MAKE MOST OF THE KNOWLEDGE NETWORK, JOIN ACADEMIC RESEARCH FOUNDATION

Pricing is a fundamental topic for a nonlife insurance company. It includes several underwriting activities to set actuarial models. In the past, it was a fundamental part of risk theory and nonlife insurance mathematic and nowadays results in a vast actuarial research field. Since the second half of twentieth century, many papers have been published in actuarial journals. This work originates from the experience of introductory university lectures of the author. After an historical recognition, a proposal is made of a simplified approach to monitor consistency and quality of the personalized premiums over time.

Keywords: Pricing; Risks classification; Tariff; Stochastic models; Actuaries.

JEL Classification Numbers: C13, G22, M40.

In this paper, we develop a model of discrimination by effort between women and men in credit markets. The specificity of our model compared to the current literature consists in the level of effort effected by the agents who benefited of a microcredit is endogenous. We assume that borrowers have financial constraints and that they want to obtain funds to carry out their projects whose success depends on costly and unobservable efforts. Assuming that women exert a higher level of effort than men, we show that when information is perfect, all projects are financed and the collateral is completely eliminated. Women benefit of a lower interest rate than men and at the same time receives a loan of the same amount as men. In a situation of imperfect information, when the level of the project manager’s effort is private information, we show that in a competitive credit market where risks are not mixed, the riskier borrower obtains the same contract as in a perfect situation. When the state can guarantee highrisk borrowers (low efforts), their welfare improves. On the other hand, when government can provide guarantees for lowrisk borrowers (high efforts), it reduces collective welfare.

Keywords: Microcredit; Gender; Discrimination; Incentive contracts; Information asymmetry; Loan guarantee.

JEL: D41 ; G21

The concept of Corporate Governance (CG) has become a contemporary focus in both accounting and finance arenas .This plays a vital role, especially in the process of assuring financial reporting quality (FRQ). The purpose of this paper is to investigate the relationship between selected CG characteristics and the level of FRQ in Sri Lanka. The study was carried out using secondary data obtained through published annual reports from 209 companies listed in the Colombo Stock Exchange (CSE) during 2017 to 2020 including 836 firm year observations. Six selected CG characteristics (Board Size, Board Independence, CEO Duality, Audit Committee Size, Audit Committee Independence, and Audit Committee Accounting Expertise) and the level of FRQ has been evaluated by

absolute value of discretionary accruals (ADA) using Panel linear regression analysis. It was found that, a significant positive relationship between the audit committee accounting expertise and FRQ, while a significant negative relationship was found between Board Size and FRQ. However the other remaining CG characteristics were not significantly influenced on the level of FRQ. Overall, this analysis highlights the importance of having a comparatively smaller board size and composition the members in the audit committee with financial and accounting background to enhance FRQ and transparency. The findings of this study expect to have a significant policy implication for policy makers and regulators in terms of formulating strategies and policies on CG best practices in Sri Lanka. Similarly, the entities should promote smaller board size and recruiting, especially majority of independent nonexecutive directors with sufficient accounting skills and financial experience with the aim of curtailing the adverse earnings management practices to improve FRQ.

Keywords: Corporate Governance, Absolute Value of Discretionary Accruals, Financial Reporting Quality, Colombo Stock Exchange Sri Lanka

JEL Classification: G34, G38

We present a study on the estimation and Monte Carlo simulation of continuous distributions, in particular with infinite support, with Bernstein polynomials extending previous approaches in this direction.

Keywords: Bernstein polynomials, Monte Carlo simulation, risk management

AMS Classification: 41A10, 11K45, 62G05

This earning function is useful as an explanation of historical developments of wage differentials. This study aimed to find the relationship between the income and education and experience. In the most widely used version of Mincer’s “human capital earnings function”, log earnings are modelled as the sum of a linear function of years of education and a quadratic function of years of potential experience. According to the model, there is positive and significant relationship between the years of education and income. Hence, if the years of education increases by the year income will increase by the 0.114%. Even though, years of experience related with the income significantly and negatively. Therefore, this study suggests that if the year of education increases, that will lead to higher earning of the individual and to improve the national income of the country.

Keywords: Education, Experience, Income, Sex