The role of deposit insurance and bank’s asset size in the 2008 financial crisis

In this paper we analyze the role of deposit insurance in providing the market with liquidity in times of financial turmoil. To do so, we look at the variation in insured and uninsured deposits between 2005Q3 and 2011Q3, controlling for liquidity, solvency and capital adequacy indicators, and find evidence that deposit insurance does provide some confidence in keeping funds in banks in times of turmoil. Additionally we follow an event study methodology to assess the impact of deposit insurance oriented policies on bank holding companies stock market returns, and find a TBTF effect.

Prevalência do consumo de drogas ilícitas nas Forças Armadas estudo epidemiológico num dos ramos

RESUMO: Desde 1976 que as Forças Armadas desenvolvem acções de prevenção do consumo de drogas e álcool. Na década de 80 foi criada capacidade laboratorial e deu-se início a um programa de rastreios toxicológicos. No quinquénio 2001 a 2005, as proporções de resultados positivos, associando todos os tipos de rastreio, variaram entre 3,7% e 1,5%. De Outubro de 2006 a Julho de 2007 realizou-se um estudo analítico transversal, para estimar a prevalência do consumo de drogas (canabinóides, opiáceos, cocaína e anfetaminas) num dos Ramos das Forças Armadas, com base nos despistes realizados pelo seu laboratório. Foi utilizada uma amostra aleatória simples de 1039 militares, profissionais (QP) e contratados (RC), no activo e de ambos os sexos. Desde a nomeação dos militares a rastrear, passando pela cadeia de custódia das amostras até à obtenção do resultado foi utilizado apoio informático específico. O processo de pesquisa utilizou duas técnicas de triagem por imunoensaio e tecnologia de confirmação por GC/MS, de acordo com as recomendações europeias, permitindo estabelecer uma metodologia standard para organizações e empresas. A prevalência estimada, de consumidores de droga, foi de 3,8/1.000, para um erro de 0,37%. O número de casos registado (4) não permitiu a utilização de testes estatísticos que conduzissem à identificação de características determinantes da positividade, mas não deixou de revelar aspectos inesperados. A observação de séries de casos e a realização regular de estudos epidemiológicos, que ajudem a redefinir grupos alvo e a perceber a dimensão, as determinantes e as consequências do consumo de drogas é sugerida, em conclusão.--------------------------------------- RÉSUMÉ: Depuis 1976, les Forces Armées mettent au point des mesures visant à prévenir la consommation de drogues et d'alcool. En 1980, fut créé capacité laboratoriel et ont ensuite commencé un programme de dépistage toxicologique. Au cours des cinq années allant de 2001 à 2005, les proportions de consommateurs, impliquant tous les types de dépistage, allaient de 3,7% à 1,5 %. D'octobre 2006 à juillet 2007, une étude analytique transversale a été organisée pour évaluer la prévalence de l’usage de drogues (cannabis, opiacés, cocaïne et amphétamines) dans une branche de les Forces Armées, basée sur les dépistages faites par un laboratoire militaire, à l'aide d'un échantillon aléatoire de 1039 militaires, professionnels (QP) et sous contract (RC), à l’actif et des deux sexes. Tout au long du procès, de la nomination des donneurs, en passant par la chaine de garde des échantillons, jusqu’à obtention du résultat, il fut employé un appui informatique sécurisé. Le processus de recherche employa deux techniques de tri par imunoessay et la technologie de confirmation GC/MS, selon les recommandations européennes, permettant d'établir une méthodologie standard pour les organisations et les entreprises. La prévalence estimée fut de 3,8/1.000 pour une marge d’erreur de 0,37%. Le nombre de cas enregistrés (4) n'autorise pas l'utilisation de testes statistiques de menant à l'identification de caractéristiques déterminant de la positivité, mais il permet à révéler des aspects inattendus. L'observation de séries de cas et la tenue régulière d’études épidémiologiques, qui contribuent à redéfinir les groupes cibles et de comprendre l'ampleur, les déterminants et les conséquences de l'usage de drogues, est suggéré, en fin de compte.--------------------------------------- ABSTRACT: Since 1976, the Armed Forces, have been developing measures to prevent the use of drugs and alcohol. In 1980, was created laboratory facility which then started a program of toxicological screenings. In the five years running from 2001 to 2005, the proportions of consumers, involving all types of screening, ranged from 3,7% to 1,5%. From October 2006 to July 2007, a cross-sectional study was held to estimate the prevalence of drug use (cannabinoids, opiates, cocaine and amphetamines) in one branch of the Portuguese Armed Forces, based on laboratory screenings, using a random sample of 1039 military, professional (QP) and enlisted (RC), active-duty and of both sexes. Specific computer support was used all the way, from the appointment, including the chain of custody of samples, to the obtaining of the result. The process of search used two techniques for sorting by immunoassay and confirmation technology GC/MS, according to European recommendations, allowing to establish a standard methodology for organizations and companies. The estimated prevalence of drug users was 3.8/1.000 for a 0.37% error (95% confidence interval). The number of cases registered (4) does not permit use of statistical testing leading to the identification of characteristics weighing in the establishing to extrapolate for the population, but it allows revealing unexpected aspects. The observation of series of cases and the regular holding of epidemiological studies, which help redefine target groups and to understand the extent, the determinants and consequences of drug use, is suggested, in conclusion.

How bank business models relate with risk?: The case of Portugal in times of financial crisis

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics

How differently do our non-large companies listed on the Portuguese Stock Exchange perform?

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

Positive solutions to find a job: Cultural mismatches between companies and employees

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

How do companies use social media?

