scholarly journals An Empirical Analysis of Financially Distressed Italian Companies

2016 ◽  
Vol 9 (10) ◽  
pp. 75
Author(s):  
Luca Sensini
Keyword(s):  
Financial Distress ◽  
Default Risk ◽  
Research Question ◽  
Balance Sheet ◽  
Annual Reports ◽  
Data Set ◽  
Industrial Firms ◽  
Main Research ◽  
Financial Indices ◽  
Selection Of

<p>This paper investigates the performance of forecasting models for default risk referring to the annual balance sheet information of Italian firms. One of the main issues in bankruptcy predictions is related to the selection of the best set of indicators. Therefore, our main research question concerns the identification of the determinants of corporate financial distress, comparing the performance of innovative selection techniques. Furthermore, several aspects related to the default risk analysis have been considered, namely the nature of the numerical information and the sample design. The proposed models take in consideration the above-mentioned issues and the empirical results, elaborated on a data set of financial indices expressly derived from annual reports of the industrial firms. These reports provide evidence in favor of our proposal over the traditional ones.</p>

scholarly journals A study on liquidity performance of top performing indian manufacturing companies

2012 ◽  
Vol 1 (3) ◽  
pp. 214-219
Author(s):  
POORNIMA S ◽  
THEIVANAYAKI M
Keyword(s):  
Financial Distress ◽  
Balance Sheet ◽  
The Other ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Short Term ◽  
Financial Situation ◽  
Relationship Of ◽  
The Relationship ◽  
Selection Of

The term liquidity probably brings to mind the relationship of current assets to current liabilities. However, the concept of liquidity should encompass much more than simply these two balance sheet accounts. This study is based on previous ten years Annual Reports of the top performing manufacturing companies in India. In this study, liquidity is taken to mean the short term liquidity which refers to the ability of the firms to pay off the current liabilities. This study relates to the management of short term assets and liabilities and finding the relationship between liquidity, profitability and leverage measures of a firm.Short term liquidity has been considered crucial to the very existence of an enterprise. This will further lead to financial distress and finally corporate can go bankrupt. The conflict arises because the maximization of firm’s returns could seriously threaten the liquidity and on the other hand, the pursuit of liquidity has a tendency to dilute returns. The result can determine the risk postulate to that future customer. Additionally, this result can be utilized as a yearly appraisal of financial situation in making decisions to invest in the corporate. The result can contribute in advance an indication of the financial situation to aid the investor’s selection of companies.

scholarly journals Does corporate social responsibility reduce financial distress? Evidence from emerging economy

2021 ◽  
Vol 11 (8) ◽  
pp. 2225-2232
Author(s):  
Naeem Khan ◽  
Qaisar Ali Malik ◽  
Ahsen Saghir ◽  
Muhammad Haroon Rasheed ◽  
Muhammad Husnain
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Distress ◽  
Default Risk ◽  
Random Effect ◽  
Data Set ◽  
Financial Firms ◽  
Relational Behavior ◽  
Corporate Social ◽  
Economic Outlook

This work investigates the relational behavior of corporate social responsibility (CSR) and its effect on firms' financial distress (FD). The population of the study consists of all the non-financial firms presently listed in the equity market of Pakistan. The yearly data set of 213 non-financial companies is selected from 2005 to 2017 with total observations of 2769. The analysis of the study based on OLS regression, fixed effect, and random effect models. The study also uses the GMM technique to guard against potential problems of endogeneity and heteroskedasticity that arise from the use of panel data. Results indicate that higher investment in CSR leads to reduced/lower financial distress. It suggests that investment in CSR raises the reputation and creditworthiness of firms. Key findings are robust as confirmed by alternative proxies of financial distress. Overall findings advocate that CSR helps in reducing default risk or financial distress and creates a better corporate environment that ultimately improves organizations' economic outlook.

scholarly journals Health Check-up of Commercial Banks in the Framework of CAMEL: A Case Study of Joint Venture Banks in Nepal

2007 ◽  
Vol 2 (1) ◽  
pp. 41-55 ◽  
Author(s):  
Keshar J. Baral
Keyword(s):  
Commercial Banks ◽  
Large Scale ◽  
Joint Venture ◽  
Balance Sheet ◽  
Health Check ◽  
Annual Reports ◽  
Financial Health ◽  
Data Set ◽  
Business Studies

Using the data set published by joint venture banks in their annual reports, and NRB in its supervision annual reports, this paper examines the financial health of joint venture banks in the CAMEL framework. The health check up conducted on the basis of publicly available financial data concludes that the health of joint venture banks is better than that of the other commercial banks. In addition, the perusal of indicators of different components of CAMEL indicates that the financial health of joint venture banks is not so strong to manage the possible large scale shocks to their balance sheet and their health is fair. Journal of Nepalese Business Studies Vol.2(1) 2005 pp.41-55

scholarly journals Factors Explaining Management Preferences of Accounting for Goodwill Prior to the Implementation of IFRS 3: A Cross-Country Study

