Bank Income Diversification and its Impact on Profitability and Risk: Evidence from Nordic Markets

Financial industry has recently encountered many changes in the business environment. Increased regulation together with growing competition is forcing commercial banks to rethink their business models. In order to maintain profitability in the new environment, banks are focusing more into activities that yield noninterest income. This is a shift away from the traditional intermediation function of banks. This study aims to answer the question if the shift from traditional income yielding activities to more innovative noninterest activities is logical in terms of profitability and risk in Nordics. This study also aims to answer the question if diversification within the noninterest income categories has impact on profitability and risk and if there are certain categories of noninterest income that are better than others in terms of profitability and risk in Nordics. Results show that diversification between interest and noninterest activities and increase in the share of noninterest income have a negative impact on the risk adjusted returns and risk profile. Results also show that further diversification within the noninterest income categories has negative impact on risk adjusted profitability and risk while an increase of the share of commission and fee income category of total noninterest income has a positive impact on risk adjusted profitability and risk. Results are logical and in line with previous research (De Young & Roland, 2001; Stiroh, 2004). Results provide useful information to banks and help them better evaluate outcomes of different income diversification strategies.

Margin requirements and volatility : evidence from Canadian stocks

Margin policy is used by regulators for the purpose of inhibiting exceSSIve volatility and stabilizing the stock market in the long run. The effect of this policy on the stock market is widely tested empirically. However, most prior studies are limited in the sense that they investigate the margin requirement for the overall stock market rather than for individual stocks, and the time periods examined are confined to the pre-1974 period as no change in the margin requirement occurred post-1974 in the U.S. This thesis intends to address the above limitations by providing a direct examination of the effect of margin requirement on return, volume, and volatility of individual companies and by using more recent data in the Canadian stock market. Using the methodologies of variance ratio test and event study with conditional volatility (EGARCH) model, we find no convincing evidence that change in margin requirement affects subsequent stock return volatility. We also find similar results for returns and trading volume. These empirical findings lead us to conclude that the use of margin policy by regulators fails to achieve the goal of inhibiting speculating activities and stabilizing volatility.

Letter from Lt.Col. Chewett to Ensign Kuck- 6 Sept 1814

Transcript (spelling and grammar retained): York 6th Sepber [September] 1814 Sir I will thank your for the Rolls and Returns of the Pickering Company due on the 1st instance that I may Make up mine to be returned to the Adjutant General – I have the honor to be Sir Your Most Obed [Obedient] W Chewett Lt Col 3rd Reg Yk [York] Militia

Letter from J.E.A. Masters to Josiah Masters, November 11, 1812

Transcription: Encampment Plattsburgh My Dear Uncle Nov. 11th 1812 We are making every possible preparation to invade Canada. I have no doubt but we march in six days. From the best information I can get it is not contemplated to attack the Isle aux Noix – We shall take into the field 2500 infantry between 3 & 4 hundred cavalry 25 light artillery & 150 artillerists; of the malitia I have no accurate knowledge there is more than 1000 of them, the number of regular troops is mentioned you may rely on as being nearly correct I cannot state to a man as I have not had an opportunity of being the consolidated returns of the different corps. It is said that a [corps formed?] of volunteers are to join us from Vermont. I think it doubtful I believe that we shall have no great difficulty in going to Montreal as to the ultimate policy of the [act it is?] not my duty to judge. Confidential our troops are raw particularly in loading and firing they are much deficient. The 6th and 15th will be able to act with some considerable ... of precision and accuracy the remaining infantry—badly disciplined. Should any thing [occur?] with me my fate be unfortunate the [little?] property willed me by my grandfather will secure you the amount I owe you. General Dearborn I understand is at Burlington on his way here. Some of the prisoners that were taken at Queenstown have [arrived?] at Montreal probably. [Ensign Rich?] is among them. Several officers here became acquainted with him soon after he received his [two illegible words] & speak highly of him. [Always?] affectionately yours J. E. A. Masters P.S. I shall write you again before we march excuse this [scrawl?] my hand are too cold to write a fair hand we shall have here near [400?] sick that are not able to march J. E. A. Masters The [Hon.?] Josiah Masters [Schaghticoke?] N.Y. N. B. Nov. 13th We have orders to be prepared to march on the 15th at 12 oclock. Our baggage will be contained as much as possible. The officers carry no baggage except what they carry in their knapsacks. I am in fine health and am able [Hand?] most any [illegible word] My love to all affectionately Your nephew J. E. A. Masters

