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Article
Publication date: 1 February 1986

Horst Parisch

A previously presented finite element shell formulation is extended to the application of large strains. The finite elements are those based on the concept of ‘the…

Abstract

A previously presented finite element shell formulation is extended to the application of large strains. The finite elements are those based on the concept of ‘the degenerated solids’, which are widely used in non‐linear finite element programs. The constitutive equation of hyperelastic incompressible material is adopted and specialized to the Mooney‐Rivlin law. The additional state variable, the hydrostatic pressure, which occurs for incompressible materials, is eliminated on element level using the plane stress condition. Attention is drawn to the efficient calculation of the element matrices by applying a layer concept. The effectiveness of the proposed total Lagrangian formulation is demonstrated in a number of example problems.

Details

Engineering Computations, vol. 3 no. 2
Type: Research Article
ISSN: 0264-4401

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Article
Publication date: 23 August 2013

Milagros Vivel‐Búa, Luis Otero‐González, Sara Fernández‐López and Pablo Durán‐Santomil

Using hedging theories, we analyse the variables that determine the decision to hedge with foreign currency debt.

Abstract

Purpose

Using hedging theories, we analyse the variables that determine the decision to hedge with foreign currency debt.

Design/methodology/approach

Using a sample of 100 Spanish companies with a significant social and economic role in Latin American during 2004‐2007, we estimated probit models for panel data.

Findings

Our results showed that the main determinants are scale economies and the use of derivatives. On the one hand, we found that this hedging is positively related to tax loss carry‐forwards and long‐term economic sectors, and on the other, that it is related negatively to information asymmetries and growth opportunities. Results were mixed for foreign currency exposure.

Research limitations/implications

The limitations of this paper are associated to the availability of information from annual reports and the SABI database, especially the variables in relation to operational hedging. Therefore, as a future line of research, we propose gathering of data on these internal hedging practices in order to obtain more accurate evidence about its use in companies and their relationship with financial hedging.

Originality/value

This paper makes three major contributions to the existing literature. First, it contributes by illustrating currency hedging practices used by Spanish firms – which are important in Latin markets – to manage exchange rate exposure in. Second, we used more variables for the empirical analyses to contrast the hedging theories than previous studies had. Finally, we used a data panel because it allows the control of unobservable heterogeneity and endogeneity problems. Previous studies only used cross‐section estimations.

Objetivo

Este trabajo analiza la cobertura cambiaria con deuda en divisa utilizando las teorías de cobertura.

Diseño/metodología/aproximación

Se estimaron modelos probit para datos de panel usando una muestra de 100 empresas españolas con un papel económico‐social relevante en Latinoamérica durante el período 2004‐2007.

Resultados

Los resultados muestran que esta cobertura se relaciona principalmente con las economías de escala y el uso de derivados. Asimismo, existe una relación positiva con la convexidad impositiva y la localización empresarial en sectores orientados al largo plazo, y negativa con las asimetrías informativas y oportunidades de crecimiento. No existe evidencia concluyente para la exposición cambiaria.

Limitaciones de la investigación/implicaciones

La investigación tuvo como limitación la disponibilidad de algunos datos en los informes anuales de las empresas y la base de datos SABI, en especial, aquellos referidos a la cobertura operativa. En consecuencia, una línea de trabajo futura es la mejora de la información sobre esta cobertura, lo cual permitiría aportar mayor evidencia sobre su utilización y su relación con la cobertura financiera.

Originalidad/valor

Esta investigación realiza tres contribuciones a la literatura existente: a) permite un mejor conocimiento de la cobertura cambiaria en empresas españolas internacionales que ejercen un papel relevante en los mercados latinoamericanos; b) utiliza un conjunto de variables más amplio para contrastar las teorías de cobertura que el aplicado en estudios precedentes; c) emplea la metodología de datos de panel y no estimaciones en sección cruzada como presentan los trabajos previos, lo cual permite controlar la heterogeneidad inobservable y posibles problemas de endogeneidad.

Details

Academia Revista Latinoamericana de Administración, vol. 26 no. 2
Type: Research Article
ISSN: 1012-8255

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Article
Publication date: 1 March 1982

Joseph R. MAUTZ and Roger F. HARRINGTON

The magnetic field integral equation for electromagnetic scattering from a perfectly conducting body of revolution is solved by the method of moments. A Fourier series in…

Abstract

The magnetic field integral equation for electromagnetic scattering from a perfectly conducting body of revolution is solved by the method of moments. A Fourier series in ø is used. The t dependence of the expansion functions is subsectional. Pulses are used for the ø component of the unknown electric current induced on the surface S of the body of revolution. Triangles divided by the cylindrical coordinate radius are used for the t component. Here, t and ø are orthogonal coordinates on S, t being the arc length along the generating curve of S and ø the azimuthal angle.

