U.S. subprime financial crisis contagion on BRIC and European Union stock markets

ABSTRACTThe Copula Theory was used to analyze contagion among the BRIC (Brazil, Russia, India and China) and European Union stock markets with the U.S. Equity Market. The market indexes used for the period between January 01, 2005 and February 27, 2010 are: MXBRIC (BRIC), MXEU (European Union) and MXUS (United States). This article evaluated the adequacy of the main copulas found in the financial literature using log-likelihood, Akaike information and Bayesian information criteria. This article provides a groundbreaking study in the area of contagion due to the use of conditional copulas, allowing to calculate the correlation increase between indexes with non-parametric approach. The conditional Symmetrized Joe-Clayton copula was the one that fitted better to the considered pairs of returns. Results indicate evidence of contagion effect in both markets, European Union and BRIC members, with a 5% significance level. Furthermore, there is also evidence that the contagion of U.S. financial crisis was more pronounced in the European Union than in the BRIC markets, with a 5% significance level. Therefore, stock portfolios formed by equities from the BRIC countries were able to offer greater protection during the subprime crisis. The results are aligned with recent papers that present an increase in correlation between stock markets, especially in bear markets.

Atratividade de adultos de Chrysoperla externa (Hagen, 1861) aos compostos voláteis de coentro, endro e erva-doce (Apiaceae) em condições de laboratório

Espécies de Apiaceae dispõem de óleos essenciais, nos quais podem ocorrer compostos voláteis, que funcionam como sinais para atração e manutenção de inimigos naturais nas áreas cultivadas. Com base nestas características, este trabalho objetivou avaliar a atratividade aos adultos do predador Chrysoperla externa. Foram utilizados folhas e caules de coentro, endro e erva-doce, coletados aos 30 e 60 dias após a semeadura. As plantas foram dispostas em olfatômetro de quatro vias (formato de "X") disponibilizando-se os odores para machos e fêmeas, virgens e acasalados, em testes de livre escolha. Ao serem liberados individualmente no interior do olfatômetro, foram cronometrados cinco minutos e contabilizado o tempo total de permanência do inseto em cada braço do aparelho. Os dados foram analisados pelo teste c², com frequência esperada de 25%. Estudou-se o rendimento de óleo essencial das três espécies de plantas, 30 e 60 dias após a semeadura, utilizando-se do método de hidrodestilação. A composição química dos óleos foi determinada por cromatografia gasosa acoplada a espectrômetro de massas. Verificou-se que adultos virgens têm preferência por plantas de coentro, enquanto os acasalados preferem plantas de erva-doce, ambas coletadas aos 30 dias. Plantas com 60 dias não proporcionaram resposta atrativa aos adultos de C. externa. O rendimento de óleo tendeu a aumentar com o desenvolvimento fenológico da planta. A composição química do óleo de coentro revelou, como componentes majoritários, o (2E)-decenal e decanal e, para erva-doce, a maior concentração foi de (E)-anetol.

Financial strategies for minimizing corporate income taxes under Brazil's new global tax system

In 1996, Brazil adopted a worldwide income tax system for corporations. This system represents a fundamental change in how the Brazílian government treats multinational transactions and the tax minimizing strategies relevant to businesses. In this article, we describe the conceptual basis for worldwide tax systems and the problem of double taxation that they create. Responses to double taxation by both the governments and the priva te sector are considered. Namely, the imperfect mechanisms developed by Brazil and other countries for mitigating double taxation are analyzed. We ultimately focus on the strategies that companies utilize in order not only to avoid double texetion, but also to take advantage of tax havens.

International transfer pricing restrictions: impact on corporate financial policy

Transfer pricing is a pervasive issue that presents significant tax savings potential concerning international enterprises. The authors discuss company incentives to manage transfer prices in an article appearing in the preceding issue of this journal. In response to these incentives, governments have increasingly enacted and enforced domestic restrictions on transfer prices. In this article, contemporary norms restricting transfer pricing are analyzed. The OEGO and US pricing standards are assessed and Brazil's recent application of these standards is considered. Transfer pricing methods are described and evidence of their use is presented. We conclude by describing an intercompany transfer pricing policy intended to facilitate internaI financiaI management and minimize externaI tax threats.

ANTECEDENTS AND CONSEQUENCES OF HOUSEHOLD FINANCIAL MANAGEMENT IN BRAZILIAN LOWER-MIDDLE-CLASS

Through two complementary and exploratory studies – one qualitative and one quantitative – this research aims to understand the ways in which lower-middle-class families in Brazil manage their household finances. The study proposes an integrated framework that brings together various previously disconnected theoretical fragments. Based on a survey with a sample of 165 lower-middle-class female consumers of a retail company in São Paulo, we explored and tested, via a quantitative study, how antecedents such as personal characteristics affect the financial management process, as well as its consequences, either negatively as defaults or positively as savings. The model calibration and analysis were derived from a series of regression analyses. The results revealed the mediator role that financial management plays in the relationship between personal characteristics and defaults and savings. Compared to previous studies with consumers of more affluent countries, we identified peculiar findings among Brazilian lower-middle-class consumers: inadequate attention to control, weak or no focus on short- or long-range planning, widespread absence of budget surplus, and influence of critical events on episodes of default.

