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This project was developed with the intent of estimating the share value of NOS, SGPS at the end of 2022, in order to conclude if the shares were being traded at its fair value in the market. To do so, a comparison was performed between the actual value at which the shares were being traded, and the estimated value from a financial model. Only then, it is possible to deliver a final recommendation to potential investors on whether they should buy, sell, or hold these shares. NOS, SGPS is a Portuguese group of communications and entertainment, resulting from the merger between Zon Multimédia and Optimus Telecomunicações in 2013 – which at the time were two companies among the biggest players in the sector. The execution of the Equity valuation was carried out with the support of two methodologies: the Discounted Cash Flow approach, performing the Free Cash Flow to the Firm; and the Relative Valuation (multiples method). Additionally, data and information were extracted from the company’s Annual Reports and from other sources to support the analysis. The results obtained from the Equity valuation process suggest that the shares of NOS were undervalued at the period under analysis. Therefore, the final recommendation for potential investors is to buy the company’s shares. Este relatório foi desenvolvido com o intuito de estimar o preço das ações da empresa NOS, SGPS a Dezembro de 2022, a fim de determinar se as mesmas estariam a ser transacionadas ao seu preço justo no mercado. Deste modo, uma comparação será feita entre o preço efetivo das ações no mercado a essa data, e um preço estimado pelos modelos financeiros escolhidos para este relatório. Só então será possível providenciar potenciais investidores com uma recomendação sobre se devem comprar, vender, ou manter as ações da empresa. A NOS, SGPS é um grupo português de comunicações e entretinimento, fundado em 2013 a partir a fusão entre a Zon Multimédia e a Optimus Telecomunicações – que à data eram dois dos maiores concorrentes da indústria. O processo de avaliação da empresa foi efetuado com o suporte de duas metodologias: Fluxos de Caixa Descontados (DCF-FCFF), e a Avaliação dos Múltiplos. Adicionalmente, dados e informação foram extraídos dos Relatórios Anuais da empresa e de outras fontes para suportar a análise do relatório. Os resultados obtidos no processo de avaliação indicam que as ações da NOS estavam subvalorizadas no mercado no período sob análise. Consequentemente, a recomendação final para os potenciais investidores é de que devem comprar as ações da empresa.

We examine the inter-relationships among employee-friendly policies (EFP), innovation through R&D investment, and firm value. We hypothesize that firms with higher levels of innovation and entrepreneurial spirit are more likely to utilize EFP. Furthermore, we speculate that the value-EFP association is more pronounced in firms with high R&D intensity. Consistent with these assertions, we find that EFP is significantly and positively related to R&D investment and the number of patents. EFP is also associated with increased firm value at high levels of R&D investment and high numbers of patents. Furthermore, we find that firms investing more in R&D are more likely to treat their workers favorably and that markets react positively when such firms are recognized for their favorable treatment of employees. Our analysis, based on a large sample of U.S.-based firms and two different measures of employee-friendly policies, supports the assertion that EFP based on sustainable innovation and entrepreneurial mindsets contributes to value creation

PurposeIn particular, in this article, the authors investigate the degree of persistence in the credit-to-gross domestic product (GDP) ratio in 44 Organisation for Economic Co-operation and Development (OECD) economies in the context of nonlinear deterministic trends.Design/methodology/approachThe authors use Chebyshev's polynomials in time, which allow us to model changes in the data in a smoother way than by structural breaks.FindingsThis study’s results indicate that approximately one-quarter of the series display non-linear structures, and only Argentina displays a mean reverting pattern.Research limitations/implicationsPolicy implications of the results obtained are discussed at the end of the manuscript.Originality/valueThe authors use an approach developed that allows for non-linear trends based on Chebyshev polynomials in time, with the residuals being fractionally integrated or integrated of order d, where d can be any real value.

This paper investigates the impact of bank regulation and ownership on the risk-taking behavior of financial institutions in the MENA region. We test the hypothesis that the effect of regulation on bank risk depends on the type of ownership structure. The public and private views of bank regulation are used to explain the relationship between regulatory measures and bank risk. We find that the official supervisory index exerts a positively associated with bank credit risk which is in line with ‘private interest view’ of bank regulation; however, private monitoring does have an opposite effect. The analysis of the regulatory measures impact on bank insolvency risk provides further support of the private interest view regarding the impact of market discipline. In addition to regulations, ownership structure (e.g., ownership concentration and foreign ownership) also plays a significant role in shaping the risk-taking behavior of banks in the MENA region. Our analysis reveals that the effect of banking regulations on risk-taking behavior strongly depends on the type of ownership structure prevailing in each banking system (Islamic and conventional). Our findings inform regulatory authorities concerned with improving the financial stability of banking sectors in the MENA countries and other emerging economies where Islamic and conventional banks co-exist, to carefully tailor banking reform initiatives depending on the type of the banking system as they may pursue different risk management strategies. Supplementary Information The online version contains supplementary material available at 10.1007/s11846-022-00529-5.

This paper aims to extend earlier research on the relationship between corporate governance and corporate social responsibility (CSR) in the Japanese context. Using a sample of 125 Japanese companies listed on Tokyo Stock Exchange from 2010–2020, this paper investigates how outside directors impact the CSR outcomes of firms, and further how this relation is moderated by director shareholding and financial leverage. The results show that the proportion of outside directors positively affects the CSR outcome of firms, and director shareholding negatively moderates this relationship. Only a weak support is found for the negative moderating effect of financial leverage on the relationship between outside directors and CSR outcomes., This paper is based on my Master's thesis titled "Outside Directors and CSR in Japan: The Moderating Effect of Director Shareholding and Financial Leverage" submitted to the Graduate School of Economics, Kyoto University, in July 2021. The thesis was awarded "Best Dissertation of Graduate School of Economics 2021".

Purpose: The purpose of this study is to examine the impact of the transposition of the EU directive that regulates M&As on cross-border deals. Acquirers of targets located in the European Union (EU) must comply not only with takeover rules set individually by member states but also with European Council Directives. The most significant of these Directives in the context of mergers and acquisitions (M&As) is the Takeover Bids Directive (TBD). The intent of the Directive is to ensure equal treatment for all companies launching takeover bids or that are subject to a change in control, providing minimum harmonization rules in view of creating a transparent environment for cross-border takeovers., Authors are thankful for the helpful comments of Gilberto Loureiro (NIPE‐University of Minho) and of two anonymous referees. This paper is financed by National Funds of the FCT – Portuguese Foundation for Science and Technology within the project “UIDB/03182/2020”.

We show that risk-mitigating incentives dominate risk-shifting incentives in fragile banks. We study security trading by banks, as banks can easily and quickly change their risk exposure within their security portfolio. For identification, we exploit different crisis shocks and supervisory ISIN-bank-month-level data. Less capitalized banks take relatively less risk after financial stress shocks. Results hold within identical regulatory capital risk weights categories. Moreover, additional tests suggest that banks’ own incentives, rather than supervision, are the main drivers. Results hold for the different crisis shocks since 2007/08, including the COVID-19 one. A model of bank behavior rationalizes our findings.

Using lenders becoming members of the Task Force on Climate-Related Financial Disclosures (TCFD) as a plausible exogeneous shock, we examine whether and how lenders' commitment to transparent climate-related disclosures affects borrower firms' environmental performance. We find that client firms of TCFD-member lenders, relative to control firms, significantly improve their environmental performance after the TCFD launch. The effects are stronger for polluting firms. Moreover, TCFD-member lenders influence their borrowers' environmental performance via charging higher loan spread and reducing the number and amount of new loans issued to polluting firms. Finally, polluting clients of TCFD-member lenders experience tightened financial constraints subsequently.

We provide a lower-bound estimate of the undetected share of corporate fraud. To identify the hidden part of the "iceberg," we exploit Arthur Andersen's demise, which triggered added scrutiny on Arthur Andersen's former clients and thereby increased the detection likelihood of preexisting frauds. Our evidence suggests that in normal times only one-third of corporate frauds are detected. We estimate that on average 10% of large publicly traded firms are committing securities fraud every year, with a 95% confidence interval of 7%-14%. Combining fraud pervasiveness with existing estimates of the costs of detected and undetected fraud, we estimate that corporate fraud destroys 1.6% of equity value each year, equal to $830 billion in 2021.

