Search Results (20)

This study investigates why firms with large book–tax differences (BTDs) exhibit lower earnings persistence, particularly during periods of revenue declines. While prior literature has linked BTDs, especially large positive BTDs (LPBTDs), to earnings management, we propose an alternative explanation rooted in operational disruptions. Using a large panel of U.S. firms from 1995 to 2016, we examine whether short-term earnings persistence is affected by sales trends and the direction of BTDs. Our findings reveal that both large positive and large negative BTDs are significantly associated with reduced earnings persistence when sales decline. The effect is pronounced in both accrual and cash flow components of earnings. We develop and test a framework based on “operations theory,” which attributes this reduction to real business shocks, such as asset write-downs, facility closures, and reserve adjustments, that arise during sales decline periods. These results highlight the importance of distinguishing operationally driven BTDs from those arising through discretionary accruals. Our findings have implications for investors, regulators, and researchers seeking to interpret BTDs more accurately in volatile economic environments. Full article

For many Native American students, the thirty-seven existing tribal colleges improve their access to post-secondary education, especially for those living in reservation communities and surrounding rural areas. They also support tribal nations’ goals of offering accredited degree programs, as well honoring Indigenous knowledge. This is important for students enrolled in STEM courses since Native Americans are under-represented in these fields. In the early 2000s, Chief Dull Knife College (CDKC), the tribal college of the Northern Cheyenne Nation, was supported by National Science Foundation funding in developing a new math program to meet the unique cultural and instructional needs of its students. In this case study of a culturally responsive math program, we hypothesize that students participating in the new developmental math program attempt and earn more credits compared to cohorts participating in previous math programs and take less time on average to reach college-level math. We present information on the math outcomes of the participants in two variations of the math program reforms that have addressed the obstacles to student retention and achievement. The panel data available include students’ demographic characteristics, placement test scores, and math course grades and the credits for all students enrolled from 2006 to 2019. While the number of credits attempted or earned did not differ statistically across the cohorts, the qualitative data further show that the students appreciate the culturally responsive aspects of the program. Ultimately, we have found that these aspects resulted in increased confidence of the students in their academic skills, stronger Native identities and engagement as students, as well as an improved sense of belonging in this higher education environment, all of which were important goals of the developmental math program. Full article

According to the Federal Reserve of the United States, in the second quarter of 2024, American credit card debt reached USD 1.14 trillion, the highest balance ever recorded. In an age of high-interest, complex credit cards, how does financial literacy affect credit card debt repayment? Also, how could financial literacy and education stop the rise in credit card debt in America? To answer these questions, we use microdata from the latest wave of the Survey of Consumer Finances for 2022. We aim to capture the likelihood of credit card repayment behaviors related to the monthly balances owed by 3865 credit card holders. We consider three categories of self-reported credit card payoff behavior: hardly ever, sometimes, and always or almost always. Given the ordinal nature of our outcome variable, we perform a series of likelihood-ratio and Brant tests to assess the assumption of the proportionality of odds across response categories. Following the failure of the tests, we conclude with the selection of a generalized ordered logit/partial proportional odds model that allows us to relax the parallel lines constraint for those variables for which it is not justified. In our logistic regressions, we account for a comprehensive set of demographic characteristics, and from our results, we highlight the following: For credit card holders with low financial literacy, we find that the odds of moving to a higher category of payoff behavior are 21% and significantly lower than those of high financial literacy respondents. Further, for college-educated card holders, the odds of paying off always or almost always versus sometimes and hardly ever are 2.49 times and significantly greater than the odds for credit card holders without a college education. Credit card holders who are minority group members, female, under 45, have dependents, or earn less than USD 50,000 demonstrate a tendency for poor credit card payoff behavior. In our conclusion, we discuss how to improve credit card repayments. We stress the importance of monitoring people closely. We also aim to provide better financial advice to certain groups. Lastly, we present a more realistic approach to building and sustaining financial literacy. Full article

Financial institutions, particularly banks, have long grappled with the dilemma of structuring their capital optimally. This process, commonly referred to as capital structure decision-making, is of paramount importance, especially within the financial services sector, where strict regulations are imposed by reserve and central banks in alignment with global Basel guidelines. This study unveils the key factors that determine the capital structure choices of African banks, using panel data encompassing 45 listed banks across six nations that had embraced the Basel III Accord spanning the years 2010 to 2019. The study used the system-generalised moment methods (sys-GMM) estimator to fit the formulated panel data regression model. The study findings showed positive associations between ZSCORE, an indicator of bank financial stability, and net interest margin ratio (NIMR) with bank leverage (TCTE). In addition, the results revealed positive correlations between earnings volatility (EV), profitability (P), and risk (R) with bank leverage (TDCE). This suggests that profitable banks are inclined to favour debt financing, a phenomenon driven by their ability to comfortably service debt obligations with free cash flows. This study’s overarching conclusion underscores the dominant influence of the Liquidity Coverage Ratio (LCR) on African bank capital structures. Whether assessing traditional or Basel III-prescribed measures of bank leverage, LCR consistently emerged as the primary determinant. This finding is of significant relevance to bank executives and regulators, offering them essential insights for informed decision-making by considering striking a balance between equity and debt financing based on financial stability, profitability, and risk profiles. Full article

