Abstract: Different countries have introduced different schemes
and policies to counter global warming. The rationale behind the
proposed policies and the potential barriers to successful
implementation of the policies adopted by the countries were
analyzed and estimated based on different models. It is argued that
these models enhance the transparency and provide a better
understanding to the policy makers. However, these models are
underpinned with several structural and baseline assumptions. These
assumptions, modeling features and future prediction of emission
reductions and other implication such as cost and benefits of a
transition to a low-carbon economy and its economy wide impacts
were discussed. On the other hand, there are potential barriers in the
form political, financial, and cultural and many others that pose a
threat to the mitigation options.
Abstract: Predicting earnings management is vital for the capital
market participants, financial analysts and managers. The aim of this
research is attempting to respond to this query: Is there a significant
difference between the regression model and neural networks’
models in predicting earnings management, and which one leads to a
superior prediction of it? In approaching this question, a Linear
Regression (LR) model was compared with two neural networks
including Multi-Layer Perceptron (MLP), and Generalized
Regression Neural Network (GRNN). The population of this study
includes 94 listed companies in Tehran Stock Exchange (TSE)
market from 2003 to 2011. After the results of all models were
acquired, ANOVA was exerted to test the hypotheses. In general, the
summary of statistical results showed that the precision of GRNN did
not exhibit a significant difference in comparison with MLP. In
addition, the mean square error of the MLP and GRNN showed a
significant difference with the multi variable LR model. These
findings support the notion of nonlinear behavior of the earnings
management. Therefore, it is more appropriate for capital market
participants to analyze earnings management based upon neural
networks techniques, and not to adopt linear regression models.
Abstract: The paper identifies the features of Polish sports clubs
in the particular organizational forms: profit and nonprofit.
Identification and description of these features is carried out in terms
of financial efficiency of the given organizational form. Under the
terms of the efficiency the research allows you to specify the
advantages of particular organizational sports club form and the
following limitations. Paper considers features of sports clubs in
range of Polish conditions as legal regulations. The sources of the
functioning efficiency of sports clubs may lie in the organizational
forms in which they operate. Each of the available forms can be
considered either a for-profit or nonprofit enterprise. Depending on
this classification there are different capabilities of increasing
organizational and financial efficiency of a given sports club. Authors
start with general classification and difference between for-profit and
non-profit sport clubs. Next identifies specific financial and
organizational conditions of both organizational form and then show
examples of mixed activity forms and their efficiency effect.
Abstract: In this paper we present a classification of the various technologies applied for the solution of the portfolio selection problem according to the discipline and the methodological framework followed. We provide a concise presentation of the emerged categories and we are trying to identify which methods considered obsolete and which lie at the heart of the debate. On top of that, we provide a comparative study of the different technologies applied for efficient portfolio construction and we suggest potential paths for future work that lie at the intersection of the presented techniques.
Abstract: This paper seeks to assess the implications of
insurance to foreign direct investment inflow in Nigeria. Multiple
linear regression technique and correlation matrix test were employed
to measure the extent to which foreign direct investment was
influenced. The result showed that insurance premium (IP), asset size
of insurance industry (AS), and total investment of the industry (TI)
impacted significantly and positively on foreign direct investment
inflow in Nigeria. There should be effective risk transfer mechanism
and financial intermediation, which gives the investor confidence in
the risk management strength of the host country.
Abstract: Financial innovations can be regarded as the cause
and the effect of the evolution of the financial system. Most of
financial innovations are created by various financial institutions for
their own purposes and needs. However, due to their diversity,
financial innovations can be also applied by various business entities
(other than financial institutions).
This paper focuses on the potential application of financial
innovations by non-financial companies. It is assumed that financial
innovations may be effectively applied in all fields of corporate
financial decisions integrating financial management with the risk
management process. Appropriate application of financial
innovations may enhance the development of the company and
increase its value by improving its financial situation and reducing
the level of risk. On the other hand, misused financial innovations
may become the source of extra risk for the company threatening its
further operation.
The main objective of the paper is to identify the major types of
financial innovations offered to non-financial companies by the
banking system in Poland. It also aims at identifying the main factors
determining the creation of financial innovations in the banking
system in Poland and indicating future directions of their
development.
