...Linear Regression Analysis of cost effectiveness in risk management Group 8 Abstract This research study explores the possibility that relate cost effectiveness to management’s philosophy of controlling the company’s exposure to various property and casualty losses, after adjusting for company effects such as size and industry type. Using data provided by Professor Joan Schmit and are discussed in more detail in the paper, “Cost effectiveness of risk management practices,” Schmit and Roth (1990). The data are from a questionnaire that was sent to 374 risk managers of large U.S.-based organizations. Through primary analysis, we hypnotized that control variable CAP, control variable INDCOST, and control variable CENTRAL are positively associated with cost effectiveness, and control variable ASSUME, control variables SIZELOG, and control variables SOPH are negatively associated with cost effectiveness. By analyzing the qualities and quantities characteristics of the data, utilizing R to build linear regression models and compare them through R squares and residual analysis to decide the best one, and finally use the model to do interpretation and hypothesis tests to support our hypothesis and findings. Introduction 1. Research Background and Purposes In corporate business world, risk is the main cause of uncertainty in any organization. Thus, companies increasingly focus more on identifying risks and managing them before they even affect the business. The ability...
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...JEL classification: G18 G20 G28 Keywords: Credit ratings Investor pay Issuer pay Moody’s S&P abstract We test whether Standard and Poor’s (S&P) assigns higher bond ratings after it switches from investor-pay to issuer-pay fees in 1974. Using Moody’s rating for the same bond as a benchmark, we find that when S&P charges investors and Moody’s charges issuers, S&P’s ratings are lower than Moody’s. Once S&P adopts issuer-pay, its ratings increase and no longer differ from Moody’s. More importantly, S&P only assigns higher ratings for bonds that are subject to greater conflicts of interest, measured by higher expected rating fees or lower credit quality. These findings suggest that the issuer-pay model leads to higher ratings. & 2012 Elsevier B.V. All rights reserved. 1. Introduction This paper investigates whether charging bond issuers for credit ratings leads to higher ratings. The three major credit rating agencies—Standard & Poor’s (S&P), Moody’s Investor Service (Moody’s), and Fitch—have been heavily criticized since 2002, when they failed to foresee the bankruptcies of Enron and WorldCom. During the recent financial crisis, the major...
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...2012 VOL 4, NO 5 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS The Impact of Adopting Corporate Social Responsibility on Corporate Financial Performance: Evidence from Jordanian Banks Sulaiman R. Weshah Accounting Department, Amman College for finance and administration studies, Al Balqa applied university, Amman, Jordan Dr. Ahmad A. Dahiyat (Corresponding author) Accounting Department, Amman College for finance and administration studies, Al Balqa applied university, Amman, Jordan PO BOX 45, Postal code 11831 Mohammed R. Abu Awwad Islamic International Arab Bank, Amman, Jordan Emad S. Hajjat Accounting Department, Irbid College, Al Balqa applied university, Irbid, Jordan Abstract This study aims to present a suggested framework for Corporate Social Responsibility (hereafter CSR) and to examine if there is a relationship between (CSR), bank size, the level of risk in the bank and Advertising Intensity (hereafter ADINT) on one hand and the Corporate Financial performance (hereafter CFP) on the other hand in the Jordanian banking companies.As such, this study relied on the financial reports from banking companies listed in Jordanian Stock Exchange for the year 2011 and conducted literatures and empirical studies to obtain the results. statistical techniques are used to analyze data. Throughout this study, it is concluded that there is a significant positive relationship between (CSR), bank size, the level of risk in the bank and ( ADINT) on one hand and (CFP)...
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...Petersen, Mitchell A. Working Paper Does the source of capital affect capital structure? CSIO working paper, No. 0054 Provided in Cooperation with: Department of Economics - Center for the Study of Industrial Organization (CSIO), Northwestern University Suggested Citation: Faulkender, Michael; Petersen, Mitchell A. (2004) : Does the source of capital affect capital structure?, CSIO working paper, No. 0054 This Version is available at: http://hdl.handle.net/10419/38692 Nutzungsbedingungen: Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter → http://www.econstor.eu/dspace/Nutzungsbedingungen nachzulesenden vollständigen Nutzungsbedingungen zu vervielfältigen, mit denen die Nutzerin/der Nutzer sich durch die erste Nutzung einverstanden erklärt. zbw Leibniz-Informationszentrum Wirtschaft Leibniz Information Centre for Economics Terms of use: The ZBW grants you, the user, the non-exclusive right to use the selected work free of charge, territorially unrestricted and within the time limit of the term of the property rights according to the terms specified at → http://www.econstor.eu/dspace/Nutzungsbedingungen By the first use of the selected work the user agrees and declares to comply with these terms of use. THE CENTER FOR THE STUDY OF INDUSTRIAL ORGANIZATION AT NORTHWESTERN UNIVERSITY Working Paper #0054 Does the Source of Capital...