In an effort to push for low-carbon transition, national governments and regulatory authorities are working to define market structures and legislative frameworks able to effectively support the spreading of electricity production from renewables. To this purpose, the opening of national Ancillary Services Markets (ASMs) to Distributed Energy Resources (DERs) plays a key role. However, pricing schemes and rules in place (e.g., incentives) can act as a barrier to the supply of regulation services by small-sized and renewable-based power plants. In this context, the present work evaluates the economic opportunities for DERs provided by the provision of tertiary reserve and balancing control in the Italian ASM. The research is carried out through the collection and processing of price data from the Italian electricity and gas markets over 4 years (2019–2022). Considering a reference architecture where DER units bid on the market through a Balancing Service Provider, the potential revenues on the ASM of a non-programmable or partially programmable DER unit are compared to the earnings expected of a conventional power plant in order to highlight whether unfair competition can represent a barrier. Then, possible evolutions in the current remuneration schemes are analyzed, to evaluate whether they can be able to support a better DER integration. From the analysis, it emerges that, even if negative prices could be useful to increase the competitiveness of RES-based power plants for downward regulation, the loss of the incentives can act as a deterrent to the offering of services on the market by DERs. Therefore, other regulatory options, such as the incentives retention in case of downward regulation, could also be needed. Full article

This study investigates whether the inclusion of the fair-value-based hedging performance measure improves the value and risk relevance of accounting earnings using data from the regulatory filings of bank holding companies required by the Federal Reserve Bank. Statement of Financial Accounting Standards No. 133 (SFAS 133) requires most types of hedge ineffectiveness to be measured on a fair value basis and reported in earnings. This earnings recognition requirement was the focal point of controversy surrounding the adoption of SFAS 133. This study provides new evidence that the fair-value-based earnings component required under SFAS has predictive power over future performance. I further show that incorporating this fair-value-based hedging performance measure helps improve the value and risk relevance of accounting earnings. The findings of this study help inform the broader debate over the effect of fair-value-based financial reporting on capital markets. Full article

Besides the integration of renewable energies, electric vehicles pose an additional challenge to modern power grids. However, electric vehicles can also be a flexibility source and contribute to the power system stability. Today, the power system still heavily relies on conventional technologies to stay stable. In order to operate a future power system based on renewable energies only, we need to understand the flexibility potential of assets such as electric vehicles and become able to use their flexibility. In this paper, we analyzed how vast amounts of coordinated charging processes can be used to provide frequency containment reserve power, one of the most important ancillary services for system stability. Therefore, we used an extensive simulation model of a virtual power plant of millions of electric vehicles. The model considers not only technical components but also the stochastic behavior of electric vehicle drivers based on real data. Our results show that, in 2030, electric vehicles have the potential to serve the whole frequency containment reserve power market in Germany. We differentiate between using unidirectional and bidirectional chargers. Bidirectional chargers have a larger potential but also result in unwanted battery degradation. Unidirectional chargers are more constrained in terms of flexibility, but do not lead to additional battery degradation. We conclude that using a mix of both can combine the advantages of both worlds. Thereby, average private cars can provide the service without any notable additional battery degradation and achieve yearly earnings between EUR 200 and EUR 500, depending on the volatile market prices. Commercial vehicles have an even higher potential, as the results increase with vehicle utilization and consumption. Full article

Protected areas are critical for biodiversity conservation and ecosystem services. In the last few years, there has been growing recognition of the role of indigenous peoples and local communities in the management of government designated protected areas, and thus their perceptions and adaptability were paid much attention. Drawing on a survey of 487 residents in the Qilian Mountain National Park Pilot of Northwestern China, this study used the adaptive analysis framework to study the adaptability of local residents. The main contribution of this paper is to select a typical social-ecological system to study the adaptability of local residents, and using Elinor Ostrom’s Social-Ecological System framework to analyze the adaptability mechanism. The results show that different types of residents had different adaptability to environmental change. People whose income mainly depends on work salary with a small part of herding have the highest level of adaptability, while people whose income mostly comes from farming with a small part of herding have the lowest level. This result is related to people’s living location, as people living in the core zone and buffer zone of the reserve mainly earned from grazing, and people living in the experimental zone and peripheral zone earned mainly from outside work. Moreover, people living in the core zone and buffer zone are mostly elders and ethnic groups, while people in the experimental zone and buffer zone are Han people. To improve management effectiveness and to avoid conflict between local residents and managers, this paper suggests that more attention should be paid to these who have lived for a long time in the core zone and buffer zone. They are the most vulnerable groups and show low adaptability in almost all domains. For the long run, education quality should be improved to decrease the population in the reserve. Full article

