Financial Balance Sheets Research Articles

Dealer financial conditions and lender-of-last-resort facilities

We examine the financial conditions of dealers that participated in two of the Federal Reserve's lender-of-last-resort (LOLR) facilities—the Term Securities Lending Facility (TSLF) and the Primary Dealer Credit Facility (PDCF)—that provided liquidity against a range of assets during 2008–2009. Dealers with lower equity returns and greater leverage prior to borrowing from the facilities were more likely to participate in the programs, borrow more, and, in the case of the TSLF, at higher bidding rates. Dealers with less liquid collateral on their balance sheets before the facilities were introduced also tended to borrow more. The results suggest that both financial performance and balance sheet liquidity play a role in LOLR utilization.

The Effect of Intermediary Risk Appetite and the Macro Risk Premium: The Great Depression

The consensus among economists is that both monetary and nonmonetary factors played a role in the Great Depression. There is relatively little consensus, however, regarding the specific transmission mechanism through which monetary factors created prolonged non-neutralities. Recent research on the Great Recession sheds light on a new subset of monetary transmission mechanisms that works through constraints on credit supply, rather than the traditional money supply or credit demand. Following the methodology of Adrian, Moench, and Shin (2010a), I document a relationship between changes in financial intermediary balance sheets, i.e. intermediary “risk appetite,” macro risk premia, and real economic activity during the era encompassing the Great Depression (1919-1941). These results suggest that supply-side credit constraints were, in fact, present during the Great Depression, and therefore represent a new explanation for the prolonged non-neutrality of monetary factors.

The prediction of stock returns with regression approaches and feature extraction

Value investing is one of the most popular investment strategy for investors to search for the undervalued stocks based on their financial reports and balance sheets. However, the numerous metrics derived from the financial statements are not easy for the investor to analyze and determine the financial health of a company. The main purpose of this study is to employ feature extraction to identify a smaller number of financial ratios for the prediction of stock return which reflects the quality of a company. Two regression approaches, including Multilayer Perceptron model and Meta Regression by discretization model, were incorporated with feature extraction to evaluate the forecast performance for two different industries in Taiwan. The results demonstrated that the prediction errors were improved for both models by the feature extraction strategy which reducing the original 16 variables into 5 variables. Besides that, both models achieved better prediction result in concrete industry rather than rubber industry. Finally, this paper concluded that the overall performance of the Multilayer Perceptron model is better than the other model.

Podnikový sektor - vybrané aspekty empirické analýzy zemí Evropské unie

Corporate Sector-Selected Aspects of Empirical Analysis of the EU Member States The paper attempts to shed light on selected problems of mainly non-fi nancial corporations of EU Member States in the period 1995-2013 (2014) using financial balance sheets (SNA, 2008). The relations between domestic sectors and non-residents have revealed that the Member States have been mainly debtors during the examined period. Having measured leverage (ratio of debt to GDP created in the sector of non-financial corporations) we have found out the increase of the ratio in the crisis period (2008-2013) in the sample of 17 member states. As concerns the ratio of debt to shares we have stressed the heterogeneity in the sample of 8 eurozone countries. The heterogeneity has been discovered also examining the role of trade credit as an alternative source of financing in the random effects model (panel analysis).

The Transposition of the Balance Sheet to Financial and Functional Balance Sheet. Research and Development

As the title suggests, through this paper we want to highlight the necessity of treating again the content and the form of the balance sheet in order to adapt it to a more efficient analysis, this way surpassing the informational valences of the classic balance sheet.The functional and the financial balance sheet will be taken into account. These models of balance sheet permit the complex analyses regarding the solvability or the bankruptcy risk of an enterprise to take place, and also other analyses, like the analysis of the structure and the financial/ functional equilibrium, the analysis of the company on operating cycles and their role in the functioning of the company. Through the particularities offered by each of these two models of balance sheet, we want to present the advantages of a superior informing. This content of this material is based on a vast investigation of the specialized literature.

The Financial Wealth of Corporations: A First Look at Sectoral Balance Sheet Data

This paper analyzes the nonfinancial corporation (NFC) sector’s financial balance sheets using data available from the OECD. In our sample of 20 advanced economies, corporate debt in percent of GDP—a frequently used indicator in the context of corporate balance sheet adjustments—has remained high since the global financial crisis, with significant differences in the level and the trend between the high-debt and low-debt groups. Looking at financial balance sheets more broadly, including net financial wealth, the NFC sector’s balance sheet conditions have improved recently, particularly reflecting accumulation of corporate cash and valuation gains on financial assets. Longer time series and more granular data for Japan, which has been experiencing a prolonged period of balance sheet adjustments, indicate that a continued strengthening of balance sheets might occur even after debt levels are reduced.