This paper consists of conceptual and empirical part. Conceptual
part based on theoretical study is focused on the determinants of the
process of financial innovations and their application by the nonfinancial
companies. Theoretical study is followed by the empirical
research based on the analysis of the actual offer of the 20 biggest
banks operating in Poland with regard to financial innovations
offered to SMEs and large corporations. These innovations are
classified according to the main functions of the integrated financial
management, such as financing, investment, working capital
management and risk management.
Empirical study has proved that the biggest banks operating in the
Polish market offer to their business customers many types and
classes of financial innovations. This offer appears vast and adequate
to the needs and purposes of the Polish non-financial companies. It
was observed that financial innovations pertained to financing
decisions dominate in the banks’ offer. However, due to high
diversification of the offered financial innovations, business
customers may effectively apply them in all fields and areas of
integrated financial management. It should be underlined, that the
banks’ offer is highly dispersed, which may limit the implementation
of financial innovations in the corporate finance. It would be also
recommended for the banks operating in the Polish market to
intensify the education campaign aiming at increasing knowledge
about financial innovations among business customers.
Abstract: Despite the financial crisis and ongoing need for cost
cutting, companies all around the world heavily invest in Information
Systems (IS) and underlying Information Technology (IT).
Proliferation of governance of enterprise IT helps companies manage,
or rather, governs IS as a primary business function with executive
management involved in making decision about IS and IT. The
business value of IT is raising with the involvement of the executive
management in IT decision making process and quality IT
governance mechanisms in place. In this paper the practice of
governing the enterprise IT will be investigated on a sample of the
largest 100 Croatian companies. Research questions posed here will
reveal if there are some formal IT governance mechanisms, are there
any differences in perceived role of IS and IT between CIOs (Chief
Information Officers) and CEOs (Chief Executive Officers) of the
sampled companies and what are the mechanisms to govern massive
investment in enterprise IT.
Abstract: Commercial banks in Nigeria adopted many strategies
to attract fresh deposits including the use of high deposit rate.
However, pricing of banking services moved in favor of the banks at
the expense of customers, resulting in their seeking other investment
alternatives rather than saving their money in the bank. Both deposit
and lending rates were greatly influenced by the Central Bank of
Nigeria (CBN) decision on interest rate. Therefore, commercial bank
effort to attract deposits via manipulation of her rates was greatly
limited, otherwise the banks will be giving out more than it earned.
The study aimed at examining the relationship between interest rate
and fixed fund deposit of commercial banks, how policy-controlled
interest rate affected commercial bank’s fixed fund deposit The
researcher employed ordinary least square technique, using, multiple
linear regression, unrestricted vector auto-regression, correlation
matrix test, granger causality and impulse response graph in the
analysis. Commercial bank’s interest rates affected commercial
bank’s fixed fund deposit significantly while policy-controlled
interest rate did not significantly transmit through the commercial
bank’s interest rates to affect fixed fund deposit. While commercial
banks seek creative ways to expand their fixed fund deposit, policy
authorities in Nigeria should better coordinate interest rate fluctuation
and induce competition in the entire financial sector.
Abstract: In this article, we deal with a variant of the classical
course timetabling problem that has a practical application in many
areas of education. In particular, in this paper we are interested in
high schools remedial courses. The purpose of such courses is to
provide under-prepared students with the skills necessary to succeed
in their studies. In particular, a student might be under prepared in
an entire course, or only in a part of it. The limited availability
of funds, as well as the limited amount of time and teachers at
disposal, often requires schools to choose which courses and/or which
teaching units to activate. Thus, schools need to model the training
offer and the related timetabling, with the goal of ensuring the
highest possible teaching quality, by meeting the above-mentioned
financial, time and resources constraints. Moreover, there are some
prerequisites between the teaching units that must be satisfied. We
first present a Mixed-Integer Programming (MIP) model to solve
this problem to optimality. However, the presence of many peculiar
constraints contributes inevitably in increasing the complexity of
the mathematical model. Thus, solving it through a general-purpose
solver may be performed for small instances only, while solving
real-life-sized instances of such model requires specific techniques
or heuristic approaches. For this purpose, we also propose a heuristic
approach, in which we make use of a fast constructive procedure
to obtain a feasible solution. To assess our exact and heuristic
approaches we perform extensive computational results on both
real-life instances (obtained from a high school in Lecce, Italy) and
randomly generated instances. Our tests show that the MIP model is
never solved to optimality, with an average optimality gap of 57%.