Gamification along with a whole range of other active methodologies are being incorporated into university classrooms due to their potential benefits for student learning. The aim of this paper was to analyse how a multimodal learning environment based on gamification could affect the final grades of university students in a subject taught at the Faculty of Education in a spanish university. The research was made up of 133 Spanish university students (Mage = 19.60; SDage = 0.43 years old). A quasi-experimental post-test design with a control group was used. The control group and the intervention group consisted of 66 and 67 students respectively. A multimodal gamified learning environment was set up for the intervention group, in contrast to traditional teaching methods which were reserved for the control group. Each one was implemented throughout an academic year. The results revealed statistically significant differences in the final average grade (p < 0.001), with students from the intervention group obtaining higher overall scores. The same occurred in the voluntary learning tasks, with students from the intervention group earning more Health Points (p = 0.006), more Experience Points (p = 0.005), a higher Total Score (p = 0.002) and a higher Level Achieved (p = 0.002). These findings point to the fact that a multimodal gamified learning environment can influence the academic performance of students. However, more scientific research has to be carried out in order to support these findings. Full article

Stock prices are volatile due to different factors that are involved in the stock market, such as geopolitical tension, company earnings, and commodity prices, affecting stock price. Sometimes stock prices react to domestic uncertainty such as reserve bank policy, government policy, inflation, and global market uncertainty. The volatility estimation of stock is one of the challenging tasks for traders. Accurate prediction of stock price helps investors to reduce the risk in portfolio or investment. Stock prices are nonlinear. To deal with nonlinearity in data, we propose a hybrid stock prediction model using the prediction rule ensembles (PRE) technique and deep neural network (DNN). First, stock technical indicators are considered to identify the uptrend in stock prices. We considered moving average technical indicators: moving average 20 days, moving average 50 days, and moving average 200 days. Second, using the PRE technique-computed different rules for stock prediction, we selected the rules with the lowest root mean square error (RMSE) score. Third, the three-layer DNN is considered for stock prediction. We have fine-tuned the hyperparameters of DNN, such as the number of layers, learning rate, neurons, and number of epochs in the model. Fourth, the average results of the PRE and DNN prediction model are combined. The hybrid stock prediction model results are computed using the mean absolute error (MAE) and RMSE metric. The performance of the hybrid stock prediction model is better than the single prediction model, namely DNN and ANN, with a 5% to 7% improvement in RMSE score. The Indian stock price data are considered for the work. Full article

High-volume hydraulic fracturing (“fracking”) for natural gas in the Marcellus Shale (underlying about 24 mil ha in New York, Pennsylvania, Maryland, West Virginia, Ohio, and Virginia) has become a politically charged issue, primarily because of concerns about drinking water safety and human health. This paper examines fracking in the Marcellus region, and the tradeoffs between the energy and economic potential of natural gas extraction and the environmental impacts on wildlife. Therefore, we introduce a new E3 analysis that combines the costs and benefits as regards energy, economics, and the environment. The Marcellus Shale has the most proven reserves of natural gas of any basin in the United States, at 129 trillion cubic feet. Income from natural gas development comes primarily from direct and indirect jobs, and induced jobs (those created when direct workers spend their earnings in a community), taxes and fees, and royalty and lease payments to rights holders. Fracking, however, has detrimental effects on wildlife and wildlife habitats. Terrestrial habitat effects are primarily due to landscape fragmentation from the clearing of land for pipeline and well pad development, which often removes mature forest and creates open corridors and edge habitats. An increase in forest edge and open corridors is associated with shifts in the bird community, as generalist species that do well around people increase in abundance, while forest specialists decline. Invasive plants associated with disturbance further degrade forest habitats. Aquatic habitats are also affected, both directly and indirectly. Hydraulic fracturing requires up to 20 mil L of water per well fracture, most of which comes from surface water sources in the Marcellus region. The removal of water, especially in smaller headwaters, can increase sedimentation, alter water temperature and change its chemistry, resulting in reductions in aquatic biodiversity. Given the reality that hydraulic fracturing will continue, there is a need to develop practices that best minimize negative impacts on terrestrial and aquatic habitats, as well as policies and the resolve to enforce these practices. To achieve a more sustainable balance between economic, energy, and environmental costs and benefits, we recommend that industry, scientists, non-governmental organizations, mineral rights holders, landowners, and regulators work together to develop a set of best management practices that represent the best knowledge available. Full article

