Financial Rating Considering Economical Crisis

Rating is a mark given by a rating agency to the debt of a banking company according to its capability to honour on due term the financial obligations resulting from this debt. The use of ratings is encouraged by the new banking prudential regulations issued on international market (Basel II Agreement) and introduced also in Romania by National Bank; these regulations define the methods to determine bank solvency calculation based on ratings held by banks’ customers. In 2009 the European Parliament approved a new regulation for the financial rating agencies and it comes into force in all the countries which are members of the European Union (EU). According to the new regulation, the rating agencies will have to meet the strict integrity, quality and transparency standards and they will be constantly supervised by public authorities. Rating agencies provide independent opinions owith regard to the salvency of a company, govern or of different financial instruments which are used by investors, creditors, issuers and governs playing an important role on the financial market. Current financial crisis proved that there were some major weaknesses in terms of methods and models used by rating agencies. It seems that rating became a necessity in the current financial world and also Romania should be in line with this trend.economical crisis, world economy, rating, credit risk, banking companies

Efficiency of Selected Risk Management Instruments - An Empirical Analysis of Risk Reduction in Kazakhstani Crop Production

Recent academic discussion regarding crop insurance in developing and transition countries has focused on weather index insurance. But empirical analyses of such schemes based on farm level data cannot be found in the literature, though this insurance type shows clear advantages compared to multiple-peril crop insurance and revenue insurance. Recent empirical applications of risk and stochastic programming models focus on the optimisation of production planning, while literature on the effects of crop insurance on the farm level mainly focuses on the empirical investigation of reductions in farm income variance. The novelty of this paper is that it integrates regionally-adapted insurance products and expert-evaluated technology choices into a programming model that analyses activities with regard to their utility-efficiency. Thus, the objective of this paper is to analyse the effects of different risk management instruments on the certainty equivalent of case study farms in three different regions. Specifically, the applied Expected Utility Model analyses on-farm risk management instruments and crop insurance products with regard to their capability of stabilising farm income. Results indicate that only a combination of on-farm and financial risk management measures increases income and efficiently reduces risk. Weather-based insurance, in combination with intensive technology, stabilises income most efficiently in a specialised grain region in Northern Kazakhstan whereas farm-yield insurance combined with an extensive technology is the preferred risk management option in East Kazakhstan, where diversification with oilproducing crops is possible.Risk, risk management, insurance, agriculture, Kazakhstan, Crop Production/Industries, Risk and Uncertainty, Q12, Q14, G22, D82,

MENGENAL LEBIH DEKAT ANALISIS PASAR MODAL PERSPEKTIF SYARI`AH

The development of Sharia capital market system in Indonesia based on sharia economic values which controlled by Indonesian Capital Market Architecture to provide an alternative sharia finance product for  Indonesian people. Synergically, the sharia capital market system moving widely to support society’s financial mobilization for increasing financial capability for national economic growth. The characteristic of Sharia capital market system by using profite contribution and loss sharing mechanism  gives more profitable for both capitalist and someone who is doing business. There is also put forward justification values in transactions, ethically invest, put forward togetherness and brotherhood values in production but also avoid all speculative acts  in some financial transactions. Providing various contracts and market services with variety of financial schemes, the sharia capital market becomes an alternative credible stock-exchange growth and it can be enjoyed by all levels of moslim`s capitalist. In the context of macro economic system, widely used various products and sharia financial instruments, it can tighten financial in real sectors of business development. The goal of Islamic capital market are providing instruments for supporting financial acts and business activities. Exactly, it decreases speculative transactions, so that it supports wholly financial system stability and provides significant contribution for harmony life. As a result, the society responds positively toward the products and services provided by the management of sharia capital market to increase society’s economy. It can fasten the process of empowering society’s economy which gives positive contribution in understanding business starting with small capital. As a matter of fact, the development of sharia capital market system needs more supports from moslem`s society, stated under regulation  and it would be controlled by authorized person (National Sharia Boards/Dewan Syariah Nasional)

