High-quality Assets Research Articles

USING CAMEL MODEL ANALYSIS OF BANKS FINANCIAL PERFORMANCE IN INDIA BY -WITH SPECIAL REFERENCE TO KOTAK MAHINDRA BANK- AN EMPIRICAL EVIDENCE

These days, having an account with the top bank in India is a need for everyone with money. People are also less likely to be without a bank account now that the government of India has implemented the Pradhan Mantri Jan Dhan Yojna, a programme to increase access to banking services. But are you familiar with the largest banks in India, or with public sector banks in particular? If not, then you are in for a treat because we are about to spill the beans on some of India finest banks, including the top 10 public and private institutions in the country, along with comprehensive information on the financial products they provide.Businesses in todays cutthroat global economy need to present themselves as models of social responsibility if they want to succeed. Companies actively seek expansion via globalisation, and they get a competitive edge by participating in socially good programmes. Government laws, environmental limits, labour exploitation difficulties, and other problems may cost multinational corporations millions of dollars if they do not actively participate in social issues in each country in which they operate. If you want to know how well banks and other financial institutions are doing and what steps they can take to improve, you should look into using the CAMEL model. This research looked at the total assets of 10 different banks in India, 5 of which were public and 5 of which were private. The five-year span from 2017 to 2022 is included in this research. The current research looks at how well the chosen banks have done financially. The CAMEL framework ranks financial institutions according to five criteria: factors such as sufficient money, high-quality assets, effective management, profitability potential, and liquidity. Kotak Mahindra outperformed all other banks and came out on top, while Punjab National Bank came in last, according to the survey. All things considered, private banks have done better than their public sector counterparts. This Paper is Identifying of ICICI Bank Performance using CAMEL Model.

Factors Influencing the Effectiveness of the Tendering Process in the Public Sector: A Case of The Iringa Municipal Council

Public procurement operates within a stringent legal framework that must align with the broader goals of the Government. While procuring entities may have internal objectives, such as cost-effectiveness and timely service delivery, they must also serve the interests of the general public, who bear the tax burden. The study aimed to assess factors influencing the effectiveness of the tendering process in Iringa Municipal Council through financial resources, physical assets, and employee competence. A quantitative approach and cross-sectional design were used, whereby Transaction Cost Economics and Resource-Based View theories were adopted. Sixty-five employees were involved in this study. Descriptive statistics was used in data analysis. The findings showed that effective financial resource management plays a crucial role in influencing the effectiveness of the tendering process. The Iringa Municipal Council demonstrated effective tendering with its abundant financial assets, sufficient working capital, and strong financial position. Physical assets, such as well-maintained facilities and high-quality assets, positively influenced the effectiveness of the tendering process in The Iringa Municipal Council. Employee competence, commitment, education level, and experience significantly affected the effectiveness of the tendering process at The Iringa Municipal Council. The study concluded that financial resources are essential for an effective tendering process. Their efficient allocation and management are critical to success. Adequate physical assets and their maintenance are crucial for a streamlined tendering process. The study recommended that the Government should establish clear policies to ensure the effectiveness of the tendering process in public sectors. The Iringa Municipal Council should provide robust support and training to employees involved in the tendering process to enhance its efficiency. Further studies should explore additional factors contributing to ineffective tendering processes, such as the provision of substandard goods and services, missed deadlines, and punctuality issues in public sectors, to gain deeper insights into their causes and potential solutions

Research on Chain Store Operations and Financing Problems of the Self-service KTV in China

At present, the development of various industries is characterized by branding. Through standardized management, they can develop rapidly in cities, regions, and even countries, occupying a huge share of the local market. For example, Chayanyuese, a tea brand in Changsha, China, has won the favor of consumers with its fresh and classic brand image, Chinese-styled concept of brand culture, and high-quality service. Examples of success due to standardized management also include Luckin Coffee, Haidilao Hot pot, and other brands in China. Therefore, in this context, the future development and business model of KTV should also be changed accordingly to cope with the KTV market in the post-epidemic era. Based on the literature review, this paper studies the chain store operations and financing problems of the self-service KTV in China from the perspective of supply chain finance. The results show that the operation of the self-service KTV in China faces many problems, among which the lack of a large amount of funds is the main problem. To solve this problem, supply chain financing, which makes a continuous acquisition of high-quality assets and has a low financing risk, can be an appropriate financing method.

