EduRN: Financial Economics Education (FEN) (Topic)最新文献

{"title":"Estructura óptima de capital y estructura de varias empresas (Optimal Capital Structure)","authors":"Pablo Fernández","doi":"10.2139/SSRN.1767898","DOIUrl":"https://doi.org/10.2139/SSRN.1767898","url":null,"abstract":"Spanish Abstract: Para que exista estructura optima es preciso suponer que el valor global de la empresa (deuda acciones valor actual de los impuestos) disminuye con el apalancamiento (esto es, que existen los costes del apalancamiento). Esto puede suceder por dos motivos: porque el FCF esperado disminuya con el endeudamiento o bien, porque el riesgo de los activos (el riesgo del FCF y la probabilidad de quiebra) aumente con el apalancamiento (o por una combinacion de ambos). Se realiza el analisis de la estructura optima basandonos en dos ejemplos propuestos en notas de Harvard Business School y de Damodaran.Se muestra la estructura de capital de varias empresas (Chevron, Coca Cola, GE, Google, IBM, Intel, J&Johnson, Mcdonalds, Microsoft, Pepsico, Procter, Sealed Air, Sealy, Wal-Mart, Walt Disney) que no parecen perseguir la “estructura optima”.English Abstract: In this paper we will present an analysis of the optimal capital structure using two examples: one proposed by the Harvard Business School and the other proposed by Damodaran.First, we highlight certain inconsistencies in the debt and equity costs assumed by the Harvard Business School note from a number of viewpoints. Damodaran (1994) offers a similar approach to that of the Harvard Business School note, but applies it to a real company (Boeing in 1990) and assumes a constant cash flow growth. One problem with Damodaran results is that the value of the firm for debt ratios above 70% is less than the value of debt, which implies a negative value for equity. An additional error in Damodaran's calculations is that he calculates the WACC using book values in the weighting, instead of market values.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"65 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115648303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Personal Lines Risk Management and Insurance Simulation Game","authors":"D. Kerr, Stephen M. Avila","doi":"10.1111/rmir.12008","DOIUrl":"https://doi.org/10.1111/rmir.12008","url":null,"abstract":"This article examines the use of a Personal Lines Risk Management and Insurance Simulation Game in an introductory risk management and insurance (RMI) course. Business simulations and other case study teaching methods are a way to increase student engagement in the classroom, which can translate into a greater likelihood of higher learning outcomes. Because no one knows for sure what will happen in the future, there is a fundamental trade‐off that influences all RMI decisions: incur a known cost today in order to reduce risk in the future even though a loss may never materialize or refuse the immediate cost that would have reduced risk even though a future loss event might still occur. It is difficult to convince students of the consequences of such decisions because most realize that the individual likelihood of suffering an insurable loss is quite small. Students also fail to understand the complexity of making these trade‐off decisions multiple times in a given period for each different loss exposure they face. A description of the purpose of the game, innovative features, Smith Family Case Study, game specifics, and objectives and grading for the game have been provided. This article can be used as a step‐by‐step guide to implement this simulation in RMI courses at other universities to increase student engagement and enhance student learning.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132779740","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Analysis of Liquidity, Profitability, Risk and Financial Distress: A Case Study of Dr. Reddy’s Laboratories Ltd.","authors":"V. C","doi":"10.2139/ssrn.3423225","DOIUrl":"https://doi.org/10.2139/ssrn.3423225","url":null,"abstract":"Liquidity is the ability of an organization to meet its financial obligations during the short-term and to maintain long-term debt-paying ability. The long-term survival depends on satisfactory income earned by it. A sound liquidity leads to better profitability, and in turn reduces the probability of default risk in future. Further, the risk and return are very important aspects to be considered while making any decisions regarding company’s finance. Predicting enterprise failures constitutes one of the most important activities in supervising enterprise risks and/or variables. The term enterprise failure is a definable phenomenon: for instance, failure to cover external debts, exceeding budget limits, failure to effect payment to suppliers, incurring losses, etc. Therefore, a study of liquidity, profitability, and their association with risk, assessing the financial position (financial distress/bankruptcy) is very much necessary to evaluate the financial strength of the company. Financial distress is a tight cash situation in which a business cannot pay the owed amounts on the due date. When a firm is under financial distress, the situation sharply reduces its market value and larger customers may cancel their orders. A firm in financial distress may face bankruptcy or liquidation leading to delay in meeting its liabilities. This paper attempts to study the association between liquidity, profitability and risk factor. The Altman’s Z-score model has been employed by the researcher to predict the risk of financial distress of Dr. Reddy’s Laboratories Limited, from the year 2005-2011. The results indicated that the liquidity, and solvency position of the company has been satisfactory. The Z-score analysis revealed that the company is not suffering from financial distress and there are indications of turnaround activities already undertaken by the company.