Institutional investors and corporate risk at the origin of the international financial crisis

The 2007 financial crisis served as a stark reminder of the vulnerability in the relationship between institutions and companies, as it revealed that many companies collapsed despite government interventions. Two crucial factors that influenced the crisis’s impact on firms were the level of creditor rights protection and corporate risk management. In this study, our aim was to investigate the impact of investment funds and banks on corporate risk prior to the 2007 financial crisis. We conducted an analysis across 21 countries to examine how institutional factors determined the influence of mutual funds and banks on corporate risk, ultimately leading to critical levels of collapse and the global spread of the financial crisis to the real economy. Additionally, we explored the role of mutual funds and banks as reference shareholders. The findings of our study reveal that the process of financial deregulation preceding the 2007 financial crisis contributed to an increase in corporate risk. In other words, financial deregulation facilitated greater involvement of institutional investors in companies, thereby encouraging the adoption of excessively risky and speculative strategies that were not necessarily aligned with the long-term sustainability of firms

Introducción a las Finanzas: Teoría y Práctica

El presente manual presenta los fundamentos básicos de las finanzas de mercado y corporativas para los alumnos de los distintos grados de administración y dirección de empresas, finanzas o economía. Desde un punto de vista teórico-práctico, se abordan aspectos relacionados con la matemática financiera, la administración financiera y las fuentes de financiación a corto plazo, el working capital y las necesidades operativas de fondos, los análisis de ratios y de sensibilidad, y la estructura de capital. Asimismo, se ofrece, en el capítulo final, una serie de funciones financieras con Excel

The impact of COVID-19 outbreak on hotels' value compared to previous diseases: the role of ALFO strategy

By using the Event Study Method (ESM), this paper aims to examine the effect of new coronavirus (SARS-CoV-2) disease (COVID-19) outbreak on the market performance of the hotel industry in the U.S. We also compare the impact of COVID-19 outbreak with three previous diseases outbreaks. The results show that there is a negative influence of the diseases outbreaks on stock returns of hotels in the U.S. However, the impact of COVID-19 is incomparably higher in magnitude compared to previous diseases. Furthermore, given the importance of following flexible corporate strategies to adapt to new and unpredicted situations, it is found that the ALFO (assets-light, fee-orientated) strategy acts as a mitigator for the predicted market value drop due to the pandemic.Spanish Public Funds through the Min-istry of Science and Innovation [PID2020-114797GB-I00]Ministerio de Ciencia e Innovación, MICINN: PID2020-114797GB-I0

Riesgo corporativo y crisis financiera: el papel de los inversores institucionales

Given that institutional investors have played an important role in the financial crisis spread to the real economy, this paper analyzes the behavior of active and passive institutional investors in a period of financial deregulation. Thus, we study the relationship between institutional ownership structure and corporate risk taking for a sample of companies from 21 OECD countries for the period 2001-2008. Our results suggest that, in a process of financial deregulation, the lack of an effective control mechanism has resulted in an over-investment in high risk projects by institutional investors. We also found that passive institutional investors like banks have behaved as active investors, increasing levels of corporate risk taking.Este trabajo ha obtenido el Accésit Premio Estudios Financieros 2013 en la modalidad de Contabilidad. Teniendo en cuenta que los inversores institucionales han jugado un papel importante en la propagación de la crisis financiera a la economía real, el presente trabajo analiza el comportamiento de inversores institucionales activos y pasivos en un periodo de desregulación financiera. Así, se estudia la relación entre la estructura de la propiedad institucional y el riesgo corporativo para una muestra de empresas de 21 países de la OCDE para el periodo 2001-2008. Nuestros resultados sugieren que, en un proceso de desregulación financiera, la falta de un mecanismo de control eficaz ha dado lugar a un exceso de inversión en proyectos de elevado riesgo por parte de los inversionistas institucionales. También encontramos que los inversores institucionales pasivos como los bancos se han comportado como inversores activos, aumentando los niveles de riesgo corporativo

Valorización de empresas en Latinoamérica. Estudio de caso: Unión Andina de Cementos S.A.A. (UNACEM)

Este manual pretende acercar el proceso de valorización de empresas a través de un estudio de caso. Así, de manera desarrollada y pormenorizada, en el estudio de caso se van planteando las distintas fases que han de seguirse a la hora de valorizar una empresa, como son el análisis del entorno, el análisis interno de la empresa, el estudio de sus estados financieros, etc. Asimismo, se ofrecen distintas herramientas para lograr hacer una correcta proyección de resultados y evolución del balance, para así poder aplicar metodologías como el descuento de flujos y poder aproximar un valor de mercado de la empresa

