Essays in corporate risk management

This research investigates the factors that lead Latin American non-financial firms to manage risks using derivatives. The main focus is on currency risk management. With this purpose, this thesis is divided into an introduction and two main chapters, which have been written as stand-alone papers. The first paper describes the results of a survey on derivatives usage and risk management responded by the CFOs of 74 Brazilian non-financial firms listed at the São Paulo Stock Exchange (BOVESPA), and the main evidence found is: i) larger firms are more likely to use financial derivatives; ii) foreign exchange risk is the most managed with derivatives; iii) Brazilian managers are more concerned with legal and institutional aspects in using derivatives, such as the taxation and accounting treatment of these instruments, than with issues related to implementing and maintaining a risk management program using derivatives. The second paper studies the determinants of risk management with derivatives in four Latin American countries (Argentina, Brazil, Chile and Mexico). I investigate not only the decision of whether to use financial derivatives or not, but also the magnitude of risk management, measured by the notional value of outstanding derivatives contracts. This is the first study, to the best of my knowledge, to use derivatives holdings information in emerging markets. The use of a multi-country setting allows the analysis of institutional and economic factors, such as foreign currency indebtedness, the high volatility of exchange rates, the instability of political and institutional framework and the development of financial markets, which are issues of second-order importance in developed markets. The main contribution of the second paper is on the understanding of the relationship among currency derivatives usage, foreign debt and the sensitivity of operational earnings to currency fluctuations in Latin American countries. Unlikely previous findings for US firms, my evidence shows that derivatives held by Latin American firms are capable of producing cash flows comparable to financial expenses and investments, showing that derivatives are key instruments in their risk management strategies. It is also the first work to show strong and robust evidence that firms that benefit from local currency devaluation (e.g. exporters) have a natural currency hedge for foreign debt that allows them to bear higher levels of debt in foreign currency. This implies that firms under this revenue-cost structure require lower levels of hedging with derivatives. The findings also provide evidence that large firms are more likely to use derivatives, but the magnitude of derivatives holdings seems to be unrelated to the size of the firm, consistent with findings for US firms.

Mobile banking no Brasil: eventos críticos, trajetória e cenários esperados

O fenômeno de Mobile Banking, emergente no Brasil, poderia ser caracterizado tanto pela magnitude das expectativas associadas a ele quanto por sua complexidade sócio-política e tecnológica. Por um lado, este fenômeno representa uma formidável estratégia para inclusão financeira de uma parcela significativa da população brasileira, bem como um canal potencialmente revolucionário para serviços bancários e financeiros inovadores. Por outro lado, este fenômeno ainda se encontra em uma fase inicial de desenvolvimento no país, contrariando expectativas, e vários eventos críticos são esperados antes de sua possível consolidação. Este trabalho teve por objetivo descrever e explicar os possíveis eventos críticos, trajetória e cenários relacionados ao fenômeno de Mobile Banking & Payments no contexto brasileiro, considerando-o como uma tecnologia-em-prática resultante da interação entre diversos agentes sociais. Com uma abordagem conceitual multi-nível focada em estudos na área de Tecnologia e Sistemas de Informação, orientada por uma postura epistemológica interpretativista e também crítica, buscou-se identificar os grupos sociais mais relevantes relacionados ao fenômeno analisado, avaliando as suas perspectivas e expectativas tecnológicas, ao mesmo tempo em que se buscou antecipar os possíveis processos de negociação e interação entre eles. Como resultado, foram construídos uma trajetória de eventos críticos de incerteza e dois cenários futuros considerados mais prováveis. Por conseguinte, foi possível analisar e endereçar propositivamente algumas questões críticas, com contribuições relevantes tanto para a teoria quanto para a prática

Assessing competition in the banking industry: a multi-product approach

This paper investigates the competitive aspects of multi-product banking operations. Extending Panzar and Rosse (1987)’s model to the case of a multi-product banking firm, we show that the higher the economies of scope in multi-product banking are, the lower Panzar-Rosse’s measure of competition in the banking sector is. To test this empirical implication and determine the impact of multi-production/conglomeration on market power, we use a new dataset on Brazilian banking conglomerates. Consistent with our theoretical prediction, we find that banks offering classic banking products (i.e., loans and credit cards) and other banking products (i.e., brokerage services, insurance and capitalization bonds) have substantially higher market power than banks that offer only classic products. These results suggest a positive bias in the traditional estimates of competition in which multi-output actions are not considered.