On the other hand, the heuristic algorithm is much faster (in about the
50% of the considered instances it converges in approximately half of
the time limit) and in many cases allows achieving an improvement
on the objective function value obtained by the MIP model. Such an
improvement ranges between 18% and 66%.
Abstract: This study analyzes the critical gaps in the
architecture of European stability and the expected role of the
banking union as the new important step towards completing the
Economic and Monetary Union that should enable the creation of
safe and sound financial sector for the euro area market. The single
rulebook together with the Single Supervisory Mechanism and the
Single Resolution Mechanism - as two main pillars of the banking
union, should provide a consistent application of common rules and
administrative standards for supervision, recovery and resolution of
banks – with the final aim of replacing the former bail-out practice
with the bail-in system through which possible future bank failures
would be resolved by their own funds, i.e. with minimal costs for
taxpayers and real economy. In this way, the vicious circle between
banks and sovereigns would be broken. It would also reduce the
financial fragmentation recorded in the years of crisis as the result of
divergent behaviors in risk premium, lending activities and interest
rates between the core and the periphery. In addition, it should
strengthen the effectiveness of monetary transmission channels, in
particular the credit channels and overflows of liquidity on the money
market which, due to the fragmentation of the common financial
market, has been significantly disabled in period of crisis. However,
contrary to all the positive expectations related to the future
functioning of the banking union, major findings of this study
indicate that characteristics of the economic system in which the
banking union will operate should not be ignored. The euro area is an
integration of strong and weak entities with large differences in
economic development, wealth, assets of banking systems, growth
rates and accountability of fiscal policy. The analysis indicates that
low and unbalanced economic growth remains a challenge for the
maintenance of financial stability and this problem cannot be
resolved just by a single supervision. In many countries bank assets
exceed their GDP by several times and large banks are still a matter
of concern, because of their systemic importance for individual
countries and the euro zone as a whole. The creation of the Single
Supervisory Mechanism and the Single Resolution Mechanism is a
response to the European crisis, which has particularly affected
peripheral countries and caused the associated loop between the
banking crisis and the sovereign debt crisis, but has also influenced
banks’ balance sheets in the core countries, as the result of crossborder
capital flows. The creation of the SSM and the SRM should
prevent the similar episodes to happen again and should also provide
a new opportunity for strengthening of economic and financial
systems of the peripheral countries. On the other hand, there is a
potential threat that future focus of the ECB, resolution mechanism
and other relevant institutions will be extremely oriented towards
large and significant banks (whereby one half of them operate in the
core and most important euro area countries), and therefore it remains
questionable to what extent will the common resolution funds will be used for rescue of less important institutions. Recent geopolitical
developments will be the optimal indicator to show whether the
previously established mechanisms are sufficient enough to maintain
the adequate financial stability in the euro area market.
Abstract: In this paper, we provided a literature survey on the
artificial stock problem (ASM). The paper began by exploring the
complexity of the stock market and the needs for ASM. ASM
aims to investigate the link between individual behaviors (micro
level) and financial market dynamics (macro level). The variety of
patterns at the macro level is a function of the AFM complexity. The
financial market system is a complex system where the relationship
between the micro and macro level cannot be captured analytically.
Computational approaches, such as simulation, are expected to
comprehend this connection. Agent-based simulation is a simulation
technique commonly used to build AFMs. The paper proceeds by
discussing the components of the ASM. We consider the roles
of behavioral finance (BF) alongside the traditionally risk-averse
assumption in the construction of agent’s attributes. Also, the
influence of social networks in the developing of agents interactions is
addressed. Network topologies such as a small world, distance-based,
and scale-free networks may be utilized to outline economic
collaborations. In addition, the primary methods for developing
agents learning and adaptive abilities have been summarized.
These incorporated approach such as Genetic Algorithm, Genetic
Programming, Artificial neural network and Reinforcement Learning.
In addition, the most common statistical properties (the stylized facts)
of stock that are used for calibration and validation of ASM are
discussed. Besides, we have reviewed the major related previous
studies and categorize the utilized approaches as a part of these
studies. Finally, research directions and potential research questions
are argued. The research directions of ASM may focus on the macro
level by analyzing the market dynamic or on the micro level by
investigating the wealth distributions of the agents.