One of the central debates in the empirical capital structure literature is the issue of capital structure stability. The purpose of this study is to examine the debate in the Nigerian context where it is largely an underexplored issue. This study employed the traditional leverage adjustment framework to examine the stability or adjustment of capital structure of a panel of Nigerian quoted firms in the presence of financing frictions. The population of this study comprised a panel of Nigerian quoted firms for the period 1999-2019 out of which 50 non-financial firms that met the data criteria were utilized as sample. Utilizing panel data generalized methods of moments (GMM) estimation techniques, the results revealed that capital structure variation overwhelms stability. The leverage measures exhibited strong sensitivities to firm-level variables, confirming trade-off, pecking order and market timing predictions. The target leverage was pro-cyclical in the sense of its sensitivity to macroeconomic variables. The study implications can be generalized to markets with similar characteristics, most notably that institutional rigidities exacerbate adjustment costs and, by extension, the gravitation of firms' debt dynamics towards slow adjustment.

Competition in the U.S. appears to have declined. One contributing factor may have been heterogeneity in the availability of credit during the financial crisis. I examine the impact of product market peer credit constraints on long-run competitive outcomes and behavior among non-financial firms. I use measures of lender exposure to the financial crisis to create a plausibly exogenous instrument for product market credit availability. I find that credit constraints of product market peers positively predict growth in sales, market share, profitability, and markups. This is consistent with the notion that firms gained at the expense of their credit constrained peers. The relationship is robust to accounting for other sources of inter-firm spillovers, namely credit access of technology network and supply chain peers. Further, I find evidence of strategic investment, i.e. the idea that firms increase investment in response to peer credit constraints to commit to deter entry mobility. This behavior may explain why temporary heterogeneity in the availability of credit appears to have resulted in a persistent redistribution of output across firms.

We conduct a meta-analysis of 1,973 estimates of stock price responses to shareholder activism reported in 67 primary studies. We document publication bias in the literature. Corrected activism effects range from 0% to 1.5%. Effects are stronger when shareholder rights are better protected and when stock markets are smaller. Markets respond more positively to activism by individual investors, confrontational activism, and activism aimed at company sale. Estimates based on longer periods, simpler risk-adjustment approaches, more recent and longer datasets, as well as those published in more reputable journals tend to be larger.

This master project focuses on the equity valuation of Volkswagen AG, one of the major automotive companies in the world. Volkswagen AG was the chosen company due to a variety of factors. Firstly, it is interesting to analyze how automotive companies should adjust their business models to accommodate the ongoing changes and innovations within the industry. Additionally, it is intriguing how the company overcame the Dieselgate scandal and is still one of the biggest players in the industry. The main objective of this research is to provide an investment recommendation based on certain investment valuation techniques. The decision will be based on an intrinsic valuation approach, the DCF using FCFF, and on a relative valuation approach, through market multiples. Alongside with the valuation techniques used, the Three-Statement Model, the Multiple Linear Regression Model and the Option Pricing Method were also applied. In order to assess the accuracy of the assumptions made, other analysts’ estimates were taken into consideration. An intrinsic price of 194.04 EUR was deduced for both shares, which implies that the stock market was overvaluing ordinary shares and undervaluing preferred shares on 31st December 2021. As a result, a sell recommendation for ordinary shares and a buy recommendation for preferred shares were gathered, since it is expected that the market will amend both margins, by naturally decreasing or increasing the price of share, respectively. O âmbito desta dissertação comtempla a avaliação dos capitais próprios da Volkswagen AG, uma das maiores empresas de produção automóvel do mundo. Foram vários os motivos que levaram à escolha desta empresa. Em primeiro lugar, analisar como as empresas automóveis ajustam os seus modelos de negócio de modo a acomodar as constantes mudanças e inovações da indústria é bastante interessante. Do mesmo modo, é também interessante perceber como a empresa ultrapassou o recente escândalo do Dieselgate e ainda assim consegue continuar como uma das maiores empresas na indústria. Sendo assim, o principal objetivo foi a obtenção de uma recomendação de investimento baseada em certas metodologias de avaliação de empresas. Esta recomendação baseou-se num modelo de avaliação intrínseca, através do método DCF, e numa metodologia de avaliação relativa, através dos múltiplos do mercado. Para além das metodologias acima descritas, o Three-Statement Model, o Modelo de Regressão Linear Múltipla e o Option Pricing Method foram também abordados. Para averiguar a precisão dos pressupostos levados a cabo na avaliação, foram também analisadas estimativas de preço de outros analistas. Foi deduzido um valor intrínseco de 194.04 EUR para ambas as ações da empresa, ações ordinárias e ações preferenciais, o que implica que o mercado estava sobreavaliando as ações ordinárias e a subavaliando as ações preferenciais a 31 de Dezembro de 2021. Como resultado, é recomendada a venda das ações ordinárias e a compra das ações preferenciais da empresa.

From the beginning of 2020, the whole world has been shaken by a contagious disease called Covid-19, its actual name being SARS-CoV-2. It first appeared in China, in Wuhan, Hubei Province, in December 2019, and the World Health Organization (WHO) was informed about it on the 31st of December 2019. On the 11th of March, 2020, WHO declared the Covid-19 outbreak a pandemic, and no country has been able to contain this coronavirus. This medical or health crisis evolved into a pandemic and led to a global economic crisis. This study investigates the wealth effect of the coronavirus pandemic announcement on the Information Technology Industry companies in Europe. We apply the classical event study methodology. Our sample contained 87 companies. The results show a strong negative reaction of information technology companies upon this announcement. The European investors perceived this announcement as a negative signal that will disturb the lives of everyone and will create economic instabilities and havoc in all sectors of an economy. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Inter-industry has various capital structures to take advantage of growth opportunities due to agency differences and information asymmetric problems. This research aims to analyze: (1) the differences in leverage between industries and (2) the impact of shareholders–debtholders conflict and information asymmetric on growth opportunities. The firm-level data used is extracted from Indonesia Stock Exchange's annual reports from 2008 to 2019. Authors used the analysis of variance (ANOVA). The findings show differences in leverage between industries. However, they are relatively stable and not excessive for assets to prevent conflicts between managers and shareholders with debtholders. Equity is also not used to utilize growth to reduce the discretionary power (dilution) of shareholders. As a result, the use of opportunities and growth is limited. This study identifies agency problems and asymmetric information that determines independent companies' decisions in exploiting growth opportunities.

An administrative fine is a monetary penalty that may be imposed by a supervisory authoritity as an administrative punishment. Such a fine adversely interferes in the cash flow generation of the company in question. The fine can be described as an investment carrying opportunity costs with no economic returns. However, according to the judgment of the Constitutional Court of the Czech Republic Pl. ÚS 3/02 of 13 August 2002 it is submitted that the fine cannot be imposed in such an amount that would ultimately be liquidating for the sanctioned entrepreneur. The assessment of whether the specific amount of the fine imposed represents such an intensive interference with the entrepreneur's property that his business activity becomes pointless (i.e., in the long run only for the payment of a fine) is elaborated in this article. Based on a case study from the Czech Republic, this article deals with an example of a suitable methodological procedure, on the basis of which it is possible to evaluate the impact of a specific amount of fine imposed on the property of a sanctioned entrepreneur and assess ex ante whether (i) continuity of his business will be interrupted in the future, i.e., when, as a result of the payment of the fine, he eventually goes bankrupt in the form of insolvency or over-indebtedness and / or (ii) his business activity will only serve to pay the fine and thus become "pointless". The presented economic narrative and methodology are relevant for policy makers and, particularly, for supervisory authorities imposing the fines or assessing the requests for remission.

We present a mechanism based on managerial incentives through which common ownership affects product market outcomes. Firm-level variation in common ownership causes variation in managerial incentives and productivity across firms, which leads to intraindustry and intrafirm cross-market variation in prices, output, markups, and market shares that is consistent with empirical evidence. The organizational structure of multiproduct firms and the passivity of common owners determine whether higher prices under common ownership result from higher costs or from higher markups. Using panel regressions and a difference-in-differences design, we document that managerial incentives are less performance sensitive in firms with more common ownership.