Teachers Without Borders: Exploring Experiences, Transitions, and Identities of Refugee Women Teachers from Yugoslavia

Prior to September 11 2011, Canada was recognized as a leading advocate of international refugee protection and the third largest settlement country in the world. University educated refugees were admitted to the country in part on the basis of their education, but once in Canada their credentials were often ignored. The purpose of this study was to explore, through a transnational feminist lens, immigrant and settlement experiences of refugee female teachers from Yugoslavia who immigrated to Canada during and after the Yugoslav wars; to document the ways in which socially constructed categories such as gender, race, and refugee status have influenced their post-exile experiences and identities; and to identify the government's role in creating conditions where the women were either able or unable to continue in their profession. In this study, I employed both a transnational feminist methodology and narrative inquiry. The analysis process included an emphasis on the storying stories model, poetic transcription, and concentric storying. The women’s voices are represented in various forms throughout the document including individual and collective narratives. Each narrative contributed to a detailed picture of immigration and settlement processes as women spoke of continuing their education, knowing or learning the official language, and contributing to Canadian society and the economy. The findings challenge the image of a victimized and submissive refugee woman, and bring to the centre of discourse the image of the refugee woman as a skilled professional who often remains un- or underemployed in her new country. The dissertation makes an important contribution to an underdeveloped area in the research literature, and has the potential to inform immigration, settlement, and teacher education policies and practices in Canada and elsewhere.

Letter to S.D. Woodruff from William Turner, collector at Port Maitland

Letter to S.D. Woodruff from William Turner, collector at Port Maitland. He is submitting the returns for the years 1859-1861.This is accompanied by an envelope, Jan. 28, 1862.

Letter to S.D. Woodruff from William Turner, collector at Port Maitland

Letter to S.D. Woodruff from William Turner, collector at Port Maitland. This letter notes the enclosure of the yearly returns of 1857 and 1858, Feb. 5, 1862.

Letter to Henry Nelles from James Ramsay Crooks

Letter to Henry Nelles from James Ramsay Crooks asking when Mr. Nelles will be able to attend to Mr. Nottman’s business. This is dated May 15, 1839. Attached to this letter is a letter to James Ramsay Crooks from Henry Nelles saying that he is sorry, but he will not be able to attend the arbitration hearing between the executors of his father’s will and Mr. Notttman until his son Robert returns (2 pages in total, handwritten), May 15, 1839.

The Shape of the Risk Premium: Evidence from a Semiparametric Garch Model.

We examine the relationship between the risk premium on the S&P 500 index return and its conditional variance. We use the SMEGARCH - Semiparametric-Mean EGARCH - model in which the conditional variance process is EGARCH while the conditional mean is an arbitrary function of the conditional variance. For monthly S&P 500 excess returns, the relationship between the two moments that we uncover is nonlinear and nonmonotonic. Moreover, we find considerable persistence in the conditional variance as well as a leverage effect, as documented by others. Moreover, the shape of these relationships seems to be relatively stable over time.

From "This is my body" to the Church in the twenty-first century: the Last Supper as the decisive moment and criterion of a renewed ecclesiology