Abstract: We apply the non-parametric, unconditional,
hyperbolic order-α quantile estimator to appraise the relative
efficiency of Microfinance Institutions in Africa in terms of outreach.
Our purpose is to verify if these institutions, which must constantly
try to strike a compromise between their social role and financial
sustainability are operationally efficient.
Using data on African MFIs extracted from the Microfinance
Information eXchange (MIX) database and covering the 2004 to
2006 periods, we find that more efficient MFIs are also the most
profitable. This result is in line with the view that social performance
is not in contradiction with the pursuit of excellent financial
performance. Our results also show that large MFIs in terms of asset
and those charging the highest fees are not necessarily the most
efficient.
Abstract: Current systems complexity has reached a degree that
requires addressing conception and design issues while taking into
account environmental, operational, social, legal and financial
aspects. Therefore, one of the main challenges is the way complex
systems are specified and designed. The exponential growing effort,
cost and time investment of complex systems in modeling phase
emphasize the need for a paradigm, a framework and an environment
to handle the system model complexity. For that, it is necessary to
understand the expectations of the human user of the model and his
limits. This paper presents a generic framework for designing
complex systems, highlights the requirements a system model needs
to fulfill to meet human user expectations, and suggests a graphbased
formalism for modeling complex systems. Finally, a set of
transformations are defined to handle the model complexity.
Abstract: The main objective of this article is to examine the
impact of interest rates on investments in Poland in the context of
financial crisis. The paper also investigates the dependence of bank
loans to enterprises on interbank market rates. The article studies the
impact of interbank market rate on the level of investments in Poland.
Besides, this article focuses on the research of the correlation
between the level of corporate loans and the amount of investments
in Poland in order to determine the indirect impact of central bank
interest rates through the transmission mechanism of monetary policy
on the real economy. To achieve the objective we have used
econometric and statistical research methods like: econometric model
and Pearson correlation coefficient.
This analysis suggests that the central bank reference rate
inversely proportionally affects the level of investments in Poland
and this dependence is moderate. This is also important issue because
it is related to preparing of Poland to accession to euro area. The
research is important from both theoretical and empirical points of
view. The formulated conclusions and recommendations determine
the practical significance of the paper which may be used in the
decision making process of monetary and economic authorities of the
country.
Abstract: In this study, one of the tools of Islamic financing
known as “Sukuk” a non-interest bearing investment which has
started to be implemented in Turkey and the world as a whole is
discussed. In order to increase the vitality and efficiency of the
economy, by taking lessons from the recent economic crisis new
developments in the banking and investment sector are being
expanded. The purpose of all investors is to obtain more revenue
through the use of capital. The inability of traditional investment
tools to meet the expectations of investors and the interest based
financial system where one investor benefits at the expense of
another there has been the need for a different, reliable and noninterest
bearing financial market that is consistent with the Islamic
rule. As a result an alternative and more reliable interest free
financing tool “Sukuk” rental certificates covering people who are
sensitive to Islamic rules, appeal to all segments, hidden remaining
capital that contributes to the economy, reduce disparities in income
distribution, common risk sharing system of profit and loss sharing
has emerged. Today, for the structural countries by examining the
state of the world market economy the applicability, enactment and
future issues associated with this attractive kind of Islamic finance
namely the “Sukuk” market has been explained.
Abstract: This paper adopts a two-stage data envelopment
analysis to explore the impacts of financial development and bank
operating scale on bank efficiencies. The sample comprises
unbalanced panel data of 32 Taiwanese listed domestic commercial
banks over the period 1998 to 2013. Empirical results show that pure
technical efficiency is positively related to financial development,
whereas the effect of financial development on scale efficiency is
insignificant. Enlargement of bank operating scale improves bank
efficiencies, but the efficiency gains are decreased gradually when the
scale increases. Increases in capital adequacy ratio and market power
of loans lead into a growth of bank efficiencies.
Abstract: The biodegradable family of polymers
polyhydroxyalkanoates is an interesting substitute for convectional
fossil-based plastics. However, the manufacturing and environmental
impacts associated with their production via intracellular bacterial
fermentation are strongly dependent on the raw material used and on
energy consumption during the extraction process, limiting their
potential for commercialization. Industrial wastewater is studied in
this paper as a promising alternative feedstock for waste valorization.
