Valuing emerging markets companies : new approaches to determine the effective exposure to country risk

The aim of this paper is to propose new methods to measure the effective exposure to country risk of emerging-market companies. Starting from Damodaran (2003), we propose seven new approaches and a revised CAPM for emerging markets companies. The “Prospective Lambda” represents the effective exposure according to analysts’ estimates of growth. The “Relative Lambda” relies on the firm value estimated through a relative valuation. The “Retrospective Lambda” represents the ex-post effective exposure to country risk. The “Company Effective Risk Premium” is a generalization of the Retrospective Lambda, and expresses the premium effectively requested by investors to invest in that specific company in the past year. “The Actual Lambda” and the “Company Actual Risk Premium” represent, respectively, the actual exposure to country risk of a company and the actual premium requested by investors to invest in that specific company. The “Industry Lambda” reflects the median exposure to country risk of the industry in which the company belongs. We tested our new measures of exposure to country risk on the Latin American emerging markets companies according to the classification of the MSCI Emerging Markets Latin America Index. The results confirm that the new approaches can be effectively applied by financial analysts to stable-growth companies that operate in emerging markets and to mature markets companies that operate in emerging markets, providing with a more reliable estimate of both the premium effectively requested by investors in the past and the actual premium. Applying the new approaches, the cost of equity reflects the effective exposure of a company to country risk without being over- or underestimated, as is the case with other existing approaches.

Abundance of sedentary consumers and sessile organisms along the wave exposure gradient of subtropical rocky shores of the south-west Atlantic

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

Chronic exposure to sub-lethal concentration of a glyphosate-based herbicide alters hormone profiles and affects reproduction of female Jundia (Rhamdia quelen)

This work was carried out to verify the effect of a glyphosate-based herbicide on Jundia hormones (cortisol, 17 beta-estradiol and testosterone), oocyte and swim-up fry production. Earthen ponds containing Jundia females were contaminated with glyphosate (3.6 mg/L); blood samples were collected from eight females from each treatment immediately before, or at 1, 10, 20 30 and 40 days following contamination. A typical post-stress rise in cortisol levels was observed at the 20th and 40th days following exposure to glyphosate. At the 40th day, 17 beta-estradiol was decreased in the exposed females. A similar number of oocytes were stripped out from females from both groups, however, a lower number of viable swim-up fry were obtained from the herbicide exposed females, which also had a higher liver-somatic index (LSI). The results indicate that the presence of glyphosate in water was deleterious to Rhamdia quelen reproduction, altering steroid profiles and egg viability. (c) 2006 Elsevier B.V. All rights reserved.

Effects of tributyltin exposure in hermit crabs: Clibanarius vittatus as a model

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

Air velocity and exposure time to ventilation affect body surface and rectal temperature of broiler chickens

Increasing air movement over poultry by using fans (ventilation) has become an accepted means of reducing environmental heat stress over the last several years. The purpose of this study was to evaluate the effect of air velocity and exposure time to ventilation on body surface and rectal temperature of broiler chickens. Male broiler chickens aged 36-42 days were placed in individual wire cages and exposed to five different air velocities (5.7, 4.2, 3.1, 2.4, or 1.8 m/sec). Throughout the experiment head, back, leg, and rectal temperatures were monitored every 10 min during a 30-min period for each air velocity. The data showed that exposure time to the wind affected (P<.05) leg and body temperature, with a rapid reduction being observed during the first 10 min. There was a reduction in leg temperature with air velocity of 2 m/sec; however, air velocity lower than 4.5 m/sec was not effective in decreasing head and back temperature. The results suggest that air velocity of 2 m/sec, in air temperature of 29 degrees C, improves heat loss in the birds. The data also indicate that exposure time to ventilation seems to be a critical point in the maintenance of bird thermal homeostasis.

Responsiveness of the interrenal tissue of Jundia (Rhamdia quelen) to an in vivo ACTH test following acute exposure to sublethal concentrations of agrichemicals

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Effect of heat exposure on the thermoregulatory responses of selected naked neck chickens

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

Stress responses in juvenile pacu (Piaractus mesopotamicus) submitted to repeated air exposure.