Expressed personality traits can play a pivotal role in convincing investors in crowdfunding. Our study answers the research question: What is the current body of knowledge regarding the relationship between personality factors and crowdfunding success and where are knowledge gaps where the literature is silent? In our literature review, we therefore analyze and categorize (1) the results provided by quantitative studies on the relationship between the personality of entrepreneurs and crowdfunding success and (2) the research gaps identified by the authors investigating personality in crowdfunding. We find that studies investigating the entrepreneur's personality, i.e. the Big Five, other baseline personality traits (self-efficacy, innovativeness, locus of control, and need for achievement) and the Dark Triad, find positive relationships between openness and crowdfunding success, while narcissism shows an inverted u-shaped relationship with crowdfunding success across articles. However, the effects of other personality traits on crowdfunding success are largely inconclusive. Further, we identify four main gaps in the literature. First, future studies should examine non-linear relationships between expressed personality traits and crowdfunding success. Second, there is a need for more studies that employ different methods like qualitative or mixed-method approaches. Third, replication studies in similar and different contexts are urgently needed. Fourth, a plurality of personality perspectives would strengthen future research (e.g., investor perspective, third party perspective). To our knowledge this is the first literature review of personality traits in crowdfunding. Our work aims to enrich our understanding of individual-level components in the underexplored alternative finance market.

We examine whether the financial strength of companies, in particular, small and medium-sized enterprises (SMEs) is causally linked to the award of a public procurement contract (PP), especially in the environmentally friendly green area (GPP). For this purpose, we build a combined procurement company data set from the Tenders Electronic Daily (TED) and the SME database AMADEUS, which includes ten European countries. First, we apply probit models to investigate whether the probability of winning the public tender depends on the company's financial strength. We then use the flexpanel DiD approach to investigate the question of whether the award has an impact on the future financial strength of the successful company. On the one hand, we find that a lower equity ratio and a higher short-term debt ratio increase the probability of being successful in a public tender. On the other hand, a success means that the companies can continue to work after the award with a lower equity ratio than comparable companies without an award, regardless of whether the company was successful in a traditional or a green public tender. We conclude from this that the success in a PP is a substitute for a firm's own financial strength and thus facilitates access to external financing. Wir untersuchen, ob die Finanzkraft von Unternehmen, insbesondere Klein- und Mittelständischen Unternehmen (KMU), kausal mit dem Zuschlag für einen öffentlichen Auftrag (PP), insbesondere im umweltfreundlichen Bereich verbunden ist. Hierzu konstruieren wir aus der Tenders Electronic Daily (TED) und der KMU-Datenbank AMADEUS einen kombinierten Beschaffungs-Unternehmen-Datensatz, der zehn europäische Länder umfasst. Zunächst prüfen wir mit Hilfe von Probit-Modellen, ob die Wahrscheinlichkeit des Zuschlags bei der öffentlichen Ausschreibung von der Finanzkraft des Unternehmens abhängt. Anschließend nutzen wir den Flexpanel-DiD-Ansatz, um der Frage nachzugehen, ob der Zuschlag auf die zukünftige Finanzkraft des erfolgreichen Unternehmens zurückwirkt. Wir finden einerseits, dass eine niedrigere Eigenkapitalquote und eine höhere Quote kurzfristiger Kredite die Wahrscheinlichkeit erhöhen, bei einer öffentlichen Ausschreibung, sei sie traditionell oder "grüner" Natur, erfolgreich zu sein. Andererseits bewirkt der Erfolg, dass die erfolgreichen Unternehmen nach dem Zuschlag mit einer geringeren Eigenkapitalquote weiterarbeiten können als vergleichbare Unternehmen ohne Zuschlag, unabhängig davon, ob das Unternehmen in einer traditionellen oder einer "grünen" öffentlichen Ausschreibung erfolgreich war. Wir schließen daraus, dass der Zuschlag ein Substitut für eigene Finanzstärke ist und dadurch den Zugang zu Fremdfinanzierung erleichtert.

Several indicators and univariate ratios can be used to measure the soundness of firms as reflected in their balance sheets (leverage, profitability, liquidity ratio, etc.). However, each indicator alone cannot measure a firm's overall financial risk or financial distress level. In this study, we measure the financial strength of the real sector firms listed on the Borsa Istanbul (BIST) by producing a composite index score that combines several different corporate finance ratios. In the first section, we conduct a multiple discriminant analysis of the variables used in Altman's z-score (1968), which is the most prevalent composite index used to measure firms' financial risk in the literature. In the second section, we introduce a new index, called the multivariate firm assessment (MFA) score, which uses the ratios that best explain the characteristics of companies listed on the BIST. The Tailored version of the Altman z-score and our new index have predictive power of around 90 percent. Furthermore, the MFA score reflects the impact of macroeconomic developments on firms' balance sheets and thus serves as an early warning of financial distress for Turkish firms. Our analyses using the MFA score suggest that non-exporting firms and firms with an open foreign exchange position have weaker balance sheets.

This project’s principal goal is to perform an Equity Valuation of Manchester United Plc, in order to determine an implied share price resorting to forecasting future cash flows. Hence, to be able to perform this valuation, a company and industry analysis was conducted, as well a projection of its evolution. Manchester United Plc is the company which runs Manchester United Football Club, one of England’s biggest clubs and also one of the most well-known clubs in the World, with a great amount of supporters and followers in every continent. Like every football club, its business is conducted through three main segments: Commercial, Broadcasting and Matchday. To assess the company’s enterprise value, there were utilized two different methodologies, DCF and Multiples Valuation. However, due to Manchester United trading at a clear premium and the small number of publicly traded football clubs, Multiples Valuation was deemed not significant. With the Discounted Cash Flow method, the implied share price was $11,86, which was compared with the stock price at two different moments. Comparing with the market in 21/11/2022, before the Board’s announcement that they are looking to sell the club, it represented a depreciation of 9%, to which we recommend holding the stock. Inversely, comparing with the share price in 25/11/2022, we recommend selling it, due to a downside of 44%. In conclusion, considering the latest development, a recommendation to buy is made. O objetivo desta dissertação é fazer uma avaliação global do Manchester United Plc, com o intuito de calcular o preço da ação recorrendo à previsão dos seus Cash Flows futuros. Assim, para a avaliar a empresa, foi efetuada uma análise da própria empresa e da indústria onde está inserida, bem como a previsão da sua evolução. A Manchester United Plc é a empresa que gere o Manchester United Football Club, um dos maiores clubes de Inglaterra, bem como um dos maiores e mais famosos clubes do Mundo, com um grande número de fãs e apoiantes em todos os continentes. Tal como todos os clubes de futebol, o clube opera através de três principais segmentos: Comercial, Transmissões Televisivas e Bilheteira. Para avaliar o valor da empresa foram utilizadas duas metodologias, DCF e Múltiplos. No entanto, tendo em conta que a ação do clube é transacionada a um valor muito superior aos seus pares e que não existem muitos clubes cotados em bolsa, a avaliação de Multiplos não foi considerada significante. De acordo com o método DCF o preço da ação calculado foi $11,86, tendo sido comparado com o preço do mercado em dois momentos diferentes. Em 21/11/2022, antes da Direção anunciar a sua intenção de venda, o valor representava uma depreciação de 9%, para a qual recomendamos manter a ação. Por outro lado, após o anúncio a recomendação é vender a ação, visto representar uma desvalorização de 44%. Em conclusão, considerando os recentes acontecimentos, é obtida uma recomendação de venda.

