Papers by Nicoleta Vintila
Studia Universitatis Vasile Goldiş, Arad - Seria Ştiinţe Economice, 2008
DOAJ (DOAJ: Directory of Open Access Journals), Sep 1, 2007
Estimating discount rate for an investment project is one of the most challenging tasks in capita... more Estimating discount rate for an investment project is one of the most challenging tasks in capital budgeting. In this paper we discuss different kind of models for cost of equity capital proposed in finance literature (static CAPM, conditional CAPM, APT, build-up model), focusing especially on advantages and disadvantages of using each of them. In the final section, we estimate the discount rate for a certain project financed entirely with equity capital, using a version of build-up model.
RePEc: Research Papers in Economics, Aug 1, 2021
The focus of this article is to capture how we can create more value by using real options as a t... more The focus of this article is to capture how we can create more value by using real options as a tool adding flexibility to managerial decisions. Similar to financial options, we define and explain the parameters that we need to estimate and include in the valuation models (Black-Scholes or binomial). The concrete steps taken in the application of these models are shown in a case study dwelling on the valuation of the deferred investment option for a ceramic tile manufacturing facility. Besides the estimation of the option value and its interpretation, we have joined a sensitivity analysis of the value estimation, based on the main parameters (volatility and maturity), thus making it possible to identify the optimal moment to exercise the option, to carry out the project and enter the market.
Cost Benefit Analysis is one of the most widely used financial tools to select future investment ... more Cost Benefit Analysis is one of the most widely used financial tools to select future investment projects in public and private sector. This method is based on comparing costs and benefits in terms of constant prices. While costs are easier to predict and monetize, the benefits should be identified not only in direct relation with the investment, but also widening the sphere of analysis to indirect benefits experienced by the community from the neighbourhood or the whole society. During financial analysis, respectively economic analysis, benefits are taken into account in a different basis. While financial analysis deals with direct revenues generated by the investment project, the economic analysis integrates supplementary social benefits monetized using different methods of estimation. The quality of economic analysis is vital in accepting investment projects because economic rationality should be respected, especially positive value for NPV. The most challenging part of CBA is to...
The aim of this paper is to investigate the fairness and the redistributive effects of personal i... more The aim of this paper is to investigate the fairness and the redistributive effects of personal income tax (PIT) in seven Central and Eastern European countries, namely: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania and Romania. Following Kakwani and Lambert (1998) methodology, we test tax equity and progressivity. We study the asymmetry of salary income distribution in order to examine the horizontal equity among individuals in the same group. We calculate the Gini coefficients in order to investigate the redistributive effects of PIT regulatory frameworks. We find that tax equity is fulfilled by all countries. However, PIT regulations does not allow for strong progressivity and for redistributive effects.
The focus of this article is to capture how we can create more value by using real options as a t... more The focus of this article is to capture how we can create more value by using real options as a tool adding flexibility to managerial decisions. Similar to financial options, we define and explain the parameters that we need to estimate and include in the valuation models (Black-Scholes or binomial). The concrete steps taken in the application of these models are shown in a case study dwelling on the valuation of the deferred investment option for a ceramic tile manufacturing facility. Besides the estimation of the option value and its interpretation, we have joined a sensitivity analysis of the value estimation, based on the main parameters (volatility and maturity), thus making it possible to identify the optimal moment to exercise the option, to carry out the project and enter the market.
Estimating discount rate for an investment project is one of the most challenging tasks in capita... more Estimating discount rate for an investment project is one of the most challenging tasks in capital budgeting. In this paper we discuss different kind of models for cost of equity capital proposed in finance literature (static CAPM, conditional CAPM, APT, build-up model), focusing especially on advantages and disadvantages of using each of them. In the final section, we estimate the discount rate for a certain project financed entirely with equity capital, using a version of build-up model.
Traditional discounted cash-flows method for assessing projects assumes that investment decision ... more Traditional discounted cash-flows method for assessing projects assumes that investment decision is an irreversible one, which is not correct. Managers can and must reconsider their initial decision as the new information arises during the project life. This is managerial flexibility and it creates strategic value for a project, only if management takes advantage of the opportunities associated with an analyzed project. Real options represent a new approach in capital budgeting, using the theory of pricing financial options for investments in real assets. In this paper, we emphasize the characteristics and valuation methodologies of real options. The objective in the last section is pricing the option to delay and the option to abandon a project in construction materials field.
