Andreas Kyriakos Georgiou, Nicos Koussis and Ioannis Violaris
The purpose of this paper is to review the evidence regarding the link between accounting education and the industry, with particular emphasis on the links between accounting…
Abstract
Purpose
The purpose of this paper is to review the evidence regarding the link between accounting education and the industry, with particular emphasis on the links between accounting education and firm performance. In particular, the paper investigates corporate governance education and its relation to firms’ performance, to improve the content of business‐related programs at Frederick University.
Design/methodology approach
Survey analysis, action research and literature review are used in order to apply the findings of corporate governance research on course programmes at the university.
Findings
The main recommendation of the research is that new modules have to be introduced for both the accounting and finance and business administration degrees so as to meet the increasing need for corporate governance education. This is reflected in the interviews of managers, the student questionnaires, the faculty interviews and the literature review on the subject. These new modules will serve the increasing needs of the Cyprus business world towards better corporate governance practices. These modules should cover the main theoretical aspects concerning corporate governance and the empirical findings concerning corporate governance education and its relation with performance.
Originality/value
The paper provides new insights as to how corporate governance research could be applied to business‐related degree courses at a university in Cyprus.
Details
Keywords
Michel Gendron, Van Son Lai and Issouf Soumaré
The purpose of this paper is to analyse the effects of the maturities of credit‐enhanced debt contracts on the value of an insurer's loan‐guarantee portfolios.
Abstract
Purpose
The purpose of this paper is to analyse the effects of the maturities of credit‐enhanced debt contracts on the value of an insurer's loan‐guarantee portfolios.
Design/methodology/approach
The paper proposes a contingent‐claims model and uses as measure of credit insurance risk, the market value of the private guarantee, which accounts for projects' and guarantor's specific risks, correlations as well as financial leverage.
Findings
The results indicate that in the case of insuring the debts of two parallel projects with different specific risks, one high‐risk and the other low‐risk, the tradeoff between maturities of the guarantees increases with the projects' expected losses, hence the maturity choice decision is crucial for portfolios subject to high expected losses. For a two sequential projects loan‐guarantee portfolio, the paper finds that, regardless of the order of execution of the projects, it is the maturity of the debt supporting the high‐risk project that drives the risk exposure of the portfolio.
Practical implications
Since the management of portfolios of guarantees is of significant importance to many organizations both domestically and internationally, this paper proposes a simple and tractable model to gauge the impact of maturity choices for loan‐guarantee portfolios.
Originality/value
This is a first attempt at modeling multiple maturities in the context of portfolios of vulnerable loan guarantees.