acquisition, financial performance, improved capital structure, business synergy and financial reports

Complex Analysis of Financial State and Performance of Construction Enterprises

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Algirdas Krivka

2015-12-01

Full Text Available The paper analyses the financial state and performance of large constructions enterprises by applying financial indicators. As there is no one single decisive financial indicator enabling to objectively assess enterprise performance, the multi-criteria decision making (MCDM methods are applied with four groups of financial ratios (profitability, liquidity, solvency and asset turnover acting as evaluation criteria, while the alternatives assessed are two enterprises compared throughout the reference period of three years, also with the average indicator values of the whole construction sector. The weights of the criteria have been estimated by involving competent experts with chi-square test employed to check the degree of agreement of expert estimates. The research methodology contributes to the issue of complex evaluation of enterprise financial state and performance, while the result of the multi-criteria assessment – the ranking of enterprises and sector average with respect to financial state and performance – could be considered worth attention from business owners, potential investors, customers or other possible stakeholders.

FINANCIAL DEPTH AND FINANCIAL ACCESS IN INDONESIA

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Sigit Setiawan

2015-05-01

Full Text Available This study is intended to analyze the current levels of financial depth and financial access in Indonesia and to analyze the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relatively better than its financial depth, especially for financial markets, in which Indonesia ranks in the lower average group. From literature reviews, it can be inferred that the main factor driving the poor financial depth in Indonesia is non-competitiveness of the institutions; whereas the driving force of poor financial access in Indonesia are geographical constraints, poverty, a high income gap, and a less than effective national financial development policy.

Economic Analysis in the System of Financial Planning of Forestry Enterprises

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Ievdokymov Viktor V.

2017-12-01

Full Text Available The aim of the article is to develop organizational and methodological provisions of economic analysis of forestry enterprises’ financial plans as a result of financial planning. The importance of financial planning as a basis for developing managerial decisions regarding the financial potential is substantiated. The characteristic of the development stages and the importance of financial potential in countries of the world is given. The stages of forecasting as the basis of enterprises’ financial plans are considered. The composition of the subsystems, methods and functions of financial planning highlighted in the scientific literature is investigated. The place of economic analysis in financial planning and in the system of financial planning of an enterprise’s economic activity is determined. There identified the directions of information disclosure in a financial plan: formation of financial results, budget settlements, cash flow, capital investments, ratio analysis, financial status, breakdown of individual items. The prospect for further research is to determine the order of applying the analytical procedures for each of these directions of economic analysis to justify the application of the analytical procedures for assessing financial potential on the basis of financial plans of forestry enterprises. This will allow to create information space for managing the financial potential of a forestry enterprise to achieve its tactical and strategic goals.

Financial ties of principal investigators and randomized controlled trial outcomes: cross sectional study.

Science.gov (United States)

Ahn, Rosa; Woodbridge, Alexandra; Abraham, Ann; Saba, Susan; Korenstein, Deborah; Madden, Erin; Boscardin, W John; Keyhani, Salomeh

2017-01-17

 To examine the association between the presence of individual principal investigators' financial ties to the manufacturer of the study drug and the trial's outcomes after accounting for source of research funding.  Cross sectional study of randomized controlled trials (RCTs).  Studies published in "core clinical" journals, as identified by Medline, between 1 January 2013 and 31 December 2013.  Random sample of RCTs focused on drug efficacy.  Association between financial ties of principal investigators and study outcome.  A total of 190 papers describing 195 studies met inclusion criteria. Financial ties between principal investigators and the pharmaceutical industry were present in 132 (67.7%) studies. Of 397 principal investigators, 231 (58%) had financial ties and 166 (42%) did not. Of all principal investigators, 156 (39%) reported advisor/consultancy payments, 81 (20%) reported speakers' fees, 81 (20%) reported unspecified financial ties, 52 (13%) reported honorariums, 52 (13%) reported employee relationships, 52 (13%) reported travel fees, 41 (10%) reported stock ownership, and 20 (5%) reported having a patent related to the study drug. The prevalence of financial ties of principal investigators was 76% (103/136) among positive studies and 49% (29/59) among negative studies. In unadjusted analyses, the presence of a financial tie was associated with a positive study outcome (odds ratio 3.23, 95% confidence interval 1.7 to 6.1). In the primary multivariate analysis, a financial tie was significantly associated with positive RCT outcome after adjustment for the study funding source (odds ratio 3.57 (1.7 to 7.7). The secondary analysis controlled for additional RCT characteristics such as study phase, sample size, country of first authors, specialty, trial registration, study design, type of analysis, comparator, and outcome measure. These characteristics did not appreciably affect the relation between financial ties and study outcomes (odds ratio 3.37, 1

Financial analysis as a financial management instrument

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Stehlíková Beáta

2001-12-01

Full Text Available The financial market is one of the elements of the market-oriented economy. The financial analysis is a fundamental element of the financial controlling business. The purpose of this article is to inform briefly about horizontal and vertical financial statements analysis as the source of competitive advantage of the firm. The article is divided into two parts. First describes financial analysis and financial statements generally. Second, it presents a practical contribution of the horizontal and vertical financial statements analysis at the controlled businesses as financial management tools, which identify the financial position, market behaviour, correlations between the net profit and the prohibitively cost and operating profit, the financial activities profit, the income tax etc.Business, which the analysed firm operates in asks a provable claim on the high value of fixed assets. The capital composition of the firm is call to typify for the state-owned enterprise that was transformed to private joint-stock companies. Analysis is specially pleading for the needs considering the price of the borrowed capital in the capital structure rating. Fault factor ø value talks about needs for the cost regulation. Stair-step conception used for counting of the net profit in the accountant period indicates the financial profit, alternatively loss, as the distinguished pre-tax profit element. Picture about firm’s financial results can be completed with the information about the income tax value. Form of financial analyses presented in the article entablature the accents on the necessity to compare several accounting period and on the necessity of complex understanding of statements accounting slide “en bloc”.Financial analyse makes the decision makers possible to screen potential partners before the cooperation starts. On the other side, it makes a possibility to influence the production process, sales and financial management during the accounting

PROFITABILITY RATIO AS A TOOL FOR BANKRUPTCY PREDICTION

OpenAIRE

Daniel BRÎNDESCU – OLARIU

2016-01-01

The current study evaluates the potential of the profitability ratio in predicting corporate bankruptcy. The research is focused on Romanian companies, with the targeted event being represented by the manifestation of bankruptcy 2 years after the date of the financial statements of reference. All tests were conducted over 2 paired samples of 1176 Romanian companies. The methodology employed in evaluating the potential of the profitability ratio was based on the Area Under the ROC Curve (0.663...

Decision-making, financial risk aversion, and behavioral biases: The role of testosterone and stress.

Science.gov (United States)

Nofsinger, John R; Patterson, Fernando M; Shank, Corey A

2018-05-01

We examine the relation between testosterone, cortisol, and financial decisions in a sample of naïve investors. We find that testosterone level is positively related to excess risk-taking, whereas cortisol level is negatively related to excess risk-taking (correlation coefficient [r]: 0.75 and -0.21, respectively). Additionally, we find support for the dual-hormone hypothesis in a financial context. Specifically, the testosterone-to-cortisol ratio is significantly related to loss aversion. Individuals with a higher ratio are 3.4 times more likely to sell losing stocks (standard error [SE]: 1.63). Furthermore, we find a positive feedback loop between financial success, testosterone, and cortisol. Specifically, financial success is significantly related to higher post-trial testosterone and cortisol by a factor of 0.53 (SE: 0.14). Finally, we find that in a competitive environment, testosterone level increases significantly, leading to greater risk-taking than in noncompetitive environment. Overall, this study underscores the importance of the endocrine system on financial decision-making. The results of this study are relevant to a broad audience, including investors looking to optimize financial performance, industry human resources, market regulators, and researchers. Copyright © 2018 Elsevier B.V. All rights reserved.

Financial satisfaction and financial stressors in marital satisfaction.

Science.gov (United States)

Archuleta, Kristy L; Britt, Sonya L; Tonn, Teresa J; Grable, John E

2011-04-01

Using a sample of 310 married respondents from one U.S. Midwestern state, a test was conducted to examine the association of financial satisfaction and financial stressors in a spouse's decision to stay married to the same person or leave the relationship. The role of demographic and socioeconomic variables, religiosity, psychological constructs, financial satisfaction, and financial stressors as factors influencing marital satisfaction was tested. Financial stressors were measured using a list of financial stressors adapted from the literature. Financial satisfaction was measured with a one-item scale. The Kansas Marital Satisfaction Scale was used as a validation tool to assess whether individuals would marry or not marry again. Religiosity and financial satisfaction were positively associated with marital satisfaction. A negative interaction between financial satisfaction and financial stressors was also noted. Findings suggest that respondents who are financially satisfied tend to be more stable in their marriages.

Capital Regulation, the Cost of Financial Intermediation and Bank Profitability: Evidence from Bangladesh

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Changjun Zheng

2017-04-01

Full Text Available In response to the recent global financial crisis, the regulatory authorities in many countries have imposed stringent capital requirements in the form of the BASEL III Accord to ensure financial stability. On the other hand, bankers have criticized new regulation on the ground that it would enhance the cost of funds for bank borrowers and deteriorate the bank profitability. In this study, we examine the impact of capital requirements on the cost of financial intermediation and bank profitability using a panel dataset of 32 Bangladeshi banks over the period from 2000 to 2015. By employing a dynamic panel generalized method of moments (GMM estimator, we find robust evidence that higher bank regulatory capital ratios reduce the cost of financial intermediation and increase bank profitability. The results hold when we use equity to total assets ratio as an alternative measure of bank capital. We also observe that switching from BASEL I to BASEL II has no measurable impact on the cost of financial intermediation and bank profitability in Bangladesh. In the empirical analysis, we further observe that higher bank management and cost efficiencies are associated with the lower cost of financial intermediation and higher bank profitability. These results have important implications for bank regulators, academicians, and bankers.

The Economic Efficiency of Financial Markets

Science.gov (United States)

Wang, Yougui

In this paper, we investigate the economic efficiency of markets and specify its applicability to financial markets. The statistical expressions of supply and demand of a market are formulated in terms of willingness prices. By introducing probability of realized exchange, we also formulate the realized market surplus. It can be proved that only when the market is in equilibrium the realized surplus can reach its maximum value. The market efficiency can be measured by the ratio of realized surplus to its maximum value. For a financial market, the market participants are composed of two groups: producers and speculators. The former brings the surplus into the market and the latter provides liquidity to make them realized.

Determining Relevant Financial Statement Ratios in Department of Defense Service Component General Fund Financial Statements

Science.gov (United States)

2014-06-01

transfers, donations, forfeitures, rescissions, etc.) less the net cost of operations. Figure 18 offers a visualization of this simplification. In this...cost of goods sold (Gates, 1927). If the ratio value is low, it may be an indication that the corporation is paying too much for merchandise or cost...corporation is making a large profit on the merchandise where sales revenue exceeds cost of goods sold by a larger margin. For the modification of this

Linkages between financial development, financial instability, financial liberalisation and economic growth in Africa

OpenAIRE

Enowbi Batuo, M.; Mlambo, Kupukile; Asongu, Simplice

2017-01-01

In the aftermath of the 2008 global financial crisis, the implications of financial liberalisation for stability and economic growth has come under increased scrutiny. One strand of literature posits a positive relationship between financial liberalisation and economic growth and development. However, others emphasise the link between financial liberalisation is intrinsically associated with financial instability which may be harmful to economic growth and development. This study assesses ...

INFORMATION SYSTEM FOR MODELING ECONOMIC AND FINANCIAL PERFORMANCES

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Boldeanu Dana Maria

2009-05-01

Full Text Available The analysis of the most important financial and economic indicators at the level of some organizations from the same sector of activity, the selection of performance ratios and generating a particular analysis model help companies to move from the desire

Finanční analýza účetní jednotky ABC/Financial Analysis of Company ABC

OpenAIRE

Kaprálová, Aneta

2009-01-01

This thesis is focused on financial analysis of company ABC that works in rubber industry. First part is aimed at theoretical interpretation of financial analysis, its goals, history, users and sources. Attention is paid to sources of information especially financial statements. Further basic methods are defined, which financial analysis uses. Ratios are described in this thesis above all. At the close there is practical display of financial analysis based on data from financial statements of...

Financial Literacy and Financial Planning in France

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Luc Arrondel

2013-07-01

Full Text Available We study financial literacy in France using the PATER survey and following the Lusardi and Mitchell (2011c approach. We find that some subpopulations are less financially literate than others: women, young and old people as well as less-educated people are more likely to face difficulties when dealing with fundamental financial concepts such as risk diversification and inflation and interest compounding. We also find some differences in financial knowledge depending on the political opinion of the respondents. Finally we show that these differences in financial knowledge are correlated with differences in the propensity to plan: people who score higher on the financial literacy questions are more likely to be engaged in the preparation of a clearly defined financial plan.

Corporate Investments in Asian Emerging Markets: Financial Conditions, Financial Development, and Financial Constraints

OpenAIRE

Wang, Jianxin; Gochoco-Bautista, Maria Socorro; Sotocinal, Noli

2013-01-01

Motivated by the literature on the finance–growth nexus, this paper explores the mechanisms through which finance affects corporate investments and capital accumulation. We separate the effects of financial conditions from those of financial development. Based on a sample of firms from five Asian emerging economies, we find that (1) financial conditions and financial development affect corporate investments through different channels. Financial conditions affect firms' growth opportunities an...

Pengaruh Likuiditas, Profitabilitas, Leverage, dan Market Ratio terhadap Dividend Payout Ratio pada Perusahaan Manufaktur

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Erna Puspita

2017-04-01

Full Text Available Dividend policy is concerned with financial policies regarding what amount cash dividend paid to shareholders and re-invested as retained earnings. The recent research aimed to test empirically various factors is considered to affect dividend policy. The independent variables in his research included Current Ratio (CR, Return on Equity (ROE, Debt to Equity Ratio (DER, and Earning Per Share (EPS. Meanwhile, the dependent variable was Dividend Payout Ratio (DPR. Quantitative research was used as the research design and the data was secondary data. Furthermore, purposive sampling was selected to get the sample. The result was 14 companies that pay dividend continuously during this research conducted on 2012 - 2014 were selected as the sample of this research. Multiple linier regression was used to analyze the data. The results showed that ROE and EPS has a contribution to the DPR, and then CR and DER has no contribution to the DPR.

Understanding Financial Statements. Financial Matters. Board Basics.

Science.gov (United States)

McCarthy, John H.; Turner, Robert M.

1998-01-01

This booklet for trustees of higher education institutions offers guidelines to help trustees understand the institution's financial statements. Individual sections describe the three major financial statements and cover topics such as: (1) standards of the Financial Accounting Standards Board; (2) the "statement of financial position,"…

Does financial literacy improve financial inclusion? Cross country evidence

OpenAIRE

Grohmann, Antonia; Klühs, Theres; Menkhoff, Lukas

2017-01-01

While financial inclusion is typically addressed by improving the financial infrastructure we show that financial literacy, representing the demand-side of financial markets, also has a beneficial effect. We study this effect at the cross-country level, which allows to consider institutional variation. Regarding "access to finance", financial infrastructure and financial literacy are mainly substitutes. However, regarding the "use of financial services", the effect of higher financial literac...

DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH

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Girish K Nair

2013-01-01

Full Text Available There are several ratios which define the financial health of an organization but the importance of Net cash flow, Gross income, Net income, Pending bills, Receivable bills, Debt, and Book value can never be undermined as they give the exact picture of the financial condition. While there are several approaches to study the dynamics of these variables, system dynamics based modelling and simulation is one of the modern techniques. The paper explores this method to simulate the before mentioned parameters during production capacity expansion in an electronic industry. Debt and Book value have shown a non-linear pattern of variation which is discussed. The model can be used by the financial experts as a decision support tool in arriving at conclusions in connection to the expansion plans of the organization.

Do Merger And Acquisition Affect On Company’s Financial Performance?

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Novia Dian Larasati

2018-02-01

Full Text Available This research aims to determine whether there are differences in the company's financial performance before and after merger and acquisition are conducted. The design of this researchis quantitative research. This research was conducted on the listing company in the Indonesian Stock Exchange 2010-2014. The data source was obtained from secondary data; the data obtained from the financial conditionments. The total final samples used were 24 companies by usingpurposive sampling method. The data used were analyzed using the Wilcoxon Signed Ranked Test. The results of this research indicate that current ratio (CR,debt to equity ratio (DER,net profit margin(NPM,price earnings ratio (PER, total asset turnover (TATO had no significant difference on the company before and after merger and acquisitionon the listing company in the Indonesian Stock Exchange (merger and acquisitionof 2010-2014.

[Analysis of financial statements of Japanese private hospitals (1982-1991)].

Science.gov (United States)

Matsuda, S; Murata, H

1996-06-01

In order to clarify the financial situation of Japanese private hospitals, the financial statements provided by the Social Welfare and Medical Service Corporation were analyzed for the period from 1982 to 1991. The results clarified the low growth rate and low profitability of the Japanese private hospitals, although their financial situation was relatively stable. However, the efficiency of cost has been stalled in recent years and profitability has been declining due to the low turnover rate of capital. According to the CVP analysis, the Profit volume ratio of the investigated hospitals has been increased to the level of 95%. This situation means that, in the current financial situation, more than half of the Japanese private hospitals will go into the red if revenue declines 5% due to some short term change in the managerial environment.

Financial Performance Analysis of Selected Commercial Banks in ...

African Journals Online (AJOL)

user

Correspondance ..... According to BPP (2012) there are limitations of financial ratios analysis such as: .... Finally, in 2012, Nib was the leader in efficiency at RoA of 4.7%. This shows ..... strategies should be put in place to continue its growth in its earnings.

Quality of Financial Policies and Financial System Stress

OpenAIRE

Udaibir S Das; Plamen Yossifov; Richard Podpiera; Dmitriy L Rozhkov

2005-01-01

In this paper, we develop multi-country indices of financial system stress and quality of financial policies and use them in regression analysis of the determinants of financial stress. We find that countries with higher quality of financial policies are better able to contain the effects of macroeconomic pressures on the overall level of stress in the financial system. They are also in a better position to ensure sustainable development of the financial system.

Why Financial Advice Cannot Substitute for Financial Literacy?

OpenAIRE

M. Debbich

2015-01-01

This paper examines the ability of financial advice provided by sellers of financial services to substitute for financial literacy of customers. I set up a simple theoretical model in which an informed financial advisor communicates with a less informed customer of financial services. Given the existence of a conflict of interest from the advisor's perspective, the model predicts that only well financially sophisticated customers receive relevant information from the advisor. This fact tends ...

Financial Statement Analysis in Municipalities and an Application

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Ali Kablan

2013-07-01

Full Text Available Municipalities are compelled to use their resources in a mostefficient manner in order to meet increased demand for services. The regular collection of revenues in municipalities, whilemaking expenditures in  most efficientways depend on the healthy functioning of the budget and accounting and thefinancial control system correspondingly. In is necessary for municipalities tocontinuously control the balance of incomes and expenses, determining andeliminating the negativities in this balance. For this purpose, financialanalyses and management ratios are needed. With the financial analyses made, afinancial control system may be established in a municipality and used formanagement purposes. The importance of this study is that if the organizationsand enterprises belonging to the public can apply the analysis techniques asprofoundly as the private sector organizations and enterprises, thosemunicipalities which continuously produce information through financial controlcan take corrective actions in line with such information, and by determiningout of which items the increases and decreases in revenues and expenses arisethey will take actions in order to decrease expenses and to increase revenues.In addition, it will be possible to apply financial carnets (ration cards topublic organizations and enterprises. For this purpose, sorts of financialanalyses are mentioned in the study, and an application is included in themunicipality of Beylikdüzü for analyzing financial tables in publicorganizations and enterprises which are obtained as a result of accrualsaccounting. In the application, the Balance Sheet and Table of the OperatingResults for the year 2012 are subjected to comparative statements, and topercentage and ratio analyses; and then the results are interpreted

The Effects Of Global Economic Crisis of 2008 to Financial Statements and Liquidity Ratios Which Companies are Settled In BIST Energy Sector (2005-2013 Term Review

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Selcuk Kendirli

2017-03-01

Full Text Available Abstract. Aim of this study is to compare and analyze whether the 2008 global economic crisis affected the balance of the energy companies which are listed in the İstanbul Stock Exchange and have shown continuity in 2005-2013 period by using a variety of analyzing methods. Companies that demonstrate continuity between the years 2005-2013 were not assessed in this study. Horizontal and vertical analyses were made on the financial statements of the companies which are evaluated and liquidity ratios were assessed. As a result of the analysis the companies have been found to be affected to different degrees by the crisis.

PROFITABILITY RATIO AS A TOOL FOR BANKRUPTCY PREDICTION

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Daniel BRÎNDESCU – OLARIU

2016-07-01

Full Text Available The current study evaluates the potential of the profitability ratio in predicting corporate bankruptcy. The research is focused on Romanian companies, with the targeted event being represented by the manifestation of bankruptcy 2 years after the date of the financial statements of reference. All tests were conducted over 2 paired samples of 1176 Romanian companies. The methodology employed in evaluating the potential of the profitability ratio was based on the Area Under the ROC Curve (0.663 and the general accuracy ensured by the ratio (62.6% out-of-sample accuracy. The results confirm the practical utility of the profitability ratio in the prediction of bankruptcy and thus validate the need for further research focused on developing a methodology of analysis.

