• Determinants of Repayment among Male and Female Microcredit Clients in the USA. An Approach Based on Managers’ Perceptions

    Emilio M. Santandreu, Joaquín López Pascual and Salvador Cruz Rambaud (2020). Determinants of Repayment among Male and Female Microcredit Clients in the USA. An Approach Based on Managers’ Perceptions (Sustainability). February, 2020. 

    Research on microfinance institutions (MFIs) has normally been focused on developing and emerging markets. However, an analysis of developed countries is also important for foreign MFIs wishing to take advantage of the growth potential of those markets.

    Therefore, the aim of this article is to determine whether MFIs working in the USA’s market should change or adapt their microcredit policies with respect to women. In e ect, there are no studies in the USA supporting the argument that women are a better risk of microcredit than men, or that there are di erences in microcredit repayment behavior between women and men.

    Additionally, it was investigated if the payment behavior of women and men is related to variables such as their age, ethnicity, academic level, marital status, or the characteristics of the microcredits, like purposes, amounts, and payment terms. In the USA, there are not—as in other countries—strong incentives, motivations, or external pressures, other than those that men also have, which influence women to pay their microloans better than men.

    Then, domestic and international MFIs attracted to enter the USA’s market should review their microcredit policies in relation to women. More research is needed about the microfinance market in the USA.

  • Microfinance institutions in the USA: the glocalization of microcredit policies in relation to gender

    Emilio M. Santandreu and Joaquín López Pascual (2019) «Microfinance institutions in the USA: the glocalization of microcredit policies in relation to gender» Enterprise Development and Microfinance (Practical Action Publishing), June 01, 2019.

    The aim of this research was to inquire if foreign microfinance institutions (MFIs), interested in entering the US microfinance market because of its location advantages, should glocalize their microcredit policies. Research found that women in the USA are a no better risk for microcredit than men, and there are no differences in the repayment of microloans between men and women. The payment behaviour of women and men related to certain specific variables was also investigated. A survey sent to 203 MFIs was used, to which 17.73 per cent responded. Findings show that, in the USA, there are no strong incentives, motivations or external pressures which influence women to pay microcredits better than men. Therefore, international MFIs entering the USA should glocalize their microcredit policies in relation to women as well as their product design and policies for granting microloans.

    ORCID Joaquín López Pascual:

  • Neural implications of investment banking experience in decision-making under risk and ambiguity

    Ortiz-Teran, Elena; Ortiz, Tomas; Turrero, Agustin; Lopez-Pascual, Joaquin. (2019). “Neural implications of investment banking experience in decision-making under risk and ambiguity”. Journal of Neuroscience, Psychology, and Economics, Jan 28 , 2019.

    Financial decision-making is governed by cognitive and emotional processes. However, it is possible to learn how to manage both before making a decision based on experience. Electroencephalography might provide some insight into what is behind these choices by analyzing the slow negativity preceding a risky decision, known as the decision preceding negativity (DPN). The DPN is involved in cognitive processes associated with the elaboration of the planned response as well as the anticipation of the affective motivational stimuli. Using monetary gamble under risk (outcome probabilities are known) and ambiguity (outcome probabilities are unknown), we studied the DPN in a group of investment bankers, to see if individual financial experience influences anticipatory potentials that precede choices. Our results showed that investment bankers are able to shorten their anticipatory decision-making process by having a DPN closer to motor response. As this occurs, the prefrontal and orbitofrontal brain areas under risk were activated due to the role that emotions play in financial decision-making. On the other hand, under the ambiguity condition, activation of the prefrontal areas was caused by cognitive regulation of emotion. Our conclusion is that financial experience also influences risky choices by shortening the decision-making process while balancing cognitive and emotional processes, which depend on the amount of missing information. (PsycINFO Database Record (c) 2019 APA, all rights reserved)

    Otros Papers de Joaquín López Pascual:

  • Preferences over sequences of payments: A new validation of the q-exponential discounting

    Salvador Cruz Rambaud, Joaquín López Pascual, María de los Ángeles del Pino Álvarez. (2019). «Preferences over sequences of payments: A new validation of the q-exponential discounting» Volume 515. Physica A: Statistical Mechanics and its Applications-Journal-Elsevier. pp 332-345

    The preference for incremental gains, or the improving sequence effect, has been presented as one of the most important anomalies in intertemporal choice. Usually, the experiments to verify this effect have been based on sequences of incomes, and most of them have shown a preference for an increasing sequence.

