Search results for " business."

Stock Volatility Predictability in Bull and Bear Markets

2020

Recent literature on stock return predictability suggests that it varies substantially across economic states being strongest during bad economic times. In line with this evidence, we document that stock volatility predictability is also state dependent. In particular, using a large data set of high-frequency data on individual stocks and a few popular time-series volatility models, in this paper we comprehensively examine how volatility forecastability varies across bull and bear states of the stock market. We find that the volatility forecast horizon is substantially longer when the market is in a bear state than when it is in a bull state. In addition, the volatility forecast accuracy is…

Bank Loan Loss Accounting and Its Contracting Effects: The New Expected Loss Models

2019

As a result of the recent financial crisis, several key institutions urged the IASB and the FASB to re-evaluate their models for loan loss accounting and use more forward-looking information. The paper examines the principal features of the new expected loss approach, taking into account the tensions between accounting and prudential objectives with respect to credit losses. We discuss the rationales for the change introduced by IFRS 9 and explore the differences between the IASB and the FASB models. Based on the notions of accounting conservatism and earnings management, we discuss the potential consequences of the new models. While both the FASB and the IASB model are more conservative th…

A Framework to Measure Intellectual Capital

2016

New technologies have changed the structure of companies shifting the focus of creating value from material resources to intangibles. The competitive advantage is increasingly reliant on the presence of specific intangibles such as knowledge, experience, communication skills that are the main source of competitive advantage. Among the intangibles based on knowledge, intellectual capital certainly occupies a prominent place. In recent years the increasing complexity that characterized the business management influenced companies to adopt new models of reporting and accounting, taking into account issues and intangible factors not considered so far with the right attention. The objective of t…

An analysis of recent research on venture capital networks

2019

Purpose – this paper examines recent trends in venture capital network research. Network analysis is a useful approach for analyzing inter-organizational networks, especially for venture capitalists, which are characterized by plenty of connections. Although important steps ahead have been made, several research questions are still unanswered. Research methodology – this brief review analyses deeply three papers which are representative of the novel scientific literature in this field. Scrutinizing these works, I identify their points of strength and weaknesses, in order to understand how to pave the way for further research. Findings – this paper shows that the study of network weak ties a…

Governing Complex Strategic Networks: Emergence Versus Enabling Effects

2017

In today’s knowledge-based economy, the sources of competitive advantage increasingly lie in webs of relationships between a variety of firms and organizations that, over time, lead to the emergence of strategic networks. As the performances of both the network actors and the whole network are strictly linked with the coordination and governance of network actors and their activities, this study aims to shed light on the ways in which the processes of network coordination and governance take place. Strategic networks are here viewed as complex adaptive systems, and the twin nature of the processes of strategic network coordination and governance is examined. On one hand, I underscore the em…

A continuous time tug-of-war game for parabolic $p(x,t)$-Laplace type equations

2019

We formulate a stochastic differential game in continuous time that represents the unique viscosity solution to a terminal value problem for a parabolic partial differential equation involving the normalized $p(x,t)$-Laplace operator. Our game is formulated in a way that covers the full range $1<p(x,t)<\infty$. Furthermore, we prove the uniqueness of viscosity solutions to our equation in the whole space under suitable assumptions.

The Importance of Alliances in Firm Capital Structure Decisions: Evidence from Biotechnology Firms

2015

Building on finance research, we argue that the ex post hazards arising from alliance formation depend upon the firm's financial condition. Financial distress jeopardizes the continuity of an alliance and the value of the investments involved. Thus, firms should reduce leverage to signal continued commitment and to induce investments from alliance partners. Accordingly, we find that a firm's current alliance propensity predicts its subsequent capital structure decisions and that this relationship is most pronounced in the presence of other exchange hazards. Our paper contributes to alliance research and to the growing literature discussing the strategic consequences of capital structure. Co…

Loan loss provisions. A study by economic cycles

2017

Este trabajo estudia los determinantes de las dotaciones para provisiones del deterioro de los créditos en las entidades de crédito españolas desde 1983 al segundo trimestre de 2013. Resultan significativos, además de la morosidad, las provisiones genéricas, el margen de interés, la estacionalidad centrada en el cuarto trimestre y los periodos de crisis. Al ser un periodo extenso se estudian cómo actúan los determinantes en cada uno de los 4 ciclos económicos que se han dado. Se encuentran similitudes importantes en los periodos de crisis y en los periodos de crecimiento, junto a las singularidades de los propios ciclos. Las aportaciones de esta investigación son: i) el diferente comportami…

An institutional perspective on corruption in transition economies

2017

Submitted version (preprint). This is the pre-peer reviewed version of the following article: Alon, A. & Hageman, A. (2017). An institutional perspective on corruption in transition economies. Corporate governance: An International Review, 25(3), 155-166, which has been published in final form at https://doi.org/10.1111/corg.12199. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. Manuscript Type: Empirical Research Question/Issue: Companies operating in transition economies encounter a broad range of potential challenges. In the area of tax, firms make direct tax payments but may also encounter unofficial t…

2019

Research Summary We explore the qualitative differences in entries and exits over time. Using qualitative and quantitative data on 96 firms over 200 years, we study industry evolution from the perspective of individual decision‐making situations. Our historical and statistical analyses reveal the vital role of technology investments in determining firm outcomes, and the technological, institutional and governance dynamics that lead firms to invest or to abstain. Our main theoretical and methodological contribution concerns the importance of the multiplicity of firm‐level rationalities and decisions as fundamentals in theorizing on industry evolution. Managerial Summary What determines firm …