Factors that influence financial leverage of Canadian firms

This study contributes to the literature on the factors that influence financial leverage of the firm. The findings may be useful for financial managers, investors, and financial management consultants.

5/4/2020 8:38:14 PM +00:00

Factors that influence corporate liquidity holdings in Canada

This study contributes to the literature on the factors that affect corporate liquidity holdings. The findings may be useful for financial managers, investors, and financial management consultants.

5/4/2020 8:38:08 PM +00:00

Factors that affect potential growth of Canadian firms

This study contributes to the literature on the factors that affect potential growth of the firm. The findings may be useful for financial managers, investors, and financial management consultants.

5/4/2020 8:38:02 PM +00:00

Empirical testing on uncovered interest rate parity in Malaysia

Uncovered interest rate parity (UIRP) provides a crucial theoretical concept for many models in international finance and international monetary economics. Using quarterly data span from 1998Q1 to 2010Q3, we run conventional regressions (OLS) and simple GARCH analysis on UIRP for the case of Malaysia-UK, Malaysia-Japan and Malaysia-Singapore. The empirical results show that these relationships do not support the UIRP in all cases. We, therefore, cannot reject the validity of UIRP violation such as in widely documented literature reviews.

5/4/2020 8:37:56 PM +00:00

Efficiency in islamic banking during a financial crisis - An empirical analysis of forty-seven banks

The present paper measured the efficiency of Islamic banks during economic troubles of 2006-2009 to address the question if Islamic banks were efficient and stable. This paper addresses this question by measuring efficiency through employing the on-parametric technique, Data Envelopment Analysis (DEA) and t test was used to test the hypotheses.

5/4/2020 8:37:49 PM +00:00

Effective bank corporate governance: Observations from the market crash and recommendations for policy

This paper considers the extent to which inadequate corporate governance was a contributory factor to the financial market crash. It examines the experience of selected failed banks, with emphasis on the corporate governance structure in place at each firm, and the background and expertise of the Board and Directors, and draws conclusions for future policy.

5/4/2020 8:37:43 PM +00:00

Economic performance in bank-based and market-based financial systems: Do non-financial institutions matter

Based on a sample of 87 countries, this paper shows that non-financial institutions, specifically rule of law, do matter for the relative merits of bank-based and market-based financial systems. Market-based systems work better in low rule of law countries, while bank-based systems are more efficient in high-rule of law countries. These results are consistent with the premise that market-based systems’ superiority in solving the incomplete information problem dominates over bank-based systems’ superiority in solving the moral hazard and contract enforcement problems, which are expected to be more prevalent in low rule of law countries.

5/4/2020 8:37:37 PM +00:00

Does the investor sentiment affect the stock returns in Taiwan’s stock market under different market states

Climatic change and epidemic disease could influence the investor sentiment. Under such circumstances, how to invest the stock market in different stock market states (bull, bear or neutral) is an important topic for investors. To capture the investor sentiment more precisely, we use principal component analysis to analyze some investor sentiment indicators, and then form a composite index of investor sentiment. These investor sentiment indicators include the turnover rate, the percent change in margin borrowing, the percent change in short interest, net buy/sell, the turnover ratio of major institutional investors, psychological line, and advance decline ratio.

5/4/2020 8:37:31 PM +00:00

Does subprime crisis affect Chinese stock market returns

This paper aims at testing the influence of Subprime Crisis on Chinese stock market returns. By means of newly proposed time series spatial analysis methodology, we investigate the dominance behavior of daily returns on both Shanghai Stock Exchange Composite Index and Shenzhen Stock Exchange Component Index between before and after the crisis. Little spatial dominance could be found, even considering the appreciation of the RMB, no matter in short-term or long run investment. For rationale investors, there are no significant risk and preference changes about domestic stock market in the post Subprime Crisis era.

5/4/2020 8:37:25 PM +00:00

Does political connection in China influence urban land supply

This paper examines how the secretary of the prefecture-level municipal party committee affects land supply in Chinese cities. We found that the traditional urban economics framework also applies to China. Specifically, population and gross domestic product (GDP) are highly correlated with land supply. On this basis, we found that the secretary of the municipal party committee, who has worked at the provincial government level, significantly affects the land supply at the municipal level.

5/4/2020 8:37:16 PM +00:00

Does government linked companies (GLCs) perform better than non-GLCS? Evidence from Malaysian listed companies

The purpose of this paper is to examine the impact of an alternative ownership/control structure of corporate governance on firm performance. Specifically, we investigated the governance system of government linked companied (GLCs) in Malaysia. In this paper, we examine governance mechanism and firm performance of Malaysian GLCs and non-GLCs over a 11 year period from 1995 to 2005.

