The Stability of Broad Money Demand (M3) in South

The paper examines the relationship of South African broad money (M3) and a set of variables such as income, opportunity cost of holding money (domestic and foreign interest rates), inflation, and stock market prices using a shopping-time technology model from [1] and [49]. The empirical evidence employs an ARDL model to test for a stable long-run relationship between M3 and its determinants. With cointegration established, we estimate an error-correction model that reveals how short-run dynamics adjust towards a long-run equilibrium.

5/4/2020 2:39:57 PM +00:00

The sensitivity of Non-U.S. bank stock returns to changes of U.S. monetary policy

This paper investigates the international spillover effect of U.S. monetary policy changes on non-U.S. bank stock returns. Our dataset covers 442 non-U.S. banks in 57 countries for 1994-2007. We find that there exists an inverse relationship between non-U.S. bank stock returns and unexpected changes in the U.S. federal funds rate target. Our study provides strong evidence that the sensitivity of non-U.S. bank stock returns varies with regard to the nature and context of monetary policy changes, bank-level characteristics, and country-level institutional factors. Our findings have important implications on international financial stability, trading and hedging strategies, and banking management and regulation.

5/4/2020 2:39:51 PM +00:00

The role of premium calculation in the stability of private insurance companies: The case of Germany

One of the most crucial components of a country’s social security system is health insurance. Positive developments of health sector enable the opportunity to receive high quality service. In order to offer these services it is essential to deal with the premium calculation subject seriously. Moreover, the accuracy of these calculations provides the longevity of insurance companies and the lack of gap between their incomes and expenses. In this article insurance premium calculation in the private health sector in the Germany case was investigated. After giving detailed information on the health sector, the relation between the net premium and the principle of equality had been examined and the net premium was obtained. Then by examining the constituting elements, the gross premium was calculated. Consequently to control the risks that may occur in the following years, the importance of reserve accumulation for old ages was emphasized. By premium calculations, the necessity of covering the probable benefits with the total premium and reserves was observed.

5/4/2020 2:39:45 PM +00:00

The relative financial efficiency of Brazilian firms and American firms in the manufacturing sector: A ratio analysis

This paper evaluates the relative financial efficiency of twenty three matched-pairs of U.S. firms and Brazilian (BR) firms. In this study, efficiency is measured in terms of profitability, debt management, asset management, and liquidity management. Paired comparison is employed and ten hypotheses are tested on the basis of the defined ratios. Because matched pairs are used, an appropriate test is the Wilcoxon matched-pairs signed-ranked test. All the data for the study were compiled by the author from Mergent on Line. These include the most recent five-year time-series data that were available in 2013 for all the ten ratios that were tested.

5/4/2020 2:39:39 PM +00:00

The regional performances of agricultural bank of China applying gee method multiple linear regression

This paper aims to assess the performance of China’s banks by their geographical distribution of loans and deposits, with the application of Generalized Estimating Equation (GEE) method’s multiple linear regression. We chose one of the four largest banks, Agriculture Bank of China, with data from 1990 to 2008 as the sample bank. We identified that branches’ performances in the Yangtze River Delta ranked first and were followed by the Pearl River Delta. Different than that of the previous literature, the results further indicate that branches in economically well-developed regions were not necessarily better-performed. The empirical evidence also implies that distance impacts performances between branches and their headquarters.

5/4/2020 2:39:33 PM +00:00

The ratio model and its application: A revisit

In this paper, the ratio model, a simple currency valuation model proposed by Zhang (2012, International Research Journal of Finance and Economics, issue 97, pp. 55–59), is revisited. We use both the ratio and purchasing power parity (PPP) models to value the bilateral real exchange rates (RERs) of five Asian industrial countries and areas, namely, Japan, Korea, Taiwan, Hong Kong, and Singapore, against the United States. In the early 1950s to 2009, the RER misalignments of four new industrial countries and areas from the ratio model converged, but those from the PPP model did not, implying the competitiveness of the ratio model against the PPP model both in currency valuation and as an RER anchor.

