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1 – 10 of 12Maria Teresa Medeiros Garcia and Maria José Trindade
The purpose of this paper is to analyze the factors that influence the profitability of 17 banks in Angola between 2010 and 2016, as low profitability weakens the ability and…
Abstract
Purpose
The purpose of this paper is to analyze the factors that influence the profitability of 17 banks in Angola between 2010 and 2016, as low profitability weakens the ability and willingness of banks to finance the wider economy.
Design/methodology/approach
The paper conducts panel data analysis, using two measures of profitability: the return on average assets and the return on average equity. Several control variables were included concerning both bank-specific and macroeconomic characteristics which have not been considered in previous studies.
Findings
The authors conclude that several independent variables have an impact which is different from expected, especially regarding ownership, which shows positive statistically significant effect on banks’ profitability.
Originality/value
To the best of the authors’ knowledge, this is the first attempt to examine determinants of banks’ profitability in Angola, both internal and external, which have not been considered in previous studies.
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Maria Teresa Medeiros Garcia and José Amílcar Neves Domingos
The objective of the paper is to test the existence of a direct effect between the funding level of a firm's pension fund and its respective market price in Portugal, from 2010 to…
Abstract
Purpose
The objective of the paper is to test the existence of a direct effect between the funding level of a firm's pension fund and its respective market price in Portugal, from 2010 to 2015, using a selected sample of Portuguese Stock Index (PSI Geral) firms. Although this relationship has been contemplated in the literature, especially in the United States and the United Kingdom, there is no finding concerning Portugal. The study of pension assets and obligations is of particular importance to investors and market makers alike.
Design/methodology/approach
The paper utilizes two distinct methods – a cross-sectional model and a variable-effect event study – to assess the hypothesis that an increase in pension deficit is reflected in the market value of a firm by a decrease of equal magnitude.
Findings
This paper finds that a firm's market value is not reduced by an increase in pension deficit and that pension liabilities are already integrated in corporate debt. These results suggest that shareholders fail to take into account occupational pension plan funding status when valuing a firm in such a way that contrasts with the normal evaluation of debt.
Originality/value
To the best of the authors' knowledge, this is the first attempt to examine this relationship in Portugal.
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Maria Teresa Medeiros Garcia and Ana Jin Ye
The aim of this paper is to study the relationship between banks' ownership structure and their risk-taking behavior as well as the impact of banking regulation on banks' approach…
Abstract
Purpose
The aim of this paper is to study the relationship between banks' ownership structure and their risk-taking behavior as well as the impact of banking regulation on banks' approach to taking risk, after the 2008 financial crisis.
Design/methodology/approach
The empirical analysis considers a sample of listed banks from European Union (EU) countries, over the period of 2011–2016 and uses the generalized least squared (GLS) random effect (RE) method, following Baltagi and Wu (1999) and Pathan (2009).
Findings
The authors find that the structure of the board of directors can influence bank risk behavior but not the ownership concentration. No significant relation was found between the influence of the regulatory environment and bank risk, i.e., stricter regulation has no effect on risk taking by banks.
Originality/value
The paper contributes to the literature in risk measures and banks' corporate governance. It also considers the impact of regulatory framework on banks' risk-taking behavior. The aim of this empirical analysis was to examine in greater detail these subjects and the dynamics between them after the significant structural changes in the macroeconomic environment and in the financial system, particularly with regards the regulatory and supervisory framework following the 2008 financial crisis, using data from European Union countries.
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Maria Teresa Medeiros Garcia and Rafael Figueira
The purpose of this paper is to explore the determinants of homeownership in Europe.
Abstract
Purpose
The purpose of this paper is to explore the determinants of homeownership in Europe.
Design/methodology/approach
In this study, a logit model that predicts whether an individual is a homeowner or not was estimated. Wave 6 (2015) from the Survey of Health, Ageing and Retirement in Europe was used, through a sample of 46,003 respondents across all Europe and through four subsamples (Eastern, Southern, Northern and Western Europe).
Findings
The findings reveal that several factors influence homeownership, namely, geographic location, age, gender, number of children, marital status, job situation, household income, high education, years of education, political orientation and holding bonds, stocks, mutual funds, bank accounts, saving accounts, individual retirement account or life insurance. Different results were obtained when the four subsamples were considered.
Research limitations/implications
The research findings provide an attempt to disentangle the main factors influencing homeownership. However, only individuals above 50 years of age were considered because of the database characteristics.
Practical implications
This paper provided insights to consider public policies that try to increase homeownership rates.
Social implications
The results put in evidence the likelihood characteristics of a homeowner. Therefore, public policies should address those who do not fulfill those when promoting higher homeownership rates. For example, attention should be given to low and middle-income individuals.
Originality/value
The paper emphasised the characteristics of a homeowner in Europe, contributing to the discussion on this topic among policymakers, practitioners and researchers in Europe.
