Carlos Maquieira, Orlando Gahona-Flores and Christian Espinosa-Méndez
This study focuses on how China EPU may impact copper-firms stock returns and also how China EPU mediates between stock returns and copper prices returns.
Abstract
Purpose
This study focuses on how China EPU may impact copper-firms stock returns and also how China EPU mediates between stock returns and copper prices returns.
Design/methodology/approach
The sample consists of 44 copper firms from January 2011 to March 2022. The study also considers a subsample of 29 net-exporters countries. Panel data methodology is used, allowing to control for unobservable heterogeneity and endogeneity problems. The equations are estimated through a dynamic panel using the generalized methods of moments (GMM).
Findings
China EPU has a negative and statistically significant relationship with stock returns. Copper price returns are positively associated with stock returns. This research also considers two scenarios: high and low levels of China EPU. For high levels of China EPU states it is reported a negative relationship between stock returns and China EPU and copper price returns show a positive relationship with stock returns.
Research limitations/implications
There is need to explore other metals for what China exhibits a high demand and observe if China EPU and Global EPU have similar impacts on stock returns. It will be useful to identify main firm's consumers of copper and these other metals to explore the relationship between EPU and stock returns.
Originality/value
To the best of the authors’ knowledge, this is the first paper that analyzes China EPU index and its impact on both copper-firms stocks returns and on changes in copper prices. This is done using all public copper firms worldwide.
Propósito
Este estudio se enfoca en como la incertidumbre en política económica de China (llamado China EPU) puede impactar en los retornos de las acciones de empresas del sector del cobre y como China EPU media entre los retornos de las acciones y los retornos de los precios del cobre.
Diseño/metodología/enfoque
La muestral consiste en 44 firmas de cobre desde enero 2011 a marzo 2022. El estudio también considera una sub muestra de 29 países que son exportadores netos de cobre. Se utiliza la metodología de datos de panel, permitiendo controlar por lo inobservable y por problemas de endogeneidad. Las ecuaciones son estimadas a través de panel dinámico usando el método generalizado de los momentos (G.M.M.).
Resultados
EPU de China tiene una relación negativa y estadísticamente significativa con los retornos accionarios. Los retornos de los precios del cobre están positivamente asociados con los retornos accionarios. La investigación también considera dos posibles escenarios: altos y bajos niveles de EPU. Para el estado de altos niveles se reporta una relación negativa entre los retornos accionarios y el EPU de China, además los retornos de los precios del cobre muestran una relación positiva con los retornos accionarios.
Limitaciones de la Investigación/Implicancias
Se requiere explorar otros metales para los cuales China sea un importante demandante a nivel internacional y observar si el EPU de China y el EPU Global tienen similares impactos en los retornos accionarios. A su vez sería útil identificar las principales firmas consumidoras de cobres y estos otros metales de tal forma de chequear la relación entre EPU y retornos accionarios.
Originalidad/valor
En nuestro mejor conocimiento, este es el primer artículo que analiza el índice EPU de China y como este impacta tanto los retornos accionarios de las empresas de cobre como los cambios de precios del cobre. Esto es hecho usando una muestral que incluye todas las empresas de cobre que se transan en bolsa a nivel internacional.
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Franco Parisi, Carlos Maquieira and Antonino Parisi
This chapter develops a Probit model that identifies the financial variables explaining the bankruptcy of banking institutions in Ecuador as a function of efficiency, assets…
Abstract
This chapter develops a Probit model that identifies the financial variables explaining the bankruptcy of banking institutions in Ecuador as a function of efficiency, assets, capital, risk and operating income. The implications of this study verify the validity of the solvency theory over the self-fulfilled panic speculations. The criteria used was a high Pseudo R2 and an as high as possible Efficiency Index. The model yielded a Pseudo R2 of 89.14% and an Efficiency Index of 96.7%. The model is useful in preventing bankruptcy of a bank one year in advance.
Christian Espinosa, Carlos Maquieira, Fernando Diaz and Allyson Abarca
The purpose of this paper is to analyze the impact triggered by adopting International Financial Reporting Standards (IFRS) in South America. In order to do this, the case of…
Abstract
Purpose
The purpose of this paper is to analyze the impact triggered by adopting International Financial Reporting Standards (IFRS) in South America. In order to do this, the case of Chile is considered, as it was the first country in the region to adopt IFRS in full form from 2009.
Design/methodology/approach
The authors analyze a sample of 43 Chilean companies. The analysis has two stages. First, the authors analyze if the adoption of IFRS in Chile produced a statistically significant change in the main financial indicators. Then, the authors analyze the market reaction to the announcement of the adoption and implementation of IFRS, by doing an event study.