Pacu juveniles (5.2 [plus or minus] 1.5 g) were submitted to two one-minute air exposures in a 24h interval, and sampled before the exposure (control) and 5, 15, 30 and 60 min., 24 and 48h afterwards for whole-body cortisol, sodium, potassium and calcium ion concentrations. For the first air exposure, there was a trend of increased cortisol concentration after 15 min., whereas in the second air exposure, the cortisol concentration increased significantly within 5 min. after stress was induced. Sodium ion concentration increased significantly 24h after both air exposures. Potassium concentration presented fluctuations over the experimental period. Calcium ion concentration increased progressively from 5 to 30 min., in both air exposures. The repeated air exposures exacerbated the cortisol response, but they did not affect the recovery ability of pacu over the experimental period. Additionally, the whole-body cortisol measurement might be a reliable indicator of stress, when sampled fish are smaller and blood volumes are very low, making samples inadequate for analysis.

Cigarette smoke exposure severely reduces peripheral insulin sensitivity without changing GLUT4 expression in oxidative muscle of Wistar rats

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

Occupational exposure of physical therapists to electric and magnetic fields and the efficacy of Faraday cages

Objective. Measure physical therapists' exposure to the electric and magnetic fields produced by 17 shortwave diathermy devices in physical therapy clinics in the city of Presidente Prudente, São Paulo State, Brazil. Compare the observed values with the exposure levels recommended by the International Commission on Non-ionizing Radiation Protection (ICNIRP). Observe the efficacy of Faraday cages as a means of protecting physical therapists from exposure to oscillating electric and magnetic fields.Methods. Electric and magnetic field measurements were taken at four points during actual physical therapy sessions: in proximity to the operator's pelvis and head, the devices' electrical cables, and the electrodes. The measuring equipment was a Wandel & Goltermann EMR-200.Results. The values obtained in proximity to the electrodes and cables were 10 to 30 times higher than ICNIRP's recommended occupational reference levels. In the shortwave diathermy treatment rooms with Faraday cages, the fields were even higher than in treatment rooms not so equipped-principally the magnetic field, where the values were more than 100 times higher than the ICNIRP exposure limit.Conclusions. The electric and magnetic field intensities obtained in this study are generally above the exposure levels recommend in ICNIRP standards. It was also observed that the Faraday cage offers physical therapists no protection, and instead, increases their level of exposure.

Rapid determination of desorption efficiency, and analysis of solvent mixtures for occupational exposure studies

An analytical procedure has been developed for simultaneous determination of solvent mixture vapors to enable evaluation of occupational exposure. To determine the desorption efficiency the volatile components of the solvent mixtures were generated from a glass tube filled with glass wool. This device is easy to prepare and use. These vapors were then collected in activated charcoal tubes and analyzed by capillary gas chromatography. The method was tested with a mixture of 22 solvents, including aliphatic and aromatic hydrocarbons, alcohols, ethers, esters, and ketones, oil at low concentrations. All the components were defected. When a 99: 1 mixture of carbon disulfide-dimethylformamide was used for desorption the efficiency was > 75% for most of the solvents.

Exposure to chronic stress increases the locomotor response to cocaine and the basal levels of corticosterone in adolescent rats

Repeated exposure to stress results in augmentation in the locomotor response to psychostimulant drugs. We investigated the locomotor response to a novel environment or cocaine [ 10 mg/kg, intraperitoneally (i.p.)] and basal corticosterone levels in male adolescent rats exposed to chronic restraint or variable stress. Animals in the chronic restraint group were restrained for 1 hour daily. The chronic variable stress protocol consisted of exposure to different stressors twice a day in random order. Chronic restraint and variable stress regimens began simultaneously on postnatal day (P) 25 and were applied for 10 days. During this period the control group was left undisturbed except for cleaning the cages. Three days after the last exposure to stress, cocaine- and novelty-induced locomotion were recorded in an activity cage. Plasma corticosterone levels were determined in a subset of stress and control animals. Exposure to both chronic restraint and variable stress increased cocaine- induced locomotion and basal corticosterone plasma levels, while no change was observed in the response to a novel environment. Moreover, rats exposed to variable stress displayed the greatest locomotor response following a challenge dose with cocaine when compared to control and chronic restraint stress groups. This observation indicates that the stress regimen is relevant to the degree of stress-induced sensitization to cocaine.

Repeated exposure of adolescent rats to oral methylphenidate does not induce behavioral sensitization or cross-sensitization to nicotine

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

Effects of simultaneous exposure to stress and nicotine on nicotine-induced locomotor activation in adolescent and adult rats

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)