CROSS-COUNTRY STUDY ON THE DETERMINANTS OF BANK FINANCIAL DISTRESS

ABSTRACTBank failures affect owners, employees, and customers, possibly causing large-scale economic distress. Thus, banks must evaluate operational risks and develop early warning systems. This study investigates bank failures in the Organization for Economic Co-operation and Development, the North America Free Trade Area (NAFTA), the Association of Southeast Asian Nations, the European Union, newly industrialized countries, the G20, and the G8. We use financial ratios to analyze and explore the appropriateness of prediction models. Results show that capital ratios, interest income compared to interest expenses, non-interest income compared to non-interest expenses, return on equity, and provisions for loan losses have significantly negative correlations with bank failure. However, loan ratios, non-performing loans, and fixed assets all have significantly positive correlations with bank failure. In addition, the accuracy of the logistic model for banks from NAFTA countries provides the best prediction accuracy regarding bank failure.

CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE: THE SPANISH CASE

ABSTRACT The enormous interest aroused by corporate social responsibility both in the academic and the business worlds forms the background for this study. Its objective is to analyze the relationship between corporate social responsibility and financial performance in view of the debate in the literature on the subject. The study focuses on a sample of Spanish companies taken from the IBEX 35 stock market index, using panel data methodology, which offers advantages in comparison to methodologies used in other studies. We analyzed the period from 2003 to 2010. Our findings suggest that there is no obvious relationship between corporate social responsibility and financial results, at least in the case of Spain.

Stressful working conditions and poor self-rated health among financial services employees

OBJECTIVE: To assess the association between exposure to adverse psychosocial working conditions and poor self-rated health among bank employees. METHODS: A cross-sectional study including a sample of 2,054 employees of a government bank was conducted in 2008. Self-rated health was assessed by a single question: "In general, would you say your health is (...)." Exposure to adverse psychosocial working conditions was evaluated by the effort-reward imbalance model and the demand-control model. Information on other independent variables was obtained through a self-administered semi-structured questionnaire. A multiple logistic regression analysis was performed and odds ratio calculated to assess independent associations between adverse psychosocial working conditions and poor self-rated health. RESULTS: The overall prevalence of poor self-rated health was 9%, with no significant gender difference. Exposure to high demand and low control environment at work was associated with poor self-rated health. Employees with high effort-reward imbalance and overcommitment also reported poor self-rated health, with a dose-response relationship. Social support at work was inversely related to poor self-rated health, with a dose-response relationship. CONCLUSIONS: Exposure to adverse psychosocial work factors assessed based on the effort-reward imbalance model and the demand-control model is independently associated with poor self-rated health among the workers studied.

Peroxidase antibody test for mucocutaneous leishmaniasis serology performance indexes and comparison with a fluorescent antibody test: Comparação com o desempenho da reação de imunofluorescência

Performance indexes of the peroxidase antibody test were compared to that of the fluorescent antibody test. The peroxidase antibody test had a statistically higher sensitivity and negative predictive value and a higher efficiency than the fluorescent antibody test but its specificity and positive predictive value were within the 95% confidence limits for the values found for the fluorescent antibody test. Such differences did not change when Chagas' disease and visceral leishmaniasis sera were included in index calculations. Statistical analysis showed that the two tests have a substantial degree of agreement but the immunofluorescent test had a specificity index and a positive predictive value equal to 100.0% when Chagas' disease and visceral leishmaniasis sera were not included in the calculations of the performance index; in this instance, a positive test result equals a disclosure of the disease attribute due to the inexistence of false positive results. The enzyme/ protein ratio of the peroxidase conjugate, resulting in heavy or light-labeled conjugates may pose technical problems to its use in serology tests.

Performance indexes of a dot-enzime-linked immunosorbent assay (dot-ELISA) and an ezyme-linked immunosorbent assay (IgG-ELISA) for field surveys of new world leishmaniasis

Diagnostic performance indexes of sensitivity, specificity, positive predictive value and efficiency were determined for dot-ELISA and IgG-ELISA tests in 340 leishmaniasis sera. Sensitivity of the dot-ELISA was significantly lower than IgG-ELISA's; the two tests had indexes of specificity and positive predictive value of the same magnitude. Seventy-eight sera gave a negative dot-ELISA test result and a positive IgG-ELISA test result. When sera were classified according to different criteria as how to interpret this diversity, the kappa statistic did not corroborate the classification indicating that the two tests display a substantial strength of agreement. The results presented indicate that performance indexes accrued in a survey where variables arc well known may be extrapolated to other population studies if the disease presents itself as highly prevalent (due to a selection bias or not) and may be expected to discriminate a disease status among test positives.

