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Journal articles on the topic 'Transaction Exposure'
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1
Goel, Manisha. "Management of Transaction Exposure." International Journal of Service Science, Management, Engineering, and Technology 3, no. 1 (January 2012): 37–54. http://dx.doi.org/10.4018/jssmet.2012010103.
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In an era of globalization, thousands of transactions of international trade take place among companies of different countries. But the profitability of these transactions can be completely wiped out by adverse movements in the exchange rate during this time gap. Transaction exposure is a measure of effect of exchange rate fluctuations on these transactions. Unmanaged transaction exposure can paralyze not only financial position but also competitive position of companies in market. The present study portrays transaction exposure management as practiced by various multinational companies in India. And compares management of transaction exposure by banking and non-banking and foreign and Indian MNCs. The effect of various factors on their management policy is also investigated. The results of the study evidence that the majority of firms make efforts to measure their transaction exposure. There is no significant effect of level of transaction exposure on estimation policy and decision to develop separate management system for management of transaction exposure of companies. Significant difference exists between management policies of companies of different sectors toward management of their transaction exposure. Companies are actively using various hedging strategies for managing their transaction exposure.
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Bogicevic, Jasmina, Ljiljana Dmitrovic-Saponja, and Marija Pantelic. "Foreign exchange transaction exposure of enterprises in Serbia." Ekonomski anali 61, no. 209 (2016): 161–77. http://dx.doi.org/10.2298/eka1609161b.
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Enterprises involved in international business face transaction exposure to foreign exchange risk. This type of exposure occurs when an enterprise trades, borrows, or l?nds in foreign currency. Transaction exposure has a direct effect on an enterprise?s financial position and profitability. It is one of the three forms of exposure to exchange rate fluctuations, the other two being translation exposure and operating exposure. The aim of this paper is to assess the transaction exposure of enterprises in Serbia operating internationally. In addition to identifying and measuring transaction exposure, this paper explores the practical importance that enterprises in Serbia attach to management of this type of foreign exchange risk. We do not find significant differences between domestic and foreign enterprises in their choice of the type of foreign exchange risk exposure to manage. Although transaction exposure is the most managed type of foreign exchange risk, research has shown that, compared to foreign businesses, Serbian enterprises do not use sufficient protective measures to minimize the negative impact of this type of exposure on their cash flows and profitability. We expected that there would be a statistically significant dependence between the volume of enterprises? foreign currency transactions and the level of applied transaction exposure management practices. However, the results of our research, based on a sample of enterprises in Serbia operating internationally, show that transaction exposure management practices can be influenced by factors other than the level of an enterprise?s foreign currency transactions, such as the enterprise?s country of origin.
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., Farhana, and Ratih Puspitasari. "Analisis Lindung Nilai Dengan Menggunakan Swap Dan Forward Untuk Mengurangi Resiko Transaction Eksposure." Jurnal Ilmiah Manajemen Kesatuan 5, no. 1 (July 16, 2018): 48–57. http://dx.doi.org/10.37641/jimkes.v5i1.26.
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Hedging is the one of activities is performed by a company or a bank to protect their business from the risk of changes caused by exchange rates or exchange rate fluctuations. There are some things that should be considered by companies whom often perform the transactions related to interest rate and exchange rate. For example, banks should monitor the company performance against losses caused by foreign exchange and also arrange the strategy, because it is necessary for the company to perform hedging. The research is purposed to learn how to minimize the risks of losses experienced by banks due to hedging techniques usage. The hedging techniques performed are swap and forward hedging. The method used in this study correlation coefficient and simple regression to determine the relationship between the variables in question. The result of this research shows that hedging technique in the buying and selling transactions of foreign exchange has more benefit rather than not. It can avoid the risks of transaction exposures. It can be seen from the significant level, Forward has the significant level in the amount of 0,000. It means the Forward Hedging Technique has an effect to the transaction exposure and Hedging transaction using Swap has the benefit rather than not. The significant level in the amount of 0,007 is smaller than 0,05. It means that Swap Hedging Technique has an effect to the transaction exposure. Accordingly, Forward and Swap deserve to be considered by companies or banks to avoid the risks of transaction exposures.
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Nimer, Khalil, Mahmoud Nassar, Naser Abu Ghazaleh, and Abdulhadi Ramadan. "Family Business and Transaction Exposure." Journal of Open Innovation: Technology, Market, and Complexity 6, no. 4 (October 29, 2020): 129. http://dx.doi.org/10.3390/joitmc6040129.
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This study provides additional evidence and insight into theories on transaction exposure as it empirically examines the magnitude of transaction exposure in Kuwait, a developing country. Specifically, it investigates factors that might influence Kuwaiti firms’ responses to their transaction exposure and how being a family business or part of a family business group could play a mediating role in this response. Through conducting a questionnaire survey with the largest 147 industrial and commercial Kuwait firms, the results of a multinomial logistic regression indicate that theories on financial hedging seem to be inapplicable in the Kuwaiti case. However, these theories provide only partial explanations for management behavior in response to the transaction exposure of Kuwaiti companies. Findings show that a firm being part of a family business group is significantly correlated with its level of hedging, suggesting that firms that are members of a family group of businesses are expected to hedge at a higher level. This points to other theories, such as institutional theory, as playing greater roles in explaining the transaction exposure behaviors of firms in developing countries, and also suggests that family-controlled businesses are expected to engage in more innovative financial strategies and hedge at a higher level. The research findings imply that Kuwaiti firms need to be more aware of their transaction exposure and pay more attention to the related issues. Training programs in risk-management strategies should be provided to decision makers to help them evaluate the hedging strategies they employ. This study shows how different behaviors toward risk exist between firms that operate in developed and developing countries, including the effect of being part of a family business resulting in firms engaging in more innovative financial strategies when dealing with risk.
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Wever, Mark, Nel Wognum, Jacques Trienekens, and Onno Omta. "Managing transaction risks in interdependent supply chains: an extended transaction cost economics perspective." Journal on Chain and Network Science 12, no. 3 (January 1, 2012): 243–60. http://dx.doi.org/10.3920/jcns2012.x214.
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The present study examines the management of transaction risks in supply chains. Risk management studies often ignore the wider supply chain context in which individual transactions take place. However, risk management strategies which are suitable to use when only a single transaction is considered may be inappropriate when other transactions in the supply chain are taken into account. This study addresses this issue by examining: (1) how risks arise as a result of interdependencies between the various transactions making up the supply chain; and (2) what types of contractual-based strategies actors can use to manage their risk exposure. To realize these aims, the study applies an extended Transaction Cost Economics (TCE) framework with a supply chain orientation. The framework illustrates how different types of interdependencies - pooled, sequential and reciprocal - expose companies to different sources of risk. Three strategies companies can use when facing barriers to risk minimization in sequentially interdependent supply chains are analyzed: risk transferring, risk altering and risk sharing. Examples from the agri-food sector are discussed to demonstrate the functioning of these strategies.
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Amer, Islam. "Modelling foreign exchange rate transaction exposure of UK insurance companies." Journal of Economic and Administrative Sciences 32, no. 2 (November 21, 2016): 120–36. http://dx.doi.org/10.1108/jeas-05-2015-0013.