NSBE-UNL

PCV Holding: Who’s next? - Planning the Succession

This paper is a case study on a family business – PCV Holding – established in Mozambique. Having survived three generations and experiencing one of the most intense periods of growth, a tough issue emerges which is capable of compromising the future of the business: The Succession -How to transfer the management and ownership to the next generation while ensuring a fair process. Through several meetings with the board members and owners, I had the opportunity to understand the business and the family history which allowed me to study it taking into consideration family business’s subjects.

Earnings overseas and cash holdings

I investigate the impact of foreign pre-tax income on the total amount of cash held by companies and on the amount of cash that is held in companies’ foreign subsidiaries. I also investigate the impact of the existence and amount of cash held on companies’ foreign subsidiaries in the composition of cash holdings in terms of risk and liquidity. Using a sample of 100 largest U.S. non-financial and non-utilities companies I find that companies with higher earnings overseas present higher cash reserves and invest a higher fraction of their cash in risky assets. My evidence suggests that companies have a different optimization strategy for cash overseas, in which precautionary motives are not the main driver for holding cash.

Graph usage in financial reports: Evidence from Portuguese listed companies

When assessing investment options, investors focus on the graphs of annual reports, despite lack of auditing. If poorly constructed, graphs distort perceptions and lead to inaccurate decisions. This study examines graph usage in all the companies listed on Euronext Lisbon in 2013. The findings suggest that graphs are common in the annual reports of Portuguese companies and that, while there is no evidence of Selectivity Distortion, both Measurement and Orientation Distortions are pervasive. The study recommends the auditing of financial graphs, and urges preparers and users of annual reports to be wary of the possibility of graph distortion.

Born global companies: A case study about the internationalization behaviours of Portuguese companies

Portuguese Born Global Companies have been performing an important role in the Portuguese market, mainly due to their innovative ideas and the positive contribution to exportations. This study focuses on the international strategies of four of these companies, comparing them with four international Non-Born Global Companies, in qualitative analysis. It will be possible to see a preference by the Non-Born Global Companies over proximate cultural countries. By following opportunities instead of markets, Portuguese Born Global Companies excel at internationalization growth. The purpose of this study is to help managers of small, innovative companies understand the internationalization strategies in Portugal.

Comprehensive income: evidence from Portuguese listed companies on reporting choices and value relevance

This work project aims at analysing choices related to Comprehensive income (CI) of Portuguese listed firms and understanding the reasons behind them. Additionally, it studies the relevance of CI versus Net Income (NI). It was found that firm’s size and volume of Other comprehensive income (OCI) are positively related with the choice for separate statements while smaller firms with positive NI and negative OCI tend to disclose less information about taxes. The value relevance of CI proved to be superior to that of NI but OCI seems to have no incremental value relevance.

Is there a potential win for companies when women enrich their role of workers through the enrichement of their family lives?

While the work-family relation conflict literature has received much attention, there is a lack of empirical evidence towards work-family positive relation. Furthermore, there is a lack of understanding and recognition of possible benefits obtained by skills’ development during maternity. This study concludes that a family-work relation has a positive outcome, namely the enrichment. It was evident that there is a potential win when women enrich their role as workers through the enrichment of their family lives. Moreover, this enrichment is perceived by mothers along the development of their children; each age and phase have different challenges and enable different skills’ improvement. The findings support the notion that not all work and family experiences are negative and experiences from the work and home can improve outcomes both inside and outside the workplace.

Basel III new capital requirements, impacts and bank behavior

For some years, researchers could not find a clear effect of capital adequacy on the risk profile of banks, as shareholders could increase the riskiness of the assets (qualitative effect), crowding-out the effect of reduced leverage (volume effect). Some shareholders might have the will to increase the riskiness of the assets, but they may lack the power to do so. Considering only ”powerful” shareholders, definitive conclusions were drawn but with constant ownership profile. In this paper I investigate whether there is a significant change in the type of shareholders in response to regulatory capital shocks and, if so, will the banking system be in the hands of more “desired” shareholders. I find that ownership profile responds to a regulatory shock, changing the risk appetite of the ruling power at the bank. I find more banks and the government in the ownership of undercapitalised banks and much less institutional shareholders and free float. I claim that these new shareholders may not the desired ones, given the objective of the regulatory change, as they are associated with a preference for more leverage. One possible explanation for this crowding-out effect is that regulators are trying to contain idiosyncratic risk (more linked to the riskiness of the assets) with a rule that contains systematic risk (capital adequacy). This has a distorting effect on ownership. Another insight can be drawn from the tests: supervisors should be aware of significant ownership movements that cause the crowding-out.

Rating corporate groups a modelling experience

This paper aims to provide a model that allows BPI to measure the credit risk, through its rating scale, of the subsidiaries included in the corporate groups who are their clients. This model should be simple enough to be applied in practice, accurate, and must give consistent results in comparison to what have been the ratings given by the bank. The model proposed includes operational, strategic, and financial factors and ends up giving one of three results: no support, partial support, or full support from the holding to the subsidiary, and each of them translates in adjustments in each subsidiary’s credit rating. As it would be expectable, most of the subsidiaries should have the same credit rating of its parent company.

The impact of the Board of Director's composition on companies performance

The impact of the Board of Directors’ composition on companies’ performance This paper studies the impact that the board of directors’ composition has on companies’ performance in the Italian market. The research has been carried out by using a sample of 10 Italian companies, across different market sectors, over a period of 10 years (2005-2014). The characteristics of the BoD taken into consideration are the following: board size, board diversity (% of female directors), board independence and CEO duality. Results from the sample data collected concluded that these factors have a statistically significant impact on the performance of the companies that have been analysed.