2006 ◽  
Vol 8 (1) ◽  
pp. 43
Author(s):  
Emita W. Astami
Keyword(s):  
Balance Sheet ◽  
Economic Consequences ◽  
Annual Reports ◽  
Economic Variables ◽  
Cross Sectional ◽  
Leverage Ratio ◽  
Country Study ◽  
Cross Country ◽  
Management Preferences ◽  
Selection Of

This study provides evidence on the cross sectional relationship between firm economic variables and management preferences in the selection of an accounting technique for goodwill. It examines goodwill accounting policy disclosures in the 2000/2001 annual reports of 269 listed companies in the five countries: Australia, Hong Kong, Indonesia, Malaysia, and Singapore. The key focus is management’s choice of accounting techniques for the treatment of goodwill.The results show that accounting practices for goodwill vary significantly across country of origins and across industry groups. Two economic variables significantly explain management preferences of accounting for goodwill. The finding shows that the higher a company’s financial leverage ratio the company managers prefer to write off goodwill immediately against income or to capitalize and amortize it in a sorter period of time. The higher a company’s size, the more likely the company would write-off of goodwill to balance sheet reserves. Thus, this study provides empirical evidence that management preferences of accounting for goodwill have economic consequences.

Financial Ratios as Predictor of Financial Distress: A Study on Some Select Deposit Money Banks in Nigeria (1991-2014)

2020 ◽  
Vol 6 (3) ◽  
pp. 29-42
Author(s):  
Ojeabulu Uyi Michael ◽  
Chigbu E. Ezeji ◽  
Benedict Ozurumba A. ◽  
Kanu Success Ikechi
Keyword(s):  
Financial Distress ◽  
Financial Ratios ◽  
Annual Reports ◽  
Great Success ◽  
Data Set ◽  
Financial Reports ◽  
Underlying Causes ◽  
Subsequent Loss ◽  
Using Data ◽  
Near Future

The purpose of this study is to evaluate the use of financial ratios as a predictor of financial distress in Deposit Money Banks (DMB) in Nigeria. Banks’ deficiency in the period between 1991 and 2011 and a subsequent loss of depositor’s funds first prompted our attention. The instability of the industry felt even today calls for further research to understand the underlying causes of such issues better. Three Nigerian Deposit Money Banks were financially analyzed using data set for the period between 1991 and 2014. The banks were classified as very strong, strong, and weak. For instance, GT Bank was classified as very strong, UBA as strong, and Polaris bank as weak. Data were collected from the banks’ annual financial reports. Other sources were included, such as CBN Annual Reports and NSE Fact Books. Logistic regression analysis was performed on the data set. The model correctly predicted 87.5% of periods in which the banks were expected to experience financial distress and 93.8% of periods in which the banks were supposed to be in good financial state. Out of the five ratios that were used in the study, three turned out to be significant in predicting banks’ financial distress. This research constructed a model of financial ratios to predict difficulty with great success. Thus, stakeholders are advised to go beyond assessing the present status of banks, i.e., their strengths and weaknesses, but to utilize financial ratios in the near future. The study recommends that bank management should focus more on generating more earnings with the assets at their disposal.

scholarly journals Group Affiliation and Default Prediction

2019 ◽  
Vol 65 (8) ◽  
pp. 3559-3584 ◽  
Author(s):  
William H. Beaver ◽  
Stefano Cascino ◽  
Maria Correia ◽  
Maureen F. McNichols
Keyword(s):  
Financial Reporting ◽  
Financial Distress ◽  
Default Risk ◽  
Credit Rating ◽  
Balance Sheet ◽  
Group Affiliation ◽  
Consolidated Financial Statements ◽  
Cross Sectional ◽  
Default Prediction ◽  
Group Information

Using a large sample of business groups from more than 100 countries around the world, we show that group information matters for parent and subsidiary default prediction. Group firms may support each other when in financial distress. Potential group support represents an off-balance sheet asset for the receiving firm and an off-balance sheet liability for the firm offering support. We find that subsidiary information improves parent default prediction over and above group-level consolidated information possibly because intragroup exposures are netted out upon consolidation. Moreover, we document that improvements in parent default prediction decrease in the extent of parent-country financial reporting transparency, a finding that suggests that within-group information matters most when consolidated financial statements are expected to be of lower quality. We also show that parent and other group-firms’ default risk exhibits predictive power for subsidiary default. Lastly, we find that within-group information explains cross-sectional variation in CDS spreads. Taken together, our findings contribute to the prior literature on default prediction and have direct relevance to investors, credit-rating agencies, and accounting regulators. This paper was accepted by Suraj Srinivasan, accounting.

scholarly journals A Multidimensional Comparative Analysis of Involvement in CSR Activities of Energy Companies in the Context of Sustainable Development Challenges: Evidence from Poland

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4592
Author(s):  
Tomasz L. Nawrocki ◽  
Danuta Szwajca
Keyword(s):  
Sustainable Development ◽  
Stock Exchange ◽  
Research Question ◽  
Annual Reports ◽  
Level Of Involvement ◽  
Main Research ◽  
The Social ◽  
Warsaw Stock Exchange ◽  
Energy Companies ◽  
Indicator Model

