The within-distribution business cycle dynamics of German firms

In this article, we analyse stylized facts for Germany's business cycle at the firm level. Based on longitudinal firm-level data from the Bundesbank's balance sheet statistics covering, on average, 55 000 firms per year from 1971 to 1998, we estimate transition probabilities of a firm in a certain real sales growth regime switching to another regime in the next period, e.g. whether a firm that has witnessed a high growth rate is likely to stay in a regime of high growth or is bound to switch to a regime of low growth in the subsequent period. We find that these probabilities depend on the business cycle position.     

Investment cash flow sensitivity and financial constraint: a cluster analysis approach

This article sheds light on the mixed empirical evidence concerning financial constraint and investment sensitivity to cash flow. The literature suggests that measuring financial constraint is far from straightforward, and we therefore propose a cluster analysis procedure to identify unambiguous groups of constrained firms. We found the investment results to be highly sensitive to cash flow for financial constraint firms. Moreover, in line with previous research, our results showed that the traditional criteria used to identify financially constrained firms led to ambiguous interpretations. Overall, our results propose that the cluster analysis can be used to encompass the various single-criterion approaches, thereby providing a finer measurement of the financial constraint construct and deeper insight into the relationship between investment sensitivity to cash flow and financial constraint.     

Supply Chain Relationships and SME Firms' Competitiveness in the Spanish Pig-to-Cured Ham Chain

The objective of the article is to examine whether relationship quality in the Spanish pig-to-cured ham supply chain positively influence small and medium enterprise (SME) stakeholders' competitiveness. A structural equation modeling approach has been used with information from a survey conducted on farmers, processors, and retailers in the pig-to-cured ham chain located in the Spanish region of Aragon.

Results indicate that the quality of the relationship positively influences stakeholders' competitiveness in the supply chain. Second, improvements in communication also positively affect the quality of the relationships. Then, the quality of communication has also a positive effect on stakeholders' competitiveness through the relationship quality.     

Financial Management and Effectiveness in Public Service Organizations: The CIPFA FM Model

Improving services in the public sector is not just about front-line delivery—effective governance and financial management are key drivers for public bodies on the improvement path. Regulatory frameworks are putting these elements in the spotlight as they seek to track additional investment and its impact on services. No longer just about accounting for the money and demonstrating stewardship, financial management in the public services is about giving the right decision support and enabling the right choices. Modern public bodies need to make sure they are financially literate throughout their operations to meet their organizational goals effectively. Self-assessment and improvement planning can work for financial management and a framework developed by public finance professionals in the UK's public sector is described in this article. The article draws upon the CIPFA FM Model that is to be launched in Summer 2004.     

Theorie und Praxis im Controlling: Koexistenz oder Interaktion?

Ohne Zusammenfassung     

Alternativen zu Value at Risk

The industry standard for the measurement of the downside risk of financial positions, Value at Risk (VaR), has serious deficiencies. In the current article we systematically discuss properties of risk measures and alternatives to VaR. It is demonstrated that utility-based shortfall risk (UBSR) possesses many desirable properties.