Shopify is a Canadian company that caught the eye of worldwide investors due to its fast-growing tech-enabled business. Within the core of its operations, we find software that enables almost any merchant to build an online shop with little to no previous knowledge of programming. Its subscriber base is diverse and the services offered are tailored to serve small, medium-sized and big-sized merchants. Its growth strategy is based on increasing its subscriber base and then generating additional revenue through the tools they provide to its merchants to manage their daily operations. In 2021, the global pandemic directly affected the demand for Shopify shares. Shopify’s stock rose to record high levels as investors saw in Shopify´s online network of merchants, a good retail hedge for the impacts caused by the government closing of all non-essential businesses. Across 2022 and as we move further away from the pandemic the stock has been steadily decreasing from its all-time high of USD 176.3 to USD 34.2 as of 30th October 2022. The main goal of this equity research is to reach the fair value of Shopify. Several valuation methodologies were carried out to value Shopify: the Discounted Cash Flow model through the FCFF and FCFE methods and the multiple-based valuation through EV/EBITDA and the Forward P/E ratio. Complementary to the 5-Year Discounted Cash Flow Method, a sensitivity analysis table was also included to understand the impacts of some of the most critical assumptions considered in the presented valuation such as the WACC, the growth rate and the cost of equity. The valuation based on the FCFF results in a fair value for Shopify stock at USD 20.6, followed by the value obtained through the FCFE methodology at USD 21.4. The valuation through the multiples resulted in a share price of USD 18.3 and USD 33.7 corresponding to the EV/EBITDA and Forward P/E ratio respectively. The value at which the stock is currently trading above the fair values through the application of the models and as result the final recommendation is to sell. A Shopify é uma empresa Canadiana cujo rápido crescimento no setor do e-commerce está a gerar bastante interesse junto de investidores. O core do negócio consiste em disponibilizar um Software que permite aos seus utilizadores criar uma loja online em breves minutos sem conhecimento prévio de programação. Os subscritores da sua plataforma consistem em pequenas, médias e grandes empresas com interesse em potencializar o canal de vendas digitais com diversas soluções adaptadas à dimensão e estratégia de cada comerciante. A sua estratégia consiste em aumentar o número de subscritores que uma vez dentro da plataforma encontram à sua disposição inúmeras ferramentas para comercializarem de forma fácil e eficaz os seus produtos num ambiente digital. O objetivo da tese é avaliar a Shopify e determinar qual o valor das suas ações. Foram selecionadas como metodologias para a avaliação da Shopify: Discounted Cash Flow através do FCFF e do FCFE bem como a avaliação relativa de múltiplos (EV/EBITDA e Forward P/E). Como complemento ao 5-Year Discounted Cash Flow, incluída na tese encontra-se ainda uma análise de sensibilidade de maneira a avaliar os impactos dos pressupostos nas quais a avaliação é feita como o WACC, o custo dos capitais próprios e a taxa de crescimento. A avaliação pelo método FCFF resultou num preço de USD 20.6 por ação, seguido pelo valor obtido através da avaliação pelo método FCFE de USD 21.4. A avaliação através dos múltiplos EV/EBITDA e Forward P/E resultou num valor de USD 18.3 e USD 33.7 USD, respetivamente. Obtidos os justos valores por via da aplicação das metodologias anteriormente referidas, resta comparar com o valor de mercado. A avaliação do preço das ações da Shopify é inferior ao valor pela qual a empresa é transacionada no mercado e encontra-se por isso sobrevalorizada. Tendo em consideração o valor da ação á data de 31 outubro de 2022 de USD 34.2, a recomendação final é venda.

L'Oréal, founded by Eugéne Schueller in 1939, is the leading company in the cosmetics market. With the purpose of "Creating the beauty that moves the world" it has, over the years, gained the trust of consumers by seeking to create and offer products that stand out in terms of quality and effectiveness. L'Oréal's management has demonstrated its management skills by overcoming potential crises, as was the case with the COVID-19 pandemic, when L'Oréal reaffirmed its position as the sales leader in the market. This master's project thus aims to determine the fair value of L'Oréal's shares. In the end, the result obtained will consist of a statement for investors on whether to buy, sell or hold L'Oréal's shares, based on the potential appreciation or devaluation in relation to the market price. After reviewing what has been done in the financial world on corporate valuations, two methods will be applied in the analysis of L'Oréal. Free Cash Flow to the Firm will be the first method to be applied. Next, we will apply the Relative Valuation that will enable us to compare the results obtained in the two methods to arrive at a more precise final recommendation. L'Oréal, a company listed on Euronext Paris, had a value per share of 416.95 euros on December 31, 2021. After the analysis performed, this price was found to be undervalued, so our final recommendation is that investors buy L'Oréal shares. A L’Oréal, fundada por Eugéne Schueller em 1939, é a empresa líder no mercado de cosméticos. Com o propósito de “Criar a beleza que move o mundo” tem ganho, ao longo dos anos, a confiança dos consumidores ao procurar criar e oferecer produtos que se destaquem em termos de qualidade e eficácia. A gestão da L’Oréal tem demonstrado a sua capacidade de gestão ao ultrapassar potenciais crises, como foi o caso da pandemia de COVID-19, altura na qual a L’Oréal reafirmou a sua posição como líder de vendas no mercado. Este projeto de mestrado tem assim como intuito determinar o valor justo das ações da L’Oréal. No final, o resultado obtido consistirá numa afirmação para os investidores sobre se devem comprar, vender ou manter as ações da L’Oréal, baseando-se na potencial valorização ou desvalorização face ao preço de mercado. Depois de analisarmos o que tem sido feito no mundo financeiro sobre as avaliações empresariais, aplicar-se-ão dois métodos na análise da L'Oréal. O Free Cash Flow to the Firm será o primeiro método a ser aplicado. De seguida, aplicaremos a Avaliação Relativa que nos irá possibilitar comparar os resultados obtidos nos dois métodos para chegarmos a uma recomendação final mais precisa. A L'Oréal, empresa cotada na Euronext Paris, apresentava a 31 de dezembro de 2021 um valor por ação de 416,95 euros. Após a análise realizada, foi considerado que este preço estava subvalorizado, pelo que a nossa recomendação final é que os investidores comprem ações da L'Oréal.

The last financial crisis has brought global attention to a practice that has been studied over the past years and is called Corporate Governance. This phenomenon has become more relevant in the last decade with the ESG criteria, and it is expected to remain this way for a long period of time. It has changed the way companies are organized around the world and led to the success of many companies by helping them avoid agency costs. However, despite the number of studies in this area, there is still much to study about the impact of Corporate Governance on family businesses and how best practices help these companies overcome risks typical of their shareholder structure. This paper acknowledges and explores Corporate Governance’s most important dimensions in the financial performance of a company and then compare its impact between family and non-family businesses. The paper results show that Board Functioning and Board Composition have significant impact in financial performance. Moreover, family firms that have a succession plan for the board and an audit independent committee are more likely to have a better performance. Results also show that family businesses have a higher Return on Assets than non-family businesses. A última crise financeira chamou a atenção mundial para uma prática que tem sido estudada ao longo dos últimos anos e que se chama Governo Societário. Este fenómeno tornou-se mais relevante na última década com os critérios ESG e espera-se que se mantenha desta forma durante um longo período de tempo. Mudou a forma como as empresas estão organizadas em todo o mundo e conduziu ao sucesso de muitas empresas, ajudando-as a evitar custos de agência. Contudo, apesar do número de estudos nesta área, há ainda muito a analisar sobre o impacto do Governo Societário nas empresas familiares e na forma como as boas práticas ajudam a ultrapassar os riscos característicos da sua estrutura acionista. Esta tese irá reconhecer e explorar as dimensões do Governo das Sociedades mais importantes no desempenho financeiro de uma empresa e depois comparar o impacto entre empresas familiares e não familiares. Os resultados da dissertação mostram que o funcionamento e a composição do Conselho de Administração têm um impacto significativo no desempenho financeiro. Além disso, as empresas familiares que têm um plano de sucessão para o conselho de administração e uma comissão independente de auditoria têm maior probabilidade de ter um melhor desempenho. Os resultados também mostram que as empresas familiares têm um maior retorno sobre o património do que as empresas não familiares.