Findings
The authors found that adopting IFRS in Chile produced a statistically significant change in the main financial indicators, except for in leverage and Price-Earnings Ratios. As for the main accounts of the financial statements, the authors found significant differences, with the exception of inventories and current assets. However, after assessing the market reaction to the announcement of the adoption and implementation of IFRS, by studying the events, the authors report neither reward nor punishment by the market.
Originality/value
This paper pioneers the analysis of the impact triggered by adopting IFRS in South America. The authors results apply not only to Chile but also to a number of South American countries since many of these countries share similar characteristics with Chile.
Propósito
Nosotros analizamos el impacto provocado por la adopción de las Normas Internacionales de Información Financiera (IFRS) en América del Sur. Para ello consideramos a Chile, porque fue el primer país de la región en adoptar IFRS en forma completa a partir de 2009.
Diseño/metodología/enfoque
Nosotros analizamos una muestra de 43 empresas chilenas. Nuestro análisis tiene dos etapas. En primer lugar, analizamos si la adopción de IFRS en Chile produjo un cambio estadísticamente significativo en los principales indicadores financieros. Luego, analizamos la reacción del mercado ante el anuncio de la adopción IFRS, mediante un estudio de eventos.
Resultados
Encontramos que la adopción de IFRS en Chile produjo un cambio estadísticamente significativo en los principales indicadores financieros, a excepción de los ratios de apalancamiento y precio-beneficio. Además, encontramos diferencias significativas en las cuentas de los estados financieros, con la excepción de inventarios y activos circulantes. Por otra parte, después de evaluar la reacción del mercado ante el anuncio de la adopción de IFRS, mediante un estudio de eventos, no encontramos un premio ni un castigo por parte del mercado.
Originalidad/valor
Somos pioneros en analizar el impacto provocado por la adopción de IFRS en América del Sur. Nuestros resultados se aplican no sólo a Chile, sino también a una serie de países de América del Sur, ya que muchos de estos países tienen con Chile similares características.
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Harvey Arbeláez and Reid William Click
This book is an attempt to reflect on what we have learned from financial policies and financial crises in Latin America. The 21 chapters in this volume capture the developments…
Abstract
This book is an attempt to reflect on what we have learned from financial policies and financial crises in Latin America. The 21 chapters in this volume capture the developments in various ways. They cover theoretical contributions, regional empirical studies, and specific inquiries on Argentina, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Peru and Venezuela. The breadth of methodologies implemented suggests that researchers are looking at Latin American financial markets through a variety of lenses. The chapters are divided into 7 parts, including, in Part I, an initial overview. Part II examines the foreign exchange markets in Latin America and their interactions with other markets. Part III discusses dollarization issues in the region. Part IV then takes up the issue of banking in Latin America. Equity and bond markets are considered in Parts V and VI, respectively. Lastly, Part VII considers pension systems in Latin America. Taken as a whole, the 21 chapters seize the excitement of studying Latin America and provide lessons that are applicable around the world.
Mauricio Jara-Bertin and Jean P. Sepulveda
The purpose of this paper is to introduce an earnings management dimension to compute pre-manipulated accounting performance (free of discretionary accruals) to determine whether…
Abstract
Purpose
The purpose of this paper is to introduce an earnings management dimension to compute pre-manipulated accounting performance (free of discretionary accruals) to determine whether family-controlled firms perform better than non-family-controlled firms.
Design/methodology/approach
The authors used Jones’ model (1991) to obtain a pre-manipulated performance measure for a sample of Chilean firms. The authors then regressed the pre-manipulated measures of accounting performance as dependent variables against the family nature of the largest shareholder using the Blundell and Bond generalized method of moments estimator.
Findings
The authors found that the pre-manipulated performance of family-controlled firms is superior to that of non-family-controlled firms. The authors also show that the presence of institutional investors in the firm’s ownership structure has a positive influence on the performance of family companies. The results suggest that earnings management behavior is not sufficient to explain the better performance of family-controlled firms that has been reported in the literature.
Originality/value
The authors provide new evidence regarding the real superior performance of family business. These results provide some degree of confidence to investors since family firms provide good quality earnings measures of financial performance.
Propósito
este estudio pretende determinar si las diferencias en performance entre empresas familiares y no familiares puede ser explicada por la existencia de manipulación contable de los retornos.
Diseño/metodología/enfoque
usamos el método de Jones (1991) para obtener una medida de retorno contable no manipulado para una muestra de empresas chilenas, y luego estimamos una regresión de tipo panel donde la medida de retorno sin manipular es la variable dependiente, la naturaleza familiar o no de la empresa es la variable independiente y una serie de variables de control. Debido a la posible endogeneidad entre retorno y tipo de empresa, usamos la técnica de Blundell y Bond (Método Generalizado de los Momentos).