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Purpose The purpose of this paper is to study the sensitivity of foreign exchange exposure through the cash flow estimation method using a sample of 59 UK insurance companies. This approach allows a decomposition of exposures into short- and long-term components. By revealing the nature of their cash flow exposures, companies can evaluate the effectiveness of their hedging programmes and focus their hedging efforts according to the nature of their exposures. Design/methodology/approach Martin and Mauer’s (2003, 2005) three-stage model is used to estimate foreign exchange rate transaction exposures for the sample of 65 UK insurance companies over the period 2004-2013. However, this paper has one important innovation to this method. Instead of the model used in previous papers, the paper uses a model from the actuarial field that was proposed by Blum et al. (2001) for modelling foreign exchange rates with their relevant constituents (inflation and interest rate). Findings The evidence shows that the currency transaction exposure for non-life insurers is greater than that of life insurers. Moreover, the author finds that large insurers exhibit lower frequencies of foreign exchange transaction exposure than small insurers. Originality/value The value of this paper comes from the fact that revealing the nature of cash flow exposures, companies can evaluate the effectiveness of their hedging programmes and focus their hedging efforts according to the nature of their exposures.
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Chan, Kam Fong, Christopher Gan, and Patricia A. McGraw. "A Hedging Strategy for New Zealand’s Exporters in Transaction Exposure to Currency Risk." Multinational Finance Journal 7, no. 1/2 (June 1, 2003): 25–54. http://dx.doi.org/10.17578/7-1/2-2.
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Arcelus, F. J., Ravi Gor, and G. Srinivasan. "Foreign exchange transaction exposure in a newsvendor setting." European Journal of Operational Research 227, no. 3 (June 2013): 552–57. http://dx.doi.org/10.1016/j.ejor.2012.10.014.
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Brink, Sophia. "The effect of the new revenue standard on client loyalty programmes." Journal of Economic and Financial Sciences 7, no. 2 (July 31, 2014): 393–414. http://dx.doi.org/10.4102/jef.v7i2.147.
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The popularity of client loyalty programmes has increased drastically over the past few years, with more than 100 suppliers in South Africa currently making use of them. On 1 July 2007 the IASB issued IFRIC 13 to give specific guidance to suppliers on the accounting treatment of client loyalty programme transactions. In the process of compiling a new revenue standard, the International Accounting Standard Board published Exposure Draft ED/2011/6 Revenue from Contracts with Customers on 14 November 2011 to supersede virtually all existing revenue standards and interpretations under IFRS, including IFRIC 13. Although the effective date of the new revenue standard is 1 January 2017, in view of the nature of a client loyalty programme transaction it would be prudent for suppliers to start collecting data immediately for the retrospective application. Given the time limit and the minimal specific reference to client loyalty programme transactions in the proposed new model, the main aim of the research was to investigate the proposed new model’s impact on the accounting treatment of client loyalty programme transactions. The similarities and differences between the guidelines in IFRIC 13 and those of the proposed new model as well as the specific paragraphs in the proposed new model that are applicable to client loyalty programme transactions were considered. A specific recognition difference and a presentation difference has been identified between the accounting treatment of a client loyalty programme transaction under IFRIC 13 and that of the proposed new model.
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Cheng, Ing-Haw, Sahil Raina, and Wei Xiong. "Wall Street and the Housing Bubble." American Economic Review 104, no. 9 (September 1, 2014): 2797–829. http://dx.doi.org/10.1257/aer.104.9.2797.
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We analyze whether midlevel managers in securitized finance were aware of a large-scale housing bubble and a looming crisis in 2004–2006 using their personal home transaction data. We find that the average person in our sample neither timed the market nor were cautious in their home transactions, and did not exhibit awareness of problems in overall housing markets. Certain groups of securitization agents were particularly aggressive in increasing their exposure to housing during this period, suggesting the need to expand the incentives-based view of the crisis to incorporate a role for beliefs. (JEL D14, D83, E32, E44, G01, G21, R31)
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Martin, Anna D., and Laurence J. Mauer. "Transaction versus economic exposure: which has greater cash flow consequences?" International Review of Economics & Finance 12, no. 4 (January 2003): 437–49. http://dx.doi.org/10.1016/s1059-0560(03)00031-5.
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Khazeh, Kashi, and Robert C. Winder. "Hedging Transaction Exposure Through Options and Money Markets: Empirical Findings." Multinational Business Review 14, no. 1 (March 11, 2006): 79–92. http://dx.doi.org/10.1108/1525383x200600005.
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Amer, Islam. "Modelling foreign exchange rate exposure." Journal of Economic and Administrative Sciences 30, no. 2 (November 11, 2014): 96–120. http://dx.doi.org/10.1108/jeas-03-2013-0009.
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Purpose – The purpose of this paper is to fill a gap in the foreign exchange rate exposure management literature as the existing literature has focused only on developed economics, and also the current literature on foreign exchange rate exposure of cedant insurance companies is very limited. As Egyptian insurance companies deal directly with foreign exchange rates, they face exposure to exchange rates through their international reinsurance operations. Design/methodology/approach – Martin and Mauer (2003, 2005) three-stage model is used to estimate foreign exchange rate transaction exposure for the sample of 23 Egyptian insurance companies over the period 2002-2009. However, the author has two innovations to this method. The author's first innovation is that instead of looking at the unanticipated operating income for each cedant company (as in both previous papers), this paper looks at the unanticipated operating income on an aggregate level. The author's second innovation is that instead of the model used in previous papers the author uses a model from the actuarial field that was proposed by Blum et al. (2001) for modelling foreign exchange rates with their relevant constituents (inflation and interest rate). Findings – The central finding of the study is that the foreign exchange rate exposure across the Egyptian insurance industry is not significant (at the 10 per cent level) and investigates this result. Research limitations/implications – This study has made considerable contributions to the existing academic literature, but the findings also illustrate the limitations of the research undertaken. These limitations, however, provide important directions for future research. This thesis focused exclusively on the transaction exposure that Egyptian insurance companies experience to fluctuations in the US dollar exchange rate in relation to their international reinsurance operations. As a result, investigating both translation and economic exposure was beyond the scope and purpose of this study. Practical implications – The findings of this research provide meaningful implications for industry practitioners. As Egyptian insurance companies are not immune from exchange rate risks, efforts must be made by each insurer to approximate and quantify their individual foreign exchange rate transaction exposure. Additionally, as Egyptian insurance companies increasingly operate worldwide (through the international reinsurance industry), this research and its results are significant for practitioners not only in Egypt, but also further afield. Finally, it is believed that this research will highlight greater implications for international financial players active in Egyptian financial and non-financial sectors, including banks not exposed singularly to US dollars, but to multiple currencies. One recent Egyptian example is Egypt Air, which lost an estimated US$600 million in 2013 due to foreign exchange rate fluctuations. Originality/value – Since Egyptian insurance operates worldwide, the results of this paper are of significant not only for Egyptian insurance managers but also to practitioners beyond Egypt.
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Rothschild, David, and Rajiv Sethi. "Trading Strategies and Market Microstructure: Evidence from a Prediction Market." Journal of Prediction Markets 10, no. 1 (September 20, 2016): 1–29. http://dx.doi.org/10.5750/jpm.v10i1.1179.
