Critical analysis of stress tests in the year 2011

Stress Tests are conducted by national supervisors as well as by the European Banking Authority (EBA). This paper aims to make a critical analysis of the latest edition of the stress tests published on 15th July 2011. To achieve this objective, we have also established a secondary aim: to examine the financial and patrimonial situation of some of the European and Spanish banks in the period 2010-2012, taking into account the relevant EBA index. From the historical data available, we can conclude that the aggregate Net Equity of the example we analysed, from 2010, including the recapitalization estimated by the EBA, reached a level of Net Equity/Assets, not even reached by the equivalent figures for 1985 (without recapitalization). Considering that Net Equity constitutes a safety zone for creditors in general, it can be stated that this basic criterion of solvency has deteriorate

Supervisión bancaria internacional: una doble visión BIS y EBA

Esta publicación se ha editado con el permiso de los Titulares de los Derechos. Septiembre de 201

Are multi-criteria decision making techniques useful for solving corporate finance problems? A bibliometric analysis

Corporate financial decision making processes (selection of investments and funding sources) are becoming increasingly complex because of the growing number of con icting criteria that need to be considered. The main aim of this paper is to perform a bibliometric analysis of the international research on the application of multi-criteria decision making (MCDM) techniques to corporate finance issues during the period 1980-2012. A total of 347 publications from the Scopus database have been compiled, classified and analysed. The results obtained confirm: a) an increase in the importance of MCDM in corporate finance; b) the relevance of MCDM techniques in capital budgeting processes (fixed assets investment) and in the assessment of firms' economic and financial performance; c) the techniques based on the multiple attribute utility theory (MAUT) are the most popular in complex decision making situations as they are very simple to implement

36th Cordoba Guitar Festival: Spectator Analysis Using Structural Equation Modelling (SEM)

The Cordoba Guitar Festival is one of the most important cultural events in Spain. This article analyses the musical preferences, satisfaction, attitudinal loyalty, and behavioural loyalty of spectators who attended the 36th festival held in July 2016, as well as the festival’s economic impact on the city. These characteristics of the public give rise to the four hypotheses of this study. To achieve this aim, a structural equation model (SEM) was used. The results −χ2 = 27.79, with the p-value found to be p = P (χ2 ≥ 27.79) = 0.224—show the goodness-of-fit of the model and indicate that the observed data do fit the expected dataset. The results therefore allow us to accept the proposed hypotheses concerning the influence of different latent factors, such as musical preferences, loyalty, and satisfaction with the festival. This is the main focus with which the present study has been written. Regarding the economic impact, the Festival raised 1.2 million euros, that is, slightly more than 73,000 euros per day. The amount, although not very high, is important as additional income for the city. The conclusions show the need to consider the preferences of the spectator as an essential tool to enable the continuation and longevity of the Cordoba Guitar Festival—an important cultural destination

The capital budgeting process: a methodological approach based on financial and intellectual value creation

Objeto: El objetivo de este artículo es presentar una novedosa metodología de valoración de inversiones productivas basada en la estimación del valor total creado con cada proyecto de inversión, considerando para ello sus dos componentes: el valor financiero y el valor del capital no financiero, este último derivado del capital intelectual corporativo. Diseño/metodología: Se propone una metodología basada en la técnica multicriterio del proceso analítico jerárquico (AHP, por sus siglas en inglés). En este modelo, se definen cuatro criterios principales (capital financiero, capital humano, capital estructural, y capital relacional), varios subcriterios y las alternativas de inversión. Para determinar el valor total de cada alternativa, se requieren juicios de valor por parte de los directores generales de las empresas, información obtenida a través de un cuestionario basado en comparaciones pareadas, cuyos resultados alimentan una función de utilidad multiatributo. Un caso de estudio del sector agroalimentario ilustra la aplicabilidad práctica del modelo. Aportaciones y resultados: La aplicación empírica evidencia la necesidad de considerar el impacto de las inversiones productivas en el capital intelectual de la empresa, pues este impacto influye en la selección de la alternativa de inversión óptima. Limitaciones: Las conclusiones alcanzadas se consideran aún provisionales, dado que se trata de un estudio pionero con una aplicación empírica reducida a sólo cinco empresas. Implicaciones prácticas: Mediante el modelo teórico propuesto, los directores generales pueden valorar las inversiones productivas incorporando en el análisis, de manera formalizada, la creación de valor del capital no financiero. Este procedimiento permite tomar decisiones más adecuadas, contribuyendo de manera efectiva a seleccionar la alternativa de inversión que maximice el valor de mercado de la compañía. Valor añadido: Como principal aportación de este trabajo se destaca la incorporación del enfoque del capital intelectual en el proceso de valoración de inversiones productivas en la empresa y la propuesta de un marco metodológico formalizado y unificado.Purpose: This paper aims to develop a novel capital budgeting method to improve the quality of the appraisal process for productive investments by decomposing the total value that is created by the new assets into two components: financial value and nonfinancial capital value, the latter stemmed from the intellectual capital of the firm. Design/methodology/approach: This paper proposes a methodology based on the multi-criteria technique called the Analytic Hierarchy Process (AHP). Within the model, four main criteria (financial capital, human capital, structural capital, and relational capital), several subcriteria and the investment alternatives are defined. In order to determine the total value of each alternative, CEO preferences are required using a pairwise comparison-based questionnaire, the results of which feed a multiattribute utility function. A case study on the agrifood sector illustrates the model empirically. Findings and Originality/value: The empirical application evidences the need to consider the impact of productive investments on firms´ intangible assets, as this impact actually affects the choice of optimal investment alternative in the real world. Practical implications: Using the theoretical model proposed, CEOs can appraise productive investments by incorporating nonfinancial capital value creation into the analysis. This procedure permits more accurate and successful decision-making and contributes effectively to the selection of the investment option that maximizes firms’ market value. Originality/value: This research provides an important addition to the current literature by integrating intellectual capital into capital budgeting and by proposing a unified methodological framework.Peer Reviewe