GESTÃO DOS PRAZOS DA DÍVIDA CORPORATIVA: UM OLHAR PARA AS EMPRESAS DE CAPITAL ABERTO NO BRASIL

ABSTRACT This study investigates the maturity structure of listed non-financial Brazilian companies from 2010 to 2019 and reveals that these companies do not spread their debt maturities upon renewal, unlike the results observed by Choi et al. (2018) for US firms. Even after the rollover shock in 2015 where the Brazilian sovereign debt’s investment were downgraded, these firms did not increase the maturity spread of their debt. In addition, the research evaluated corporate debt management by utilizing Brazil’s downgrade as a “quasi-natural experiment” in the exogenous shock model. The results indicate that Brazilian companies may face considerable debt rollover risks due to the concentration of maturities in specific maturity ranges during future credit shocks. Proper control of financing structures is crucial to ensure that companies remain resilient and do not have to turn down profitable investments or high-quality assets during financial crises. This research has significant implications for corporate practice and the associated risks of financing profitable projects, particularly in countries with less efficient capital markets.

Correlation uncertainty, limited participation, and flight to quality

This study extends the multi-asset model of Huang et al. (2017), who examine only two types of investors, by adding a new investor type with partial information on the correlation coefficient and re-explores the limited participation phenomenon under correlation ambiguity. We investigate whether asset allocations depend on incomplete information under market equilibrium—specifically, whether investors with less information might hold greater equilibrium positions than investors with more information. We find that, as the true correlation coefficient (and the maximum correlation coefficient for ambiguity-averse investors) increases and asset quality increases, investors with less information escape from low- to high-quality assets, thus exhibiting a flight-to-quality trading pattern in equilibrium.

Optimal taxation in asset markets with adverse selection

Constrained efficiency is characterized in an asset market, subject to search frictions, where sellers are privately informed about the type of their asset. The type determines the opportunity cost of the asset for sellers and the quality of the asset for buyers. The constrained-efficient allocation is implemented using a sales tax schedule. The optimal schedule has a single-crossing property, requiring the trading of low-quality assets to be subsidized and trading of high-quality assets to be taxed. Surprisingly, the optimal schedule could be non-monotonic in the quality or price of assets even when buyers and sellers agree on the ranking of assets. This result implies that using a linear tax schedule, as typically assumed in the literature, could significantly limit the benefits of taxation. The role of traditional search frictions, and the effects of higher measure of distressed sellers, higher quality of assets and more efficient matching technology on the optimal schedule are also studied.

Thoughts on the Bulk Supply Chain Services of Xiamen Xiangyu Co., Ltd

Under the influence of globalization, the supply chain (SCM) has expanded into a globally integrated supply chain across regions and borders. With the increasing volume of China’s commodity trade year by year, China has become the largest global commodity consumption and import for many consecutive years. On August 29, 2011, Fujian Xiamen Xiangyu Co., Ltd. held a grand restructuring and listing ceremony in the Shanghai Stock Exchange, integrating the high-quality asset injection of its logistics and related industries. In recent years, Xiamen Xiangyu Group Co., Ltd. has been committed to supply chain management services, and entered the Fortune Global 500 list in 2018. Taking Xiamen Xiangyu Group Co., Ltd. as an example, this paper uses financial analysis and QR (quick response) methods to analyze the company’s main business-global commodity supply chain services. The regression analysis is used to predict the development of the Xiangyu Group case in the next three years and the results show that the bulk commodity supply chain chosen by Xiangyu, as its main business, has a broad market space and a huge market concentration and improvement potential. The continuous transformation and upgrading of the supply chain have brought benefits to the company and created a new service development model in Xiamen for better development prospects.

The Application of Artificial Intelligence Technology in the Asset Management of Start-Ups in the Context of Deep Learning

