Share Of Assets Research Articles

The Non-U.S. Bank Demand for U.S. Dollar Assets

The USD asset share of non-U.S. banks captures the demand for dollars by these investors. An instrumental variable strategy identifies a causal link from the USD asset share to the USD exchange rate. Cross-sectional asset pricing tests show that the USD asset share is a highly significant pricing factor for carry trade strategies. The USD asset share forecasts the dollar with economically large magnitude, high statistical significance, and large explanatory power, both in sample and out of sample, pointing towards time varying risk premia. It takes 2-5 years for exchange rate risk premia to normalize in response to demand shocks.

Taxes and the macro economy

My research with Furman (2018) assessed the 2017 U.S. tax reform and concluded that economic growth would be boosted by about 1 percent per year for 2018-19 and to a lesser extent for the following eight years. This forecast accorded well with realizations through the first quarter of 2019, but subsequent growth is slower, likely due to adverse effects from the ongoing trade war. Extensions from the previous research consider effects from businesses’ choices of legal form between corporate and pass-through status. Corporate form conveys benefits from perpetual legal identity, limited liability, potential for public trading of shares, and ability to retain earnings. However, legal changes have enhanced pass-through alternatives, for example, through the invention of the S-corporation in 1958 and the improved legal status of LLCs (limited liability companies) at the end of the 1980s. Corporate form is subject to a time varying tax wedge, which offsets the productivity benefits. In a theoretical framework, with a distribution of firms’ productivities associated with corporate and pass-through status, the tax wedge determines the fraction of firms that opt for corporate status, the level of economy-wide output (productivity), and the share of output generated by corporations. This framework underlies the empirical analysis of corporate shares of business economic activity. Long-difference regressions for 1968-2013 show that a higher tax wedge reduces the corporate share of gross assets. The corporate share also exhibits downward trends, likely reflecting underlying legal changes.

Анализ финансового состояния промышленного предприятия

Financial analysis is important for effective management: it provides growth reserves and eliminates those problem areas that can decrease key financial indicators and result in bankruptcy. The present research featured theory and practice of financial analysis of an enterprise. The paper represents a case study of Kuzbassrazrezugol OJSC, one of the leading coal mining enterprises in the country (Kuzbass, Russia). The research objective was to analyze its financial status, identify problem areas, and propose solutions. The research employed coefficient, vertical, and horizontal analysis, as well as general methods of analysis, synthesis, grouping, and generalization of data. The article introduces authentic approach to the term “financial status” and gives various scientific interpretations of the term. The paper focuses on factors, key indicators of financial analysis, and degrees of financial stability. Financial analysis includes assessment of financial stability, business activity, liquidity, and profitability. The author compiled a list of indicators for each section of financial analysis. The case study revealed that the company under analysis has a fairly strong financial position. The list of minor problems revealed included: superiority of short-term financial sources; high share of borrowed funds in the overall structure of funding sources; high share of non-current assets in the structure of the company’s property; high volume and low turnover of receivables. For each problem, the author proposed an appropriate solution. The financial analysis revealed problem areas and provided guidelines for further long-term effective development. The article owes its scientific novelty to the case study which revealed peculiarities in strategies for managing the financial status of coal mining enterprises.

Cost efficiency and risk as determinants of market share in banking: Evidence from the old and new eu member and candidate countries

In this study we investigate how cost efficiency and risk affect market share in European banking industry. Our analysis is motivated by the well-known efficiency hypothesis and structure-conduct-performance theory. We hypothesize that improved efficiency and enhanced riskiness of a bank should be related to an increase in its market share. Therefore, in contrast to other studies, we include risk as a determinant of market share. In the study we use annual data for 36 European countries’ banks for the time span from 2007 to 2015. The results reveal that risk and efficiency are positively associated with market share of assets, loans and deposits. Additionally, we find that banks in transition countries were less successful in transposing their cost efficiency advantages into market share gains than banks in European developed countries. The empirical model is estimated by using the GMM method in order to account for dynamic nature of investigated components and to mitigate the endogeneity problem.

Optional Basis Adjustments Under Subchapter K: Trap for the Unwary, Tax Planning Tool, or Both? Should They Be Mandatory?

