Earnings quality and performance in the banking industry: a profit frontier approach

The analysis of efficiency and productivity in banking has received a great deal of attention for almost three decades now. However, most of the literature to date has not explicitly accounted for risk when measuring efficiency. We propose an analysis of profit efficiency taking into account how the inclusion of a variety of bank risk measures might bias efficiency scores. Our measures of risk are partly inspired by the literature on earnings management and earnings quality, keeping in mind that loan loss provisions, as a generally accepted proxy for risk, can be adjusted to manage earnings and regulatory capital. We also consider some variants of traditional models of profit efficiency where different regimes are stipulated so that financial institutions can be evaluated in different dimensions—i.e., prices, quantities, or prices and quantities simultaneously. We perform this analysis on the Spanish banking industry, whose institutions have been deeply affected by the current international financial crisis, and where re-regulation is taking place. Our results can be explored in multiple dimensions but, in general, they indicate that the impact of earnings management on profit efficiency is of less magnitude than what might a priori be expected, and that on the whole, savings banks have performed less well than commercial banks. However, savings banks are adapting to the new regulatory scenario and rapidly catching up with commercial banks, especially in some dimensions of performance.

Sensory quality attributes of lettuce obtained using different harvesting performance systems

The objective of this study was to determine the best lettuce cultivar (American 'Graciosa', 'Vanda', 'Marcela' and 'Lavínia') harvesting method. Therefore, quality and shelf-life were evaluated using sensory analyses. Lettuce heads was harvested with the root on by the producer, so that they were cut in different ways in the laboratory. The samples were stored in a cold chamber at 10 °C and 80% ± 2% of relative humidity for nine days, and the sensorial analyses were performed according to Qualitative Descriptive Analysis method on days 1, 3, 6, and 9 of storage by twelve trained testers. The results were evaluated by variance analysis, principal component analysis, and the Tukey test with a reliability of 95%. The results indicate that there was a reduction in the quality of lettuce between the 1st and the 5th day of storage and that after the sixth day of storage the lettuce samples were considered unfit for consumption, except for the 'Lavínia' lettuce cultivar with root and cut treatment 2. On the ninth day of storage all samples were considered inappropriate for consumption.

Performance of different drying methods and their effects on the physiological quality of grain sorghum seeds (S. bicolor (L.) Moench)

This experiment viewed to evaluate the physiological quality of grain sorghum seeds as well as to determine the respective drying curve of each of three drying methods. The seeds harvested at 18.9%, 18.1%, and 18.2% of moisture content were submitted to the following drying methods : a) under natural conditions, b) an intermittent dryer in which the combustion of firewood was the source of caloric energy, and c) a stationary dryer in which the source of caloric energy was the burning of liquefied petroleum gas. The experimental design was a completely randomized one with 25 repetitions of one hundred seeds each. The water contents and weight of one thousand seeds were evaluated. Seeds physiological quality was evaluated by germination and vigor tests. Seed drying rates were of 0.11, 1.25, and 0.55 percent points per hour (pph -1) for the natural, intermittent and stationary drying methods, respectively. The intermittent treatment permits the highest loss of water in the shortest period of time, and germination and vigor remaining unchanged.

Assessing the influence of irrigation and fertigation on fruit composition, vine performance and wine quality in a cool, humid climate /

A study was devised to evaluate influences of irrigation and fertigation practices on Vitis vinifera and Vitis labruscana grapes in the Niagara Peninsula. A modified FAO Penman- Monteith evapotranspiration formula was used to calculate water budgets and schedule irrigations. Five deficit irrigation treatments (non-irrigated control; deficits imposed postbloom, lag phase, and veraison; fiiU season irrigation) were employed in a Chardonnay vineyard. Transpiration rate (4-7 /xg H20/cmVs) and soil moisture data demonstrated that the control and early deficit treatments were under water stress throughout the season. The fiiU season irrigation treatment showed an 18% (2001) and 19% (2002) increase in yield over control due to increased berry weight. Soluble solids and wine quality were not compromised, and the fiiU season treatment showed similar or higher °Brix than all other treatments. Berry titratable acidity andpH also fell within acceptable levels for all five treatments. Irrigation/fertigation timing trials were conducted on Concord and Niagara vines in 2001- 02. The six Concord treatments consisted of a non-irrigated control, irrigation fi^om Eichhom and Lorenz (EL) stage 12 to harvest, and four fertigation treatments which applied 70 kg/ha urea. The nine Niagara treatments included a non-irrigated control, two irrigated treatments (ceasing at veraison and harvest, respectively) and six fertigation treatments of various durations. Slight yield increases (ca. 10% in Concord; 29% in Niagara) were accompanied by small decreases in soluble solids (1.5°Brix), and methyl anthranilate concentrations. Transpiration rate and soil moisture (1 1.9-16.3%) data suggested that severe water stress was present in these Toledo clay based vineyards.

Wheat protein quality in relation to baking performance evaluated by the Chorleywood bread process and a hearth bread baking test

The relationships between wheat protein quality and baking properties of 20 flour samples were studied for two breadmaking processes; a hearth bread test and the Chorleywood Bread Process (CBP). The strain hardening index obtained from dough inflation measurements, the proportion of unextractable polymeric protein, and mixing properties were among the variables found to be good indicators of protein quality and suitable for predicting potential baking quality of wheat flours. By partial least squares regression, flour and dough test variables were able to account for 71-93% of the variation in crumb texture, form ratio and volume of hearth loaves made using optimal mixing and fixed proving times. These protein quality variables were, however, not related to the volume of loaves produced by the CBP using mixing to constant work input and proving to constant height. On the other hand, variation in crumb texture of CBP loaves (54-55%) could be explained by protein quality. The results underline that the choice of baking procedure and loaf characteristics is vital in assessing the protein quality of flours. (C) 2003 Elsevier Ltd. All rights reserved.