With the coninuous improvement and development of artificial intelligence (AI) technology, this technology has been used in the asset management of companies. To improve the asset management level of Chinese start-ups, firstly, back-propagation neural network (BPNN) has been studied in depth, and an evaluation system of the company's asset quality has been established. Secondly, the BPNN is integrated with the evaluation indicators of asset quality, and an evaluation model of asset quality based on BPNN is constructed. Next, start-up A is taken as the experimental object; the evaluation score of the asset quality of A company is input into the model, which proves that there is still a certain gap between the asset management level of start-ups and mature companies. Finally, to find out the problems of the company's asset quality, the traditional financial analysis method is used to carry out a specific microanalysis of the evaluation indicators of its asset quality. In view of the existing problems, suggestions are put forward for prudent investment, improve inventory operation efficiency, increase investment in R&D and innovation, improve the quality of sales outlets, and increase the proportion of high-quality intangible assets. The asset quality evaluation system for start-ups established here includes 19 evaluation indicators. The BPNN-based asset quality evaluation model selects 5 mature companies in the same industry as sample companies. The scores of the evaluation indicators of asset quality of the 5 sample companies in the past three years are normalized and input into the model. The model contains 19 nodes of the input layer, 39 nodes of the hidden layer, and 1 node of the output layer. The target error rate is 0.001, the learning rate is 0.1, the number of training times is 1000, and the training function is the trainlm function. This research has a certain reference for the application of AI technology in the asset management of start-ups.

Technologies of virtual reality and perspectives of their application in mortgage lending

The article discusses issues related to the development trends of the Russian mortgage lending market, reveals the essence and substantiates the relevance of the introduction of virtual technologies in the process of providing mortgage loans. The main purpose of the study is to analyze current trends in the Russian mortgage lending market, identify existing problems in the process of providing mortgage loans, and develop proposals for further development and improvement of this type of lending. Particular attention during the study was paid to the peculiarities of the use of virtual technologies in the banking business. The implementation of the research goal is due to the solution of the following tasks: the current state and current trends in the Russian mortgage lending market are analyzed; shortcomings of client banking services in the organization of mortgage lending are indicated; analyzed the features of the use of virtual technologies in mortgage lending and the practice of individual Russian banks using virtual reality technologies when applying for a mortgage; the key business indicators of banks that have implemented virtual technologies are given, and the impact of the increase in the share of mortgage lending on the efficiency of their activities is analyzed. To accomplish these tasks in the course of the study, methods of scientific knowledge were used: logical, analytical, the method of comparative analysis, statistical methods of information processing. As the study showed, at present, mortgages are a key driver of growth in retail bank lending, being a reliable, high-quality and profitable asset in the loan portfolios of Russian banks, and the mortgage lending market itself is promising, dynamic, but still not sufficiently technologically advanced. The use of virtual technologies by banks will improve the quality of customer service, will contribute to the growth of mortgage lending and the further development of technological innovations in the banking sector.

Strategic Asset-Seeking During in a Cross Border Acquisition Wave

Cross border acquisition (CBA) waves are periods of concentrated acquisition activity characterized by a cyclical pattern. These waves are triggered by exogenous shocks and provide a time bound window for firms to respond either by seeking newer markets or by upgrading themselves by acquiring strategic assets. We draw on the extant literature that emphasizes the challenges faced by emerging markets firms in pursuing cross border acquisitions. Our findings suggest a U-shaped relationship between entry timing within a wave and strategic asset-seeking acquisitions, which is driven by a trade-off between acquisition of high quality assets and reduction in uncertainty surrounding the acquisition deal. Further, acquirer’s ownership structure conditions the relationship between entry timing and acquisition motives. Specifically, business group affiliation and foreign institutional ownership strengthen the relationship between timing within a CBA wave and strategic asset-seeking motive. Our findings, based on a sample of Indian acquirers provide robust support to our theoretical arguments.