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...Statistical Modeling of Bus Dwell Time at Stops Students Name: Course Name: Professor Name: University Name: City, State: Date: Abstract The key purpose of the paper is to attempt and elaborate on Analysis of bus dwell times that uses automatic vehicle (AVL)/ automatic passenger counter (APC) Information in which it upsurges vast amounts on data because of its position to enhance real time information on bus arrivals. The paper will also stress on how bus dwell period at bus bay contains extreme decorum of indecision, arising from the merging characters of bus to other vehicles shoulder. Lastly it will show on the procedures used to approximate the bus dwell period in the field. Introduction Bus dwell period is one of the essential components that could affect bus transport Systems intensity of service, due to the upsurge in number of persons travelling by means of road, especially those using buses tend to experience huge congestions at the bus stations. Therefore some nations have adapted the dwell times that uses automatic vehicle location (AVL)/ automatic passenger counter...
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...relationship exists among creditors, shareholders and management, and information asymmetry among them leads to asymmetric loss functions, which induces conservative accounting. This paper investigates the determinants of accounting conservatism using accrual-based measures and data from 2001 to 2006 in China. We find that a higher degree of leverage, lower level of control of ultimate shareholders and lower level of management ownership lead to more conservative financial reporting. We also find that political concerns and pressures among state-owned enterprises are greater than those among non-state owned enterprises, which leads to more conservative financial reporting among the former. However, a decrease in such concerns leads to a decrease in accounting conservatism. Overall, we find that among the determinants of conservatism in China, debt is the most important, followed by ownership, and that board has little influence. JEL classification: G30; M41 Keywords: Information asymmetry; Agency problem; Accounting conservatism; Political concerns; Corporate governance * We thank George Yang from Chinese University of Hong Kong and participants at CJAR Summer Research Workshop for helpful comments. We express our sincere appreciation to the anonymous referee and the English editor. This paper is sponsored by the National Natural Science Foundation of China (grant number 70772017). ** Corresponding author. Song Zhu: E-mail address: zhusong@bnu.edu.cn. Correspondence address:...
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...MASTER BUSINESS PLAN PROPOSAL DOCUMENT GATEWAY TO BUSINESS BUS 1000 EXECUTIVE SUMMARY (1 page) Ambro • First page of the document • Include team member names • Include one image of app (or that denotes the app focus) • 200-300 words total • 2-4 sentences that capture the essence of your app • 2-3 sentences on the need/desire your app addresses • 2-4 sentences on the size of your target market • No glitzy marketing terminology (“Plus, if you act now, this set of… absolutely free!”) • Think and write in terms of the HCOC (holy crap on a cracker) model… in other words, say something in 200-300 words that would make an angel investor want to turn the page and read the rest of your business plan proposal THE TEAM (1 page) Ambro • Second page of the document • Photo of each team member (professional-casual) • Description of each team member; think here in terms of what an angel investor would want to know about each team member • Contact information for each team member • Point of contact information for the team PRODUCT DESCRIPTION (max 4 pages) Ambro • Limit this to no more than 4 pages • Don’t fill pages… if you need only 2.5 pages, then stop there • Use sub-headings if necessary to highlight major features • No more than 1 image (screen capture of your app) per page • Identify and describe the major feature set of your app • Be careful not to drive down into the details (e.g., the ability to change background screen image, unless...
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...Looking back on the topic of self-image and the media, I have come to the realization of just how controversial this topic has the potential of being. Both sides of this topic have valid reasoning and facts to back up their opinions. At one end of the spectrum, businesses and corporations are convinced that having thinner, more beautiful models to represent their product is more appealing to the eye and draws in the customer. This is working for them; beauty tends to draw attention of the consumers. Thin, tall, and flawless is what is considered the standard of beauty in today’s society; by this standard, putting these types of models on billboards is logical, since they are trying to appeal to a broad spectrum of consumers. The opposing side...