    The objective of this paper is to analyse this topic in the context of loan repayment plans where a preference for constant and decreasing over rising payments is expected. The methodology applied in this paper is based on the use of questionnaires in the same way as Hoelzl et al. (2011) to evaluate different loan plans with the same interest rates and durations. It clearly shows that people prefer those plans which repay more at the beginning of the loan duration. Thus, the main contribution of this paper is the use of the q-exponential discounting to explain this revealed decreasing sequence effect because the q-exponential discount function can exhibit the inconsistency in intertemporal choices based on a decreasing interest rate. Finally, recommendations are made for banking institutions when considering their strategies of interest rate offers in the context of bank marketing.

  • Correlation Studies on Corporate Governance, Financial Structure, and Merger and Acquisition Premium in Ecological Enterprises

    Yuheng Zhao, Joaquín López Pascual. Correlation Studies on Corporate Governance, Financial Structure, and Merger and Acquisition Premium in Ecological Enterprises.

    Under the competitive era nowadays, mergers and acquisitions become frequent among enterprises globally. Enterprises start to expand the market size with mergers and acquisitions.

    Although mergers and acquisitions could help enterprises develop the synergy, enhance the adjustment according to the environment, and accelerate the business transformation, acquirers have to pay a large sum for it. An ecological enterprise overpaying for mergers and acquisitions might result in the acquirer hard to recovering the costs and cause merger and acquisition failure.

    Chinese ecological enterprises’ mergers and acquisitions of European ecological enterprises with equity transfer and assets agreement in 2012-2016 are selected as the initial samples in this study.

    The research results show 1. partially significant correlations between corporate governance and financial structure, 2. remarkable correlations between financial structure and merger and acquisition premium, and 3. notable correlations between corporate governance and merger and acquisition premium.

    Suggestions, according to the results, are eventually proposed, expecting to further help ecological enterprises, through factors, be close to the practical market for successful mergers and acquisitions.

  • On asset managers, hedge funds and ETFs

    Joaquín López Pascual, Santiago Camarero Aguilera (2017). Nº14 «On asset managers, hedge funds and ETFs»,  in The IEB Aestimatio. International Journal of Finance, pp 26-45.

    The returns generated by the traditional asset management industry do not justify the current fees charged. An «excessive» reward for the risk taken leads to the assumption of disproportionate risks and to a non-efficient allocation of resources. This situation has been become more evident with the appearance of low-cost index-tracking funds, such as exchange-traded funds (ETFs) and robo-advisors, which are favoured in the current low-return, low-volatility and high-correlation investment climate. However, the market cannot be entirely made up of index funds with no discrimination; this would ultimately lead to a massive misallocation of capital.

     In this context, the traditional asset management and hedge fund industries need to evolve and adapt to the new environment that requires more transparency, lower fees and new pay structures with more robust set ups.

  • Big Data and Earned Value Management in Airspace Industry

    Joaquín López Pascual, Juan Carlos Meléndez Rodríguez, Pedro Cañamero Molina, Fausto Pedro García Márquez (2017). Chapter 10. » Big Data and Earned Value Management in Airspace Industry «,  in » Big Data Management «.  Ed. Springer, pp 257-267.

    This book focuses on the analytic principles of business practice and big data. Specifically, it provides an interface between the main disciplines of engineering/technology and the organizational and administrative aspects of management, serving as a complement to books in other disciplines such as economics, finance, marketing and risk analysis. The contributors present their areas of expertise, together with essential case studies that illustrate the successful application of engineering management theories in real-life examples.

    Provides an interdisciplinary approach to big data, merging the perspectives of contributors from various fields of research.

    Aimed at engineers, economists, and researchers who employ engineering management in the course of their work.

    Offers insightful real-life case studies to illustrate the applications of big data in management.

    Joaquín López Pascual ORCID:

  • An Overview of Earned Value Management in Airspace Industry

    Joaquín López Pascual, Juan Carlos Meléndez Rodríguez, Pedro Cañamero Molina, Fausto Pedro García Márquez. (2016). «An Overview of Earned Value Management in Airspace industry«, in Proceedings of the Tenth International Conference on Management Science and Engineering Management. Ed. Springer. pp 1465-1477.

