How Do Liabilities Change Pension Fund Asset Allocation, Risk Taking and Performance?

Using a sample of bank-years from 2005 to 2017, we examine the effect of internal control quality on future risk-taking and performance. We find that banks that disclose a material weakness in internal controls have higher risk-taking and worse performance in the future, including having a higher (lower) likelihood of experiencing large losses (gains). These findings suggest that weak controls increase (reduce) downside (upside) risk-taking or conversely that strong controls increase (reduce) upside (downside) risk-taking. Path analyses suggest that 22.3 to 43.7 percent of the effect of internal control quality on future performance is through risk-taking. Additionally, material weaknesses are negatively associated with total asset, loan, interest income, and non-interest income growth, suggesting that internal control quality affects both core and non-core activities of banks. Overall, results suggest that strong internal controls improve bank risk-taking, in part through asymmetrically reducing downside risk-taking while facilitating upside risk-taking, ultimately improving bank performance.

Download Full-text

A Stochastic Approach to Risk Management and Decision Making in Defined Benefit Pension Schemes

British Actuarial Journal ◽

10.1017/s135732170000427x ◽

2003 ◽

Vol 9 (3) ◽

pp. 493-586 ◽

Cited By ~ 22

Author(s):

S. Haberman ◽

C. Day ◽

D. Fogarty ◽

M. Z. Khorasanee ◽

M. McWhirter ◽

...

Keyword(s):

Decision Making ◽

Performance Measures ◽

Asset Allocation ◽

Stochastic Approach ◽

Free Variable ◽

Defined Benefit ◽

Contribution Rate ◽

And Performance ◽

Allocation Decisions ◽

Made In

ABSTRACTThe trustees and sponsors of defined benefit schemes rely on the advice of the Scheme Actuary to make important decisions concerning the funding of the scheme, the investment of its assets, and the use of surplus assets to improve benefits. These decisions have to be made in the face of considerable uncertainty about financial and demographic factors that will affect the future experience of the scheme and its success in meeting various objectives.The traditional actuarial valuation combined with actuarial judgement has played an important role in guiding decision making; but we argue that stochastic methods can add value in certain crucial areas, in particular the financial risk management of defined benefit schemes. Rather than dealing with risk by incorporating margins in the valuation basis, a stochastic approach allows the actuary to evaluate specific and quantifiable risk and performance measures for alternative funding and investment strategies.This paper recommends a framework that, when combined with a suitable stochastic model, measures the risks inherent in contribution rate and asset allocation decisions, allowing better decisions to be made. In doing this, we suggest and apply various risk and performance measures that may be thought appropriate, although our intention is to illustrate their use rather than prescribe them as objective standards. The framework provides the means to explore the trade-offs involved in possible contribution and asset allocation decisions, and points to decision strategies expected to give improved outcomes for the same level of risk. A feature of the approach that marks it out from current asset/liability techniques is that it examines the funding and investment decisions together. It does not derive a contribution rate in the traditional way, but leaves this as free variable, in the same way that the investment decision is taken to be a free variable. Another distinctive feature of our framework is that it is based on projection rather than on valuation, involving stochastic simulation of the experience of the scheme over a time horizon reflecting the concerns of the trustees and the sponsoring employer.The paper provides a case study (based on a model final salary pension scheme) showing the advantages of the framework, and goes on to explain how the results may practically be communicated to trustees and scheme sponsors.

Download Full-text

Entrepreneurial Mindset and Performance of Small and Medium Scale Enterprises in Makurdi Metropolis, Benue State-Nigeria

International Journal of Innovation ◽

10.5585/iji.v6i2.223 ◽

2018 ◽

Vol 6 (2) ◽

pp. 124-146 ◽

Cited By ~ 3

Author(s):

Emmanuel Lubem Asenge ◽

Hembadoon Sarah Diaka ◽

Alexander Terna Soom

Keyword(s):

Social Sciences ◽

Risk Taking ◽

Sampling Method ◽

Critical Factor ◽

Major Effect ◽

Policy Makers ◽

Medium Scale ◽

Business Opportunities ◽

And Performance ◽

Selection Of

Many studies indicates that entrepreneurial mindset is a critical factor in the accumulation, evaluation and selection of the knowledge which can lead an individual into potential business opportunities thereby enhancing entrepreneurial outcomes such as firm performance. This study examined the effect of entrepreneurial mindset on the performance of small and medium scale enterprises in Benue State. The focus of the research was to measure the entrepreneurs’ mindset exhibited through innovativeness, creativity, business alertness and risk taking and how these attributes contributed to the performance of SMEs. The research focused on a population of 650 small and medium scale enterprises based in Makurdi metropolis. A questionnaire was used to collect data from a sample of 250 SMEs in Makurdi metropolis which were selected through stratified random sampling method. Collected data were analyzed using descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS). Correlation and multiple regression analysis were employed to analyse the data and test the hypotheses. The study revealed that innovativeness, creativity, business alertness and risk taking were significant in affecting performance of SMEs. The study concluded that entrepreneurial mindset or lack of it has a major effect on SMEs performance and if any economy is bended towards development and growth, it would have to embrace this concept. It recommended that all the policy makers and all stake holders should re-strategize and create forums that can promote entrepreneurial mindset among the existing and potential entrepreneurs.

Download Full-text

PENGARUH KOMPENSASI DAN BUDAYA ORGANISASI TERHADAP KINERJA DENGAN MEDIASI KEPUASAN KERJA PERAWAT DI RUANG RAWAT INAP RSUD KARDINAH KOTA TEGAL

Multiplier: Jurnal Magister Manajemen ◽

10.24905/mlt.v3i1.1291 ◽

2019 ◽

Vol 3 (1) ◽

Author(s):

Nur Fitriani ◽

Mr. Basukiyatno

Keyword(s):

Job Satisfaction ◽

Organizational Culture ◽

Risk Taking ◽

Affective Commitment ◽

Positive Influence ◽

Hospital Inpatient ◽

Validity And Reliability ◽

Instrument Validity ◽

And Performance ◽

Positive Effect

The purpose of this study is to examine and analyze the effect of compensation and organizational culture on performance by mediating job satisfaction of nurses. In this study, the population was all nurses in the Civil Hospital inpatient Kardinah. The sampling method using purposive sampling. Retrieval of data using questionnaires. Tests conducted by the research instrument validity and reliability, statistical test equipment being used is multiple regression analysis, R2 test and t-test, to test the significance of regression coefficients generated. The results showed that compensation is positive and significant effect on affective commitment, job satisfaction and commitment continuants, but had no effect on performance. Organizational culture of innovation and risk-taking has positive influence on affective commitment and performance. Results-oriented organizational culture has a positive effect on job satisfaction and performance. People-oriented organizational culture has a positive effect on job satisfaction. Affective commitment and commitment continuants positive effect on job satisfaction but had no effect on performance. Job satisfaction has a positive effect on performance. Affective commitment, job satisfaction and commitment continuants is purely capable of mediating variables to explain the effect of indirect compensation to performance. Affective commitment and job satisfaction are not able to explain the indirect effect of organizational culture of innovation and risk-taking on the performance of nurses in hospitals Kardinah Tegal City.Keywords: compensation, organizational culture, , job satisfaction and performance of nurses

Download Full-text