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...solbridge international school of business | The Necessities of Supermarkets | Applied Research | | | | Applied Research Project | Introduction In this contemporary life, people cannot survive without supermarket which is interrelated to the whole thing of people’s lives, such as food and clothing line. A supermarket is a outward appearance of grocery store, a self-service store offering a wide variety of food and household merchandise and organized into departments. The supermarket characteristically comprises meat, fresh produce dairy, baked goods departments, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as household cleaners, pharmacy products and pet supplies. Most supermarkets also sell a variety of other household products that are consumed regularly, like alcohol, medicine, clothes and some stores sell a much wider range of non-food products. A supermarket is larger in size and has a wider selection than a traditional grocery store also selling items typically found in a convenience store but is smaller and more limited in range of merchandise than a hypermarket or big-box store. In this paper we divided supermarkets of the worlds into three categories: * Convenience stores also called corner store, a small store that stocks a range of everyday items such as groceries, toiletries, alcoholic soft drinks and tobacco products. * Regional supermarket, a superstore which is bigger than...
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...1. Introduction This paper will examine the relationship between the dividend policy and stock price volatility based on the previous studies. Dividend policy is referred as a direction to the dividend paid out. In practice, we can through three aspects to show how the dividend policy is important. Firstly, in term of the clientele effect, the transaction cost and tax of investor position can exert an influence on whether dividend policy gains are preferred which means that dividend policy will exert an important influence on investors’ behaviour. Secondly, according to the signaling effect, dividend paid is the mean by manager to signal the new information to investor. And thirdly on basis of the agency theory, dividend policy would attribute to the conflict between the interests of management and interests of stakeholders. Through the different dividend policy, firms can use the earning to make scrip dividends, special dividends, share repurchase and non–pecuniary benefits. In 1961, Modigliani and Miller (MM) argue that, given perfect and efficient markets, the pattern of dividend payments by a business have no effect on shareholder wealth. The only way to maximum shareholder wealth is investment with a positive NPV. So depend on M&M theory, Atrill (2000) agrees that to pay a lower dividend will simply be compensated by an increase in share price through reinvestment. De Angelo and Masulis, Kim (1988) and Miller (1986) supported that dividend paid can greatly reduce...
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...CHI-SQUARE TEST - ANALYSIS OF CONTINGENCY TABLES David C. Howell University of Vermont The term ”chi-square” refers both to a statistical distribution and to a hypothesis testing procedure that produces a statistic that is approximately distributed as the chi-square distribution. In this entry the term is used in its second sense. PEARSON’S CHI-SQUARE The original chi-square test, often known as Pearson’s chi-square, dates from papers by Karl Pearson in the earlier 1900s. The test serves both as a ”goodnessof-fit” test, where the data are categorized along one dimension, and as a test for the more common ”contingency table”, in which categorization is across two or more dimensions. Voinov and Nikulin, this volume, discuss the controversy over the correct form for the goodness of fit test. This entry will focus on the lack of agreement about tests on contingency tables. In 2000 the Vermont State legislature approved a bill authorizing civil unions. The vote can be broken down by gender to produce the following table, with the expected frequencies given in parentheses. The expected frequencies are computed as Ri × Cj /N, where Ri and Cj represent row and column marginal totals and N is the grand total. Vote Women Men Total Yes 35 (28.83) 60 (66.17) 95 No 9 (15.17) 41 (34.83) 50 Total 44 101 145 The standard Pearson chi-square statistic is defined as χ2 = (Oij − Eij )2 (35 − 28.83)2 (41 − 34.83)2 = + ··· + = 5.50 Eij 28.83 34.83 where i and j index the rows and columns of...
