AbstractThis paper investigates whether the pricing deviation of inactive exchange-traded funds (ETFs) differs from that of active ETFs and can predict future ETF returns better and longer. The results show that, compared to active ETFs, inactive ETFs trade at a substantial, more volatile, mostly negative and more skewed-to-the-right pricing deviation. Inactive ETFs? pricing deviation relates significantly and negatively to longer-day future ETF returns, indicating that the deviation may predict ETF returns better and longer. However, if an inactive ETF has corresponding futures for its underlying index, its pricing deviation may shrink and pricing efficiency may increase.
Keywords: Exchange-traded fund, Pricing deviation, ETF return, ETF pricing efficiency, Creation-redemption process, Arbitrage strategy
AbstractThis research was carried out on the premise that as CSR was becoming popular among corporations in Malaysia, it was important to gauge consumers? beliefs and perspectives about CSR and the CSR issues that mattered to them most when purchasing a product.
Keywords: Corporate social responsibility, Perspectives, CSR Activities, CSR Issues, Consumers, Malaysia
AbstractThis paper generalizes the global economic growth model with any number of countries and each country with any number of regions recently proposed by Zhang (2016). Zhang?s model extends Uzawa?s two-sector growth model to a global economy for examining dynamic interactions between international trade, national and global growth, interregional migration, wealth accumulation and regional amenities. This study generalizes Zhang?s model by allowing all the time-independent parameters to be time-dependent. The generalization makes it possible to examine effects of any types of exogenous time-dependent shocks on the dynamic system cross regions and countries over time. We simulate the model with three countries and each country with two regions. We demonstrate the existence of equilibrium point and confirm (local) stability of the equilibrium point when all the parameters are time-independent. We conduct comparative dynamic analysis with regard to exogenous periodic shocks in the total factor productivity of regions? capital good sectors, the total factor productivities of the service sectors, the propensity to save, the amenity parameters, and the propensity to consume housing. Our comparative analysis shows how business cycles are generated by periodic exogenous shocks.
Keywords: Business cycles, Periodic shocks, Propensity to save, Propensity to consume housing, Spatial agglomeration, Regional
AbstractThe study uses a dichotomous contingent valuation method to elicit the willingness to pay for crop insurance among cereal farmers in the Eastern region of Ghana. A sequential decision was considered. An initial decision regarding the willingness to purchase and a subsequent decision on the willingness to pay amount conditional on a positive initial decision was determined. The study employed descriptive statistical techniques to analyse primary data obtained from 208 sampled farmers in the region. Out of the sampled farmers, 52.9% expressed interest in crop insurance. The Probit model was used to estimate the mean willingness to pay (WTP) for crop insurance. The results revealed that farmers were willing to pay approximately GHc 66.2 per cropping season. A Heckman two stage approach was employed to estimate the factors influencing the WTP for crop insurance. The empirical results of the Probit model revealed that marital status, education, crop type, access to extension service, borrowing, savings and awareness of crop insurance influenced farmers? willingness to purchase insurance. Farmers WTP amount estimated with the Ordinary Least Square regression model was shown to be influenced by variables such as marital status, other occupation, access to credit, borrowing and savings. The study recommends that with adequate and detailed information and affordable premiums, farmers will be willing to purchase insurance. Appropriate distribution channels are also recommended to incite demand for crop insurance.
Keywords: Crop insurance, Contingent valuation, Ghana, Heckman two stage analysis, Smallholder farmers, Willingness to pay
AbstractThis study investigated the effects of salary structure, performance requirements, and type of business on the performance of housing agents. The participants in the study survey consisted of the employees of real estate firms in Kaohsiung, Taiwan. Restricted and unrestricted regression models were used to compare the goodness-of-fit of the regression models. A total of 1500 questionnaires were distributed to the branches of the real estate firms, and 734 questionnaires were returned. 284 of the returned questionnaires were ineffective or had missing items. An effective sample of 450 questionnaires was thus collected for an effective recovery rate of 30%. The empirical results indicated that the type of business did not have a significant effect on individual performance with respect to base pay, individual bonuses, group bonuses, and performance requirements. In contrast, base pay, high individual bonuses, and group bonuses had a significant positive effect on individual performance. The empirical results in this study indicated that the effects of base pay, individual bonuses, and group bonuses on individual performance cannot be ignored when investigating the effect of the type business on individual performance.