ANÁLISE DE CRESCIMENTO DE MUDAS DE JACAREÚBA (Calophyllum angulare A. C. SMITH - GUTTIFERAE) CULTIVADAS EM CONDIÇÕES DE VIVEIRO.

O presente trabalho, conduzido no viveiro da Reserva Florestal Adolfo Ducke, Amazonas, Brasil, teve como objetivo comparar quatro níveis de sombreamento no crescimento de mudas de jacareúba (Calophyllum angulare). Foram utilizados os níveis de sombreamento 30,50 e 70%, obtidos com telas de poliolefinas de cor preta, e o nível 0% a pleno sol. A análise de crescimento foi feita imediatamente após a transferência das mudas para os canteiros e mensalmente durante 5 meses. Foram obtidos os seguintes resultados: a) Os maiores valores de altura; diâmetro do colo-e área foliar foram obtidos nas mudas cultivadas sob 70% de sombreamento aos 150 dias de permanência no viveiro; b)Ocorreu uma tendência de decréscimo nos valores de taxa de crescimento relativo foliar e de razão de área foliar em decorrência do período de permanência das mudas no viveiro; c) A taxa de crescimento relativo foliar não foi influenciada pelos níveis de sombreamento; d) As mudas cultivadas sob 70% apresentaram valores de taxa de crescimento relativo da parte aérea que indicam uma melhor adaptação a essa condição; com relação a taxa de crescimento relativo das raízes, os níveis de sombreamento mais favoráveis foram 0 e 50%; e) O efeito da aclimatação sobre as mudas cultivadas sob 70%, provocou uma diminuição temporária nas taxas de crescimento relativo da parte aérea c crescimento relativo total, entre os períodos de 30 a 60 dias.

Influência do tipo de alimento e da temperatura na evacuação gástrica da piranha caju (Pygocentrus nattereri) em condições experimentais

taxa de evacuação gástrica é uma variável importante para estimar o consumo diário de alimento e portanto a pressão de predação que um piscívoro exerce sobre as presas. Esta taxa pode ser influenciada pela temperatura, tamanho do predador e pelo tipo de alimento. Neste trabalho medimos experimentalmente os efeitos que estas três variáveis exercem sobre a evacuação gástrica de Pygocentrus nattereri, um dos principais piscívoros da Amazônia. Para isso foram utilizadas temperaturas variando de 27° a 31°C e os seguintes itens alimentares: músculo e nadadeira de Semaprochilodus insignis e gafanhoto da espécie Paulinia sp. Estes alimentos compõem a dieta silvestre da piranha. O tamanho da piranha não influenciou na evacuação gástrica. Músculos obtiveram uma taxa de evacuação gástrica de 18,3% h -1, enquanto que nadadeira e gafanhoto obtiveram uma taxa média de 10,7% h -1. O efeito da temperatura foi mais pronunciado quando o item alimentar era músculo do que com nadadeira e insetos.

Estimated Financial Impact of Trypanosoma vivax on the Brazilian Pantanal and Bolivian Lowlands

The financial impact of the first outbreak of Trypanosoma vivax in the Brazilian Pantanal wetland is estimated. Results are extended to include outbreaks in the Bolivian lowlands providing a notion of the potential influence of the disease and an analytical basis. More than 11 million head of cattle, valued at more than US$3 billion are found in the Brazilian Pantanal and Bolivian lowlands. The total estimated cost of the 1995 outbreak of T. vivax is the sum of the present values of mortality, abortion, and productivity losses and treatment costs, or about 4% of total brood cow value on affected ranches. Had the outbreak gone untreated, the estimated losses would have exceeded 17% of total brood cow value.

Analysis of multi-scale systemic risk in Brazil's financial market

This work analyzes whether the relationship between risk and returns predicted by the Capital Asset Pricing Model (CAPM) is valid in the Brazilian stock market. The analysis is based on discrete wavelet decomposition on different time scales. This technique allows to analyze the relationship between different time horizons, since the short-term ones (2 to 4 days) up to the long-term ones (64 to 128 days). The results indicate that there is a negative or null relationship between systemic risk and returns for Brazil from 2004 to 2007. As the average excess return of a market portfolio in relation to a risk-free asset during that period was positive, it would be expected this relationship to be positive. That is, higher systematic risk should result in higher excess returns, which did not occur. Therefore, during that period, appropriate compensation for systemic risk was not observed in the Brazilian market. The scales that proved to be most significant to the risk-return relation were the first three, which corresponded to short-term time horizons. When treating differently, year-by-year, and consequently separating positive and negative premiums, some relevance is found, during some years, in the risk/return relation predicted by the CAPM. However, this pattern did not persist throughout the years. Therefore, there is not any evidence strong enough confirming that the asset pricing follows the model.