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We examine transaction-level data from Intrade's 2012 presidential winner market for the entire two-year period for which trading occurred. The data allow us to compute key statistics, including volume, transactions, aggression, directional exposure, holding duration, margin, and profit for each of 6,300 unique trader accounts. We identify a diverse set of trading strategies that constitute a rich market ecology. These range from arbitrage-based strategies with low and fleeting directional exposure to strategies involving large accumulated positions in one of the two major party candidates. Most traders who make directional bets do so consistently in a single direction, unlike the information traders in some canonical models of market microstructure. We present evidence suggestive of manipulation by a single large trader, and consider the possible motives for such behavior. Broader implications for the interpretation of prices in financial markets and the theory of market microstructure are drawn.
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Hagelin, Niclas, and Bengt Pramborg. "Hedging Foreign Exchange Exposure: Risk Reduction from Transaction and Translation Hedging." Journal of International Financial Management and Accounting 15, no. 1 (March 2004): 1–20. http://dx.doi.org/10.1111/j.1467-646x.2004.00099.x.
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Mulyono, Ita Puspitasari, Michael Suhardianto, and Raymundus Parulian Sihotang. "Hedging Transaction and Economic Exposure: A Solution for PT Pura Daya Prima." Journal of Applied Finance & Accounting 1, no. 2 (June 28, 2009): 227–46. http://dx.doi.org/10.21512/jafa.v1i2.123.
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Many companies use more than one currency in doing business, which make them being exposed to exchange rate risk fluctuation. Accordingly, the Company’s financial manager needs to understand how to measure the risk exposure in order to determine when and how to protect the company from the risk. PT Pura Daya Prima (PDP) is one of that companies which has long been concerned on how to mitigate its economic and transaction exposure. The purpose of this project is to help the company mitigate its risk exposure and find the best hedging technique or other mitigation strategy to minimize their risk. The result of the project is to determine the most favorable hedging policy and the best way to implement the financial instruments or products available in the market or simulated. It is expected that PT Pura Daya Prima would be able to quickly execute hedging techniques in order to prevent financial loss due to foreign exchange exposure.
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León, Carlos, Ricardo Mariño, and Carlos Cadena. "Do central counterparties reduce counterparty and liquidity risk? Empirical results." Algorithmic Finance 9, no. 1-2 (August 24, 2021): 25–34. http://dx.doi.org/10.3233/af-200341.
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A central counterparty (CCP) interposes itself between buyers and sellers of financial contracts to extinguish their bilateral exposures. Therefore, central clearing and settlement through a CCP should affect how financial institutions engage in financial markets. Though, financial institutions’ interactions are difficult to observe and analyze. Based on a unique transaction dataset corresponding to the Colombian peso non-delivery forward market, this article compares—for the first time—networks of transactions agreed to be cleared and settled by the CCP with those to be cleared and settled bilaterally. Networks to be centrally cleared and settled show significantly higher connectivity and lower distances among financial institutions. This suggests that agreeing on central clearing and settlement reduces liquidity risk. After CCP interposition, exposure networks show significantly lower connectivity and higher distances, consistent with a reduction of counterparty risk. Consequently, evidence shows CCPs induce a change of behavior in financial institutions that emerges as two distinctive economic structures for the same market, which corresponds to CCP’s intended reduction of liquidity and counterparty risks.
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Yuan, Munan, Xiaofeng Li, Xiru Li, Haibo Tan, and Jinlin Xu. "Trust Hardware Based Secured Privacy Preserving Computation System for Three-Dimensional Data." Electronics 10, no. 13 (June 25, 2021): 1546. http://dx.doi.org/10.3390/electronics10131546.
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Three-dimensional (3D) data are easily collected in an unconscious way and are sensitive to lead biological characteristics exposure. Privacy and ownership have become important disputed issues for the 3D data application field. In this paper, we design a privacy-preserving computation system (SPPCS) for sensitive data protection, based on distributed storage, trusted execution environment (TEE) and blockchain technology. The SPPCS separates a storage and analysis calculation from consensus to build a hierarchical computation architecture. Based on a similarity computation of graph structures, the SPPCS finds data requirement matching lists to avoid invalid transactions. With TEE technology, the SPPCS implements a dual hybrid isolation model to restrict access to raw data and obscure the connections among transaction parties. To validate confidential performance, we implement a prototype of SPPCS with Ethereum and Intel Software Guard Extensions (SGX). The evaluation results derived from test datasets show that (1) the enhanced security and increased time consumption (490 ms in this paper) of multiple SGX nodes need to be balanced; (2) for a single SGX node to enhance data security and preserve privacy, an increased time consumption of about 260 ms is acceptable; (3) the transaction relationship cannot be inferred from records on-chain. The proposed SPPCS implements data privacy and security protection with high performance.
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McCarthy, Scott. "Foreign Exchange Transaction Exposure Management Practices of Australian SMEs: An exploratory analysis." Small Enterprise Research 7, no. 2 (January 1999): 29–42. http://dx.doi.org/10.5172/ser.7.2.29.
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Deng, Cong, Lin You, Xianghong Tang, Gengran Hu, and Shuhong Gao. "Cuproof: Range Proof with Constant Size." Entropy 24, no. 3 (February 25, 2022): 334. http://dx.doi.org/10.3390/e24030334.
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Zero-Knowledge Proof is widely used in blockchains. For example, zk-SNARK is used in Zcash as its core technology to identifying transactions without the exposure of the actual transaction values. Up to now, various range proofs have been proposed, and their efficiency and range-flexibility have also been improved. Bootle et al. used the inner product method and recursion to construct an efficient Zero-Knowledge Proof in 2016. Later, Benediky Bünz et al. proposed an efficient range proof scheme called Bulletproofs, which can convince the verifier that a secret number lies in [0,2κ−1] with κ being a positive integer. By combining the inner-product and Lagrange’s four-square theorem, we propose a range proof scheme called Cuproof. Our Cuproof can make a range proof to show that a secret number v lies in an interval [a,b] with no exposure of the real value v or other extra information leakage about v. It is a good and practical method to protect privacy and information security. In Bulletproofs, the communication cost is 6+2logκ, while in our Cuproof, all the communication cost, the proving time and the verification time are of constant sizes.
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Hagelin, Niclas. "Why firms hedge with currency derivatives: an examination of transaction and translation exposure." Applied Financial Economics 13, no. 1 (January 2003): 55–69. http://dx.doi.org/10.1080/09603100110094501.
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Filippou, Ilias, Arie E. Gozluklu, and Mark P. Taylor. "Global Political Risk and Currency Momentum." Journal of Financial and Quantitative Analysis 53, no. 5 (October 2018): 2227–59. http://dx.doi.org/10.1017/s0022109018000686.
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Using a measure of political risk, relative to the United States, that captures unexpected political conditions, we show that political risk is priced in the cross section of currency momentum and contains information beyond other risk factors. Our results are robust after controlling for transaction costs, reversals, and alternative limits to arbitrage. The global political environment affects the profitability of the momentum strategy in the foreign exchange market; investors following such strategies are compensated for the exposure to the global political risk of those currencies they hold, that is, the past winners, and exploit the lower returns of loser portfolios. The risk compensation is mainly justified by the different exposures of foreign currencies in the momentum portfolio to U.S. political shocks, which is the main component of global political risk.
