Análise do processo de implementação do inovar-auto

In 2008 the United States had suffered from a financial crisis due to the real estate market, this movement affected other countries whose economy depends on the USA. Brazil suffered this crisis, but to avoid a greater turmoil in national territory the government launched some public policies to allow the market to keep working, that way allowing a cash flow more stable. One of these policies is called Inovar-Auto where automakers get benefits in form of taxes redution since some investiments are made in tecnology in Brazil made. This study does a qualitative reaserch to identify how companies are adapting to the Inovar-Auto, its dificulties and the real benefits trough colected data along these years

Investment theory and empirical approach: a discussion on dificulties

In this paper, we analyse several contributions made concerning investment theory in the last decades. The objective of the paper is to discuss the difficulties of the testable theory identified by Chirinko (1983), Fazzari et al. (1988, 2000), Kaplan and Zingales (1997) and Hubbard (1998) to better understand the results of empirical approach. These few authors we worked with provided theoretical arguments and empirical evidences that internal finance variable of the firms may work as an indicator of financial constraint. In several developed countries, financing constraints has been identified as important to understand the investment spending. The principal indicator of financing constraints, that is, cash-flow has been questioned. However, the evidences offer a support to its relevance. We try to justify such evidence based on the few authors listed above, which have been quoted by empirical works. We try to contribute to debate adding aspect of the corporate finance to offer a logical explanation to econometric difficulties.

Aplicação do valor presente ajustado (APV) para avaliação do fluxo de caixa de uma empresa do setor automotivo no sistema inovar auto

The automobile industry shows relevance inside the Brazilian industrial scenario since it contributes with the development of a significant chain of supply, distributors, workshops, publicity agencies and insurance companies in the internal market, aside from being one of the five biggest worldwide market. Thereby, the federal government decreed in Dec, 17th 2012 by Law nº 12.715 the Inovar-Auto Program. As the Adjusted Present Value (APV) is highly recommended, although not yet widespread to public politics of tax reduction, this work intends to apply the APV method on the cash flow analysis of an automobile sector's company, which has recently installed in national territory and wants to rely with governmental incentives proposed by Inovar-Auto Program. The developed work evaluates the company's current cash flow stochastically from mathematical modeling of variables such as price, demand and interest rate through probability distributions with the assist of Crystal Ball software, a Microsoft Excel Add-in, generating different scenarios from Monte Carlo Simulation. As results probabilities situations have been evaluated until the end of the Inovar-Auto's conducted period, in 2017. Beside APV others indicator such as Internal Rate of Return (IRR) and payback period were estimated for the investment project. For APV a sampling distribution with only 0.057% of risk, IRR of 29% were obtained and estimated project payback period was 4.13 years

Estudo da viabilidade de implantação do INOVAR-AUTO utilizando o método do fluxo de caixa sob risco

The automobile industry has a growing importance in the Brazilian economic environment. The industry moves a huge chain that encompasses manufacturers, suppliers of raw materials, auto parts dealers, gas stations, insurance companies, repair shops, tire stores, media companies, advertising agencies, among others. Because of this importance in the current economic environment in Brazil, the federal government, through Law No. 12715 of 17 December 2012 established a Program for the Promotion of Innovation and Densification in the Productive Chain of Motor Vehicles called INOVAR-AUTO in order to support technological development, innovation, safety, environmental protection, energy efficiency and quality of cars, trucks, buses and auto parts. The specific purpose of this study, a simulation for discussion of the viability of the program implementation using the Monte Carlo Simulation combined with the Cash-Flow-at-Risk was performed. To this end, an exploratory and documentary literature on the subject was held as well as a case study in a automobile company of Japanese origin

Using Nebraska's Beginning Farmer Tax Credit Program

Many farm or ranch families that are attempting to bring a son or daughter back into their business experience a strain on the cash flow. Recent changes to Nebraska's Beginning Farmer Tax Credit Program provide an attractive incentive that can be very beneficial to those families. Regulation changes made in 2008 now allow parents to rent agricultural assets to their own children.

Using Nebraska’s Beginning Farmer Tax Credit Program

Many farm or ranch families that are attempting to bring a son or daughter back into their business experience a strain on the cash flow. After all, a business that has been providing enough income for one family to live on, must now not only generate adequate income for the parents living expenses, but also attempt to provide enough income for a second family, the successor. Recent changes to Nebraska’s Beginning Farmer Tax Credit Program provide an attractive incentive that can be very beneficial for family farming/ranching operations that are trying to bring a family member back into their business. Regulation changes made in 2008 now allow parents to rent agricultural assets to their own children.

Aplicação do valor presente ajustado (APV) para avaliação do fluxo de caixa de uma empresa do setor automotivo no sistema inovar auto

The automobile industry shows relevance inside the Brazilian industrial scenario since it contributes with the development of a significant chain of supply, distributors, workshops, publicity agencies and insurance companies in the internal market, aside from being one of the five biggest worldwide market. Thereby, the federal government decreed in Dec, 17th 2012 by Law nº 12.715 the Inovar-Auto Program. As the Adjusted Present Value (APV) is highly recommended, although not yet widespread to public politics of tax reduction, this work intends to apply the APV method on the cash flow analysis of an automobile sector's company, which has recently installed in national territory and wants to rely with governmental incentives proposed by Inovar-Auto Program. The developed work evaluates the company's current cash flow stochastically from mathematical modeling of variables such as price, demand and interest rate through probability distributions with the assist of Crystal Ball software, a Microsoft Excel Add-in, generating different scenarios from Monte Carlo Simulation. As results probabilities situations have been evaluated until the end of the Inovar-Auto's conducted period, in 2017. Beside APV others indicator such as Internal Rate of Return (IRR) and payback period were estimated for the investment project. For APV a sampling distribution with only 0.057% of risk, IRR of 29% were obtained and estimated project payback period was 4.13 years