Financial System of Malaysia: the Concept of Financial Dispute

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Evgenia E. Frolova

2017-01-01

Full Text Available Purpose: the article examines the main problems associated the new regulatory acts of Malaysia – the Financial Services Act of 2013 and the Islamic Financial Services Act of 2013; The characteristics of the legal status of the "Ombudsman for financial services" are listed, types of financial disputes subject to settlement under the "financial ombudsman scheme" are listed, parties to the financial dispute are identified. To achieve this goal, the article must solve the following tasks: to determine whether there are institutions in Malaysia that provide services for resolving financial disputes; to investigate the main problems associated with the definition of the concept and types of financial dispute, the conditions for the transfer of a financial dispute to the competent authority. Methods: this article is based on an interdisciplinary concept of research, which allowed to distinguish the distinctive features of the legal regulation of the settlement of financial disputes in Malaysia. Results: according to the provisions of the new laws of Malaysia, namely the Financial Services Act of 2013 and the Islamic Financial Services Act of 2013, a financial dispute should be understood as a dispute, to which the parties are a financial consumer and a financial service provider provider. Financial disputes include disputes in the field of insurance and Islamic insurance, as well as disputes over bank cards, bank accounts, ATMs, Internet banking, mobile banking, and others. The main body for the settlement of financial disputes is the Financial Ombudsman. The competence of the financial ombudsman is limited by the amount of the claim of 250,000 ringgit (about 4.5 million rubles, under insurance claims – 10,000 ringgit, in the field of unauthorized transactions – 25,000 ringgit. The procedure for resolving a financial dispute, which in Malaysia is referred to as the "scheme of a financial ombudsman", is established by the Central Bank of Malaysia

Reduced employment and financial hardship among middle-aged individuals with colorectal cancer.

Science.gov (United States)

Gordon, Louisa G; Beesley, Vanessa L; Mihala, Gabor; Koczwara, Bogda; Lynch, Brigid M

2017-09-01

Financial hardship may affect up to 30% of cancer survivors, however, little research has addressed the effect of employment change on financial hardship. This study compared the self-reported financial hardship of middle-aged (45-64 years) colorectal cancer survivors (n = 187) at 6 and 12 months following diagnosis with that of a matched general population group (n = 355). Colorectal cancer survivors were recruited through the Queensland Cancer Registry, Australia; data from the Household Income and Labour Dynamics in Australia (HILDA) Survey were used for the general population group. Pearson chi-square tests were used to assess the differences in proportions between the two groups and McNemar tests to assess differences across time among the same group. Generalised linear modelling was performed to produce prevalence ratios. A higher proportion of workers with colorectal cancer reported financial strain (money shortage for living essentials) at 6 months (15%) but eased and was comparable to the comparison group at 12 months (7%). Middle-aged working cancer survivors who ceased or reduced work were more likely to report not being financially comfortable, compared with those who had continued work (adjusted prevalence ratio 1.66, 95%CI: 1.12, 2.44) at 12 months. Health professionals, employers and government services should address the impact of impaired employment on financial hardship among cancer survivors. © 2017 John Wiley & Sons Ltd.

The Determinants of Research and Development Investment in the Pharmaceutical Industry: Focus on Financial Structures

Science.gov (United States)

Lee, Munjae; Choi, Mankyu

2015-01-01

Objectives This study analyzes the influence of the financial structure of pharmaceutical companies on R&D investment to create a next-generation profit source or develop relatively cost-effective drugs to maximize enterprise value. Methods The period of the empirical analysis is from 2000 to 2012. Financial statements and comments in general and internal transactions were extracted from TS-2000 of the Korea Listed Company Association (KLCA), and data related to stock price is extracted from KISVALUE-Ⅲ of NICE Information Service Co., Ltd. Stata 12.0 was used as the statistical package for panel analysis. Results The current ratio had a positive influence on R&D investment, the debt ratio had a negative influence on R&D investment, and return on investment and net sales growth rate did not have a significant influence on R&D investment. Conclusion It was found in this study that the higher liquidity ratio, the greater the R&D investment. The stability of pharmaceutical companies has a negative influence on R&D investment. This finding is consistent with the prediction that if a company faces a financial risk, it will be passive in R&D investment due to its financial difficulties. PMID:26730355

The Determinants of Research and Development Investment in the Pharmaceutical Industry: Focus on Financial Structures.

Science.gov (United States)

Lee, Munjae; Choi, Mankyu

2015-10-01

This study analyzes the influence of the financial structure of pharmaceutical companies on R&D investment to create a next-generation profit source or develop relatively cost-effective drugs to maximize enterprise value. The period of the empirical analysis is from 2000 to 2012. Financial statements and comments in general and internal transactions were extracted from TS-2000 of the Korea Listed Company Association (KLCA), and data related to stock price is extracted from KISVALUE-Ⅲ of NICE Information Service Co., Ltd. Stata 12.0 was used as the statistical package for panel analysis. The current ratio had a positive influence on R&D investment, the debt ratio had a negative influence on R&D investment, and return on investment and net sales growth rate did not have a significant influence on R&D investment. It was found in this study that the higher liquidity ratio, the greater the R&D investment. The stability of pharmaceutical companies has a negative influence on R&D investment. This finding is consistent with the prediction that if a company faces a financial risk, it will be passive in R&D investment due to its financial difficulties.

The Usefulness of Financial Statements in Making Financial Diagnosis

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Mitica Pepi

2016-01-01

Full Text Available Our research aims to develop an analysis of the usefulness of financial statements and financial investment in making the diagnosis. Financial analysis is by definition an activity that performance condition is diagnosed entity of the financial year. Financial analysis shall be determined by strengths and weaknesses of financial management based on which will underpin future strategy of the entity to maintain and develop it into a competitive environment. Results of financial analysis depends on the quality, accuracy, relevance and effectiveness of economic information collected and processed. The primary sources of information for financial analysis are the financial statements, which are considered as raw material in the analysis.

Does financial hardship account for elevated psychological distress in lone mothers?

Science.gov (United States)

Hope, S; Power, C; Rodgers, B

1999-12-01

Lone mothers have been shown to have higher levels of psychological distress than married mothers, but it is not clear how this difference arises. Using data from the 1958 British birth cohort followed to age 33, we investigated alternative explanations for the excess distress of lone mothers. Logistic regression models were used to estimate odds ratios for distress (measured using the Malaise Inventory) in lone vs married mothers. Odds ratios were adjusted to assess the contribution of explanatory factors. At age 33, psychological distress was greater among lone than married mothers (OR 2.59, 95% CI 1.97, 3.41). The odds ratio decreased to 1.43 (95% CI 1.02, 2.01) after adjustment for all explanatory factors (prior psychological distress, age of youngest child and number of children in the household, and contemporary measures of financial hardship, employment, and social support). Attenuation of the odds ratio was most marked after taking account of financial hardship. Psychological distress was greater among divorced mothers than never married mothers, though not significantly (OR = 1.70, 95% CI 0.88, 3.28). This difference was not explained by the factors examined, and was not due to the immediate distress associated with a recent divorce. Elevated psychological distress of lone mothers appears to be related to financial hardship, while other explanations, including social support and selection, have a more modest impact. Not all of the elevated psychological distress among lone mothers was accounted for, particularly among divorced lone mothers.

Does financial education impact financial literacy and financial behavior, and if so, when?

OpenAIRE

Kaiser, Tim; Menkhoff, Lukas

2017-01-01

A meta-analysis of 126 impact evaluation studies finds that financial education significantly impacts financial behavior and, to an even larger extent, financial literacy. These results also hold for the subsample of randomized experiments (RCTs). However, intervention impacts are highly heterogeneous: financial education is less effective for low-income clients as well as in low- and lowe...

Investigating Gender Differences under Time Pressure in Financial Risk Taking.

Science.gov (United States)

Xie, Zhixin; Page, Lionel; Hardy, Ben

2017-01-01

There is a significant gender imbalance on financial trading floors. This motivated us to investigate gender differences in financial risk taking under pressure. We used a well-established approach from behavior economics to analyze a series of risky monetary choices by male and female participants with and without time pressure. We also used second to fourth digit ratio (2D:4D) and face width-to-height ratio (fWHR) as correlates of pre-natal exposure to testosterone. We constructed a structural model and estimated the participants' risk attitudes and probability perceptions via maximum likelihood estimation under both expected utility (EU) and rank-dependent utility (RDU) models. In line with existing research, we found that male participants are less risk averse and that the gender gap in risk attitudes increases under moderate time pressure. We found that female participants with lower 2D:4D ratios and higher fWHR are less risk averse in RDU estimates. Males with lower 2D:4D ratios were less risk averse in EU estimations, but more risk averse using RDU estimates. We also observe that men whose ratios indicate a greater prenatal exposure to testosterone exhibit a greater optimism and overestimation of small probabilities of success.

Measuring financial performance: an overview of financial statements.

Science.gov (United States)

Dalsted, N L

1995-07-01

Financial management has emerged as a critical component in the long-term viability of today's ranches and farms. Proper and timely financial reporting and analysis of financial statements are valuable tools that agricultural producers can use to monitor, coordinate, and plan their operational production and marketing schemes and strategies. A side note to preparation of financial statements. With the concerns over lender liability issues associated with statements either assisted with or prepared by a lending officer, agricultural producers will be responsible for preparing their own statements. The lending institutions may prepare their own statements in their assessment of the financial condition of a business and or individual, but, ultimately, the responsibility of financial statements is the borrower's. Some of the material presented in this article provides important input for use in such analytical programs as the National Cattlemen's Association, Integrated Resource Committees, and Standard Performance Analysis (SPA). SPA techniques and associated software have been or currently are under development for cow-calf, stocker, seedstock, and sheep enterprises. Critical to the analysis is having complete and correct financial statements. These analytical programs build on the financial statements. These analytical programs build on the financial statements as recommended by the FFSTF. Proper financial reporting is critical not only to a SPA assessment but also to the overall financial management of today's farms and ranches. Recognizing the importance of financial management in production agriculture is not enough, taking a proactive stance in one's financial plan is paramount to success. Failure to do so will only enhance the exit rates of producers from production agriculture.

Financial Stress Indices and Financial Crises

NARCIS (Netherlands)

Vermeulen, Robert; Hoeberichts, Marco; Vasicek, Borek; Zigraiova, Diana; Smidkova, Katerina; de Haan, Jakob

This paper develops a Financial Stress Index (FSI) for 28 OECD countries and examines its relationship to crises using a novel database for financial crises. A stress index measures the current state of stress in the financial system and summarizes it in a single statistic. Our results suggest that

THE CORRELATION BETWEEN THE AUTONOMY RATIO AND THE RETURN ON EQUITY

OpenAIRE

Daniel BRÎNDESCU – OLARIU

2014-01-01

Previous studies conducted over companies from the Timis County indicate a negative correlation between the autonomy ratio and the bankruptcy risk. At the same time, high values of the autonomy ratio could have a negative effect on the return on equity. The current study aims to evaluate the relationship between the autonomy ratio and the return on equity. The target population included all the companies from the Timis County that have submitted financial statements to the fiscal authoriti...

Financial Analysis of the Financial Institutions Sector in Kosovo

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Vlora Prenaj

2015-12-01

Full Text Available Paper work “Financial analysis of the financial institutions sector in Kosovo” treats financial sector in Kosovo. Paper work contains the current position of the economy, economic prospects and macroeconomic projections for the financial sector in Kosovo, future potential and possibilities of financial sector in Kosovo. The main goal of this research is financial analysis of Kosovo financial institutions sector - overview of key indicators. This research evaluates the performances of commercial bank’s profitability, which have operated in the market during the period 2006-2012. This research is conducted through financial analysis coefficients: Return on Equity, Return on assets and Cost to Income. Test t-Student is used to analyze the profitability for the period 2006/2007 before the financial crisis and the period 2011/2012 after financial crisis.

Financial Hardship and Patient-Reported Outcomes after Hematopoietic Cell Transplantation.

Science.gov (United States)

Abel, Gregory A; Albelda, Randy; Khera, Nandita; Hahn, Theresa; Salas Coronado, Diana Y; Odejide, Oreofe O; Bona, Kira; Tucker-Seeley, Reginald; Soiffer, Robert

2016-08-01

Although hematopoietic cell transplantation (HCT) is the only curative therapy for many advanced hematologic cancers, little is known about the financial hardship experienced by HCT patients nor the association of hardship with patient-reported outcomes. We mailed a 43-item survey to adult patients approximately 180 days after their first autologous or allogeneic HCT at 3 high-volume centers. We assessed decreases in household income; difficulty with HCT-related costs, such as need to relocate or travel; and 2 types of hardship: hardship_1 (reporting 1 or 2 of the following: dissatisfaction with present finances, difficulty meeting monthly bill payments, or not having enough money at the end of the month) and "hardship_2" (reporting all 3). Patient-reported stress was measured with the Perceived Stress Scale-4, and 7-point scales were provided for perceptions of overall quality of life (QOL) and health. In total, 325 of 499 surveys (65.1%) were received. The median days since HCT was 173; 47% underwent an allogeneic HCT, 60% were male, 51% were > 60 years old, and 92% were white. Overall, 46% reported income decline after HCT, 56% reported hardship_1, and 15% reported hardship_2. In multivariable models controlling for income, those reporting difficulty paying for HCT-related costs were more likely to report financial hardship (odds ratio, 6.9; 95% confidence interval, 3.8 to 12.3). Hardship_1 was associated with QOL below the median (odds ratio, 2.9; 95% confidence interval, 1.7 to 4.9), health status below the median (odds ratio, 2.2; 95% confidence interval, 1.3 to 3.6), and stress above the median (odds ratio, 2.1; 95% confidence interval, 1.3 to 3.5). In this sizable cohort of HCT patients, financial hardship was prevalent and associated with worse QOL and higher levels of perceived stress. Interventions to address patient financial hardship-especially those that ameliorate HCT-specific costs-are likely to improve patient-reported outcomes. Copyright © 2016

The Non-Linear Effect of Chinese Financial Developments on Energy Supply Structures

Directory of Open Access Journals (Sweden)

Jian Chai

2016-10-01

Full Text Available Currently, oversupply coal and coal-based power in China poses a great challenge to energy structure optimization and emissions reduction. The energy industry, however, is closely linked to the financial sector. In view of this, using a non-linear Panel Smooth Transition Regression (PSTR model, this paper examines the threshold effects of financial developments on energy supply structures for 17 energy supply provinces in China observed over 2000–2014. The main results are: (1 The ratio of coal supply (LCSR specification is seen to be a four-regime PSTR model with added value in the financial industry/GDP (LFIR as the threshold variable. The LFIR and LCSR show a positive correlation, and the elastic coefficients change between 0.02 and ~0.085; the impact of financial institutions’ loan balance/GDP (LLAN on LCSR takes on an inverse U-shaped curve: first positive, then negative, and again positive with the financial crisis in 2008 as the turning point; (2 The ratio of thermal power generation (LTPG specification is seen to be a two-regime PSTR model with investment in the coal industry/GDP (LCIR as the threshold variable. Results show that LFIR has a negative effect on LTPG, and the coefficients in the low regime tend to be 0.344%, then gradually decrease to 0.051% in the high regime. The influence of LLAN on the LTPG is positive before and negative after the financial crisis. The influence of the foreign direct investment GDP proportion (LFDI, the degree of financial openness on the LCSR and LTPG both remain negative. Therefore, in the process of formulating energy conservation policies and adjusting energy-intensive industrial structures, the government should fully consider the effect of financial developments.

The Impact of Debt Policy on Financial Performance of Romanian Listed Companies

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Nicoleta BARBUTA-MISU

2014-08-01

Full Text Available The purpose of this paper is to study the impact of listed companies’ indebtedness on their financial performance. Theoretical research was relied on the specialty literature concerning the analysis of the capital structure and financial structure of the company based on calculation of the financial structure ratio and financial leverage. This paper focuses on the analysis of debt policy impact on companies’ financial performance using the financial leverage method. The financial leverage method reflects the influence of debt policy on company’s return on equity, as well as the ways it engages loans to finance operating assets so it can get higher return on equity. The main aim of this paper is to investigate and analyze the determinants of leverage effect and financial structure of companies that are operating in Romanian food industry, namely manufacturing of dairy products. The conclusion that emerges in this study is the importance of choosing and establishing funding sources by an enterprise, according to funding costs, in order to obtain the optimal combination between external financing resources and internal funding.

A note on trader Sharpe Ratios.

Science.gov (United States)

Coates, John M; Page, Lionel

2009-11-25

Traders in the financial world are assessed by the amount of money they make and, increasingly, by the amount of money they make per unit of risk taken, a measure known as the Sharpe Ratio. Little is known about the average Sharpe Ratio among traders, but the Efficient Market Hypothesis suggests that traders, like asset managers, should not outperform the broad market. Here we report the findings of a study conducted in the City of London which shows that a population of experienced traders attain Sharpe Ratios significantly higher than the broad market. To explain this anomaly we examine a surrogate marker of prenatal androgen exposure, the second-to-fourth finger length ratio (2D:4D), which has previously been identified as predicting a trader's long term profitability. We find that it predicts the amount of risk taken by traders but not their Sharpe Ratios. We do, however, find that the traders' Sharpe Ratios increase markedly with the number of years they have traded, a result suggesting that learning plays a role in increasing the returns of traders. Our findings present anomalous data for the Efficient Markets Hypothesis.

A note on trader Sharpe Ratios.

Directory of Open Access Journals (Sweden)

John M Coates

Full Text Available Traders in the financial world are assessed by the amount of money they make and, increasingly, by the amount of money they make per unit of risk taken, a measure known as the Sharpe Ratio. Little is known about the average Sharpe Ratio among traders, but the Efficient Market Hypothesis suggests that traders, like asset managers, should not outperform the broad market. Here we report the findings of a study conducted in the City of London which shows that a population of experienced traders attain Sharpe Ratios significantly higher than the broad market. To explain this anomaly we examine a surrogate marker of prenatal androgen exposure, the second-to-fourth finger length ratio (2D:4D, which has previously been identified as predicting a trader's long term profitability. We find that it predicts the amount of risk taken by traders but not their Sharpe Ratios. We do, however, find that the traders' Sharpe Ratios increase markedly with the number of years they have traded, a result suggesting that learning plays a role in increasing the returns of traders. Our findings present anomalous data for the Efficient Markets Hypothesis.

Analysis of Dividend Policy of the Romanian Financial Investment Companies

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Nicoleta BARBUTA-MISU

2013-12-01

Full Text Available The purpose of dividend policy, promoted by a joint-stock company may be: building trust and forming a true business ownership, business growth, increase creditworthiness of the company and of trust others to it. The paper aim is to study the dividend policy to those five Romanian Financial Investment Companies in the period 2006-2012, through a series of specific indicators such as: dividend per share, dividend growth rate, dividend distribution rate, dividend yield, earnings per share, price earnings ratio, in order to reflect the performance and the impact of financial crisis on their performance on the financial market. Tracking the dynamics of these indicators allows us to draw conclusions on the position of the companies on the securities market, and their level influences the decision of shareholders to maintain or withdraw of shares, to invest in other more profitable businesses. Dividend yields made every year by Financial Investment Companies justify the high interest from investors for these shares. Currently, these companies offer a very attractive return for investors compared to the average dividend yield of the Stock Exchange. The evolution of the price earnings ratio shows the normal trend of rise of the companies’ shares in the period 2007-2008, after that they have entered the market at highly undervalued levels especially after declining in 2008.

Financial Economy and Financial System: Basis of Structural Interconnection

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Khorosheva Olena I.

2014-02-01

Full Text Available The goal of the article lies in identification of grounds of interconnection of the financial economy and financial system. The study was conducted with consideration of main provisions of the theory of finance and concept of financial economy, which is a set of means used in the process of reproduction of finance by their owner for formation and / or maintenance of the own system of values in the viable state. For the first time ever the structure of the financial system is identified as an aggregate of financial economies and financial market. The article justifies a necessity of expansion of boundaries of perception of the state financial economy, which is offered to include public financial economy of the state level and the set of financial economies of the state as a subject of economic activity. Such an approach forms a base for justification of the synthesis of participation of the state in financial relations as the owner and as the basic macro-economic regulator. Prospects of further study in this direction are: development of classification of financial economies; revelation of specific features of impact of shadow finance on development of the national financial economy; and assessment of possibilities of inclusion of structured financial products into the system of values of financial economies in Ukraine.

Five Year Retrospective Study of the Financial Situation of Northern Foods Plc., United Kingdom

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Louie DACOSTA

2016-09-01

Full Text Available This study was conducted as a retrospective analysis of Northern Foods Plc., once a major player in FTSE 350 Food Sector, to evaluate its financial situation over a five year period. The ex post factor research design was used for this study. Annual reports and databases on Northern Foods Plc., and Associated British Foods Plc., were used to perform a series of ratio analyses. The results revealed that Northern Foods Plc.’s performance has been declining as evidenced in the profitability ratios calculated. Also, financial strength was weak and working capital has not been effectively managed, hence affecting its cash and profit generation potentials. The company was limited in its ability to grow and expand as it needed to regularly fund its pension deficit, and finance its high levels of debt. The study concludes that Northern Foods was not in a very strong financial position, yet it was not making the required investments to improve, hence its takeover though this paper will not rule out non-financial issues. Furthermore, the study prescribed five generic points to improve the financial health of any organisation.

Pengaruh Profitabilitas, Resiko Keuangan, Nilai Perusahaan, Struktur Kepemilikan dan Dividend Payout Ratio terhadap Perataan Laba

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Dika Fajar Pratama

2015-12-01

Full Text Available This research aims to test empirically the effect of profitability, financial risk, firm value, ownership structure and dividend payout ratio to income smoothing. The sample in this research are 33 manufacture companies that have been listed on the Indonesia Stock Exchange in period of 2006 to 2009. Sample was obtained by purposive sampling method. Analysis tool uses regression analysis with logistic regression method.  The results of analysis indicate that profitability, financial risk, firm value, public ownership and dividend payout ratio do not influence income smoothing in manufacture companies except managerial ownership.

East Asian Financial Cycles: Asian vs. Global Financial Crises

OpenAIRE

Akira Kohsaka; Jun-ichi Shinkai

2014-01-01

We examine the role of financial shocks in business cycles in general and in financial crises in particular in East Asia (Indonesia, Korea, Malaysia and Thailand) since the 1990s. Estimating a Financial Conditions Index, we found that financial shocks explain most of business downturns in all the economies in the Asian Financial Crisis (AFC) in 1997-98, but that the effects of financial shocks are diverse across economies in the Global Financial Crisis (GFC) in 2008-09. In the GFC, the financ...

Corporate financial restructuring in Asia: implications for financial stability

OpenAIRE

Michael Pomerleano

2007-01-01

Corporate financial fragility preceding the Asian financial crisis heightened vulnerabilities. Many countries in the region undertook significant corporate financial restructuring after the crisis, with some countries bouncing back much faster than others. These sounder corporate financial practices bode well for financial stability.