Equalization reserves is an insurance liability with features of own capital. By law, Swiss reinsurance and non-life undertakings must hold equalization reserves within their statutory accounts. Regarding Swiss solvency modeling, the equalization reserves are set to zero. Swiss reinsurance and non-life undertakings define the upper limit and the corresponding transfer rule to the equalization reserves; however, this information is not disclosed. The goal of the study is to find a relationship between the equalization reserves and the publicly available technical account items, applying a generalized additive model (GAM). Thereafter, we transform the continuous variables into discrete ones, and we apply a generalized linear model (GLM). The study is based on published data from 1997 to 2018, whereby we restate the implicitly published equalization reserves. For reinsurance undertakings, the GAM model captures the relationship better than the GLM one; for non-life undertakings, the GLM model performs better. For reinsurance undertakings, the equalization reserves depend on the equalization reserves of the previous year, on the calendar year, on the legal form, on the technical result, on the administration and commission costs and on other costs. For non-life undertakings, the equalization reserves depend on the net claims payments, on the equalization reserves of the previous year, on the net change in claims reserves without change in equalization reserves, on the calendar year and on the net earned premium. Furthermore, we look at the need for equalization reserves: do the undertakings accumulate and release the equalization reserves? Further, the impact of taxes on the equalization reserves is looked at. The concept of equalization reserves avoids the misuse of tax optimization. We conclude that the discussion about disclosure of equalization reserves will restart. In addition, the definition of the upper limit of the equalization reserves could be widened by linking the equalization reserves to the insurance/reserving risk from the capital modeling. Full article

The purpose of this study is to advance understanding of the Hispanic contribution to the engagement and production of the sharing and informal economies in the US. The study is situated within the domains of the sharing economy and informality within a broader frame of entrepreneurship. Specifically, Hispanic participation rates, rationale for engagement, and the major drivers of involvement in the production of the sharing and informal economies are analyzed. To evaluate this, data are reported from a nationally representative subsample of Hispanics derived from the US Federal Reserve Board’s Enterprising and Informal Work Activities Survey (EIWA) conducted in the late fall of 2015. The finding is that more than one-third of Hispanics engage in EIWA. Hispanics participate in EIWA primarily as a means to earn extra income or as a key avenue to earn a living. By choice, relatively affluent Hispanics have the largest stake in sharing and informal economies. However, it is the lowest income Hispanics that engage in EIWA out of necessity. The major drivers of EIWA participation among Hispanics are revealed. This is the first known study with a nationally representative sample of Hispanics focused on participation rates, rationale for engagement, and drivers of involvement in the production of new age sharing and informal economies. Full article

A large community of scientists has demonstrated that millions of people located in tropical zones derive a significant proportion of their livelihoods from the extraction of non-timber forest products (NTFPs). Despite these results, questions remain as to whether the valorisation of NTFPs can sustainably contribute to the improvement of the livelihood assets of the extractors. This study therefore evaluated the contribution of NTFP valorisation to the livelihood assets of local people around the northern periphery of the Dja Faunal Reserve (DFR), East Cameroon. To achieve this objective, data collected from 215 households in 32 villages were analyzed using factor analysis, Mann–Whitney U tests, and structural equation modelling. The results suggest that NTFP valorisation significantly contributes to the livelihood assets of local people at the periphery of the DFR. However, NTFP revenue was not significant in predicting their livelihood assets. Moreover, the local conservation management practices were not significant in predicting the livelihood assets in the long run. The results also revealed that individuals who received training and capacity building on good practices such as efficient collection techniques, effective drying techniques, and good conservation techniques earned better revenues and the impact on their livelihood was more significant than for those who did not. These results therefore recommend that the way forward for NTFP valorisation lies at the level of improving its quality and the market. Full article

For many years, passive optical networks (PONs) have received a considerable amount of attraction regarding their potential for providing broadband connectivity to almost every citizen, especially in remote areas where fiber optics can attract people to populate regions that have been abandoned. Error-free connectivity without dropouts can offer new opportunities to communicate, earn money and enjoy cultural events. Transmission speeds are multigigabit with distances of a few tens of kilometers; these specifications were previously reserved for high-speed and long-haul backbone networks. PONs can also support a new class of applications, such as accurate time transfer or distributed fiber sensing and follow new trends in open networking. An outline of past and current standards and standards that have been proposed for the latest generation of multigigabit PONs is provided. Full article