Institutional investors and corporate risk at the origin of the international financial crisis

The 2007 financial crisis served as a stark reminder of the vulnerability in the relationship between institutions and companies, as it revealed that many companies collapsed despite government interventions. Two crucial factors that influenced the crisis’s impact on firms were the level of creditor rights protection and corporate risk management. In this study, our aim was to investigate the impact of investment funds and banks on corporate risk prior to the 2007 financial crisis. We conducted an analysis across 21 countries to examine how institutional factors determined the influence of mutual funds and banks on corporate risk, ultimately leading to critical levels of collapse and the global spread of the financial crisis to the real economy. Additionally, we explored the role of mutual funds and banks as reference shareholders. The findings of our study reveal that the process of financial deregulation preceding the 2007 financial crisis contributed to an increase in corporate risk. In other words, financial deregulation facilitated greater involvement of institutional investors in companies, thereby encouraging the adoption of excessively risky and speculative strategies that were not necessarily aligned with the long-term sustainability of firms

CSR in Education on Business Confidence: Mediation Effect of Corporate Reputation in the Peruvian Banking Sector

This paper analyzes the direct influence of CSR educational actions on business confidence in the context of the banking sector in an emerging country (Peru). A mediating effect through corporate reputation is also analyzed. To test the hypotheses presented in this paper, we have sent a survey to 1745 executive officers of the branches of the banks. These key individuals were selected as the target population of the study because the authors sought to study the management’s perception of CSR and business confidence. From the data obtained from the survey, it has been tested that educational CSR actions in Peruvian banks directly influences the perception of business confidence. Secondly, this relationship is partially mediated by the effect of CSR educational actions on corporate reputation

Are religion and culture relevant for corporate risk-taking? International evidence

Using a large sample of firms from 37 countries over the period of 2007–2015, we empirically analyse the impact of religion and national culture characteristics on the level of corporate risk-taking around the world and the channels through which this can take place. First, we initially observe that different religious backgrounds have different impacts on corporate risk-taking, these being negative for Catholic and Islamic-based countries and positive for firms in Protestant nations. Secondly, we observe that companies in countries with high scores of power distance, masculinity, individualism and long-term orientation tend to increase risk-taking while high levels of uncertainty avoidance moderates corporate risk-taking behavior. We also show results that in companies where institutional investors are the most relevant reference shareholder the influence of religion on corporate risk-taking is not felt, unlike when the main shareholder is an individual or a family. JEL classification: G15, G32, G34, Keywords: Corporate risk-taking, National culture, Religion, Ownership structur

Avaliação de uma instituição financeira usando o CAMEL: o caso do BBVA Perú

El presente caso de estudio busca analizar la situación financiera BBVA Perú, utilizando la metodología CAMEL, y plantear una correcta valoración de la entidad, bajo los métodos de Múltiplos Comparables y Flujo de Caja Descontado. Previamente, se describe el entorno económico bajo la metodología Top-Down: región, país, sector financiero y, por último, la empresa. El periodo de desarrollo es de 2015 a 2019 y se utiliza datos de producción, industria y tecnología. Además, se describe las operaciones del banco, detallando la estructura de ingresos, los productos y servicios financieros, políticas y gobierno corporativo

Evaluación de una entidad financiera usando Camel: el caso de BBVA Perú

The present case study was aimed at analyzing the financial situation of BBVA Peru using the CAMEL methodology. Additionally, a proper valuation was carried out using Comparable Multiples and Discounted Cash Flow methods. The first was to describe the economic environment through a Top-Down methodology: region, country, financial sector, and company. The period of analysis was 2015-2019. The data analyzed belonged to production, industry, and technology. Moreover, the bank operations are presented detailing the income structure, financial products and services, politics, and corporate governance.El presente caso de estudio busca analizar la situación financiera BBVA Perú, utilizando la metodología CAMEL, y plantear una correcta valoración de la entidad, bajo los métodos de Múltiplos Comparables y Flujo de Caja Descontado. Previamente, se describe el entorno económico bajo la metodología Top-Down: región, país, sector financiero y, por último, la empresa. El periodo de desarrollo es de 2015 a 2019 y se utiliza datos de producción, industria y tecnología. Además, se describe las operaciones del banco, detallando la estructura de ingresos, los productos y servicios financieros, políticas y gobierno corporativo