Details

COMPEL - The international journal for computation and mathematics in electrical and electronic engineering, vol. 1 no. 3
Type: Research Article
ISSN: 0332-1649

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Article
Publication date: 15 October 2021

Muhammad Mushafiq, Shamsa Khalid, Muhammad Khalid Sohail and Tayyebah Sehar

The main purpose of this study is to investigate the investment choices' relationship with cognitive abilities, risk aversion, risky investment intentions, subjective…

Abstract

Purpose

The main purpose of this study is to investigate the investment choices' relationship with cognitive abilities, risk aversion, risky investment intentions, subjective financial literacy and objective financial literacy.

Design/methodology/approach

To examine the relationship, two investment choices were given to 256 subjects from Pakistan. Questionnaire had total 20 questions for measuring five variables. To review this nexus, discriminant analysis was used as to explore the depth of the nexus that is the ability of the variables to predict the investment choices.

Findings

This study establishes the findings that Investment choices are guided by risk aversion, risky investment intentions, financial literacy (subjective and objective) and cognitive abilities. The risk aversion has negative relation to investment choices and other variables depict positive relationship to with investment choices.

Practical implications

This study provides a new and useful understanding into the existing literature on investment choices. The results are significant as the cognitive abilities show a positive contribution to the investment choices. This is point of significance as the portfolio managers and advisors would get help in regards of advising investments as they are aware what factors impact the investment choices.

Originality/value

This study is novel in its nature to evaluate investment choices using the cognitive ability alongside risk attitudes and financial literacy.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

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Book part
Publication date: 19 October 2020

Pablo Estrada and Leonardo Sánchez-Aragón

Financial contagion refers to the propagation of shocks that can generate widespread failures. The authors apply a financial contagion model proposed by Elliott, Golub…

Abstract

Financial contagion refers to the propagation of shocks that can generate widespread failures. The authors apply a financial contagion model proposed by Elliott, Golub, and Jackson (2014) to a cross-shareholding network of firms in Ecuador. The authors use a novel dataset to study the potential channels for contagion. Although diversification is not high, results reveal enough conditions for a contagion event to occur. However, the low level of integration attenuates the effects of shocks. The authors run simulations affecting a particular firm at the time, and find that two firms coming from the finance and trade industry cause the highest contagion. In addition, when an entire industry receives a shock, trade and manufacturing industries contagion more companies than the rest. Finally, the model can assist policymakers to monitor the market and evaluate the fragility of the network in different scenarios.

Details

The Econometrics of Networks
Type: Book
ISBN: 978-1-83867-576-9

Keywords

Content available
Article
Publication date: 30 June 2021

Mohammad Abdullah

Financial health of a corporation is a great concern for every investor level and decision-makers. For many years, financial solvency prediction is a significant issue…

Abstract

Purpose

Financial health of a corporation is a great concern for every investor level and decision-makers. For many years, financial solvency prediction is a significant issue throughout academia, precisely in finance. This requirement leads this study to check whether machine learning can be implemented in financial solvency prediction.

Design/methodology/approach

This study analyzed 244 Dhaka stock exchange public-listed companies over the 2015–2019 period, and two subsets of data are also developed as training and testing datasets. For machine learning model building, samples are classified as secure, healthy and insolvent by the Altman Z-score. R statistical software is used to make predictive models of five classifiers and all model performances are measured with different performance metrics such as logarithmic loss (logLoss), area under the curve (AUC), precision recall AUC (prAUC), accuracy, kappa, sensitivity and specificity.

Findings

This study found that the artificial neural network classifier has 88% accuracy and sensitivity rate; also, AUC for this model is 96%. However, the ensemble classifier outperforms all other models by considering logLoss and other metrics.

Research limitations/implications

The major result of this study can be implicated to the financial institution for credit scoring, credit rating and loan classification, etc. And other companies can implement machine learning models to their enterprise resource planning software to trace their financial solvency.

Practical implications

Finally, a predictive application is developed through training a model with 1,200 observations and making it available for all rational and novice investors (Abdullah, 2020).

Originality/value

This study found that, with the best of author expertise, the author did not find any studies regarding machine learning research of financial solvency that examines a comparable number of a dataset, with all these models in Bangladesh.

Details

Journal of Asian Business and Economic Studies, vol. 28 no. 4
Type: Research Article
ISSN: 2515-964X

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Article
Publication date: 10 June 2021

HyunJun Na

This paper aims to examine how a firm’s political party orientation (Republican or Democratic), which is measured as the composite index based on the political party…

Abstract

Purpose

This paper aims to examine how a firm’s political party orientation (Republican or Democratic), which is measured as the composite index based on the political party leanings of top managers, affects bank loan contracts. This study also investigates how the political culture of local states has a significant impact on loan contracts.

Design/methodology/approach

This research uses various databases including the Loan Pricing Corporation’s DealScan database, financial covenant violation indicators based on the Securities and Exchange Commission (SEC) filings, firm bankruptcy filings and political culture index data to examine the impact of political orientation on the cost of debt. This paper also includes the state level of gun ownership and bachelor’s degrees to investigate how local political culture affects the loan contract. To control endogenous concerns, this paper uses an instrumental variable analysis.