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Yamada, Yuji, and James A. Primbs. "Model Predictive Control for Optimal Pairs Trading Portfolio with Gross Exposure and Transaction Cost Constraints." Asia-Pacific Financial Markets 25, no. 1 (December 12, 2017): 1–21. http://dx.doi.org/10.1007/s10690-017-9236-z.
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Fathony, Alvan, and Ahmad Nur Bustomi. "The Implementasi Akad Isthisna’ Tanpa Bank Dalam Memenangkan Persaingan Bisnis Property (Studi Kasus di PT Samawa Proper." Perisai : Islamic Banking and Finance Journal 5, no. 2 (October 16, 2021): 204–15. http://dx.doi.org/10.21070/perisai.v5i2.1531.
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The house is one of the needs that must be fulfilled by humans, the need for housing in Indonesia is increasing every year in line with the high population growth. Based on a letter issued by the finance minister regarding the home ownership loan program, many residential property business developers offer home services in an effort to meet the need for housing. Then came the conventional mortgages and sharia mortgages. Sharia mortgages are schemes that continue to develop and attract public interest with their sharia transaction systems, either with a Murabaha or Isthisna 'contract. This study aims to find out how the practice of istishna contract is applied by the developer of PT Samawa Property Group. This type of research is descriptive qualitative research with exposure related to solving existing problems. The results of this study indicate that the contract used is the istishna contract which is able to meet the needs of the community for houses without riba transactions, clear price transparency, no fines or confiscation so that it is mutually beneficial and able to improve the welfare of the community.
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Yan, Qingyou, Le Yang, Tomas Baležentis, Dalia Streimikiene, and Chao Qin. "Optimal Dividend and Capital Injection Problem with Transaction Cost and Salvage Value: The Case of Excess-of-Loss Reinsurance Based on the Symmetry of Risk Information." Symmetry 10, no. 7 (July 12, 2018): 276. http://dx.doi.org/10.3390/sym10070276.
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This paper considers the optimal dividend and capital injection problem for an insurance company, which controls the risk exposure by both the excess-of-loss reinsurance and capital injection based on the symmetry of risk information. Besides the proportional transaction cost, we also incorporate the fixed transaction cost incurred by capital injection and the salvage value of a company at the ruin time in order to make the surplus process more realistic. The main goal is to maximize the expected sum of the discounted salvage value and the discounted cumulative dividends except for the discounted cost of capital injection until the ruin time. By considering whether there is capital injection in the surplus process, we construct two instances of suboptimal models and then solve for the corresponding solution in each model. Lastly, we consider the optimal control strategy for the general model without any restriction on the capital injection or the surplus process.
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Liu, Yufang, Wei-Guo Zhang, Rongda Chen, and Junhui Fu. "Hedging Long-Term Exposures of a Well-Diversified Portfolio with Short-Term Stock Index Futures Contracts." Mathematical Problems in Engineering 2014 (2014): 1–13. http://dx.doi.org/10.1155/2014/843240.
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It is difficult for passive portfolio strategy to manage the long-term exposure of a well-diversified portfolio because stock index futures contracts have a finite life limited by their maturity. In this paper, we investigate the problem of the rollover hedge strategy for the long-term exposure of a well-diversified portfolio. First, we consider the rollover hedge strategy for the well-diversified portfolio when the portfolio is not adjusted during the period. In order to obtain the optimal solution of the proposed model, the auxiliary models are constructed using the equivalent transformation technique. Moreover, dynamic programming is employed to derive the optimal positions of stock index futures contracts for the long-term exposure of the well-diversified portfolio. In addition, we extend the result to the case of the rollover hedge strategy with transaction costs and derive the optimal number of stock index futures contracts.
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Aulia, Lia, Kholil Nawawi, and Tjeptjep Suhandi. "ANALYSIS OF THE IMPLEMENTATION OF MONEY LOAN TRANSACTION BUSINESS IN MITRA BISNIS KELUARGA VENTURE ACCORDING TO ISLAMIC ECONOMICS." JURNAL SYARIKAH : JURNAL EKONOMI ISLAM 4, no. 2 (January 10, 2019): 99. http://dx.doi.org/10.30997/jsei.v4i2.1257.
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This study aims to find out how the review of Islamic Economics is seen from the contract in accordance with sharia principles on the implementation of loan transactions for Venture Family Business Partners in Situ Udik Village, Cibungbulang District, Bogor. This type of research is descriptive qualitative research with exposure related to existing problem solving. The results of this study indicate, according to the review of Islamic Economics, seen from the analysis of the contract, the MBK Ventura money loan does not use a contract that is in accordance with sharia principles but uses the Grameen Bank system. Grameen Bank is the provision of unsecured loans that are devoted to the poor. This 20% profit sharing shows an additional loan from MBK Ventura's capital money for MBK Ventura itself. 20% is said to contain elements of usury, because in practice there is no contract in accordance with sharia principles. From the community response, it was shown that, successful or unsuccessful in using money for business capital, still had to pay a return on capital with an additional 20%. Thus, the implementation of the MBK Ventura money loan transaction is not permitted in Islam, because there is an addition to each loan including usury
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Swenson, Deborah L. "Trade Environment Changes and the Expansion of Private Chinese Exports." Asian Economic Papers 12, no. 1 (January 2013): 108–34. http://dx.doi.org/10.1162/asep_a_00192.
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This paper examines how changes in China's trade environment contributed to the rise in private firm exports. Data from 1997 to 2009 reveal that both increased exposure to multinational firm exports in related industries and expansion in private firm imports at the broad industry level contributed to private firm export growth. The benefits of multinational exposure are particularly strong for consumer goods, and the benefits of private firm provincial imports are most strongly linked to private firm exports of capital goods and intermediate inputs. In contrast, special economic zones and technology zones did not increase private firm exports. Further investigation of the export transaction data at the product level suggest that Chinese private firm export capability was increased by (1) improvements in product quality that was fostered by proximity to multinational firms; and (2) improved access to imported intermediate inputs.
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Bratten, Brian, Monika Causholli, and Linda A. Myers. "Fair Value Exposure, Auditor Specialization, and Banks’ Discretionary Use of the Loan Loss Provision." Journal of Accounting, Auditing & Finance 35, no. 2 (November 21, 2017): 318–48. http://dx.doi.org/10.1177/0148558x17742567.
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In this study, we examine whether banks’ use of the loan loss provision (LLP) to manage earnings is associated with (a) the extent to which banks hold assets subject to fair value reporting and (b) the use of an industry specialist auditor. We find that banks with a greater proportion of assets subject to fair value reporting (i.e., higher fair value exposure) use less LLP-based earnings management but more transaction-based earnings management (i.e., earnings management achieved by timing the realization of gains/losses). We also find that banks engaging industry specialist auditors use less LLP-based earnings management. Our findings suggest that banks’ use of the LLP to manage earnings is more limited when they have access to alternative earnings management tools and when they engage an auditor with more industry knowledge. Our results should be informative to regulators, members of the banking industry, and academics interested in the earnings management behavior of banks.
