Editorial(Eng)

Thought Official Editorial of Novagestion Financial Advisors

A Synthetic Strategic Model for a New Chile 2022-2030

English

A Synthetic Strategic Model for a New Chile 2022-2030

A contribution from Novagestión to the upcoming political discussions and definitions. Sometimes raising the general strategic definitions helps to clean the analysis and properly plan the steps to follow to achieve the proposed objective.

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It´s time to change...

English

It´s time to change

Below we make available to the business community an article written by our General Manager Mr. Nelson Escobar A., on the occasion of the discussion for the withdrawal of 10% of the Pension Funds from Chilean contributors, which occurred during the month of July of 2020.

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Premium for Implicit Risk. A Glance to Chilean Market

English

Premium for Implicit Risk. A Glance to Chilean Market

Next, we provide the business community with a methodology for calculating the Implicit Risk Premium of the Chilean Market, based on the behavior of the IPSA stock index. Novagestión Asesorias Financieras will estimate this value with a periodicity of six months. This concept is key in the estimation of the capital cost rate, which is usually used in Corporate Finance.

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SMEs, financing, macroeconomic efficiency and a peaceful dream.

English

SMEs, financing, macroeconomic efficiency and a peaceful dream.

Who has not listened to some SME entrepreneur, and others who are not so SMEs, who do not ask for credits or other forms of external financing, to finance their business needs because they prefer to sleep peacefully?….?


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Conflict of Interests between Shareholders and Bondholders. An applicable situation to the Chilean market of AFP?

English

Nelson Escobar

Modern finance not stops surprising us. What sensed until recently, development and financial discipline are confirming. In particular the problem of Agency takes our attention this time.
Many dimensions of this conflict of interest you have seen addressed in the recent literature. One of them we will analyze through this paper
The option pricing theory allows us to tackle decisions of capital structure from different points of view. We will focus on the conflict of interest produced between shareholders and bondholders.
Let us agree, however, that both shareholders and bondholders perform different functions and they have to maximize their objectives. This is the first edge of the conflict. Even though the shareholders are willing to assume more risky projects than the bondholders and eventually distribute large dividends that the bondholders would like to.
The value of equity can be modeled as a “CALL” option (ceteris-paribus) over the price of a company (“The Promise and Peril Of Real Options, A. Damodaran, Stern School of Business, NYU).
When increasing the variance (σ2) over the value of the company, it produces an increasing in the value of equity. Read more

Nelson Escobar Arguedas is Partner in Novagestion Financial Advisory. Nelson is a Civil Engineer from University of Chile and holds a Master in Business Administration and a Master in Financial Management. He has more than 23 years of professional experience developing strategic, financial and operational consulting.

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