Actuarial Study on Equal Progressive and Equal Ratio Progressive Repayment Model

Equal progressive repayment method and equal ratio progressive repayment method are two kinds of repayment modes which are widely used in countries and regions where individual housing loan businesses flourish internationally. Firstly, starting from cash flow generated during repayment process, modeling loan repayment process, obtains relations between payment, principal and interest in general repayment mode; secondly, uses relational formula to generate equal progressive (withdrawal) repayment method and equal ratio progressive (withdrawal) repayment method next payment, principal and interest mathematical expression; Finally through case analysis give two kinds of repayment methods applicable to housing groups provide reference for financial institutions to introduce diversified repayment methods.When buyers handle mortgage loans, financial institutions generally offer two kinds of repayment methods: equal principal repayment method and equal principal repayment method. Equal principal repayment means equal amounts of loans within repayment periods, repayment of principal amount per month (month) and interest generated during that period, i.e. fixed assets per month (month). Equal interest payment method is to add principal sum of mortgage loan sum interest sum then share each repayment period (month) namely each period of period for fixed. With rapid economic development of our country, residents’ consumption demand has changed greatly, and the concept of advanced consumption gradually accepted by people. Financial institutions have created many new types of loan repayment methods to satisfy people’s consumption demand such as single debt service payment maturity repayment method equal progressive repayment method mobile combination repayment method check-in payment method double week supply relay loan circulation loan balloon loan hole loan etc. Most of these innovative repayment methods are used in short-term consumer loans while residents mortgage loans are long term loans and belong to banks’ high quality assets. Shao Lei and Mr Chen Yonghong pointed out that from America Japan and Hong Kong China such as private housing mortgage lending business booming countries and regions actual situation such as progressive repayment method and equal progressive repayment method is one of two most popular repayment modes internationally especially welcomed by newly married couples and young entrepreneurs. However, these two kinds of repayment methods are complicated, coupled with computer settings and other reasons, currently in China temporarily less used by banks.In our country loan consumption mode gradually accepted by ordinary people. In our country common loan repayment mode includes one-time repayment method equal principal interest repayment method equal principal repayment method. Besides three common repayment modes mentioned above, there are other kinds of progressive repayment methods and equal progressive repayment methods which are commonly used internationally, although these two kinds of repayment methods are less used by banks in China than in China. However, in countries where individual loan business flourish, two kinds of consumer credit repayment modes are very popular. This paper establishes mathematical models of equal ratio progressive repayment method and equal progressive repayment method by using annuity theory in financial mathematics, and analyzes the suitable crowd of these two kinds of repayment methods.

Liquidity and private information in asset markets: To signal or not to signal

This paper examines how multidimensional private information by asset sellers affects market equilibrium. I find that when asset quality is the only source of private information, sellers with high-quality assets signal their quality to buyers through partial retention of assets if and only if their liquidity holdings are large. However, when sellers' valuations of liquid assets are also private information, some sellers with high-quality assets signal their quality even if their liquidity holdings are small. The model is extended to study the implications for discount window lending and government asset purchases.

The impact of profit-sharing investment accounts on shareholders’ wealth

This study evaluates the impact of profit-sharing investment accounts (PSIAs) on shareholders’ wealth. Using probabilistic tools, we derive an explicit formula for PSIA value. We apply this formula to calculate account values for a sample of 52 banks in 13 countries and determine an empirical rank order of value-drivers. We also assess the impact of returns’ smoothing schemes on shareholders’ wealth, namely the use of reserves and/or subsidies to adjust cash returns to investment account holders. We find that the value of PSIAs varies widely amongst banks, and that originating high-quality assets dominates returns’ smoothing in the value creation process. We also find that if subsidies are used without reserves to smooth returns, then shareholders’ wealth is destroyed in the long term for 77% of banks in our sample. This finding supports the practice of prioritising reserves over subsidies to smooth returns.

Savings Gluts and Financial Fragility

AbstractWe propose an incentive-based theory of how a savings glut produces financial fragility. Originators must be incentivized to produce high-quality assets. Assets are distributed to informed intermediaries or uninformed investors. A savings glut reduces origination incentives by compressing spreads between the prices paid for high-quality assets by informed intermediaries and prices paid by uninformed investors for generic assets. The narrowing of spreads relaxes intermediaries’ borrowing constraints, resulting in higher leverage. This generates financial fragility: intermediaries are more likely to become insolvent if unforeseen losses arise. Our model offers a coherent narrative of the run-up to the Global Financial Crisis.

E&P Notes (February 2020)

E&P Notes (February 2020)

Signaling in Competitive Search Equilibrium: Illiquidity vs. Partial Retention

This paper develops a simple competitive search framework to study illiquidity and partial retention of assets as signals of asset quality in markets with private information. I find that both signals are used in equilibrium. However, among sellers with relatively high quality assets, those with higher-quality assets sell marginally fewer assets but with significantly lower probability. In comparison, among sellers with relatively low quality assets, those with higher-quality assets sell significantly fewer assets but with only marginally lower probability. Building on these results, I study aggregate liquidity and quality shocks. For sellers with high-quality assets, the shocks generate larger changes in trading probability than in trading volume, while the opposite happens to sellers with low-quality assets.