Certains symptômes sont les indicateurs incontestés des très graves problèmes que connaît l’Église. S’ils existent aussi dans des confessions et des religions diverses, seuls seront examinés ici ceux qui concernent l’Église catholique. Parmi les plus significatifs figurent un fort déclin dans la participation à des activités religieuses comme les célébrations eucharistiques dominicales, surtout chez les jeunes, une pénurie presque catastrophique de prêtres ordonnés, une perte de prestige et d’influence de l’enseignement dispensé par l’Église. Ces symptômes varient en intensité selon les pays, mais les statistiques indiquent qu’ils se multiplient. Nombre de ces problèmes sont attribuables à l’extrême vélocité de changements qui surviennent partout et à l’apparente inaptitude de l’Église à s’adapter, en raison notamment de son attachement à la pensée néo-scolastique et à la tradition tridentine. Cette fidélité absolue à une tradition vieille de quatre cents ans l’empêche de se faire à un environnement en évolution rapide et radicale. Des changements appropriés s’imposent pratiquement partout dans l’Église. Or, pour que ceux-ci soient efficaces et respectueux de la nature propre de l’Église, la tradition est un guide qui ne suffit pas. S’appuyant sur les termes de l’encyclique Ecclesia de Eucharistia, « le moment décisif où elle (l’Église) a pris forme est certainement celui où a eu lieu l’institution de l’Eucharistie, dans la chambre à l’étage », la thèse présentée suit le plus près possible l’interprétation donnée aux paroles de Jésus, ceci est mon corps, telles qu’elles ont été prononcées la première fois. Selon cette évidence, il est permis d’affirmer que les caractéristiques définitoires de l’Église provenant de ces mots sont agape, unité, service. Tel doit être le principe directeur des changements. C’est sur une telle base que sont décrits les secteurs où les changements s’imposent ainsi que les aspects visés. Ces changements comprennent les points suivants : liturgie, sacrements, catéchèse, mystagogie, théologie, structure, gouvernance de l’Église et ses enseignements, évangélisation. Ces secteurs exigent des efforts sérieux dans la préparation des personnes touchées par ces changements et dans l’attention portée à l’exigence primordiale voulant qu’agape, unité et service soient les principes actifs et évidents régissant l’Église.

Growing Up in Exile : An Ethnography of Somali Youth Raised in Kakuma Refugee Camp, Kenya

La violence chronique qui caractérise la Somalie depuis plus de deux décennies a forcé près de deux millions de personnes à fuir. Cette ethnographie étudie l’expérience de l’asile prolongé de jeunes Somaliens qui ont grandi au camp de Kakuma, au Kenya. Leur expérience est hors du commun, bien qu’un nombre croissant de réfugiés passent de longues années dans des camps pourtant conçus comme temporaires, en vertu de la durée des conflits et de la normalisation de pratiques de mise à l’écart de populations « indésirables ». Nous explorons la perception qu’ont ces jeunes de leur environnement et de quelle façon leur exil structure leur perception du passé et de leur pays d’origine, et de leur futur. Ce faisant, nous considérons à la fois les spécificités du contexte et l’environnement global, afin de comprendre comment l’expérience des gens est façonnée par (et façonne) les dynamiques sociales, politiques, économiques et historiques. Nous observons que le camp est, et demeure, un espace de confinement, indépendamment de sa durée d’existence ; bien que conçu comme un lieu de gestion rationnelle des populations, le camp devient un monde social où se développent de nouvelles pratiques ; les jeunes Somaliens font preuve d’agentivité et interprètent leur expérience de manière à rendre leur quotidien acceptable ; ces derniers expriment une frustration croissante lorsque leurs études sont terminées et qu’ils peinent à s’établir en tant qu’adultes, ce qui exacerbe leur désir de quitter le camp. En effet, même s’il existe depuis plus de 20 ans, le camp demeure un lieu de transition. L’expérience de jeunes Somaliens qui ont grandi dans un camp de réfugiés n’a pas été étudiée auparavant. Nous soutenons que cette expérience est caractérisée par des tensions entre contraintes et opportunités, mobilité et immobilité, isolation et connexion ou victimisation et affirmation du sujet – et des temporalités contradictoires. Cette étude souligne que des notions comme la convivialité ou la pluralité des appartenances développées dans la littérature sur la cohabitation interethnique dans les villes ou sur l’identité des migrants aident à appréhender le réalité du camp. Cette ethnographie montre également que, loin d’être des victimes passives, les réfugiés contribuent à trouver des solutions à leur exil.