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Fein, Adam J., and Erin Anderson. "Patterns of Credible Commitments: Territory and Brand Selectivity in Industrial Distribution Channels." Journal of Marketing 61, no. 2 (April 1997): 19–34. http://dx.doi.org/10.1177/002224299706100202.
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The authors propose a new theoretical rationale that explains the paired existence of both a manufacturer's decision to limit the number of intermediaries operating in a specific geographic market and a distributor's decision to limit brand assortment in a product category. Using transaction cost reasoning, they suggest that channel selectivity agreements can be understood as interrelated exchanges of pledges, or credible commitments, that counterbalance exposure to opportunism and neutralize sources of relationship instability, thereby strengthening an interorganizational relationship. The empirical results, which are based on dyadic data from 362 manufacturer–distributor relationships, are broadly supportive of their framework.
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Boulter, Terry, and Vanlapa Wongchan. "Thai Hedging Practices Post-Asian Financial Crisis." Review of Pacific Basin Financial Markets and Policies 16, no. 01 (March 2013): 1350003. http://dx.doi.org/10.1142/s0219091513500033.
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This paper provides survey evidence captured from a sample of 113 respondents to a 2008 questionnaire sent to 344 companies in Thailand. The study examines Thai hedging practices following the Asian Financial Crisis of 1997. Thai companies, like their international counterparts, rely predominantly on matching and forward contracts to hedge transaction exposure. Thai companies, however, appear to be less rigorous when it comes to internal control and supervision of derivative activity. It is recommended that Thai companies improve their risk management practices by putting into place a documented hedging policy, which includes a requirement that senior staff be actively engaged in the risk management activities of the firm.
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Monda, Mario, and Raffaele Fiume. "Dialogue with standard setters." FINANCIAL REPORTING, no. 1 (February 2018): 177–87. http://dx.doi.org/10.3280/fr2018-001006.
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There had been several international accounting principles about the accounting treatment for business combinations, over the past years. Last June 2016, the International Accounting Standards Board proposed to amend IFRS 3 Business Combinations with the aim of clarifying the definition of a business. The motivation that pushed the Board to propose the Exposure Draft was to inform that there is a diversity in practice in accounting for previously held interests in the assets and liabilities of a joint operation in two kinds of transaction, those in which an entity obtains control of a business that is a joint operation and those in which it obtains joint control of a business that is a join operation. The purpose of the following review is to identify whether the board has reached the desired objective, and leads through the historical analysis of the accounting standards concerning business combinations, the analysis of the Exposure Draft and especially the analysis of the comments letters.
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R. Stanifer, Stacy, and Ellen J. Hahn. "Analysis of Radon Awareness and Disclosure Policy in Kentucky: Applying Kingdon’s Multiple Streams Framework." Policy, Politics, & Nursing Practice 21, no. 3 (May 11, 2020): 132–39. http://dx.doi.org/10.1177/1527154420923728.
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The purpose of this article is to analyze radon awareness and disclosure policy proposed during the 2018 Kentucky General Assembly using Kingdon’s Multiple Stream Framework. Radon gas is the second leading cause of lung cancer. Exposure to radon occurs largely in the home. The proportion of homeowners who have completed radon testing remains low, and home radon testing is voluntary in most states. The Environmental Law Institute recommends states enact policies to promote radon awareness and testing. The most common radon awareness policy mandates radon disclosure during a real estate transaction. A bill to mandate radon disclosure during a real estate transaction was proposed during the 2018 Kentucky General Assembly but was met with opposition and was not filed. As a policy alternative, an administrative regulation to amend the Form for Seller’s Disclosure of Conditions was proposed to the Kentucky Real Estate Commission. Administrative regulations set forth by government regulatory agencies are equally enforceable and may be a more politically feasible alternative to enacting public policy. Nurses are positioned to promote the health of patients and populations. Nurses advocating for radon control legislation and/or administrative regulations may push radon control policy higher on the governmental decision agenda leading to policy change to decrease the development of lung cancer.
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Khanam, Fahima. "Exploring the Factors Influencing Customers Purchase Intention in Online Shopping." International Journal of Customer Relationship Marketing and Management 9, no. 4 (October 2018): 1–15. http://dx.doi.org/10.4018/ijcrmm.2018100101.
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Online shopping has increasingly become popular in Bangladesh with the introduction of globalization. Many people, specifically the younger generation, are purchasing various types of products every day online as it is convenient and saves time. Consumers are influenced to purchase online as a result of many factors including time-savings, fast delivery, ease of the transaction, and a website's user friendliness, and many more. The consumer evaluation is important to explore why a consumer intends to purchase online. The present study is an attempt to determine the factors that influence consumers' online shopping in Dhaka. Through this process, this study attempts to identify the critical factors that influence consumers' online shopping in Dhaka and to evaluate the association between these factors and consumers' online shopping habits. It also tries to determine the importance of these factors on consumers' online purchasing habits and to identify problems and suggest possible recommendations. The factors that are being considered include convenience factors, psychological factors, promotional factors, technical factors, and motivational factors. Each factor has some distinct variables. Convenience factors include less time, home delivery, and ease of transaction. Psychological factors include domain specific innovativeness, and opinion of friends and peers. Promotional factors include online ads, and social media exposure. Technical factors include user-friendliness of websites, and display of product details. Motivational factors encompass utilitarian and hedonic values. For this study the Multiple Regression Analysis Model was used. A structured questionnaire survey was conducted on 120 consumers to obtain consumers' opinion regarding how their purchase habits are sparked by different factors. The results reveal that only the home delivery system and utilitarian value of online shopping makes customers consider purchasing online. The other important influences were opinion of friend and peers, social media exposure, and display of product details. This study can hopefully shed some new insights into consumers' online purchasing habits.
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Zulfikar, Ahmad Arif, and Pidayan Sasnifa. "Transaction in non-cash payments through Ovo application: an Islamic judgment study by the Mazhab Syafi'i." Ulul Albab: Jurnal Studi dan Penelitian Hukum Islam 3, no. 2 (April 30, 2020): 219. http://dx.doi.org/10.30659/jua.v3i2.8038.
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Along with the development of technology, nowadays payment can be done through smart phones with applications, those application enable transactions to pay for goods or services only through websites, credit cards or similar. OVO is one of smartphone applications available. The purpose of this article is to analyze OVO-related services in online transportation payments based on the perspective of shafi'i fiqh. The research method used is normative law, the specification of this study is descriptive analysis which is in the form of detailed and measurable exposure analyzed with an applicable legal norm, while data analysis techniques used is content analysis. The results show that based on the perspective of Ulema 'Syafi'iyah in terms of objectives and OVO application transactions, the contract used was a wadi'ah contract, but the OVO application according to the wadi'ah category of the user category in fiqh science was invalid because the user could not take money or balance on the application, while in theory the balance or money is should be the user's full ownership.
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Sussangkarn, Chalongphob. "Promoting Local Currency Usage in the Region." Asian Economic Papers 19, no. 2 (June 2020): 1–16. http://dx.doi.org/10.1162/asep_a_00768.
