88 research outputs found
General solutions for choice sets: The Generalized Optimal-Choice Axiom set
No full textIn this paper we characterize the existence of best choices of arbitrary binary relations over non finite sets of alternatives, according to the Generalized Optimal-Choice Axiom condition introduced by Schwartz. We focus not just in the best choices of a single set X, but rather in the best choices of all the members of a family K of subsets of X. Finally we generalize earlier known results concerning the existence (or the characterization) of maximal elements of binary relations on compact subsets of a given space of alternatives.Generalized Optimal-Choice Axiom; maximal elements; acyclicity; consistency; ≻-upper compactness
UK market, financial databases and evidence of bias
No full textAndrikopoulos author contribution 50%.
A paper in the Leicester Business School's Occasional Paper Series for which submissions are internally peer reviewed. ISBN: 9781857213805
Corporate hedging, firm risk, value, and performance : evidence from UK firms
No full textThis study investigates the corporate hedging decisions associated with firm value, performance, and risk. A number of theories in risk management literature suggest that, in market imperfections, the use of derivative instruments for hedging purposes increases firm value overall by mitigating agency costs and a firm’s returns variability. Using a sample of UK nonfinancial listed firms during the period 2005-2012, we examine: (i) the effect of investment inefficiency on corporate hedging decisions; (ii) the impact of the use of foreign currency (FX), interest rate (IR), and commodity (CM) derivatives on firm value and performance; and (iii) the association between the corporate risk hedging and both stock returns volatility and the cost of equity capital implied in stock prices. We document new evidence regarding the effect of investment inefficiencies on hedging decisions. We find that hedging is strongly and positively associated with underinvestment or overinvestment, which confirms Morellec and Smith’s (Review of Finance, 2007, 11, 1-23) theoretical analysis. We find strong evidence that derivative usage has differential firm valuation and performance effects depending on the financial risk type, contract type, and time of hedging strategies. Consistently, we find that FX risk hedging positively influences firm value and performance, while there is no significant result of IR risk hedging associated with the firm value creation which means that IR derivatives can be used for hedging or speculative purposes. Not surprisingly, the results show that forwards and swaps for FX risk hedge are positively and significantly associated with firm value over the time period, while firms associated with financial constraints are highly motivated to use options contracts. Finally, our results show that the stock returns volatility, on average, is lower when firms exercising hedging decisions overall, where a decline in the implied cost of equity is substantial. Our empirical results confirm these predictions and robust after employing various methods (e.g. special regressor, instrumental variables (IV-GMM), treatment effects, propensity score matching (PSM), and difference-in-differences (DiD)) to address potential endogeneity issues. However, our findings indicate that, consistent with the notion of the positive theory of financial risk management, the corporate hedging has economic values to derivative users
The Quasimetrization Problem in the (Bi)topological Spaces
No full textIt is our main purpose in this paper to approach the quasi-pseudometrization problem in (bi)topological spaces in a way which generalizes all the well-known results on the subject naturally, and which is close to a “Bing-Nagata-Smirnov style” characterization of quasi-pseudometrizability
Corporate hedging, firm risk, value, and performance : evidence from UK firms
No full textThis study investigates the corporate hedging decisions associated with firm value, performance, and risk. A number of theories in risk management literature suggest that, in market imperfections, the use of derivative instruments for hedging purposes increases firm value overall by mitigating agency costs and a firm’s returns variability. Using a sample of UK nonfinancial listed firms during the period 2005-2012, we examine: (i) the effect of investment inefficiency on corporate hedging decisions; (ii) the impact of the use of foreign currency (FX), interest rate (IR), and commodity (CM) derivatives on firm value and performance; and (iii) the association between the corporate risk hedging and both stock returns volatility and the cost of equity capital implied in stock prices. We document new evidence regarding the effect of investment inefficiencies on hedging decisions. We find that hedging is strongly and positively associated with underinvestment or overinvestment, which confirms Morellec and Smith’s (Review of Finance, 2007, 11, 1-23) theoretical analysis. We find strong evidence that derivative usage has differential firm valuation and performance effects depending on the financial risk type, contract type, and time of hedging strategies. Consistently, we find that FX risk hedging positively influences firm value and performance, while there is no significant result of IR risk hedging associated with the firm value creation which means that IR derivatives can be used for hedging or speculative purposes. Not surprisingly, the results show that forwards and swaps for FX risk hedge are positively and significantly associated with firm value over the time period, while firms associated with financial constraints are highly motivated to use options contracts. Finally, our results show that the stock returns volatility, on average, is lower when firms exercising hedging decisions overall, where a decline in the implied cost of equity is substantial. Our empirical results confirm these predictions and robust after employing various methods (e.g. special regressor, instrumental variables (IV-GMM), treatment effects, propensity score matching (PSM), and difference-in-differences (DiD)) to address potential endogeneity issues. However, our findings indicate that, consistent with the notion of the positive theory of financial risk management, the corporate hedging has economic values to derivative users
Risk exposure and performance in the banking sector : a comparative investigation of Islamic, conventional, and Islamic window banks
