Relevance of the Attention Effect in the Brazilian Stock Market

This article aims to analyze the impact of investor attention in the Brazilian stock market, particularly the effect of positive pressure on asset prices verified by Barber and Odean (2008 Barber, B. M., &; Odean, T. (2008). All that glitters: The effect of attention and news on the buying behavior of individual and institutional investors. Review of Financial Studies, 21(2), 785–818. doi:10.1093/rfs/hhm079[Crossref], [Web of Science ®] , [Google Scholar]). Using the methodology of Da and colleagues (2011 Da, Z., Engelberg, J., &; Gao, P. (2011). In search of attention. The Journal of Finance, 66(5), 1461–99. doi:10.1111/j.1540-6261.2011.01679.x[Crossref], [Web of Science ®] , [Google Scholar]), we seek to assess whether investor attention, as measured by the volume of searches on Google, can explain abnormal variations in market activity and asset returns. The results indicated that the Internet search data does explain variations in turnover rate and trading volume of assets. However, unlike the results of studies conducted in other countries, the price pressure hypothesis was not observed in the Brazilian market.     

Hedging,selective hedging,or speculation? Evidence of the use of derivatives by Brazilian firms during the financial crisis

This paper analyse the use of foreign exchange derivatives by non-financial publicly traded Brazilian companies from 2007 to 2009. Using balance-sheet data on firms’ positions in derivatives and their foreign exchange exposure, the paper verifies the existence of three groups of derivative users: hedgers, selective hedgers – companies that significantly changed the volume of derivatives used during this period, but used them in line with their currency exposure – and active speculators – companies that adopted positions that would have been inadvisable had the aim been to hedge their currency exposure. Selective hedgers and speculators have one similarity: both tried to obtain gains through the continuous process of domestic currency appreciation. Confirming the optimal hedging literature, the paper shows that several firm characteristics are able to explain the use of derivatives and hedging by firms but market timing in the derivative markets is explained solely by firms’ foreign exposure, corporate governance and the macroeconomic environment.     

Leveraging Associations: The Promotion of Cultural Sponsorships

SUMMARY

Sponsorship of the arts is growing as a marketing communication method, and companies are using this tool to achieve various business objectives. These include branding, corporate hospitality, and building community relations. The activities that the companies engage in to promote the sponsorships are guided by the objectives they wish to achieve. Additional leveraging is supported by advertising and public relations for branding. For corporate hospitality, promotional support is vested in personal selling with public relations initiatives. For community relations, promoting the sponsorship is focused primarily on public relations activities with an emphasis on personal selling.     

Demand for reinsurance： Evidence from Australian insurers

Reinsurance is widely recognised as important in insurer risk and capital management. This paper examines the factors that determine insurer demand for reinsurance using Australian data. The Australian situation is interesting because of the tax imputation system and the prudential regulations that were in force during the period of the study. As far as the authors are aware, this is the first paper to empirically analyse the demand for reinsurance in Australia. A panel-data set （1996-2001） is used, which provides 543 observations. The authors provide a careful approach to econometric diagnostic testing and the choice of the most appropriate panel-data model and the authors show how failure to do so may generate misleading results. Based on a robust estimation procedure, the authors find strong evidence of a positive relation between variables related to company size and the demand for reinsurance in Australia. The impact of leverage, taxes, and return on investments are not statistically significant.     

Understanding Brazilian companies' foreign exchange exposure

The paper analyzes the exchange rate exposure of a sample of non-financial Brazilian companies from 1999 to 2009. The results confirm the importance of using nonlinear models to address companies' exchange rate exposure. The results indicate that when compared to the linear model commonly used in literature, the nonlinear model leads to an increase in the number of firms exposed to exchange rate fluctuations, which allows a more accurate analysis of the impact of exchange rate fluctuations on the value of firms. In addition, the paper shows that exporters and companies that hold foreign currency denominated debt are more likely to be exposed to exchange rate fluctuations and that the nonlinearity of companies' foreign exchange exposure is associated with the use of foreign currency derivatives.     