Influence of different fat sources on the performance, egg quality, and lipid profile of egg yolks of commercial layers in the second laying cycle

This study was designed to evaluate the effects of different fat sources on the performance, egg quality, and lipid profile of the egg yolks of layers in their second production cycle. The fat sources were cottonseed oil, soybean oil, lard, sunflower oil, or canola oil. Experimental diets were fed to postmolt ISA Brown layers at 70 wk of age and the experimental period was 74 to 86 wk of age. The different fat sources did not influence performance or eggshell quality, but lipid profile of the egg yolk changed as a function of dietary fat sources. In general, the best changes, such as lower level of saturated fatty acids, higher levels of alpha-linolenic acid and DHA, and lower linoleic acid levels, were promoted by the addition of canola oil, but it did not promote enrichment of the eggs with polyunsaturated fatty acids.

Effects of energy and protein levels on egg quality and performance of laying hens at early second production cycle

One hundred sixty-two commercial 70-wk-old ISA Brown laying hens, previously subjected to induced molting by feed restriction, were distributed in a completely randomized design with 3 x 3 factorial arrangement (i.e., 3 metabolizable energy levels: 2,850; 2,950, and 3,050 kcal of ME/kg) and 3 protein levels (16, 18, and 20% CP), which totaled 9 treatments with 3 replicates of 6 birds each. Experimental diets were offered to birds after the feed restriction period. Performance and egg quality parameters were evaluated in 14-d intervals from the 4th to 12th weeks after forced molting for a total of 4 evaluation periods. Increases in dietary energy and protein levels did not improve performance or egg quality. The levels of 2,850 kcal of ME and 16% protein were sufficient for laying hens starting the second production cycle without decreasing their performance or egg quality.

Effect of supplementation of diets for quails with vitamins A, D and E on performance of the birds and quality and enrichment of eggs

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

Beak trimming methods and their effect on the performance and egg quality of Japanese quails (Coturnix japonica) during lay

A total number of 720 Japanese quail females, reared under identical management conditions, and receiving feed and water ad libitum, was used. Quails were housed and reared from 1-35 days of age in litter pens in a rearing house, and then were transferred to a quail layer house. This study aimed at verifying if different beak trimming method could optimize egg production and quality by reducing stress and cannibalism among birds. A completely randomized experimental design was used, with six treatments in a 2x3 factorial arrangement, with two beak trimming ages (14 and 21 days) and three beak trimming variants (non-trimmed, 1/3 of the beak trimmed, or 1/2 of the beak trimmed), 6 replicates of 20 birds each. Performance was evaluated by feed intake, percentage of lay, egg mass, feed conversion ratio per dozen and per kg eggs, and mortality. Performance was influenced by trimming variant, with the best results obtained by birds with intact and those with 1/3 of the beak trimmed. Better specific gravity was in quails submitted to beak trimming at 21 days of age, whereas other egg quality parameters did not present significant results. Based the results obtained in the present study, it is recommended to submit to beak trimming either at 14 or 21 days of age.

Production performance and egg quality of quails (Coturnix japonica) during several periods of the day

Three experiments were carried out to analyze the performance and egg quality of Japanese quails throughout the day when submitted to different lighting programs. In each experiment, birds were submitted to a period of 28 days for adaptation to the lighting program. During the following three days, each day - from 7 am to 7 pm or 9 pm - was divided into six or seven periods of two hours each, and the remaining hours corresponded to another single period. All birds were submitted to the same management practices, and received water and feed ad libitum. The experimental diet was formulated according to NRC (1994) standards. It was observed lower feed intake in the period of 9 pm to 7 am, and a higher incidence of lay from 3 pm to 7 pm, as opposite to hens, which peak of egg laying occurs during the morning. Some controversial results were found among experiments as to eggshell quality during the different periods of the day. Variation on the lighting program had little influence on the other performance and egg quality parameters.

Forced-Molting methods and their effects on the performance and egg quality of japanese quails (Coturnix japonica) in the second laying cycle

The experiment was carried out in the experimental poultry house of the Research and Development Unit of Brotas of Agência Paulista de Tecnologia dos Agronegócios do Centro-Oeste, SP, Brazil. The objective of the study was to evaluate the performance of Japanese quails submitted to forced molting aiming at optimizing the use of the same quail flock by promoting a second laying cycle. A total number of 400 67-day-old Japanese quails in lay, previously submitted to 14 days of forced molting, was distributed in a completely randomized experimental design into five treatments (T1= not submitted to forced molting, T2= 03 days of fasting + fed ad libitum, T3= 01 days of fasting + 13 days of feed restriction, T4= 02 days of fasting + 12 days of feed restriction, and T5= 03 days of fasting + 11 days of feed restriction. Feeds were contained equal nutrient levels, and were formulated according to NRC (1994) recommendations. There were significant differences among the studied treatments. Although the treatment of 3 days of fasting followed by ad libitum feeding resulted in lower egg weight, it promoted better lay percentage, egg mass, and feed conversion ratios (FCR/dz and FCR/kg). on the other hand, 3 days of fasting followed by restricted feeding resulted in higher feed intake and worse feed conversion ratios (FCR/dz and FCR/kg). When birds were not submitted to forced molting, they presented lower lay percentage and egg mass.