FINANCIAL INFORMATION, EFFECTS OF FINANCIAL INFORMATION ON ECONOMIC DECISION

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TAK ISA

2010-12-01

Full Text Available Financial information has, indisputably, an important effect in economics. To form an effective capital market, financial information must be reliable and accurate. Misleading financial information always has a negative impact on economic decision taken by users. It is known that financial information as the cornerstone of financial markets, can improve economic performance in several ways. Nowadays we are facing economic crisis due to irregularities of presentation of financial statements to users. Misunderstandings cause economic recession. Detection of fraudulent financial information, is an important issue facing the auditing profession. Currently, bankruptcy of companies around the world, leaves millions of people without jobs, this is caused by financial information which is manipulated by companies. The purpose of this paper is to analyze the effects of errors and manipulation committed in the financial information sector on the real economy. Also one of the purposes of this paper is to analyze error and fraud in financial statements how it effects the real economy and the reasons for committing fraud in financial statements. Also, several suggestions are included in this study about actions that can be taken to prevent errors and manipulation in financial information.

Financial Liberalization and Financial Fragility

OpenAIRE

Enrica Detragiache; Asli Demirgüç-Kunt

1998-01-01

The authors study the empirical relationship between banking crises and financial liberalization using a panel of data for 53 countries for 1980-95. They find that banking crises are more likely to occur in liberalized financial systems. But financial liberalization's impact on a fragile banking sector is weaker where the institutional environment is strong--especially where there is respect for the rule of law, a low level of corruption, and good contract enforcement. They examine evidence o...

Financial Capability and Sociodemographic Factors among Survivors of Human Trafficking.

Science.gov (United States)

Okech, David; McGarity, Stephen Vandiver; Hansen, Nathan; Burns, Abigail C; Howard, Waylon

2018-01-01

Improving the economic well-being of the girls and women is a key to reducing re-trafficking and in providing stability that survivors can use to rebuild their lives. The study looks at how various sociodemographic traits affected the financial capability of n = 144 women and girls who received intervention at a residential care facility in Ghana, West Africa. Three domain of financial capability are assessed in this, i.e., financial risk, financial planning, and financial saving. A scaled likelihood ratio test (chi-square difference test) was used to evaluate the significance of each direct covariate effect(%). Each of the overall goodness-of-fit indices suggested that the initial CFA model fit the data well, χ 2 (19, N = 144)  = 31.45, p = 0.04, RMSEA = 0.067 (90% CI: 0.017-0.108), TLI = 0.923, CFI = 0.948. Older women reported lower levels of financial savings than younger women. We found that women with secondary school education or higher reported significantly higher financial risk than women with less education. Women with children reported lower levels of financial saving than women without children. Married women indicated significantly more financial saving than single women. There was a significant negative effect of time spent in trafficking conditions on financial saving, indicating the highest average level of financial savings at intervention and decreased thereafter. Programs and policies in resource-scarce contexts that aim to assist trafficking survivors must go beyond providing psychosocial counseling and focus also on economic development opportunities.

The Derivatives as Financial Risk Management Instruments: The Case of Croatian and Slovenian Non-financial Companies

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Danijela Miloš Sprčić

2007-12-01

Full Text Available The paper analyses financial risk management practices and derivative usage in large Croatian and Slovenian non-financial companies and explores if the decision to use derivatives as risk management instruments in the analysed companies is a function of several firm’s characteristics that have been proven as relevant in making financial risk management decisions. On the basis of the research results it can be concluded that forwards and swaps are by far the most important derivative instruments in both countries. Futures as representatives of standardised derivatives together with structured derivatives are more important in the Slovenian than in the Croatian companies, while exchange-traded and OTC options are unimportant means of financial risk management in both countries. A comparative analysis conducted to explore differences between risk management practices in Slovenian and Croatian companies has shown evidence that Slovenian companies use all types of derivatives, especially structured derivatives, more intensively than Croatian companies. The survey has revealed that the explored hedging rationales have little predictive power in explaining financial risk management decisions both in Croatian and Slovenian companies. The decision to use derivatives in Croatian non-financial companies is related only to the investment expenditures-to-assets ratio which controls for costly external financing hypothesis, while the decision to use derivatives in Slovenian companies is dependent only on the size of the company. It can be argued that the characteristics of the Croatian and Slovenian firms could be found in other South-eastern European countries and that findings of this research may act as a baseline from which to generalise. Therefore, the survey results analysed in this paper also suggest a broader comparison across countries in the region. The advantage of this work is that it provides an impetus for further research to move beyond the

Securing financial independence in the legal basis of a central bank

OpenAIRE

Amtenbrink, Fabian

2005-01-01

textabstractTogether with institutional, functional and organizational independence, financial independence constitutes one of the cornerstones of central bank independence, the economic ratio of which has been demonstrated extensively in the literature. In broad terms financial independence may be defined as referring to the legal and practical arrangements identifying the finances of a central bank and the extent to which the bank is subject to outside influence in this regard. In the (lega...

EDF - Quarterly Financial Information

International Nuclear Information System (INIS)

Trivi, Carole; Boissezon, Carine de; Hidra, Kader

2014-01-01

EDF's sales in the first quarter of 2014 were euro 21.2 billion, down 3.9% from the first quarter of 2013. At constant scope and exchange rates, sales were down 4.2% due to mild weather conditions, which impacted sales of electricity in France, gas sales abroad and trading activities in Europe. UK sales were nonetheless sustained by B2B sales due to higher realised wholesale market prices. In Italy, sales growth was driven by an increase in electricity volumes sold. The first quarter of 2014 also saw the strengthening of the Group's financial structure with the second phase of its multi-annual hybrid funding programme (nearly euro 4 billion equivalent) as well as the issue of two 100-year bonds in dollars and sterling aimed at significantly lengthening average debt maturity. 2014 outlook and 2014-2018 vision: - EDF Group has confirmed its financial objectives for 2014; - Group EBITDA excluding Edison: organic growth of at least 3%; - Edison EBITDA: recurring EBITDA target of euro 1 billion and at least euro 600 million in 2014 before effects of gas contract re-negotiations; - Net financial debt / EBITDA: between 2x and 2.5x; - Pay-out ratio of net income excluding non-recurring items post-hybrid: 55% to 65%. The Group has reaffirmed its goal of achieving positive cash flow after dividends, excluding Linky, in 2018

Disclosure of Non-Financial Information: Relevant to Financial Analysts?

OpenAIRE

ORENS, Raf; LYBAERT, Nadine

2013-01-01

The decline in the relevance of financial statement information to value firms leads to calls from organizational stakeholders to convey non-financial information in order to be able to judge firms' financial performance and value. This literature review aims to report extant literature findings on the use of corporate non-financial information by sell-side financial analysts, the information intermediaries between corporate management and investors. Prior studies highlight that financial ana...

Financial globalisation uncertainty/instability is good for financial development

OpenAIRE

Asongu, Simplice A.; Koomson, Isaac; Tchamyou, Vanessa S.

2015-01-01

Purpose – This study assesses the effect of time-dynamic financial globalisation uncertainty on financial development in 53 African countries for the period 2000-2011. Design/methodology/approach – Financial globalisation uncertainty is estimated as time-dynamic to capture business cycle disturbances while all dimensions identified by the Financial Development and Structure Database of the World Bank are employed, namely: financial depth (money supply and liquid liabilities), financial sy...

Early Experience of Financial Performance and Solvency of Medicaid-Focused Insurers Under ACA Expansion.

Science.gov (United States)

McCue, Michael J

2017-12-01

To allow for greater coverage of the uninsured, the Affordable Care Act expanded Medicaid coverage in 2014. Accessing financial data of state health insurers from the National Association of Insurance Commissioners, this data trend study compares the financial performance and solvency of Medicaid-focused health insurers prior to and after the first year expansion of Medicaid coverage. After the first year of Medicaid expansion, there was a significant increase in operating profit margin ratio for Medicaid-focused health insurers within expansion states. Lower medical loss ratio as well as no change in administrative costs contributed to this profitable position. The risk-based capital ratio for solvency increased significantly for health insurers in nonexpansion states while there was no change in this ratio for health insurers in expansion states. Conversely, the other important solvency ratio of cash flow margin increased significantly for health insurers in expansion states but not for insurers in nonexpansion states.

Pengaruh Rasio Likuiditas, Rasio Profitabilitas, Rasio Rentabilitas Ekonomi dan Rasio Leverage terhadap Prediksi Financial Distress (Suatu Studi pada Perusahaan Transportasi di Bursa Efek Indonesia)

OpenAIRE

Rambe, Erlina Sari

2016-01-01

The purpose of this research is to know the influence of liqudity ratio, profitability ratio, economic rentability ratio and leverage ratio either partially or simultaneously toward financial distress prediction in the transportation companies on the Indonesia Stock Exchange. This research is classified as causal research with 16 transportation firms listed in Indonesia Stocks Exchange during 2012 to 2014. This study uses a Altman financial ratio with Z-Score value to prediction of finan...

College Students and Financial Distress: Exploring Debt, Financial Satisfaction, and Financial Anxiety

Science.gov (United States)

Archuleta, Kristy L.; Dale, Anita; Spann, Scott M.

2013-01-01

The impact of financial concerns on overall mental health has become a popular topic among researchers and practitioners. In this exploratory study, possible associations of financial anxiety were explored using a sample of 180 college students who sought services at a university peer financial counseling center in a Midwestern state. Of…

Financial stress and outcomes after acute myocardial infarction.

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Sachin J Shah

Full Text Available Little is known about the association between financial stress and health care outcomes. Our objective was to examine the association between self-reported financial stress during initial hospitalization and long-term outcomes after acute myocardial infarction (AMI.We used prospective registry evaluating myocardial infarction: Event and Recovery (PREMIER data, an observational, multicenter US study of AMI patients discharged between January 2003 and June 2004. Primary outcomes were disease-specific and generic health status outcomes at 1 year (symptoms, function, and quality of life (QoL, assessed by the Seattle Angina Questionnaire [SAQ] and Short Form [SF]-12. Secondary outcomes included 1-year rehospitalization and 4-year mortality. Hierarchical regression models accounted for patient socio-demographic, clinical, and quality of care characteristics, and access and barriers to care.Among 2344 AMI patients, 1241 (52.9% reported no financial stress, 735 (31.4% reported low financial stress, and 368 (15.7% reported high financial stress. When comparing individuals reporting low financial stress to no financial stress, there were no significant differences in post-AMI outcomes. In contrast, individuals reporting high financial stress were more likely to have worse physical health (SF-12 PCS mean difference -3.24, 95% Confidence Interval [CI]: -4.82, -1.66, mental health (SF-12 MCS mean difference: -2.44, 95% CI: -3.83, -1.05, disease-specific QoL (SAQ QoL mean difference: -6.99, 95% CI: -9.59, -4.40, and be experiencing angina (SAQ Angina Relative Risk = 1.66, 95%CI: 1.19, 2.32 at 1 year post-AMI. While 1-year readmission rates were increased (Hazard Ratio = 1.50; 95%CI: 1.20, 1.86, 4-year mortality was no different.High financial stress is common and an important risk factor for worse long-term outcomes post-AMI, independent of access and barriers to care.

HUNGARIAN AND ROMANIAN COMPANIES FINANCIAL AND LIQUIDITY SITUATION IN THE LIGHT OF ECONOMIC CRISIS

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Kinga Emese Zsido

2014-07-01

Full Text Available The behavior of the companies has changed in the last 5-6 years: they became cautious and suspicious about partners and other economic actors. This is a direct consequence of the large number of insolvent and liquidated companies, and other effects of the economic and financial crisis. The impaired financing options, the sharp fall of sales caused difficulties for companies. In general, the financial and liquidity situation of the companies is getting worse, so new financial policies are needed. To make the financial activities efficient, it is indispensable that the policy makers are aware of the real financial and liquidity situation of their own companies. But, in order to conduct successful business relationships, enterprises need to be aware of the financial situation of their partners as well. Intensified trade relations between the EU member states will require these companies to learn more about financial and liquidity situations. This present paper examines two countries, namely, a Hungarian and a Romanian region’s commercial companies financial and liquidity situations of the 2010-2012 periods. The article presents the subject both from theoretical and practical data aspects too. Based on the available e-data reports, the investigation starts with the net working capital’s examination. The working capital management has a crucial role in their financing policies. The size of the net working capital affects the degree of financial policy’s flexibility. The negative net working capital calls the attention for financial problems. The study continues with the calculation of traditional liquidity ratios, which may also reflect the liquidity situation of the companies. It is recommended not to accept the results of these indicators without calculating any other liquidity ratios. These indicators show an actual situation, so they can distort reality (positive or negative. Other indicators and methods are needed to assess the real

Assessing the Financial Condition of Provider-Sponsored Health Plans.

Science.gov (United States)

McCue, Michael J

2015-06-01

The aim of this study was to assess the performance of health plans sponsored by provider organizations, with respect to plans generating strong positive cash flow relative to plans generating weaker cash flow. A secondary aim was to assess their capital adequacy. The study identified 24 provider-sponsored health plans (PSHPs) with an average positive cash flow margin from 2011 through 2013 at or above the top 75th percentile, defined as "strong cash flow PSHPs:" This group was compared with 72 PSHPs below the 75th percentile, defined as "weak cash flow PSHPs:" Atlantic Information Services Directory of Health Plans was used to identify the PSHPs. Financial ratios were computed from 2013 National Association of Insurance Commissioners Financial Filings. The study conducted a t test mean comparison between strong and weak cash flow PSHPs across an array of financial performance and capital adequacy measures. In 2013, the strong cash flow PSHPs averaged a cash-flow margin ratio of 6.6%. Weak cash flow PSHPs averaged a cash-flow margin of -0.4%. The net worth capital position of both groups was more than 4.5 times authorized capital. The operational analysis shows that strong cash-flow margin PSHPs are managing their medical costs to achieve this position. Although their medical loss ratio increased by almost 300 basis points from 2011 to 2013, it was still statistically significantly lower than the weaker cash flow PSHP group (P<.001). In terms of capital adequacy, both strong and weak cash-flow margin PSHP groups possessed sufficient capital to ensure the viability of these plans.

Prediksi Financial Distress Bank Umum di Indonesia: Analisis Diskriminan dan Regresi Logistik

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Imaduddin Shidiq

2017-02-01

Full Text Available Financial Distress Prediction in The Indonesian Banks: Discriminant Analysis and Logistic RegressionThis research aims to create early warning models for predicting financial distress on Indonesian commercial banks. Early warning models is made by estimating bank indicators that led bank run into financial problems which to be shut down by the government. Estimation use two methods, discriminant analysis, logistic regression. The data used to create models is bank's financial ratios in 1994-1997 gathered from Direktori Perbankan Indonesia (DPI. Out of the sample test use the data in 1998. All model were used to predict the bank's financial distress after 2000. This study found some characteristics of distressed banks that will be in the state of failure in two or three years. Finally, this research found that early warning system models is able to predict the probability of financial distress on commercial banks.DOI:  10.15408/ess.v7i1.4686 

The financial consequences of too many men: sex ratio effects on saving, borrowing, and spending.

Science.gov (United States)

Griskevicius, Vladas; Tybur, Joshua M; Ackerman, Joshua M; Delton, Andrew W; Robertson, Theresa E; White, Andrew E

2012-01-01

The ratio of males to females in a population is an important factor in determining behavior in animals. We propose that sex ratio also has pervasive effects in humans, such as by influencing economic decisions. Using both historical data and experiments, we examined how sex ratio influences saving, borrowing, and spending in the United States. Findings show that male-biased sex ratios (an abundance of men) lead men to discount the future and desire immediate rewards. Male-biased sex ratios decreased men's desire to save for the future and increased their willingness to incur debt for immediate expenditures. Sex ratio appears to influence behavior by increasing the intensity of same-sex competition for mates. Accordingly, a scarcity of women led people to expect men to spend more money during courtship, such as by paying more for engagement rings. These findings demonstrate experimentally that sex ratio influences human decision making in ways consistent with evolutionary biological theory. Implications for sex ratio effects across cultures are discussed.

Financial Coaching's Potential for Enhancing Family Financial Security

Science.gov (United States)

Collins, J. Michael; Olive, Peggy; O'Rourke, Collin M.

2013-01-01

Financial coaching is an emerging complement to financial education and counseling. As defined in this article, financial coaching is a process whereby participants set goals, commit to taking certain actions by specific dates, and are then held accountable by the coach. In this way, financial coaching is designed to help participants bridge the…

FINANCIAL DEPTH AND FINANCIAL ACCESS IN INDONESIA

OpenAIRE

Sigit Setiawan

2015-01-01

This study is intended to analyze the current levels of financial depth and financial access in Indonesia and to analyze the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relativel...

Materiality from financial towards non-financial reporting

OpenAIRE

Chiara Mio

2013-01-01

The article aims at discussing the evolution of the concept of materiality in financial and, more specifically, non-financial reporting. Materiality will play a central role in the next years in order for reports to reach conciseness, which is at present one of the main goals both financial and non-financial reporting (in particular Integrated Reporting) aims to achieve. The article reviews the most relevant materiality frameworks and definitions and provides further insights for the advancem...

SOLVENCY RATIO AS A TOOL FOR BANKRUPTCY PREDICTION

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Daniel BRÎNDESCU–OLARIU

2016-08-01

Full Text Available The current study evaluates the potential of the solvency ratio in predicting corporate bankruptcy. The research is focused on Romania and, in particular, on Timis County. The interest for the solvency ratio was based on the recommendations of the scientific literature, as well as on the availability of information concerning its values to all stakeholders. The event on which the research was focused was represented by the manifestation of bankruptcy 2 years after the date of the financial statements of reference. All tests were performed over 2 paired samples of 1176 companies in total. The methodology employed in evaluating the potential of the solvency ratio was based on the Area Under the ROC Curve (0.646 and the general accuracy ensured by the ratio (64.5% out-of-sample accuracy. The results confirm the practical utility of the solvency ratio in the prediction of bankruptcy.

FINANCIAL DEPTH AND FINANCIAL ACCESS IN INDONESIA

OpenAIRE

Sigit Setiawan

2015-01-01

This study is intended to analyse the current levels of financial depth and financial access in Indonesia and to analyse the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relativel...

Financial Depth and Financial Access in Indonesia

OpenAIRE

Setiawan, Sigit

2015-01-01

This study is intended to analyse the current levels of financial depth and financial access in Indonesia and to analyse the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relativel...

Credit risk disclosure in the annual financial statements of Bulgarian banks

OpenAIRE

Anita Atanassova; Nadezhda Popova-Yosifova

2018-01-01

The paper analyzes the credit risk disclosure in the annual financial statements of Bulgarian banks for 2015 and 2016. Banks are ranked according to the level of credit risk disclosure, in accordance with the requirements of international accounting regulations and in relation to financial and regulatory ratios linked to capital adequacy. As a result of the conducted empirical study, it is concluded that banks' management is not particularly inclined to make full disclosures and actively to d...

Hospital board effectiveness: relationships between board training and hospital financial viability.

Science.gov (United States)

Molinari, C; Morlock, L; Alexander, J; Lyles, C A

1992-01-01

This study examined whether hospital governing boards that invest in board education and training are more informed and effective decision-making bodies. Measures of hospital financial viability (i.e., selected financial ratios and outcomes) are used as indicators of hospital board effectiveness. Board participation in educational programs was significantly associated with improved profitability, liquidity, and occupancy levels, suggesting that investment in the education of directors is likely to enhance hospital viability and thus increase board effectiveness.

THE RELEVANCE OF THE PERFORMANCE INDICATORS IN ECONOMIC AND FINANCIAL DIAGNOSIS

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MIRELA MONEA

2011-01-01

Full Text Available Each company must achieve the objectives to reach performance in order to survive on the market. The paper aims to present the concept of performance as is seen in economic literature, to discuss the relevance of the main performances indicators on economic and financial diagnosis, to answer the question what are the main indicators which reflect economic or financial performances: profit, profitability ratios, economic added value, investments return, liquidity, cash-flows, resources efficiency, productivity, others.

Optimal Long-Term Financial Contracting

OpenAIRE

Peter M. DeMarzo; Michael J. Fishman

2007-01-01

We develop an agency model of financial contracting. We derive long-term debt, a line of credit, and equity as optimal securities, capturing the debt coupon and maturity; the interest rate and limits on the credit line; inside versus outside equity; dividend policy; and capital structure dynamics. The optimal debt-equity ratio is history dependent, but debt and credit line terms are independent of the amount financed and, in some cases, the severity of the agency problem. In our model, the ag...

Does Size Matter? The Impact of Student-Staff Ratios

Science.gov (United States)

McDonald, Gael

2013-01-01

Student-staff ratios (SSRs) in higher education have a significant impact on teaching and learning and critical financial implications for organisations. While SSRs are often used as a currency for quality both externally for political reasons and internally within universities for resource allocations, there is a considerable amount of ambiguity…

Adolescents' Financial Literacy: The Role of Financial Socialization Agents, Financial Experiences, and Money Attitudes in Shaping Financial Literacy among South Korean Youth

Science.gov (United States)

Sohn, Sang-Hee; Joo, So-Hyun; Grable, John E.; Lee, Seonglim; Kim, Minjeung

2012-01-01

The purpose of this study was to test the relationships between financial socialization agents, financial experiences, money attitudes, demographic characteristics, and the financial literacy of Korean adolescents. Using the 2006 Korean National Financial Literacy Test Survey for Adolescents (N = 1185), a series of regression analyses were…

Decomposing US Money Supply Changes since the Financial Crisis

Directory of Open Access Journals (Sweden)

Richard Robinson

2013-06-01

Full Text Available In response to the financial crisis of 2008, the Federal Reserve radically increased the monetary base. Banks responded by increasing excess reserves rather than increasing bank loans, and the public responded with a substantial flight to liquidity in the form of currency and demand deposits. As a result, the money-supply multipliers substantially decreased, so that the actual money supply measures grew more moderately than the base. The sustained multiplier-collapse spawned reexamination of monetary versus fiscal theories of price-level determination. This paper, however, presents decompositions of the money-multiplier collapse into changes in the currency-to-deposit ratios, and changes in the reserve-to-deposit ratio. By doing so, possible near-term increases in the multipliers are simulated so that the possibility of either full or partial restoration to their pre-crisis levels is assessed. Policy possibilities for controlling the money supply over various horizons follow. This analysis illustrates the Federal Reserve’s exit dilemma that results from its financial-crisis policy.