The Financial Wealth of Corporations: A First Look at Sectoral Balance Sheet Data

This paper analyzes the nonfinancial corporation (NFC) sector's financial balance sheets using data available from the OECD. In our sample of 20 advanced economies, corporate debt in percent of GDP-a frequently used indicator in the context of corporate balance sheet adjustments-has remained high since the global financial crisis, with significant differences in the level and the trend between the high-debt and low-debt groups. Looking at financial balance sheets more broadly, including net financial wealth, the NFC sector's balance sheet conditions have improved recently, particularly reflecting accumulation of corporate cash and valuation gains on financial assets. Longer time series and more granular data for Japan, which has been experiencing a prolonged period of balance sheet adjustments, indicate that a continued strengthening of balance sheets might occur even after debt levels are reduced.

The transposition of the balance sheet to financial and functional balance sheet. Research and development

As the title suggests, through this paper we want to highlight the necessity of treating again the content and the form of the balance sheet in order to adapt it to a more efficient analysis, this way surpassing the informational valences of the classic balance sheet.The functional and the financial balance sheet will be taken into account. These models of balance sheet permit the complex analyses regarding the solvability or the bankruptcy risk of an enterprise to take place, and also other analyses, like the analysis of the structure and the financial/ functional equilibrium, the analysis of the company on operating cycles and their role in the functioning of the company. Through the particularities offered by each of these two models of balance sheet, we want to present the advantages of a superior informing. This content of this material is based on a vast investigation of the specialized literature.

Islamic Banking - Value Added Intellectual Coeficient (IB-VAIC) as an Intellectual Capital Proxy Indonesian Islamic Banking

The main idea of this research is to make the concept of intellectual capital as the most valuable intangible assets for the company. Basically, tangible assets which is owned by the company is also controlled by humans. This study offers Islamic Banking-Value Added Intellectual Coefficient (IB-VAICTM) modified the model pulic by Ulum (2013) as a performance measurement of intellectual capital of Islamic banking in Indonesia. This study also makes Islamic banks rank in term of Best Performance Index (BPI) which is measured using IB-VAIC™. The data used are annual reports, particularly financial performance and balance sheet, obtained either through the official website of each bank as well as from BI website. This study finds that during the study period (2010-2014), the overall performance of Islamic banking in Indonesia in the category of "good performers" with a score of VAIC 2.57. The results also indicates that individual banks that including into the category of "top performers" are three (3) banks, "good performers" 4 (four) Bank and "common performers" 4 (four) Bank. The limitations of this study is that the data used only 11 (eleven) Commercial Bank (BUS) in Indonesia, while the overall number of banks per January 2015 was 197.

GESTÃO FINANCEIRA DE UMA COOPERATIVA AGROINDUSTRIAL: PRÁTICAS DE GERENCIAMENTO E ANÁLISE FINANCEIRA

The financial statements are meant to help managers and users of accounting information in the decisionmaking process. The cooperative has taken more prominence in the financial system. This article aims to analyze and demonstrate the economic and financial performance of an Agroindustrial Cooperative of Santa Catarina in the city of Chapeco. The analysis was based on the financial statements, balance sheet and statement of leftovers or cooperative losses, between the years 2012 and 2014. To achieve the goal and an exploratory qualitative research was carried out in the statements of the studied cooperative. Knowing this, it is suggested that aspects of monitoring, control, evaluation and improvement of the results are of great importance, because many cooperatives do not provide adequate care, which must be controlled in real time with strategic planning.

Central Banking After the Crisis: No Return to Past Certainties

Before the 2008 crisis, macroeconomic theory and central bank practice regarded low and stable inflation to be a policy objective that was sufficient to ensure macroeconomic and financial stability. There was little concern with the details of the financial system or balance sheet aggregates. This article makes the case that these details are important and that monetary and macroprudential policy must control both the quantity and allocation of credit. This entails a revision of conventional monetary theory as well as policy, particularly to explain the paradox of the precrisis situation of so much credit and so little inflation. The particular role of real estate investment is described as a source of financial instability that can only be addressed by nuanced monetary and macroprudential policy.

EMPLOYING BALANCE SHEET APPROACH AND EXPLORATORY FACTOR ANALYSIS TO EXAMINE THE FINANCIAL INSTABILITY OF VIETNAM

This paper examines the financial instability of Vietnam using the balance sheet approach and exploratory factor analysis. We found that the deterioration in financial and non-financial sector balance sheets as well as fiscal deficit resulted in financial instability of Vietnam, thereby offering some suggestions to stabilize the Vietnamese financial system.