5/4/2020 2:39:27 PM +00:00

The influence of reinsurance on insurance companies' profitability: Evidence from the Austrian, Croatian and Romanian insurance industry

This paper reveals the influence of insurance premiums ceded to reinsurance on insurance companies’ profitability in the 2007-2011 period of the insurance industry in Austria, Croatia and Romania revealing the relationship between the cedants and reinsurers. The analysis conducted using panel analysis shows different results depending on the insurance market being analyzed. Specifically, results of the analysis referring to insurance market in Croatia reveal that insurance companies with higher share of premiums ceded to reinsurance have lower level of profitability measured by ROA indicator.

5/4/2020 2:39:20 PM +00:00

The forward rate biasedness in developing and developed country currencies

In this study, the similar tests are realized on the data set consisting of the daily forward quotations of both of the group of currencies in a broader time period beginning in 2000 ending in November 2012. The results of the study are not supportive for both of the previous studies and revealed the fact that there exist no considerable differences between the biasedness of the forward rates of the currencies of the developing and developed countries.

5/4/2020 2:39:14 PM +00:00

The effects of sovereign ratings changes on Turkey’s stock market

This study examined the impacts of upgrades and downgrades by the three big major rating agencies (Standard and Poor’s, Moody’s and Fitch) on Turkey’s stock market. §The Istanbul Stock Exchange National 100 Index (XU100) was used as stock market indicators. The data set covers the period 1995 and 2011 and quarterly data was used. Control variables were growth rate of GDP per capita and real interest rates. The findings show that rating changes significantly affect the XU100 and vice-versa. GDP growth per capita affects XU100 positively and real interest rates negatively.

5/4/2020 2:39:08 PM +00:00

The economic growth and policy implications in Vietnam

After a long period of high and stable economic growth, the Vietnam’s economy is experiencing difficult time that the inflation is considered as the main reason for. To solve the situation, the Vietnam’s government has continuously introduced series of aggregate demand management policies relating restraining the inflation or boosting the economic growth. This paper uses the quantitative methodology to analyze the relationship between the growth and the inflation in Vietnam and the input - output system by W. Leontief to analyze the periodical structure of the economy. Hence it would be possible to identify the cause for the economic growth and raise some implications to the policymakers.

5/4/2020 2:38:56 PM +00:00

The determinants of Sukuk market development: does macroeconomic factors influence the construction of certain structure of Sukuk?

The present paper examined the reasons Macroeconomic Factors Influence the Construction of Certain Structure of Sukuk. The scope of our study covers the most Sukuk issuers’ countries namely: Saudi Arabia, Kuwait, UAE, Bahrain, Qatar, Indonesia, Malaysia, Brunei, Pakistan, and Gambia observed over the period 2003-2012. The study has analyzed the influence of (i) Economic and Macroeconomic factors, (ii) Global financial Crisis (iii) Financial System (iv) Institutional Environment (v) Legal Origin and (vi) Religion and Society Factors on the Development of the Sukuk Market. The study showed that Macroeconomic factors such GDP per capita; economic size, trade openness, and percentage of Muslims have a positive influence of the growing of the Sukuk market. Financial crisis has a significant negative effect on the development of the Sukuk market since the amount of Sukuk issued in those years has declined considerably.

5/4/2020 2:38:49 PM +00:00

The correlation and hedging effects between commodity and stock markets

This study uses the Rogers International Commodity Index (RICI) for composite commodities and RICI-Agriculture (RICA), RICI-Energy (RICIE), and RICI-Metals (RICIM) indices to examine the relationship between various commodity and stock markets. The empirical results indicated that stable long-term relationships exist between some commodity and stock markets, and that commodity indices generally lead stock market indices. Thus, in a number of countries/regions, investors can predict fluctuations in stock prices using variations in commodity indices.

