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

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.

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.

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.

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.

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

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.

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.

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.

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.

The aim of this paper is to provide an overview of the impact of the implementation of Colombian Corporate Insolvency Act 1116 of 2006 in the period 2008–2018 and to assess the relevance of a broad set of financial predictors, as well as variables related to the economic context or the characteristics of the process itself, in explaining the failure of reorganization processes.

Both logit and probit models are estimated, starting from a large number of variables proposed in the literature which are then narrowed down to a final selection based on their individual significance and machine learning.

The results show the prevalence of a limited number of financial variables related to equity, indebtedness, profits and liquidity as predictors of the failure of reorganization processes. The use of financial information from the year prior to the completion of the reorganization improves predictive accuracy and reliability. The debt-to-equity indicator provides no significant explanatory power, while voluntary entry into a reorganization process favors its success.

While financial and accounting information is used across the literature to predict insolvency events, it is used here to predict success or failure in reorganization processes under the conditions imposed by a specific legislative act in a Latin American context.

Proporcionar una panorámica de la implementación de la Ley 1116 de 2006 a partir de las empresas que suscribieron acuerdos de reorganización en Colombia en el periodo 2008–2018 y evaluar la relevancia de un conjunto amplio de predictores financieros, así como variables relacionadas con el entorno económico o de características del propio proceso, para explicar el fracaso de la reorganización.

Se han estimado tanto modelos logit como probit, partiendo de un amplio número de variables propuestas en la literatura, que luego se reducen a una selección final basada en su significancia individual y una metodología de machine learning.

Un número reducido de variables relacionadas con los fondos propios, el endeudamiento, los beneficios y la liquidez prevalecen como predictores financieros del fracaso de los procesos de reorganización. El uso de información del año anterior al cierre del acuerdo mejora la precisión de las predicciones realizadas. El indicador de conversión de deuda en capital no ofrece capacidad explicativa significativa, mientras que la entrada voluntaria a la reorganización favorece su éxito.

Muchos trabajos han usado información financiera y contable para predecir eventos de insolvencia. En nuestro caso se usa esta información para predecir el éxito o fracaso de los procesos de reorganización bajo una ley específica en el contexto latinoamericano.

The purpose of this chapter is to explore the possible relation between public policy measures, particularly relating to currency exchange rates, capital flow mechanisms and cross-border insolvency by describing the current state of insolvency regulation in Latin America and some cases that exemplify this public-private dynamic.

The first part of the chapter is based on literature review and content analysis to show the current situation of the regulation of insolvency in Latin America and the evolution of policies shaping the flow of capital and the exchange rates. The second part illustrates the proceedings in selected countries, particularly for Colombia and Venezuela.

The analysis led to the finding that some countries’ policy mechanisms such as in the case of Venezuela might lead to a problem regarding national companies involved in an insolvency proceeding, particularly when the company alleges that public policy in force have changed circumstances leading to the impossibility of paying foreign-located liabilities.

The chapter is based largely on literature review and available data, public legal documents and cases relating public policy and cross-border insolvency; however, insolvency proceedings are not of public domain; thus, there is a large amount of information related with the mentioned cases that remain undisclosed.

This chapter provides a theoretical and practical perspective to analyze cross-border insolvency from a local regulatory framework. It also demonstrates the possible link between public policy and cross-border insolvency.

The purpose of this paper is to analyse the Spanish business sector’s economic exposure to currency risk in Latin America between 2010 and 2016, testing the effectiveness of hedging with derivatives for the reduction of this risk.

Economic exposure is tested with the Jorion model (1990) using both a currency basket and an individualised analysis for the main currencies sustaining business activities between Spain and Latin America: the Mexican peso, Brazilian real, Argentine peso, Chilean peso, and Colombian peso. For the hedging analysis, dynamic panel data models were estimated using a generalised method of moments.

The results reveal that the number of firms with significant economic exposure is sensitive to the temporal frequency of the observations. The evidence denotes that the firms’ export profile is predominant, both when considering a basket of Latin American currencies and when individually considering the five main pairs of currencies. The only exception is the Argentine peso, where firms’ import profile is slightly higher. The Chilean peso stands out as the currency with the greatest number of firms with significant exposure.

This work provides unpublished evidence on economic exposure to currency risk in Latin America in a recent period characterised by two main aspects: an important devaluation of some Latin American currencies with respect to the euro; and an enhancement of Spanish business activities in the region to favour growth during the recent recession of the Spanish economy.

este trabajo analiza la exposición económica al riesgo cambiario en Latinoamérica por parte del sector empresarial español entre 2010 y 2016. Asimismo, evalúa la efectividad de la cobertura con productos derivados en su reducción.

la exposición económica es estimada a través del modelo de Jorion (1990), utilizando tanto una cesta de divisas como un análisis individualizado para las principales divisas que sustentan la actividad entre España y Latinoamérica, a saber, Peso mexicano, Real brasileño, Peso argentino, Peso chileno, y Peso colombiano. Respecto al análisis de la cobertura, se estiman modelos dinámicos con datos de panel a través del método generalizado de momentos.

los resultados muestran que el número de empresas con exposición económica significativa es sensible a la frecuencia temporal de las observaciones. Asimismo, la evidencia denota que el perfil exportador de las empresas es mayoritario, tanto al considerar una cesta de divisas latinoamericanas como, individualmente, los cinco principales pares de divisas. La única excepción es el peso argentino, donde el perfil importador de las empresas es levemente superior. Asimismo, el peso chileno destaca como la divisa con mayor número de empresas con exposición significativa.

este trabajo aporta evidencia inédita sobre la exposición económica al riesgo cambiario en Latinoamérica en un período reciente caracterizado por dos aspectos principales: i) una importante depreciación de algunas divisas latinoamericanas respecto al euro; ii) una potenciación de la actividad empresarial española en esa región para favorecer su crecimiento durante la reciente recesión de la economía española.

