Journals UITM University of Information Technology and Management
Not a member yet
1100 research outputs found
Sort by
THE IMPACT OF DIESELGATE ON THE REQUIRED RATE OF RETURN ON EQUITY OF VW, BMW AND DAIMLER
No full textOur paper studies the impacts of the Dieselgate scandal on the required rate of return on equity investments into VW, Daimler, and BMW. The object of investigation is the beta coefficient that determines the risk premium in the Capital Asset Pricing Model (CAPM). Our research takes a deep dive into the developments from the turning point of the scandal (the EPA NOTICE 2015) on September 18, 2015 – when a Notice of Violation of the Clean Air Act was issued to Volkswagen by the EPA – to the end of February 2016. This period also covers FORMAL COMMENCEMENT 2016, when the U.S. Department of Justice first sued Volkswagen on behalf of the EPA. The spillover (contagion) effect of fraudulent practices of VW impacted BMW, Daimler and other companies in the industry that share a similar business model and market segment. Our research of historical market betas has not confirmed the expectation that in the context of the Dieselgate scandal the return required on equity investments into VW, Daimler, and BMW would soar. The Dieselgate scandal proves that the reliability of beta estimates is an inverse function of market volatility. Historical market beta is, therefore, not a good estimate of the required rate of return for the companies in question
INTEGRATING THE COST OF THE CARBON FOOTPRINT WITHIN THE INCOME STATEMENT – TESTS ON SEVEN POLISH FIRMS
Get PDFPurpose: Even if popular, carbon accounting is not yet compulsory for companies. However, it should be and certainly will be. From the state’s point of view, this will be a prerequisite to respecting its international commitments. From the point of view of companies, it is also necessary because they use, in part for free, limited resources to create value-added […] and they generate externalities which are not yet fully measured and communicated. Our purpose is to propose a relatively new metric, which is quite simple and could be applied to all companies, especially small ones (turnover < EUR 10 million). Design/methodology/approach: Our metric in this paper is linked to the income statement and measurement of the output of carbon used in the production process of goods and/or services. We compare the use of carbon by seven Polish companies in seven different sectors from 2014 to 2020. The metric is computed in the same way for the firms in our sample and is based on information which must be stated on the yearly income statement. Findings: From our empirical tests, we observe that comparison can first be made between firms and sectors. As expected, the impact is far more important for industries than for service companies. In terms of volatility, we reach the same result. However, this volatility is not linked to the nature of the companies but more to the volatility of the carbon price. As a first step, this gives an interesting and rough measure of the cost of the carbon emission per company per year
PREDICTING MOBILE BANKING ADOPTION: AN INTEGRATION OF TAM AND TPB WITH TRUST AND PERCEIVED RISK
Get PDFMobile banking has been a game changer for financial organizations in terms of remote banking services. However, many customers remain uncertain due to its security. Therefore, improving the comprehension of the customer’s reasons and methods of using bank sites, including their behaviour towards e-banking, is crucial. This article discusses the matter by suggesting a technology acceptance model that integrates the theory of the planned behavior model in the classic TAM model with trust and perceived risk in order to elucidate the aspects that influence users’ acceptance of mobile banking applications in Palestine. This study is designed to give both theoretical and empirical support for e-commerce adoption. We are also capable in providing particular marketing ideas for practitioners in relation to the uptake of mobile banking
FRAUD AND BANK PERFORMANCE IN NIGERIA – VAR GRANGER CAUSALITY ANALYSIS
Get PDFThis paper examines the causality between fraud and bank performance in Nigeria over the period 2000-2016 for quarterly financial data using Johansen’s Multivariate Cointegration Model and Vector Autoregressive (VAR) Granger Causality analysis. The results show a long-run relationship between the variables. Bank performance was found to be linked to Granger fraud variables and vice versa at 10% significant level. This study reveals that there was a direct causal relationship between bank performance and fraud because increase in fraudulent activities in the banking sector leads to reduction in bank performance. Hence, this study recommends that internal control systems of banks should be strengthened so as to detect and prevent fraud. In this way, bank assets would be protected. 
SIZE OF BANKS AS A FACTOR WHICH IMPACTS THE EFFICIENCY OF THE BANK LENDING CHANNEL
Get PDFIn most economies the banking sector plays the major role in the financial system. Therefore, it is of great importance to analyse and understand the mechanism of transmission of monetary policy and its impact on the banking sector. One of the possible repercussions of changing the level of official interest rates is the ability to influence the size of bank lending, by means of the bank lending channel. The key aspect our research is a thorough understanding of the functioning of the bank lending channel, with the main goal of this study being an examination of the efficiency of monetary policy transmission through the bank lending channel depending on the size of banks in the sector. This paper examines the abovementioned relation using annual data from 1995-2015 by 1709 commercial and cooperative banks from 27 EU countries and analyzing them in various econometric models. The results indicate that there is a positive impact of a bank’s size on loan growth (defined as the bank size increases, the impact of changes in interest rates in the bank’s lending policy is getting smaller), however, interaction between the variables of size and the interest rate, was proved to be insignificant (in the group of all analysed banks, as well as in commercial and cooperative banks separately). 