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"96 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115661746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Innate Measurement Bias in EVA and How to Fix it: The Total EVA and Operating EVA","authors":"R. Ibragimov","doi":"10.2139/ssrn.2129368","DOIUrl":"https://doi.org/10.2139/ssrn.2129368","url":null,"abstract":"Economic value added (EVA) is the performance metric bound to be biased by design. The measurement bias comes from contrasting NOPAT, which is a purely operating profit, with the capital charge on the money investors have put into the firm, which is calculated by applying the after tax WACC made-up to incorporate the financing side effects. Such a synthetic construct can be uninformative or even misleading, and therefore is doubtfully eligible to be the period measure of either operating or total performance.To eliminate distortions in measuring performance we have to (A) recognize the two sources of income attributable to the providers of funds, primary is the NOPAT generated by the firm’s core assets, and another is the financial side effects, generally the interest tax shield subsidy from the government; and (B) use the cost of unlevered equity (i.e. the risk of assets) as a hurdle rate to calculate the charge on the book invested capital. Splitting the aggregate financial result into the operating and side effect financing components enables an undistorted concurrent assessment of the operating and the overall performance by means of the Operating EVA (OEVA) and the Total EVA (TEVA) metrics respectively. TEVA is a better choice than the EVA for the purpose of measuring corporate performance, and OEVA is the index giving an informative snapshot of the ongoing operations. The TEVA and OEVA analysis is consistent with the free cash flow valuation and provides additional managerially relevant information for the performance evaluation.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"87 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116980381","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Event Study of Declaration of Separation on Stock Prices of Hero Motor Corp.: A Case Study on Hero & Honda Separation","authors":"Abhishek Tripathi, Amandeep Singh","doi":"10.17010/IJF/2012/V6I7/72406","DOIUrl":"https://doi.org/10.17010/IJF/2012/V6I7/72406","url":null,"abstract":"The event study methodology has been used to estimate cumulative average abnormal returns (CAR) in a 90 day window period (CAR) in a 1-day, 2-day, 5-day, 10-day, 15-day, 20-day, and 90-day window period of Declaration of Separation on stock prices of Hero Motor Corp. The study aims at exploring the implications of the merger for the shareholders. The event study methodology has been used to estimate Cumulative Abnormal Returns (CAR) for a 90 day window period. Market Model Method (single-factor model) has been used. This procedure has been applied on the Hero & Honda separation event so as to study the impact of this event on the stock prices. The study endeavors to find the Cumulative Abnormal Return (CAR) of Hero Motor Corp and after effects of Hero & Honda Separation.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127363983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Training Student Equity Analysts and Utilizing Their Recommendations in Active Portfolio Management","authors":"Scott D. Stewart","doi":"10.2139/SSRN.2077235","DOIUrl":"https://doi.org/10.2139/SSRN.2077235","url":null,"abstract":"Student investment funds are currently in operation globally at many large business schools and even small liberal arts colleges. Their management follows a wide variety of processes, from unsupervised to highly professional. While all investment managers labor to deliver alpha in a diversified portfolio, there are additional challenges to implementing a fully professional approach within a university setting, the largest being the constraint on time due to the school curriculum. This paper explores whether it is realistic to expect value-added from student analysts, and what training and infrastructure are required to increase the odds of successful active portfolio management inside an educational institution. The key goal of a student fund is education, not investment performance, but the more professional the investment operation, the more enlightened will be its graduates. A case study of one ten-year-old student fund illustrates a unique approach which seeks to successfully address these challenges. The fund’s management is formally integrated within a graduate finance program and has generated over 200 basis points of alpha per annum.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"72 4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129669015","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Examples and Extensions for the NMOF Package","authors":"Enrico Schumann","doi":"10.2139/ssrn.1886522","DOIUrl":"https://doi.org/10.2139/ssrn.1886522","url":null,"abstract":"This paper gives a number of examples (portfolio optimisation, selecting variables for a regression model) for the R-package NMOF that accompanies the book 'Numerical Methods and Optimization in Finance' by Manfred Gilli, Dietmar Maringer and Enrico Schumann.