The curve of external debt of non-financial companies by "borrower group" (in millions of dollars. Financial leverage also becomes one of the determinants of the company in determining the implementation of hedging policy with derivative instruments.
Data
If the logistic regression model has homoscedasticity, the correct percentage will be the same for both rows. While natural hedging and non-formal hedging strategies other than derivatives are not included in hedging decisions; the company is exposed to foreign currency transactions in its financial statements.
Analysis of Results
Model Feasibility Test
Based on the test, it is expected that H0 should not be rejected for the fit model with the data. A significant model fit test result fits the model model 1, model 2 result -2 Log Likelihood.
Table of Classification
Hyphothetical Test
It is concluded that the CFO variable has a positive and significant effect on the probability of the hedging policy. FIFA therefore has no significant effect on the likelihood of a hedging policy towards non-financial companies.
Conclusions
127 Hypothesis 4 states that financial leverage has a positive effect on hedging policy with a derivative instrument, which is rejected because the coefficient of DER in models 1 and 2 is not significant. Unpublished working paper, University of Otago, Dunedin, NZ and Victoria University of Wellington, Kelburn, NZ.
Instructor
The study aims to analyze the effect of internal factors on hedging policies through the use of derivative instruments in non-financial companies in the period setting firm size as a control variable. The result shows that volatility of liquidity and cash flows have a significant positive effect on the use of derivative instruments. Determinants of corporate hedging policies: A case of the use of foreign exchange and interest rate derivatives (2011) African Journal of Business Management, 5 (14).
Further evidence on the corporate use of derivatives in Australia: the case of foreign exchange and interest rate instruments. Managing Accounting Exposure to Currency Changes: Role and Evidence of Agency Costs (1991) Managerial Finance, 17(4), pp. 2010) Determinants of corporate hedging practices in Malaysia Malaysia. Motives for Corporate Hedging: Evidence from Britain (2005) Annals of Financial Economics, 1. 2005) Hedging Instruments and Risk Management: How to Use Derivatives to Control Financial Risk.
The use of three stock index futures in hedging decisions. 2016) International Journal of Applied Business and Economic Research, 14 (3), pp.
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The Relevance of Shopper Marketing Touchpoints: An Empirical Study on Wine Choice in Restaurants
- Introduction
- Conceptual Background
- Shopper marketing approach and shopper touchpoints
- Wine marketing touchpoints
- Research objectives
- Research Methods 1 Procedures
- Sample
- Findings
Previous research on shopping marketing has clearly focused on supermarkets, but the principles of shopping marketing can also be useful for other types of retailers and manufacturers (Gavilan et al., 2014; Ailawadi et al., 2009), such as players in the wine industry ( Pomarici et al., 2012). In fact, the analysis and understanding of consumers and buyers in the wine industry is particularly important for marketing planning (Mora, 2016), due to the peculiarities of the wine market, namely the fragmented industry and countless brands (Vrontis et al., 2011). . Wine attributes demonstrating an average importance higher than 3.5 (i.e., a threshold higher than neutral) were: wine color, wine pairing with special meal, terroir/region of origin, brand, and presence of officially certified wine.
Of these, the color of the wine and the combination of the wine with the food were clearly the most important. Touchpoint “OT1 Have experienced the wine before and liked it” was clearly the most relevant. OT2 The wine is one of the three wines to which the customer is more loyal.
Region of origin and its importance among choice factors in the wine buying decision of consumers.
Establishing the Contributing Factors to the Resurrection of PIIGS Banks Following the Crisis: A Panel Data Analysis
Literature Review and Hypothesis
- Determinants specific to each bank
- Determinants concerning the banking industry
- Macroeconomics determinants
We therefore assume the ambiguous effects of asset structure on financial soundness. According to Miguélez (2018), an overly broad banking sector can be detrimental to the financial soundness of the banking system. We then conclude that there is a negative effect between the size of the banking sector and financial soundness.
We expect a positive relationship between this measure of development and financial health in banking systems. We use it as a measure of the bank's distance to default, which is our indicator of financial soundness. To analyze the effect of asset structure on the financial system of banking systems, we use the ratio of credit to total assets.
To analyze the way in which the amount of liquidity affects the financial soundness of the banking system, we use the main refinancing operations (MRO) rate of the European Central Bank.
Methodology
The banking literature predicts heteroskedasticity in bank analysis in panel data, and heteroscedasticity is detected in our analysis. To deal with autocorrelation, we use the xtregar function which "fits cross-sectional time series regression models when the disturbance term is first-order autoregressive" (Stata Manual 13). As mentioned above, we run an OLS regression for the whole sample, and then for our three specific countries.