Keywords: Real estate industry, Salary structure, Performance requirements, Type of business, Individual performance, Housing brokerage employees
AbstractThis study determined that the sustainable value of an enterprise involves not only financial performance but also nonfinancial performance. Therefore, intellectual capital (IC) and corporate social responsibility (CSR) were applied to determine value drivers for creating corporate stakeholder value and sustainable competitive advantages. No overall value drivers can be applied to the same enterprise; therefore, we suggest that top managers customize corporate value drivers and leverage priority resources to maximize firm profit. This study reviewed literature regarding IC and CSR to integrate overall value drivers, and applied statistical methods to demonstrate how corporate management teams could apply our methods to identify leverage drivers and create maximum value for stakeholders. We developed an enterprise questionnaire based on the concepts of IC and CSR to conduct data analysis, and used an importance?performance analysis map and regression to rank priorities for value drivers. We implemented a case study of the Taiwan High Speed Rail Corporation (THSRC). The statistical results reveal three concerns. First, there are gaps in our 10-item questions expect for environmental issues regarding noise and vibration. Second, if the THSRC were to improve salaries and welfare, corporate culture and know-how could maximize corporate sustainable value by using charts of the impact-performance of value drivers. Third, regression analysis demonstrated that the degree of importance of customer loyalty has a considerable impact on the degree of importance of financial performance. Finally, the authors suggest that future studies focus on the interdependency of factors to develop an overall index to measure sustainable stakeholder value.
Keywords: Resource-based view theory, Intellectual capital, Corporate social responsibility, Competitive advantage, Maximizing firm profit, Sustainable value
AbstractThis study refines both theoretical and pragmatic basis in estimating the size of shadow economy in Sri Lanka. Theoretical investigation had noticed a possibility of use the rate of underemployment as a determinant to measure the size of shadow economy. Further it reveals that the relative magnitudes of job finding rate (f) and devaluation in job separation rate (f*) can change the direction of relationship between the rate of underemployment and the size of shadow economy. Empirical investigation with two fitted MIMIC models; MIMIC 5-1-2a and MIMIC 7-1-2 and Benchmark calculations derive a series of average values for Sri Lankan shadow economy for the period 1990-2015. Calculations for both models tend to decrease from 40-50 percent of GDP. Further comparisons express a strong positive relationship between shadow economy with both underemployment and self-employment.
Keywords: Shadow economy, Unemployment, Underemployment, Structural relationship, MIMIC models, Benchmark calculations
AbstractThis study examines the impact of bank income source diversification on risk-return trade off, of commercial banks in an emerging economy. Considering eleven commercial banks for the period from 2002 to 2015, the paper examines non-interest income and its components against the risk-adjusted returns to explore the relationships among them. Results confirmed that non-interest income is riskier than interest income, but offers potential diversification benefits to shareholders. This is followed by the negative correlation between the interest income and non-interest income. Moreover, risk adjusted return on equity is positively affected by higher non-interest income activities, indicating that a marginal increase in non-interest income improves the shareholders? risk return trade off. However, interest income, which has a significant negative relationship with risk-adjusted return on equity indicate that increase in interest income has been associated with worsening the risk return tradeoff for shareholders. Further, comparative analysis of non-interest income and risk-adjusted returns shows that foreign exchange income and other income categories have major influence on the shareholders risk and return. However, fee based income has no explanatory power over risk adjusted return. The findings of the study have important policy implications on the regulators in the implementation of capital adequacy requirements which adjust with the bank?s risk exposure.
Keywords: Commercial Banks, Non-Interest Income, Interest Income, Diversification, Risk-return trade-Off, Sri Lanka
AbstractThis study analyzes the impact of globalization on unemployment in Pakistan, using annual data for the period 1980 to 2013. Using the ARDL econometric framework, we find that the economic, political and social aspects of globalisation differ in their effects. The data suggest that political and social integration, whilst beneficial in the short run, increase the long run expected unemployment rate. Economic integration appears to be only marginally beneficial in the short run; it is significantly beneficial in the long run but cointegration with the other aspects of globalisation means that it cannot fully counteract their undesirable long-run effect.
Keywords: Globalization, KOF indices, Unemployment, ARDL, Bounds testing, Pakistan
AbstractIn this paper, we have endeavored to analyze a sector-wise export performance of Pakistan using Revealed Comparative Advantage with the global market. Data for the period 2003-2015, Harmonized System (HS) 1988/92 developed by the World Customs Organization (WCO) are employed in the analysis. We have observed that Pakistan foreign trade concentrated limited products and markets for many years and there are no serious attempts to diversify its export share to the world. Empirical results show that Pakistan is not a major trading player in the international trade. However, it is a major trading player in some of its export items such as, textile and clothing sector, Vegetable, and hides and skins sector which have prominent revealed comparative advantage. Pakistan should diversify its exports and improve its trade diplomacy.