Security Design in Non-Exclusive Markets with Asymmetric Information

We revisit the classic problem of a seller (e.g. firm) who is privately informed about her asset and needs to raise funds from uninformed buyers (e.g. investors) by issuing securities backed by her asset cash flows. In our setting, buyers post menus of contracts to screen the seller, but the seller cannot commit to accept contracts from only one buyer, i.e., markets are non-exclusive. We show that an equilibrium of this screening game always exists, it is unique and features semi-pooling allocations for a wide range of parameters. In equilibrium, the seller tranches her asset cash flows into a debt security (senior tranche) and a levered-equity security (junior tranche). Whereas the seller of a high quality asset only issues her senior tranche, the seller of a low quality asset issues both tranches but to distinct buyers. Consistent with this, whereas the senior tranche is priced at pooling valuation, the junior tranche is priced at low valuation. Our theory's positive predictions are consistent with recent empirical evidence on issuance and pricing of mortgage-backed securities, and we analyze its normative implications within the context of recent reforms aimed at enhancing transparency of financial markets.

Clientele Effects for Corporate Investors in the Industrial Market

Corporate investors pay significantly higher prices for industrial acquisitions (by an estimated 10%), but sell at market prices that are no different from other investors. The findings implicate informational disadvantages since it is only inexperienced corporations who overpay. Overpayment is more severe for high-quality assets and those sought after by users. Prices are significantly higher when both buyer and seller are corporate investors, indicating different approaches to valuation. Inclusiveness of the control group is an important caveat when measuring clientele effects. Overall, this study contributes to our understanding of investor clientele effects in the market for commercial real estate ownership.

Buy in May and Sell on St. Leger Day? The Reversal Halloween Effect in QMJ

Quality-minus-junk (QMJ) is a long-short factor that captures the time varying premium of high quality assets. The long side (Quality) is stocks with high quality and the short side (Junk) is stocks with low quality. In this paper, we find that both Quality and Junk have a significant Halloween effect: the portfolios have a relatively better performance during winter as compared with summer. In terms of the magnitude of Halloween effect, Junk is greater than Quality. As a result, the long-short QMJ factor exhibits a pattern of reversal Halloween effect and this result is robust under different study samples. In addition, we also find that the Halloween effect of the stock market (MKT) can be largely explained by its negative exposure on QMJ. After controlling for QMJ, the magnitude of Halloween effect for MKT diminishes more than 60%.

Lifecycle Exchange for Asset Data (LEAD)

PurposeThe purpose of this study is to outline the problems associated with asset information management using the Construction Operations Building Information Exchange (COBie) standard and to analyse the causes of industry failure to successfully adopt the standard. Based on this analysis, the paper will propose a process model, namely, Lifecycle Exchange of Asset Data (LEAD) to manage asset dataflow between all building stakeholders from design to construction and ultimately to the facility management team. This model aims to help the construction supply chain to produce complete and high-quality asset data that supports the operation phase of the built environment.Design/methodology/approachA review of relevant studies provided a theoretical background for this study. The authors then collected and analysed COBie data from five live construction projects using building information modelling (BIM) projects from different design and construction companies. The process model is based on an industry placement within Bouygues UK construction company, which was a Tier 1 building contractor in London in the period from December 2016 to December 2018. The researcher used an inductive approach observing current practises in two construction projects to produce “LEAD” model. Then a focus group was conducted with industry experts to discuss and refine the process model.FindingsAnalysis of literature and data collected in the course of this study revealed that although COBie is a BIM Level 2 standard in the UK, there is currently a low success rate in producing complete and accurate COBie data in the UK construction industry. This low rate is because of COBie’s rigid data syntax/structure, complexity and ambiguity of its data exchange process, which suggests that COBie may not be the future of the industry. Based on these findings, the study proposed a process model, namely, “LEAD,” to improve COBie output and also to be used with project-specific information requirements.Practical implicationsTo the best of the authors’ knowledge, this paper is one of the first to focus solely on asset data exchange process using COBie standard and highlights the problems the industry faces in this remit. The study is based on industry placement for two years, so the analysis is based on actual and current industry problems. Current industry practices also informed the “LEAD” model, and the model provides a step-by-step guidance in producing and exchanging BIM asset data in all stages of the building lifecycle.Originality/valueThis paper provides a detailed analysis of the most common problems associated with COBie as an asset data exchange standard. Understanding these problems is of high value for industry practitioners to avoid them in projects. The paper also proposed a novel process model that can be used either to improve COBie quality or can be used with any project-specific data requirements.