THE FINANCIAL SECTOR IN THE FINANCIAL SYSTEM ECONOMY: THEORETICAL ASPECTS

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Yu. Kovalenko

2015-06-01

Full Text Available Broad and narrow approaches of the financial system are obtained. The difference between the financial system and the financial sector (the fi-nancial corporations sector is shown. Organizational and institutional matrix of the financial system of the economy is proposed. Key positions of institutional sectors classification of Ukraine’s economy are analyzed, as well as the System of National Accounts with respect to the financial sec-tor of corporations. The structure of the sector of financial corporations in Ukraine is defined.

Satisfying the demand for financial information in public traded companies

DEFF Research Database (Denmark)

Holm, Claus

A public traded company which wishes to comply with IAS standards and stock exchange requirements for full public disclosure of relevant information faces a major communication task. The Investor Relation policy of such a company has to satisfy a demand for financial information which seems...... line focus to the disclosure of cash flow surrogates like EBITA and EBITDA. Overall, the findings suggest a communication strategy intended to satisfy the demand from the professional analysts. However, the shear number of different key figures and financial ratios identified in the study suggest...

Strengthening financial management, providing financial safeguard mechanism

International Nuclear Information System (INIS)

Sun Wumei

2010-01-01

This article reviewed the history of Zhong He Shanxi Uranium Enrichment Company, summarizing an efficient and systematical financial management method during both construction period and operational period of the company. It related to fundamental financial management structure building, integrated budgeting, fund management, cost management, asset management, tax planning and HR management. of financial staffs. (author)

Delays help German utilities maintain self-financing ratios

International Nuclear Information System (INIS)

Radtke, G.

1979-01-01

Estimates of electricity consumption have been substantially reduced and nuclear plant is now expected to be 22% of total generating capacity in 1985 instead of the earlier forecast of 36%. The decline in the ordering of new plant has benefited the financial position of the electricity utilities and the expected fall in self-financing ratios has not occurred. (U.K.)

Financial Stress, Financial Literacy, Counselling and the Risk of Homelessness

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Adam Steen

2013-09-01

Full Text Available Poor financial literacy may lead to poor life choices. These life choices can create or contribute to financial stress with adverse consequences - not the least of which may be homelessness. These issues are relatively well understood, but there is limited research on the link between financial stress, financial literacy and counselling, and homelessness. Specifically, there has been little research on how improved financial literacy and appropriate financial counselling might help to prevent homelessness. This paper synthesises existing literature on this topic and considers these issues using the ABCX family stress model of Hill (1958 using data from an Australian program aimed at alleviating family homelessness, the Home Advice Program. We provide evidence that suggests that case management and support which incorporates financial counselling and financial literacy can assist in moderating the impact of financial stress and help those at risk of homelessness. The findings have implications for public policy in the areas of financial education, consumer finance, and social services provision.

Financial Health of electricity producers. What strategies to the crisis?

International Nuclear Information System (INIS)

Aristide, Adrien; Gobert, Yann; Bailey, Christopher

2017-02-01

This publication reports an analysis of the financial situation of 15 European electric power producing companies which represent 55 per cent of the electricity production. In a crisis context (decrease of turnover and of EBITDA between 2013 and 2015), three strategies seem to emerge: a model based on renewable production, orientation towards renewable production, and focus on an operational efficiency of the energy mix. As the installed production capacity has increased, electric power consumption has decreased. Thus, the financial situation of power utilities is strongly affected by the economic context, and companies are trying to maintain their financial ratios (control of financial debt and preservation of asset profitability) while they are facing a loss of confidence from investors as revealed by their performance on the stock exchange market. In response, they diversify their activities and redefine their strategy as mentioned here above. These elements are first presented with commented graphs, and then more precisely discussed

Relationship between financial impact and coverage of drugs in Australia.

Science.gov (United States)

Mauskopf, Josephine; Chirila, Costel; Masaquel, Catherine; Boye, Kristina S; Bowman, Lee; Birt, Julie; Grainger, David

2013-01-01

The aim of this study was to estimate the relationship between the financial impact of a new drug and the recommendation for reimbursement by the Australian Pharmaceutical Benefits Advisory Committee (PBAC). Data in the PBAC summary database were abstracted for decisions made between July 2005 and November 2009. Financial impact-the upper bound of the values presented in the PBAC summary database-was categorized as ≤A$0, >A$0 up to A$10 million, A$10 million up to A$30 million, and >A$30 million per year. Descriptive, logistic, survival, and recursive partitioning decision analyses were used to estimate the relationship between the financial impact of a new drug indication and the recommendation for reimbursement. Multivariable analyses controlled for other clinical and economic variables, including cost per quality-adjusted life-year gained. Financial impact was a significant predictor of the recommendation for reimbursement. In the logistic analysis, the odds ratios of reimbursement for drug submissions with financial impacts ≥A$10 million to ≥A$30 million or >A$0 to impact compared with those with a zero or negative financial impact. In Australia, financial impact on the drug budget is an important determinant of whether a new drug is recommended for reimbursement when cost-effectiveness estimates and other clinical and economic variables are controlled.

Financial transparency and physicians: the physician leader's guide to sharing numbers.

Science.gov (United States)

Paskert, James P

2014-01-01

Review critical factors such as length of stay, case mix, financial statements, ratios and days cash on hand that physicians need to understand to adequately manage hospital patients and engage in the success of the organization.

39 CFR 233.5 - Requesting financial records from a financial institution.

Science.gov (United States)

2010-07-01

... INSPECTION SERVICE AUTHORITY § 233.5 Requesting financial records from a financial institution. (a... Department of the U.S. Postal Service to request financial records from a financial institution pursuant to... authorized to request financial records of any customer from a financial institution pursuant to a formal...

Impact of financial burden of cancer on survivors' quality of life.

Science.gov (United States)

Fenn, Kathleen M; Evans, Suzanne B; McCorkle, Ruth; DiGiovanna, Michael P; Pusztai, Lajos; Sanft, Tara; Hofstatter, Erin W; Killelea, Brigid K; Knobf, M Tish; Lannin, Donald R; Abu-Khalaf, Maysa; Horowitz, Nina R; Chagpar, Anees B

2014-09-01

Little is known about the relationship between the financial burden of cancer and the physical and emotional health of cancer survivors. We examined the association between financial problems caused by cancer and reported quality of life in a population-based sample of patients with cancer. Data from the 2010 National Health Interview Survey (NHIS) were analyzed. A multivariable regression model was used to examine the relationship between the degree to which cancer caused financial problems and the patients' reported quality of life. Of 2,108 patients who answered the survey question, "To what degree has cancer caused financial problems for you and your family?," 8.6% reported "a lot," whereas 69.6% reported "not at all." Patients who reported "a lot" of financial problems as a result of cancer care costs were more likely to rate their physical health (18.6% v 4.3%, P financial hardship. On multivariable analysis controlling for all of the significant covariates on bivariate analysis, the degree to which cancer caused financial problems was the strongest independent predictor of quality of life. Patients who reported that cancer caused "a lot" of financial problems were four times less likely to rate their quality of life as "excellent," "very good," or "good" (odds ratio = 0.24; 95% CI, 0.14 to 0.40; P financial burden asa result of cancer care costs is the strongest independent predictor of poor quality of life among cancer survivors. Copyright © 2014 by American Society of Clinical Oncology.

Predicting Bank Financial Failures Using Discriminant Analysis And Support Vector Machines Methods A Comparative Analysis In Commercial Banks In Sudan 2006-2014

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Mohammed A. SirElkhatim

2017-04-01

Full Text Available Bank failures threaten the economic system as a whole. Therefore predicting bank financial failures is crucial to prevent andor lessen its negative effects on the economic system. Financial crises affecting both emerging markets and advanced countries over the centuries have severe economic consequences but they can be hard to prevent and predict identifying financial crises causes remains both science and art said Stijn Claessens assistant director of the International Monetary Fund. While it would be better to mitigate risks financial crises will recur often in waves and better crisis management is therefore important. Analyses of recurrent causes suggest that to prevent crises governments should consider reforms in many underlying areas. That includes developing prudent fiscal and monetary policies better regulating the financial sector including reducing the problem of too-big-to-fail banks and developing effective macro-prudential policies. Despite new regulations and better supervision crises are likely to recur in part because they can reflect deeper problems related to income inequality the political economy and common human behavior. As such improvements in crisis management are also needed. This is originally a classification problem to categorize banks as healthy or non-healthy ones. This study aims to apply Discriminant analysis and Support Vector Machines methods to the bank failure prediction problem in a Sudanese case and to present a comprehensive computational comparison of the classification performances of the techniques tested. Eleven financial and non-financial ratios with six feature groups including capital adequacy asset quality Earning and liquidity CAMELS are selected as predictor variables in the study. Credit risk also been evaluated using logistic analysis to study the effect of Islamic finance modes sectors and payment types used by Sudanese banks with regard to their possibilities of failure. Experimental results

THE ROLE OF FINANCIAL EDUCATION IN DEVELOPING THE FINANCIAL SERVICES MARKET

OpenAIRE

Ivanka Daneva

2015-01-01

Considering the current complexity of financial markets and of financial instruments and services, financial education is part of population’s financial literacy and it ranks as paramount factor in the complex for the financial markets development.

Ifrs Versus Cz Gaap: Influence of Construction Contracts on Financial Indicators

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Havlová Kristýna

2015-12-01

Full Text Available In 2009, 117 countries all over the world allowed to prepare financial statements according to International Financial Reporting Standards (IFRS including the Czech Republic. Between Czech General Accepted Accounting Principles (CZ GAAP and IFRS are some differences involving reporting of noncurrent fixed assets, leasing, construction contracts etc. Using different accounting procedure we can get different value of assets and assets are one component that is used to calculate the financial performance indicators. Those indicators are then used by investors to assess the financial performance of companies and the application of IFRS instead of CZ GAAP can lead to distinct presentation of enterprise performance. In this paper we examine the influence of construction contract reporting using IFRS and CZ GAAP on financial indicators. IFRS leads to more stable development during the period when the project is in progress. In the last year when the project is finished the figures of both ratios (ROA and Z-score are getting worse which is due to the lower percentage of the construction that is built in this year.

Financial literacy and financial literacy education : what might be the components of an effective financial literacy curriculum?

OpenAIRE

Lee, Nirmala

2010-01-01

Abstract There is concern about lack of financial literacy and need for financial literacy education, but little or no attempt to understand their nature. Three questions were asked: 'What is financial literacy?', 'What is financial literacy education?' and 'What might be the components of an effective financial literacy curriculum?'. Adopting an inductive grounded theory approach and a pragmatist philosophy, in association with real-world organisations such as the National ...

Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case

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H.L. Vacher

2014-01-01

Full Text Available Berman, Karen and Knight, Joe, with John Case. Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers, (Boston MA: Harvard Business Press, 2008. 285 pp. ISBN 978-1-4221-1915-0. From “The art of finance (and why it matters” (Part One through “Creating a financially intelligent company” (Part Eight, Financial Intelligence for Entrepreneurs is an engaging explanation and appreciation of financial statements and financial ratios. Short, easily digested chapters; just-in-time boxes to introduce terminology; easy, direct, in-text calculations from bare-bones, hypothetical financial statements to illustrate concepts; a 44-page appendix of crafted exercises on the income statement, balance sheet, cash-flow statement, and financial ratios from two public companies for deeper understanding; a detailed 19-page index for quick, after-you’ve-read-it navigation – all make for an efficient learning opportunity for readers who want a painless way to know about the numbers used in the world of business. Two quantitative literacy principles emerge as themes. The first is the “art of finance” (social construction: that is, the numbers are not totally objective; to varying extents, they reflect decisions, assumptions, and estimates in the accounting. The second is that ratios provide a window into the story that financial statements are able to tell. Written for entrepreneurs and company owners, the book ends with OBM (open-book management—a management philosophy based on financial literacy. The vision of this book is businesses in which all employees are financially literate and managers and owners are financially intelligent.

Financial Literacy as the Foundation for Individual Financial Behavior

Science.gov (United States)

Dwiastanti, Anis

2015-01-01

Research that is dealing with financial literacy turns to be such an important thing to be conducted. It is due to the fact that financial literacy level of Indonesian society is still very low. A good financial literacy is necessary for every individual to manage his/her finances to achieve prosperity. To have a good level of financial literacy,…

Financial Literacy, Financial Education and Economic Outcomes. NBER Working Paper No. 18412

Science.gov (United States)

Hastings, Justine S.; Madrian, Brigitte C.; Skimmyhorn, William L.

2012-01-01

In this article we review the literature on financial literacy, financial education, and consumer financial outcomes. We consider how financial literacy is measured in the current literature, and examine how well the existing literature addresses whether financial education improves financial literacy or personal financial outcomes. We discuss the…

PENGARUH FREE CASH FLOW DAN STRUKTUR KEMPEMILIKAN TERHADAP DIVIDEND PAYOUT RATIO

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Jurica Lucyanda

2012-12-01

Full Text Available Penelitian ini bertujuan menguji bagaimana free cash flow dan struktur kepemilikan berpengaruh terhadap dividend payout ratio pada perusahaan nonkeuangan yang terdaftar pada Bursa Efek Indonesia. Metode analisis yang digunakan adalah regresi berganda. Penelitian ini menggunakan data empiris dari Bursa Efek Indonesia dengan sampel sebanyak 70 perusahaan per tahun untuk tiga periode (2007-2009. Berdasarkan hasil pengujian, ditemukan bahwa variabel yang mempunyai pengaruh yang signifikan terhadap pembagian dividen adalah free cash flow, kepemilikan institusional, dan ukuran perusahaan. Jumlah free cash flow perusahaan yang tinggi, persentase kepemilikan institusional yang rendah, dan ukuran perusahaan yang besar akan menghasilkan dividend payout ratio yang tinggi. Variabel kepemilikan keluarga, kepemilikan asing, kebijakan utang, dan kesempatan investasi tidak terbukti mempunyai pengaruh yang signifikan terhadap Dividend Payout Ratio perusahaan.This study aims at testing the effect of free cash flow and ownership structure on the dividend payout ratio of non-financial companies, listed on the Indonesia Stock Exchange. Multiple regression was employed to analyze data. The study collected empirical data from the Indonesia Stock Exchange consisting of 70 companies. The data were collected from financial report from three consecutive years (2007-2009. The finding indicates that the variables which have a significant effect on the dividend payout ratio are free cash flow, institutional ownership, and firm size. The high free cash flow,  the low percentage of institutional ownership, and the large size companies will produce high dividends. The variable of family ownership, foreign ownership, debt policy, and investment opportunities do not significantly effect corporate dividend payout ratio.

24 CFR 902.35 - Financial condition scoring and thresholds.

Science.gov (United States)

2010-04-01

...-wide operations. (3) High liquidity or reserves. (i) Under the scoring process for the Financial Condition Indicator, no points will be deducted under the Current Ratio or Monthly Expenditure Fund Balance components for a PHA that has too high liquidity or reserves if the PHA has achieved at least 90 percent of...

FINANCIAL PERFORMANCE ANALYSIS AND BANKRUPTCY PREDICTION IN HUNGARIAN DAIRY SECTOR

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Rozsa Andrea

2014-07-01

The preliminary sample for the analysis is framed on the basis of three criteria: amount of the subscribed capital, sales revenues and product structure. Those companies are regarded as competitors that have subscribed capitals in excess of HUF 250 million, consistently high levels of sales revenues and diversified product structures. The preliminary sample consists of 7 companies. In 2012, their total sales revenues were as high as about 50% of the overall amount of sales revenues in the sector. Three of the 7 companies are possessed by foreign owners in full or part, whereas 4 of them belong to Hungarian owners. In 2012, Hungarian-owned companies covered more than one-third of the combined sales revenues of the 7 leading companies. Hence, the competitive positions of these 4 companies based on their financial positions are examined. These calculations have relied on the annual reports for the period of 2008–2012 (balance sheets, income statements, cash flow statements. The research has implemented a comprehensive and comparative financial analysis. The main question is what the key financial characteristics of the Hungarian-owned companies are. Financial indicators are calculated and their time-series analysis is accomplished to describe the sample companies’ capital structures, liquidity and profitability. Using comparative analysis of the applied financial ratios the study determines (1 which company has the most advantageous financial conditions for the successful operation; (2 which companies have disadvantageous financial situation; and (3 which companies are in potential financial distress situation. Potential bankruptcy positions are examined by the applications of Altman and Springate models.

Financial Stress and Financial Counseling: Helping College Students

Science.gov (United States)

Britt, Sonya L.; Canale, Anthony; Fernatt, Fred; Stutz, Kristen; Tibbetts, Racquel

2015-01-01

This study had two distinct purposes. First, to determine the predictors of financial stress among college students who sought free peer-based financial counseling from a large Midwestern university (N = 675). Secondly, to determine the effectiveness of the particular financial counseling center from a subsample of those who sought help (N = 97).…

Pengaruh Profitabilitas Dan Likuiditas Terhadap Capital Adequacy Ratio (CAR) Pada Bank Rakyat Indonesia (PERSERO) Tbk

OpenAIRE

Situmorang, Patar Sardo

2011-01-01

There are several factor that influent in banking performance such as liquidity and profitability. There could be represented with its financial ratios which can predict banking performance on capital matter (Capital Adequacy Ratio). The purpose of this research is to test influence of the variabel Interest Margin Loan (IML), Return on Equity (ROE), Loan To Deposit Ratio (LDR), and Reserve Requirement (GWM) toward Capital Adequacy Ratio (CAR). Data was used in this research based on public...

The financial position and funding of French non-financial corporations

OpenAIRE

G. Cette.; J.-P. Villetelle.

2015-01-01

This study, based on recent company statistics from national accounts and financial statements, shows a deterioration in the financial position of French non-financial corporations. This is affecting their performances and is prompting them to diversify their sources of funding in order to rationalise their financial structure.

APPLICATION OF FINANCIAL ETHICS IN ANNUAL FINANCIAL REPORTING OF BANKS

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Ayuba A. Aminu

2016-03-01

Full Text Available The importance of financial ethics and its application in financial reporting of banks cannot be ignored as it assists in building public confidence and fostering professionalism. However, the non-compliance and conformity with Nigerian Financial Regulatory Authorities prudential guidelines in the preparation of financial statements lead to incomplete or false information. The objective of the study is to examine the application of financial ethics in annual financial reporting of banks. The study employed primary and secondary data and stratified and purposive sampling techniques were used in which 20 questionnaires were administered to respondents. ANOVA and chi-square were in analysis and the findings revealed that there are significant unethical practices in the preparation of financial reports of banks in Nigeria. The study recommends that more emphasis and attention should be given to ethical standards in all banks and banks should give out clear reports of their financial activities to the regulatory authorities.

Financial Planners: Educating Widows in Personal Financial Planning

Science.gov (United States)

Korb, Brian R.

2010-01-01

Widows constitute a growing segment of the U.S. population; however, very little has been done to educate them on the basics of personal financial planning. The creation and implementation of financial planning education programs for widows can help them become more financially literate and free them from anxiety and fear. Interviews with eight…

Bye, Bye Financial Repression, Hello Financial Deepening: The Anatomy of a Financial Boom

OpenAIRE

João Manoel Pinho de Mello; Márcio Gomes Pinto Garcia

2011-01-01

Since the conquest of hyperinflation, with the Real Plan, in 1994, the Brazilian financial system has grown from early infancy to late adolescence. We describe the process of maturing with emphasis on the defining features of the Brazilian financial system over the last 20 years: 1) stabilization and the subsequent financial crisis; 2) universality of banks; 3) market segmentation through public lending; 4) institutional improvement. Further paraphrasing Díaz Alejandro (1984), we raise some h...

Integrating Fuzzy AHP and Fuzzy ARAS for evaluating financial performance

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Abdolhamid Safaei Ghadikolaei

2014-09-01

Full Text Available Multi Criteria Decision Making (MCDM is an advanced field of Operation Research; recently MCDM methods are efficient and common tools for performance evaluation in many areas such as finance and economy. The aim of this study is to show one of applications of mathematics in real word. This study with considering value based measures and accounting based measures simultaneously, provided a hybrid approach of MCDM methods in fuzzy environment for financial performance evaluation of automotive and parts manufacturing industry of Tehran stock exchange (TSE.for this purpose Fuzzy analytic hierarchy process (FAHP is applied to determine the relative important of each criterion, then The companies are ranked according their financial performance by using fuzzy additive ratio assessment (Fuzzy ARAS method. The finding of this study showed effective of this approach in evaluating financial performance.

The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam

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Thi Anh Nhu Nguyen

2017-06-01

Full Text Available The paper examines the factors, which affect decision-making on regular personal saving behaviour in the context of an emerging market in Vietnam. Focusing on financial literacy, the paper uses a combined measure of actual financial knowledge and a self-assessment of overall financial knowledge. The sample of the study consists of 240 commercial banks customers selected in 12 branches of four banks in Ho Chi Minh City. The questionnaire covers: (1 actual financial knowledge; (2 self-rating of financial knowledge; (3 financial risk tolerance; and (4 demographic characteristics of the respondents. The results of a logistic regression analysis show that perceived and actual financial literacy have separate effects on regular personal saving. Particularly, actual financial knowledge has a statistically significant positive relationship with regular personal saving with odds ratio higher than 6.5 times. However, perceived financial knowledge and financial risk tolerance factor are not statistically significant with regular personal saving. Finally, this paper offers evidence that the interaction variable, which is used to combine education level with their major study, has a statistically significant relationship with regular personal saving.

A descriptive analysis of the 2008 credit crisis on multistate healthcare systems: what impact did it have on their financial performance?

Science.gov (United States)

McCue, Michael J

2010-01-01

Due to the recent credit crisis and recession of 2008, hospitals experienced substantial losses in their investment portfolios. The author analyzed key financial accounts of 15 large, multistate healthcare systems that measured their changes in value of their investments, changes in net assets, liquidity ratios, and other performance ratios. Overall, he found that the majority of these systems did incur financial losses in their investment portfolios; however, for the majority of these systems, their liquidity and cash flow margin ratios declined slightly whereas their capital expenditure and community benefits increased.

