Asset Composition Research Articles

Análise da composição dos intangíveis nas empresas de TI e telecomunicações da B3

The objective of the study was to analyze the composition of the intangible assets of companies in the information technology and telecommunications sector listed in B3. A descriptive study was carried out, conducted by documentary analysis and quantitative data approach, which refer to the period from 2012 to 2018, of a sample composed of 15 companies. The results showed that the levels of intangible assets recorded by the companies presented significant differences during the years analyzed, with the highest value of intangible assets recorded in 2015, while 2016 recorded the lowest average level among the analyzed years. It was also observed that Linx was the company with the highest representativeness of intangible assets in relation to total assets, especially Itautec and Positive, showing fluctuations of falls and increases in its intangibles. It is also worth noting that the intangibles most evidenced by the companies were softwares, goodwill on investments, brands and patents, while non-competition agreements and concession contracts were the least evidenced. it was concluded that such companies have been gradually increasing the recording of intangible assets in their balance sheets, reflecting positively the quality of accounting information.

Business and institutional determinants of Effective Tax Rate in emerging economies

This paper studies the determinants of Effective Tax Rate (ETR) in emerging economies from a joint perspective, focusing on the BRICS (Brazil, Russia, India, China and South Africa) and MINT (Mexico, Indonesia, Nigeria and Turkey) countries. We consider both traditional business characteristics (size, leverage, asset composition and profitability) and other newer ones (firm growth, earnings management and deferred tax), as well as the specific institutional factors of each country (Statutory Tax Rate, level of development, index of economic freedom, GDP growth and institutional quality). We use a sample of 7844 listed companies taken from the Compustat data base for the period 2006–2015 and we apply panel data methodology. Our results show that both business variables and institutional factors have a significant effect on the tax burden for firms in emerging countries. We consider that these findings will be of use to firms in their investment and location decisions in these countries, and to governments when drawing up fiscal policies. In our opinion, this research amounts to an important contribution to the literature because it includes new variables, both business-related and institutional, which had not been considered together in previous studies on the determinants of ETR.

Household Financial Decision-Making and Macroeconomic Fluctuations

ABSTRACT This paper introduces household financial decision-making process into the classic financial intermediation model, which allows us to study the impact of households’ portfolio choice on the behavior of financial intermediation and the real economy. Our numerical results show that the incorporation of household financial decision helps stabilize the aggregate economy through the following channel. A negative shock of capital quality reduces the total assets of financial intermediaries and tightens their lending to enterprises. This leads to a decline in social investment and output. Then, the household responds to this by changing their asset composition, which alleviates the impact of the negative shock and thus stabilize the economy.

Macroprudential policy analysis in an estimated DSGE model with a heterogeneous banking system: An application to Chile

Abstract We quantify the effect of macroprudential policy in mitigating domestic and foreign shocks to a small open commodity based economy estimated on Chilean data. The model features a heterogeneous banking sector and includes financial frictions through collateralized borrowing and unsecured loans with the possibility of endogenous haircuts or default. The estimation shows that shocks affect large and small banks differently through the heterogeneous adjustment of both the composition of assets and the level of liabilities. This implies that countercyclical capital buffers as well as the countercyclical liquidity coverage ratios need to be introduced jointly to maintain financial stability. Countercyclical capital buffers alone cause large and small banks to adjust their balance sheet sizes in opposite directions. Only combined capital and liquidity policies raise both types of banks costs while growing their assets and thus attenuate aggregate credit fluctuations over the business cycle.

