Search results for "Economic capital"
showing 10 items of 23 documents
Absorptive Capacity and Social Capital: Innovation and Environmental Regulation
2010
Norwegian paper and pulp mills are subject to strict environmental regulation. The mills conduct research and development for reducing pollution. Absorptive capacity indicates their competence. Firms are part of a social network of connections with external actors that include other paper and pulp mills, suppliers, customers, research institutes, and universities that help them in developing technologies. These relations represent their social capital. Some firms have access to more and better resources than other firms. Measuring firms’ absorptive capacity and access to social capital, we analyze their success in reducing pollution levels. There is a strong interaction effect between absor…
SOCIAL CAPITAL AND BANK PERFORMANCE: AN INTERNATIONAL COMPARISON FOR OECD COUNTRIES
2008
Over the last few years the literature on social capital and bank efficiency analysis has expanded rapidly. We merge them by analysing how social capital affects bank efficiency in OECD countries. We use activity analysis techniques to measure efficiency, and social capital, which is related to the concept of generalized trust, is considered an environmental variable. Results suggest that the effect of social capital is more relevant for those financial institutions operating in low-social-capital environments. In these cases, inefficiencies are biased upwards, and controlling for social capital enables these banks to move up in the efficiency rankings.
Economic income, historical costing income and conservatism
2020
The paper intends to contribute at the debate on the ‘Evolutionary Advantage of Cost Accounting and Conservatism’ ( Accounting, Economics and Law: A Convivium, 2019. 9. issue) , founded on Braun’s study (2016) about The Ecological Rationality of Historical Costs and Conservatism. Moving from the IASB Conceptual Framework (2013) it stresses the renewed interest in income concept. The economic financial crisis of 2008-9 stimulated discussions between the traditional ‘received view’ of ‘cost-revenue approach’ (historical cost accounting) and ‘balance-sheet approach’ (‘current values’ and ‘present values’, that is ‘economic values’). Revaluations of assets, liabilities and owners’ equities are …
Basel II and bank lending to emerging markets: Evidence from the German banking sector
2007
Abstract This paper investigates whether the new Basel Accord will induce a change in bank lending to emerging markets using a comprehensive new data set on German banks’ foreign exposure. We test two interlinked hypotheses on the conditions under which the change in the regulatory capital would leave lending flows unaffected. This would be the case if (i) the new regulatory capital requirement remains below the economic capital and (ii) banks’ economic capital to emerging markets already adequately reflects risk. On both accounts the evidence indicates that the new Basel Accord should have a limited effect on lending to emerging markets.
Women Entrepreneurship and Performance
2011
Research on gendered performance in entrepreneurship is scarce, making the resolution of this issue a relevant research field. Chapter 7 starts by describing what we understand by performance, widening the concept from a financial to an operational or even a stakeholders’ satisfaction level. Next, we present some relevant research that suggests explanations for a gendered difference in entrepreneurs’ performance, mainly in terms of the existence of horizontal segregation, differences in size and in personal attributes of entrepreneurs. The discussion about gender differences in resource possession and accessibility is then introduced as a fundamental concern in this debate, by describing ec…
The Risk-Relevance of Accounting Data: Evidence from the Spanish Stock Market
2006
This paper analyses the relevance of accounting fundamentals to inform about equity risk as measured by the cost of equity capital. Assuming the latter is a summary measure of how investors make decisions regarding the allocation of resources, the strength of the association between the cost of capital and the accounting-based measures of risk indicates how important these measures are for market participants when making economic decisions. To infer the cost of equity capital, we use the O'Hanlon and Steele's method, which is based on the residual income valuation model. Moreover, we use the insights from this model to provide a theoretical underpinning for the choice of the accounting vari…
The effectiveness of bank capital adequacy regulation: A theoretical and empirical approach
2003
The aim of this paper is to analyse how banking firms set their capital ratios, that is, the rate of equity capital over assets. In order to study this isue, two theoretical models are developed. Both models deal with the existence of an optimal capital ratio; the first one for firms not affected by capital adequacy regulation, the second one for firms which are. The models have been tested by estimating a disequilibrium model using data of Spanish savings banks.
Corporate Reputation and the Theory of Social Capital
2013
Valuing Common and Preferred Shares in Venture Capital Financing
2012
Abstract This article compares five different methodologies to value common and preferred shares with liquidation rights in a single-period setup of venture capital financing: the venture capital (VC) method; discounted cash-flow valuation with the Capital Asset Pricing Model (CAPM); discounted cash-flow valuation with market model in logs; a risk-preference-based approach; and the real options approach. The risk preference and the real option methodologies are the only ones that can properly account for the contingency in preferred stock. With small financings and small multiples the choice of methodology is not critical; however, with stronger preference rights, the VC method, the CAPM, a…
Intellectual Capital and its Relationship with Universities
2015
Abstract The Intellectual Capital of a firm is the sum total of its Human Capital, Structural Capital and Relational Capital. These assets form a source of distinct competitive advantage and distinguish the performance of one firm from the other. Some organizations appear to continue relying on traditional resources for wealth creation but they should increase their attention towards a greater reliance on intellectual capital factors. This study attempts to investigate the role of intellectual capital in nowadays modern organizations and in particular, its relevance for education institutions such as universities.