Alternatives to linear analysis of energy balance data from lactating dairy cows

The current energy requirements system used in the United Kingdom for lactating dairy cows utilizes key parameters such as metabolizable energy intake (MEI) at maintenance (MEm), the efficiency of utilization of MEI for 1) maintenance, 2) milk production (k(l)), 3) growth (k(g)), and the efficiency of utilization of body stores for milk production (k(t)). Traditionally, these have been determined using linear regression methods to analyze energy balance data from calorimetry experiments. Many studies have highlighted a number of concerns over current energy feeding systems particularly in relation to these key parameters, and the linear models used for analyzing. Therefore, a database containing 652 dairy cow observations was assembled from calorimetry studies in the United Kingdom. Five functions for analyzing energy balance data were considered: straight line, two diminishing returns functions, (the Mitscherlich and the rectangular hyperbola), and two sigmoidal functions (the logistic and the Gompertz). Meta-analysis of the data was conducted to estimate k(g) and k(t). Values of 0.83 to 0.86 and 0.66 to 0.69 were obtained for k(g) and k(t) using all the functions (with standard errors of 0.028 and 0.027), respectively, which were considerably different from previous reports of 0.60 to 0.75 for k(g) and 0.82 to 0.84 for k(t). Using the estimated values of k(g) and k(t), the data were corrected to allow for body tissue changes. Based on the definition of k(l) as the derivative of the ratio of milk energy derived from MEI to MEI directed towards milk production, MEm and k(l) were determined. Meta-analysis of the pooled data showed that the average k(l) ranged from 0.50 to 0.58 and MEm ranged between 0.34 and 0.64 MJ/kg of BW0.75 per day. Although the constrained Mitscherlich fitted the data as good as the straight line, more observations at high energy intakes (above 2.4 MJ/kg of BW0.75 per day) are required to determine conclusively whether milk energy is related to MEI linearly or not.

An analysis of commercial real estate returns: is there a smoothing puzzle?

In this paper we investigate the commonly used autoregressive filter method of adjusting appraisal-based real estate returns to correct for the perceived biases induced in the appraisal process. Since the early work by Geltner (1989), many papers have been written on this topic but remarkably few have considered the relationship between smoothing at the individual property level and the amount of persistence in the aggregate appraised-based index. To investigate this issue in more detail we analyse a sample of individual property level appraisal data from the Investment Property Database (IPD). We find that commonly used unsmoothing estimates overstate the extent of smoothing that takes place at the individual property level. There is also strong support for an ARFIMA representation of appraisal returns.

Another look at the relative importance of sectors and regions in determining property returns

This paper re-examines the relative importance of sector and regional effects in determining property returns. Using the largest property database currently available in the world, we decompose the returns on individual properties into a national effect, common to all properties, and a number of sector and regional factors. However, unlike previous studies, we categorise the individual property data into an ever-increasing number of property-types and regions, from a simple 3-by-3 classification, up to a 10 by 63 sector/region classification. In this way we can test the impact that a finer classification has on the sector and regional effects. We confirm the earlier findings of previous studies that sector-specific effects have a greater influence on property returns than regional effects. We also find that the impact of the sector effect is robust across different classifications of sectors and regions. Nonetheless, the more refined sector and regional partitions uncover some interesting sector and regional differences, which were obscured in previous studies. All of which has important implications for property portfolio construction and analysis.

International evidence on the predictability of returns to securitized real estate assets: econometric models versus neural networks

The performance of various statistical models and commonly used financial indicators for forecasting securitised real estate returns are examined for five European countries: the UK, Belgium, the Netherlands, France and Italy. Within a VAR framework, it is demonstrated that the gilt-equity yield ratio is in most cases a better predictor of securitized returns than the term structure or the dividend yield. In particular, investors should consider in their real estate return models the predictability of the gilt-equity yield ratio in Belgium, the Netherlands and France, and the term structure of interest rates in France. Predictions obtained from the VAR and univariate time-series models are compared with the predictions of an artificial neural network model. It is found that, whilst no single model is universally superior across all series, accuracy measures and horizons considered, the neural network model is generally able to offer the most accurate predictions for 1-month horizons. For quarterly and half-yearly forecasts, the random walk with a drift is the most successful for the UK, Belgian and Dutch returns and the neural network for French and Italian returns. Although this study underscores market context and forecast horizon as parameters relevant to the choice of the forecast model, it strongly indicates that analysts should exploit the potential of neural networks and assess more fully their forecast performance against more traditional models.