IS BIGGER BETTER? THE IMPACT OF THE SIZE OF BANKS ON CREDIT RATINGS
Get PDFThe aim of the paper was to analyse the factors influencing European banks’ credit ratings by taking into account the size of these institutions. A literature review onthe indicators that can impact bank notes has been made. As a result, the following hypotheses have beendrawn:banks’ capital adequacy, profitability, liquidity and management quality have a significant influence on bank credit ratings. Bigger banks receive higher credit ratings than the smaller ones in similar financial conditions. To verify the presented hypotheses ordered logit panel data models have been used. The analysis has been prepared by using the quarterly data from the Thomson Reuters database for the period between 1998 to 2015. The European banks’ long-term issuer credit ratings proposed by S&P, Fitch and Moody are used as dependent variables. The sample has been divided into subsamples according to the size of a bank andbanking sector and capitalization. 
CREDIBILITY OF FOREIGN DISCRIMINATORY MODELS IN RELATION TO THE ASSESSMENT OF THE FINANCIAL CONDITION OF POLISH ENTERPRISES. CASE STUDY OF E. ALTMAN’S METHOD
Get PDFThe article is an attempt to assess whether foreign discriminatory models can be used in conditions of the Polish economy. To date, there is no one voice on this issue. There are views that this approach is wrong. It results from different factors affecting a given economy, or another character of the economy itself. Another issue is also differences in financial reporting of individual countries, which is translated into financial data. In turn, a different view is presented by the trend that foreign models can be used in the conditions of the Polish economy, while the differences that appear do not significantly affect the quality and reliability of the received diagnosis. Accordingly, the article attempts to verify both above positions. For the purposes of the study, the article presents the results of research on a sample of 25 bankrupt companies from the years 2012 to 2017, which declared liquidation bankruptcy, and their 25 healthy counterparts. The diagnosis of their financial situation was made using E. Altman’s model of 1983. The results of the study confirm the validity of the thesis that a more correct solution is to adopt the second thesis, namely foreign models can be used in the conditions of the Polish economy, but only after suitable modifications and consideration of the Polish economic conditions. In contrast, the use of foreign models without such a procedure should not take place. Such an approach may have an impact on receiving an incorrect diagnosis which does not correspond to the real situation in the surveyed entity. 
THE SIGNIFICANCE OF OPENNESS AND TRANSPARENCY FOR ACCOUNTABILITY IN PUBLIC FINANCES
Get PDFAn essential condition for asserting responsibility in public finances is that they are open and transparent. The Public Finance Act mentions ways of applying the principles of openness, and also stipulates the entities obliged to present data and information on public finances. There is, however, no legislation connected directly with transparency. So do the general requirements of classification and of accountancy and reporting principles constitute sufficient premises for accountability and asserting responsibility? An analysis of the reports and documents concerning the Polish public finance sector indicatesthat the processes of collecting and spending public funds are insufficiently transparent. The information system enables formal verification of discipline of public finances; however, it does not provide a sufficient basis to assess the effectiveness and efficiency, which are of key importance in terms of accountability. The aim of the article is to analyse the requirements and standards in the field of openness and transparency insofar as these concern the responsibility and accountability of public authorities, along with elements of how these are assessed in the Polish public finance system. A normative descriptive method was applied which took into consideration elements of finance theory, as well as an analysis of practical experience in the field of how public sector bodies function in Poland. The research objectives are realised mainly on the basis of a critical review of the literature on the subject, and an analysis of legal acts, reports and other documents of domestic and international institutions. The considerations and analyzes have led to several key applications to develop the principles of openness and transparency in relation to improving the accountability of public finances.
 
CORPORATE INCOME TAX RATES IN THE EU MEMBER STATES: WHY LOWER MEANS BETTER
Get PDFGovernments of EU Member States have been reducing statutory corporate income tax rates (“CIT”) for several years. What encourages them to take part in tax competition? The article discusses several issues which are in favor of lower CIT rates. They are selected based on their relevance. The study is performed with use of data available from applicable statistical bodies/literature and is based on literature review (especially in cases where required data is not available). It seems that the commonly raised issue of rivalry for capital in the globalizing world economy with highly mobile capital could be only one of a number of reasons for CIT rate depression. Tax competition is fueled by the various sizes of the economies of EU countries as well. The following important rationale may include the aspiration of governments to curb the local shadow economy. There are also some issues of a more theoretical nature that explain decreasing CIT rates. They include: (i) the necessity to accommodate CIT rate levels from the perspective of double taxation of dividends, (ii) the requirement to consider political responsibility of CI or (iii) the need to manage a deadweight loss. As a result of these challenges EU Member States often broaden the legal CIT base to maintain government revenues. 
EVALUATION OF THE FACTORS INFLUENCING BUSINESS BANKRUPTCY RISK IN POLAND
Get PDFThis article is devoted to the issue of assessing the causes of businessfailure. The presented studies answer two research questions – what are the causes of corporate bankruptcies in Poland and how to more effectively predict the scale of bankruptcies in the country. The author has conducted a study to analyze the specific endogenous and exogenous causes of company bankruptcy depending on the type of the bankruptcy with consideration of the three different phases of the crisis in enterprises. The research is based on 185 companies(60 bankrupt and 125 non-bankrupt firms) listed on the Warsaw Stock Exchange. For each company the author has calculated 14 different financial ratios for each of the six years before classifying the firm as bankrupt or non-bankrupt. The author has also done research to identify specific macroeconomic variables affecting the bankruptcy process of the companies in Poland. This provided specification of the manner and how strongly the various factors affect the quantity and intensity of bankruptcy applications in this region of Europe. Additionally, with the use of selected macroeconomic variables the author programmed a fuzzy logic model to forecast the general intensity of bankruptcies in Poland. This study is the first attempt at using fuzzy logic to predict the risk of bankruptcy in a macro aspect. The results demonstrate the great potential of this method. The received effectiveness of the fuzzy logic model is at the level of 84%.