Findings

Firms that have Republican-oriented political identities pay lower yield spreads for the main costs of debt including all-in-spread-drawn and all-in-spread-undrawn. This pattern is consistent with other fees of bank loans. This paper finds that an increase in conservative political policies toward Republican orientations is negatively associated with the cost of debt. The main findings also show that the political culture in the state where the headquarters of the borrowing firm are located plays an important role in bank loan contracts.

Originality/value

The findings in this paper provide evidence that a firm’s political party orientation significantly affects the loan contract terms in both pricing and non-pricing terms. To the best of the author’s knowledge, this is the first study that shows the importance of political party identification on loan contracts by separating the sample into Republican, neutral and Democratic.

Details

Review of Accounting and Finance, vol. 20 no. 2
Type: Research Article
ISSN: 1475-7702

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Book part
Publication date: 22 November 2016

Alessandro Danovi, Patrizia Riva and Marina Azzola

As a sort of Italian equivalent of US’s Chapter 11, the Preventive Arrangement with Creditors (Concordato Preventivo) is now the main instrument in Italy for small and…

Abstract

As a sort of Italian equivalent of US’s Chapter 11, the Preventive Arrangement with Creditors (Concordato Preventivo) is now the main instrument in Italy for small and medium-sized companies (and sometimes large ones) to manage insolvency by avoiding bankruptcy.

Through the examination of 60% of the total cases filed at the Court of Milan during the 2005–2014 period, authors investigated the different features of the procedure, the characteristics of the company that adopts it, and its diverse purposes of liquidation or restructuring. The complexity of the Italian system and the novelty of the legislation have made it rather difficult to reach definitive conclusions. However, Preventive Arrangements with Creditors can be considered a more efficient instrument than the alternative bankruptcy, both in terms of timeframe and creditors’ satisfaction. Within the overall European reform process of insolvency proceedings, Italy seems to provide useful insights for other countries in Europe, following in particular the 2014 Recommendation issued by the European Commission.

Details

Contemporary Issues in Finance: Current Challenges from Across Europe
Type: Book
ISBN: 978-1-78635-907-0

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Article
Publication date: 5 October 2020

Mohsin Ali, Omair Haroon, Syed Aun R. Rizvi and Wajahat Azmi

This paper aims to examine whether competition from Islamic banks add to the financial stability and profitability of financial sector and to assess the sources of such…

Abstract

Purpose

This paper aims to examine whether competition from Islamic banks add to the financial stability and profitability of financial sector and to assess the sources of such (in)stability.

Design/methodology/approach

Using Herfindahl–Hirschman Index as a measure of competition and Z-score as a measure of stability, the authors run panel GMM regressions to assess their association with data from 84 banks in Indonesia and Malaysia over a period from 2005 to 2018.

Findings

Increasing competition from Islamic banks in East Asian banking industry adds to the stability of the system while it does not affect profitability. This stability is derived from both asset and liability side.

Research limitations/implications

While adding to the literature on banking and Islamic finance, this paper suggests to the policy makers that policies promoting Islamic banking will tend to assist in enhancing financial sector stability.

Practical implications

Growth in alternative financial instruments brings steadiness within the financial structure. Such growth and competition should be encouraged.

Originality/value

The paper exploits an interesting setting of dual-banking industry in two large Muslim-majority developing country for testing two competing theories: competition-fragility and competition-stability. Such a setting also allowed us to examine whether increasing stability of financial sector is driven by demand or supply.

Details

Studies in Economics and Finance, vol. 38 no. 2
Type: Research Article
ISSN: 1086-7376

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Article
Publication date: 8 January 2018

Jin Ho Park, Kwangwoo Park and Ronald Andrew Ratti

The purpose of this paper is to examine the effect of controlling shareholders’ ownership of firms on the firms’ financial constraints in 22 economies for the 1982-2009 period.

Abstract

Purpose

The purpose of this paper is to examine the effect of controlling shareholders’ ownership of firms on the firms’ financial constraints in 22 economies for the 1982-2009 period.

Design/methodology/approach

The authors employ a generalized method of moments-based instrumental variables estimator to estimate empirical models.

Findings

It found that the overinvestment propensity of controlling shareholders becomes less severe with an increase in cash-flow rights. It further indicates that a higher deviation between the control rights and cash-flow rights of controlling shareholders lower their overinvestment propensity, thereby lowering the firm’s financial constraints.

Originality/value

The results suggest that a higher protective legal environment for minority shareholders blocks the entrenchment of controlling shareholders and thus benefitting the firm with slackened financing constraints in the given legal origin.

Details

Managerial Finance, vol. 44 no. 1
Type: Research Article
ISSN: 0307-4358

Keywords

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