Keywords: Revealed comparative advantage, Determinants of exports, Pakistan exports competitiveness, Pakistan foreign trade
AbstractThis study aims to investigate the persistence of timing and stock picking ability of ?winner fund managers? instead of winner funds. The sample of this study is the previous and next equity funds which the same fund managers manage in Taiwan. we measure the ranking of timing and stock picking ability of fund managers for the period they manage the specific fund. The result shows that for the whole fund managers, the successive two funds they manage are performance persistent. Moreover, the stock picking ability of the two funds they manage is persistent no matter the two funds belonging to the same fund company or not. Regarding the winner fund manager, we find no persistence of return, timing ability and stock picking ability. No matter the winner fund managers change the jobs to the other fund companies or not, the next funds the winner fund managers manage are not timing and stock picking ability persistent. The result of logistic regression demonstrates that the probability of becoming timing or stock picking winners of the next funds which the timing or stock picking winner managers manage is not significantly higher than other funds. The result indicates that investors do not necessarily follow the timing and stock picking winner fund managers. The performance of the next funds which the winner fund managers manage may reverse especially for the successive two funds belonging to the same fund company. Little literature investigates the issue regarding the fund timing and stock picking performance from the viewpoint of ?fund managers?. The results of this study provide investing implications for fund investors when they are choosing funds.
Keywords: Fund manager, Timing, Stock picking, Performance persistence, Winner, Equity funds
AbstractThe objective of the study is to study the global financial crisis of 2008 and its aftermath. The Great Recession, which is still found fluttering, and the consequences of the recession. As a result of the recession, the global economy is in a slowdown mode, impacting global trade in terms of magnitude and structure. The paper calls for pro-active regulatory structure including of Central banks and world bodies such as IMF, WB, and WTO need to awaken to their responsibility of straightening out international finance and trade.
Keywords: International trade, Financial crisis, Great recession, Global economy, Regulatory structure, WTO
AbstractThe aim of this study is to investigate the effect of dimensions of globalization on economic growth in 100 developing countries using panel data. The globalization index used is KOF and period of study is 1970-2014.The results show that the impact of political globalization on economic growth in upper middle income countries is negative and significant. Also, economic and social globalization has not significant effect on economic growth. Furthermore, the effect of total and political globalization on economic growth in developing countries with lower middle income is positive and significant but economic and social globalization factors have not significant effect, statistically.
Keywords: Political globalization, Economic globalization, Social globalization, Economic growth, Panel data
AbstractEducation is central to human capital capacity‐building, and major determinant of economic development, as it has long been considered as an important investment both for social and economic development. The Middle East and North African countries have been aware of the importance of education therefore considered it as a key part of their strategies and future planning; enrollments at different levels of education have improved dramatically over the past few decades. This study is an empirical investigation to the impact of different level of education attainment on employment level, labor force participation rate and gender gap of employment. For that purpose the cross section time series or panel data set consisting of 15 countries ? where the data is comparable -has been taken. Panel data regression analysis has been carried out to find out the magnitude and direction of relationship between dependent and independent variables. Further Hausman test of specification has been applied for the selection between fixed effect model and random effect model. The main finding of this study, that there is negative relationship between educational attainment and male labor participation rate, while it is positive in case of females labor force. The study found also that with the improvement of educational attainment there has been a decrease employment gender gap.
Keywords: MENA, Gender gap, Education, Labor market, Employment gap, Education and labor market
AbstractAchieving price stability has been in the orbit of concern of state authorities for time immemorial. This paper, therefore, attempted to determine empirically the impact of public wage bill on inflation in Ghana for the period of 1986-2014. Using an Autoregressive Distributed Lag (ARDL) to cointegration model, it was discovered from the study that public wage bill, currency depreciation rate, money supply, and fiscal deficit all have significant impact on inflation in Ghana. The outcome of this study postulated that the rate of inflation determination in Ghana is also a fiscal phenomenon in spite of the significant and domineering role played by monetary expansion. In consequent, equal attention must be accorded both fiscal and monetary policy in the fight against the rate of inflation in Ghana for appreciable and sustained result.