ACCOUNTING AND REGULATORY CHANGES IN BRAZILIAN CORPORATE LAW: AN INVESTIGATION OF THE IMPLICATIONS FOR THE REVISION OF THE TARIFF OF THE SANITATION SECTOR IN PERNAMBUCO

The research aimed to highlight the implications of reconciling accounting information for regulation with the information for the corporate the process of rates revision of the sanitation sector in Pernambuco. The data collected for this study were obtained in the Financial Statements, Notes, Balance Sheets, Reports and Technical Notes of tariff revision, relating to the period of 2009/2010. Interviews were conducted and surveys were applied on the Regulatory Agency of Pernambuco and on The Company of Sanitation of Pernambuco in order to clarify the details about the accounting and regulatory process to determine and validate the selection of abnormal test results and the results obtained. These data were processed in spreadsheets, prepared with the intention of reconciling the financial statements for regulatory purposes with the information for corporate purposes. It was observed that the existing regulatory norms for the case studied did not fit to update the Brazilian corporate law, the present amendments to Law 6.404/76, the Pronouncements, Interpretations and Technical Guidance Statements. Thus, it not necessarily represent a barrier to corporate changes, lack of regulation or unsuitability or asymmetry could bring little clarity to the financial statements for regulatory purposes, and possible impacts on the values established for the review of the tariffs charged to society.

Cost Effective Metrics through HRA

In an organisation, human resource is the most important resource for organisation development. These resources (HR) are directing and controlling the other resource (Machine and material) for production and organisation profitability. Even though the human resource is very much important to an organisation, but still it is not recognising as an asset factor in the financial balance sheet (financial Statement). This is due to because; there is no proper measurement model for the cost and value of human resource in HRA under many organisations. The Human Resource Accounting will help the organisation for the better future development like, acquisition, expansion, diversification of the organisation. This research is mainly a conceptual paper, which deals with the theoretical aspects of Human Resource Accounting, its measurement on HRA in the organisation and it explains about the influence of HRA in organisation decision making. DOI: 10.5901/mjss.2015.v6n3p251

STUDI PENERAPAN PSAK 45 YAYASAN PANTI ASUHAN YABAPPENATIM JEMBER

Yayasan Panti Asuhan Yabbapenatim in managing funds from donors, and distribution process more inclined to charity to help education, health assistance, and support working capital. In the case of this disclosure orphanage foundation has not made a note to the financial statements and for the presentation of its financial statements Yayasan Panti Asuhan Yabbapenatim make two simple financial statement balance sheet and statement of sources and utilization of funds. Yayasan Panti Asuhan Yabbapenatim has met the statutory regulations charity to make the financial statements. However, the components of financial statements that are made not complete and not fulfill the components of financial statements in accordance with IAS 45, because of limited funds and human resources are managed. The financial statements have not been audited by an independent auditor or by a public accounting firm. Because if the audited it will provide added value for Transparency and accountability to the financial statements he made that will increase public confidence in the Yayasan Panti Asuhan Yabbapenatim to manage,distribute and use it. Key words: Accounting Foundation, IAS 45, Financial Reporting.

Islamic Banking in Oman Today & The Way Forward

In the first section, the paper describes the overall economic scene and its growth dynamics. The following section, presents an illustration to define the structure of Omani Banking Industry with a thorough segment wise breakup of asset and liabilities, advance to deposit ratio, leverage, capital adequacy, spreads and efficiencies. In its effort to relate the expectations and realities, a cross-section interpretive analysis of the future projections by Moody’s, Ernst & Young and Arqaam Capital is carried out, to develop their grounding in the present facts. In a later section titled ‘The Sixty-Forty Strategy’, an insightful discussion on strategic implications and recommendation, based on the circuitous and interdependent relationship of deposit and asset mix, Capital Adequacy and the overall efficiency of a bank is also presented. The benchmarks of the existing conventional banking industry, would enable Islamic Banks to sway their strategic goals, while they follow their respective organic growth. As an indicative yardstick, it can serve as an overarching frame to avoid any major deviations in shape costly deposit mix or lower-than-the-optimum credit portfolio. The value of the paper is driven by the comprehensive and exhaustive presentation of Financial information, product analysis, profit rates, balance sheet and revenue structures, followed by intuitive analysis to elaborate the strategic and operational dimension of all the eight IBI’s operating in Oman. A detailed ‘compare and contrast’ commentary, on the deposit and financing side products being offered, their underlying shariah contracts is being presented. In all its rigor, the paper not only explores the progress of overall Islamic Banking industry, but also highlights the performance and distinctive features of Individual IBI. “Islamic Banking Regulatory Framework” (IBRF) issued by the Central Bank, is maintained as a pivotal reference through out the paper, to examine the operations and offerings of the IBIs and underscore the key driver of performance, innovations and probable limitations. In the conclusive section of “Strategic Dimensions”, the paper seeks to outline strategic insights (and perhaps future directions) based on competitive positioning, success drivers, product innovations, operational limitations for the manager of Omani IBIs. In its intuitive pursuit, the study also portends practical intricacies in Shariah Compliance, Deposit Pool Management and asset liability management, that IBIs in Oman would come across. The strategic dimensions presented are backed by cases, constructs, propositions and artifacts driven from domestic banking industry or Islamic Banking experience in other jurisdiction. The paper in its pragmatic approach, quotes and elaborate the anomalous growth and the daring business model of Meethaq, the principled stance of the regulator, the product innovation of Maisarah, the opportunity in the SME segment, Shariah Compliant structures to exploit trade intensive and specially non-oil trade in Oman’s economy. Shortly, the reader would surely find this paper useful in developing a perspective of Islamic Banking Industry in its independent capacity, as well as a subset of the broader Financial Intermediation scene in Oman.