Econometrics in management decision making

Methods. The results are obtained with the following methods: systems analysis - to study specific methods for assessing intangible assets; expert methods – to regulate the elements of intangible assets; methods of mathematical statistics and fuzzy logic – to determine the relationships between the values of the elements of intangible assets and their integrated assessment; econometric modeling methods – to build an economic-mathematical model for evaluating intangible assets. Results. The approaches to structuring the composition of intangible assets are analyzed. Groups of indicators (packages) characterizing intangible assets are developed, their characteristics and calculation formulas are presented. The approach to the determination of indicators based on utility theory for individual and group assessments is substantiated. A model for assessing qualitative indicators based on the use of linguistic estimates with their subsequent fuzzy scaling is presented, based on the formation of indicator variables, the selection and analysis of which is based on expert evaluation, followed by averaging of estimates and determination of interval scales. Novelty. A model has been developed for assessing intangible assets of an enterprise, which is based on structuring packages of intangible assets, choosing valuation methods and modifying themusing fuzzy logic mechanisms to ensure the assessment of the qualitative characteristics of these packages. Practical value. The proposed approach makes a certain contribution to the development of the methodology for assessing intangible assets and contributes to its effective implementation in practice, which will make it possible to make informed management decisions aimed at ensuring an increase in the effectiveness of the organization based on the active use of intangible assets

ДИНАМІКА ФОРМУВАННЯ НАУКОВО-ПЕДАГОГІЧНОГО СКЛАДУ УМАНСЬКОГО ДЕРЖАВНОГО ПЕДАГОГІЧНОГО ІНСТИТУТУ ІМЕНІ ПАВЛА ТИЧИНИ 1930−1998 рр.

Pavlo Tychyna Uman State Pedagogical University is one of well-known pedagogical institutions of higher education in Ukraine. In 2020 the University celebrates its 90th anniversary. It was founded in 1930 as an institute of social education. Having been functioning for 90 years, the educational institution was transformed and reorganized: the institute of social education became the university of the 4th level of accreditation, the number of students (120 in 1930) increased to 10 thousand in 2020, and academic teaching staff also increased from 19 teachers to more than 500 workers. The aim of the research is to investigate the dynamics in formation and growth of qualified academic teaching staff in 1930–1998s. The article highlights the composition of intellectual assets in Uman Pedagogical Institute at various stages of its functioning from 1930 to 1998, when the Institute was reorganized into a university. The analysis of the teaching staff development in social and political environment of different periods has been shown. The reasons for the lack of experienced personnel in Uman Pedagogical Institute in 1930–1998s and its circumstances have been described. The article also presents the statistics displaying qualitative and quantitative indicators of academic staff development in the Institute.

Макроекономічний аналіз фінансування оборотних активів промислових підприємств України

Current assets play an important role in the activity of enterprise, so it is necessary to ensure that they are provided with a sufficient amount of financial resources. Research of the present status and dynamics of current assets from the position of both directions of their investment and from sources of financing is important in improving existing management mechanisms. The article is aimed at an analysis of financing the current assets of industrial enterprises of Ukraine. The general components of current assets management are provided, on the basis of which the stages of further analysis are determined. The approaches of domestic scholars to the definition of concepts of «financing» and «current assets» are explored. The composition and structure of current assets are defined and their dynamics for the period 2015–2019 are analyzed. The structure of receivables is specified and the main type of receivables prevailing in industrial enterprises is defined. Calculations of the main indicators used for the analysis of current asset financing, and comparison with recommended values along with an analysis of their dynamics are performed. The importance of current capital for the successful functioning of enterprises and maintaining financial stability is substantiated. The aggregate balance of industrial enterprises for 2015–2019 is formed in order to assess the resources of financing the assets and changes in its structure are analyzed in dynamics. The structure of financing resources invested in current assets of industrial enterprises of Ukraine is calculated and analyzed. On the basis of the carried out research, the main problems of financing the current assets of industrial enterprises of Ukraine are allocated and measures to solve them are proposed. As a result, the importance of current assets in production and the need to choose appropriate resources for their financing are substantiated.