THE CAUSALITY RELATION BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: AN ANALYSIS FOR EMERGING ECONOMIES

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Şeref BOZOKLU

2013-12-01

Full Text Available This study examines the relationship between financial development and economicgrowth employing panel Granger causality test developed by Dumitrescu ve Hurlin (2012for Brazil, Chile, China, Egypt, Hungry, India, Indonesia, Malaysia, Mexico, Peru,Philippines, South Korea, Thailand and Turkey. We used yearly data over the period 1988-2011. Domestic credits to Gross Domestic Product (GDP ratio and real GDP per capitaare used as indicators for financial development and economic growth respectively. Theempirical results strongly indicate that financial development Granger-causes economicgrowth and that these countries can accelerate their growth rates by improving theirfinancial systems. 

Financial Literacy and Financial Education: Review and Policy Implications

OpenAIRE

Annamaria Lusardi

2006-01-01

In recent years, as workers have gained an unprecedented degree of control over their pensions and savings, the importance of financial literacy and financial education has increased considerably. Large changes in the structure of financial markets, labor markets, and demographics in developed countries have led to this change. Consumers have a bewildering array of complex financial products – from reverse mortgages to annuities – to choose from, making saving decisions increasingly complex. ...

Financial Derivatives

OpenAIRE

Janečková, Alena

2011-01-01

1 Abstract/ Financial derivatives The purpose of this thesis is to provide an introduction to financial derivatives which has been, from the legal perspective, described in a not satisfactory manner as quite little literature that can be found about this topic. The main objectives of this thesis are to define the term "financial derivatives" and its particular types and to analyse legal nature of these financial instruments. The last objective is to try to draft future law regulation of finan...

FINANCIAL BALANCE - BASIC TOOL IN APPROACHING FINANCIAL DIAGNOSIS FOR FIRM VALUATION

OpenAIRE

Dorel BERCEANU; Nicolae SICHIGEA; Marcel DRĂCEA

2010-01-01

This paper addresses a very topical issue, namely the importance in assessing the company's financial accounts. Thus, after a brief role in evaluating company financial diagnosis and approaches related to the concept of financial balance, we presented the financial balance sheet in terms of logic building financial stability analysis. At the end of the paper were presented some conclusions.

Financial and Non Financial Factors on Going-Concern Opinion

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Junaidi Junaidi

2012-09-01

Full Text Available Company's ability to survive is a fundamental uncertainty faced in the preparation and auditing financial statements. Provision of going-concern opinion on these financial statements the company is still being debated. Public Accountant Professional Standards in section 341 states that the auditor is responsible for evaluating whether there is a major doubt on the ability of entities in the continued survival of the appropriate period of time, not more than one year from the date of the financial statements being audited. This research analyzed the financial and non financial factors that affected the provision of going-concern opinion. This research used samples of 63 companies with 315 observations, taken from years 2005-2009. The logistic regression analysis showed that the company's financial condition variables, mitigating evidence, and disclosure significantly influence the acceptance of going-concern opinion. Enterprise risk was not significant at propensity of going-concern opinion.

Organizational characteristics, financial performance measures, and funding sources of faith based organizations.

Science.gov (United States)

Lampkin, Lynne; Raghavan, Kamala

2008-01-01

This study examined the impact of organizational characteristics and financial performance measures of faith based organizations (FBOS) in Pennsylvania and Ohio on the decisions of the funding sources. Organizational characteristics of size, age, and type of service, and financial performance measures such as expense, liquidity, and solvency ratios were gathered from the data on IRS form 990 for 97 FBOS for the period of 1995 to 2004. The study found that the 1996 Charitable Choice provisions and the 2001 Office of Faith-Based and Community Initiatives have led to increased government funding for FBOS. The results showed that government funding of FBOS is affected positively by age of the FBO, and negatively by its size. For smaller FBOS, savings ratio had a negative relationship to government funding and a positive relationship to direct public support. For social service FBOS government funding was positively affected by age and negatively affected by size and debt ratio, while days-cash-on-hand had a negative impact on direct public support. All of the above relationships were statistically significant.

Impact of the New Jersey all-payer rate-setting system: an analysis of financial ratios.

Science.gov (United States)

Rosko, M D

1989-01-01

Although prospective payment may contain costs, many analysts are concerned about the unintended consequences of rate regulation. This article presents the results of a case-study analysis of the New Jersey rate-setting programs during the period 1977-1985. Using measures of profitability, liquidity, and leverage, data for New Jersey, the Northeast, and the United States as a whole are used to contrast the impact of two forms of prospective payment. After attempting alternative cost-containment methods, the New Jersey Department of Health implemented an all-payer system in which prospective rates of compensation were established for DRGs. The new rate-setting system was designed to control costs, improve access to care, maintain quality of services, ensure financial viability of efficient providers, and limit the payment differentials associated with cost shifting. The results of this study have a number of implications for the evaluation of all-payer rate regulation. First, although the New Jersey all-payer system was more successful than the partial-payer program in restraining the rate of increase in cost per case, savings were achieved without adversely affecting the viability of regulated hospitals. Second, the large differentials among payers that were associated with the partial-payer program were reduced dramatically by the all-payer program. Third, using the financial position of inner-city hospitals relative to suburban hospitals as a measure of equity, the all-payer system appeared to be a fairer method of regulating rates.

Spread of risk across financial markets: better to invest in the peripheries

Science.gov (United States)

Pozzi, F.; Di Matteo, T.; Aste, T.

2013-04-01

Risk is not uniformly spread across financial markets and this fact can be exploited to reduce investment risk contributing to improve global financial stability. We discuss how, by extracting the dependency structure of financial equities, a network approach can be used to build a well-diversified portfolio that effectively reduces investment risk. We find that investments in stocks that occupy peripheral, poorly connected regions in financial filtered networks, namely Minimum Spanning Trees and Planar Maximally Filtered Graphs, are most successful in diversifying, improving the ratio between returns' average and standard deviation, reducing the likelihood of negative returns, while keeping profits in line with the general market average even for small baskets of stocks. On the contrary, investments in subsets of central, highly connected stocks are characterized by greater risk and worse performance. This methodology has the added advantage of visualizing portfolio choices directly over the graphic layout of the network.

Spread of risk across financial markets: better to invest in the peripheries.

Science.gov (United States)

Pozzi, F; Di Matteo, T; Aste, T

2013-01-01

Risk is not uniformly spread across financial markets and this fact can be exploited to reduce investment risk contributing to improve global financial stability. We discuss how, by extracting the dependency structure of financial equities, a network approach can be used to build a well-diversified portfolio that effectively reduces investment risk. We find that investments in stocks that occupy peripheral, poorly connected regions in financial filtered networks, namely Minimum Spanning Trees and Planar Maximally Filtered Graphs, are most successful in diversifying, improving the ratio between returns' average and standard deviation, reducing the likelihood of negative returns, while keeping profits in line with the general market average even for small baskets of stocks. On the contrary, investments in subsets of central, highly connected stocks are characterized by greater risk and worse performance. This methodology has the added advantage of visualizing portfolio choices directly over the graphic layout of the network.

Pengaruh Return on Assets dan Debt to Equity Ratio terhadap Harga Saham pada Institusi Finansial di Bursa Efek Indonesia

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Rani Ramdhani

2013-03-01

Full Text Available This study aims to determine the effect of Return on Assets and Debt to Equity Ratio of Stock Price on Financial Institutions in Indonesia Stock Exchange. This study used secondary data, with samples 2 financial companies in Indonesia Stock Exchange during the study period 2004-2010. Independent variables in this study are Return on Assets and Debt to Equity Ratio. This study used purposive sampling technique. The method of data analysis used classical assumption test, hypothesis test, multiple regression analysis, the F test and t test. Based on results of the study, Return on Assets and Debt to Equity Ratio have no significant effect on stock price. Meanwhile, the F test result shows that Return on Assets and Debt to Equity Ratio jointly have no effect on stock price.

Financial Policies and the Prevention of Financial Crises in Emerging Market Countries

OpenAIRE

Frederic S. Mishkin

2001-01-01

This paper outlines a set of financial policies that can help make financial crises less likely in emerging market countries. To justify these policies, the paper first explains what a financial crisis is, the factors that promote a financial crisis and the dynamics of a financial crisis. It then examines twelve basic areas of financial policies to prevent financial crises: 1) prudential supervision, 2) accounting and disclosure requirements, 3) legal and judicial systems, 4) market-based dis...

Is Capitalization of Operating Lease Way to Increase of Comparability of Financial Statements Prepared in Accordance with IFRS and US GAAP?

Directory of Open Access Journals (Sweden)

Hana Bohušová

2015-01-01

Full Text Available The paper is concerned with an evaluation of possibilities of companies using operating lease and prepared financial statements under IFRS or US GAAP comparison. The data of non-financial companies listed on the Prague Stock Exchange and reporting information on operating lease in accordance with IAS 17 are used. The study presents the impact of operating lease capitalization on companies’ financial statements and financial analysis ratios. The results show a negative impact of operating lease capitalization on financial analysis ratios. The study was motivated by a common effort of the International Accounting Standards Board (IASB and the Financial Accounting Standards Board (FASB to develop the common standard for Lease reporting. In 2013, a joint exposure dra of standard (ED2013/6 Leases was published. Under the new standard, it is required to capitalize all lease agreements over one year. The distinction between operating leases and finance leases should not exist anymore. The study was carried out to demonstrate the potential impact resulting from the proposed adoption of the new accounting standard concerning mandatory capitalization of all lease contracts.

A financial network perspective of financial institutions' systemic risk contributions

Science.gov (United States)

Huang, Wei-Qiang; Zhuang, Xin-Tian; Yao, Shuang; Uryasev, Stan

2016-08-01

This study considers the effects of the financial institutions' local topology structure in the financial network on their systemic risk contribution using data from the Chinese stock market. We first measure the systemic risk contribution with the Conditional Value-at-Risk (CoVaR) which is estimated by applying dynamic conditional correlation multivariate GARCH model (DCC-MVGARCH). Financial networks are constructed from dynamic conditional correlations (DCC) with graph filtering method of minimum spanning trees (MSTs). Then we investigate dynamics of systemic risk contributions of financial institution. Also we study dynamics of financial institution's local topology structure in the financial network. Finally, we analyze the quantitative relationships between the local topology structure and systemic risk contribution with panel data regression analysis. We find that financial institutions with greater node strength, larger node betweenness centrality, larger node closeness centrality and larger node clustering coefficient tend to be associated with larger systemic risk contributions.

Financial strain and smoking cessation among racially/ethnically diverse smokers.

Science.gov (United States)

Kendzor, Darla E; Businelle, Michael S; Costello, Tracy J; Castro, Yessenia; Reitzel, Lorraine R; Cofta-Woerpel, Ludmila M; Li, Yisheng; Mazas, Carlos A; Vidrine, Jennifer Irvin; Cinciripini, Paul M; Greisinger, Anthony J; Wetter, David W

2010-04-01

We evaluated the influence of financial strain on smoking cessation among Latino, African American, and Caucasian smokers of predominantly low socioeconomic status. Smokers enrolled in a smoking cessation study (N = 424) were followed from 1 week prequit through 26 weeks postquit. We conducted a logistic regression analysis to evaluate the association between baseline financial strain and smoking abstinence at 26 weeks postquit after control for age, gender, race/ethnicity, educational level, annual household income, marital status, number of cigarettes smoked per day, and time to first cigarette of the day. Greater financial strain at baseline was significantly associated with reduced odds of abstinence at 26 weeks postquit among those who completed the study (odds ratio [OR] = 0.77; 95% confidence interval [CI] = 0.62, 0.94; P = .01). There was a significant association as well in analyses that included those who completed the study in addition to those lost to follow-up who were categorized as smokers (OR = 0.78; 95% CI = 0.64, 0.96; P = .02). Greater financial strain predicted lower cessation rates among racially/ethnically diverse smokers. Our findings highlight the impact of economic concerns on smoking cessation and the need to address financial strain in smoking cessation interventions.

FINANCIAL REPORTING IN PUBLIC INSTITUTIONS AND NON-FINANCIAL ENTITIES. SIMILARITIES AND DIFFERENCES

OpenAIRE

Daniela Vitan

2011-01-01

The present paperwork contains issues regarding financial reporting at the public institutions and non – financial entities. The main aspects are regarding the obligation of all entities to present the financial statements, the content of financial statements in public institutions and non-financial entities. Also, is presented the similarities and the differences aspects between financial reporting of these two patrimonial entities.

Financial mathematics

CERN Document Server

Jothi, A Lenin

2009-01-01

Financial services, particularly banking and insurance services is the prominent sector for the development of a nation. After the liberalisation of financial sector in India, the scope of getting career opportunities has been widened. It is heartening to note that various universities in India have introduced professional courses on banking and insurance. A new field of applied mathematics has come into prominence under the name of Financial Mathematics. Financial mathematics has attained much importance in the recent years because of the role played by mathematical concepts in decision - m

The Accounting Network: How Financial Institutions React to Systemic Crisis.

Science.gov (United States)

Puliga, Michelangelo; Flori, Andrea; Pappalardo, Giuseppe; Chessa, Alessandro; Pammolli, Fabio

2016-01-01

The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis. Following this methodological perspective we introduce here the Accounting Network, i.e. the network we can extract through vector similarities techniques from companies' financial statements. We build the Accounting Network on a large database of worldwide banks in the period 2001-2013, covering the onset of the global financial crisis of mid-2007. After a careful data cleaning, we apply a quality check in the construction of the network, introducing a parameter (the Quality Ratio) capable of trading off the size of the sample (coverage) and the representativeness of the financial statements (accuracy). We compute several basic network statistics and check, with the Louvain community detection algorithm, for emerging communities of banks. Remarkably enough sensible regional aggregations show up with the Japanese and the US clusters dominating the community structure, although the presence of a geographically mixed community points to a gradual convergence of banks into similar supranational practices. Finally, a Principal Component Analysis procedure reveals the main economic components that influence communities' heterogeneity. Even using the most basic vector similarity hypotheses on the composition of the financial statements, the signature of the financial crisis clearly arises across the years around 2008. We finally discuss how the Accounting Networks can be improved to reflect the best practices in the financial statement analysis.

The Accounting Network: How Financial Institutions React to Systemic Crisis

Science.gov (United States)

Puliga, Michelangelo; Flori, Andrea; Pappalardo, Giuseppe; Chessa, Alessandro; Pammolli, Fabio

2016-01-01

The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis. Following this methodological perspective we introduce here the Accounting Network, i.e. the network we can extract through vector similarities techniques from companies’ financial statements. We build the Accounting Network on a large database of worldwide banks in the period 2001–2013, covering the onset of the global financial crisis of mid-2007. After a careful data cleaning, we apply a quality check in the construction of the network, introducing a parameter (the Quality Ratio) capable of trading off the size of the sample (coverage) and the representativeness of the financial statements (accuracy). We compute several basic network statistics and check, with the Louvain community detection algorithm, for emerging communities of banks. Remarkably enough sensible regional aggregations show up with the Japanese and the US clusters dominating the community structure, although the presence of a geographically mixed community points to a gradual convergence of banks into similar supranational practices. Finally, a Principal Component Analysis procedure reveals the main economic components that influence communities’ heterogeneity. Even using the most basic vector similarity hypotheses on the composition of the financial statements, the signature of the financial crisis clearly arises across the years around 2008. We finally discuss how the Accounting Networks can be improved to reflect the best practices in the financial statement analysis. PMID:27736865

Financial risk of the biotech industry versus the pharmaceutical industry.

Science.gov (United States)

Golec, Joseph; Vernon, John A

2009-01-01

The biotech industry now accounts for a substantial and growing proportion of total R&D spending on new medicines. However, compared with the pharmaceutical industry, the biotech industry is financially fragile. This article illustrates the financial fragility of the biotech and pharmaceutical industries in the US and the implications of this fragility for the effects that government regulation could have on biotech firms. Graphical analysis and statistical tests were used to show how the biotech industry differs from the pharmaceutical industry. The two industries' characteristics were measured and compared, along with various measures of firms' financial risk and sensitivity to government regulation. Data from firms' financial statements provided accounting-based measures and firms' stock returns applied to a multifactor asset pricing model provided financial market measures. The biotech industry was by far the most research-intensive industry in the US, averaging 38% R&D intensity (ratio of R&D spending to total firm assets) over the past 25 years, compared with an average of 25% for the pharmaceutical industry and 3% for all other industries. Biotech firms exhibited lower and more volatile profits and higher market-related and size-related risk, and they suffered more negative stock returns in response to threatened government price regulation. Biotech firms' financial risks increase their costs of capital and make them more sensitive to government regulations that affect their financial prospects. As biotech products grow to represent a larger share of new medicines, general stock market conditions and government regulations could have a greater impact on the level of innovation of new medicines.

The Accounting Network: How Financial Institutions React to Systemic Crisis.

Directory of Open Access Journals (Sweden)

Michelangelo Puliga

Full Text Available The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis. Following this methodological perspective we introduce here the Accounting Network, i.e. the network we can extract through vector similarities techniques from companies' financial statements. We build the Accounting Network on a large database of worldwide banks in the period 2001-2013, covering the onset of the global financial crisis of mid-2007. After a careful data cleaning, we apply a quality check in the construction of the network, introducing a parameter (the Quality Ratio capable of trading off the size of the sample (coverage and the representativeness of the financial statements (accuracy. We compute several basic network statistics and check, with the Louvain community detection algorithm, for emerging communities of banks. Remarkably enough sensible regional aggregations show up with the Japanese and the US clusters dominating the community structure, although the presence of a geographically mixed community points to a gradual convergence of banks into similar supranational practices. Finally, a Principal Component Analysis procedure reveals the main economic components that influence communities' heterogeneity. Even using the most basic vector similarity hypotheses on the composition of the financial statements, the signature of the financial crisis clearly arises across the years around 2008. We finally discuss how the Accounting Networks can be improved to reflect the best practices in the financial statement analysis.

Financial Economy and Financial System: Basis of Structural Interconnection

OpenAIRE

Khorosheva Olena I.

2014-01-01

The goal of the article lies in identification of grounds of interconnection of the financial economy and financial system. The study was conducted with consideration of main provisions of the theory of finance and concept of financial economy, which is a set of means used in the process of reproduction of finance by their owner for formation and / or maintenance of the own system of values in the viable state. For the first time ever the structure of the financial system is identified as an ...

Financial Literacy and Financial Sophistication in the Older Population

Science.gov (United States)

Lusardi, Annamaria; Mitchell, Olivia S.; Curto, Vilsa

2017-01-01

Using a special-purpose module implemented in the Health and Retirement Study, we evaluate financial sophistication in the American population over the age of 50. We combine several financial literacy questions into an overall index to highlight which questions best capture financial sophistication and examine the sensitivity of financial literacy responses to framing effects. Results show that many older respondents are not financially sophisticated: they fail to grasp essential aspects of risk diversification, asset valuation, portfolio choice, and investment fees. Subgroups with notable deficits include women, the least educated, non-Whites, and those over age 75. In view of the fact that retirees increasingly must take on responsibility for their own retirement security, such meager levels of knowledge have potentially serious and negative implications. PMID:28553191

Financial Literacy and Financial Sophistication in the Older Population.

Science.gov (United States)

Lusardi, Annamaria; Mitchell, Olivia S; Curto, Vilsa

2014-10-01

Using a special-purpose module implemented in the Health and Retirement Study, we evaluate financial sophistication in the American population over the age of 50. We combine several financial literacy questions into an overall index to highlight which questions best capture financial sophistication and examine the sensitivity of financial literacy responses to framing effects. Results show that many older respondents are not financially sophisticated: they fail to grasp essential aspects of risk diversification, asset valuation, portfolio choice, and investment fees. Subgroups with notable deficits include women, the least educated, non-Whites, and those over age 75. In view of the fact that retirees increasingly must take on responsibility for their own retirement security, such meager levels of knowledge have potentially serious and negative implications.

RISK MANAGEMENT WITH FINANCIAL DERIVATIVES: EMPIRICAL EVIDENCE FROM ROMANIAN NON-FINANCIAL FIRMS

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Sorin Gabriel Anton

2016-12-01

Full Text Available Financial risk management has rapidly evolved over the past two decades and has become an indispensable function in many institutions from different area of activities. In the last two decades, as the financial markets have become more and more mature, an increasing number of firms from emerging economies have chosen to use derivatives to hedge financial risks. As a result, risk management with financial derivatives has attracted much attention recently, becoming an important topic in the financial literature. However, we know little about the use of financial derivatives by firms from emerging economies and about the effect of these instruments on firms’ risk and value. The aim of the paper is to provide new insights into the use of financial derivatives for hedging purpose by non-financial firms from emerging markets. We analyzed risk management practices on a sample of 68 non-financial firms listed at Bucharest Stock Exchange (BSE over a long time frame (2001 to 2011. We found that Romanian non-financial firms from our sample are exposed mainly to commodity price risk, currency risk, interest rate risk, and liquidity risk. More than half of the firms in our sample (55.88% publish in their annual reports the goal of risk management process. Our results show that 10.29% of non-financial firms in our sample use financial derivatives to hedge their currency, interest rate or commodity price risks. We also found that the volatility caused by the global financial crisis determined many firms to use financial derivatives over the period 2007-2011. Nevertheless, the use of financial derivatives by Romanian non-financial firms is low relative to values registered for other emerging economies. The most important factors that hindered the use of financial derivatives have been the low liquidity of exchange derivatives markets, high hedging costs, and the lack of risk management expertise. The traditional approach of managing risks individually is

Is Capitalization of Operating Lease Way to Increase of Comparability of Financial Statements Prepared in Accordance with IFRS and US GAAP?

OpenAIRE

Hana Bohušová

2015-01-01

The paper is concerned with an evaluation of possibilities of companies using operating lease and prepared financial statements under IFRS or US GAAP comparison. The data of non-financial companies listed on the Prague Stock Exchange and reporting information on operating lease in accordance with IAS 17 are used. The study presents the impact of operating lease capitalization on companies’ financial statements and financial analysis ratios. The results show a negative impact of operating leas...

A Comparison of the Financial Characteristics of U.S. and European Manufacturing Firms

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Meric Gulser

2016-08-01

Full Text Available Comparing the financial characteristics of firms in different countries and regions has been a popular research topic in finance. In this paper, we compare the financial characteristics of U.S. and European manufacturing firms with the MANOVA (Multivariate Analysis of Variance method and financial ratios. Our findings indicate that the overall financial characteristics of U.S. and European manufacturing firms are significantly different. We find that U.S. manufacturing firms are more profitable and they have less liquidity and bankruptcy risks compared with European manufacturing firms. European manufacturing firms are more efficient in managing their fixed assets. However, U.S. manufacturing firms are more efficient in managing their accounts receivable and total assets. U.S. manufacturing firms are able to achieve significantly higher sales and total assets growth rates compared with European manufacturing firms.