The optional basis adjustments of Subchapter K have occupied a prominent position in tax planning and partnership operations for the past 60 years. In the dispositional context, the general approach of the Code to the taxation of partnerships and their partners treats the partnership as an entity, separate and distinct from its partners. Thus, if a partner disposes of his partnership interest by sale to a third party, no adjustment or modification of the bases of the assets of the partnership occurs. Such is the case even though ownership of the partnership has been altered and the purchase price for the interest reflects the fair market value of the partner's underlying share of the partnership assets. Similarly, if a partner's interest is liquidated by the partnership, although the value of the distributed assets equals that of the relinquished partnership interest, the bases of the partnership's remaining assets are unaffected. Thus, in the case of a disposition by sale or liquidation for cash of an appreciated partnership interest, although the seller/distributee is taxed on the gain, without a basis adjustment, the purchaser or the remaining partners will be taxed on the same gain when realized by the partnership. In a similar fashion, for a depreciated partnership interest, a "duplication of loss" will arise, i.e., at both the partner and the partnership level.

Does adversity affect long-term financial behaviour? Evidence from China’s rustication programme

This paper examines the long-term effects of adversity on financial behaviour. It draws on the largest forced migration experiment in history, China’s rustication programme. Evidence from the Chinese Twins Survey and Chinese Household Income Project shows that rusticated individuals behave conservatively with respect to finances over the long term, compared with their age-eligible but nonrusticated peers. They reduce housing consumption and its share of total assets, increase savings, accumulate more safe assets, and invest less in risky assets. Such patterns are consistent with evidence from manually collected county gazetteer data. Possible mechanisms include reduced productivity, habit formation, and psychological changes.

LIKUIDITAS, AKTIVITAS, DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN AUTOMOTIVE YANG TERDAFTAR DI BEI

The purpose of this study was to determine the significant influence Current Ratio, Accounts Receivable Turnover and Return On Asset Share Price Automotive Company Listed on the Indonesian Stock Exchange. The analysis used in this research is multiple linear regression analysis. The hypothesis is suspected the influence of Current Ratio, ROA, INTO on stock prices of components in the automotive sector and the stock exchange Indonesia 2011-2013. F-test analysis results, there is a relationship that is of influence between the Current Ratio, ROA, INTO simultaneously to the stock price in the automotive sector listed in Indonesia stock exchange 2011-2013. T test results showed ROA Inventory Turnover and partially influence on stock prices of automotive and components sector in Indonesia Stock Exchange. The coefficient of determination (R2 = 0.245 or 24.5%), which means that independent variables (Current Ratio, ROA, INTO) can only explain 24.5% of the value of the company and 75.5% are influenced by other factors.

Sources of information and portfolio allocation

This research investigates the relationship between how a household receives financial information and the degree to which investment portfolios are diversified. Diversification is measured as allocation across asset classes and share of assets held in each asset class. Propensity score-based techniques incorporating stratification and weighting are employed to better isolate causal links, while also controlling for objective and subjective financial literacy and overconfidence. Results indicate that the use of financial planners and brokers is associated with an increase in asset class diversification. Households that consult with financial planners and bankers allocate their wealth systematically different from those who do not. These results highlight the role that financial professionals play in helping households make investment decisions.

PROBLEMATIKA PEMBAGIAN HARTA BERSAMA DI SAMALANGA-BIREUEN

Joint assets are assets obtained either individually or with a husband and wife as long as the marriage is underway without questioning registered in the name of anyone. Although the term jurisprudence of shared assets is not found, the community practice does not separate husband and wife's assets in marriage giving birth to a conception of shared assets which is then considered to be syirkah between husband and wife in the institution of marriage. Divorce is one of the causes of the emergence of problems relating to shared property. The problem that is possible is that there is no division in accordance with the provisions of the applicable laws. The question is how to divide shared assets in Samalanga and what is the problem. The research is qualitative research in the form of field studies using a conceptual approach. The results of the study found that in Samalanga-Bireuen there were cases of joint property controlled by one of the wives or husbands, even though the customary practice of the Samalanga community carried out joint property distribution between husband and wife after divorce with a third pattern. This happened because between the husband and wife found that there was still an attitude of apathy and laity towards the existence of shared assets in the marriage.Keywords: Problems, Joint Assets, Divorce.

