Internal capital markets and analysts' earnings forecast errors

Corporate investment decisions are among the most important decisions of a firm. Internal capital markets play a key role in facilitating the allocation of capital resources in order to finance investment projects within diversified firms. This thesis investigates internal capital markets and its relationship with analysts earnings forecast errors in three countries with two distinct financial systems, namely, the market-based and bank-based financial system. Using segment level data for public listed companies in the UK, France and Germany between 2005 and 2010, we examine the operation and efficiency of internal capital markets in market- and bank-based systems. We also examine the impact of the financial crisis of 2008 on internal capital markets and analysts earnings forecasts errors, namely, the accuracy, bias and dispersion. The findings indicate internal capital markets actively facilitate the allocation of resources within diversified firms and, in general, operate inefficiently. Furthermore, internal capital markets appear to be more active in France compared with the UK. On the other hand, their role appears to be limited in Germany, as segments appear to rely more on their own resources and less on internal capital markets for investments. In addition, we find that internal capital market activity declines and efficiency improves during the financial crisis in UK. In contrast, there is no significant evidence to suggest that efficiency improves during the crisis in France or Germany. This research also finds some evidence to suggest internal capital markets operations aggravate firm complexity and, in turn, negatively affect short-term forecast accuracy in the UK. In addition to this, our analysis shows there is a positive relationship between the size of internal capital markets and dispersion in analysts earnings forecasts. In general, our study shows analysts are optimistic about firms future performance; however, the level of optimism significantly declines during the financial crisis. Lastly, we report a positive relationship between efficiency of internal capital markets and optimism in earnings forecasts

Employee Productivity, Employment Growth, and the Cross-Border Acquisitions by Emerging Market Firms

We examine the impact of the cross-border acquisitions made by firms from emerging markets on employee productivity and employment growth. The literature suggests that cross-border acquisitions enable emerging market firms to obtain new skills and knowledge-intensive assets, which, in turn, may increase productivity. However, our empirical analysis suggests that cross-border acquisitions reduce employee productivity and have a limited impact on employment growth. Moreover, we find that cross-border acquisitions in less-developed countries and in culturally distinct countries reduce productivity. Overall, our findings cast doubt on the idea that cross-border acquisitions enable emerging market firms to improve the productivity of one of their most important resources—namely, their human capital

A Practical Guide to Financial Services: Knowledge, Opportunities and Inclusion

Financial services and products underpin all aspects of our lives. We rely on bank accounts to deposit money, receive salaries and pay our bills. We use mortgages to purchase our homes, insurance to protect our assets, and pension policies to save for our future. Access to financial services is vital, yet many people are excluded from them. This book promotes financial knowledge and literacy. It focuses on the structure of the financial services industry, its key features, latest developments, and their impact on consumers’ access and use of financial services products as well as the risks and financial opportunities. The book discusses a wide range of topics, including the impact of major aspects and changes in banking, such as closure of branches, Open Banking, digitalisation of banking; the rise of Fintech and its impact on products and services in banking, insurance and investment; the changes in the financial advice sector; the cause and effect of financial exclusion on consumers; the Government’s role; the regulation of financial services and the types of consumer protection available. It also offers an international perspective, examining the industry in both a global and a UK context. The book is written for consumers, the general public, and university students, so that they can gain a better understanding of this important industry, make effective use of the financial products and services available, and exploit financial prospects to create wealth and build security for themselves and their families

Incidence of Nonalcoholic Fatty Liver Disease in Children: 2009–2018

In 2007, the American Academy of Pediatrics recommended that children with obesity should be screened for nonalcoholic fatty liver disease (NAFLD). Population epidemiology reveals that NAFLD is common in children; however, little is known about rates of clinical diagnosis. In this study, we aim to determine screening practices, annual incidence, and clinical characteristics of NAFLD in children within an integrated community health system. Using electronic health records, we identified patients newly diagnosed (aged 5-18) with NAFLD on the basis of diagnostic codes from the 9th and 10th revisions of the International Classification of Diseases. We calculated screening rates and annual incidence rates of NAFLD from January 1, 2009, to December 31, 2018. In this study, we evaluated 7 884 844 patient-years. Screening was performed in 54.0% of children with obesity and 24.0% of children with overweight. The results revealed 36 658 children aged 9 to 18 with overweight or obesity and alanine aminotransferase >30 U/L. Of these children, 12.3% received further workup for NAFLD. The incidence of an NAFLD diagnosis significantly increased over time, with 36.0 per 100 000 in 2009 and 58.2 per 100 000 in 2018 (P < .0001). Our study of a large integrated health care system in southern California revealed that the incidence of NAFLD in children is increasing, although many children may remain undiagnosed