In recent years, corporate involvement in CSR has become increasingly important and appreciated in the context of the ideas and assumptions regarding sustainable development. Due to the specificity of the energy sector, its particular impact on the environment, the living conditions of the population, and the social involvement of energy companies is particularly desirable, therefore it is observed and assessed by many stakeholder groups. The aim of this article is to assess the CSR commitment of Polish energy companies listed on the Warsaw Stock Exchange. The assessment was based on the proposed indicator model, based on the data published in the annual reports of the companies. The study uses data from the years 2016–2020. The main research question is as follows: What is the engagement in CSR activities of six Polish energy companies towards contractors, investors, employees, society, and the environment? The obtained results show that the investigated energy companies present a similar average level of engagement in CSR activities. The highest level of involvement concerns the area of contractors and the lowest levels relate to the donors of capital and the environment.

scholarly journals Medicalisation of Birth in Transylvania in the Second Half of the 19th Century. A Subject to be Investigated

2021 ◽  
Vol 10 ◽  
pp. 91-95
Author(s):  
Luminiţa Dumănescu ◽  
Ioan Bolovan
Keyword(s):  
Medical Care ◽  
19Th Century ◽  
Research Question ◽  
Ground Level ◽  
Theory And Practice ◽  
Population Database ◽  
Main Research ◽  
Community Behavior ◽  
The 19Th Century ◽  
Selection Of

The role played by midwives during modernity deserves increased attention. Ethnic and confessional minorities often displayed starkly different patterns in the selection of these instrumental figures. More than that, the differences between the official reports and the community behavior recorded at ground level suggest a major gap between theory and practice. In theory, the province of Transylvania was well provided with medical care, midwives included. Data collected into the Historical Population Database of Transylvania reveals the fact that most women were assisted at birth by handywomen, the traditional, unskilled midwives. A research tool like a historical population database could help the scholars to address the issue of birth medicalisation, starting from the main research question: can we discuss the medicalisation of birth given that more than half of the women assisted in the delivery of just one child?

scholarly journals Pro-Environmental Behaviour in the European Union Countries

Energies ◽  
2021 ◽  
Vol 14 (18) ◽  
pp. 5689
Author(s):  
Aneta Mikuła ◽  
Małgorzata Raczkowska ◽  
Monika Utzig
Keyword(s):  
European Union ◽  
Research Question ◽  
The European Union ◽  
Data Set ◽  
Environmental Behaviour ◽  
Main Research ◽  
Country Level ◽  
European Union Countries ◽  
Order Preference ◽  
Topsis Technique

The purpose of the presented research is to assess pro-environmental behaviour (PEB) in European Union countries in 2009 and 2019. The study used a synthetic measure developed using the TOPSIS (Technique for Order Preference by Similarity to an Ideal Solution) benchmark method. This method enables distinguishing classes and ranks of countries depending on the adopted characteristics. Basic measures of descriptive statistics, i.e., average, standard deviation and the coefficient of variation, were used in the analysis of the data set. The main research question addressed in this study concerns the relationship between the level of PEB and economic, demographic, and educational factors—not only on a micro scale but also from the macroeconomic perspective. The research has revealed a wide variety throughout the European Union (EU-27) countries in terms of pro-environmental behaviour. Sweden, Finland, and Denmark top the ranking, while Malta, Greece, Spain, and Romania are at the bottom of it. Northern European countries can therefore be identified as a group that represents a positive benchmark in terms of PEB across the European Union (EU-27). The correlation between PEB and selected economic, demographic, and education-related variables was also investigated. Country-level PEB is correlated with demographic and economic variables, but it is not correlated with education-related variables.

The Tail Wagging the Dog? Top-down and Bottom-up Explanations for Bureaucratic Appointments in Authoritarian Regimes

2018 ◽  
Vol 3 (2) ◽  
pp. 239-259 ◽  
Author(s):  
Fabian Burkhardt ◽  
Alexander Libman
Keyword(s):  
Central Government ◽  
Research Question ◽  
Authoritarian Regimes ◽  
Political Regimes ◽  
Top Down ◽  
Bottom Up ◽  
Main Research ◽  
Self Selection ◽  
Democratic Country ◽  
Selection Of

The paper investigates the link between the sub-national variation of political regimes in a (at the federal level) non-democratic country and the appointments of federal officials in the sub-national provinces. In particular, we look at the appointment of the chief federal inspectors to the regions in Putin’s Russia in 2000–2012. Our main research question is whether appointment patterns can be explained by top-down concerns of the central government willing to keep control over the most unruly regions or by bottom-up self-selection of bureaucrats belonging to influential groups into more attractive positions more suitable for rent-seeking. The advantage of our case is that data we have at hand allow us to distinguish these two logics. Our results indicate that for the Russian chief federal inspectors in 2000–2012 bottom-up self-selection appears to be the more plausible explanation of the link between sub-national political regimes and appointment patterns.

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