The Navigator Company, S.A. is a Portuguese company founded in 1953 with the mission to be a worldwide company, recognized for the innovative and sustainable way it transforms the forest into products and services that contribute to people's well-being. It is currently a world reference in the Paper and Pulp Industry, selling to 130 countries over five continents, focusing on Europe and the USA. The objective of this project, which is an equity valuation of The Navigator Company, S.A., is to determine the fair value of the company's shares on 31 December 2021, after a pandemic period, in order to provide an investment recommendation to possible investors. The conclusion will be a recommendation on whether investors should buy, sell, or hold the company's shares, considering the potential appreciation or depreciation relative to the market. After an analysis of the most commonly used methods in the financial field to value a company, the methodologies that will be applied to The Navigator Company are The Free Cash Flow to the Firm, followed by a Relative Valuation that will help to achieve more accurate results. As of 31 December 2021, The Navigator Company has 711.183 million shares listed for trading on NYSE Euronext Lisbon, with a price of 3,35 euros per share. We further considered this price as undervalued in the course of the discussion of the valuation results. Therefore, our final recommendation stands that investors should buy/hold the shares of Navigator. A The Navigator Company, S.A. é uma empresa portuguesa fundada em 1953 com a missão de estar presente mundialmente e ser reconhecida pela forma inovadora e sustentável como transforma a floresta em produtos e serviços que contribuem para o bem-estar das pessoas. Atualmente, é uma referência mundial na indústria do papel e pasta de papel, vendendo para cerca de 130 países dos cinco continentes, com destaque para a Europa e os EUA. O objetivo deste projeto, que é uma avaliação da The Navigator Company, é determinar o justo valor das ações da empresa a 31 de dezembro de 2021, após um período pandémico, com o intuito de dar uma recomendação de investimento a potenciais investidores. A conclusão será uma recomendação sobre se os investidores devem comprar, vender, ou manter as ações da empresa, considerando a potencial valorização ou desvalorização, em relação ao seu valor mercado. Após uma análise dos métodos mais utilizados na área financeira para avaliar uma empresa, as metodologias que serão aplicadas à The Navigator Company são a dos Fluxos de Caixa Descontados na ótica da Empresa, seguida de uma Avaliação Relativa que ajudará a alcançar resultados mais precisos. A 31 de Dezembro de 2021, a Navigator tinha 711.183 milhões de ações cotadas para negociação na NYSE Euronext Lisbon, com um preço de 3,35 euros por ação. Considerámos este preço como subavaliado no decurso da discussão dos resultados da avaliação. Por conseguinte, a nossa recomendação final é de que os investidores devem comprar/deter as ações da Navigator.

The present project identifies and describes the most appropriate methods to determine the fair intrinsic value of CTT- Correios de Portugal, S.A., one of the biggest companies in Portugal, calculates the share price at the end of 2021, and provides an investment recommendation to possible investors. One of the many reasons that make CTT an interesting asset to study relates to its privatization process, becoming the first Portuguese company with 100% of its capital in "free float" and for continues to be present in the PSI20 Index. Another reason worth mentioning is the role of CTT during this pandemic situation: The company has been implementing several mitigation measures against the spread of COVID-19 and is fully aware of the importance of its services to the Portuguese economy and society. After conducting extensive research regarding the best methods to value a company, will be applied the Discounted Cash Flow valuation, using the Free Cash Flows to the Firm (FCFF) and the Relative Valuation, based on the multiples of a peer group. To conclude, we will carry out a sensitivity analysis on the impact of the Terminal Growth Rate and Weighted Average Cost of Capital on the company's results. The results obtained through the Relative Valuation (6,78€) and the DCF method (8,17€) suggest that on 31st December 2021, CTT shares were undervalued (4,56€). Therefore, our final recommendation is that investors should have bought or maintain in their wallet CTT shares at that time. A presente dissertação identifica e descreve os métodos mais adequados para determinar o justo valor dos CTT- Correios de Portugal, S.A., uma das maiores empresas em Portugal, calcula o preço das ações no final de 2021, e fornece uma recomendação a possíveis investidores. Uma das muitas razões que tornam os CTT um ativo interessante para estudar está relacionada com o seu processo de privatização, tornando-se em 2014 a primeira empresa portuguesa com 100% do seu capital em “free float” e por, atualmente, os CTT continuarem presentes no Índice PSI20. Outro motivo a destacar são as medidas implementadas pela empresa para a mitigação da propagação do COVID-19 e a consciência da importância dos seus serviços para a economia e sociedade. Depois de uma pesquisa intensiva sobre os melhores métodos, escolhemos utilizar o método de avaliação do Fluxo de Caixa Descontado, através do Fluxo de Caixa Livre para a Firma e a Avaliação Relativa, com base nos múltiplos de um grupo selecionado. Para finalizar, realizámos uma análise de sensibilidade sobre o impacto de alterações na taxa de crescimento e no custo médio ponderado do capital no valor da ação dos Correios de Portugal, S.A. Os resultados obtidos através da metodologia da Avaliação Relativa (6,78€) e do Cash Flow Descontado (8,17€) sugerem que a 31 de dezembro de 2021, as ações dos CTT encontravamse subvalorizadas (4,56€). Para concluir, a nossa recomendação final é que os investidores deveriam ter comprado ou mantido em carteira as ações dos CTT a esta data.

This report was produced with the objective of estimating the fair value for The Walt Disney Company´s shares as of 31 December 2021 and evaluate if the company was being under or over evaluated by the market and investors, by comparing the real shares close price at that date. The Walt Disney Company was selected to perform this report due to several important factors. In one hand, this company has an interesting story, known worldwide. It is interesting to analyse the challenges that Disney faced across the years and recently how the business is handling the COVID-19 Pandemic. Other important challenge for Disney is the approach made to compete with the digital stream platforms. To value The Walt Disney Company stock two procedures were performed: DCF model and Multiple Analysis. Additionally, a comparison with specialists analysis was performed to evaluate the accuracy of the assumptions and inferences. All data used in this Thesis is the official data retrieved from the Walt Disney Company reports and Bloomberg with the ticker DIS US Equity. A price target of 122.48 USD was found, which implies a −20.924% downside potential from the reference price of 154.89 USD recorded in the end of the 2021, which traduces the analysis in a Sell recommendation. Esta dissertação foi produzida com o objectivo de estimar o valor justo das acções da The Walt Disney Company em 31 de Dezembro de 2021 e avaliar se a empresa estava a ser sub ou sobrevalorizada pelo mercado e pelos investidores, comparando o preço real das acções cotado nessa data. The Walt Disney Company foi seleccionada para realizar este relatório devido a vários factores importantes. Por um lado, esta empresa tem uma história interessante, conhecida em todo o mundo. É interessante analisar os desafios que a Disney enfrentou ao longo dos anos e recentemente como a empresa está a lidar com a Pandemia da COVID-19. Outro desafio importante para a Disney é a abordagem feita para competir com as plataformas de streaming. Para valorizar as acções da The Walt Disney Company, foram realizados dois procedimentos: Modelo DCF e Análise de Múltiplos. Além disso, foi realizada uma análise comparativa com investigações feitas por especialistas para avaliar a exactidão dos pressupostos e inferências. Todos os dados utilizados nesta tese são os dados oficiais dos relatórios da Walt Disney Company e da Bloomberg com o ticker DIS US Equity. Foi encontrado um price-target de 122.48 USD, o que implica um potencial de -20.924% de diminuição em relação ao preço de referência de 154.89 USD registado no final de 2021, o que traduz a análise numa recomendação de venda.

Nike is one of the most well- known companies in the world and the leader in the sportswear and athletic footwear industry. Since it is such an important company in the industry, it is important to understand its value and whether it represents a good investment The valuation models used in this project are divided into two different approaches: absolute valuation using DCF model and EVA model, and relative valuation using multiples model. Analysing the financial ratios, we found that Nike has increased its debt and that the company's ROE has increased due to leverage. The company had a return on invested capital (ROIC) that exceeded WACC in all years analysed, creating value consistently. Nike also exhibits good liquidity as it is able to continuously pay its current liabilities. Through this analysis, it is clear that although the pandemic crisis had a strong negative impact on the industry and the company itself, Nike was able to respond excellently in the following year, unlike some of its competitors. The objective of this study was to estimate the value of Nike stock on May 31, 2021, with the market price at that time being $136. Using the DCF and EVA models, the same stock price of $136,41 was determined, which is quite close to the market price and indicates that the company is valued correctly. Based on the results obtained by the different models and the financial analysis performed, investors are recommended to hold the stock. A Nike é uma das empresas mais conhecidas do mundo e líder na indústria do vestuário e calçado desportivo. Sendo uma empresa tão importante no sector, é importante compreender o seu valor e se representa um bom investimento. Os modelos de avaliação utilizados neste projeto estão divididos em duas abordagens diferentes: avaliação absoluta utilizando o modelo DCF e o modelo EVA, e avaliação relativa utilizando o modelo dos múltiplos. Analisando os rácios financeiros, verificámos que a Nike aumentou a sua dívida e que o ROE da empresa aumentou devido ao efeito de alavancagem. A empresa teve um retorno do capital investido que excedeu o WACC em todos os anos analisados, criando valor de forma consistente. A Nike também apresenta boa liquidez, uma vez que é capaz de pagar continuamente o seu passivo corrente. Através desta análise verificou-se que apesar da crise pandémica ter causado um forte impacto negativo no setor e na empresa em si, a Nike foi capaz de responder de forma excelente no ano seguinte, ao contrário de alguns concorrentes. O objetivo deste estudo era estimar o valor das ações da Nike em 31 de maio de 2021, sendo o preço de mercado nessa altura de $136. Utilizando os modelos DCF e EVA, foi determinado o mesmo preço das ações de $136,41 o que está bastante próximo do preço de mercado e indica que a empresa estava avaliada corretamente. Com base nos resultados obtidos pelos diferentes modelos e na análise financeira realizada, recomenda-se aos investidores que detenham as ações.