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This paper focuses on policies to promote the greater use of regional currencies in intra-regional trade and investment. This will reduce the dominance of the U.S. dollar and lessen the region's exposure to U.S. monetary conditions and monetary policy. A key focus in this paper is on policies to help set up efficient currency exchange markets to reduce currency exchange transaction costs. This is fundamental, as high currency exchange spreads between local currencies discourage local currency usage for trade and investment. China's policy to internationalize the RMB and set up offshore direct foreign exchange markets between the RMB and other currencies is also highlighted. Other important issues include the Local Currency Settlement Framework, the Asian Bond Market Initiative, and Asian Bond Funds.
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Thompson, Neil A., Andrea M. Herrmann, and Marko P. Hekkert. "SME Knowledge Commercialization Through Public Sector Partnerships." International Journal of Innovation and Technology Management 15, no. 03 (May 14, 2018): 1850021. http://dx.doi.org/10.1142/s0219877018500219.
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Collaborating with public research organizations (PROs) helps SMEs acquire the knowledge and skills they need to successfully innovate. But do they also help SMEs reduce their exposure to involuntary knowledge misappropriation and legitimacy deficits? Building from transaction economics and population ecology theories, we hypothesize that innovative SMEs collaborate with PROs to not only co-develop knowledge, but also to mitigate the risk that knowledge will be misappropriated from larger firms as well as to build overall organizational legitimacy. Binary and ordinal regression analyses using the EIM Technology Panel including 779 innovative SMEs in the Netherlands reveal that some of the variations in SME innovation partnership behavior may indeed be explained by efforts to avoid knowledge misappropriation and gain endorsements and affiliation with highly legitimate PROs.
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Hamzah, Siti Raihana, Norizarina Ishak, and Ahmad Fadly Nurullah Rasedee. "Risk shifting elimination and risk sharing exposure in equity-based financing – a theoretical exposition." Managerial Finance 44, no. 10 (October 8, 2018): 1210–26. http://dx.doi.org/10.1108/mf-05-2017-0187.
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Purpose The purpose of this paper is to examine incentives for risk shifting in debt- and equity-based contracts based on the critiques of the similarities between sukuk and bonds. Design/methodology/approach This paper uses a theoretical and mathematical model to investigate whether incentives for risk taking exist in: debt contracts; and equity contracts. Findings Based on this theoretical model, it argues that risk shifting behaviour exists in debt contracts only because debt naturally gives rise to risk shifting behaviour when the transaction takes place. In contrast, equity contracts, by their very nature, involve sharing transactional risk and returns and are thus thought to make risk shifting behaviour undesirable. Nonetheless, previous researchers have found that equity-based financing also might carry risk shifting incentives. Even so, this paper argues that the amount of capital provided and the underlying assets must be considered, especially in the event of default. Through mathematical modelling, this element of equity financing can make risk shifting unattractive, thus making equity financing more distinct than debt financing. Research limitations/implications Global awareness of the dangers of debt should be increased as a means of reducing the amount of debt outstanding globally. Although some regulators suggest that sukuk replaces debt, they must also be aware that imitative sukuk poses the same threat to efforts to avoid debt. In short, efforts to ensure future financial stability cannot address only debts or bonds but must also address those types of sukuk that mirrors bonds in their operation. In the wake of the global financial crisis, amid the frantic search for ways of protecting against future financial shocks, this analysis aims to help create future stability by encouraging market players to avoid debt-based activities and promoting equity-based instruments. Practical implications This paper’s findings are relevant for countries that feature more than one type of financial market (e.g. Islamic and conventional) because risk shifting behaviour can degrade economic and financial stability. Originality/value This paper differs from the previous literature in two important ways, viewing risk shifting behaviour not only in relation to debt or bonds but also when set against debt-based sukuk, which has been subjected to similar criticism. Indeed, to the extent that debts and bonds encourage risk shifting behaviour and threaten the entire financial system, so, too, can imitation sukuk or debt-based sukuk. Second, this paper is unique in exploring the ability of equity features to curb equityholders’ incentive to engage in risk shifting behaviour. Such an examination is necessary for the wake of the global financial crisis, for researchers and economists now agree that risk shifting must be controlled.
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Polishchuk, L., O. Shchetinin, and O. Shestoperov. "Intermediaries between Private Sector and the Government: Helping Business or Participating in Corruption?" Voprosy Ekonomiki, no. 3 (March 20, 2008): 106–23. http://dx.doi.org/10.32609/0042-8736-2008-3-106-123.
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The paper explores economic implications of the presence of intermediaries assisting private individuals and firms in meeting government rules and regulations. Conventional advantages of intermediaries include gains due to specialization and the economy of scale; however if government service is affected by corruption, intermediaries in addition allow to reduce "transaction costs" of corrupt agreements and in particular - the risks of exposure of such illicit dealings. It is shown that in such circumstances intermediaries benefit corrupt bureaucracy, possibly at the expense of the private sector. Results of surveys conducted in recent years are used in describing the present state and trends in the intermediaries sector in Russia, and evidence is presented that some intermediaries indeed resort to corruption in serving their clients. The link between the intermediaries sector dynamics and deregulation and administrative reform is analyzed.
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Kumar, Gaurav, and Arun Kumar Misra. "Long run commonality in Indian stocks: empirical evidence from national stock exchange of India." Journal of Indian Business Research 12, no. 4 (May 20, 2020): 441–58. http://dx.doi.org/10.1108/jibr-09-2016-0091.
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Purpose The purpose of this paper is to investigate long-run commonality in liquidity using multiple proxies computed from limited order book data of NIFTY50 stocks. The findings indicate the existence of systematic liquidity or commonality on NIFTY50 market and comprising industries. Design/methodology/approach The sample comprises all intraday transactions corresponding to NIFTY 50 stocks for April 2015. The study runs firm by firm time series regressions to test the concept of long-run commonality, while controlling other effects. Findings Strong evidence is found in support of long-run commonality across three liquidity measures. On the basis of significance (10%) of long-run commonality beta (βLR), the strength of long-run commonality is found to be highest in natural resources and infrastructure sector. Portfolios having greater exposure to these sectors will face diversification risk to a great extent. Practical implications Knowledge of long-run commonality helps portfolio managers in formulating diversification strategies and reshuffling the portfolio over the period. Commonality risk being non-diversifiable is a policy concern for regulators and central bankers. Its empirical evidence will assist in managing exchange organization and thus preventing market crashes because of sudden liquidity evaporation. Originality/value Although there are recent studies documenting commonality in short run, little empirical work has been done on commonality in the long run and in emerging markets such as India. This research contributes to the literature by testing concept of commonality in long-run on NIFTY50 stocks using detailed transaction data from National Stock Exchange.
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Bae, Deog Sang. "INTERNAL CREDIT RATING FRAMEWORK FOR REAL ASSET INVESTMENT." International Journal of Strategic Property Management 24, no. 1 (October 10, 2019): 38–50. http://dx.doi.org/10.3846/ijspm.2019.10853.