Paraguay: a housing finance proposal for middle- to low-income groups

The construction and ownership of homes is fundamental to economic development, the generation of wealth and the formation of the middle class. Although a number of studies have been conducted and programmes implemented in recent decades, there remains a significant housing deficit in Paraguay and Latin America, indicating that such programmes have been unsuccessful. For families unable to document a steady income, the main obstacle to homeownership is often financing. This paper aims to demonstrate the economic and financial feasibility —provided there is sufficient political will and coordination between public and private entities— of a project to build 75,000 homes for 300,000 people (4.5% of the Paraguayan population) with middle to low incomes. The median household income in this segment, for which there is a significant shortage of decent housing, is US$396.50. A maximum of US$ 63.44 per month may be set aside for housing costs

Paraguay: una propuesta de financiamiento de viviendas para los segmentos de ingresos medios-bajos

La construcción y la propiedad de viviendas son fundamentales para el desarrollo económico, la creación de riqueza y la formación de la clase media. Pese a los numerosos estudios y programas implementados en décadas recientes, persiste un marcado déficit de viviendas en el Paraguay, así como en América Latina, porque estos programas no han sido exitosos. El mayor obstáculo para las familias al intentar adquirir una vivienda y no poder acreditar ingresos regulares, suele ser el financiamiento. En este trabajo se procura demostrar la factibilidad económica y financiera —siempre que exista voluntad política y coordinación entre entidades privadas y públicas— de un proyecto de construcción de 75.000 viviendas para 300.000 personas (el 4,5% de la población paraguaya) con ingresos medios-bajos. Este segmento poblacional, con grave carencia de viviendas decentes, tiene un ingreso medio de 396,5 dólares por hogar, pudiendo destinar hasta 63,44 dólares mensuales a costos relacionados con la vivienda

Loyalty, Motivation, and Satisfaction: A Quantitative Analysis of the 8th Cinejoven Festival of Almería, Spain

In several cities of Spain, film festivals are regarded as prominent cultural events. The most well-known film festivals in Spain are the Valladolid International Film Week, San Sebastian, the Bilbao, Alcalá de Henares, Málaga, Manresa Almería. The Almería city, located on the Mediterranean Sea, has been striving to promote these events for a decade or so. This research aims to analyze the characteristics of the audience attending the 8th Cinejoven Film Television Festival and collaborate in the visibility of the event. Five hypotheses were tested using the variables: perceived value, motivations, and satisfaction loyalty. A sample of 207 surveys of attendees at the festival was analyzed. SmartPLS 3.2.8 software for structural equation modeling (SEM) techniques applied in this research analysi

Are Multi-criteria Decision Making Techniques Useful for Solving Corporate Finance Problems? A Bibliometric Analysis // ¿Son adecuadas las técnicas de decisión multicriterio para resolver los problemas financieros corporativos? Un análisis bibliométrico

