TACA

The airline industry is energy intensive, has high fixed costs and its demand is very sensitive to the economic cycle. After the industry worldwide undergoes deregulation, starting with the United States in 1978, two distinct business models develop. Traditional carriers operate hub and spoke networks, offer onboard service and engage in price discrimination, whereas low cost carriers operate point to point, charge for all services and have simple tariffs. TACA begins operations in Central America in 1931 and, by 1943, has a footprint that extends from the United States to Argentina. In 1998–2001 TACA faces increased competition and a significant market downturn. In 2004 TACA CEO Roberto Kriete launches Centroamérica Fácil to stimulate air traffic in the airline\u27s base countries

Banco Solidario S.A.: The Recovery Strategy, 2000–2004

Five years passed since, in April, 2000, Kurt Koenigsfest took over as the Chief Executive Officer at Banco Solidario S.A. (BancoSol), in La Paz, Bolivia. BancoSol had become the top Latin American bank specializing in providing microbusiness services. Since its beginning in 1992, BancoSol achieved excellent results and became an international reference in the microcredit area. In mid-2000, external and internal factors caused its performance to deteriorate. Kurt and his management team set and implemented a strategy that led the bank to be rated as the best financial institution in the Bolivian financial system in 2004. The time had come to plan for the future; the management team has to establish BancoSol\u27s primary lines of action for the next three years

Beating Market Expectations, Analysts’ Forecasts Dispersion and the Pricing of Credit Default Swaps

The purpose of this paper is to study the impact of beating analysts’ forecasts and the impact of analysts’ forecast dispersion on the pricing of firms’ credit default swaps (CDSs). CDS premium is the compensation required by investors for bearing firms’ credit default risk. Sell-side analysts collect market, industry and firm information and provide important information in the form of stock recommendations, stock price targets and accounting number forecasts. For that reason, the information contained in their forecasts may provide additional information to investors to price CDSs. My results show that firms that beat analysts’ earnings and revenue forecasts, and firms with less dispersed analysts’ earnings and revenue forecasts have on average a reduction in their CDS premia around the earnings announcement date. These effects are stronger for firm that jointly beat the two forecasts and for firms with high risk of default. I also document that the effect of beating analysts’ earnings (revenue) forecasts is stronger for firms with more (less) earnings quality

Does Beating Cash Flow Benchmarks Reduce the Cost of Debt?

This paper examines whether beating previous year cash flow values and analysts\u27 cash flow forecasts impact the firms\u27 cost of debt. Creditors are expected to be more concerned about firm solvency than firm profitability. Accordingly, if lenders have any reference point it may be related to cash flow numbers. This study finds that firms that beat analysts\u27 cash flow forecasts have smaller initial bond yield spreads in the next period and a decrease in their initial bond yield spreads between consecutive periods. This effect is more pronounced at short maturities and for observations with less informative earnings. Firms with lower earnings response coefficients that beat analysts\u27 cash flow forecasts show a higher probability of a credit rating upgrade

The Stock Market’s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract

The purpose of this paper is to explore the stock market’s reaction to quarterly financial statements. We focus our study in two countries that are participating in the Latin American Integrated Market (MILA): Peru and Chile. We find that the cumulative abnormal returns and the absolute value of the cumulative abnormal trading are explained principally by the quarterly earnings surprises around the financial statements release date. We find that these effects are more pronounced in small firms, confirming that due to the lower level of pre disclosure information accounting numbers are the main source of information. Key words: Accounting Information, Stock Markets, Small Firms

High-Temperature Superconducting Level Meter for Liquid Argon Detectors

Capacitive devices are customarily used as probes to measure the level of noble liquids in detectors operated for neutrino studies and dark matter searches. In this work we describe the use of a high-temperature superconducting material as an alternative to control the level of a cryogenic noble liquid. Lab measurements indicate that the superconductor shows a linear behaviour, a high degree of stability and offers a very accurate determination of the liquid volume. This device is therefore a competitive instrument and shows several advantages over conventional level meters.Comment: 13 pages, 11 figures. Accepted for publication in JINS

S 111 and the polarization of the B[e] supergiants in the Magellanic Clouds

We have obtained linear polarization measurements of the Large Magellanic Cloud B[e] supergiant S 111 using optical imaging polarimetry. The intrinsic polarization found is consistent with the presence of an axisymmetric circumstellar envelope. We have additionally estimated the electron density for S 111 using data from the literature and revisited the correlation between polarization and envelope parameters of the B[e] supergiant stars using more recent IR calibration color data. The data suggest that the polarization can be indeed explained by electron scattering. We have used Monte Carlo codes to model the continuum polarization of the Magellanic B[e] supergiants. The results indicate that the electron density distribution in their envelopes is closer to a homogeneous distribution rather than an r$^{-2}$ dependence. At the same time, the data are best fitted by a spherical distribution with density contrast than a cylindrical distribution. The data and the model results support the idea of the presence of an equatorial disk and of the two-component wind model for the envelopes of the B[e] supergiants. Spectropolarimetry would help further our knowledge of these envelopes