5/4/2020 8:37:10 PM +00:00

Do dividend policies signal corporate operating characteristics

Dividend policy is one of controversial financial issues. There are various theories about dividend but in this study, the focus is on empirical test of signaling theory. This theory says that the payment of dividends provides information for investors and analysts. The aim of this study is preparing the evidence on dividend signaling about corporate operating characteristics (return, performance and earning). Therefore, linear regression models were fitted. Results showed that significantly positive correlation exists between dividend and return. Also, there was a similar relationship between dividend and earning. It means that dividend has information content about return and earning and so, signaling theory was approved about them.

5/4/2020 8:37:04 PM +00:00

Determining the probability of default of agricultural loans in a French bank

Recently, financial institutions have developed improved internal risk rating systems and emphasized the probability of default and loss given default. The default characteristics are studied for 756 loans from a French bank: CIC- Banque SNVB. A binomial logit regression is used to estimate several models of the probability of default of agribusiness loans based on information available at loan origination. The results show that leverage, profitability and liquidity at loan origination are statistically significant indicators of the probability of default. As leverage increases, profitability decreases, or liquidity decreases, the probability of default increases.

5/4/2020 8:36:58 PM +00:00

Determinants of capital structure for listed construction companies in Malaysia

Some studies have determined the impact of financial factors on the failure of firms; such as bad financial management and lack of capital which are the main determinants of failure. The construction industry is generally also facing these problems to some extent. Where the Malaysian scene is concerned, the failure rate of construction companies is quite high. This study examines the debt and equity structure for the construction companies listed in the Bursa Malaysia market during a seven-year period from 2001 to 2007.

5/4/2020 8:36:52 PM +00:00

Determinants of bank profitability with size as moderating variable

This paper has objective to explore determinant of bank profitability with size as moderating variable. Internal ratio and macroeconomics variable are used to determine bank profitability. Return on Asset and Return on Equity are variable of bank profitability. Model Panel Data is used to determine bank profitability in Indonesia for period of 2007 to 2018. This research found that Net Interest Margin, Ratio of Operational Expenses to Operational Profit, Capital Adequacy Ratio and Loan to Deposits Ratio significantly affected profitability bank of return of Equity.

5/4/2020 8:36:46 PM +00:00

Default forecasting considering correlation between business and credit cycles

Bank’s major approach in her internal rating system is credit scoring valuation which focused on corporates’ idiosyncratic risks and based on their financial indexes. Hence, an influence on corporates’ credit risks by business variation is not considered in her system. We model the effect on corporates’ credits by macroeconomic variables and analyze it. Firstly we model a corporate’s credit variable by the credit cycle index and her idiosyncratic risk factor, and consider the correlation between the business and credit cycles.

5/4/2020 8:36:40 PM +00:00

Debt and other determinants of fiscal policy use

Using a measure of variation in real government expenditure for the period 1998 through 2008, this paper employs cross country regression analysis to look at the effect of public debt, both singularly and when adjusting for control variables, on fiscal policy usage. The empirical findings are consistent with the hypothesis that higher public debt tends to lessen the use of fiscal policy.

5/4/2020 8:36:34 PM +00:00

Day-of-the-week effects in the Indian spot and futures markets

The paper studies the efficiency of the Indian equity and futures markets by applying statistical techniques to returns and volatility during trading and nontrading hours. Returns have been decomposed into trading and non-trading period returns by taking close to open, open to close and close to close prices. We find the presence of a weekend effect during the non-trading period in the spot index market, while, there is no day of the week effect in the index futures market. Also, the volatility in both the markets is higher during the trading period than during the non-trading period.

5/4/2020 8:36:28 PM +00:00

Currency regimes, volatility risks, and carry trades: The option value of government currency intervention in emerging markets

This study investigates the relationship between cross-sectional carry trade returns and global foreign exchange volatility risk. During periods of high volatility innovations, the average carry trade returns on emerging markets are higher than that of all countries or developed economies. Furthermore, the average returns on managed-float and fixed-rate carry trades are significantly higher than that of freefloat carry trade. Government currency intervention in emerging markets can explain these differences.

5/4/2020 8:36:21 PM +00:00

Credit risk based on firm conduct-performance and bank lending decisions: A capped call approach

This paper models loan rate-setting behavior, taking into account the product pricing and performance of the borrowing firm, and also calculates the bank’s loan-risk sensitive equity values. The lending function creates the need to model bank equity as a capped call option, which captures the credit risk directly related to management of a firm’s operations.

5/4/2020 8:36:16 PM +00:00