Findings
encontramos que aun usando retornos libre de manipulación contable, las empresas familiares muestran un mejor desempeño que aquellas no familiares. Además, se observa que la presencia de inversionistas institucionales (AFPs) en la estructura de control de la firma, tiene un efecto positivo sobre el desempeño de las empresas familiares.
Originality/value
se presenta nueva evidencia que ratifica el mejor desempeño financiero de las empresas familiares. Además, mostramos, a diferencia de estudio previos, que la presencia de inversionistas institucionales explica parte del mejor desempeño financiero de dichas empresas. Lo anterior permite a inversionistas estar seguros que el mejor retorno de empresas familiares no se debe a la manipulación contable de las utilidades.
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Steffen P. Raub and Carlos Martin-Rios
The purpose of this paper is to develop and illustrate a comprehensive framework for how hospitality firms can overcome the broad vs narrow dilemma in sustainable management. The…
Abstract
Purpose
The purpose of this paper is to develop and illustrate a comprehensive framework for how hospitality firms can overcome the broad vs narrow dilemma in sustainable management. The authors develop a framework for how to break down the United Nations sustainable development goals (SDGs) into actionable and context-specific subsets and select individual sustainability initiatives with maximum impact.
Design/methodology/approach
The framework focuses on sustainable innovation and management in hospitality and the issue-focused stakeholder perspective. The authors develop a theoretical framework for the selection of impactful sustainability initiatives in the hospitality industry. In addition, the paper provides a broad range of concrete examples for how different stakeholders can act as barriers or catalysts for the implementation of sustainability initiatives.
Findings
The major contribution of this paper is twofold. First, it recognizes that the solutions to the great sustainability challenges ahead involve the active participation of the hospitality industry in establishing partnerships with stakeholders. Second, it offers an ambitious roadmap for hospitality firms to identify local issues specific to sustainable management actions committed to advancing the social, environmental and economic dimensions of sustainability.
Originality/value
The framework has considerable practical implications in that it is centered on helping hospitality firms select an appropriate set of SDGs for their local context and translate them into specific sustainability initiatives that address these goals. The “stakeholder-filter model” methodology is aligned with an approach that is already being used for the development of sustainability initiatives outside the scope of the hospitality industry. As a result, the framework should have substantial practical value for the hospitality industry.
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Ana Condeço-Melhorado, Juan Carlos García-Palomares and Javier Gutiérrez
The COVID-19 pandemic has significantly impacted global tourism, with international travel bearing the burden of restrictions. Domestic tourism has also faced substantial…
Abstract
Purpose
The COVID-19 pandemic has significantly impacted global tourism, with international travel bearing the burden of restrictions. Domestic tourism has also faced substantial challenges. This paper aims to analyse the impact of the COVID-19 pandemic on domestic tourism in Spain, focusing on travel from Madrid (the country’s capital) to other tourist destinations.
Design/methodology/approach
Mobile phone data has been used to study the evolution of tourist trips over the summers of 2019, 2020 and 2021. Regression models are used to explain the number of visitors at destinations.
Findings
The pandemic not only caused a drastic drop in tourist flows but also disrupted the overall pattern of the domestic flow system. Winning destinations were typically areas in proximity to Madrid and less densely populated destinations, while urban destinations were major losers. The preferences of domestic tourists varied notably by income group, but the decrease in trip volumes showed only marginal differences.
Originality/value
The paper demonstrates the potential of mobile phone data analysis to study the uneven impact of external shocks, such as the COVID-19 pandemic, on tourist destinations. This approach considers spatial resilience heterogeneity within regions or provinces. By incorporating income information, the analysis introduces a social dimension to highly detailed spatial data, surpassing traditional studies conducted at the regional or national levels.
研究目的
COVID-19大流行对全球旅游业产生了重大影响,国际旅行受到了限制的影响最为严重。国内旅游也面临着重大挑战。本文分析了COVID-19大流行对西班牙国内旅游的影响,重点关注从马德里(该国首都)到其他旅游目的地的旅行。
研究方法
本研究使用移动电话数据研究了2019年、2020年和2021年夏季旅游出行的演变。采用回归模型解释了各目的地游客数量。
研究发现
大流行不仅导致了旅游流量急剧下降,还扰乱了国内流动系统的总体模式。获胜的目的地通常是马德里附近的地区和人口较稀少的目的地,而城市目的地是主要的输家。国内游客的偏好在收入群体之间有明显差异,但旅行量的减少只显示出边际差异。
研究创新
本文展示了使用移动电话数据分析研究外部冲击(如COVID-19大流行)对旅游目的地的不均匀影响的潜力。该方法考虑了区域或省份内的空间弹性异质性。通过整合收入信息,该分析为高度详细的空间数据引入了社会维度,超越了传统在区域或国家水平进行的研究。