The estimation of the cost of equity is decisive for a reliable calculation of the Net Present Va... more The estimation of the cost of equity is decisive for a reliable calculation of the Net Present Value. We present the principles and the basic correlations that have to be taken into account in the estimation of the cost of equity. The paper also highlights the advantages and limitations of the discussed models and explains the importance from investors’ and analysts’ points of view.
Economic computation and economic cybernetics studies and research / Academy of Economic Studies
In the global economy, taxation is an important factor in the decision making process, especially... more In the global economy, taxation is an important factor in the decision making process, especially for investment projects implementation in one state or another. Therefore, the level of corporate tax, providing tax relief, tightening the tax system may be elements that lead to fiscal competition between states to attract investments. Therefore, not the statutory tax rate, but the effective tax rate on profit is relevant in determining the tax benefits for a country. This paper aims to analyze the relationship between effective tax rate and statutory rate, based on the results recorded by the companies listed on Bucharest Stock Exchange during the period 1997-2009. It demonstrates that the unique statutory tax rate is a theoretical concept, and the effective rate differs from this level. Basically, the key element in calculating the corporate income tax is given by the deductibles. Keywords: corporate income tax, unique tax rate, emerging economies, Romania JEL Classification: H22, H...
ecocyb.ase.ro
... Lucian łâŃu, Victor Dragota, Nicoleta Vintila _____ accompanied by the introduction of the mi... more ... Lucian łâŃu, Victor Dragota, Nicoleta Vintila _____ accompanied by the introduction of the minimum tax on ... the deviation from the standard rate, we use the measure proposed by Andrei, Stancu and Pele ...
This study aims at validating the points of view of the Romanian finance university professors re... more This study aims at validating the points of view of the Romanian finance university professors regarding capital budgeting. The study is original and important in the same time, taking into consideration that their opinions, due to their vocation of educators, may represent the starting point for debates on the most suitable methods and techniques used in the practice of this field. It can be noticed that the dominant points of view converge to the recommendations of the main reference works in the domain of corporate finance. Hence, indicators like net present value, internal rate of return or profitability index are the most preferred. Among the techniques of risk quantification, the sensitivity analysis is considered as the most suitable, followed by the Monte Carlo method and the scenarios technique. As for the discount rate used for the investment projects analysis, the most numerous respondents recommend the weighted average cost of capital. Secondly, this study brings some insights on the profile of the university professors with competences in the field of capital budgeting. We can derive the conclusion that their education level is high, most of them having accomplished their university studies with a curricula adequate to the principles of a market economy. More than half of the respondents also have investments consultancy activities. Motto: "The ideologies based on false premises may become true and there are moments when the usual rules do not apply, and the abnormal becomes normal". George Soros
This study aims to disclose the methods and instruments used by the credit analysts in the most i... more This study aims to disclose the methods and instruments used by the credit analysts in the most important Romanian banks regarding capital budgeting. It can be noticed that the dominant standpoint converges to the recommendations of the main reference works in corporate finance. Hence, indicators like profitability index, net present value or internal rate of return are preferred by the most part of the credit analysts. Among the techniques of risk quantification, the sensitivity analysis is the most commonly used method by Romanian creditors. About the discount rate used in investment valuation, the main part of the respondents recommends the rate of return for similar projects in the sector. Motto: Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. (Lao Tzu)
RePEc: Research Papers in Economics, Aug 1, 2021
This paper focuses on models proposed in financial literature for establishing optimum time for e... more This paper focuses on models proposed in financial literature for establishing optimum time for entry and exit as strategic decisions for a firm, decisions that can be modeled through real options. Uncertainty refers to price for the product obtained from operating the project, and equally the investment cost. Using as an example a project analyzed by a company from furniture industry, we demonstrate that, under uncertainty, entry in the market takes place at a price level that is much higher than total cost, while decision to exit from the market is adopted when price level is much lower than the variable cost. We also analyze effects of this phenomenon, named hysteresis, when model parameters change.
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Papers by Nicoleta Vintila