Estudo da viabilidade de implantação do INOVAR-AUTO utilizando o método do fluxo de caixa sob risco

The automobile industry has a growing importance in the Brazilian economic environment. The industry moves a huge chain that encompasses manufacturers, suppliers of raw materials, auto parts dealers, gas stations, insurance companies, repair shops, tire stores, media companies, advertising agencies, among others. Because of this importance in the current economic environment in Brazil, the federal government, through Law No. 12715 of 17 December 2012 established a Program for the Promotion of Innovation and Densification in the Productive Chain of Motor Vehicles called INOVAR-AUTO in order to support technological development, innovation, safety, environmental protection, energy efficiency and quality of cars, trucks, buses and auto parts. The specific purpose of this study, a simulation for discussion of the viability of the program implementation using the Monte Carlo Simulation combined with the Cash-Flow-at-Risk was performed. To this end, an exploratory and documentary literature on the subject was held as well as a case study in a automobile company of Japanese origin

Flexibility and firm value: the role of inventories

In the present thesis I study the contribution to firm value of inventories management from a risk management perspective. I find a significant contribution of inventories to the value of risk management especially through the operating flexibility channel. In contrast, I do not find evidence supporting the view of inventories a reserve of liquidity. Inventories substitute, albeit not perfectly, derivatives or cash holdings. The substitution between hedging with derivatives and inventory is moderated by the correlation between cash flow and the underlying asset in the derivative contract. Hedge ratios increase with the effectiveness of derivatives. The decision to hedge with cash holdings or inventories is strongly influenced by the degree of complementarity between production factors and by cash flow volatility. In addition, I provide a risk management based explanation of the secular substitution between inventories and cash holdings documented, among others, in Bates et al. (2009), Journal of Finance. In a sample of U.S. firms between 1980 and 2006, I empirically confirm the negative relation between inventories and cash and provide evidence on the poor performance of investment cash flow sensitivities as a measure of financial constraints also in the case of inventories investment. This result can be explained by firms' scarce reliance on inventories as a reserve of liquidity. Finally, as an extension of my study, I contrast with empirical data the theoretical predictions of a model on the integrated management of inventories, trade credit and cash holdings.

Firms, do you know your currency risk exposure? Survey results

This paper surveys the currency risk management practices of Swiss industrial corporations. We find tha industrials do not quantify their currency risk exposure and investigate possible reasons. One possibility is that firms do not think they need to know because they use on-balance-sheet instruments to protect themselves before and after currency rates reach troublesome levels. This is puzzling because a rough estimate of at least cash flow exposure is not a prohibitive task and could be helpful. It is also puzzling that firms use currency derivatives to hedge/insure individual short-term transactions, without apparently trying to estimate aggregate transaction exposure.

The Influence of MGA and PG600 on the Out of Season Reproductive Performance of Ewes

Seasonal lamb supply has been established as one of the major hindrances to the American sheep industry. The ability to consistently lamb ewes on an accelerated production system offers additional benefits of reduced maintenance costs, more uniform cash flow along with reduced labor and facility demands. Previous work at McNay with spring breeding indicated that light priming rams regardless of genetic base improved conception rates, however, MGA feeding postweaning gave inconsistent and sometimes depressed reproductive activity in ewes. This study was conducted to evaluate the use of MGA in late lactation and a single PG600 injection at weaning, either individually or in combination.

Profiting from the Cattle Cycle: Alternative Cow Herd Investment Strategies

Beef cow herd owners can benefit from incorporating price signals into their heifer retention decisions. Whereas a perfect forecast of calf prices over the productive life of the heifer added to the herd would be ideal, such information is not available. However, simple decision rules that incorporate current or recent prices and the knowledge that the cattle cycle likely will repeat itself can help producers improve their investment decisions. A dollar cost averaging strategy that retains the same dollar value of heifers each year and a rolling average value strategy that retains a 10-year average value of heifers out performed strategies that sought to maintain a constant herd size or a constant cash flow.

A Case Study of an Agency's Three Family Preservation Contracts

This article presents a case study of a nonprofit child welfare agency that delivered family preservation services under three different purchase-of-service (POS) contracts. The research specifically focuses on how certain POS contract provisions and reimbursement rates influence the delivery of family preservation services. The three contacts examined differed on criteria, such as reimbursement mechanism, service volume, definition of clientele, and reimbursement rate. The study found that as reimbursement rates decline and as administrative costs increase, the service provider struggled with cash flow, staffing, fundraising, and service provision, among other things. It is concluded that contract-related resources, policies, and procedures impact provider agencies in multiple, significant ways that are critical to the provision of services and the accomplishment of positive client outcomes.

Aplicación de la teoría de opciones reales a la determinación del momento óptimo de cosecha forestal

Se propone el enfoque de opciones reales como herramienta económico-financiera para la toma de decisiones estratégicas en el sector forestal. En términos de instrumentos financieros, consideraremos en particular una opción exótica conocida como barrier option del tipo knock-in. Suponemos que la proyección del precio de venta promedio de los subproductos sigue un proceso estocástico del tipo Geométrico Browniano, mientras que la producción se determina mediante simulación de un turno forestal. La decisión de talar la masa forestal surge de comparar en cada periodo, el valor de flujo de fondos en cada nodo (FFij(t)) de una rejilla binomial con el valor esperado en el próximo año (X t+1 x e−rΔ t) ). En un ejemplo analizado el criterio tradicional del VAN indica que el mayor valor actual se produce en el instante t = 0 (año 10), mientras que el enfoque de opciones reales arroja que el máximo valor de ejercicio se da en el periodo t = 8 (año 18).