Unintended Benefits of Employment Protection Laws: Households Increased Risk-taking Behavior

Using the staggered exogenous adoption of US state-level labor protection laws and longitudinal survey data, I provide novel findings on the effect of employment protection laws on households' portfolio choices. I find that households increase the share of risky assets in financial wealth by 8.9% following the adoption of these laws. Stock market participation accounting for indirect investment also increases one year after the adoption. These effects are stronger for households with a higher unemployment risk, associated with young and low-income households. The exact opposite risk-taking behaviors are observed when the law is reversed. I also find that already discharged households at the time of the adoption reduce their stock holding and participation after the adoption. The adoption of the law contributes to wealth accumulation: purchases of stocks following the laws lead to 7% increase in the total equity value five years after trades. Finally, households are more likely to invest in out-of-state stocks than in-state stocks after the adoption, reducing investors' local-bias. Overall, the findings imply the economic and statistical significance of employment protection laws in effectively inducing households to take more financial risk, thereby improving wealth accumulation. This is an indirect social benefit of the employment protection law.

Bank profitability and macroeconomic conditions: Are business models different?

AbstractThe paper investigates the impact of macroeconomic conditions on the profitability of EU banks by testing for differential effects according to the business model. We group banks into three business models using a hierarchical cluster analysis and find that using clusters based on the share of assets invested in loans reveals heterogeneity in the sensitivity of bank profitability to economic growth across business models. Our main result is that GDP growth, credit growth, and the risk‐free yield curve influence profitability as expected, but we also find that the effect of GDP growth is only significant for banks that have a high and medium share of assets invested in loans, and not for banks that hold large portfolios of securities. This difference depends on the impact of growth on asset write downs, especially those on loans and, to a lesser extent, on revenues. The results suggest that studies relating bank profitability to macroeconomic conditions should take the heterogeneity of business models into account.

The conceptual foundations of educational cooperation of universities and companies of Industry 4.0

Purpose The purpose of this paper is to specify the conceptual foundations of educational cooperation of universities and companies of Industry 4.0 for maximizing its efficiency. Design/methodology/approach For determining the efficiency of educational cooperation of universities and companies of Industry 4.0 in modern Russia, the authors use the information and analytical materials on the results of monitoring of effectiveness of the activities of educational organizations of higher education in 2018. They use the indicators of the number of cooperation agreements and efficiency of cooperation – employment of graduates and the share of non-budget assets in revenues from the educational activities. These indicators are studied with the help of the method of regression analysis. The objects of the research are the flagship universities of the Central and the Southern Federal District of the Russian Federation. Findings Low efficiency of the educational cooperation of universities and companies of Industry 4.0 in modern Russia is observed. The authors show by the example of the flagship universities of the Central and Southern Federal Districts of the Russian Federation in 2018 that multiple agreements on their cooperation with the companies of regions in which they are located do not ensure high values of the indicators of employment of their graduates and the share of non-budget assets in revenues from the educational activities. Originality/value An algorithm of developing the educational cooperation of universities and companies of Industry 4.0 and a model of educational cooperation of universities and companies of Industry 4.0 are offered. The authors’ recommendations specify the conceptual foundations of the educational cooperation of universities and companies of Industry 4.0, as they orient the participants of this cooperation at achievement of specific formalized results and show the mechanism of achieving them.

Penyelesaian Sengketa Harta Bersama Dengan Harta Bawaan Ketika Terjadi Perceraian

The Marriage Agreement functions as a solution to anticipate or avoid injustice in the trial process in the court of the distribution of property, if there is a dispute between husband and wife. Conflicts over the distribution of inheritance sometimes can not be resolved by mediation efforts, even after being processed in the first court (religious court), continues into the court of appeal and cassation. Benefits of a Marriage Agreement in the Settlement of Default Assets, to assist the panel of judges adjudicating a case of inheritance disputes in making the right decision in divorce cases. If a case does not occur, the agreement is useful for separating the status between shared assets and property. If a case / dispute occurs, the marriage agreement is available