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Maria Teresa Medeiros Garcia and Joana Teresa Silva Cortegano
The purpose of this paper is to analyse the determinants of workers’ compensation insurance prices in Portugal.
Abstract
Purpose
The purpose of this paper is to analyse the determinants of workers’ compensation insurance prices in Portugal.
Design/methodology/approach
Multiple regression analysis was used to study the insurance price determinants. The independent variables considered are: payroll, number of employees, and incidence rate. In addition, three categorical variables were used: region, classification of economic activities, and enterprise size. A cross-firm panel data sample from the SABI database of 1,435 firms was considered, over a time horizon from 2010 to 2012. Furthermore, the sample split criterion was the enterprise size.
Findings
As expected, the results suggest that payroll and number of employees are related with workers’ compensation insurance prices. Furthermore, incidence rate, region, type of economic activities, and enterprise size have a positive and significant influence on premiums.
Research limitations/implications
More panel data are needed to allow a greater focus on the impacts of GDP fluctuations and sectoral consolidation on insurance pricing. Further research could also include the impact of capital/reserving cycles, which can be driven both by economic shocks and the competition cycle. It is well known that insurers tend to reduce reserving standards when under pressure, and this can result in inadequate pricing.
Practical implications
The process of workers’ compensation insurance price formation is disentangled. The results suggest that the workers’ compensation insurance premiums behave as expected, especially under periods of economic strain. Therefore, workers’ compensation rate regulation should take this evidence into account, specifically through the establishment of minimum rates, which will protect the insurer, the employer, and the employees alike.
Originality/value
The paper is part of a considerable literature on insurance pricing in workers’ compensation, most of which has centred on private markets in the USA. This paper is the first empirical work that employs private market data for Portugal.
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Maria Teresa Medeiros Garcia and Ricardo António Abreu Oliveira
The purpose of this paper is to construct and evaluate value and growth portfolios in Portugal, Italy, Ireland, Greece and Spain, which are commonly known as the EU PIIGS, from…
Abstract
Purpose
The purpose of this paper is to construct and evaluate value and growth portfolios in Portugal, Italy, Ireland, Greece and Spain, which are commonly known as the EU PIIGS, from 2003 to 2015. Previous research evidence suggests that stocks trading at a lower price relative to their fundamentals (value stocks) tend to outperform stocks that trade at higher prices (growth stocks) in the long run. Although this market anomaly has been studied immensely worldwide, especially for the US stock market, there is no clear evidence whether such an assertion is applicable in less-renowned countries.
Design/methodology/approach
The paper utilises Fama and Macbeth (1973) regressions and its model extensions.
Findings
This paper finds a significant value premium in these countries, which is compatible with previous studies conducted worldwide.
Originality/value
To the best of the authors’ knowledge, this is the first attempt to examine this asset pricing anomaly in the PIIGS.
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Maria Teresa Medeiros Garcia and João Pedro Silva Martins Guerreiro
– The purpose of this paper is to analyze the profitability of 27 universal banks in Portugal over the period from 2002 to 2011.
Abstract
Purpose
The purpose of this paper is to analyze the profitability of 27 universal banks in Portugal over the period from 2002 to 2011.
Design/methodology/approach
The paper conducts ordinary least squares estimations with fixed effects using three measures of profitability: the return on average assets, the return on average equity and the net interest margin. Several independent variables were included concerning both bank-specific and macroeconomic and industry-specific characteristics which have not been considered in previous studies. In addition, the sub-sample between 2008 and 2011 was considered for comparative analysis.
Findings
The authors concluded that the independent variables selected, with few exceptions, behaved accordingly to what was expected.
Originality/value
To the best of the author’s knowledge, this is the first attempt to examine determinants of banks’ profitability in Portugal, both internal and external, using time series data, which have not been considered in previous studies.
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The purpose of this paper is to investigate empirically the relationship between property‐liability insurance premiums and economic and financial development in the case of…
Abstract
Purpose
The purpose of this paper is to investigate empirically the relationship between property‐liability insurance premiums and economic and financial development in the case of Portugal, assuming a supply‐leading causality pattern of development. In other words, the expansion of the financial system precedes the demand for services.
Design/methodology/approach
The paper conducts OLS estimations between premiums and the gross domestic product (GDP) in order to evaluate the economic growth, in addition to the ratio of the broader definition of money (M2) to GDP and the ratio of currency to demand deposits (M1/M2), in order to assess financial development.
Findings
The level of the gross domestic product is the only factor explaining the level of property‐liability insurance demand in Portugal.
Originality/value
To the best of the author's knowledge, this is the first attempt to examine determinants of property‐liability casualty insurance in Portugal, using time series data.
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Barbara de Lima Voss, David Bernard Carter and Bruno Meirelles Salotti
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…
Abstract
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.
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