The effects of small firm tax incentives on employment levels

This paper aims to evaluate the impact on employment growth of a tax incentive program targeting Brazilian manufacturing small businesses (SIMPLES). This evaluation is conducted for two distinct periods: for the year 1997, when the program was first implemented, and for the year 1999, when the eligibility rule was modified to allow the eligibility of a broader group of firms. The evaluation takes into account two distinct channels through which the charted effects operate. The first is the employment variation in the firms that became eligible for the incentives, and the second is the change in the survival probability experienced by the same group of firms. Moreover, each of these channels can be activated either by the tax reduction dimension of the program or by its dimension of red tape simplification. Our results identify positive effects on employment growth for the tax incentive program only in the dimension of red tape simplification and its effects on the 1997 sample.

Supply chain turbulence: the impact of a mid-range event in multi-tier, multi-dimension supply chains

Nota: A autora agradece à Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP) pela concessão de bolsa de estudos para o desenvolvimento deste projeto de pesquisa.

M-PESA mobile money: a case study in Blue ocean strategy

The recent and widespread availability of affordable mobile phone technology in developing countries has paved the way for the development of a number of mobile money and electronic remittance services. One of the most successful of these services is Safaricom’s M-PESA program, launched in the East African nation of Kenya in March 2007. Since then, the program has successfully enrolled over 15.2 million users, transferred more than US$1.4 trillion in electronic funds, and contributed significantly to poverty alleviation and financial inclusion efforts in Kenya. M-Pesa is a mobile phone based money transfer system in Kenya which grew at a blistering pace following its inception in 2007. This case study will analyze the critical factors that make M-PESA such a unique success in Kenya specifically.

Coordenação e governança no Programa Territórios da Cidadania: uma análise multi-level a partir do Vale do Ribeira-SP

Poverty in Brazil has been gradually reduced. Among the main reasons, there are public policies for universalization of rights. On the other hand, the municipalities' Human Development Index indicates scenarios of growing inequality. In other words, some regions, basically of rural character, were left behind in that process of development. In 2008, the “Territórios da Cidadania” (Territories of Citizenship) Program was launched by the federal government, under high expectations. It was proposed to develop those regions and to prioritize the arrival of ongoing federal public policies where they were most demanded. The program has shown an innovative arrangement which included dozens of ministries and other federal agencies, state governments, municipalities and collegialities to the palliative management and control of the territory. In this structure, both new and existing jurisdictions came to support the program coordination. This arrangement was classified as an example of multi-level governance, whose theory has been an efficient instrument to understand the intra- and intergovernmental relations under which the program took place. The program lasted only three years. In Vale do Ribeira Territory – SP, few community leaderships acknowledge it, although not having further information about its actions and effects. Against this background, the approach of this research aims to study the program coordination and governance structure (from Vale Territory, considered as the most local level, until the federal government), based on the hypothesis that, beyond the local contingencies in Vale do Ribeira, the layout and implementation of the Territories of Citizenship Program as they were formulated possess fundamental structural issues that hinder its goals of reducing poverty and inequality through promoting the development of the territory. Complementing the research, its specific goal was to raise the program layout and background in order to understand how the relations, predicted or not in its structure, were formulated and how they were developed, with special attention to Vale do Ribeira-SP. Generally speaking, it was concluded that the coordination and governance arrangement of the Territories of Citizenship Program failed for not having developed qualified solutions to deal with the challenges of the federalist Brazilian structure, party politics, sectorized public actions, or even the territory contingencies and specificities. The complexity of the program, the poverty problem proposed to be faced, and the territorial strategy of development charged a high cost of coordination, which was not accomplished by the proposal of centralization in the federal government with internal decentralization of the coordination. As the presidency changed in 2011, the program could not present results that were able to justify the arguments for its continuation, therefore it was paralyzed, lost its priority status, and the resources previously invested were redirected.

Pose estimation of a humanoid robot using images from a mobile external camera

NOGUEIRA, Marcelo B. ; MEDEIROS, Adelardo A. D. ; ALSINA, Pablo J. Pose Estimation of a Humanoid Robot Using Images from an Mobile Extern Camera. In: IFAC WORKSHOP ON MULTIVEHICLE SYSTEMS, 2006, Salvador, BA. Anais... Salvador: MVS 2006, 2006.