Trends in Household Portfolio Composition

We use data from the Survey of Consumer Finances (SCF) to explore how household asset portfolios in the United States have evolved from 1989 to 2016. Throughout this period, two key assets—housing and financial market assets—have driven the aggregate household balance sheet evolution. However, aggregates mask great heterogeneity in balance sheet composition across the wealth distribution, and most families hold a relatively small share of assets in financial markets and larger shares in housing and other nonfinancial assets. We also describe the typical life cycle asset accumulation processes among low, middle, and high-income families which—though varying dramatically by level—are quite similar. Finally, we use household balance sheets to describe how financial vulnerability has changed over time.

The lab and the plant: Offshore R&D and co-location with production activities

The literature has highlighted that the propensity of MNEs to co-locate offshore R&D labs with their production plants can vary substantially according to firm and industry characteristics. In this paper, we apply a novel two-stage estimation procedure that allows us to tease out this heterogenous behavior and investigate the factors that are associated with a higher propensity to co-locate production and R&D activities abroad. Using data on 1483 greenfield international investments in R&D activities made by 855 firms in 587 cities worldwide, we uncover that the strength of the co-location effect is indeed highly heterogenous across firms. In particular, it is higher among firms with less international experience and geographical dispersion of international activities, as well as with a lower share of intangible assets. These results are consistent with the idea that co-location is a substitute for firms’ ability to coordinate complex and dispersed organizational structures, and that firms relying relatively less on codified knowledge can use co-location of offshore R&D and production to facilitate knowledge transfer across activities.

The Implementation of Itsbat Marriage for the Customary Community of South Malalak through Maninjau Religious Court Class II

The aim of this research is to know why part of community conducts a marriage approval and the marriage approval is conducted in the Customary Community of South Malalak by Maninjau Religious Court Class II. The method used in this research is judicial-empirical. The research results are (1). The community starts to realize the benefit of recorded marriage and the community starts to realize how important the marriage status acknowledged by the country and realize the legal consequence if the marriage is not recorded. (2) in terms of marriage recording, it is by doing notification activity towards customary community of South Malalak, and notifying the requirements needed to conduct approval and to give explanation regarding the procedure from the marriage approval. 3). The legal consequence after conducting marriage approval is the guarantee of legal certainty for the spouses that do not have marriage certificate, the protection on particular rights as the citizens after marriage, for the divorce interest (divorced/death divorced), the marriage book issued after approval becomes one of the proofs for divorce requirement which can be processed in the Religious Court, the assets obtained during marriage becomes shared assets since the beginning of the previous marriage, and the certainty of inheritance right on children, wife/husband if one of in the families is passed away.

Corporate debt in Latin America and its macroeconomic implications

This article provides an empirical analysis of nonfinancial corporate debt in six large Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, and Peru), distinguishing between bond-issuing and nonbond-issuing firms, and assessing the debt’s macroeconomic implications. The paper uses a sample of 2,241 firms listed on the stock markets of their respective countries, comprising 34 sectors of economic activity for the period 2009–2016. On the basis of liquidity, leverage, and profitability indicators, it shows that bond-issuing firms are in a worse financial position relative to nonbond-issuing firms. Using Minsky’s hedge/speculative/Ponzi taxonomy for financial fragility, we argue that there is a larger share of firms that are in a speculative or Ponzi position relative to the hedge category. Also, the share of hedge bond-issuing firms declines over time. Finally, the article presents the results of estimating a nonlinear threshold econometric model, which demonstrates that beyond a leverage threshold, firms’ investment contracts while they increase their liquidity positions. This has important macroeconomic implications since the listed and, in particular, bond-issuing firms (which tend to operate under high leverage levels) represent a significant share of assets and investment. This finding could account, in part, for the retrenchment in investment that the sample of countries included in the paper have experienced in the period under study and highlights the need to incorporate the international bond market in the analyses of monetary transmission mechanisms.

