ANALYSIS OF FINANCIAL HEALTH, STATE-OWNED ENTERPRISES (Case Study at PT Aneka Tambang Tbk)

This study aims to examine the financial health of State-Owned Enterprises (SOEs), particularly at PT Aneka Tambang, Tbk. The research method used is a combination of quantitative research and qualitative research methods. The quantitative method is used to calculate the financial stability  indicators of PT Aneka Tambang, Tbk from year to year for six years based on the time series data of the company's financial statements while the descriptive qualitative method is used to describe and explain narratively the financial health development of PT Aneka Tambang, Tbk.Sampling for quantitative research is done by taking time series data over the past six years that are available in the company. While qualitative research is carried out by comparing and analyzing the results of quantitative data calculations. The data analysis technique was carried out using financial ratio analysis of each indicator, then given a score and determined the level of financial stability . Ratio analysis is carried out from year to year for the last ten years based on the time series data obtained. The results of the calculation of ratio analysis of financial stability  indicators are then compared from year to year to determine the trends in financial stabilitu  occurred.This study aims to examine the financial health of State-Owned Enterprises (SOEs), particularly at PT Aneka Tambang, Tbk. The research method used is a combination of quantitative research and qualitative research methods. The quantitative method is used to calculate the financial stability indicators of PT Aneka Tambang, Tbk from year to year for six years based on the time-series data of the company's financial statements while the descriptive qualitative method is used to describe and explain narratively the financial health development of PT Aneka Tambang, Tbk. Sampling for quantitative research is done by taking time series data over the past six years that are available in the company. While qualitative research is carried out by comparing and analyzing the results of quantitative data calculations. The data analysis technique was carried out using financial ratio analysis of each indicator, then given a score, and determined the level of financial stability. Ratio analysis is carried out from year to year for the last ten years based on the time-series data obtained. The results of the calculation of ratio analysis of financial stability indicators are then compared from year to year to determine the trends in financial stability occurre

The Prediction of Corporate Bankruptcy and Czech Economy’s Financial Stability through Logit Analysis

This article presents a financial scoring model estimated on Czech corporate accounting data. Seven financial indicators capable of explaining business failure at a 1-year prediction horizon are identified. Using the model estimated in this way, an aggregate indicator of the creditworthiness of the Czech corporate sector (named as JT index) is then constructed and its evolution over time is shown. This indicator aids the estimation of the risks of this sector going forward and broadens the existing analytical set-up used by the Czech National Bank for its financial stability analyses. The results suggest that the creditworthiness of the Czech corporate sector steadily improved between 2004 and 2006, but slightly deteriorated in 2007 what could be explained through global market turbulences.bankruptcy prediction, financial stability, logit analysis, corporate sector risk, JT index

Macro-prudential View of Financial Stability

The paper points out the key features of "macro prudential" new framework, accepted by all relevant international institutions, in an effort to mitigate the externalities that can lead to vulnerability of the financial system and trigger a systemic risk. The emergence of the term dates back to the seventies, which over time have been almost forgotten, that was resurrected again in the second half of 2008, after a major global economic crisis. There is no single universal precise definition of "macro prudential", although most definitions contain several common characteristics. I focus on systematic risk, defines the key objective "macro prudential" or the regulation and supervision of the financial system as a whole rather than individual institutions. To limit the risk of global financial shocks, suggest different macro prudential indicators and instruments for assessing the health of the financial system and its vulnerability to shocks. The regulation and supervision of the financial system used macro prudential tools that are designed to enable efficient control policies, with particular focus on improving the resilience of the financial system impact of systematic risk. Macro prudential analysis focuses on factors that may threaten the stability of the financial system and the interrelationship between macroeconomic and financial stability. Macro-prudential application is based on rules or discretion, the entire system or individual financial institution, national or global level

Time-varying Effects of Public Debt on the Financial and Banking Development in the Central and Eastern Europe

In this paper we investigate the time varying effects of domestic public debts on the financial development, private credit and banking performance in the countries of the Central Eastern Europe, Balkan and Baltics region. By analyzing the empirical relationships among indicators and ratios of financial development and banking performance, we test their time-varying responses to changes in public debt through the described transmission channels. The econometric results suggest that the most significant determinant of private debt is the growing public debt over the short-midterm horizon. This might imply the crowding-out effect of public debt on private credit in the region. The growth of public debt positively impacts the banking sector efficiency only over the short-term period, while we observe only minor time effects in responses to changes in public debt on the financial stability indicators

Mirando el Desarrollo Económico de Chile: Una Comparación Internacional

This paper examines the relative position of Chile through time and compared with other emerging and industrial economies, using various economic development indicators, particularly over the past two decades. It provides a descriptive analysis, without exploring causalities or testing hypotheses on the economic growth of the country, but it allows to reveal the strengths and weaknesses that serve as the base for growth policy discussion. The comparison of economic development indicators shows that Chile is relatively strong in macroeconomic stability, commercial and financial integration, quality of institutions, and in the progress of other structural reforms that are manifested in its well-developed capital market and private sector involvement in production. However, when it comes to quality of education, technological innovation efforts, infrastructure quality and quantity, and some social indicators, its performance is poor.