This research was developed with the objective of estimating the fair value of Greenvolt shares at 31st December 2021. Also, to understand if at the time the firm was undervalued or overvalued by the market, while comparing the actual market value with the estimated fair value. Greenvolt Energias Renováveis S.A. is a Portuguese company that produces energy from renewable sources, such as forestry biomass, solar and wind. It aims to become one of the main players in the production of renewable energy. In July 2021 it did its Initial Public Offering by listing in the EuroNext Lisbon stock exchange. In this dissertation it was made a valuation on Greenvolt using the Discounted Cash Flows (DCF) applying the Free Cash Flow to the Firm (FCFF) method, and Relative Valuation. The assumptions made are supported by both the firms’ own projections and its historical performance, as well as, an analysis of the macroeconomic environment and industry. The results obtained in the two methodologies used suggest different conclusions. However, the DCF method suggests that the market price Greenvolt was lower than the fair value, at 31st December 2021. Este relatório foi desenvolvido com o intuito de estimar o justo valor das ações da Greenvolt a 31 de dezembro de 2021. Tal como, verificar se à data a empresa estava subvalorizada ou sobrevalorizada pelo mercado, ao comparar o preço real do mercado, com o justo valor estimado da empresa. A Greenvolt Energias Renováveis S.A. é uma empresa portuguesa de produção de energia através de fontes renováveis, como a Biomassa, a energia solar e eólica. Espera nos próximos anos tornar-se um dos principais participantes no mercado de produção de energia renovável. Em julho de 2021 estreou-se na bolsa de valores EuroNext Lisbon ao fazer uma Oferta Pública Inicial. Nesta dissertação procedemos a avaliação da Greenvolt através dos modelos de Fluxos de caixa descontados, mais concretamente o Free Cash Flow to the Firm (FCFF), e a avaliação de comparáveis através de múltiplos. Os pressupostos foram fundamentados pelo desempenho histórico e pelas projeções da própria empresa, tal como pela análise do contexto macroeconômico e do sector. Os resultados obtidos nas duas metodologias sugerem resultados diferentes. No entanto o modelo dos fluxos de caixa descontados sugere que o valor das ações da Greenvolt estavam cotadas abaixo do seu justo valor, em 31 de Dezembro de 2021.

The main goal of this project was the selection of a company present in a market that has been affected by the COVID-19 pandemic. Ibersol group, which operates in Portugal, Spain, and Angola, was the company chosen, being listed on the stock exchange at 5.18 euros on 31/12/2021. The valuation of the group was made by different valuation methods that were analyzed and compared, these being EVA, DCF, and the comparison with multiples. Some assumptions were made based on the company's historical data, the effects of the pandemic on the world and the industry, and the macroeconomic context. After we get the share price, a sensitivity analysis was conducted to analyze potential variations that may occur in the most susceptible variables, such as sales or costs, and to understand possible company valuation changes. From a precautionary perspective, an investment risk analysis took place, through the evaluation of some risks such as exchange rate variation, as a result of the group's involvement in the Angolan market. Furthermore, the group is present in a highly dependent market on consumer habits and new trends, difficult factors to predict, which implies a redoubled attention to new ideas and competitors. Given the valuation made through the DCF valuation method, the fair value per share of the Ibersol Group is 8.82 euros on 31/12/2021. Compared to the real value, this was undervalued on the same date. Concluding the analysis, a buy position is recommended. Este projeto teve como foco a seleção de uma empresa com presença num mercado que tenha sido afetado pela pandemia da COVID-19. A escolha recaiu sobre o Grupo Ibersol, que opera em Portugal, Espanha e Angola, estando cotada na bolsa ao preço de 5.18 euros a 31/12/2021. A avaliação da empresa foi realizada a partir do cálculo do justo valor pelos métodos DCF, EVA e também pela comparação dos múltiplos com os concorrentes do mesmo mercado. Foram feitas previsões com base nos dados históricos da empresa, nos efeitos que a pandemia teve sobre o mundo e sobre a indústria e no contexto macroeconómico. Após o cálculo do valor por ação, foi realizada uma análise de sensibilidade para estudar potenciais variações que podem ocorrer nas variáveis mais suscetíveis e para compreender que mudança causaria na avaliação. Numa ótica de precaução, realizou-se uma análise ao risco de investimento através da avaliação de alguns riscos como a variação do câmbio, em consequência da exposição do grupo a este risco por atuar no mercado angolano. Por outro lado, o grupo está presente num mercado altamente dependente dos hábitos do consumidor e de novas tendências, e estes fatores são de difícil previsão, o que implica uma atenção redobrada a novas ideias e concorrentes. Dada a avaliação feita através do método DCF, o valor por ação do Grupo Ibersol é de 8.82 euros em 31/12/2021. Em comparação com o valor real, este foi subavaliado na mesma data. Concluindo a análise, é recomendada uma posição de compra.

This master’s project addresses the valuation of Hilton Worldwide Holdings, and its primary purpose is to set the target share price for the end of the year 2020. In addition, it aims to provide investors with an investment recommendation based on the difference between the actual close price and the target share price obtained during this valuation exercise. Over the last century, with a worldwide presence, Hilton has become a highly recognized and respected name in the hospitality industry. In 2020 the company faced a massive challenge, initially due to the temporary suspension of most businesses with the several lockdowns, and then with the readaptation to what the future will entail. At this moment, Hilton is in charge of the difficult task of recovering in a world full of uncertainties. To accomplish this valuation exercise we applied a model of the Discounted Cash Flow approach, the Free Cash Flow to the Firm, followed by a Relative Valuation using multiples. To obtain the target share price were assumed several assumptions based on the company's recent performance and macroeconomic projections. The outputs provided across both models suggest that Hilton’s shares, as of 31 December 2020, were under their fair value and therefore, we issued a BUY recommendation. Este projeto de mestrado consiste na avaliação da Hilton Worldwide Holdings e o seu principal propósito é definir o preço-alvo das ações para o final do ano de 2020. Além disso, visa fornecer aos investidores uma recomendação de investimento baseada na diferença entre o preço de fecho verificado e o preço-alvo da ação obtido durante este exercício de avaliação. Ao longo do último século, estando presente em todo o mundo, a Hilton tornou-se um nome altamente reconhecido e respeitado na indústria da hospitalidade. Em 2020 a empresa enfrentou um grande desafio, inicialmente devido à suspensão temporária da maioria dos negócios com os vários confinamentos, e depois com a readaptação ao que o futuro implicará. Neste momento, a Hilton está a cargo da difícil tarefa de se recuperar num mundo cheio de incertezas. De forma a realizarmos este exercício de avaliação aplicámos um modelo da abordagem de Fluxos de Caixa Descontados, o Free Cash Flow to the Firm, seguido de uma Avaliação Relativa usando múltiplos. Para a obtenção do preço-alvo das ações foram assumidos diversos pressupostos com base no desempenho recente da empresa e de projeções macroeconómicas. Os resultados obtidos por ambos os modelos sugerem que as ações da Hilton, a 31 de dezembro de 2020, estavam abaixo do seu valor justo e, portanto, emitimos uma recomendação de COMPRA.

