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The purpose of this paper is to study connections between interest rate risk and credit risk and investigate the inter-risk diversification benefit due to the joint consideration of these risks in the banking book containing sovereign debt.

The paper develops the historical derivative-based value at risk (VaR) for assessing the downside risk of a sovereign debt portfolio through the integrated treatment of interest rate and credit risks. The credit default swaps spreads and the fixed-leg rates of interest rate swap are used as proxies for credit risk and interest rate risk, respectively.

The proposed methodology is applied to the decade-long history of emerging markets sovereign debt. The empirical analysis demonstrates that the diversified VaR benefits from imperfect correlation between the risk factors. Sovereign risks of non-core emu states and oil producing countries are discussed through the prism of VaR metrics.

The proposed approach offers a clue for improving risk management in regards to banking books containing government bonds. It could be applied to access the riskiness of investment portfolios containing the wider spectrum of assets beyond the sovereign debt. The approach represents a useful tool for investigating interest rate and credit risk interrelation.

The proposed enhancement of the traditional historical VaR is twofold: usage of derivative instruments’ quotes and simultaneous consideration of the interest rate and credit risk factors to construct the hypothetical liquidity-free bond yield, which allows to distil liquidity premium.

This chapter reassesses the economics of interest rate risk management in light of the global financial crisis by developing a derivative-based integrated treatment of interest rate and credit risk interrelation. The decade-long historical data on credit default swap spreads and interest rate swap rates are used as proxy measures for credit risk and interest rate risk, respectively. An elasticity of interest rate risk and credit risk, considered a function of the business cycle phases, maturity of instruments, economic sector, creditworthiness, and other macroeconomic parameters, is investigated for optimizing economic capital. This chapter sheds light on how financial institutions may address hedge strategies against downside risks implementing the proposed derivative-based integrated treatment of interest rate and credit risk assessment allowing for optimization of interest rate swap contracts. The developed framework of integrated interest rate and credit risk management is of special importance for emerging markets heavily dependent on foreign capital as it potentially allows emerging market banks to improve risk management practices in terms of capital adequacy and Basel III rules. Analyzing diversification versus compounding effects, it allows enhancing financial stability through jointly optimizing Pillar 1 and Pillar 2 economic capital.

The purpose of this paper is to discuss the stock price adjustment after a dividend distribution, allowing for different types of investors and market imperfections, including taxes and transaction costs.

An arbitrage model is developed to determine the possible equilibria for the stock price adjustment, after a dividend distribution. The approach is theoretical, providing general results.

The model shows that, in the presence of different types of investors, a unique equilibrium only exists in the absence of transaction costs. The allowance for market imperfections, such as taxes and transactions costs, implies that there is not a unique equilibrium for the level of stock price adjustment following a dividend distribution event, but rather there is much possible equilibrium. It is showed that the observation of abnormal trading volume around the dividend event may give us some insights on the identification of which investors are present in the market.

On future studies of the stock price adjustment after dividend distributions, it should be taken into account that there is no unique equilibrium.

The main contribution of this paper is to show that the existence of taxes and transaction costs precludes the determination of a unique equilibrium point for the stock price adjustment after a dividend distribution.

We present a critical literature review debating Brazilian research on social and environmental accounting (SEA). The aim of this study is to understand the role of politics in the construction of hegemonies in SEA research in Brazil. In particular, we examine the role of hegemony in relation to the co-option of SEA literature and sustainability in the Brazilian context by the logic of development for economic growth in emerging economies. The methodological approach adopts a post-structural perspective that reflects Laclau and Mouffe’s discourse theory. The study employs a hermeneutical, rhetorical approach to understand and classify 352 Brazilian research articles on SEA. We employ Brown and Fraser’s (2006) categorizations of SEA literature to help in our analysis: the business case, the stakeholder–accountability approach, and the critical case. We argue that the business case is prominent in Brazilian studies. Second-stage analysis suggests that the major themes under discussion include measurement, consulting, and descriptive approach. We argue that these themes illustrate the degree of influence of the hegemonic politics relevant to emerging economics, as these themes predominantly concern economic growth and a capitalist context. This paper discusses trends and practices in the Brazilian literature on SEA and argues that the focus means that SEA avoids critical debates of the role of capitalist logics in an emerging economy concerning sustainability. We urge the Brazilian academy to understand the implications of its reifying agenda and engage, counter-hegemonically, in a social and political agenda beyond the hegemonic support of a particular set of capitalist interests.

“A knowledge of different literatures is the best way to free one's self from the tyranny of any of them.” Jose Marti, Cuban writer, poet and statesman.

The objective of this chapter is to outline an integrating picture of the situation, representativeness, contradictions, and challenges that the treatment of diversity assumes in Brazilian society and in its organizations. The aim is to reply to the research question: “How are public policies and organizational practices constructing ways of inserting and valuing the diversity of Brazilians?” We provide a brief background of the changes in the global and Brazilian contexts over the last few decades and analyze the demographic data presented in the 2010 Census and in studies on diversity that were published in the main periodicals in the Administration area in Brazil, between 2000 and 2014 with regard to the segments most widely studied in the academic literature: Afro-descendants, homosexuals, the elderly, Indians, women, and people with a disability. The conclusion reached is that, in a short period of time, Brazil has made great strides in constructing the mechanisms and legal devices for recognizing the rights of its diverse population and that private companies are in the initial stages of introducing diversity programs.

The purpose of this paper is to evaluate the effect of the bodying agents (erythritol, sorbitol, xylitol and polydextrose) and their mixtures on the preparation of mixed Brazilian Cerrado fruit preserves (marolo, soursop and sweet passion fruit).

The simplex mixture design was used for product optimization and the preserves evaluated by physical, physicochemical and sensory properties. The research data were analyzed using regression equations on SAS University and exploratory analysis by principal component analysis and parallel factors techniques on Sensomaker software.

The results show that erythritol and polydextrose bodying agents should not be used as pure components because they provoked changes in the properties of the final product and negatively influenced the sensory attributes. While the high concentrations of xylitol and sorbitol provided better sensorial acceptance, being considered, therefore, good substitutes for sucrose.

This research has shown it is feasible to use bodying agents in the preparation of mixed Brazilian Cerrado fruit preserves without added sugar.

The development of mixed preserves could increase population access to the Brazilian Cerrado fruits. In addition, sugar-free preserves are a viable alternative for adding value to the product and satisfy all the consumers.

The combination of properties of two or more fruits and use of bodying agents can improve sensory, physical and physicochemical characteristics of the final product. However, there are technological challenges to evaluate in the preparation of mixed Brazilian Cerrado fruit preserves without added sugar.

This research is about the evaluation of organizational risks in the hospitality sector, using the experience of a guest with visual impairments. The objectives of this research are to (1) identify if the previous expectations of a guest with visual impairments trip will be exceeded in the final; (2) classify organizational risks in the hotel sector; (3) verify if there are direct impacts on the travellers' future behaviour, such as destination recommendation and intention to return to the destination. Despite of the fact that organizational risks are composed by transport, hospitality and tourism attractions (tourism players can jeopardize the success of a travel experience), this research will only focus on the hospitality sector. To assure the achievement of the referred objectives, a case study will be used based on the analysis of the experience of a Portuguese guest with disabilities, who traveled alone, around Europe, with a guide dog. His expectations, constraints and risks will be analysed through a deep-depth interview, in which questions are organized from the literature review. Finally, it is expected that this exploratory research helps to find new avenues for the study of organizational risks, more precisely, hospitality risks for disabled people.