АРКТИЧЕСКИЕ АКТИВЫ — К СИНЕРГИИ ТРАДИЦИОННЫХ ПРАКТИК И СОВРЕМЕННЫХ ТЕХНОЛОГИЙ (НА ПРИМЕРЕ СПГ)

The article covers the problems of determining and transforming the composition of assets that ensure the achievement of targeted economic and socially useful goals for the development of the Arctic zone of the Russian Federation. The authors justify the point of view, based on the necessary move away from using economies of scale in its pure form. This shift has two directions. The first one is towards the formation of the assets, combining the features and characteristics of the best up-to-date high-tech solutions. The second one takes into account the ‘transformity’, inherent in the traditional economic activities of the peoples of the North and the Arctic region.

How Recessions Have Affected Household Net Worth, 1990-2017: Uneven Experiences by Wealth Quantile

The asset composition of wealth can explain the uneven impact of recessions on household net worth.

The currency composition of international portfolio assets

In this paper, we empirically assess the importance of gravity-type variables and measures of macroeconomic and financial volatilities in explaining portfolio holdings denominated across the main global currencies: US dollar (USD), euro (EUR), Pound sterling (GBP), Japanese yen (JPY) and Swiss franc (CHF). Our findings underscore the importance of trade ties and membership of the euro area. We also find that international positions co-move with the level of macroeconomic and financial uncertainty. Importantly, we identify heterogeneous patterns at a currency level.

How Quantitative Easing Works: Evidence on the Refinancing Channel

AbstractWe document the transmission of large-scale asset purchases by the Federal Reserve to the real economy using rich borrower-linked mortgage-market data and an identification strategy based on mortgage market segmentation. We find that central bank QE1 MBS purchases substantially increased refinancing activity, reduced interest payments for refinancing households, led to a boom in equity extraction, and increased aggregate consumption. Relative to QE-ineligible jumbo mortgages, QE-eligible conforming mortgage interest rates fell by an additional 40 bp and refinancing volumes increased by an additional 56% during QE1. We estimate that households refinancing during QE1 increased their durable consumption by 12%. Our results highlight that the transmission of unconventional monetary policy to the real economy depends crucially on the composition of assets purchased and the degree of segmentation in the market.

Risk sharing, efficiency of capital allocation, and the connection between banks and the real economy

We propose a measure of the extent to which a financial institution is connected to the real economy. The Share of Core Assets (SCA) is a measure of the composition of assets – namely, the share of credit to the non-financial sectors (households, firms, and governments) out of total credit market instruments. We construct the SCA for more than 3700 U.S. bank holding companies. An asset weighted average of the SCA declines by 20 percentage points in the period 1995:1 to 2012:4 (from 76% to 56%); it then increases by about 10 percentage points in the period 2013:1 to 2016:4. We explore the extent to which risk-sharing among banks and efficiency of capital allocation can explain the cross-sectional dispersion of our measure, and we find that these two motives account for between 6% and 10% of the cross-sectional variation of the SCA, depending on the sample used. Finally, using a vector autoregression model (VAR), we find that an increase in the average connection between banks and the real economy increases the growth rate of the GDP.

Working Capital Management in Co-Operative Milk Producers Union Ltd”- Pondicherry

Working capital management in The Pondicherry refers to the administration of all aspects of current Assets and current liabilities. Generally the main components of current Assets are inventories, sundry debtors, cash and bank balances and other liquid Assets like short term/temporary investments. Similarly Current liability comprises of bank borrowings, trade creditors, bills payable, and other account payables with in a short period in a year. The corporate finance department’s managers evaluate and determine the levels and composition of current Assets and current liabilities. Evaluation of right sources, right timing and utilization of funds in respect of current Assets and current liabilities perpetually is the theme of working capital management. Here an attempt has been made to analyses the efficiency and efficacy in managing working capital and its component management namely