Die in der Coronakrise ergriffenen Maßnahmen haben in vielen Betrieben zu erheblichen Beeinträchtigungen geführt. Dies hatte vielfach eine Verschlechterung der Eigenkapitalausstattung zur Folge. Die gemeinsame Herausforderung von Politik, Finanzmärkten und Wirtschaft ist in dieser Situation die Schaffung eines belastbaren Fundaments, das es Unternehmen ermöglicht, zu einer komfortablen Eigenkapitalsituation zurückzukehren. Die Finanzkrise hat gezeigt, wie so etwas mit einem passenden Instrumentarium gelingen kann. Dazu müssen den betroffenen Unternehmen auf die jeweiligen Bedürfnisse zugeschnittene Lösungsansätze zur Verfügung stehen. Im vorliegenden Beitrag werden Wege aufgezeigt, wie das Ziel, Fortführung eines gesunden Unternehmens, ermöglicht wird. The measures taken in the Corona crisis have led to significant impairments in many businesses. In many cases, this has resulted in a deterioration of capital adequacy. Now, the joint challenge facing policymakers, financial markets and businesses is to create a resilient foundation that will enable companies to return to a comfortable equity situation. The financial crisis has shown how this can be achieved with the right instruments. To this end, the companies affected must have access to solutions tailored to their specific needs. This article shows how to achieve the goal of continuing as a healthy company.

Purpose: This paper investigates the impact of R&D expenses and human capital related indicators on the performance and profitability of companies from the European pharmaceutical sector. Design/methodology/approach: The database includes 26 listed companies from different European countries in the period 2011-2017. The study consists in a panel data analysis, using either fixed or random effects based on the results of the Hausman test. Findings: The results show that R&D expenses and CEO-chairman duality have a positive impact both on a company's performance and profitability and their effects can be seen starting with the year they were employed. However, a CEO change has a more pronounced impact on performance indicators which is observed starting with the year following the one it was performed. Furthermore, while pension related expenses prove to have no effect on either profitability rates or performance margins, an increase of employee productivity shows a positive impact only on the company's performance. Research limitations/implications: These results show that all parties interested in the development of a company and the increase of its profitability will have a tough mission when trying to find the correct policies to implement, as some that improve a firm's performance might not influence its profitability. Nonetheless, R&D related expenses could provide a solid policy for the European pharmaceutical sector as they appear to have a positive impact on both profitability and performance. However, the relative low number of companies included in the database limits the degree of generalization of the obtained results, especially considering a global perspective. Furthermore, the short analysis period could generate biased results when considering the impact of the human capital indicators on a company's results as their impact could be seen in a more prolonged time. In order to test the robustness of the findings, additional years should be included in the database, taking into consideration also non-stable periods. Originality/value: The paper includes a wide array of indicators (related to R&D, corporate governance and human capital, alongside the typical financial indicators) to provide a comprehensive picture of the possible determinants of a company's profitability and performance.

This paper contributes to studies on corporate liquidity management. It explores the determinants of cash holdings of firms in emerging countries using panel data models. The results indicate that highly liquid firms in emerging countries show one or more of the following characteristics. They have larger size, lower capital expenditure, R&D, net working capital, leverage, and intangible assets. In addition, there is an inverse relationship between growth opportunities and cash holdings, suggesting the presence of a moral hazard problem. Moreover, using the system Generalized Method of Moments (GMM) estimator for dynamic panel data shows that the adjustment speed to the cash target level is not fast. The model also shows the impact of the dependent variable past realizations on corporate cash holdings.

The risk-neutral valuation approach to evaluating an investment avoids the need to estimate risk-adjusted discount rates, but it does require the market price of risk parameters for all stochastic variables. When historical data is available on a particular variable, its market price of risk can be estimated using the capital asset pricing model.Keywords. Real options; Capital investment appraisal; Market price of risk; New business valuation; Internet companies; Amazon.JEL. G30; G31; G32; N00; N80; M10.

This study investigates the relationship between daily returns of oil and ten European industrial equity indices for the period 2008–2017 using the spatial econometric technique. In our settings, the historical co-movements of sectoral returns are incorporated while modelling the contemporaneous relationships between oil and European sectoral returns. After controlling for regional and global equity risk factors, we find that oil returns pose a significantly positive effect on sectoral indices’ returns in line with previous studies. However, the magnitude of economic impact found mostly by earlier studies was largely underestimated without considering the co-movements of sectoral indices. The use of spatial econometric technique allowed us to disaggregate the total impact into a direct (due to oil price) and an indirect (due to spillover effect because of intra-industry co-movements) effect of oil price changes. Our results indicate that the direct economic impact of changes in oil prices on industrial returns is almost 31% more than what has been found by earlier studies. The negative spatial dependence among sectoral indices provides a useful tool to identify the source of the indirect impact of oil on overall equity prices in Europe that in turn explains the overestimation of direct impact by 31%.

報告

Our study is the first to provide systematic evidence of a hump-shaped CEO tenure-firm value relation. This pattern is supported by announcement returns to sudden CEO deaths, which mitigate endogeneity concerns. Furthermore, the hump shape is subject to meaningful cross-sectional variation: firm value starts to decline after fewer years of CEO tenure i) in more dynamic industries, in which the optimal CEO-firm match changes more frequently, ii) if CEOs are less adaptable to changes, iii) if CEO entrenchment is higher. Lastly, financial reporting quality also follows a hump shape while earnings smoothing increases over CEO tenure, suggesting that CEOs entrench themselves by obfuscating their declining performance. While we find evidence suggesting optimal retention by boards on average, some CEOs stay past their “peak”, primarily because of a deteriorating CEO-firm match in conjunction with increasing entrenchment. This Draft: January 26, 2019

Dividend policy is one of the most controversial areas of corporate finance. The paper presents the results of the research in the banking sector of the Republic of Serbia. The specific characteristics of the financial sector make the research on dividend policy determinants additionally complex. This study aims to determine the factors of dividend policy in the Serbian banking sector in the period 2009–2018. The model of random effects was chosen to test the relationship between dividend determinants and dividend payout. Empirical results show that previous years’ dividends have a significant positive effect on dividend policy. Individual investors can benefit from the research to a great extent, as well as bank managers, when creating dividend policies that would contribute to maximising profit and satisfying the needs of employees and shareholders in the long run.

Studies indicate that a consistent rise in insolvency risk should be addressed at the strategic level. Vigilant boards can use leverage maturity structure as a tool to control insolvency risk. However, according to the information asymmetry theory, leverage acquisition is subject to the presence of fixed assets which can be used as collateral. The current study focuses on the relationship between board vigilance and insolvency risk, mediated by debt maturity and moderated by fixed collaterals in Pakistan based non-financial firms. A data set of 284 firms is constructed between the years 2013 and 2017. Hierarchical multiple regression analysis is used to test the proposed hypothesis using ordinary least squares (OLS) and panel corrected standard errors (PCSE) regression estimators. The results indicate that debt maturity mediates the relationship between board vigilance and insolvency risk. New information is generated about the fixed collaterals, and these negatively moderate the relationship between leverage maturity and emerging market z-score indicating inefficiency in the usage of fixed assets as collaterals. These results are robust to both regression techniques confirming that the non-productive fixed collaterals overshadow the positives of tangible assets in asset structure.

Rising drug spending has led to increased calls to curtail drug costs. However, it is unclear where to target policy solutions. We estimated excess returns (the extent to which a firm’s profits are higher than expected given the risk associated with their investments) for manufacturers and middlemen in the pharmaceutical supply chain to determine who is making excessive profits. Excess returns were calculated as the difference between return on invested capital and the expected returns given risk, which is known as the weighted average cost of capital. We compared excess returns for manufacturers and middlemen to the average for S&P 500 companies. We find that both manufacturers and middlemen have higher excess returns in 2013–2018 compared with the S&P 500. However, if we treat research and development (R&D) as an investment rather than an expense, we find that excess returns for pharmaceutical manufacturers are lower than the S&P 500 (1.7% vs. 3.6%), but biotech manufacturers (9.6%), wholesalers (8.1%), and insurers/PBM/retailers (5.9%) continue to have significantly higher excess returns compared to the S&P 500. Our findings suggest public policies that promote competition in all areas of the pharmaceutical supply chain are important avenues for curtailing drug spending. Electronic supplementary material The online version of this article (10.1007/s10754-020-09291-1) contains supplementary material, which is available to authorized users.