5/4/2020 2:38:42 PM +00:00

The behavior of Turkish lira forward and spot foreign exchange rates

The purpose of this study is twofold; firstly, the behavior of Turkish lira (TRL) forward rates against US Dollar (USD) and Euro will be evaluated; whether the interest rate parity holds and the market participants quote the forward foreign exchange rates according to the interest rate differentials. It is also analyzed whether the forward foreign exchange rate coincides with the spot exchange rate at the relevant maturity. Secondly, the unbiased forward rate hypothesis (UFH) is tested by the use of regression method. The finding is that for TRL against USD and Euro, the forward rate is a biased predictor of the future spot rate. Going the same way with the previous researchers, the source of the bias is examined. The explanations set by early researchers for the finding of bias in the forward markets for different currencies have been generally based on two different sets of explanations.

5/4/2020 2:38:36 PM +00:00

Redistributive impacts of public resources for basic education in cameroon

This article shows that the allocation of rare resources by collective decision-making procedures can cause inequity and inefficiency. By applying the model of Analysis benefit incidence in basic education, there is evidence that the allocation of public resources for basic education in Cameroon is a source of reproduction of inequalities and generates a social selectivity in the sense that the volume of public investment is not correlated with different levels of education on the one hand, enrolment and poverty rates by region, on the other hand. Given the fact that school is the main vector of social reproduction and the leverage by which we can hope to redistribute opportunities and chances equally, this paper suggests that redistributive policies should henceforth be based on the enrolment in each region and regional poverty profiles.

5/4/2020 2:38:30 PM +00:00

Puzzles in the relationship between financial development and economic growth

This paper provides evidence in support of two important puzzles regarding the relationship of financial development and economic growth documented in a number of recent papers. The first puzzle relates to the finding that banks have a positive effect upon economic growth, when data are averaged, but a negative one when the highest annual frequency is used. The second is about the positive effect of stock markets upon economic growth irrespective of the averaging.

5/4/2020 2:38:23 PM +00:00

On the efficiency of the corporate bond market and the rating agencies: Evidence from the israeli bond market

In this research I have used bonds data from the Israeli financial market, in order to establish to what extent the Israeli credit market is efficiently rated by both existing rating agencies (Maalot and Midrug). Results show that the bond market does refer to ratings as a measurement of risk, however, further investigating have proven that it was not the entire risk involved in the investment process. The results of this research suggests that a better rating process should be adopted perhaps by adding a third investor-paid rating agency that would separate the unhealthy linkage between the issuer of the bond and the rating agency, enabling the rating process to be more objective and trustfully by investors to capture all related risks.

5/4/2020 2:38:17 PM +00:00

Mean-reverting-ebit-based stock option evaluation: Theory and practice

This paper examines the derivation of a capital-structure EBIT-based call option expression with the El Ibrami and Naciri [2012] equity value as the underlying asset. The model’s PDE and ODE are similar to Black-Scholes but have widely different and non-constant coefficients. An empirical analysis of the new model is conducted to measure its performance, using the last close price of the evaluated stock options and the Black-Scholes values as benchmarks. The results show that the author’s model is robust, whereas the Black-Scholes model overestimates the stock options.

5/4/2020 2:38:11 PM +00:00

Management practices of the banking industry in the kingdom of Bahrain

This study aims to determine the management practices of the banking Industry in the Kingdom of Bahrain and their level of effectiveness. The researcher used the qualitative and quantitative type of research in the analysis of data. The survey questionnaire was the main research instrument used by the researcher in generating the primary data of the present study. The findings further revealed that there is a statistically significant relationship between the status and level of effectiveness along investment management, it accept the null hypothesis (there is relationship) and reject the alternative hypothesis.

5/4/2020 2:38:05 PM +00:00

Liquidity risk and incentive compensation in open-ended funds

In this paper the principal-agent models between the investor and the manager of the open-ended fund are made from the new view about the liquidity risk management, and the optimal contracts and optimal policies are obtained in closed form by solving these modes. By the analysis of the optimal contract, we find that the fixed compensation of manager is the positive relationship with redemption ratio of investors and the inverse relationship with the growth ratio of total assets; the liquidation of risk assets is the positive relationship with redemption ratio and the inverse relationship with the growth ratio of total assets; the origin risk investing ratio is the positive relationship with redemption and the inverse relationship with the cumulative net growth rate.

5/4/2020 2:37:59 PM +00:00