Financial Balance – An Important Objective for the Stakeholders in Romania's Energy Sector

Abstract The annual financial statements represent the main point of view through which the stakeholders assess an entity's financial position. An important aspect followed by the stakeholders is the existence of a solid financial position, which is manifested through a financial balance. The present study seeks to analyze the financial position of the Romanian entities that are representative to the energy sector, based on specific indicators of appreciating the financial balance. Within the analysis, indicators such as net situation, working capital, the need of working capital, net treasury and many others were taken into account. Also, within the study we tried to highlight the main differences between the analysis of the financial balance based on the regular balance sheet and its analysis based on the financial balance sheet. Thereby, one of the main objectives of this study is to present the main advantages that the financial balance sheet brings to the analysis of the financial balance and raising the awareness of the stakeholders towards this approach. The results of the study have shown significant differences between the analyzes made on different types of balance sheets. These results could open new research directions, such as more detailed analyzes based on the financial balance sheet, but could also raise the awareness of the stakeholders (except the governments) about the fact that the balance sheet, in its present form (form which is imposed by the law), has some boundaries, and for a meaningful analysis of the financial position (financial balance) it is often necessary to resort to derivative forms of the balance sheet.

Uncertainty and Investment: The Financial Intermediary Balance Sheet Channel

Rollover risk imposes market discipline on banks’ risk-taking behavior but it can be socially costly. I present a two-sided model in which a bank simultaneously lends to a firm and borrows from the short-term funding market. When the bank is capital constrained, uncertainty in asset quality and rollover risk create a negative externality that spills over to the real economy by ex ante credit contraction. Macroprudential and monetary policies can be used to reduce the social cost of market discipline and improve efficiency.

Uncertainty and Investment: The Financial Intermediary Balance Sheet Channel

Rollover risk imposes market discipline on banks’ risk-taking behavior but it can be socially costly. I present a two-sided model in which a bank simultaneously lends to a firm and borrows from the short-term funding market. When the bank is capital constrained, uncertainty in asset quality and rollover risk create a negative externality that spills over to the real economy by ex ante credit contraction. Macroprudential and monetary policies can be used to reduce the social cost of market discipline and improve efficiency.

ANALISA KINERJA KEUANGAN PADA PERUSAHAAN METAL AND ALLIED PRODUCT YANG TERDAFTAR DI BURSA EFEK INDONESIA

The financial performance of companies known by analysing financial statements, the analysis conducted is the Current Ratio, Liquidity Ratio, Ratio of Current Assets Cash and Cash Ratio of Current Debt, Solvency Ratio of Total Debt for Equity and Debt Ratio of Assets, Ratio of Total Activity Assets Turnonver Ratio and Inventory Turnover Ratio, Profitability Ratio of Profit Margin Ratio and Return On Investment Ratio. This study used secondary data contained in the Indonesia Stock Exchange in the form of financial statement balance sheet and profit and loss of all three Metal and Allied Products Company for five years from 2005-2009. By using ratios – financial ratios above then the results is to provide ratings (ranking) on each – each company include: PT. Betonjaya Manunggal Tbk., rank (rank), the first based on the financial performance ratios liquidity ratios, solvency, activity, and profitability. PT. Lion Metal Works Tbk., rank (rank), second because one ratio is the ratio of the activity on the total asset turnover underperforming because fewer than than 1 times the velocity. PT, Jaya Pari Steel Tbk., rank (rank) third because in addition to the activity ratio, second ratio is the ratio of fluctuating liquidity and profitability ratios is not good.