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Real asset investment, which is assumed to be worthier than traditional assets in regards to exposure to income volatility, has become central to investment portfolios in financial institutions. However, the features of illiquidity and uniqueness involved in an individual real asset deal require private investors to review the full dimensions associated with the transaction structure. Banks and global credit rating agencies assess the quality of products by relying heavily on qualitative research executed by human insights and experiences. Such an approach ensures the comprehensiveness of the review process but it requires excessive resources in time and money. This study presents an internal rating system that instantly screens features of a deal proposal and provides a rating compatible with the global rating standard. The result shows that the outcomes created by this model are mostly clustered from BBB to BB. These findings match the average ratings for real assets, as determined by global rating agencies, which strengthens the practicality of the proposed model.
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Rosyadi Nasution, Budiman. "ANALYSIS OF APPLICATION OF ACCOUNTING INFORMATION SYSTEM IN PROCESSING SALES TRANSACTION AT PT. DAIHATSU ASTRA MOTOR SISINGAMANGARAJA." MORFAI JOURNAL 1, no. 2 (December 31, 2021): 361–64. http://dx.doi.org/10.54443/morfai.v1i2.117.
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This study aims to examine the sales accounting information system implemented by PT Daihatsu Astra Motor Sisingamangaraja. Then it can be identified whether the information system has been implemented according to the right internal control structure or not and to determine the company's development through financial ratios that are limited to the sales department. This type of research is a case study, which contains exposure or relevant data from the results of research on the object. Qualitative methods are used in flowchart analysis and quantitative methods are used to calculate financial ratios that are limited to sales. Primary data is data that comes from the original source and is collected specifically for the purposes of the research being conducted. Secondary data is data produced by companies such as financial statements and accounting records. Data collection methods are interviews and direct observation. The results of this study are overall PT Daihatsu Astra Motor Sisingamangaraja has carried out car sales activities, spare parts / spare parts and service services with an accounting information system in accordance with the components of the internal control structure model. The majority of transactions that occurred at PT Daihatsu Astra Motor Sisingamangaraja actually decreased, this was due to the author's limitations in obtaining related financial statement information. Thus, it can be concluded that the accounting information system applied by the company is mostly appropriate and effective because it is appropriate so that it can support internal sales control.
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Colson, Robert H., Robert Bloomfield, Theodore E. Christensen, Karim Jamal, Stephen Moehrle, James Ohlson, Stephen Penman, Thomas Stober, Shyam Sunder, and Ross L. Watts. "Response to the Financial Accounting Standards Board’s and the International Accounting Standards Board’s Joint Discussion Paper Entitled Preliminary Views on Revenue Recognition in Contracts with Customers." Accounting Horizons 24, no. 4 (December 1, 2010): 689–702. http://dx.doi.org/10.2308/acch.2010.24.4.689.
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SYNOPSIS: The FASB and the IASB recently issued a joint discussion paper entitled, Preliminary Views on Revenue Recognition in Contracts with Customers. The boards requested comments on whether their proposed model for revenue recognition would improve the usefulness of the financial statement information for financial decision makers. This paper summarizes the AAA’s Financial Accounting Standards Committee’s responses to several of the boards’ specific questions. We support the boards’ proposed comprehensive revenue recognition standard based on the following options: (1) the customer consideration approach (based on initial contract price measurement); (2) no recognition of revenue at contract inception (by assigning the initial contract price to performance obligations); and (3) allocation of the transaction price to multiple performance obligations based on the relative stand-alone prices of each performance obligation. We also recommend that the boards carefully consider the following clarifications as they develop the final exposure draft. The formal definition should specify that the contract be an “enforceable” agreement. The measurement of a performance obligation must be verifiable. While the transfer of an asset to the customer or the acceptance of a service by the customer normally signals the recognition of revenue, we encourage the boards to carefully consider situations (like long-term construction or mining) when the completion of intermediate performance obligations could trigger revenue recognition prior to the transfer of title. Absent special consideration of these situations, companies may be influenced to write contracts in suboptimal ways in an effort to recognize revenue continuously throughout a long-term construction project or in the process of mining or farming. Finally, we highlight difficulties that may arise in allocating the initial transaction price to multiple performance obligation contracts when the individual performance obligations are not normally sold on a stand-alone basis.
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Naffa, Helena, and Máté Fain. "Performance measurement of ESG-themed megatrend investments in global equity markets using pure factor portfolios methodology." PLOS ONE 15, no. 12 (December 22, 2020): e0244225. http://dx.doi.org/10.1371/journal.pone.0244225.
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ESG factors are becoming mainstream in portfolio investment strategies, attracting increasing fund inflows from investors who are aligning their investment values to Sustainable Development Goals (SDG) declared by the United Nations Principles for Responsible Investments. Do investors sacrifice return for pursuing ESG-aligned megatrend goals? The study analyses the risk-adjusted financial performance of ESG-themed megatrend investment strategies in global equity markets. The analysis covers nine themes for the period 2015–2019: environmental megatrends covering energy efficiency, food security, and water scarcity; social megatrends covering ageing, millennials, and urbanisation; governance megatrends covered by cybersecurity, disruptive technologies, and robotics. We construct megatrend factor portfolios based on signalling theory and formulate a novel measure for stock megatrend exposure (MTE), based on the relative fund flows into the corresponding thematic ETFs. We apply pure factor portfolios methodology based on constrained WLS cross-sectional regressions to calculate Fama-French factor returns. Time-series regression rests on the generalised method of moments estimator (GMM) that uses robust distance instruments. Our findings show that each environmental megatrend, as well as the disruptive technologies megatrend, yielded positive and significant alphas relative to the passive strategy, although this outperformance becomes statistically insignificant in the Fama-French 5-factor model context. The important result is that most of the megatrend factor portfolios yielded significant non-negative alphas; which supports our assumption that megatrend investing strategy promotes SDGs while not sacrificing returns, even when accounting for transaction costs up to 50bps/annum. Higher transaction costs, as is the case for some of these ETFs with expense ratios reaching 80-100bps, may be an indication of two things: ESG-themed megatrend investors were willing to sacrifice ca. 30-50bps of annual return to remain aligned with sustainability targets, or that expense ratio may well decline in the future.
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Wu, Yun-Hsuan, Spencer Moore, Yu Ma, and Laurette Dube. "Longitudinal geo-referenced field evidence for the heightened BMI responsiveness of obese women to price discounts on carbonated soft drinks." PLOS ONE 16, no. 12 (December 29, 2021): e0261749. http://dx.doi.org/10.1371/journal.pone.0261749.
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There is increasing interest in the effect that food environments may have on obesity, particularly through mechanisms related to the marketing and consumption of calorie-dense, nutrient-poor foods and sugary beverages. Price promotions, such as temporary price discounts, have been particularly effective in the marketing of carbonated soft drinks (CSDs) among consumers. Research has also suggested that the purchasing behavior of consumer groups may be differentially sensitive to price discounts on CSDs, with obese women particularly sensitive. In addition, the intensity of price discount in a person’s food environment may also vary across geography and over time. This study examines whether the weight change of obese women, compared to overweight or normal BMI women, is more sensitive to the intensity of price discounts on CSDs in the food environment. This study used longitudinal survey data from 1622 women in the Montreal Neighborhood Networks and Health Aging (MoNNET-HA) Panel. Women were asked to report their height and weight in 2008, 2010 and 2013 in order to calculate women’s BMI in 2008 and their change of weight between 2008 and 2013. Women’s exposure to an unhealthy food environment was based on the frequency in which their neighborhood food stores placed price discounts on CSDs in 2008. The price discount frequency on CSDs within women’s neighborhoods was calculated from Nielsen point-of sales transaction data in 2008 and geocoded to participant’s forward sortation area. The prevalence of obesity and overweight among MoNNET-HA female participants was 18.3% in 2008, 19.9% in 2010 and 20.7% in 2013 respectively. Results showed that among obese women, exposure to unhealthy food environments was associated with a 3.25 kilogram (SE = 1.35, p-value = 0.02) weight gain over the five-year study period. Exposure to price discounts on CSDs may disproportionately affect and reinforce weight gain in women who are already obese.