Integrating physical and financial approaches to manage environmental financial risk

Science.gov (United States)

Characklis, Gregory; Meyer, Eliot; Foster, Benjamin

2017-04-01

Physical and/or engineered solutions have long been used to manage risks associated with adverse environmental events. Examples include reservoirs as a tool for mitigating drought-related supply risk, levees for managing flood risk and dredging of inland waterways to ensure navigability during low flow periods. These measures can reduce many types of risk (e.g., loss of life), but are often employed as a means of protecting against financial losses. When the focus is on managing environmental financial risk, physical solutions can be effective, but also costly. In many cases, non-physical tools can provide a less expensive means of managing financial risk, with these often taking the form of financial instruments such as hedging contracts, contingency funds or insurance. Some of these instruments, such as flood insurance, are widely available, but historically many environmental financial risks have been managed primarily (or solely) via physical solutions without much consideration of alternatives, thereby opening opportunities for innovation in developing financial solutions. Recent research has demonstrated that financial instruments can play a significant role in managing drought-related financial risk in sectors as diverse as water utilities, energy generation and inland navigation. Nonetheless, this work has largely considered the use of these instruments within systems in which physical solutions are already in place (but failing to achieve desired performance). The next step in the evolution of managing environmental financial risk involves developing methods for designing risk management strategies that do not assume an established physical system. Here the goal is to identify the relative role that physical solutions and financial instruments should play as they are integrated into a comprehensive risk management strategy. This is not a straightforward challenge as one approach reduces the risk of financial losses and the other redistributes those losses

Measuring Financial Cycles in a Model-Based Analysis: Empirical Evidence for the United States and the Euro Area

NARCIS (Netherlands)

Galati, E.B.G.; Hindrayanto, A.I.W.; Koopman, S.J.; Vlekke, M.

2016-01-01

We adopt an unobserved components time series model to extract financial cycles for the United States and the five largest euro area countries over the period 1970-2014. We find that financial cycles can parsimoniously be estimated by house prices and total credit or the credit-to-GDP ratio. We show

Financial Risk Management

OpenAIRE

Catalin-Florinel Stanescu; Laurentiu Mircea Simion

2011-01-01

Concerns about the financial risk is increasing. In this climate, companies of all types and sizes want a robust framework for financial risk management to meet compliance requirements, contribute to better decision making and increase performance. Financial risk management professionals working with financial institutions and other corporate clients to achieve these objectives.

Future of European Financial Supervision, Towards a European System of Financial Supervisors

NARCIS (Netherlands)

Arons, T.M.C.

The 2008 financial crisis made clear the shortcomings in the European structure of financial supervision. In the cur­rent system of financial supervision the financial supervi­sor of the home Member State is in principle the only autho­rity entitled to supervise financial institutions even in case

78 FR 54359 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing...

Science.gov (United States)

2013-09-03

... Consolidation Process). For convenience, the Incorporated NYSE Rules are hereinafter referred to as the NYSE...; \\21\\ and (7) delete Appendix 1, Financial Ratios and Formulas Reference, which provided a sampling of...

Financial Stress, Self-Efficacy, and Financial Help-Seeking Behavior of College Students

Science.gov (United States)

Lim, HanNa; Heckman, Stuart J.; Letkiewicz, Jodi C.; Montalto, Catherine P.

2014-01-01

Financial stress and self-efficacy are examined in relationship to college students' financial help-seeking behavior utilizing Grable and Joo's (1999) framework. A cognitive approach is taken by focusing on the moderating role of financial self-efficacy on the relationship between financial stress and financial help-seeking. Data from the 2010…

Financial Literacy and Long- and Short-Term Financial Behavior in Different Age Groups

Science.gov (United States)

Henager, Robin; Cude, Brenda J.

2016-01-01

The purpose of this study was to examine the relationship between financial literacy and financial behaviors among various age groups. Financial literacy was measured in three ways: objective financial knowledge, subjective financial knowledge or confidence, and subjective financial management ability. The age groups were 18-24, 25-34, 35-44,…

Clarifying the relationship between nonradiologists' financial interest in imaging and their utilization of imaging.

Science.gov (United States)

Bhargavan, Mythreyi; Sunshine, Jonathan H; Hughes, Danny R

2011-11-01

Several limitations and deficiencies have been identified in existing studies of physician financial interest in imaging that show financial interest is associated with more imaging. We conducted extensive quantitative analysis of seven deficiencies that have been identified. Using Symmetry's Episode Grouper, we created episodes of care from all the 2004-2007 health care claims for a random 5% sample of Medicare fee-for-service beneficiaries. We compared utilization of imaging in nonhospital episodes having a nonradiologist physician who had a financial interest in imaging with utilization in episodes with no such physician. We studied 23 combinations of medical conditions with imaging modalities commonly used for these conditions. Across four different definitions of financial interest and the 23 combinations, the relative probability (risk ratio) of imaging was uniformly higher for episodes of physicians with a financial interest, predominantly at p financial interest used or the definition of the physician deemed responsible for the imaging. Controlling for patient characteristics, illness severity, and physician specialty likewise had little effect. Physicians who had acquired a financial interest averaged a 49% increase in the odds of imaging relative to physicians who had not. Physicians with a financial interest in an imaging modality used other modalities more than did physicians without a financial interest in the index modality. The Deficit Reduction Act's 2007 payment reductions had little effect. A financial interest in imaging is associated with higher utilization, probably causally. Limiting nonradiologists' financial interest in imaging may be desirable.

Econometric analysis on the impact of macroeconomic variables toward financial performance: A case of Malaysian public listed logistics companies

Science.gov (United States)

Zakariah, Sahidah; Pyeman, Jaafar; Ghazali, Rahmat; Rahman, Ibrahim A.; Rashid, Ahmad Husni Mohd; Shamsuddin, Sofian

2014-12-01

The primary concern of this study is to analyse the impact against macroeconomic variables upon the financial performance, particularly in the case of public listed logistics companies in Malaysia. This study incorporated five macroeconomic variables and four proxies of financial performance. The macroeconomic variables selected are gross domestic product (GDP), total trade (XM), foreign direct investment (FDI), inflation rate (INF), and interest rate (INT). This study is extended to the usage of ratio analysis to predict financial performance in relation to the changes upon macroeconomic variables. As such, this study selected four (4) ratios as proxies to financial performance, which is Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Asset (ROA), Return on Equity (ROE). The findings of this study may appear non-controversial to some, but it resulted in the following important consensus; (1) GDP is found to be highly impacting NPM and least of ROA, (2) XM has high positive impact on OPM and least on ROE, (3) FDI appear to have insignificant impact towards NPM, and (4) INF and INT show similar negative impact on financial performance, precisely highly negative on OPM and least on ROA. Such findings also conform to the local logistic industry settings, specifically in regards to public listed logistics companies in relation to its financial performance.

Simultaneous Use of the Financial Literacy Level and the Financial Inclusion Degree as a Result of Financial Education Efficiency in Visegrad Group Countries

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Bożena Frączek

2017-02-01

Full Text Available The appropriate level of financial knowledge and the degree of financial integration needed in today's financialized world. This paper studies the level of financial literacy and the degree of financial inclusion among the students who study economic fields. These students are a special target group - very important for future development of financial markets. They are not only the future participants, but also the potential animators and creators of the financial market as well as the future financial advisors. The research sample comes from Visegrad Group countries (4V Countries, as the representatives from Central and Eastern Europe countries, where the level of financial literacy and degree of financial inclusion seems to be lower in comparison to the West European Countries. The research also contributes to knowledge in the area of expanding the methods of assessments of efficiency of financial education. The Authors decided to verify the new assessment of effectiveness of financial education. It will be conducted by a separate and simultaneous assessment of financial literacy and financial inclusion. The main results of research confirm the very low level of financial literacy and financial inclusion of young future economists in 4V Countries in both groups: starting and finishing the professional financial education. In addition, examining the degree of financial inclusion among the students who at the same time are educated at the basic level confirms the much lower level of informed financial inclusion.

Personal Financial Literacy and Financial Planning in Klang Valley, Malaysia

OpenAIRE

Hoe, Siew Yee

2008-01-01

The financial planning industry in Malaysia is still very much at its inception stage. Currently, regulators- Bank Negara Malaysia and Securities Commission of Malaysia have started to regulate the industry by imposing requirements for whoever wanted to venture into the financial planning profession. The title of ‘Financial Planner’ is now highly legalized by the authorities. Empirical studies have been done by overseas scholars and found that the lack of personal financial literacy has been ...

Financial Literacy, Confidence and Financial Advice Seeking

NARCIS (Netherlands)

Kramer, Marc M.

2016-01-01

We find that people with higher confidence in their own financial literacy are less likely to seek financial advice, but no relation between objective measures of literacy and advice seeking. The negative association between confidence and advice seeking is more pronounced among wealthy households.

Impact Of Merger And Acquisition On Debt Management Ratio: A Case Study In Malaysian Banking Sectors

OpenAIRE

Mohammad Talha; Abdullah Sallehhuddin

2011-01-01

This study based on efficiency theory of shareholders wealth maximization of acquisition principle attempted to investigate the debt management ratio of ten Malaysian anchor banks after undergoing mega merger and acquisition program which was completed in the year of 2000. As efficiency theory consists of three elements that are financial synergy, operation synergy and managerial synergy, the study will primarily focus its analysis on financial synergy (debt management). Using accounting tech...

Relationship between risk and transparency in the financial statements of professional services entities

Directory of Open Access Journals (Sweden)

Mirela Elena Nichita

2016-05-01

Full Text Available The purpose of financial reports is to provide useful information to users; the utility of information is defined through the qualitative characteristics (fundamental and enhancing. The financial crisis emphasized the limits of financial reporting, which has been unable to prevent investors about the risks they were facing. Due to the current changes in business environment, managers been highly motivated to rethink and improve the risk governance philosophy, processes and methodologies. The lack of quality, timely data and adequate systems to capture, report and measure the right information across the organization are fundamental challenges to implementing and sustaining all aspects of effective risk management. Starting from ‘80s, the investors have become more interested in narratives (from the Notes to financial statements, than in primary reports (which disclose financial position and performance. In this research, we aim to identify whether the accounting services entities disclose risk information in their financial statements. The research will use a regression model for the assessment of the relationship between the size, profitability, leverage ratios and risk reporting by the accounting and taxation services providers in Romania during the period 2009-2013

Testing the Informational Efficiency on the Romanian Financial Market

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Bogdan Dima

2006-01-01

Full Text Available The classical models of portfolio selection could not be applied on a market were the efficient market hypothesis is not valid (at least in a "weak" sense. The aim of this paper is to enlighten the difficulties of portfolio construction in a financial market with institutional and structural deficiencies, like the Romanian one, and to propose an alternative approach to the problem. The main features of our analysis are: 1 an empirical test for the efficient market hypothesis in the Romanian financial market case; 2 a critical distinction between the concept of "risk" and the concept of "incertitude"; 3 the use of the individual yield/risk ratio versus the market one as a selection variable; 4 the renouncement at the use in the selection procedure of an "non-risky" asset; 5 an example of the proposed selection procedure. The output of this approach could be resumed by the thesis that, even in a situation when the financial market is affected by severe disfunctions, there is a possibility to build an "optimal" portfolio based on a yield-risk arbitrage inside an efficiency frontier and to obtain a "good" schema of an financial placement, in spite of the limited possibilities for a efficient portfolio management.

Testing the Informational Efficiency on the Romanian Financial Market

Directory of Open Access Journals (Sweden)

Aurora Murgea

2006-03-01

Full Text Available The classical models of portfolio selection could not be applied on a market were the efficient market hypothesis is not valid (at least in a “weak” sense. The aim of this paper is to enlighten the difficulties of portfolio construction in a financial market with institutional and structural deficiencies, like the Romanian one, and to propose an alternative approach to the problem. The main features of our analysis are: 1 an empirical test for the efficient market hypothesis in the Romanian financial market case; 2 a critical distinction between the concept of “risk” and the concept of “incertitude”; 3 the use of the individual yield/risk ratio versus the market one as a selection variable; 4 the renouncement at the use in the selection procedure of an “non-risky” asset; 5 an example of the proposed selection procedure. The output of this approach could be resumed by the thesis that, even in a situation when the financial market is affected by severe disfunctions, there is a possibility to build an “optimal” portfolio based on a yield-risk arbitrage inside an efficiency frontier and to obtain a “good” schema of an financial placement, in spite of the limited possibilities for a efficient portfolio management.

Financial Adaptation among College Students: Helping Students Cope with Financial Strain

Science.gov (United States)

Serido, Joyce; Shim, Soyeon; Xiao, Jing Jian; Tang, Chuanyi; Card, Noel A.

2014-01-01

This study examines the impact of the recent financial crisis on co-occurring patterns of change in financial strain and financial coping behaviors of college students (N = 748) using two-timed, longitudinal data collected prior to the 2008 financial crisis and again one year later. Using a stress and coping framework, we found that different…

Financial Services Industry

Science.gov (United States)

2006-01-01

www.investopedia.com/features/industryhandbook/banking.asp Mishkin , F. & Eakins, S. (2003). Financial Markets + Institutions (4th ed.). Boston...purposes, participants interact in financial markets for securities, bonds, futures and options, utilizing financial intermediaries such as retail and...nations. U.S. participants, likewise, may also choose to participate in foreign financial institutions in order to gain access to or operate in

Contribution of Fundamentalist Financial Analysis to Credit Concession: A Case Study in a Financial Institution in Brazil

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Lucíola Aor Vasconcelos

2014-04-01

Full Text Available This paper has the purpose examine the ability to predict when the application of fundamental financial analysis for the granting of personal loans in relation to the default prediction of Brazilian companies listed on the BM&FBovespa through a case study of a financial institution. Our sample consists of firms listed on the Brazilian stock exchange that were included in the credit portfolio of a financial institution in the period 2008-2012. Based on a discriminant analysis, five accounting indicators were selected for having the highest predictive capacity concerning default events: Net Working Capital, Asset Turnover, Debt Ratio, Bovespa’s index participation and the Retained Earnings’ Index. Afterwards, macroeconomic variables GDP and Base Interest Rate, as well as accounting indicators weighted by industry sector and estimated by means of vector autoregressive models were included to a logit model. Statistical tests have shown that the estimation by means of autoregressive models is relevant only when accounting variables are used but not when the macroeconomic variables are included. The results indicate that although the macroeconomic variables have not shown to be individually relevant in the estimation of default events in the proposed model, the model with both accounting variables and macroeconomic variables has proved to be more robust, with a success rate of 97.3% for the latter against 95.3% for the former.

Numeracy, Financial Literacy, and Financial Decision-Making

Directory of Open Access Journals (Sweden)

Annamaria Lusardi

2012-01-01

Full Text Available Financial decisions, be they related to asset building or debt management, require the capacity to do calculations, including some complex ones. But how numerate are individuals, in particular when it comes to calculations related to financial decisions? Studies and surveys implemented in both the United States and in other countries that are described in this paper show the level of numeracy among the population to be very low. Moreover, lack of numeracy is not only widespread but is particularly severe among some demographic groups, such as women, the elderly, and those with low educational attainment. This has potential consequences for individuals and for society as a whole because numeracy is found to be linked to many financial decisions. As we shift responsibility from governments and employers onto individuals, it is increasingly important to find ways to equip people with the skills that are necessary to make savvy financial decisions.

The Impact of the Dodd-Frank Act on Financial Stability and Economic Growth

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Martin Neil Baily

2017-01-01

Full Text Available This article assesses the benefits and costs of key provisions of the Dodd-Frank Act that strengthened regulation following the financial crisis. The provisions are placed into five groupings: clear wins, clear losses, costly tradeoffs, unfinished business, and too soon to tell. Clear wins include higher prudential standards, including for capital; the single-point-of-entry resolution authority; creation of the Consumer Financial Protection Bureau; and greater transparency and oversight of derivatives. Clear losses are restrictions on Federal Reserve emergency lending authority and forcing the Federal Deposit Insurance Corporation to obtain permission from Congress before providing temporary liquidity guarantees. Costly tradeoffs are the Volcker Rule and the Lincoln Amendment. Unfinished business includes regulatory consolidation and more independence for the Financial Stability Oversight Council and the Office of Financial Research. Too soon to tell are requirements and standards for leverage ratios, capital buffers, stress testing, and liquidity requirements.

The Financial Planning and Financial Literacy of ex-Malaysia Indonesian Migrant Workers

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Rayenda Khresna Brahmana

2016-10-01

Full Text Available Indonesian migrant workers (IMW face life difficulties after returning back to Indonesia. This is a contrary condition considering their contribution to their home family in Indonesia while working abroad. Literature mentions that their financial planning is the root of the poverty of ex-IMW. Therefore, this research adopts literacy theory to explain this phenomenon. This research conducted a survey among 548 ex-IMW and measures their financial literacy and financial planning. This research also maps their asset ownership to examine the relationship between financial literacy and asset ownership. Overall, this research documents that financial literacy contributes statistically significantly and positively to financial planning. Furthermore, this research shows that asset ownership is closely related to financial literacy. In a nutshell, this research concludes that it is important for migrant workers to have good knowledge of financial issues, because having good financial literacy helps the migrant workers to plan their finance and budget much better, thereby helping them to avoid the poverty trap. Therefore, policymakers such as migrant worker authorities and/or Indonesian embassies abroad have to institute financial education programmes for migrant workers before they return to Indonesia.

Financial Literacy and Financial Behaviour: Experimental Evidence from Rural Rwanda

NARCIS (Netherlands)

Sayinzoga, Aussi; Bulte, E.H.; Lensink, Robert

We organise a field experiment with smallholder farmers in Rwanda to measure the impact of financial literacy training on financial knowledge and behaviour. The training increased financial literacy of participants, changed their savings and borrowing behaviour and had a positive effect on the new

Is the Development of WIG Index Determined by Certain Macroeconomic and Financial Factors?

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Krzysztof DRACHAL

2016-06-01

Full Text Available The aim of this paper is to present an analysis whether certain financial ratios can have a significant impact on the development of a stock exchange index. In particular the benchmark stock exchange index is considered, as well as, the selected ratios are considered as the average ones for the whole economy. Quarterly data between 2005 and 2015 were analyzed for the Warsaw Stock Exchange (Poland.

Large Retailers’ Financial Services

OpenAIRE

Risso, Mario

2010-01-01

Over the last few years, large retailers offering financial services have considerably grown in the financial services sector. Retailers are increasing the wideness and complexity of their offer of financial services. Large retail companies provide financial services to their customers following different strategic ways. The provision of financial services in the retailers offer is implemented in several different ways related to the strategies, the structures and the degree of financial know...

FORMATION OF FINANCIAL RESOURCES OF ENTERPRISES IN CONDITIONS OF FINANCIAL INSTABILITY

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Veronika Dmytrovska

2017-08-01

Full Text Available The success of entrepreneurial activity depends on the state of the financial resources of the entity and the choice of the strategy of financial resources forming. In the article  the specification of socio-economic nature of the financial resources of enterprises  is analyzed and proved , their classification under the relevant characteristics and peculiarities of the financial resources formation of businesses in a rapidly changing economy in the context of sustainable economic state development are given. Keywords: financial resources, assets, cash funds, sustainable development

Patient attitudes about financial incentives for diabetes self-management: A survey.

Science.gov (United States)

Blondon, Katherine S

2015-06-10

To study the acceptability of incentives for behavior changes in individuals with diabetes, comparing financial incentives to self-rewards and non-financial incentives. A national online survey of United States adults with diabetes was conducted in March 2013 (n = 153). This survey was designed for this study, with iterative testing and modifications in a pilot population. We measured the demographics of individuals, their interest in incentives, as well as the perceived challenge of diabetes self-management tasks, and expectations of incentives to improve diabetes self-management (financial, non-financial and self-rewards). Using an ordered logistic regression model, we assessed the association between a 32-point score of the perceived challenge of the self-management tasks and the three types of rewards. Ninety-six percent of individuals were interested in financial incentives, 60% in non-financial incentives and 72% in self-rewards. Patients were less likely to use financial incentives when they perceived the behavior to be more challenging (odds ratio of using financial incentives of 0.82 (95%CI: 0.72-0.93) for each point of the behavior score). While the effectiveness of incentives may vary according to the perceived level of challenge of each behavior, participants did not expect to need large amounts to motivate them to modify their behavior. The expected average amounts needed to motivate a 5 lb weight loss in our population and to maintain this weight change for a year was $258 (interquartile range of $10-100) and $713 (interquartile range of $25-250) for a 15 lb weight loss. The difference in mean amount estimates for 5 lb and 15 lb weight loss was significant (P < 0.001). Individuals with diabetes are willing to consider financial incentives to improve diabetes self-management. Future studies are needed to explore incentive programs and their effectiveness for diabetes.

Pengaruh Indikator Rasio Keuangan Perusahaan Price Earning Ratio (PER dan Price to Book Value (PBV terhadap Return Portfolio Saham di Bursa Efek Jakarta

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Barbara Gunawan

2016-02-01

Full Text Available This emerged during a kind of perception that the financial statements do not quite believable as the basis of capital market investment decisions. Using the results of the ratio of the financial statements as an object to be examined, the study will look at the extent of the influence indicator Price Earning Ratio and Price to Book Value of the Return Portfolio Shares on the Jakarta Stock Exchange. The results showed that of the portfolio is formed, it turns out the low indicators of Price Earning Ratio and Price to Book Value does not affect the portfolio return.

Comparison of the financial performance of Islamic and conventional bank in Malaysia during and after economic crisis

Science.gov (United States)

Kadir, Norhidayah A.; Jaffar, Aidatullaini; Abdullah, Nur Lina; Harun, Nurzalina

2013-09-01

This paper is a continuation of our former work. In this paper, we compare the financial performance of the two banking systems that exist in Malaysia over two periods of time, during economic crisis (1997-1999) and after economic crisis (2001-2003). In order to see the conventional as well as Islamic bank's performance over these two periods of time, the study uses 10 financial ratios which are broadly categorized into 4 groups: (a) profitability ratios; (b) liquidity ratios; (c) risk and solvency ratios; and (d) efficiency ratios. Next, the study used T-test in determining the significance of the differential performance of the two banks over two periods of time. By using inter-bank comparison, the study found that, conventional bank has better performance, efficient, more profitable and has greater risk as compared to Islamic bank. However, in terms of utilizing asset, Islamic bank is better than conventional bank. As an overall, conventional bank is better in much aspect due to the longer history and experience in the industry than Islamic bank that start their operation in 1983.

Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case

OpenAIRE

H.L. Vacher

2014-01-01

Berman, Karen and Knight, Joe, with John Case. Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers, (Boston MA: Harvard Business Press, 2008). 285 pp. ISBN 978-1-4221-1915-0. From “The art of finance (and why it matters)” (Part One) through “Creating a financially intelligent company” (Part Eight), Financial Intelligence for Entrepreneurs is an engaging explanation and appreciation of financial statements and financial ratios. Short, easily digested cha...

Financial Globalization and Inequality

OpenAIRE

Kunieda, Takuma

2008-01-01

This paper investigates how financial globalization and financial development affect income inequality within a country. We demonstrate that when a country is financially closed to the world market, the Gini coefficient is monotonically decreasing with respect to the degree of financial development, whereas when a country becomes so small due to financial globalization that financial development in the country does not affect the world interest rate, the Gini coefficient is monotonically incr...

Financial literacy: an interface between financial information and ...

African Journals Online (AJOL)

D.G. Gouws is in the School of Financial Management Sciences, University of Pretoria, and Ms ... connection between the financial numbers and the real business world context. ...... The Origin of Wealth: Evolution, Complexity, and the Radical.

Determinants of capital structure and financial crisis impact: evidence

OpenAIRE

Proença, Pedro Miguel Correia

2012-01-01

Mestrado em contabilidade The objectives of this empirical work are to investigate the determinants of Portuguese SMEs capital structure, evaluate whether and how the impacts of those determinants affect the debt ratios and examine the effects of financial crisis and industry on Portuguese SMEs capital structure. The sample used considers the period 2007-2010, resulting in 12.857 Portugues e SMEs per year observations. R...

Inmate Perceptions of Financial Education Needs: Suggestions for Financial Educators

Science.gov (United States)

Call, Lindsay Larson; Dyer, W. Justin; Wiley, Angela R.; Day, Randal D.

2013-01-01

Recently, national attention has turned to the need for increased financial education, particularly for low-income populations. Incarcerated individuals represent a growing low-income group with unique needs that could likely benefit from financial education. However, few studies have examined the specific financial education needs of inmates,…

Financial assurances

International Nuclear Information System (INIS)

Paton, R.F.

1990-01-01

US Ecology is a full service waste management company. The company operates two of the nation's three existing low-level radioactive waste (LLRW) disposal facilities and has prepared and submitted license applications for two new LLRW disposal facilities in California and Nebraska. The issue of financial assurances is an important aspect of site development and operation. Proper financial assurances help to insure that uninterrupted operation, closure and monitoring of a facility will be maintained throughout the project's life. Unfortunately, this aspect of licensing is not like others where you can gauge acceptance by examining approved computer codes, site performance standards or applying specific technical formulas. There is not a standard financial assurance plan. Each site should develop its requirements based upon the conditions of the site, type of design, existing state or federal controls, and realistic assessments of future financial needs. Financial assurances at U.S. Ecology's existing sites in Richland, Washington, and Beatty, Nevada, have been in place for several years and are accomplished in a variety of ways by the use of corporate guarantees, corporate capital funds, third party liability insurance, and post closure/long-term care funds. In addressing financial assurances, one can divide the issue into three areas: Site development/operations, third party damages, and long-term care/cleanup

RATIONAL FINANCIAL BEHAVIOR OF POPULATION AS A PROSPERITY FACTOR OF FINANCIAL SECTOR

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Sushko E. Yu.

2014-12-01

Full Text Available The rapid sophistication of the Russian financial system inevitably leads not only to the emergence of great opportunities for the development of the financial sector, as expressed in the opening of the new financial institutions or new financial products and services, but also a huge financial risks for companies of this sector, as expressed in the increase of population’s debts and the decline of trust in the financial sector. That is why special tools used in making management decisions about the development of the financial sector in a particular region acquires greater significance. On the basis of statistical data over the Volgograd region the author developed the model of initial attractiveness estimation of an area for business entities, reflecting the level of financial literacy and using the data from open sources of information. The article provides a brief introduction to the development of the methodology: from a theoretical substantiation of the original list of variables for analysis up to determine the regression equation. Obtained regression model can be used by entrepreneurs in case of expansion of their financial business to new areas and by regional governance whose aim is to increase the level of financial literacy.

Financial Planning and Financial Instruments: 2013 in Review, 2014 in Prospect

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Mark Brimble

2013-09-01

Full Text Available The Global Financial Crisis (GFC; changes in regulation; issues in public perception and trust have contributed to a troubled 2013 for financial planners. As financial planning and wealth management providers seek to bolster their professional status, the Financial Planning Education Council’s National Curriculum and Accreditation Framework and ASIC’s minimum training requirements are also a space to watch. In prospect, 2014 will offer opportunities and challenges in the form of a changed government; regulatory changes; accreditation challenges and the hope of the recruitment of strong financial planning and wealth management professionals for the future.

Financial Statements in Providing Financial Security of Agricultural Enterprises

OpenAIRE

Olha Vdovenko

2014-01-01

In conditions of severe market competition and economic turmoil financial security of agricultural businesses largely depends on the effectiveness of management decisions, reporting being the information support to ensure such decision making. Thus, the practice of preparing accounting figures and their adjustment has a direct effect on agricultural businesses financial security. Having been generalized at the industry level, statistical and financial statements are used for the development o...

A Financial Literacy Measure: Gendering and Contextualising Financial Technicalities

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Asta Zokaityte

2016-03-01

Full Text Available This article analyses the relationship between law, gender, and finance, with a particular focus on gender inequalities in the financial literacy measure which was constructed by the Organisation for Economic Cooperation and Development (OECD. It seeks to trouble predominant claims about financial literacy as an effective, ‘edu-regulatory’ policy to address gender inequalities in the financial services market. The article suggests that instead of acting as a neutral assessment of people’s financial literacy, the measure, in fact, embodies gendered assumptions about finance and financial practices. The measure presents a financial world in abstract terms and fails to account for different contexts within which financial decisions are made. The article exposes the measure’s problematic deployment of the literacy/illiteracy binary in thinking about financial gender inequalities. Rather than being attentive to the ways in which gender inequalities are produced in financial markets, the OECD measure misattributes these to irrational financial behaviour, and further reproduces the marginalisation of women in the global financial market. Este artículo analiza la relación entre derecho, género y finanzas, realizando un enfoque particular en las desigualdades de género existentes en el estudio sobre los conocimientos financieros que elaboró la Organización para la Cooperación y el Desarrollo Económico (OCDE. Busca contrastar las afirmaciones dominantes sobre los conocimientos financieros como una política efectiva, “edu-reguladora” para abordar las desigualdades de género en el mercado de servicios financieros. El artículo sugiere que, en lugar de realizar una evaluación neutral de los conocimientos financieros de las personas, la medida plasma asunciones de género sobre las finanzas y las prácticas financieras. El estudio presenta un mundo financiero en términos abstractos y no tiene en cuenta los diferentes contextos en los

Mapping Systemic Risk: Critical Degree and Failures Distribution in Financial Networks.

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Matteo Smerlak

Full Text Available The financial crisis illustrated the need for a functional understanding of systemic risk in strongly interconnected financial structures. Dynamic processes on complex networks being intrinsically difficult to model analytically, most recent studies of this problem have relied on numerical simulations. Here we report analytical results in a network model of interbank lending based on directly relevant financial parameters, such as interest rates and leverage ratios. We obtain a closed-form formula for the "critical degree" (the number of creditors per bank below which an individual shock can propagate throughout the network, and relate failures distributions to network topologies, in particular scalefree ones. Our criterion for the onset of contagion turns out to be isomorphic to the condition for cooperation to evolve on graphs and social networks, as recently formulated in evolutionary game theory. This remarkable connection supports recent calls for a methodological rapprochement between finance and ecology.

Mapping Systemic Risk: Critical Degree and Failures Distribution in Financial Networks.

Science.gov (United States)

Smerlak, Matteo; Stoll, Brady; Gupta, Agam; Magdanz, James S

2015-01-01

The financial crisis illustrated the need for a functional understanding of systemic risk in strongly interconnected financial structures. Dynamic processes on complex networks being intrinsically difficult to model analytically, most recent studies of this problem have relied on numerical simulations. Here we report analytical results in a network model of interbank lending based on directly relevant financial parameters, such as interest rates and leverage ratios. We obtain a closed-form formula for the "critical degree" (the number of creditors per bank below which an individual shock can propagate throughout the network), and relate failures distributions to network topologies, in particular scalefree ones. Our criterion for the onset of contagion turns out to be isomorphic to the condition for cooperation to evolve on graphs and social networks, as recently formulated in evolutionary game theory. This remarkable connection supports recent calls for a methodological rapprochement between finance and ecology.

Determinants of small firm debt ratios: an analysis of retail panel data

NARCIS (Netherlands)

D. van der Wijst (Nico); A.R. Thurik (Roy)

1993-01-01

textabstractIn this paper, the relevance of some debt ratio determinants from the recent theory of finance is empirically investigated in a small business sector. The data used in this study consist of average financial data of 27 shoptypes in 20 different years, covering a period of 24 years. The

Financial Statements

International Development Research Centre (IDRC) Digital Library (Canada)

Financial Statements and accompanying notes provided on .... to good governance principles. there is the risk that ...... responsibilities of the centre's internal auditor includes reviewing internal controls, including accounting and financial.

Assessing the Liquidity of Firms: Robust Neural Network Regression as an Alternative to the Current Ratio

Science.gov (United States)

de Andrés, Javier; Landajo, Manuel; Lorca, Pedro; Labra, Jose; Ordóñez, Patricia

Artificial neural networks have proven to be useful tools for solving financial analysis problems such as financial distress prediction and audit risk assessment. In this paper we focus on the performance of robust (least absolute deviation-based) neural networks on measuring liquidity of firms. The problem of learning the bivariate relationship between the components (namely, current liabilities and current assets) of the so-called current ratio is analyzed, and the predictive performance of several modelling paradigms (namely, linear and log-linear regressions, classical ratios and neural networks) is compared. An empirical analysis is conducted on a representative data base from the Spanish economy. Results indicate that classical ratio models are largely inadequate as a realistic description of the studied relationship, especially when used for predictive purposes. In a number of cases, especially when the analyzed firms are microenterprises, the linear specification is improved by considering the flexible non-linear structures provided by neural networks.

Emergence Corporate Financial Distressin Emerging Market: Empirical Evidence from Indonesia Stock Exchange(IDX 2004-2008

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Koes Pranowo

2011-11-01

Full Text Available Normal 0 false false false MicrosoftInternetExplorer4 st1\\:*{behavior:url(#ieooui } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} Financial recovery is the most difficult in financial management. Therefore, this is important to study how a company in financially-distress can survive to rise up to a healthy financial condition (emergence financial distress. The research consists of 200 non financial companies which are listed on Indonesia Stock Exchange (IDX for the period of 2004-2008. This study focuses on management of working capital. How a company fulfill its current liabilities, and its sources in current assets which shall be cashed at the short term period. By using Multinomial logit, we analyzed the probability a financially-distress company rise up to emergence financial distress or stay of the status of financial distress and what are financial indicators affect to a company in the status of Non Financial Distress tend to Financial Distress. Thus, the important thing is to determine financial ratios which can be an indicator to determine of emergence financial distress. We find a positive relationship between Profit, efficiency and emergence financial distress and a negative relationship between leverage and emergence financial distress.   Keywords: Emergence Financial Distress, Indonesia Stock Exchange (IDX, Multinomial Logit JEL Classification Codes: G 3

Financial Planning and Financial Instruments: 2013 in Review, 2014 in Prospect

OpenAIRE

Mark Brimble; Ciorstan Smark

2013-01-01

The Global Financial Crisis (GFC); changes in regulation; issues in public perception and trust have contributed to a troubled 2013 for financial planners. As financial planning and wealth management providers seek to bolster their professional status, the Financial Planning Education Council’s National Curriculum and Accreditation Framework and ASIC’s minimum training requirements are also a space to watch. In prospect, 2014 will offer opportunities and challenges in the form of ...

Volatility in financial markets: The impact of the global financial crisis

OpenAIRE

Valls Ruiz, Natàlia

2014-01-01

This dissertation focuses on volatility in financial markets, with a special concern for: (i) volatility transmission between different financial markets and asset categories and, (ii) the effect of macroeconomic announcements on the returns, volatility and correlation of stock markets. These issues are analysed taking into account the phenomenon of asymmetric volatility and incorporating the period of financial turmoil caused by the Global Financial Crisis. The study focuses the attention on...

The role of 'financial myths' in financial crises

OpenAIRE

Eric S. Rosengren

2011-01-01

Remarks by Eric S. Rosengren, President and Chief Executive Officer, Federal Reserve Bank of Boston, at the Boston University conference on The State of Financial Reform (panel on Lessons Learned from the Global Financial Meltdown), February 28, 2011, Boston, Massachusetts

Improving Financial Literacy : case Study of Financial Education in Schools in Estonia

OpenAIRE

Rabtsinski, Deniss

2010-01-01

The thesis discusses the problem of low financial literacy levels that people have in today's world and how financial literacy levels can be improved through school education. It is identified that financial literacy is a complex problem requiring a complex solution (which is yet to be discovered). Financial education can only be part of this complex solution. Even so, financial education encounters similar problems as traditional education: the decay of knowledge and effective retention of l...

The Effects of Financial Education and Networks on Business Students' Financial Literacy

Science.gov (United States)

Chung, Yunhyung; Park, Youngkyun

2014-01-01

This study investigates the joint effects of financial education and educational networks on students' financial literacy. With a sample (N = 105) of senior students in a business college, the study finds that not only financial education, but also strong networks with professors, are positively related to the financial literacy of business…

Financial disincentives? A three-armed randomised controlled trial of the effect of financial Incentives  in Diabetic Eye Assessment  by Screening (IDEAS) trial.

Science.gov (United States)

Judah, Gaby; Darzi, Ara; Vlaev, Ivo; Gunn, Laura; King, Derek; King, Dominic; Valabhji, Jonathan; Bicknell, Colin

2018-05-23

Conflicting evidence exists regarding the impact of financial incentives on encouraging attendance at medical screening appointments. The primary aim was to determine whether financial incentives increase attendance at diabetic eye screening in persistent non-attenders. A three-armed randomised controlled trial was conducted in London in 2015. 1051 participants aged over 16 years, who had not attended eye screening appointments for 2 years or more, were randomised (1.4:1:1 randomisation ratio) to receive the usual invitation letter (control), an offer of £10 cash for attending screening (fixed incentive) or a 1 in 100 chance of winning £1000 (lottery incentive) if they attend. The primary outcome was the proportion of invitees attending screening, and a comparative analysis was performed to assess group differences. Pairwise comparisons of attendance rates were performed, using a conservative Bonferroni correction for independent comparisons. 34/435 (7.8%) of control, 17/312 (5.5%) of fixed incentive and 10/304 (3.3%) of lottery incentive groups attended. Participants who received any incentive were significantly less likely to attend their appointment compared with controls (risk ratio (RR)=0.56; 95% CI 0.34 to 0.92). Those in the probabilistic incentive group (RR=0.42; 95% CI 0.18 to 0.98), but not the fixed incentive group (RR=1.66; 95% CI 0.65 to 4.21), were significantly less likely to attend than those in the control group. Financial incentives, particularly lottery-based incentives, attract fewer patients to diabetic eye screening than standard invites in this population. Financial incentives should not be used to promote screening unless tested in context, as they may negatively affect attendance rates. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

Production of sugar and alcohol: financial and operational strategies

Directory of Open Access Journals (Sweden)

Celma de Oliveira Ribeiro

2014-12-01

Full Text Available This article proposes the construction of an optimization model to define the product portfolio of a sugarcane mill, taking into account operational and financial aspects. It is considered that the revenue earned by a producer comes from the sale of sugar and alcohol in the physical market and the results obtained through hedging in the derivatives market of sugar. Employing CVaR (Conditional Value-at-Risk, as the risk measure, the model allows the construction of an efficient frontier and, according to the producer's risk tolerance, defines the optimal strategy of production (production mix and activity in the derivatives market (hedge ratio. Through the model the article also seeks to analyze the advantage of using the options market in the construction of financial hedging strategies in agricultural commodities markets.

Are Financial Education Programs Meeting the Needs of Financially Disadvantaged Consumers?

OpenAIRE

Yunhee Chang; Angela Lyons

2007-01-01

This paper uses data collected from a retrospective pre-test to investigate he impact that a financial education program has on participants’ financial behaviors. Specifically, we compare program impact across participants with varying levels of financial competency prior to the program and examine whether the program is meeting the educational needs of those it was designed to target – namely, financially disadvantaged consumers. The findings show that the program benefited all of the partic...

Practical C++ financial programming

CERN Document Server

Oliveira, Carlos

2015-01-01

Practical C++ Financial Programming is a hands-on book for programmers wanting to apply C++ to programming problems in the financial industry. The book explains those aspects of the language that are more frequently used in writing financial software, including the STL, templates, and various numerical libraries. The book also describes many of the important problems in financial engineering that are part of the day-to-day work of financial programmers in large investment banks and hedge funds. The author has extensive experience in the New York City financial industry that is now distilled in

Financial Stability and Interacting Networks of Financial Institutions and Market Infrastructures

NARCIS (Netherlands)

Léon, C.; Berndsen, R.J.; Renneboog, L.D.R.

2014-01-01

An interacting network coupling financial institutions’ multiplex (i.e. multi-layer) and financial market infrastructures’ single-layer networks gives an accurate picture of a financial system’s true connective architecture. We examine and compare the main properties of Colombian multiplex and

FINANCIAL SYSTEM OF JAPAN: THE LEGAL REGULATION OF DISPUTES BETWEEN FINANCIAL SERVICES PROVIDERS AND CONSUMERS

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E. E. Frolova

2018-01-01

Full Text Available Purpose: the article examines the main problems associated the regulatory acts of Japan – The Financial Instruments and Exchange Act, The Banking Act, The  Insurance Business Act, lists the types of financial disputes subject to alternative settlement, identified the parties to the financial dispute. To achieve this goal, the article must solve the following tasks: to determine whether there are institutions in Japan that provide services for resolving financial disputes; to investigate the main problems associated with the definition of the concept and types of financial dispute, the conditions for the transfer of a financial dispute to the competent authority.Methods: this article is based on an interdisciplinary concept of research, which allowed to distinguish the distinctive features of the legal regulation of the settlement of financial disputes in Malaysia.Results: acts of Japan – The Financial Instruments and Exchange Act, The Banking Act, The Insurance Business Act, – refer to financial disputes – disputes resolved by "Designated Dispute Resolution Organizations", the so-called "financial DDRO". Financial disputes are disputes between suppliers and consumers of financial services. The Financial Instruments and Exchange Act details the persons, whose activities fall within the definition of financial provider services. A brief list of financial service providers is available on the website of Japan's main financial regulator, the Financial Services Agency. The list include: Japanese banking institutions, branches and representative offices of foreign banks, business operators of financial instruments, insurance companies, trust companies, financial markets, foreign audit firms. However, unlike other countries of the Asia-Pacific region, consumers of financial services can be both physical and legal entities.Conclusions and Relevance: the materials presented in the article show the special role of "Designated Dispute Resolution

Financial Performance of Islamic and Conventional Banks During and After US Sub-prime Crisis in Pakistan: A Comparative Study

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Muhammad Bilal

2015-12-01

Full Text Available Islamic banking system that is based on Shariah principles is considered more resilient to the financial shocks due to its interest free nature. This study is aimed to compare the financial performances and investigate whether Islamic banks are more profitable, liquid, less risky and operationally efficient compared to conventional banks during and after US Sub-prime crisis in Pakistan. The time span used for the study was from 2007 to 2012. Thirteen financial ratios composed of five Islamic and five conventional banks to measure the financial performance in terms of profitability, risk and solvency, liquidity and capital adequacy. Independent sample t-test is used to determine the significance of mean differences of selected ratios. The results of profitability measures indicate that Islamic banks remained less profitable; however, liquidity performances of Islamic banks were better than conventional banks. However, overall operational efficiency measures are not in favour of Islamic banks. The study concluded that conventional banks performed more efficiently and profitably as compared to Islamic banks. The opportunity of future empirical study is recommended at the end of this paper.

Trade Finance and Trade Collapse during the Global Financial Crisis: Evidence from the Republic of Korea

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E. Young Song

2014-12-01

Full Text Available This study examines the role of trade finance in the trade collapse of 2008-09 from the perspective of the Korean economy. We use two approaches. Firstly, as background to a more formal analysis, we make a casual observation on the behavior of aggregate data on trade finance, on which Korea has relatively abundant data. Aggregate data do not convincingly support the view that trade finance played an active role in causing the trade collapse. The measures of trade finance and the value of trade both dropped sharply, but the ratio of trade finance over trade was stable and in some cases increased during the crisis period. Secondly, using quarterly data on listed firms in Korea, we conduct panel estimations to test whether firms that are more dependent on external finance experienced greater export contraction during the crisis. Our regression analysis suggests that the financial vulnerability of firms, measured by various financial ratios, did not contribute to export contraction during the financial crisis. This observation largely applies even to smaller firms, who are usually thought of as being more vulnerable financially. However, we find that small exporters that relied heavily on cross-border trade payables or receivables suffered larger drops in export growth during the crisis.

Forecasting Financial Stress

OpenAIRE

Jan Willem Slingenberg; Jakob de Haan

2011-01-01

This paper uses a Financial Stress Index (FSI) for 13 OECD countries to examine which variables can help predicting financial stress. A stress index measures the current state of stress in the financial system and summarizes it in a single statistic. We employ three criteria for indicators to be used in constructing a multi-country FSI (the index covers the entire financial system, indicators used are available at a high frequency for many countries for a long period, and are comparable) to c...