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...parts and gave suggestion about the Differential Rig Last but not least, many thanks go to the head of the project, Dr. Archana Pillai who have given her full effort in guiding the team in achieving the goal as well as his encouragement to maintain our progress in track. I would to appreciate the guidance given by other supervisor as well as the panels especially in our project presentation that has improved our presentation skills by their comment and tip. 2 INDEX SL NO. 1 2 CONTENT INTRODUCTION KEY PLAYERS OF THE INDUSTRY 3 GROWTH OF THE INDUSTRY 4 5 6 SWOT ANALYSIS CONCLUSION BIBLIOGRAPHY 16 19 22 12 PAGE 4 6 3 INTRODUCTION Overview Of The Industry Printing is a process for reproducing text and image, typically with ink on paper using a printing press. It is often carried out as a large-scale industrial process, and is an essential part of publishing and transaction printing. Indian print media is one of the largest print media in the world. The history of it started in 1780, with the publication of the Bengal Gazette from Calcutta. James Augustus Hickey is considered as the "father of Indian press" as he started the first Indian newspaper from Calcutta, the Calcutta General Advertise or the Bengal Gazette in January, 1780. In 1789, the first newspaper from...
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...based methods of share valuation, to critically appraise the available empirical evidence, and to provide examples of the problems, issues and limitations of share valuation. Chapter Outline • Overview of the relationship between earnings and value. • Compounding versus Discounting • Long Event Windows and Discounted/Compounded Earnings. • Earnings Capitalisation and P/E Valuations. • Permanent versus Transitory Earnings and Financial Analysis. • Ohlson’s Theory of Value. • Example of Ohlson Style Valuation. Why focus on earnings for valuation? In chapter 7 we argued that cash flow and dividend based valuation models were conceptually and empirically inappropriate. Earnings based valuation methods, in particular Ohlson style valuation models, are shown in this chapter to be conceptually superior to dividend and cash flow valuation approaches. There is growing empirical evidence consistent with our arguments, some of which is reviewed in this chapter. Chapter 9 provides some detailed examples of the Ohlson style earnings valuation methodology and should be studied after digesting the current chapter. Why focus on earnings? The actions and statements of the professional investment community provide compelling anecdotal evidence that earnings are important in the valuation of company shares. At the aggregate level expected profits and growth in profits impact on market valuation. For example a recent article on...
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...based methods of share valuation, to critically appraise the available empirical evidence, and to provide examples of the problems, issues and limitations of share valuation. Chapter Outline • Overview of the relationship between earnings and value. • Compounding versus Discounting • Long Event Windows and Discounted/Compounded Earnings. • Earnings Capitalisation and P/E Valuations. • Permanent versus Transitory Earnings and Financial Analysis. • Ohlson’s Theory of Value. • Example of Ohlson Style Valuation. Why focus on earnings for valuation? In chapter 7 we argued that cash flow and dividend based valuation models were conceptually and empirically inappropriate. Earnings based valuation methods, in particular Ohlson style valuation models, are shown in this chapter to be conceptually superior to dividend and cash flow valuation approaches. There is growing empirical evidence consistent with our arguments, some of which is reviewed in this chapter. Chapter 9 provides some detailed examples of the Ohlson style earnings valuation methodology and should be studied after digesting the current chapter. Why focus on earnings? The actions and statements of the professional investment community provide compelling anecdotal evidence that earnings are important in the valuation of company shares. At the aggregate level expected profits and growth in profits impact on market valuation. For example a recent article on...
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...Scope of the research paper | 3 | 2 | Introduction | 3 | 3 | Research methodology | 3-4 | 4 | Conclusion | 4 | 5 | Limitations and future direction of research | 4-5 | | (a) Limitations | 4 | | (b) Future direction of research | 5 | BEST PRACTICES IN ESTIMATING COST OF CAPITAL 1. THE SCOPE OF THE RESEARCH PAPER: It is a survey research paper presenting the results of the cost of capital survey of advisors, corporations etc showing a close alignment among the groups on the use of common theoretical framework and on many aspects of estimation. Variations are found on large number of joint choices regarding cost of capital. 2. INTRODUCTION TO THE TOPIC: The paper is about presenting evidence that how some of the most financially sophisticated companies and financial advisers estimate capital cost. The evidence to be presents is valuable in several aspects. First is to identify the most important ambiguities in the application of cost of capital theory and the second is helping interested companies benchmarking their cost of capital estimation practices against best practice peers. Third is that the evidence sheds light on the accuracy with which the capital costs can be reasonably estimated. The cost of capital can be computed by the following, i. The weighted average cost of capital. ii. Sample selection. iii. Survey findings. iv. Impacts of various assumptions for using CAPM. 3. RESEARCH METHODOLOGY: This paper presents the...
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