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Rende, Jonas. "Pairs trading with the persistence-based decomposition model." Managerial Economics 20, no. 2 (May 10, 2020): 151. http://dx.doi.org/10.7494/manage.2019.20.2.151.
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Recently, the persistence-based decomposition (PBD) model has been introduced to the scientific community by Rende et al. (2019). It decomposes a spread time series between two securities into three components capturing infinite, finite, and no shock persistence. The authors provide empirical evidence that the model adopts well to noisy high-frequency data in terms of model fitting and prediction. We put the PBD model to test on a large-scale high-frequency pairs trading application, using SP 500 minute-by-minute data from 1998 to 2016. After accounting for execution limitations (waiting rule, volume constraints, and short-selling fees) the PBD model yields statistically significant and economically meaningful annual returns after transaction costs of 9.16 percent. These returns can only partially be explained by the exposure to common risk. In addition, the model is superior in terms of risk-return metrics. The model performs very well in bear markets. We quantify the impact of execution limitations on risk and return measures by relaxing backtesting restrictions step-by-step. If no restrictions are imposed, we find annual returns after costs of 138.6 percent.
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Chen, Xueer, and Chao Wang. "Information Disclosure in China’s Rising Securitization Market." International Journal of Financial Studies 9, no. 4 (December 1, 2021): 66. http://dx.doi.org/10.3390/ijfs9040066.
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E-commerce and FinTech are currently booming in China. The growing consumer market is accompanied by internet finance, by which consumers can easily borrow money from financial institutions online. As a result, the growing risks of financial institutions are of concern to the government and regulatory bodies. Consequently, the securitization market in China is seeing rapid growth that could affect financial stability. Applying FinTech and emerging technologies in securitization might be an effective way to protect against these risks. This paper studies the question of whether China needs a higher standard of information transparency in order to protect against its risks against the background of digital transformation. We analyzed the determinants of securitization in the Chinese banking sector, relying on data on banks for two periods: pre-2017Q4 and post-2017Q4. The main findings of the paper demonstrate that the application of FinTech in China’s banking industry resulted in less information asymmetry. The risk exposure was the most significant determinant in general. Higher risk exposures increased securitization transaction volumes, which reflects securitization with adverse selection problems between the originator and investors. Liquidity and profitability, as important determinants indicating the moral hazard problem, also affected securitization pre-2017Q4, but liquidity and profitability were found to be unimportant determinants after the application of FinTech (the post-2017Q4 period). Moreover, this study finds that the effects of the adverse selection and moral hazard problems varied in different types of banks. Overall, our findings suggest that the Chinese securitization market needs a higher standard of information transparency.
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Lagasse, Linda L., Elisabeth Conradt, Sarah L. Karalunas, Lynne M. Dansereau, Jonathan E. Butner, Seetha Shankaran, Henrietta Bada, Charles R. Bauer, Toni M. Whitaker, and Barry M. Lester. "Transactional relations between caregiving stress, executive functioning, and problem behavior from early childhood to early adolescence." Development and Psychopathology 28, no. 3 (July 18, 2016): 743–56. http://dx.doi.org/10.1017/s0954579416000286.
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AbstractDevelopmental psychopathologists face the difficult task of identifying the environmental conditions that may contribute to early childhood behavior problems. Highly stressed caregivers can exacerbate behavior problems, while children with behavior problems may make parenting more difficult and increase caregiver stress. Unknown is: (a) how these transactions originate, (b) whether they persist over time to contribute to the development of problem behavior and (c) what role resilience factors, such as child executive functioning, may play in mitigating the development of problem behavior. In the present study, transactional relations between caregiving stress, executive functioning, and behavior problems were examined in a sample of 1,388 children with prenatal drug exposures at three developmental time points: early childhood (birth to age 5), middle childhood (ages 6 to 9), and early adolescence (ages 10 to 13). Transactional relations differed between caregiving stress and internalizing versus externalizing behavior. Targeting executive functioning in evidence-based interventions for children with prenatal substance exposure who present with internalizing problems and treating caregiving psychopathology, depression, and parenting stress in early childhood may be particularly important for children presenting with internalizing behavior.
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Brunjes, Benjamin M. "Reducing risk and leveraging markets: The impact of financial structure on federal contractor performance." Journal of Strategic Contracting and Negotiation 4, no. 1-2 (March 2018): 6–29. http://dx.doi.org/10.1177/2055563619858613.
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This paper analyzes how financial controls, as established through the payment structure, are used and whether they influence federal contractor performance. These payment structures include variants on three primary types of contract: firm fixed-price, cost-reimbursement, and time-and-materials. Each of these payment structures creates different performance incentives for contractors, provides government contract managers with varying levels of information on contractor activities, and alters the dispersion of risk between the partners. The Federal Acquisition Regulation (FAR) prefers fixed-price contracts whenever possible, as they theoretically place the risk on the contractor, who is required to finish the work for the allocated price. Based on an analysis of nearly 25,000 federal definitive contracts that concluded between 2005 and 2014, findings indicate federal contracting officials tend to use payment structures in expected ways: to limit exposure to risk, leverage market forces, and reduce transaction costs when possible. Findings also show that there are important performance differences between contracts that use different financial structures, even when accounting for information asymmetries, asset specificity, and the complexity of the contracted work. Cost-reimbursement contracts are highly correlated with early contract termination.
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Wang, Yung-Hsin, Shih-Chih Chen, and An-Jung Tseng. "Service-Oriented Analysis and Design for Constructing the Online Sales Process Integration." Australian Journal of Business and Management Research 02, no. 05 (June 23, 2012): 58–68. http://dx.doi.org/10.52283/nswrca.ajbmr.20120205a08.
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In recent years, enterprises try to develop the online sales systems in order to reach various customers in different places and expect to bring better profit or company exposure via the internet and mobile device channels. However, different platforms, technologies, transaction rules, policies and processes have resulted in data dispersion and business logic inconsistency that is hard for the company to audit and manage. This study presented a service-oriented analysis and design of the online sales process integration for our case company. We analyzed and modeled the processes using the service-oriented modeling and architecture (SOMA) approach to identify service candidates, and also utilized service component architecture (SCA) to create web services for activities required for the processes. Based on the function of services, business rules and logic, the corresponding service abstraction layer of the integrated online sales process is established. Finally, this study used the Business Process Execution Language (BPEL) to realize the service orchestration and composition, thus achieving service reusability. With the SOA solution, the case company can efficiently integrate resources and that the enterprise system become more flexible, agile and cost-effective.