Keywords: Public wage bill, Inflation, Exchange rate, Government fiscal deficit, Money supply, Interest rate
AbstractThe purpose of this paper is to review the relationship between corporate governance mechanisms and information transparency. In this paper, we aim to answer the important questions of whether corporate governance affects financial information transparency, if so, whether transparency reporting can affects corporate governance mechanisms and the interaction of internal and external governance mechanisms. This study uses a sample of 28 non-financial listed Tunisian companies and covers an eight-year period from 2006 to 2013. To test the hypotheses of this research, a simultaneous equation system model was applied. The results obtained shows that, for the Tunisians companies, financial transparency have a significant effect on board size and on audit quality. The current study also provides evidence that corporate governance mechanisms are interdependent. The findings may be of interest to those academic researchers, practitioners and regulators who are interested in discovering corporate governance practices in Tunisian context. This paper extends the existing literature, in the Tunisian context in particular, by examining the causal relationship between corporate governance and information transparency.
Keywords: Simultaneous equations approach, Transparency, Causal relationship, Governance, Financial information, Voluntary disclosure index
AbstractThis study discusses the impact of digitisation on India?s two most vibrant and high potential segments for future growth: services sector and MSME segments. We find that there is a significant rise in growth rate for the India?s services sector and MSME segment since 2000. This was majorly due to digitisation. Digitisation automates the product and process as a result of which both quality and production increases. Despite having a high potential for future growth, India?s MSMEs segment has suffered due to less ?access to finance?. Digitisation improves the performances of MSMEs and helps in reducing financial obstacles by providing alternative financing options to MSME. Increasing access to alternative finance has resulted in the significant rise in MSMEs operating performance, profitability and productivity. The high performance of the India?s services sector and MSME segment contribute significantly to the overall trade growth. This paper finds that there is a high impact of digitisation on the inclusive growth of the overall Indian economy and trade.
Keywords: Crowd funding, Digitisation, E-commerce, FDI, MSME finance, Services
AbstractMany studies conducted by experts who want to know the direct relationship between organizational cultures with organizational performance, but there are also some empirical studies which found that organizational culture is directly does not have a significant impact on employee performance, which means other variables that directly affect the performance employees. Therefore, this study seeks to show how big the Islamic culture through job satisfaction influence on employee performance. The research was conducted on respondents as many as 106 employees both as educators and non-educators at the Education Institute Sabilillah Sampang. Through analysis approach structural equation modeling (SEM) found that: First, the culture of Islam which includes (competence, commitment, honesty and transformative) directly positive effect on employee performance. Second, Islamic culture which includes (competence, commitment, honesty and transformative) positive influence on employee performance through job satisfaction. Third, Islamic culture and job satisfaction simultaneously positive influence on employee performance.
Keywords: Islamic culture, competence, commitment, honesty, transformative, Job satisfaction
AbstractThe determinants of economic growth have always been an important issue in economic research. This paper aims to study the short run and long run impact of foreign direct investment (FDI) and export on economic growth of Vietnam using annual time series data for the period 1986-2015 by implementing ARDL and error correction model. The results show that in the long run FDI has a significant positive impact on Vietnam economic growth while the effect of export is negative. However, FDI and export do not have any significant impact on growth in the short run. These results offer new insights into Vietnam?s openness policy for promoting economic growth.
Keywords: Foreign direct investment, Export, Openness policy, Autoregressive distributed lag, Cointegration, Vietnam
AbstractBeing a developing country E-banking opened up tremendous opportunity to the financial sector and economic development of Bangladesh. This paper studies prospects of e-banking in Bangladesh, considering the performance of Dutch Bangla Bank Ltd. (DBBL) and BRAC Bank Ltd. To evaluate the performance of DBBL and BRAC bank seven trend equations have been tested for different activities of DBBL and BRAC Bank. Among them trend value of number of ATM, recoveries from clients, number of branches, charges from services, income from IT service, card expenses, depreciation on computer equipment and software, other operating expenses, cash carrying charges, net income and EPS are positive in case of both banks during the period of 2008-2015. The square of correlation coefficient (r2) of number of ATM, recoveries from clients, number of branches, income from IT service, card expenses, depreciation on computer equipment and software, other operating expenses, cash carrying charges, net income and EPS is more than 0.5. It indicates the prospect of E-banking in Bangladesh is very bright.
Keywords: Electronic banking, Cash carrying charge, ATM, Credit card