Voluntary Disclosure in the Annual Reports of Financially Distressed Companies in Indonesia

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Wijantini Wijantini

2006-09-01

Full Text Available This paper examines voluntary disclosure in the annual reports of financially distressed companies in Indonesia. The disclosure score range is between 3 percent and 49 percent with the mean and median score of 25 percent and 26 percent, respectively, at the onset of distress. The score is measured as the ratio of the total items disclosed to the maximum possible items score applicable to the firm. The most disclosed items are in the category of financial highlights and general corporate information whereas the three least disclosed items concern projections, liquidity, and research and development. Moreover, the results of this study reveal that the level of voluntary disclosure in the financially distressed firms is higher than that in non-financially distressed firms. There is no significant difference between the types of information disclosed by the 2  groups. The statistical tests are applied for various years. Consistent with findings in previous studies, the size of the firm appears to be a positive variable significantly affecting the disclosure level.

Financial Policies and the Prevention of Financial Crises in Emerging Market Economies

OpenAIRE

Mishkin, Frederic S.

2001-01-01

The author defines a financial crisis as a disruption in financial markets in which adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities. As financial markets become unable to function efficiently, economic activity sharply contracts. Factors that promote ...

INNOVATIONS IN FINANCIAL ANALYTICS

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T. V. Teplova

2012-01-01

Full Text Available In this paper as the main feature of innovation in the financial health of a company analyst view the shift to two circuits of key interests of owners of capital (financial stakeholders. Justifi ed by differences key financial systems within the contour ownership interest and the lender three projections: liquidity, the current economic efficiency and growth. In the paper as the main feature of the innovation in the analysis of the financial health of a company is considered a transition to the two circuits of the interests of the key owners of financial capital (financial stakeholders. Justifi ed differences of key financial indicator systems in the framework of the outline of the interests of the owner and the lender by three projections: liquidity, efficiency and the quality of growth. The examples of Russian companies have different interpretations of financial targets and indicators with a choice of activities.

Analyzing Influential Factors Against Timeliness of Financial Reporting (Empirical Study of Automation and Components and Telecommunication Companies Listed on Indonesia Stock Exchange.

Directory of Open Access Journals (Sweden)

Joko Suryanto

2016-12-01

Full Text Available This research aims to examine the effect of the relationship between firm size, profitability, solvency, public ownership, and the audit opinion on the timeliness of financial reporting. The dependent variable in the form of timekeeping company deliver the financial statements to the Stock Exchange. Meanwhile for the independent variables such as firm size measured by total asets of the company, profitability is measured by profit margin ratio, solvency measured by debt-to-equity ratio, public ownership is measured by the percentage of the number of shares owned by the community, and the audit opinion is measured with an unqualified opinion and otherwise unqualified. This study uses secondary data with population automotive companies and telecommunications components and annual financial statements issued on the Stock Exchange in the period 2010-2012. From the analysis conducted in this study it can be concluded that the size of the company significantly influence the timeliness of financial reporting. While profitability, solvency, public ownership, and the audit opinion does not affect the timeliness of financial reporting.

Integrating Physical Actions and Financial Instruments to Manage Environmental Financial Risk

Science.gov (United States)

Foster, B.

2016-12-01

Exposure to extreme weather events can be reduced through physical actions (e.g., dams/reservoirs) or mitigated financially (e.g., insurance). Often physical actions involve investments in expensive infrastructure that reduce exposure, but whose benefits are only occasionally realized. Financial risk management does not reduce the impacts of an event, but rather redistributes them temporally, albeit at a cost. Nonetheless, these costs are typically much smaller, at least in the short run, than those incurred for physical actions. Financial strategies are also more flexible than physical ones in the face of an uncertain future. Financial contracts specifically designed to manage extreme environmental risks are becoming more common and can either replace or complement infrastructural investments as part of a risk management portfolio. In order to make optimal decisions as to the relative levels of physical and financial risk mitigation to employ, it is necessary to understand the relative merits of each strategy. This research develops a method for analyzing tradeoffs between physical and financial risk management strategies. We identify the unique cost and benefit properties of each strategy and integrate them into a single model that details the tradeoffs involved in various portfolios of physical and financial strategies. These methods are then applied to evaluate decisions to pursue emergency dredging during drought on the Mississippi River, which is used to mitigate the increased costs and/or reduced revenues barge operators face when water levels are low. Currently the U.S. Army Corps of Engineers funds most emergency dredging operations during major droughts and they are considering more intensive strategies for future droughts. Barge carriers and shippers though could manage at least some portion of their financial risks through a series of existing and experimental financial contracts. This work involves the formulation of these experimental contracts and

A System of Indicators for Financial Analysis of the Municipal Real Property

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Daniela Feschiyan

2013-08-01

Full Text Available The paper presents a system of financial indicators for the efficiency of use of municipal real property. Such a system must provide for meeting the information needs of a number of internal and external consumers and is of primary significance in the analysis of municipalities’ overall financial condition. The following may be pointed out as the major aspects of the practical analysis: i the analysis of the municipality’s provision with immoveable property; ii the analysis of the efficient use of certain categories of municipal real property. The paper aims at clarifying the major moments in the analysis of the structure, composition, and effective use of municipal real property, and the determination of definite indicators to be applied to this analysis oriented towards its implementation. The wide variety of parameters is reduced to a system of 16 indicators: reporting value, depreciation, ratio of replacement, ratio of cost efficiency, ratio of revenue efficiency, return on total assets, return on revenues, return on expenses, ratio of the fitness, ratio of the repair, ratio of real energy provision, ratio of workload, present value of a series of regular cash flows, equivalent yield model, return on investment, return on investment. The paper presents the structure and content of the indicators of the analysis of the municipal real property, as well as the input of these indicators. The estimation (values necessary to determine the indicators, the indicators themselves and their meaning make it possible to study the effectiveness of the operations (functioning of the municipal real property in terms of description of its physical condition, structure, content, purpose and functions, which generates revenues or brings expenditures to the municipality. The system of indicators provides for decision making with a view to boosting the efficiency of public sector management and more specifically – the management of municipal real property.

SOME ASPECTS OF METHODOLOGICAL BASIS OF BANK’S FINANCIAL SECURITY MODELING

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Z. Vasylchenko

2013-05-01

Full Text Available Developed methodical approaches for assessing financial safety of bank. Proposed by authors theoretical concept of integral bank’s financial security index has in its basis indicators of capital sufficiency, capital growth, liquidity and return on assets. Bringing together all the mentioned values is appropriate to do using the reliability function. As an input data for setting this function serve expert evaluations regarding the stability of the object that is under consideration. It was found out, that typically system of expert evaluations has couple of features (advantages, which don’t exclude and also don’t complement each other. These features authors consider by separating them as compensational, non-compensational and partly compensational advantages. It was proved, that in banking it is extremely important itself the realistic setup of the ratio between partial and integral indicators, which are partly inherent to-compensational advantage. Proved that the developed approaches for assessing strategic decisions on financial safety of bank are based on three-level index system: bank’s primary accounting figures; aggregate of special generalized figures which consolidate information on management decisions made in bank to the most possible extent; integral indices of financial safety of bank.

77 FR 27381 - Financial Crimes Enforcement Network: Customer Due Diligence Requirements for Financial...

Science.gov (United States)

2012-05-10

...-AB15 Financial Crimes Enforcement Network: Customer Due Diligence Requirements for Financial... concerning customer due diligence requirements for financial institutions. DATES: Written comments on the... customer due diligence requirements for financial institutions.\\1\\ FinCEN received several comments on the...

Enron: a financial Tchernobyl?; Enron: un Tchernobyl financier?

Energy Technology Data Exchange (ETDEWEB)

Nicolet, J.L. [Expert Judiciaire, Pres la Cours d' Appel de Versailles, 78 (France); Alazard, C.; Charron, J.L. [Professeurs agreges d' Economie et Gestion, DECF, Lycee de Sevres, 92 (France)

2004-07-01

ENRON is almost more striking as an epitome, a model, than as a scandal. It is the perfect illustration of the occurrence of a major financial risk with strong contaminating repercussions. Close examination of the measures taken after this scandal, and the many other scandals (WorldCom, Vivendi etc.) which followed it, indicates that financial risk does not only, as might be imagined on more superficial analysis, take its roots in fraudulent behaviour. On the contrary, fraudulent behaviour appears merely to act as a catalyst. The authors suggest that a global approach integrating the concepts of industrial risk management provides a far more appropriate prism through which to interpret and develop effective controls for financial risks. After recalling the main facts, they apply the concepts of cindynics (the science of danger) to the Enron case and rapidly reach a first major conclusion: the financial system does not have its foundations in any reliable system of measurement. (authors)

SEGMENT OF FINANCIAL CORPORATIONS AS AN OBJECT OF FINANCIAL AND STATISTICAL ANALYSIS

OpenAIRE

Marat F. Mazitov

2013-01-01

The article is devoted to the study specific features of the formation and change of economic assets of financial corporations as an object of management and financial analysis. He author identifies the features and gives the classification of institutional units belonging to the sector of financial corporations from the viewpoint of assessment and financial analysis of the flows, reflecting change of their assets.

Marketing Financial Aid

Science.gov (United States)

Huddleston, Thomas, Jr.; Batty, Burt F.

1978-01-01

Student financial assistance services are becoming a major part of the institutional marketing plan as traditional college-age students decline in numbers and price competition among institutions increases. The effect of financial aid on enrollment and admissions processes is discussed along with the role of the financial aid officer. (Author/LBH)

Editorial: AABFJ Volume 8, Issue 4 Special Issue in Financial Markets and Financial Instruments

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Ciorstan Smark

2014-10-01

Full Text Available Financial planning in Australia is in a time of change and challenge. Educational standards and regulation are in flux. There is a strong need to move financial planning into a more esteemed professional position as financial planners are not always considered the safest source of advice for people in Asia and the pacific rim when it comes to investing their much needed retirement funds. This Special Issue on Financial Planning and Financial Instruments brings together articles from financial planning, banking, financial markets and retirement policy.

Domesticizing Financial Economies

DEFF Research Database (Denmark)

Deville, Joe; Lazarus, Jeanne; Luzzi, Mariana

show. Third, the “domestication of financial economies”: financial literacy programs developed by governmental bodies, international organizations, and banks have become a ubiquitous layer attached to the assemblage of financial economies in many countries. And last but not least, “domesticizing social...... practices as well as the precise way financial providers are evaluating, sorting and targeting their consumers. We believe these diverse trends are starting to converge, and the ambitions of this paper are both to organize scattered literature and to reflect upon the consequences of the new field...

Narrative Financial Therapy: Integrating a Financial Planning Approach with Therapeutic Theory

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Megan A. McCoy

2014-03-01

Full Text Available The article serves as one of the first attempts to develop an integrated theoretical approach to financial therapy that can be used by practitioners from multiple disciplines. The presented approach integrates the components of the six-step financial planning process with components of empirically-supported therapeutic methods. This integration provides the foundation for a manualized approach to financial therapy, shaped by the writings of narrative theorists and select cognitive-behavioral interventions that can be used both by mental health and financial professionals.

Opinion on the new financial products issued by financial institutions - structured products

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Baranga Laurentiu Paul

2017-07-01

Full Text Available Structured products are financial instruments issued by a financial institution where the amount claimed by the investor from the issuer depends on the variation of the price of the underlying instrument based on which the certificate is issued, namely: individual shares, share costs, stock indexes, currencies, commodities or combinations of these according to the prospectus. These products appeared with the development and diversification of financial services during the recent years, as well as due to the emergence of liquidity suppliers of international importance. The liquidity providers have developed on their own platforms a new range of derivatives which are different from the classical derivatives. These new derivatives, similar to contracts for difference (CFDs, have given to other institutions the possibility of transferring their risk more easily, regardless of the nature or type of the underlying asset. Thus, the financial institutions issuing structured financial products have found in liquidity providers the possibility of developing the CFDs required for their risk transfer operations. The issuers of structured products do not accept new risky positions when they issue certificates because they neutralize them through suitable risk transfer operations. The issuing financial institutions structure certificates from a variety of financial assets and/or commodities in order to adjust them to the various risk profiles of investors both in terms of expected return and in terms of the response to risk. Thus, products are issued that quickly respond to the trends of the financial or commodity markets. Investors in structured financial products benefit from the economic effect of a derivative but are exposed to financial risks that are more complex and more difficult to understand and at the same time depend on the reliability and stability of the contractual relationships between various financial institutions.

The Effect Of Intangible Asset Financial Performance And Financial Policies On The Firm Value

OpenAIRE

Rindu Rika Gamayuni

2015-01-01

Abstract The purpose of this study is to test empirically the relationship between intangible assets financial policies and financial performance to the firm value at going-public company in Indonesia. Path analysis was used to ascertain the relationship between intangible assets financial policies financial performance and firm value at going-public company in Indonesia in the year 2007 to 2009. This study also provides empirical evidence that Intangible assets financial policies financial p...

Trusts and Financialization

DEFF Research Database (Denmark)

Harrington, Brooke

2017-01-01

the global spread of financialization: by privileging the rentier–investor within the 15 world economy; by perpetuating a distinctively Anglo-American approach to finance internationally; and by increasing the autonomy of finance vis-a-vis the nation-state. This study shares the primarily descriptive......This article identifies trusts as a legal structure associated with the global spread of financialization. Although trusts originated in Medieval England, they have acquired a new significance in contemporary finance by virtue of their advantages in terms of 10 profit maximization and capital...... and conceptual intent of Krippner’s work on financialization, but extends it in two ways: by comparing trusts to the better- known corporate form of organizing financial activity, and by showing how private 20 capital is implicated in the financialized economy alongside corporate wealth....

Financial decision-making abilities and financial exploitation in older African Americans: Preliminary validity evidence for the Lichtenberg Financial Decision Rating Scale (LFDRS).

Science.gov (United States)

Lichtenberg, Peter A; Ficker, Lisa J; Rahman-Filipiak, Annalise

2016-01-01

This study examines preliminary evidence for the Lichtenberg Financial Decision Rating Scale (LFDRS), a new person-centered approach to assessing capacity to make financial decisions, and its relationship to self-reported cases of financial exploitation in 69 older African Americans. More than one third of individuals reporting financial exploitation also had questionable decisional abilities. Overall, decisional ability score and current decision total were significantly associated with cognitive screening test and financial ability scores, demonstrating good criterion validity. Study findings suggest that impaired decisional abilities may render older adults more vulnerable to financial exploitation, and that the LFDRS is a valid tool.

The usage of financial derivatives in financial risk management by non- financial companies in Serbia

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Živanović Branko

2017-01-01

Full Text Available In this paper we analyse the research results on corporate risk management practices, notably in light of the derivatives use in the large Serbian non-financial companies. The principal aim of this paper is to examine whether Serbian companies employ derivatives to manage risk and to what degree, and to explore the main rationale behind the companies' not employing these instruments, as well as to suggest possible enhancements of risk management practices. Furthermore, we have investigated the key reasons why financial derivatives are very useful for Serbian companies for hedging financial risks. Additionally, this paper provides a comparative overview of the use of derivatives between Serbian companies and the companies in Croatia and Slovenia in order to ascertain whether Serbian companies employ derivatives in order to manage risk to the same degree as their Croatian and Slovenian counterparts. This paper will include findings and provide evidence that FX rate and referent interest rates (such as 1w- 2w repo rate, Beonia and Belibor are markedly volatile, which opens vast possibilities for the use of financial derivatives, given that these financial parameters determine the price of a credit arrangement for companies and the quality of import and export cash flows.

The Geography of Financial Literacy

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Christopher Bumcrot

2013-07-01

Full Text Available This paper explores how well equipped today’s households are to make complex financial decisions in the face of often high-cost and high-risk financial instruments. Specifically we focus on financial literacy. Most importantly, we describe the geography of financial literacy, i.e., how financial literacy is distributed across the fifty US states. We describe the correlation of financial literacy and some important aggregate variables, such as state-level poverty rates. Finally, we examine the extent to which differences in financial literacy can be explained by states’ demographic and economic characteristics. To assess financial literacy, five questions were added to the 2009 National Financial Capability Study, covering fundamental concepts of economics and finance encountered in everyday life: simple calculations about interest rates and inflation, the workings of risk diversification, the relationship between bond prices and interest rates, and the relationship between interest payments and maturity in mortgages. We constructed an index of financial literacy based on the number of correct answers provided by each respondent to the five financial literacy questions. The financial literacy index reveals wide variation in financial literacy across states. Much of the variation is attributable to differences in the demographic makeup of the states; however, a handful of states have either higher or lower levels of financial literacy than is explained by demographics alone. Also, there is a significant correlation between the financial literacy of a state and that state’s poverty level. The findings indicate directions for policy makers and practitioners interested in targeting areas where financial literacy is low.

Financial Learning: Is It The Effective Way to Improve Financial Literacy among Accounting Students?

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Herawati Nyoman Trisna

2018-01-01

Full Text Available The aims of this study are to determine: the difference of financial literacy level between students who have had experience in financial learning and who have not had experience in financial learning. The data for this study was collected through financial literacy test and questionnaire which was distributed through randomized sampling method. A total of 173 completed and usable questionnaire have been collected. The result shows that the level of financial literacy among accounting students comes under below optimal standard category. Students who have had financial learning experience have a higher level of financial literacy than students who have not. This study provides means to improve financial learning for accounting students in preparation for creating a prosperous future.

17 CFR 229.914 - (Item 914) Pro forma financial statements: selected financial data.

Science.gov (United States)

2010-04-01

... statements: selected financial data. 229.914 Section 229.914 Commodity and Securities Exchanges SECURITIES... Transactions § 229.914 (Item 914) Pro forma financial statements: selected financial data. (a) In addition to... statements are required. (c) The pro forma financial statements required by paragraph (b) of this Item (§ 229...

Financial performance of the teaching pharmacies in Isfahan: an economic evaluation.

Science.gov (United States)

Sabzghabaee, A M; Etebari, M; Sajjadi, H; Badri, Sh; Hosseini-Biuki, S M; Sheikhaboumasoudi, R

2009-07-01

Teaching pharmacies are amongst the important cornerstones of a healthcare system for drug supplying, pharmacy education and pharmacy practice research. Assessment of the Iranian healthcare system costs shows that after personnel charges, drug outlay is the second expensive factor. This great financial mass requires integral audit and management in order to provide costumers satisfaction in addition to financial viability. Teaching pharmacies are required to realize financial viability as well as providing several educational and drug servicing goals, which makes microeconomic analysis important. The aim of this study was to evaluate the financial performance of the teaching pharmacies affiliated with the Isfahan University of Medical Sciences (with the abrreviated names as: SHM, ISJ, AZH for the confidentialiy of the financial data). This is a descriptive and cross-sectional study done in 2008. The target pharmacies of this study were all the 3 teaching pharmacies affiliated with the Isfahan University of Medical Sciences. The data collecting template was prepared using the standard scientific methods according to the goals of this research The goals also nominated necessary items needed in economic profit evaluation. The data collection template was completed by reference to the teaching pharmacies financial documents and reports, used as a base for calculating the total income and the total costs in 2007-2008 financial year. The difference between these two balances showed the value of profits or loss. The profit/cost ratio was also calculated, using the proportion of the total income to the total costs. The collected data was statistically analyzed using the Excel software (Microsoft 2007). For the financial year 2007-2008, the difference between the total income and the total costs was -831.6 million Rials (excess costs to income) for the SHM pharmacy, + 25.4 billion Rials for the ISJ pharmacy and -429.5 million Rials for the AZH pharmacy. According to our

Do banks differently set their liquidity ratios based on their network characteristics? Do banks differently set their liquidity ratios based on their network characteristics?

OpenAIRE

Distinguin, Isabelle; Mahdavi-Ardekani, Aref; Tarazi, Amine

2017-01-01

This paper investigates the impact of interbank network topology on bank liquidity ratios. Whereas more emphasis has been put on liquidity requirements by regulators since the global financial crisis of 2007-2008, how differently shaped interbank networks impact individual bank liquidity behavior remains an open issue. We look at how bank interconnectedness within interbank loan and deposit networks affects their decision to hold more or less liquidity during normal times and distress times a...

Need depriving effects of financial insecurity: Implications for well-being and financial behaviors.

Science.gov (United States)

Weinstein, Netta; Stone, Dan N

2018-06-28

Evidence suggests that experiencing financial insecurity lowers well-being and increases problematic financial behaviors. The present article employs a self-determination theory (SDT; R. M. Ryan & Deci, 2000a) perspective to understand the mechanisms by which experiencing financial insecurity contributes to these detrimental outcomes. Informed by SDT, we expected that the basic psychological needs for autonomy, competence, and relatedness would drive these effects. Studies were concerned with individuals' general experiences of financial insecurity (using community samples; Studies 1 and 2), and employed manipulations involving self-reflection (Study 3) and hypothetical scenarios (Study 4). Findings demonstrated that financially insecure conditions undermined basic psychological needs and lowered well-being (measured in terms of self-esteem, depression, and anxiety). In addition, lower satisfaction of basic psychological needs linked financial insecurity to a greater likelihood of engaging in financial cheating (Studies 2 and 3) and risky financial decisions (Study 4). Importantly, this pattern of effects remained in evidence across socioeconomically diverse samples and income levels. We discuss implications for future interventions to improve the wellness of individuals in financially insecure circumstances. (PsycINFO Database Record (c) 2018 APA, all rights reserved).

The Effect Of Intangible Asset Financial Performance And Financial Policies On The Firm Value

Directory of Open Access Journals (Sweden)

Rindu Rika Gamayuni

2015-01-01

Full Text Available Abstract The purpose of this study is to test empirically the relationship between intangible assets financial policies and financial performance to the firm value at going-public company in Indonesia. Path analysis was used to ascertain the relationship between intangible assets financial policies financial performance and firm value at going-public company in Indonesia in the year 2007 to 2009. This study also provides empirical evidence that Intangible assets financial policies financial performance have significant influence to the firm value simultaneously. Intangible assets has no significant influence to financial policies but has positive and significant influenced to financial performance ROA and firm value. Debt policies and financial performance ROA influenced firm value positive and significant. Financial statements limitation in measuring and disclosing intangible assets is the cause of significant difference between book value equity and market value equity. Measurement and disclosure of intangible assets intellectual capital precisely and aqurately is very important because intangible assets have a positive and significant effect to the firm value. Accounting standards should be concerned about this.

Delays help German utilities maintain self-financing ratios. [Financing nuclear power projects