Search results for "Profits"
showing 10 items of 10 documents
A branch-and-cut algorithm for the Profitable Windy Rural Postman Problem
2016
[EN] In this paper we study the profitable windy rural postman problem. This is an arc routing problem with profits defined on a windy graph in which there is a profit associated with some of the edges of the graph, consisting of finding a route maximizing the difference between the total profit collected and the total cost. This problem generalizes the rural postman problem and other well-known arc routing problems and has real-life applications, mainly in snow removal operations. We propose here a formulation for the problem and study its associated polyhedron. Several families of facet-inducing inequalities are described and used in the design of a branch-and-cut procedure. The algorithm…
Is Momentum in Currency Markets Driven by Global Economic Risk?
2015
This article investigates the potential link between momentum in currency returns and global economic risk as measured by currency return dispersion (RD). We find that the spread on zero-cost currency momentum strategies is larger and highly significant in high RD states compared to low RD states. Also, the relation between these momentum payoffs and global economic risk appears to increase linearly in risk. Further tests indicate that the same macroeconomic risk component in currency markets is present in global equity markets. Based on this evidence, we conclude that global economic risk as proxied by RD helps to explain currency momentum profits.
Bootstrapping profit change: An application to Spanish banks
2012
The aim of this study is to provide a tool which enables us to conduct statistical analysis in the context of changes in productivity and profit. We build on previous initiatives to decompose profit change into mutually exclusive and exhaustive sources. To do this we use distance functions, which are calculated empirically using linear programming techniques. However, we may not learn a great deal by solving these linear programs unless methods of statistical analysis are used to examine the properties of the relevant estimators. Our purpose is to provide a methodology based on bootstrap that allows us to conduct statistical inference for the profit change decomposition. Thus, it will be po…
The Cyclicality of Bank Credit Losses and Capital Ratios under Expected Loss Model
2023
We model the evolution of stylised bank loan portfolios to assess the impact of IFRS 9 and US GAAP expected loss model (ECL) on the cyclicality of loan loss provisions (LLPs), realised losses and capital ratios of banks, relative to the incurred loss model of IAS 39. We focus on the interaction between the changes in LLPs charges (the flow channel) and stocks (the stock channel) under ECL. Our results show that, when GDP growth doesn’t demonstrate high volatility, ECL model smooths the impact of credit losses on profits and capital resources, reducing the pro-cyclicality of capital and leverage ratios, especially under US GAAP. However, when GDP growth is highly volatile, the large differen…
On the Returns to Invention within Firms: Evidence from Finland
2018
International audience; In this paper we merge individual income data, firm-level data, patenting data, and IQ data in Finland over the period 1988–2012 to analyze the returns to invention for inventors and their coworkers or stakeholders within the same firm. We find that: (i) inventors collect only 8 percent of the total private return from invention; (ii) entrepreneurs get over 44 percent of the total gains; (iii) bluecollar workers get about 26 percent of the gains and the rest goes to white-collar workers. Moreover, entrepreneurs start with significant negative returns prior to the patent application, but their returns subsequently become highly positive.
A branch-and-cut algorithm for the Orienteering Arc Routing Problem
2016
[EN] In arc routing problems, customers are located on arcs, and routes of minimum cost have to be identified. In the Orienteering Arc Routing Problem (OARP),in addition to a set of regular customers that have to be serviced, a set of potential customers is available. From this latter set, customers have to be chosen on the basis of an associated profit. The objective is to find a route servicing the customers which maximize the total profit collected while satisfying a given time limit on the route.In this paper, we describe large families of facet-inducing inequalities for the OARP and present a branch-and-cut algorithm for its solution. The exact algorithm embeds a procedure which builds…
A matheuristic for the Team Orienteering Arc Routing Problem
2015
In the Team OrienteeringArc Routing Problem (TOARP) the potential customers are located on the arcs of a directed graph and are to be chosen on the basis of an associated profit. A limited fleet of vehicles is available to serve the chosen customers. Each vehicle has to satisfy a maximum route duration constraint. The goal is to maximize the profit of the served customers. We propose a matheuristic for the TOARP and test it on a set of benchmark instances for which the optimal solution or an upper bound is known. The matheuristic finds the optimal solutions on all, except one, instances of one of the four classes of tested instances (with up to 27 vertices and 296 arcs). The average error o…
Monetary circulation, the paradox of profits, and the velocity of money
2007
Recent papers have reconsidered the paradox of profits, that is the difficulty to explain how monetary profits can be generated when firms borrow only the wage bill to finance their production. In this article, we use a stock-flow consistent approach give a solution to this paradox assuming that, when firms sell goods at prices which exceed their unit costs, the realised monetary profits are not used to pay back banks. These profits then remain in the circuit, allowing additional transactions. In a sense, profits result from their own expenditure. According to this interpretation, the velocity of money is higher than one because some monetary units are used in several transactions of goods.
How does the age structure of worker flows affect firm performance?
2016
We develop a method for decomposing firm performance to impacts coming from the inflows and outflows of workers and apply it to study whether older workers are costly to firms. Our estimation equations are derived from a variant of the decomposition methods frequently used for measuring micro-level sources of industry productivity growth. By using comprehensive linked employer–employee data, we study the productivity and wage effects, and hence the profitability effects, of the hiring and separation of younger and older workers. The evidence shows that the separations of older workers are profitable to firms, especially in the manufacturing ICT-industries. To account for the correlation of …
The Role of Corporate Social Responsibility (CSR) in the New Economy
2004
The idea of corporate social responsibility has come to be accepted as one of the major components of business growth and sustainability. The success in the new economy comes with various challenges. Those challenges require business and their managers to think beyond traditional way of looking for short-term goals. It requires business and the people inside these behemoths to embrace a much broader perspective that is also inclusive of stakeholders. The nature of society we are living in has changed. The nature of governance has equally changed since people are now enjoying more freedom within each societal democratic tenet. This freedom has found its way in the business and into the facto…