This chapter reviews Colombia's unique environmental and social features and Colombia's realities in the third decade of the twenty-first century. It is crucial to understand the country's recent past and to take its structural and historic struggles into account when building sustainable futures.

This chapter also reports the findings of a primary data research study using futures scenario methodologies. The study participants represent different stakeholders' visions of four alternative futures regarding the climate crisis and massive biodiversity loss and social and economic crises.

This chapter's empirical study identifies Colombia's constraints to building a future that is just, inclusive and centred on nature. In addition, we describe in detail the structural changes needed for Colombia to achieve the best possible future scenario (socioeconomic prosperity and resilience to climate change). Finally, this chapter offers conclusions and recommendations.

This issue is dedicated to the memory of Luis J. Sanz and this editorial is made up of three parts: an account of his work with the journal, words from the editor (2001-2013), and a brief CV which he had written shortly before his passing.

Este número se dedica a la memoria de Luis J. Sanz y este editorial consta de tres partes. Un recuento de su trabajo con la revista, el recuerdo de la editora 2001-2013, y un breve CV que él mismo escribió poco antes de su muerte.

In the decades following Chile's 1990 return to democracy, successive governments adopted pioneering reforms aimed at modernizing the state and strengthening democratic governance. This chapter discusses the major developments within Chile's public sector since 1990, with an emphasis on reforms affecting the civil service and public sector management. The politics of the reform process was notable for successful consensus building and led to a more meritocratic, professionally managed public employment system. This chapter also provides an overview of initiatives to strengthen accountability through greater transparency and citizen participation in government, as well as the major public sector management reforms adopted during the last three decades.

The paper aims to identify “problematic” agricultural credit co‐operatives (CCAM) and to evaluate their risk of insolvency as a function of financial indicators, providing regulators and other stakeholders with a set of tools that would be predictive of future insolvency and perhaps bankruptcy.

Using a database of CCAM failures in the period between 1995 and 2009, statistical models of failure of CCAM, are estimated and compared, using logistic regression analysis and multiple discriminant analysis for assessing the potential failure of CCAM as a function of financial/economical indicators.

The paper identified the variables customer resources growth, transformation ratio, credit overdue, expenses ratio, structural costs, liquidity, indebtedness and financial margin as determinants of CCAM failure. It suggests that CCAM take measures geared to boosting business, to shoring up the financial margin and the deposit base, to bolstering the complementary margin and to improving the credit recovery processes. Additionally it is necessary to increase cost efficiency, rationalizing structures and procedures consistent with reducing operating costs without detriment to the quality of service provided.

This paper helps to understand why agricultural credit co‐operatives fail.

Studies on the performance of agribusiness cooperatives in Brazil focus on economic and financial aspects. The purpose of this paper is to further delve into such studies by investigating which commonly measurable structural production factors (horizontal, vertical and lateral diversification; operating area; number of associates; and time in operation) have greater impacts on the financial performance of such cooperatives.

To achieve such a goal, a survey was conducted with a sampling pool divided by size (annual net revenues of US$ 50 million or higher), and the questionnaire was employed as a method of data collection. The sample was concentrated in the southern, south-eastern and mid-western regions of Brazil; classified by size; and deemed adequate after several adequacy tests.

The results were analysed using Spearman’s correlation, which showed that there were no significant correlations between the structural production factors considered in this study and the economic-financial performance of agricultural cooperatives, which leads to questions about the effectiveness of employing diversification strategies with a conjoint approach. Nonetheless, it was possible to identify several relationships not mentioned in the original hypotheses that might be addressed further in future studies.

The data obtained should be interpreted with caution because heteroscedasticity was detected. Although the cause could not be clearly identified, the presence of heteroscedasticity could mean that smaller and similar cooperatives present similar variation in their diversification and production base strategies.

This work sought to generate knowledge regarding operations management, which was achieved by demonstrating that production diversification in a dynamic and relevant economic sector, that is, agricultural cooperatives, is limited in terms of financial return when performed in an isolated mode. Hence, cooperatives’ production managers should take into account the totality of structural production factors during their planning activities.

The purpose of this paper is to develop a goodness index based on Hamming distance and ordered weighted averaging distance (OWAD), which is useful to make decisions. These alternative measures enrich the results of diagnostic fuzzy models and facilitate the experts’ task in decision-making. An application to a set of firms to verify the results is also presented.

The paper follows the basis of OWA operators to design a methodology to reduce the map of causes of business failure into monitoring key areas.

The present paper introduces two alternative measures to test the proposal of grouping. In the empirical application, the superiority of the minimum T-norm over other decision rules is verified. The ordered weighted averaging distance (OWAD) goodness index predicts a better adjustment over the index built using OWA and Hamming distance measures.

A useful mechanism to reduce the map of causes or diseases detected in key areas is added through this analysis. At the same time, these key areas can be disaggregated once some alert indicator is identified; this allows knowing the causes that require special attention. This application of OWA can encourage the development of suitable computer systems for monitoring the firm’s problems, alerting regarding failures and easing decision-making.

A comparison of grouping causes into key areas through a goodness index based on Hamming distance and OWAD is proposed. These contributions enrich the Vigier and Terceño (2008) model and could be applied to any model of fuzzy diagnosis to test the results.