Local tourism development requires us to consider many solutions, among them is sustainable solutions for business development of traditional handicraft products. This study is done based on surveys of northwestern provinces of Vietnam, in which authors use statistics, questionnaires and charts. Research findings show us that despite of potential chances, tourism activities still mainly exploit the value of available natural resources, are heavily spontaneous, lack of planning, small-scale tourism business, lack of creativity and diversity in tourism activities. services, infrastructure and quality of tourism service are limited. Our study also indicated that macro factors affect tourism activities.

Bootstrap financing refers to measures that entrepreneurial ventures undertake to preserve liquidity (e.g., reducing expenses, collecting receivables, delaying payments, preselling). Prior research shows that bootstrap financing is an important enabler for the growth of resource-constrained early-stage ventures. However, little is known about the use of bootstrap financing in crises, during which the preservation of liquidity is particularly salient. We investigate the determinants of bootstrap financing in the 2020 COVID-19 crisis using a sample of 17,046 German entrepreneurial ventures. We formulate hypotheses about the determinants of bootstrap financing from a necessity, human capital, and opportunity cost perspective. Among others, our results show that the severity of the crisis for the venture, the level of private consumption, and self-employment experience are positively associated with an increased use of bootstrap financing measures. Our study contributes to the literature on bootstrap financing and illuminates how entrepreneurial ventures maintain liquidity in crises.Plain English SummaryEconomic downturns or crises often lead to financial distress for ventures. To survive such tumultuous times, ventures need to preserve their liquidity. Bootstrap financing refers to measures that entrepreneurial ventures take to preserve liquidity (like sending payment reminders, paying invoices later, reducing tax advances, reducing commercial rent). Because little is known about how bootstrap financing is used during crises, we investigate how it was used during the COVID-19 crisis. Our study builds on a survey of 17,046 German entrepreneurial ventures and self-employed individuals. We find that the use of bootstrap financing is positively related to how severe the crisis was for the venture along with the level of private consumption and self-employment experience of the venture’s owner. In contrast, a negative association exists with private liquidity, business liquidity, how long before the owner retires, and part-time self-employment. The positive association between self-employment experience and bootstrap financing indicates that targeted entrepreneurship education programs or webinars should focus on inexperienced entrepreneurs so that these individuals are prepared to use bootstrapping methods to maintain liquidity during crises.

The analysis of the factors of corporate governance is divided into four thematic sections. In the first part corporate governance is defined as part of the broader economic context. The second part deals with the principles of corporate governance. In the third part, the relation between the index of corporate governance and individual indicators (an indicator of commitment, transparency, and disclosure, caring for partners, and control and audit) regarding ownership is defined. An analysis was undertaken for the countries of Central and Eastern Europe. A higher level of foreign ownership had a positive correlation with the corporate governance index. On the other hand, the correlation between state ownership and corporate governance index was not clear. The prevention of poor banking practices does not only lie in controlling functions, but also in the general corporate and risk-taking cultures, and the social perception of managerial roles, regardless of ownership structure.

In recent years the UK Prudential Regulation Authority has been involved in an ongoing discussion with equity release firms over the principles to be used in the valuation of equity release mortgages. The UK regulator proposed a set of such principles in its Supervisory Statement SS 3/17. These principles mark a major step forward in equity release valuation methodology. They are based on elementary pricing economics, their validity is easily established and they are easy to apply. They can be used to provide a cross-check on any proposed set of valuations and so test the reliability of the underlying valuation model or its calibration.Keywords. Actuarial science; Black ’76 model; Equity release mortgage; No negative equity guarantee; Prudential regulation.JEL. G20; G30.

We examine the relationship between growth opportunities and insolvency risk in a mediating framework through financing decisions for 330 listed firms on the Pakistan Stock Exchange (PSX) This study covers a data period of five years ranging from 2013 to 2017. Financing decisions used in this study involve capital structure decision and debt maturity decision. We applied robust clustered panel OLS regression to the data and found a negative relationship between growth opportunities and insolvency risk in all samples consisting of overall, large and small firms. Growth opportunities have a negative impact on the capital structure, but debt maturity was influenced positively. Financing decisions influenced the insolvency risk positively. We used Baron and Kenny’s (1986) approach to detect the intervening effects of financing decisions. Further, Sobel’s test used to check the significance of mediation. Partial mediation was found for the debt maturity ratio in the large and overall sample of firms. However, the capital structure did not mediate the relationship between growth opportunities and insolvency risk in this study.

In this study, the impact of business and financial information integration (BFII) on the voluntary management earnings forecasts (VMEFs) of listed firms in China between 2008 and 2018 is investigated. Drawing on litigation cost and ability signaling theories, we find that the adoption of BFII encourages top managers to disclose VMEFs. BFII firms are identified through the textual analysis of management discussion and analysis (MD&A) reports, and the empirical results indicate that BFII firms have a higher probability and frequency of issuing VMEFs than non-BFII firms. The results remain robust after we identify causality by applying a propensity score matching and difference-in-differences (PSM-DID) test and use an alternate measure of BFII. Further tests show that BFII firms issue more accurate VMEFs and are able to issue them at an earlier stage. We also find that the positive relationship between BFII and VMEFs is weakened if the media expresses concern about the uncertainty of BFII adoption.

Research background: Mutual companies are a major component of the life insurance industry worldwide and moreover are growing in importance. Efficiency, potentially affected by whether a life insurer company is mutual or stock, can determine how well said companies perform. Purpose: The aim of this paper is to demonstrate the importance of examining the efficiency of mutual and takaful (similar to mutuals) life insurance companies. Research methodology: This research coordinates 1) ideas regarding the size and importance of the mutual and takaful life industries worldwide, 2) theoretical aspects concerning how the efficiency of mutual/takafuls is expected to compare to that of stock insurers and 3) the outcomes of germane life insurance efficiency studies. Results: The outcomes of life insurance efficiency studies tend to show that, in total, stock insurers are more efficient than mutuals apart from one conspicuous element. As mutuals are substantial within several of the world’s largest life markets and the global life industry their being inefficient can be exceedingly negative. The overall conclusion is that such inefficiency can lead to dire economic problems so it is imperative to investigate the efficiency of mutuals/takafuls and perhaps the one element of stocks. Novelty: This article is the first to investigate the results of mutual/takaful life insurer efficiency studies in concert with the abovementioned theory and draws a vital conclusion regarding mutual/takaful life insurer inefficiency.

Research background: This article describes the issue of dividend companies that are components of the WIG index and S&P 500 during the period 2009–2017. Purpose: The aim of the study was to identify similarities and differences in dividend payments by issuers during the period 2009–2017. Research methodology: It describes the assessment of investments in companies on the basis of the continuity and variability of dividends paid (taking into account the rate of dividend growth and the cumulated rate of dividends, statistical measures – median and standard deviation), as well as the comparison of issuers from the Polish and US stock exchange. Results: The results of the study confirm the existence of differences in dividend pay-outs by companies listed on both exchanges. Novelty: First of all, Polish dividend companies are characterised by a higher average annual dividend growth rate and an average annual rate of return. What is more important, the average accumulated dividend (as well as its median) of companies from the WIG index is higher than the same group of companies belonging not only to the S&P 500 index companies, but also to American dividend aristocrats.

The aim of this paper is to bring together some of the foundational and recent literature interlinking corporate governance and the leadership role of the board of directors. Strategic leadership is widely assumed to be a responsibility that defaults to the Chief Executive Officers (CEOs). However, in practice, what most CEOs do is strategic management rather than strategic leadership. While strategic management does share key aspects of strategic leadership CEOs are expected to prioritize the managerial side over the leadership side. This is just one of the situations in which the board-room assumes the leadership role. This paper discusses how boards of directors conduct the process of strategic leadership in their organizations. In recent years there has been an increasing interest among scholars to understand how boards strategize from a behavioral point of view. This growing interest has resulted in the development of various typologies regarding boards’ involvement in the strategic leadership processes.