Corporate financial decision making processes (selection of investments and funding sources) are becoming increasingly complex because of the growing number of conflicting criteria that need to be considered. The main aim of this paper is to perform a bibliometric analysis of the international research on the application of multicriteria decision making (MCDM) techniques to corporate finance issues during the period 1980-2012. A total of 347 publications from the Scopus database have been compiled, classified and analysed. The results obtained confirm: a) an increase in the importance of MCDM in corporate finance; b) the relevance of MCDM techniques in capital budgeting processes (fixed assets investment) and in the assessment of firms' economic and financial performance; c) the techniques based on the multiple attribute utility theory (MAUT) are the most popular in complex decision making situations as they are very simple to implement.------------------------------------Los procesos de decisión de selección de inversiones y de las fuentes de financiación de las empresas se caracterizan por una creciente complejidad, dada la confluencia del cada vez mayor número de criterios a considerar. El objetivo de este trabajo es realizar un análisis bibliométrico de la producción cientíca internacional que ha abordado la problemática asociada a las finanzas corporativas mediante la implementación del paradigma de Decisión Multicriterio (MCDM) durante el periodo 1980-2012. Un total de 347 publicaciones han sido recopiladas de la base de datos de Scopus, clasificadas y analizadas. De los resultados obtenidos cabe destacar lo siguiente: a) se ha producido un considerable incremento del uso de las técnicas multicriterio en finanzas corporativas; b) las técnicas MCDM se han empleado fundamentalmente en la selección de inversiones productivas, evidenciándose igualmente su utilidad para la evaluación de la situación económico-financiera de las empresas; c) las técnicas basadas en la teoría de la utilidad multiatributo (MAUT) han sido las más empleadas, dada su relativa sencillez operativa

The capital budgeting process: a methodological approach based on financial and intellectual value creation

Objeto: El objetivo de este artículo es presentar una novedosa metodología de valoración de inversiones productivas basada en la estimación del valor total creado con cada proyecto de inversión, considerando para ello sus dos componentes: el valor financiero y el valor del capital no financiero, este último derivado del capital intelectual corporativo. Diseño/metodología: Se propone una metodología basada en la técnica multicriterio del proceso analítico jerárquico (AHP, por sus siglas en inglés). En este modelo, se definen cuatro criterios principales (capital financiero, capital humano, capital estructural, y capital relacional), varios subcriterios y las alternativas de inversión. Para determinar el valor total de cada alternativa, se requieren juicios de valor por parte de los directores generales de las empresas, información obtenida a través de un cuestionario basado en comparaciones pareadas, cuyos resultados alimentan una función de utilidad multiatributo. Un caso de estudio del sector agroalimentario ilustra la aplicabilidad práctica del modelo. Aportaciones y resultados: La aplicación empírica evidencia la necesidad de considerar el impacto de las inversiones productivas en el capital intelectual de la empresa, pues este impacto influye en la selección de la alternativa de inversión óptima. Limitaciones: Las conclusiones alcanzadas se consideran aún provisionales, dado que se trata de un estudio pionero con una aplicación empírica reducida a sólo cinco empresas. Implicaciones prácticas: Mediante el modelo teórico propuesto, los directores generales pueden valorar las inversiones productivas incorporando en el análisis, de manera formalizada, la creación de valor del capital no financiero. Este procedimiento permite tomar decisiones más adecuadas, contribuyendo de manera efectiva a seleccionar la alternativa de inversión que maximice el valor de mercado de la compañía. Valor añadido: Como principal aportación de este trabajo se destaca la incorporación del enfoque del capital intelectual en el proceso de valoración de inversiones productivas en la empresa y la propuesta de un marco metodológico formalizado y unificado.Purpose: This paper aims to develop a novel capital budgeting method to improve the quality of the appraisal process for productive investments by decomposing the total value that is created by the new assets into two components: financial value and nonfinancial capital value, the latter stemmed from the intellectual capital of the firm. Design/methodology/approach: This paper proposes a methodology based on the multi-criteria technique called the Analytic Hierarchy Process (AHP). Within the model, four main criteria (financial capital, human capital, structural capital, and relational capital), several subcriteria and the investment alternatives are defined. In order to determine the total value of each alternative, CEO preferences are required using a pairwise comparison-based questionnaire, the results of which feed a multiattribute utility function. A case study on the agrifood sector illustrates the model empirically. Findings and Originality/value: The empirical application evidences the need to consider the impact of productive investments on firms´ intangible assets, as this impact actually affects the choice of optimal investment alternative in the real world. Practical implications: Using the theoretical model proposed, CEOs can appraise productive investments by incorporating nonfinancial capital value creation into the analysis. This procedure permits more accurate and successful decision-making and contributes effectively to the selection of the investment option that maximizes firms’ market value. Originality/value: This research provides an important addition to the current literature by integrating intellectual capital into capital budgeting and by proposing a unified methodological framework.Peer Reviewe