Foreign capital in a growth model

Within an endogenous growth framework, this paper empirically investigates the impact of financial capital on economic growth for a panel of 60 developing countries, through the channel of domestic capital formation. By estimating the model for different income groups, it is found that while private FDI flows exert beneficial complementarity effects on the domestic capital formation across all income-group countries, the official financial flows contribute to increasing investment in the middle income economies, but not in the low income countries. The latter appears to demonstrate that the aid-growth nexus is supported in the middle income countries, whereas the misallocation of official inflows is more likely to exist in the low income countries, suggesting that aid effectiveness remains conditional on the domestic policy environment

An artifact based approach to the accounting recognition of assets, particularly intangible assets

The International Accounting Standards Board is currently reviewing its conceptual framework and, as regards assets, the epistemological focus is upon revisions to the definition of an asset. The asset recognition criteria presented in this paper break free from this narrow definitional perspective to offer an alternative view based on the recognition of artifacts and the related notion of separability

Production Technology and Competitiveness In the Hungarian Manufacturing Industry

Following the big transformations of the 1990s, enterprise structure and technological level seem to have become stabilised in Hungary. Under these circumstances it is especially interesting to identify the elements responsible for competitiveness in general, and the role technology plays in development in particular, according to managers experienced in production and marketing. This empirical study – based on in-depth interviews and field research – summarises characteristics of the technological level in the sectors examined, role of technology and labour in production, effects of foreign direct investment, relations between competition and firm-level factors determining competitiveness, and concludes by summing up those most frequently mentioned proposals that should be incorporated into economic policy according to managers. Main findings indicate that more qualified, more intensive and cheaper labour can be substituted for high technology. The competitiveness of an enterprise is not determined by technology alone, but rather by a combination of technology, the parameters of available labour and the costs of investment increasing productivity. The insufficiency of inter-company relations, together with a shortage of available assets necessary for investment constitute the major threat undermining the competitiveness of enterprises in present-day Hungary

RISK MITIGATION CAPABILITY OF FLEXIBILITY PERFORMANCE CONTRACTS FOR DEMAND RESPONSE IN ELECTRICITY SYSTEMS

The transition of the energy system increases the urgency to cope with the intermittency of renewable energy sources to keep the electricity network balanced. Demand Response (DR) measures are a promising approach to align the electricity consumption, especially of industrial consumers, with current electricity supply. While adequate information systems (IS) are already in place to dynamically adapt electricity consumption patterns, industrial consumers are still reluctant to implement DR measures due to uncertainty of their financial performance. Nevertheless, studies on risk transfer instruments related to DR investments are still scarce. To con-tribute to the closure of this research gap, we examine the risk transfer capability of Flexibility Performance Contracts (FPC). We derive cash flow structures for representative FPC designs, calculate risk premiums and enable the comparison of corresponding risk profiles. Presented FPCs are evaluated based on a real-world industrial use case. Thereby, the financial perfor-mance is modelled stochastically, taking electricity price fluctuation, industrial process charac-teristics and IS-backed decisions into account. Our results reveal that FPCs represent well-suited risk transfer instruments for DR measures. Thus, FPCs have the potential to accelerate the application of DR measures and therefore to complement existing capabilities of IS in the context of electricity networks

Commodities and Linkages: Meeting the Policy Challenge

The results of detailed empirical enquiry into the nature and determinants of the breadth and depth of linkages in and out of the commodities sector in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber) has shown extensive scope for industrial development (MMCP DP 13, 2011). A primary conclusion of this research was that policy in both the private and public realm was a prime factor holding back the development of linkages. Addressing this problem requires the closing of three sets of misalignments between policy and practice – within the corporate sector, within the public sector, and between the public sector and other stakeholders involved in linkage development. In addition, specific policies need to be developed, monitored and implemented in relation to the three contextual drivers of linkages from the commodity sector – skills and capabilities, infrastructure and policies towards ownership