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Impaired Asset Management and the Optimal Timing of Write-Down Decisions

Impaired Asset Management and the Optimal Timing of Write-Down Decisions
Author: Avi Messica
Publisher:
Total Pages: 17
Release: 2017
Genre:
ISBN:

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Asset write-down refers to a reduction of an impaired asset's value on a firm's balance sheet. Impaired asset management has attracted much attention since the 2008 credit crunch crisis with respect to regulation, corporate and managerial ethics, capital market response and more. The common approach in past studies of write-downs based the decision-making process on agency-related reasoning. This paper presents a quantitative financial analysis of the optimal write-down timing of an impaired asset under different settings as well different managerial attitudes. We applied a conditional time-averaged value of a firm's stock price to model the manager's decision-making process and analyzed the optimal timing of write-down with respect to the capital market as well as management's expectations. Different exogenous settings of the optimal write-down timing such as impairment recovery rate and stock price return were analyzed. Moreover, a rational-type and a behavioral-type models of managers were also studied. Under most settings, our findings indicate that the common practice among managers, of write-down aversion, is optimal. However, counter-intuitively, we found that under specific setting the optimal action is, on the contrary, to write down. Moreover, write-down decision is also dependent on the firm's stock price daily volatility. Managers of firms having stocks of high price volatility are in a favored position, decision-making wise, in comparison against manager of low volatility stocks.


Optimum Decision Making in Asset Management

Optimum Decision Making in Asset Management
Author: Carnero, María Carmen
Publisher: IGI Global
Total Pages: 553
Release: 2016-08-24
Genre: Business & Economics
ISBN: 1522506527

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Asset management is becoming increasingly important to an organization’s strategy, given its effects on cost, production, and quality. No matter the sector, important decisions are made based on techniques and theories that are thought to optimize results; asset management models and techniques could help maximize effectiveness while reducing risk. Optimum Decision Making in Asset Management posits that effective decision making can be augmented by asset management based on mathematical techniques and models. Resolving the problems associated with minimizing uncertainty, this publication outlines a myriad of methodologies, procedures, case studies, and management tools that can help any organization achieve world-class maintenance. This book is ideal for managers, manufacturing engineers, programmers, academics, and advanced management students.


Model Rules of Professional Conduct

Model Rules of Professional Conduct
Author: American Bar Association. House of Delegates
Publisher: American Bar Association
Total Pages: 216
Release: 2007
Genre: Law
ISBN: 9781590318737

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The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.


EBOOK: Financial Accounting (GE), 8e

EBOOK: Financial Accounting (GE), 8e
Author: Robert Libby
Publisher: McGraw Hill
Total Pages: 866
Release: 2016-04-16
Genre: Business & Economics
ISBN: 0077185447

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EBOOK: Financial Accounting (GE), 8e


Federal Register

Federal Register
Author:
Publisher:
Total Pages: 144
Release: 2012-09
Genre: Delegated legislation
ISBN:

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Financial Sector Crisis and Restructuring

Financial Sector Crisis and Restructuring
Author: Carl-Johan Lindgren
Publisher:
Total Pages: 103
Release: 1999
Genre: Business & Economics
ISBN: 9781557758712

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An IMF paper reviewing the policy responses of Indonesia, Korea and Thailand to the 1997 Asian crisis, comparing the actions of these three countries with those of Malaysia and the Philippines. Although all judgements are still tentative, important lessons can be learned from the experiences of the last two years.


Issues in the Establishment of Asset Management Companies

Issues in the Establishment of Asset Management Companies
Author: Mr. Stefan N. Ingves
Publisher: International Monetary Fund
Total Pages: 31
Release: 2004-05-01
Genre: Business & Economics
ISBN: 145523155X

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This paper discusses the role of asset management companies (AMCs) in facilitating bank restructuring and specifies some policy lessons learned from international experience. The paper concludes that there is no single optimal solution but a combination of strategies that will vary from bank to bank and country to country. There are, however, common factors that contribute to the success of an AMC and these include the legal environment, leadership, independence, incentives, and commercial orientation.


Making Eye Health a Population Health Imperative

Making Eye Health a Population Health Imperative
Author: National Academies of Sciences, Engineering, and Medicine
Publisher: National Academies Press
Total Pages: 587
Release: 2017-01-15
Genre: Medical
ISBN: 0309439981

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The ability to see deeply affects how human beings perceive and interpret the world around them. For most people, eyesight is part of everyday communication, social activities, educational and professional pursuits, the care of others, and the maintenance of personal health, independence, and mobility. Functioning eyes and vision system can reduce an adult's risk of chronic health conditions, death, falls and injuries, social isolation, depression, and other psychological problems. In children, properly maintained eye and vision health contributes to a child's social development, academic achievement, and better health across the lifespan. The public generally recognizes its reliance on sight and fears its loss, but emphasis on eye and vision health, in general, has not been integrated into daily life to the same extent as other health promotion activities, such as teeth brushing; hand washing; physical and mental exercise; and various injury prevention behaviors. A larger population health approach is needed to engage a wide range of stakeholders in coordinated efforts that can sustain the scope of behavior change. The shaping of socioeconomic environments can eventually lead to new social norms that promote eye and vision health. Making Eye Health a Population Health Imperative: Vision for Tomorrow proposes a new population-centered framework to guide action and coordination among various, and sometimes competing, stakeholders in pursuit of improved eye and vision health and health equity in the United States. Building on the momentum of previous public health efforts, this report also introduces a model for action that highlights different levels of prevention activities across a range of stakeholders and provides specific examples of how population health strategies can be translated into cohesive areas for action at federal, state, and local levels.


Guidelines for Public Expenditure Management

Guidelines for Public Expenditure Management
Author: Mr.Jack Diamond
Publisher: International Monetary Fund
Total Pages: 84
Release: 1999-07-01
Genre: Business & Economics
ISBN: 9781557757876

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Traditionally, economics training in public finances has focused more on tax than public expenditure issues, and within expenditure, more on policy considerations than the more mundane matters of public expenditure management. For many years, the IMF's Public Expenditure Management Division has answered specific questions raised by fiscal economists on such missions. Based on this experience, these guidelines arose from the need to provide a general overview of the principles and practices observed in three key aspects of public expenditure management: budget preparation, budget execution, and cash planning. For each aspect of public expenditure management, the guidelines identify separately the differing practices in four groups of countries - the francophone systems, the Commonwealth systems, Latin America, and those in the transition economies. Edited by Barry H. Potter and Jack Diamond, this publication is intended for a general fiscal, or a general budget, advisor interested in the macroeconomic dimension of public expenditure management.