Breeding value accuracy estimates for growth traits using random regression and multi-trait models in Nelore cattle

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

ANN statistical image recognition method for computer vision in agricultural mobile robot navigation

The main application area in this project, is to deploy image processing and segmentation techniques in computer vision through an omnidirectional vision system to agricultural mobile robots (AMR) used for trajectory navigation problems, as well as localization matters. Thereby, computational methods based on the JSEG algorithm were used to provide the classification and the characterization of such problems, together with Artificial Neural Networks (ANN) for image recognition. Hence, it was possible to run simulations and carry out analyses of the performance of JSEG image segmentation technique through Matlab/Octave computational platforms, along with the application of customized Back-propagation Multilayer Perceptron (MLP) algorithm and statistical methods as structured heuristics methods in a Simulink environment. Having the aforementioned procedures been done, it was practicable to classify and also characterize the HSV space color segments, not to mention allow the recognition of segmented images in which reasonably accurate results were obtained. © 2010 IEEE.

Novel wireless-communicating textiles made from multi-material and minimally-invasive fibers

The ability to integrate multiple materials into miniaturized fiber structures enables the realization of novel biomedical textile devices with higher-level functionalities and minimally-invasive attributes. In this work, we present novel textile fabrics integrating unobtrusive multi-material fibers that communicate through 2.4 GHz wireless networks with excellent signal quality. The conductor elements of the textiles are embedded within the fibers themselves, providing electrical and chemical shielding against the environment, while preserving the mechanical and cosmetic properties of the garments. These multi-material fibers combine insulating and conducting materials into a well-defined geometry, and represent a cost-effective and minimally-invasive approach to sensor fabrics and bio-sensing textiles connected in real time to mobile communications infrastructures, suitable for a variety of health and life science applications.

Mobile vector soliton in a spin-orbit coupled spin-1 condensate

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Barriers related to non-adherence in a mammography breast-screening program during the implementation period in the interior of São Paulo State, Brazil

Mammography is the best exam for early diagnosis of breast cancer. Developing countries frequently have a low income of mammography and absence of organized screening. The knowledge of vulnerable population and strategies to increase adherence are important to improve the implementation of an organized breast-screening program. A mammography regional-screening program was implemented in a place around 54.238 women, aged 40-69 years old. It was proposed to perform biannual mammography free of cost for the women. We analyze the first 2 years of the implementation of the project. Mammography was realized in 17.964 women. 42.1% of the women hadn't done de mammography in their lives and these women were principally from low socio-economic status (OR=2.99), low education (OR=3.00). The best strategies to include these women were mobile unit (OR=1.43) and Family Health Program (OR=1.79). The incidence of early breast tumors before the project was 14.5%, a fact that changed to 43.2% in this phase. Multivariate analysis showed that the association of illiterate and the mobile unit achieve more women who had not performed mammography in their lives. The strategies to increase adherence to mammography must be multiple and a large organization is necessary to overpass the barriers related to system health and education.

Wildlife Master Volunteers: A Multi-County Approach to Resolving Human-Wildlife Conflicts

The Wildlife Master (WM) Program in Colorado was modeled after the highly successful Master Gardener volunteer program. In 10 highly populated suburban counties with large rural areas surrounding the Denver Metro Area, Colorado State University (CSU) Cooperative Extension Natural Resources agents train, supervise and manage these volunteers in the identification, referral, and resolution of wildlife damage issues. High quality, research-based training is provided by university faculty and other professionals in public health, animal damage control, wildlife management and animal behavior. Inquiries are responded to mainly via telephone. Calls by concerned residents are forwarded to WMs who provide general information about human-wildlife conflicts and possible ways to resolve complaints. Each volunteer serves a minimum of 14 days on phone duty annually, calling in from a remote location to a voice mail system from which phone messages can be conveniently retrieved. Response time per call is generally less than 24 hours. During 2004, more than 2,000 phone calls, e-mail messages and walk-in requests for assistance were fielded by 100 cooperative extension WMs. Calls fielded by volunteers in one county increased five-fold during the past five years, from 100 calls to over 500 calls annually. Valued at the rate of approximately $18.00 per volunteer hour, the leveraged value of each WM was about $450 in 2005, based on 25 hours of service and training. The estimated value of the program to Colorado in 2004 was over $45,000 of in-kind service, or about one full-time equivalent faculty member. This paper describes components of Colorado’s WM Program, with guides to the set-up of similar programs in other states.