This paper describes the current (July 1998) level of usage of Internet communication technologies by Spanish quoted companies for communication of financial and other information to interested parties. First, in order to place the communication activity in context, the current extent of Internet access in Spain is described. Second, a study of the websites which have been established by Spanish companies quoted on the Madrid Stock Exchange is reported. Finally, the paper discusses the actual and potential development of the Internet as a means of establishing 'corporate dialogue' (Spaul, 1997) with stakeholders.
Purpose: The study herein develops and tests a credit scoring model which can help financial institutions in assessing credit requests.
Design/methodology:The empirical study has the objective of answering two questions:(1) Which ratios better discriminate the companies based on their being solvent or insolvent?and (2) What is the relative importance of these ratios? To do this, several statistical techniques with a multifactorial focus have been used (Multivariate Analysis of Variance, Linear Discriminant Analysis, Logit and Probit Models). Several samples of companies have been used in order to obtain and to test the model.
Findings:Through the application of several statistical techniques, the credit scoring model has been proved to be effective in discriminating between good and bad creditors.
Research limitations/implications:This study focuses on manufacturing, commercial and services companies of all sizes in Spain; Therefore, the conclusions may differ for other geographical locations.-51-Intangible Capital -http://dx.doi.org/10.3926/ic.903
Practical implications:Because credit is one of the main drivers of growth, a solid credit scoring model can help financial institutions assessing to whom to grant credit and to whom deny it.
Social implications:Because of the growing importance of credit for our society and the fear of granting it due to the latest financial turmoil, a solid credit scoring model can strengthen the trust toward the financial institutions assessment's.
Originality/value:There is already a stream of literature related to credit scoring. However, this paper focuses on Spanish firms and proves the results of our model based on real data.The application of the model to detect the probability of default in loans is original.
There are few studies in the literature that examine the combined effect of quality and environmental policies on the financial performance of small service businesses. This gap becomes more evident in highly competitive segments with high mortality rates. This is the case of travel agencies in Spain. This study was carried out by analysing 198 surveys answered by managers of travel agencies, which represents the 5% of the sector. The data obtained were treated with structural equations. The results of this analysis do not find a direct relationship between the implementation of quality policies and financial performance. However, the data show a positive and indirect relationship between them, being both the improvement of the competitiveness as the implementation of environmental policies the mediators between quality and finance. In this sense, this study provides evidence that the commitment to sustainability can be a valid strategy to improve the financial performance of the company.
Preparers of accounting information are in a position to manipulate the view of economic reality presented in this information to interested parties. These manipulations can be regarded as morally reprehensible because they are not fair to users, they involve an unjust exercise of power, and they tend to weaken the authority of accounting regulators. This paper develops a model for detecting earning manipulators using financial statements ratios in a sample of Spanish listed companies. Our results provide evidence that accounting data can be extremely useful in detecting manipulators. This approach can be used by a large category of users of accounting information among them we can cite the stock exchange supervisors or investing professionals.
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