The Dispute Settlements of Inheritance in Palangka Raya: A Legal Anthropology Approach

The issue of inheritance distribution does not often lead to conflicts that must be resolved by means of litigation. In resolving conflicts that might arise, the community usually has set a separate rule to distribute inheritance. The people of Central Kalimantan, especially in the City of Palangka Raya, prioritize deliberations that are actually not contrary to Islamic law in resolving their inheritance disputes. Why and how these dispute settlements are conducted? This study uses normative-empirical methods which employs a legal anthropology approach. The results of the study show that the tradition of resolving inheritance disputes in the people of Palangka Raya City of Central Kalimantan prioritizes peaceful settlement disputes by using Islamic law first and then a family meeting is held to determine the agreeable share and distribution of assets. The principle of kinship in the protection of property (hifz al-maal) in the family is adopted, so that the community returns to share property with the negotiation method which is built on family agreements. By referring to Islamic jurisprudence on inheritance, the dispute settlements also aims at sharia compliant in order to adhere to Islamic doctrine (hifz al-din). Finally, they also adopt the principle of responsive thinking which is human based on local wisdom values in society. The conclusion of this study shows that the Palangka Raya City Society combines Islamic law and customary law in the distribution of inheritance.Keywords: dispute resolution, inheritance, Palangka Raya, legal anthropology.

Why Is Investors' Mutual Fund Market Allocation Far from the Optimum?

We analyse the differences between the optimal portfolio of funds that a fully in-formed investor might select and the current structure of the mutual fund markets as characterized by the funds’ risk profile (conservative or aggressive) and target investor type (retail or wholesale). We find that the relationship between fund age, market share and change in total net assets – but not fees – and the optimal portfo-lio of funds depends on the structure of the mutual fund market.

Analiza reaktivnog djelovanja bankovnog sustava EU-a kroz najavu izmjene prudencijalnog regulatornog okvira u funkciji očuvanja financijske stabilnosti

Uspostava nadnacionalnih autoriteta regulacije banaka izravno je pridonijela boljem razumijevanju ponašanja i utjecaja bankovnog sektora na ekonomske tokove u cjelini. Institucionalna povezanost nacionalnih regulatornih tijela u kontekstu globalizacijskih odnosa pridonosi željenoj standardizaciji podataka koji su temelj za svaku validnu ekonomsku analizu. Napose, tržišna disciplina kao uporište suvremene regulacije reducira prostor neprozirnosti bankovne tvrtke, dok s druge strane dostupnost relevantnih baza podataka širi horizonte modelskog pristupa analize bankovnog sektora. Dominacija istog sektora kao izvora eksternog financiranja na zajedničkom europskom tržištu ishodište je traženja rješenja izlaska iz stagnacijskih pritisaka na gospodarska kretanja. Dinamičnost kauzalnih ekonomskih odnosa nameće potrebu sve veće pouzdanosti u izvore podataka, stoga reprezentativnost uzorka ne samo da usmjerava pojedino istraživanje već i determinira spoznajni proces. Analiza javno dostupnih podataka bankovnih tvrtki suvremenim ekonometrijskim alatima svakako je velik iskorak u pokušaju uspostave jasnog i transparentnog metodološkog okvira monitoringa reaktivnog djelovanja bankarskog sektora na nužnu promjenu regulatornih uvjeta u funkciji postkriznog pokretanja kreditnog ciklusa. Model empirijske analize usklađivanja bankarskog sektora s novim kapitalnim zahtjevima ovim će se radom testirati na uzorku od 35 bankovnih grupacija koje posluju na području EU-a za razdoblje od 2000. do 2016. godine, odabranih po veličini aktive. Analizom panel modela izvršen je odabir dinamičkog panela generaliziranom metodom momenata (engl. Generalized Method of Moments – GMM) jednim korakom. Rezultati istraživanja dali su dokaze da najava povećanja regulatornog kapitala utječe na rast ukupnih bankovnih aktiva odnosno dolazi do značajnog porasta udjela bezrizičnih aktiva u imovini banaka, dok s druge strane dolazi do kreditne kontrakcije koja olakšava zadovoljenje regulatornih zahtjeva. Konačno, upravljačke strukture preko neto kamatne marže kao instrumenta kreditno-depozitne politike, realociraju vlastita i tuđa sredstva u funkciji očuvanja likvidnosti i solventnosti banke u cjelini.