Panagiotis T. Artikis and Constantinos T. Artikis
Risk control programs of modern complex organizations make extensive use of stochastic models. The purpose of this paper is to consider a class of stochastic models in severity…
Abstract
Purpose
Risk control programs of modern complex organizations make extensive use of stochastic models. The purpose of this paper is to consider a class of stochastic models in severity and risk duration reduction operations.
Design/methodology/approach
A new stochastic model is formulated which is shown to be of some importance in fundamental risk management operations. The investigation of such a model is based on classical methods of characteristic functions theory.
Findings
A stochastic model having the form of the product of two non‐negative and independent random variables is formulated. A characterization of the distribution of such a model is established. Moreover, applications of the proposed stochastic model in risk control programs of organizations are provided.
Research limitations/implications
The difficulty of evaluating the corresponding distribution function, which extends the practical applicability of the proposed stochastic model still remains.
Originality/value
The formulated stochastic model consists of a strong analytical tool for investigating operations of risk control programs.
Details
Keywords
Constantinos Chalevas and Christos Tzovas
The purpose of this paper is to examine the effect of the mandatory adoption of corporate governance mechanisms on serious firm issues (earnings manipulation, management…
Abstract
Purpose
The purpose of this paper is to examine the effect of the mandatory adoption of corporate governance mechanisms on serious firm issues (earnings manipulation, management effectiveness and firm's financing).
Design/methodology/approach
Cross‐sectional analysis is employed to investigate the association between the corporate governance mechanisms that have been introduced by the L.3016/2002 and earnings manipulation, management effectiveness and firm's financing.
Findings
This study finds that the mandatory corporate governance mechanisms decrease firms' weighted average cost of capital, increase firm's financing and have no impact on firms' effectiveness and earnings manipulation.
Practical implications
This study provides insights regarding the extent to which the mechanisms of corporate governance provided by the L.3016/2002, improve the quality of financial statements prepared by Greek companies. The conclusions of the study are useful for the providers of equity and debt capital, the legislators and the shareholders.
Originality/value
The paper tests, empirically, the effect of the mandatory corporate governance mechanisms on earnings manipulation, management effectiveness and firm's financing.
Details
Keywords
Christie Florou and Constantinos Chalevas
This paper seeks to investigate the accounting factors that affect the value of a firm.
Abstract
Purpose
This paper seeks to investigate the accounting factors that affect the value of a firm.
Design/methodology/approach
Cross‐sectional analysis is employed to investigate the association between critical accounting ratios and stock returns.
Findings
This study finds that the operating performance of a company, its growth opportunities and its capability to generate profits from its sales affect stock returns.
Practical implications
This study provides insights regarding the extent that policies concerning operating, investment and working capital management affect stock returns. The findings of this study can be helpful to managers for selecting and implementing the appropriate business policies. Besides, current shareholders and investors may find the results of this study useful in identifying the drivers of stock values.
Originality/value
The paper tests, empirically, the effect of the key value drivers on stock returns in a developing stock exchange.