Mirando el Desarrollo Económico de Chile: Una Comparación Internacional

This paper examines the relative position of Chile in time and compared with other emerging and industrial economies, through various economic development indicators, particularly over the past two decades. It provides a descriptive analysis, without exploring causalities or testing hypotheses on the economic growth of the country. This analysis reveals the strengths and weaknesses that serve as the base for growth policy discussion. The comparison of economic development indicators shows that Chile is relatively strong in macroeconomic stability, quality of institutions, commercial and financial integration, and in the progress of other structural reforms that are manifested in its well-developed capital market and private sector involvement in production. However, when it comes to quality of education, efforts made in technological innovation, infrastructure quality and quantity, and some social indicators, its performance is poor.

Time-varying Effects of Public Debt on the Financial and Banking Development in the Central and Eastern Europe

In this paper we investigate the time varying effects of domestic public debts on the financial development, private credit and banking performance in the countries of the Central Eastern Europe, Balkan and Baltics region. By analyzing the empirical relationships among indicators and ratios of financial development and banking performance, we test their time-varying responses to changes in public debt through the described transmission channels. The econometric results suggest that the most significant determinant of private debt is the growing public debt over the short-midterm horizon. This might imply the crowding-out effect of public debt on private credit in the region. The growth of public debt positively impacts the banking sector efficiency only over the short-term period, while we observe only minor time effects in responses to changes in public debt on the financial stability indicators

Looking at Chile’s Economic Dvelopment From an International Perspective

This paper examines the relative position of Chile through time and compared with other emerging and industrial economies, using various economic development indicators, particularly over the past two decades. It provides a descriptive analysis, without exploring causalities or testing hypotheses on the economic growth of the country, but it reveals the strengths and weaknesses that serve as the base for growth policy discussion. The comparison of economic development indicators shows that Chile is comparatively strong in macroeconomic stability, commercial and financial integration, quality of institutions, and in the progress of other structural reforms that are manifested in its well-developed capital market and private sector involvement in production. However, when it comes to quality of education, technological innovation efforts, infrastructure quality and quantity, and some social indicators, its performance is poor.

The relationship between infrastructure and foreign investment inflows to South Africa

Foreign direct investment (FDI) has emerged as a major source of external capital for developing countries in Asia, South and Central America and Sub-Saharan Africa. However, Sub-Saharan Africa's share of global FDI compares unfavourably with that garnered by other developing regions in the world. Until recently, South Africa has been the top recipient of FDI inflows among SSA countries as it has benefitted from the relatively stable macroeconomic and political environment. South Africa is, however, afflicted by significant deficits in the quality and quantity of economic and social infrastructure. Empirical studies on the significance of infrastructure development and FDI inflows at country level in SSA are limited, as are empirical studies on the determinants of FDI inflows to SSA countries. It is against this backdrop that this research sets out to examine the relationship between infrastructure and FDI inflows to South Africa between 1970 and 2015. Secondary time series data on indicators for infrastructure quality, infrastructure investment, market size, financial market development, macroeconomic stability, and trade openness was collected for empirical analysis. In accordance with time series analysis of macro-economic data, unit root and cointegration tests were performed prior to estimation of the error correction model. The results of the research indicate that infrastructure quality, financial market development, trade openness, and market size all had a positive impact on FDI inflows in the long run, although significantly so in the case of the latter two indicators. Infrastructure investment stability had a negative but insignificant impact, while inflation had a negative but statistically significant impact on FDI inflows. In the short run, only trade openness and financial market development had a positive but statistically insignificant impact on FDI inflows. The other indicators reflected a negative and insignificant impact on FDI inflows. The results of the research suggest that besides advancing macroeconomic stability, the South African government should also foster inclusive economic growth and development which can enhance the country's attractiveness for FDI over the long-term

Infrastructure and Foreign Direct Investment Inflows in South Africa: An Engle-Granger Error Correction Model Approach

The aim of this study was to examine the impacts of infrastructure quality and infrastructure investment on foreign direct investment in South Africa over the period 1970-2015. Time series annual data on foreign direct investment, infrastructure quality, infrastructure investment, financial market development, market size, macroeconomic stability and trade openness indicators were collected from relevant sources. Unit root tests were done using Augmented Dickey-Fuller and Phillips Perron methods, while cointegration was tested using the Johansen cointegration approach. The Engle-Granger error correction model was used to compute long-run and short-run estimates of the model. Results of the first step long-run segment show that trade openness, market size and infrastructure quality had statistically significant and positive impacts on FDI inflows. Macroeconomic stability had a significant and negative impact on FDI inflows, while financial market development and infrastructure investment had insignificant and negative impacts on FDI inflows. In the short run, the error correction term shows that 50.7% of disequilibrium in FDI inflows was corrected within a period of one year. Market size, macroeconomic stability and infrastructure investment had statistically significant and negative impacts on FDI inflows into South Africa over the sample period under review. Infrastructure quality, financial development and trade openness had positive but insignificant impacts on FDI inflows into the country. The estimated model passed all the diagnostic and stability tests. Keywords: Foreign direct investment (FDI) inflows, infrastructure quantity, infrastructure quality, Engle-Granger Error Correction Model DOI: 10.7176/JESD/12-12-02 Publication date:June 30th 202