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127759146","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Roche Holding Ag: Funding the Genentech Acquisition","authors":"Michael J. Schill","doi":"10.2139/SSRN.2026615","DOIUrl":"https://doi.org/10.2139/SSRN.2026615","url":null,"abstract":"This case examines the decision by the Swiss pharmaceutical Roche Holding AG (Roche) to offer a record $42 billion bond in February 2009. In light of a pending acquisition of U.S. biotechnology leader, Genentech, Roche management planned to sell $32 billion in bonds at various maturities from 1 year to 30 years and in three different currencies (U.S. dollar, euro, and British pound). In a context of substantial uncertainty in both world financial markets and the value of the Genentech deal, students are introduced to the pricing of corporate bonds by being invited to price Roche’s bold global offering.The case is designed to introduce the concept of a risk premium and to accomplish the following potential additional teaching objectives: 1. Motivate the concept of a risk premium and the notion of a cost of debt by exposing students to estimating default risk, credit ratings, and credit spreads. 2. Review yield curve principles and mechanics. 3. Practice bond math and credit market terminology. 4. Establish institutional detail for the public security offering process. 5. Introduce the risk-return paradigm in finance.This case, as well as supplementary instructor materials, is available through Darden Business Publishing and Harvard Business Publishing.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133319839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Solution to the Financial Literacy Problem is to Educate the Young - Where are we Now?","authors":"Sharon M Taylor, Suzanne Wagland","doi":"10.2139/SSRN.1916568","DOIUrl":"https://doi.org/10.2139/SSRN.1916568","url":null,"abstract":"Over the last two decades the need for a financially literate population has grown in importance. In Australia the introduction of a compulsory superannuation scheme in 1992 signaled to Australians that retirement needs would now need to be self funded rather than relying on government funded social security. Hence in Australia it is imperative that individuals possess both the financial knowledge and capability to make sound financial decisions. The whole issue of financial literacy has been compounded by the fact that consumers are now required to make decisions in relation to an ever increasing range of complex products and services. As a means to navigate through this financial maze, there is a consensus as to the importance and need for individuals to be financially literate. Both the government and the private sector have encouraged the development of financial education programs as an important tool in remedying the current financial literacy deficient reported in the results of all the several ANZ Surveys from 2003 to 2010. The Rudd Labor Government in an effort to centralize initiatives and to improve financial literacy programs transferred responsibility for financial literacy from the Financial Literacy Foundation to the Australian Securities and Investments Commission (ASIC). ASIC has strongly promoted the need to develop confident and informed consumers and investors by providing quality financial education. This focus was recently reiterated in the ASIC Report 229 in March 2011 setting out the strategy for the development and delivery of initiatives to improve financial literacy levels in Australia (ASIC, 2011).This National Financial Literacy Strategy focuses on education through established education and training pathways as the cornerstone of bringing about long-term generational change in financial knowledge, attitudes and behavior (ASIC, 2011). Accordingly the government has emphasized the need for financial literacy education to begin in schools through the use of the State Education Departments mandatory curriculum. In particular this National Strategy has been developed to improve the level of financial literacy among Australian students, with a focus on incorporating financial education through the existing school curriculum beginning in kindergarten and through to year 12 students. The USA through the efforts of the Jump$tart Coalition has possibly contributed to the most comprehensive long term study on students and financial literacy outcomes. The Jump$tart Coalition has been measuring financial literacy among High School Students since 1997 and has become one of the most widely referenced resources in understanding what young people know - and don’t know - about personal finance (Jump$tart Coalition, 2011). In recent reports the coalition has found a declining level of competency in respect of financial literacy despite an increase in emphasis and coverage of financial topics in school curriculums. The reports suggest a","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129547738","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Mudaraba, Musharaka, Murabaha - New Terms to Bank on: A Basic Knowledge of Islamic Banking and Finance Has Become Important for Legal Practitioners","authors":"Maria Bhatti","doi":"10.2139/SSRN.2609216","DOIUrl":"https://doi.org/10.2139/SSRN.2609216","url":null,"abstract":"A basic knowledge of Islamic banking and finance has become important for legal practitioners, partly because of recent support the industry has received from the Australian government.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124321283","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}