Risk assessment in the context of internal audit in Greek listed companies at Athens stock exchange

The objective of this paper is to highlight the strength of risk assessment within the framework of internal audit and the value could be added to modern enterprises, through its role, as a major component in modern corporate governance. Reviewing literature we concluded in applying four logistic models (logit regression), using three sets of variables for fiscal year 2010. According to our estimations, risk assessment within the framework of internal audit is positively affected by the existence of a risk management committee, the board of directors' size, the percentage of non-executive members of the board, compliance risk and environmental and security risk. These findings are partially consistent with literature. In addition, it is not affected by any other kind of risk, entity’s size or subsidiaries and affiliated companies which do not match with literature. Possible explanatory factors could be either, that Greek Listed companies may be staffed with law skilled executives, or the rapid fall of the index in Athens Stock Exchange, after global recession of 2008. As far as we know there is no other research for Greek firms in risk assessment within the framework of internal audit. So, this paper contributes to research in this field.peer-reviewe

The capital asset pricing model : a review of the issues

The aim of this paper is to review the literature relating to the theoretical basis of the Capital Asset Pricing Model (CAPM). The derivation of the CAPM is presented, followed by the empirical tests of it. There exists some further research however which is also presented, that criticize the CAPM, since it has often been challenged by statistical studies that fail to verify the validity of the model, as an adequate description of the way assets are priced.peer-reviewe

Stock returns and interest rates : the case of Greece

This paper examines the influence of interest rate changes on stocks’ returns for seven portfolios, which have been constructed from various industries of the Greek Economy. For that purpose we use the two–factors model. The present paper, using the Augmented Market Model, aims at analysing stock returns of those Greek Economy industries that are listed at the Athens Stock Exchange with reference to the interest rate changes.peer-reviewe

Universal banks and stock-market reaction: Some evidence from major announcements

Purpose – The purpose of this paper is to investigate the interface between the banking and insurance sectors. Using capital market data, the paper aims to discover any significant equity returns around the announcement date of these bank-insurance interfaces. Design/methodology/approach – The analysis employs an event study methodology to evaluate the equity performance of these institutions. The empirical findings are based on well-known financial intermediaries taken from an international sample. Findings – The magnitude and sign of equity returns appear to differ among the cases examined. Some firms exhibit considerable abnormal returns, while others remain passive to any corporate restructuring revelation, or even undrape stock market losses. In many cases, the latter is associated with the overall economic environment, and/or with investments that are not compatible with the general banking philosophy of “fast growth within short-term horizons.” Based on equity returns, the bank-insurance interface seems to be the most preferable business restructuring; while insurance divestments and horizontal mergers, among financial intermediaries, do not perform as profitably as expected. Originality/value – The paper will be of value to those interested in capital markets with emphasis on universal banking and insurance. It is suitable for academics as well as practitioners.Banks, Conglomerates, Divestment, Equity management, Financial Institutions, Insurance