    Earned value management (EVM) is an effective Project management approach. This method is used to manage Project of different sectors and has been revised to improve its Schedule estimates, the Earned Schedule Management and the Earned Duration Managemente and to include new components as quality, the quelity earned value management. This paper explores the EVM methodology and proposes a model to manage projects aerospace engineers based in a real case study. The inputs in the model are the planning and the monitoring of the case study, planned value, earned value and actual cost of aerospace projects. 

  • The Assessment and Selection of Hedge Funds

    Joaquín López Pascual. (2015).  Chapter 10. «The Assessment and Selection of Hedge Funds«, in Advanced Business Analytics. Ed. Springer, pp 195-210.

    The following Chapter intends to be a small guide to investing in hedge funds or a guide to take into account when trying to understand the complexities of investing in hedge funds. We aim to give a general overview of the field of alternative investments and to introduce its complexities, because investing in hedge funds is not at all a very simple task.

    In this Chapter, we assess the challenges of analysing and selecting hedge funds. Alternative investment vehicles have taken an important role not only in the diversification of portfolios but also as standalone investments. Capturing the entire risk dimensions implied in hedge fund investment strategies is paramount in understanding alternative investments. We also analyse the problem of the lack of benchmarks. Should the performance of a hedge fund follow a benchmark? As absolute return vehicles, alternative investment organizations should not be benchmarked. However, investors need to compare returns with other assets in order to properly assess the cost of opportunity implied in hedge fund investing. We consider also benchmarking among peers as a new and latest strategy.

  • Evolución y análisis de la financiación de la PYME en España

    Joaquín López Pascual (2014). «Evolución y análisis de la financiación de la PYME en España«, en Revista de Economía ICE. Nº879. Ed. Ministerio de Economía y Competitividad,  pags. 113-124.

    This article analyses the evolution of the financing of small and médium-sized enterprises, paying special attention to traditional financing and other sources of alternative financing to be fostered and considered by companies. The importance of small and medium-sized enterprises as a driver of growth and employment makes them a key element in economic growth policies.

    This study analyses the economic context as a determining factor of their financing, chiefly the intensity of the crisis emerging with particular force from 2008 onwards, which modified the financing structures of companies and made their access to financing more complex. Various sources of financing are discussed, with a focus on bank lending, as most of the financing of these businesses comes from financial entities.

    Other sources of financing are also discussed in a special section on sources that have still not reached a significant weight but could become a supplementary alternative to other more traditional sources used by our business fabric (i.e., business angels, crowdfunding, etc.), allowing SMEs to access different financing alternatives with a greater future projection-sources that are being implemented with the relevant regulatory developments on a national and a European level.

  • Restructuring bank networks after mergers and acquisitions: A capacitated delocation model for closing and resizing branches

    Joaquín López Pascual, Diego Ruiz-Hernández, David Delgado-Gómez (2015) have collaborated on a new research article. «Restructuring bank networks after mergers and acquisitions: A capacitated delocation model for closing and resizing branches» in «Computers & Operations Research». Vol 62, October 2015. Pages 316-324.

    During restructuring processes, due to mergers and acquisitions, banks frequently face the problem of having redundant branches competing in the same market. In this work, we introduce a new Capacitated Branch Restructuring Model which extends the available literature in delocation models. It considers both closing down and long term operations? costs, and addresses the problem of resizing open branches in order to maintain a constant service level. We consider, as well, the presence of competitors and allow for ceding market share whenever the restructuring costs are prohibitively expensive.

    We test our model in a real life scenario, obtaining a reduction of about 40% of the network size, and annual savings over 45% in operation costs from the second year on. We finally perform a sensitivity analysis on critical parameters.

    This analysis shows that the final design of the network depends on certain strategic decisions concerning the redundancy of the branches, as well as their proximity to the demand nodes and to the competitor?s branches. At the same time, this design is quite robust to changes in the parameters associated with the adjustments on service capacity and with the market reaction.

  • The Investment in Hedge Funds as an Alternative Investment

    Joaquín López Pascual (2013) Chapter 8, «The Investment in Hedge Funds as an Alternative Investment» in  Engineering Management. Ed Intech, pp 167-180.

    One of the most relevant industries of the modern financial management is the investment in hedge funds. The hedge fund industry is a heterogeneous group. One way to classify hedge funds is according to the investment strategy used, each offering a different degree of return and risk. Their historical return distributions provide with key information in order to understand the strategies behaviour.