Strategic Asset Allocation in Japan: An Empirical Evaluation

This research seeks to provide a comprehensive picture of lifetime asset allocation in Japan. We evaluate patterns in the level and composition of assets by household type, taking account of home ownership and household claims on social security as well as financial assets and pensions. The analysis relies on a micro-data taken from the RADAR survey fielded by Nikkei, for the year 2000. The RADAR data are the only publicly available dataset to record financial asset holdings in any detail, with which we calculate housing equity as well as other forms of wealth. We supplement this with external information on pension and social security entitlements. The resulting picture attests to the importance of housing and social security in the portfolios of households approaching retirement. As well, we compare asset allocation patterns between those who are worse vs. better off, better vs. worse educated, married couples vs others, and dualearner vs. single earner couples. Our econometric analysis of asset allocation choice reinforces priors regarding Japanese lifecycle asset allocation patterns: households do invest conservatively, other than their family home; they are risk-averse in their allocation of financial assets; and they appear to over-invest in housing and life insurance, two assets which enjoy preferential bequest tax treatment. We argue that institutional, historical, and policy influences explain much of observed Japanese preferences for safe financial assets, and we offer suggestions for mechanisms that could increase household diversification.

Capital, Contagion, and Financial Crises: What Stops a Run from Spreading?

After the 2008 financial crisis, policymakers focused on enacting improvements in two areas of financial regulation: capital and liquidity, affecting the composition of bank assets and the sources of bank funding. These improvements made both the emergence of a crisis less likely and the recovery from one more rapid. This article suggests, however, that post-crisis reforms did not address a distinct and critical third task: how to limit the damage — to other firms, and to the financial system — once a panic begins. Using data on share prices and credit default swaps, we show that — at their low pre-crisis levels — the balance-sheet liquidity and regulatory capital of a banking institution did not predict the impact of the September 15, 2008 run on Lehman Brothers on that institution. On the contrary, in some markets, banks with greater balance-sheet liquidity and regulatory capital were more exposed — not less — to the resulting panic, and the higher their levels of regulatory capital, the more they relied on debt for funding. By contrast, we show that simple share-price correlation was a powerful predictor of run exposure, and that market valuations of large banks are more highly correlated today than they were in September 2008. This increase in correlation implies a convergence in the banks’ business models, which could offer a ready conduit for an unexpected shock to metastasize into a contagious run. The views expressed in this article are the authors’ alone and do not necessarily reflect the views of the Federal Reserve Board or the United States government.

ФИНАНСОВЫЕ РИСКИ БАНКА НА ФОНДОВОМ РЫНКЕ

The article describes the role of commercial banks as professional participants of the stock market and presents an analysis of the activities of PJSC "SBERBANK" in securities market. As part of the analysis, the composition and structure of the Bank's assets were considered, the risks of the investment strategy were determined; the Bank's investments in financial instruments were evaluated, grouped by portfolios and by types of securities. Based on the study, priority directions of the investment strategy of PJSC "SBERBANK" on the stock market is determined.

Determinant of acquisition of financial institution

This study is aimed to investigate the determinants of finance companies’ acquisition. During the last 15 years, there were more than 30 mergers and acquisition deals happened in the finance company industry. We have analyzed six micro financial ratios which are productivity ratio, profitability ratio, equity capitalization, leverage ratio, asset composition ratio, and firm size. The dependent variables are dummy variables of acquisition. The financial ratios are OER (operating efficiency ratio), ROE (return on equity), leverage, asset allocation ratio, equity size and firm size. The samples are the 90 finance companies who issued financial report from 2001-2015. Data were analyzed using panel data regression. The results of the study found that only company size had a significant effect on finance companies acquisition

The 2014–15 Financial Crisis in Russia and the Foundations of Weak Monetary Power Autonomy in the International Political Economy