Corporate financial policies and the exchange rate regime: Evidence from Brazil

This paper analyzes the relationship between companies' financial policies and the exchange rate regime for a sample of non-financial Brazilian companies from 1996 to 2006. The adoption of a floating exchange rate regime is shown to improve the match between the currency composition of companies' assets and liabilities. The paper also shows that this reduction in companies' currency mismatches is more pronounced for companies in the highest quantile of foreign exposure; therefore the results confirm that the exchange rate regime plays an important role in the determination of companies' foreign vulnerability.     

Economic Analysis of the Policy for Accreditation of Dairy Farms Free of Bovine Brucellosis and Tuberculosis: Challenges for Small and Large Producers in Brazil

One of the cornerstones of the National Program for Control and Eradication of Bovine Brucellosis and Tuberculosis in Brazil is the voluntary accreditation of free herds. We developed a stochastic cost–benefit analysis model for two types of dairy herds (high yield Holstein‐Zebu crossbred females and lower productivity smaller scale herds) to identify the technical and economic constraints of this process. The initial prevalence of infected animals and the impact of the disease in the structure and performance of the herd were derived from secondary data. Information on the costs and benefits of herd sanitation were compiled into a cost–benefit model at the herd level. The last step consisted of a scenario simulation to evaluate the impact of alternative policies to the certification process. For each scenario, we calculate the probability over time of a Benefit–Cost Ratio greater than 1 and of an Internal Rate of Return above 1% (the discount rate used in the model). Results show that larger and more intensive dairy farms, and also herds affected by brucellosis compared with tuberculosis‐positive herds, are more likely to achieve financial gains from the certification investment. The compensation for culled animals is important in the initial phase of herd sanitation and the premium payment on milk would help farmers to achieve a return on the investment over time. The model can be adapted to different and dynamic production, epidemiological and economic settings.     

The evolving role of large and medium farms on Brazilian agriculture

We use Brazilian agricultural censuses data since 1970 to describe land structure evolution in Brazil, focusing on the most important agricultural commodities and livestock products across regions. The analysis reveals a remarkable stability in the number of farms in the period, as well as in the structure of land distribution across farm sizes, with a persistence of a dual agricultural structure. Land distribution, as measured by the GINI index, has changed very little and is still very high. The number of large farms is increasing significantly in time, while the number of farms with area below 500 ha changed little in the 1970–2006 period. Medium‐sized and large farms, although heavily outweighed in numbers, account for the highest share of annual crop production currently, and their share in crop (annual plus permanent) production value increased between 1980 and 2006, while the same share decreased for smaller farms. We conclude that the observed stability will probably reduce in the future, as economic forces will likely change the balance in favor of an increase in the number of large farms. This is an issue of obvious political importance, especially considering the importance of the smaller farms for employment in agriculture.     

Using an educational video-briefing to mitigate the ecological impacts of scuba diving

Recreational scuba diving is rapidly increasing, and the negative impacts to marine reef biota are of conservation concern. Educational approaches have been tested to mitigate diver damage to benthic organisms, but logistical constraints impede their implementation in many locations. We investigated the behaviors of scuba divers in terms of their contacts with benthic organisms, and assessed how an educational video-briefing caused changes in diver behavior. The video provided environmental information to divers, and enhanced their use of low-impact diving techniques. Divers who received the video-briefing exhibited significantly lower rates of contact with and damage to the benthos, than did divers who did not receive a briefing. The level of diving experience did not correlate with the rate of benthic contact in either group of divers. Male divers and photographers both contacted the benthos significantly less, and female divers and photographers both caused significantly less damage when they viewed the video-briefing prior to diving. Our findings highlight the importance of easily implemented, standardized educational approaches such as the use of video-briefings to mitigate the impacts of scuba diving. This study adds to the framework of tested strategies available to support the sustainable use of marine areas by the diving tourism industry.