What drives corporate default risk premia? Evidence from the CDS market

This paper studies the evolution of the default risk premia for European firms during the years surrounding the recent credit crisis. We employ the information embedded in Credit Default Swaps (CDS) and Moody’s KMV EDF default probabilities to analyze the common factors driving this risk premia. The risk premium is characterized in several directions: Firstly, we perform a panel data analysis to capture the relationship between CDS spreads and actual default probabilities. Secondly, we employ the intensity framework of Jarrow et al. (2005) in order to measure the theoretical effect of risk premium on expected bond returns. Thirdly, we carry out a dynamic panel data to identify the macroeconomic sources of risk premium. Finally, a vector autoregressive model analyzes which proportion of the co-movement is attributable to financial or macro variables. Our estimations report coefficients for risk premium substantially higher than previously referred for US firms and a time varying behavior. A dominant factor explains around 60% of the common movements in risk premia. Additionally, empirical evidence suggests a public-to-private risk transfer between the sovereign CDS spreads and corporate risk premia.

Reasoning and proof in classroom (9th grade)

This paper is research oriented and pretends to contribute toward giving empirical evidence about how students develop their reasoning and how they achieved to a proof construction in school context. Its main theme is epistemology. It describes the way in which four students in 9th Grade explored a task related with the discovery of symmetry axes in various geometric figures. The proof constructed by students had essentially an explaining function and it was related with the symmetry axes of regular polygons. The teacher’s role in meaning negotiation of the proof and its need is described through illustrative episodes. The paper presents part of a study which purpose is to analyse the nature of mathematical proof in classroom, its role and the nature of the relationship between the construction of a proof and the social interactions. Assuming a social perspective, attention is focussed on the social construction of knowledge and on the structuring resources that shape mathematical experience. The study’s methodology has an interpretative nature. One outcome of the study discussed here is that students develop first a practical understanding with no awareness of the reasons founding mathematical statements and after a theoretical one leading them to a proof elaboration.

Return premiums of sustainable companies listed on the Spanish stock market

The purpose of this paper is to analyze whether companies with a greater commitment to corporate social responsibility (SRI companies) perform differently on the stock market compared to companies that disregard SRI. Over recent years, this relationship has been taken up at both a theoretical and practical level, and has led to extensive scientific research of an empirical nature involving the examination of the relationships existing between the financial and social, environmental and corporate governance performance of a company and the relationship between SRI and investment decisions in the financial market. More specifically, this work provides empirical evidence for the Spanish market as to whether or not belonging to a group of companies the market classes as sustainable results in return premiums that set them apart from companies classed as conventional, and finds no differences in the stock market performance of companies considered to be SRI or conventional.

A model to forecast financial failure, in non financial galician SMES

We are concerned with providing more empirical evidence on forecast failure, developing forecast models, and examining the impact of events such as audit reports. A joint consideration of classic financial ratios and relevant external indicators leads us to build a basic prediction model focused in non-financial Galician SMEs. Explanatory variables are relevant financial indicators from the viewpoint of the financial logic and financial failure theory. The paper explores three mathematical models: discriminant analysis, Logit, and linear multivariate regression. We conclude that, even though they both offer high explanatory and predictive abilities, Logit and MDA models should be used and interpreted jointly.

Estudo exploratório sobre as representações dos pais relativamente à educação em creche

Tendo em conta o aumento do número de estruturas de apoio à primeira infância, particularmente, a expansão da creche, a investigação tem-se debruçado sobre as questões da qualidade. A generalidade dos estudos centra-se na discriminação das dimensões de qualidade e, raramente, a representação dos pais sobre a creche (e sua qualidade) tem sido alvo de estudo. Partindo do pressuposto que a discussão sobre a qualidade da creche deve ser baseada na evidência empírica mas também é uma construção social baseada nos valores e representações dos seus atores, fomos ouvir os pais. Assim, quisemos conhecer: Como escolhiam a creche do seu filho(a)? Qual o seu conceito de qualidade? Que valor atribuem às experiências vividas pelos seus filhos ou filhas na creche? Que representação têm do papel do profissional de educação? Para o efeito, entrevistamos 20 pais sobre as suas Representações acerca da Creche num estudo exploratório e qualitativo. Os entrevistados foram na maioria dos casos mães (18 em 20) de crianças entre os 8 e os 32 meses (M = 21,65; 9 meninas, 11 meninos; 13 primogénitos). De modo geral, o estudo revelou que os pais valorizam a creche como espaço de promoção do desenvolvimento da criança; valorizam a dimensão afetiva do trabalho em creche; as educadoras como profissionais qualificados de educação e desejam uma relação estreita, aberta e respeitosa entre a creche e a família.