Based on results from laboratory and pilot-scale experiments, a
conceptual process design, techno-economic analysis and life cycle
assessment are developed for the large-scale production of the most
common type of polyhydroxyalkanoate, polyhydroxbutyrate.
Intracellular polyhydroxybutyrate is obtained via fermentation of
microbial community present in industrial wastewater and the
downstream processing is based on chemical digestion with
surfactant and hypochlorite. The economic potential and
environmental performance results help identifying bottlenecks and
best opportunities to scale-up the process prior to industrial
implementation. The outcome of this research indicates that the
fermentation of wastewater towards PHB presents advantages
compared to traditional PHAs production from sugars because the
null environmental burdens and financial costs of the raw material in
the bioplastic production process. Nevertheless, process optimization
is still required to compete with the petrochemicals counterparts.
Abstract: The construction industry has been demonstrating
increased growth and importance in Brazil’s national economic
development. This study aims to evaluate the financial performance
of the leading companies in the construction sector in Brazil in the
period from 2009 to 2012. An analysis is made of the capital
structure, liquidity, and profitability of the six largest companies in
the construction sector in Brazil: Brookfield, Cyrela, Gafisa, MRV,
PDG and Rossi. The results are then compared with standard industry
ratios. It was found that among the companies analyzed, MRV and
Cyrela showed the best relative performance in the period under
consideration.
Abstract: This exploratory study gives an overview of the
evolution of the main financial and performance indicators of the
Academic Spin-Off’s and High Growth Academic Spin-Off’s in year
3 and year 6 after its creation in the region of Catalonia in Spain. The
study compares and evaluates results of these different measures of
performance and the degree of success of these companies for each
University.
We found that the average Catalonian Academic Spin-Off is small
and have not achieved the sustainability stage at year 6. On the
contrary, a small group of High Growth Academic Spin-Off’s
exhibits robust performance with high profits in year 6. Our results
support the need to increase selectivity and support for these
companies especially near year 3, because are the ones that will bring
wealth and employment. University role as an investor has rigid
norms and habits that impede an efficient economic return from their
ASO investment.
Universities with high performance on sales and employment in
year 3 not always could sustain this growth in year 6 because their
ASO’s are not profitable. On the contrary, profitable ASO exhibit
superior performance in all measurement indicators in year 6. We
advocate the need of a balanced growth (with profits) as a way to
obtain subsequent continuous growth.
Abstract: The building sector is responsible, in many
industrialized countries, for about 40% of the total energy
requirements, so it seems necessary to devote some efforts in this
area in order to achieve a significant reduction of energy
consumption and of greenhouse gases emissions.
The paper presents a study aiming at providing a design
methodology able to identify the best configuration of the system
building/plant, from a technical, economic and environmentally point
of view.
Normally, the classical approach involves a building's energy
loads analysis under steady state conditions, and subsequent selection
of measures aimed at improving the energy performance, based on
previous experience made by architects and engineers in the design
team. Instead, the proposed approach uses a sequence of two wellknown
scientifically validated calculation methods (TRNSYS and
RETScreen), that allow quite a detailed feasibility analysis.
To assess the validity of the calculation model, an existing,
historical building in Central Italy, that will be the object of
restoration and preservative redevelopment, was selected as a casestudy.
The building is made of a basement and three floors, with a
total floor area of about 3,000 square meters.
The first step has been the determination of the heating and
cooling energy loads of the building in a dynamic regime by means,
which allows simulating the real energy needs of the building in
function of its use. Traditional methodologies, based as they are on
steady-state conditions, cannot faithfully reproduce the effects of
varying climatic conditions and of inertial properties of the structure.
With this model is possible to obtain quite accurate and reliable
results that allow identifying effective combinations building-HVAC
system.
The second step has consisted of using output data obtained as
input to the calculation model, which enables to compare different
system configurations from the energy, environmental and financial
point of view, with an analysis of investment, and operation and
maintenance costs, so allowing determining the economic benefit of
possible interventions.
The classical methodology often leads to the choice of
conventional plant systems, while our calculation model provides a
financial-economic assessment for innovative energy systems and
low environmental impact.
Computational analysis can help in the design phase, particularly
in the case of complex structures with centralized plant systems, by
comparing the data returned by the calculation model for different
design options.