ABSTRACTThis article contributes to international political economy debates about the monetary power autonomy (MPA) of emerging market and developing countries (EMDs). The 2014–15 Russian financial crisis is used as a case study to explore why an accumulation of large international reserves does not provide protection against currency crises and macroeconomic adjustments in EMDs. The analysis centres on the interplay between two dimensions of MPA: the Power to Delay and the Power to Deflect adjustment costs. Two structural factors condition Russia’s low MPA. First, the country’s subordinated integration in global financial markets increases its financial vulnerability. The composition of external assets and liabilities, combined with cross-border capital flows, restrict the use of international reserves to delay currency crises. Second, the choice of a particular macroeconomic policy regime embraced the financialisation of the – mainly state-owned – Russian banking sector, thus making it difficult to transform liquidity inflows into credits for enterprises. Russia’s main comparative advantage, hydrocarbon export revenues, is not exploited. The type of economy created due to the post-Communist transition means that provided ‘excessive’ liquidity remains in the financial system and is channelled into currency arbitrage. This factor increases exchange rate vulnerability and undermines Russia’s MPA.

Generating Virtual Scenarios of Multivariate Financial Data for Quantitative Trading Applications

In this article, the authors present a novel approach to the generation of virtual scenarios of multivariate financial data of arbitrary length and composition of assets. With this approach, decades of realistic time-synchronized data can be simulated for a large number of assets, producing diverse scenarios to test and improve quantitative investment strategies. The authors’ approach is based on the analysis and synthesis of the time-dependent individual and joint characteristics of real financial time series, using stochastic sequences of market trends to draw multivariate returns from time-dependent probability functions that preserve both distributional properties of asset returns and time-dependent correlation among time series. Moreover, new time-synchronized assets can be arbitrarily generated through a principal component analysis-based procedure to obtain any number of assets in the final virtual scenario. The validation of such a simulation is tested with an extensive set of measurements and shows a significant degree of agreement with the reference performance of real financial series-better than that obtained with other classical and state-of-the-art approaches.

The Nexus of Asset Composition with Accounting and Market Performance of Firms in Nigeria

This ex-post facto design study examined the link between asset composition and accounting and market performance of insurance, banking and manufacturing firms quoted on Nigeria Stock Exchange using cross sectional secondary data from 2013 to 2017. The asset structure decomposed into plant property and equipment, long term investment, intangible asset and current assets were regressed against accounting measures of return on asset and return on equity on the one hand and market measures of price earnings ratio, earnings yield, Tobin’s Q and market valuation on the other hand. Property plant and equipment, long term investments, intangible asset and current assets all returned a positive and statistically significant relationship with return on assets. Similar result were equally returned by the assets components in relation to return on equity except property, plant and equipment and long-term investment that posted negative and statistically significant result. The result further indicate a positive but not statistically significant relationship of current assets with price earnings ratio contrary to the negative but statistically significant relationship of property, plant and equipment with the same performance measure. Also, long term investment and intangible assets both have a positive and statistically significant relationship with price earnings ratio. The result also indicate that long term investment and current assets have a positive and statistically significant relationship with earnings yield. Conversely, property plant and equipment and intangible asset posted a negative and statistically significant relationship with earnings yield. Intangibles and current asset have a positive and statistically significant relationship with market valuation while on the other hand increases in property, plant and equipment and long term investment reduces market valuation and Tobin’s Q in view of their negative but statistically significant relationship. The macroeconomic control variables of inflation and GDP and the microeconomic control variables of leverage and liquidity effectively performed their moderating roles between the dependent and the independent variables by differentially returning both positive and negative relationships. We recommend that IPO firms should invest less in PPE and Long-Term Assets to avoid negative investors pricing while at the same time increasing investment in current assets and developing intangibles. Also, firms with high asset base should increase leverage to enjoy tax advantage. We also recommend that firms with low asset base should avoid increased borrowing to mitigate risk of bankruptcy Keywords: Earnings Yield, Price Earnings Ratio, Tobin’s Q, Return on Assets, Return on Equity, Gross Domestic Product, Inflation, Leverage DOI : 10.7176/JESD/10-22-01 Publication date: November 30 th 2019