To test for heteroscedasticity, we perform the Breuch-Pagan test, which was detected. In addition, we also perform the Wooldridge test for autocorrelation, which indicates the presence of first-order serial correlation within each panel. Therefore, we use crude standard errors in our analysis to correct for heteroskedasticity and autocorrelation.
Finally, to improve our analysis and to deal with endogeneity and autocorrelation, we perform a system GMM estimator, keeping in mind the usual imperfections that can occur with a sample of five countries.
Results
- Analysis conduct on specific countries (Italy, Portugal and Spain) As for the entire sample, we first run two OLS regressions, the first one with bank-
- Analysis of the regression of the four countries that had benefited from assistance programmes
The evolution of the banking industry must be in line with the evolution of the economy. As in whole sample regression, the Hausman test suggests that the random effects model should be used. Across our sample, as explained in the previous section, the size of the banking industry has a negative relationship with financial stability.
We can then conclude that the size of the banking sector in Italy does not affect its health. We can say that the recovery of the Italian banking system is due to managerial factors. Unlike the analysis of the entire sample, in the case of Spain, all macroeconomic factors are significant.
These programs were important for financial stability and contributed to the revival of the banking systems of these four countries.
Summary and conclusions
In addition, in the context of very low inflation (close to zero), it is more difficult for the bank to set accurate interest rates because they would have to expect an increase in inflation at some point, which could be detrimental to them. If the country's fiscal position is weak, the government cannot guarantee the stability of the banking system in the event of a shock. Finally, our study reveals and confirms our hypothesis that financial aid programs have been beneficial in improving the stability of the banking system, which was necessary to kick-start the recovery.
Even if we see an improvement and a strengthening of the banking systems in these countries, caution is warranted. Bank managers are more cautious these days, but there is no guarantee that such behavior will continue in the long term. This is why public authorities must keep a close eye on the financial situation within a country and take necessary and timely steps to enforce banking regulations, to avoid fragility in the future.
Analysis of the financial health of the commercial banks in Romania: An approach based on the Camel framework.
Auditors Perceptions Towards the Effectiveness of the International Standard on Auditing 240 Red Flags: Evidence
Literature Review and Hypotheses Development
- Pressures/Incentives
- Opportunities
- Attitudes/Rationalizations
- Auditing Standards and Auditors’ Responsibilities for Detecting Material Fraud
- Research Population and Research Sample
- Data Collection and Measurement of Variables
They are external pressures, financial stability, managers' personal financial circumstances and achieving the financial goals (ISA 240, 2015). Suyanto (2009) showed that managers usually manipulate financial reports to meet the requirements of the contract terms. As managers' ownership of the company increases, their personal financial wealth will depend on the company's performance.
Then the managers will be more involved in committing accounting fraud to increase the value of the company's stock and increase their personal wealth. In addition, Suyanto (2009) considers the adequacy of financial reporting disclosure as a signal of the firm's ability to continue as a going concern. Price Waterhouse explained RF as potential symptoms that exist within the firm's business environment that would indicate a higher risk of intentional financial statement misstatement (Yücel, 2013).
In designing the questionnaire, which is the research instrument, a five-point Likert scale is used.
Results and Discussions 1 Reliability and Construct Validity
- Descriptive Statistics
- Correlation Analysis
- Regression Analysis
- One-Sample Wilcoxon Signed Rank Test
Auditors' perceptions of the effectiveness of the International Standard on Auditing 240 red flags: evidence from Lebanon. The field study population is LCPAs working in the accounting firms in Lebanon, which amount to about 1300 LCPAs. The sample of the field survey is 10% of the population. 130 questionnaires were distributed among LCPA working in these companies.
Section A consists of 12 questions on Incentives/Pressures to commit fraud; section B consists of 15 questions on Opportunities to commit fraud; section C consists of 14 questions on Attitudes/Rationalizations while committing fraud. The final part consists of three questions on whether ISA 240 RF for FFR can assist external auditors in detecting MM due to fraud. Any comments were used to improve the wording and flow of terms in the questionnaire.
This implies that 23.7% of the variations in fraud are explained by the independent variables of the research.
Research Limitation and Recommendation
Using the multivariate OLS model, the research findings show that there is a significant positive relationship between pressures and the occurrence of FFR in Lebanon. Malaysian internal and external auditor perceptions of the effectiveness of fraud detection red flags. Detecting and predicting financial statement fraud: the effectiveness of the fraud triangle and SAS No.
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