Search results for "Cash"
showing 10 items of 112 documents
Incentive systems for risky investment decisions under unknown preferences
2017
Abstract Our paper examines how to design incentive systems for managers making multi-period risky investment decisions. We show how compensation functions and performance measures must be designed to ensure that managers implement the expected value-maximizing set of projects. The Relative Benefit Cost Allocation (RBCA) Scheme 1 and its extensions revealed in literature on unknown time preferences generally fail to do so under unknown time and risk preferences. We illustrate that when coping with such unknown preferences in a risky setting, a specific state-dependent allocation rule is required. We introduce such an allocation scheme, which we refer to as the State-Contingent RBCA Scheme, …
Direct regional economic impact of Germany’s 1. FC Kaiserslautern through participation in the 1. Bundesliga
2015
In discussions about the use of public money for popular sports such as clubs in Germany’s 1. Bundesliga, it is often argued that the funds are well invested due to the cash flows generated by these organizations for their home regions. However, others claim the opposite. They argue that actually no positive impact is generated and, even worse, that money is leaving the region due to the clubs. The study presented here analyses the financial flows generated by the 1. FC Kaiserslautern for its home city (Kaiserslautern) and home state (Rhineland-Palatinate) during the 2010/11 season when the club participated in the 1. Bundesliga. Based on a 3-step model, the economic impact is calculated by…
Selecting sewage sludge treatment alternatives in modern wastewater treatment plants using environmental decision support systems
2015
The importance of the sewage sludge treatment within the field of wastewater treatment plants (WWTPs) suggests new dimensions of analysis where the relevance of economic criteria combined with the associated environmental issues are increasing the sludge management complexity. For supporting the decision process and for comparative purposes, this study assesses five alternative configurations for sludge treatment, namely: mesophilic and termophilic anaerobic digestion plus composting, incineration, gasification, and supercritical water oxidation (SCWO). The global warming potential (GWP) and the annual cash flow of each alternative are used to estimate a composite indicator for each alterna…
The value relevance of losses revisited: the importance of earnings aggregation
2011
Accepted version of an article published in the journal: Global Business and Economics Review. Also available from the publisher at: http://dx.doi.org/10.1504/GBER.2011.040728 Prior research has suggested that earnings explain a larger portion of the variation in stock returns when disaggregated into components. This study shows that the increase in explanatory power stems primarily from disaggregation of negative earnings. When accounting earnings are sufficiently disaggregated into items, there is no longer a statistical difference in the value relevance of positive and negative earnings. Thus, negative earnings are also useful to stock investors. The findings are attributed to earnings p…
How fair-value accounting can influence firm hedging
2012
Published version of an article in the journal: Review of Derivatives Research. Also available from the publisher at: http://dx.doi.org/10.1007/s11147-012-9084-y The potential influence of accounting regulations on hedging strategies and the use of financial derivatives is a research topic that has attracted little attention in both the finance and the accounting literature. However, recent surveys suggest that company hedging can be substantially influenced by the accounting for financial instruments. In this study, we illustrate not only why but also how the accounting regulations may affect hedging behavior. We find that under mark-to-market accounting, most firms concerned with earnings…
The Investment on Capital Market: From Target Price Valuation Models to Investor Final Decision
2018
The investments on capital market are more attractive nowadays considering the short-term potential earnings that this particular market can offer but also the opportunities generated by the new entry companies. The aim of the paper is to present different valuation models of share in order to identify/calculate a target price, on one hand, and to emphasize the impact of both internal and external information on price per share, on the other hand. The target price is an important instrument that drives, alongside with industry, financial, and risk analysis, the investment decision to buy, to hold, and to sell. The key issues in determining target price are equity analysis, cash flow forecas…
The cost of equity and exchange listing evidence from the French stock market
1997
We reconsider the behaviour of prices around the period close to the listing on the Marché à Règlement Mensuel (RM). First, an event study based on a sample of 60 firms has been set up to test the existence of the exchange listing effect on the French market. Then we discuss and test the financial reasons which can justify abnormal returns around the announcement day and the day of the listing. We explore four reasons to explain the impact of the stock exchange listings: one is the informative content of the operation which induces an upward revision of the future earnings. Three other hypotheses rely on a decrease in the discount rate originated by less risky cash flows, an increase in tra…
The determinants of increasing equity market comovement: economic or financial integration?
2010
This paper investigates to what extent the substantial increase in exposures of local European equity market returns to global shocks is mainly due to a convergence in cash flows (“economic integration”), to a convergence in discount rates (“financial integration”), or to both. We find that this increased exposure is nearly entirely due to increasing discount-rate betas. This finding is robust to alternative ways of calculating discount-rate and cash-flow shocks.
La compra silenciosa. Arrendamientos, estabilidad y mejoras en la agricultura valenciana de regadío (1850–1930)
2007
Resumen Este articulo analiza como fue posible, en el regadio valenciano, un desarrollo agrario basado en el arrendamiento de pequenas explotaciones. Del estudio de los contratos firmados en la huerta de Gandia se deduce, en primer lugar, que los arrendatarios ocupaban la parcela durante un periodo bastante prolongado de tiempo, que tendio a crecer durante la segunda mitad del siglo XIX; y, en segundo, que a menudo los cultivadores eran indemnizados al finalizar su contrato por las mejoras que habian introducido. A largo plazo, todo ello consolido su posicion, porque el cultivador se convirtio en “semipropietario” de hecho de la tierra mejorada. Por su parte, los terratenientes rentistas ob…
Money in the "Body Politick" : The Analysis of Trade and Circulation in the Writings of Seventeenth-Century Political Arithmeticians.
2005
International audience; This article discusses the analysis of trade and circulation in the writings of seventeenth-century political arithmeticians. Political arithmetic was in its way an anatomy of the social body. William Petty titled his 1672 book The Political Anatomy of Ireland. In his preface he explicitly claimed to be following Francis Bacon, highlighting the experimental method and the idea that analytical methods can be transposed from one discipline to another. He thus drew a parallel between the natural body and the body politic. It was a widely held idea that money guaranteed the nation's health; conversely its poor state of health could lead to the wasting away of the body po…