Search results for "Financial health"

Notes on Using the Hidden Asset or the Contribution Asset to Compile the Actuarial Balance for Pay-as-You-Go Pension Systems

2010

The aim of this paper is twofold: to determine the connection between the “contribution asset” and the “hidden asset” and to discover whether using either of them to compile the actuarial balance in Swedish-type pay-as-you-go pension systems will provide a reliable solvency indicator. We develop an overlapping generations model and apply it to the defined benefit pay-as-you-go system, although it would be just as valid for NDC systems. On the theoretical side the main conclusion is that, despite their very different natures, in a simplified scenario the contribution asset and the hidden asset could coincide if r - the real rate of interest - is equal to the growth in the wage bill. On the a…

The impact of partners’ financial condition on alliance contract design: evidence from biotech-pharma alliances

2014

CCmo varra la importancia del book value y del net income sobre el precio del mercado cuando existe una baja liquidez (How Importance of Book Value a…

2016

Spanish Abstract: El objetivo de este articulo es comprobar como varia la importancia en los cambios del net income (NI) y de los cambios del book value (BV) sobre la variacion del valor de las empresas cuando hay una baja salud financiera a corto plazo. Para ello se ha considerado una muestra de 862 empresas que cotizan en los principales mercados de valores y que pertenecen a los principales indices bursatiles mundiales, como son el FTSE 350, S&P 500, FTSE Italy Star, DAX 30, NIKKEI 300, CAC 40 e IBEX 35. A traves de nuestros resultados podemos concluir que, cuando hay una ratio de liquidez inferior al 90%, los cambios en el valor de mercado de la empresa dependeran mas de variaciones en …

Assessment of bank financial health in Latvia

2019

Financially strong, trustworthy and reliable banks form the basis of every economy and are a vital precondition for the stable economic development of every country. The financial health of banks is important for different stakeholders, including bank clients, correspondent banks, state and others. Therefore, lack of appropriate measures for bank financial health can cause a number of risks for the bank stakeholders. Traditionally the assessment of bank financial health and reliability is done by the international rating agencies as Standard & Poor’s, Moody’s and Fitch. These ratings are widely recognized worldwide; however, due to different reasons ratings assigned by the international rat…

Corporate Distress and Restructuring with Macroeconomic Fluctuations: The Cases of GM and Ford

2011

Traditional methods for evaluating corporate credit risk rarely consider the impact of the macro economy on corporate value and performance. We argue that lenders and management can obtain valuable information about the need for and approach to restructuring by decomposing default predictions into intrinsic and macroeconomic factors. We apply a method previously used for measuring macroeconomic exposures on default predictions in order to filter out macroeconomic factors. In this paper the method is applied on an analysis of the Z-scores for GM and Ford for the period 1996-2005. The macro-economy has affected the two firms in different ways with implications for managements and creditors ap…