No full textThe core business of banks involves the operation of a payment system. They are also perceived as primary sources of credit and a safe location for individuals and businesses that want to deposit cash. As a system, the banks play the role of facilitating resources from those who have more than they require (depositors) to those who need them (borrowers). Through playing this role, banks deliver benefits to all involved and the economy in general. However, there are inherent risks in this process which could leave the banks exposed to numerous kinds of threat that could have a severe impact on the banks themselves and the economy where they operate. Risk is a critical issue for banks as they act as risk intermediaries. Failure to manage this risk may result in a global market failure such as the recent financial crisis 2007-2009, which showed empirically how damaging a banking crisis can be. Upper and Worms (2004) showed that failure in a single bank might lead to a 15 percent breakdown of the entire banking sector in terms of assets.Focusing on the differences between Islamic, conventional, and Islamic window banks, this study investigates credit, liquidity, operating and solvency risk and its determinants for these three types of banks. It uses a sample of 950 banks from 55 countries during three periods: 2006-2015 (full sample period), 2007-2009 (global financial crisis), and 2010-2013 (sovereign debt crisis). The study proves, empirically, that risk in Islamic banks is substantially different from that in other types of banks. Islamic banks were stronger in credit position than conventional banks during the global financial and sovereign debt crises. The results also suggest that Islamic banks are less stable with respect to liquidity-based risk, particularly during sovereign debt crisis. The results also reveal Islamic banks have more operating and insolvency risk. Furthermore, the findings suggest that risk in Islamic banks is generally determined differently from conventional and Islamic window banks by the bank-specific factors and the macroeconomic factors of the countries in which the banks operate.Another main focus of this study is to investigate the drivers of financial institutions’ performance. In particular, this study examines the effect of four different types of risk (credit, liquidity, operating, and insolvency risk) on performance. We employed a large sample of 950 banks from 55 countries; we divide the periods into three periods: 2006-2015 (full sample period); 2007-2009 (global financial crisis); and 20110-2013 (severing debt crisis). Remarkably, it can be noted from the statistical regression that operating risk is the most substantial risk, and credit risk is the least significant driver of bank's performance
Risk exposure and performance in the banking sector : a comparative investigation of Islamic, conventional, and Islamic window banks
No full textThe core business of banks involves the operation of a payment system. They are also perceived as primary sources of credit and a safe location for individuals and businesses that want to deposit cash. As a system, the banks play the role of facilitating resources from those who have more than they require (depositors) to those who need them (borrowers). Through playing this role, banks deliver benefits to all involved and the economy in general. However, there are inherent risks in this process which could leave the banks exposed to numerous kinds of threat that could have a severe impact on the banks themselves and the economy where they operate. Risk is a critical issue for banks as they act as risk intermediaries. Failure to manage this risk may result in a global market failure such as the recent financial crisis 2007-2009, which showed empirically how damaging a banking crisis can be. Upper and Worms (2004) showed that failure in a single bank might lead to a 15 percent breakdown of the entire banking sector in terms of assets.Focusing on the differences between Islamic, conventional, and Islamic window banks, this study investigates credit, liquidity, operating and solvency risk and its determinants for these three types of banks. It uses a sample of 950 banks from 55 countries during three periods: 2006-2015 (full sample period), 2007-2009 (global financial crisis), and 2010-2013 (sovereign debt crisis). The study proves, empirically, that risk in Islamic banks is substantially different from that in other types of banks. Islamic banks were stronger in credit position than conventional banks during the global financial and sovereign debt crises. The results also suggest that Islamic banks are less stable with respect to liquidity-based risk, particularly during sovereign debt crisis. The results also reveal Islamic banks have more operating and insolvency risk. Furthermore, the findings suggest that risk in Islamic banks is generally determined differently from conventional and Islamic window banks by the bank-specific factors and the macroeconomic factors of the countries in which the banks operate.Another main focus of this study is to investigate the drivers of financial institutions’ performance. In particular, this study examines the effect of four different types of risk (credit, liquidity, operating, and insolvency risk) on performance. We employed a large sample of 950 banks from 55 countries; we divide the periods into three periods: 2006-2015 (full sample period); 2007-2009 (global financial crisis); and 20110-2013 (severing debt crisis). Remarkably, it can be noted from the statistical regression that operating risk is the most substantial risk, and credit risk is the least significant driver of bank's performance
∗-half completeness in quasi-uniform spaces
No full textRomaguera and Sánchez-Granero (2003) have introduced the notion of T1∗-half completion and used it to see when a quasi-uniform space has a ∗-compactification. In this paper, for any quasi-uniform space, we construct a ∗-half completion, called standard ∗-half completion. The constructed ∗-half completion coincides with the usual uniform completion in the uniform spaces and is the unique (up to quasi-isomorphism) T1 ∗-half completion of a symmetrizable quasi-uniform space. Moreover, it constitutes a ∗-compactification for ∗-Cauchy bounded quasi-uniform spaces. Finally, we give an example which shows that the standard ∗-half completion differs from the bicompletion construction
Characterization of the existence of semicontinuous weak utilities for binary relations
No full textSemicontinuous utility, Acyclicity, Consistency, Satiation, , D11,
Characterization of the Generalized Top-Choice Assumption (Smith) set
No full textIn this paper, I give a characterization of the Generalized Top-Choice Assumption set of a binary relation in terms of choice from minimal negative consistent superrelations. This result provides a characterization of Schwart's set in tournaments.Negative Consistency, Generalized Top-Choice Assumption (Smith) set, Generalized Optimal-Choice Axiom (Schwartz) set.
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