Template-Type: ReDIF-Paper 1.0 Author-Name: OLUFEMI ADEYEYE Author-Name-First: OLUFEMI Author-Name-Last: ADEYEYE Author-Email: adeyeyeo@ukzn.ac.za Author-Workplace-Name: University of KwaZulu_Natal Title: Does Supply-Leading Hypothesis hold in a Developing Economy? A Nigerian Focus Abstract: The financial sector provides services that have been identified as germane for the growth of an economy. The principal function of the financial sector is the movement of financial resources between different units in an economy through the process of financial intermediation. An economy suffers if the financial sector is not efficient. An efficient financial sector can only exist when development occurs in the financial sector. However, the supply-leading hypothesis assumes that financial development is the driver of economic growth. Thus this study inquires into whether the supply-leading hypothesis can be upheld in a developing economy, with particular reference to the Nigerian economic growth between 1981 and 2013. Using the Granger Pairwise causality test, it reveals that there is weak evidence in support of supply-leading hypothesis and the demand-following hypothesis is dominant in the economy. However, the study suggests that there is bi-directional causality between financial development and economic growth which thus confirms the existence of their interdependence in Nigeria context. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 1-1 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=001&rid=4823 File-Function: First version, 2015 Number: 2204823 Classification-JEL: O16, O47, C22 Keywords: supply-leading hypothesis; financial development; economic growth; causality test; Nigeria Handle: RePEc:sek:iefpro:2204823 Template-Type: ReDIF-Paper 1.0 Author-Name: Elif Akben-Selcuk Author-Name-First: Elif Author-Name-Last: Akben-Selcuk Author-Email: elif.akben@khas.edu.tr Author-Workplace-Name: Kadir Has University Title: Do mergers and acquisitions create value for Turkish target firms? An event study analysis Abstract: The objective of this study is to investigate shareholder wealth effects of mergers and acquisitions for an emerging market, namely Turkey. Specifically, we assess the impact of the M&A announcements on the stock price performance of Turkish target firms involved by using a dataset comprising 67 deals announced between 2000 and 2014. Stock price reaction is analyzed over a period of 21 days around the announcement by using standard event study methodology. Results indicate that shareholders of Turkish target firms involved in M&A activities enjoy positive and significant cumulative abnormal returns ranging from 5.25 percent to 8.53 percent depending on the event window analyzed. This finding is consistent with previous studies which show that most of the benefits from M&As accrue to target companies and that acquirers pay a premium to control the rights in these targets. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 2-2 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=002&rid=4990 File-Function: First version, 2015 Number: 2204990 Classification-JEL: G34 Keywords: Acquisitions; wealth effect; stock price performance; target company shareholders; Turkey. Handle: RePEc:sek:iefpro:2204990 Template-Type: ReDIF-Paper 1.0 Author-Name: KHAMIS AL YAHYAEE Author-Name-First: KHAMIS Author-Name-Last: AL YAHYAEE Author-Email: yahyai@squ.edu.om Author-Workplace-Name: Sultan Qaboos University Title: Security Returns during Ex-Dividend Period Abstract: This paper examines the stock dividend ex-day effect on the Muscat Securities Market (MSM), which is of interest because several of the market microstructure explanations for the ex-day effect can be ruled out. We find that there are positive abnormal returns on Omani stock dividend ex-days. We also find that firms distributing stock dividends have higher stock prices than firms that are in the same industries but do not distribute stock dividends. In addition, we find that the positive abnormal returns are positively related to stock price increases in the pre-announcement period and to stock dividend percentages. These evidences suggest that stock dividends in Oman might be used to reduce stock prices. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 3-3 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=003&rid=3795 File-Function: First version, 2015 Number: 2203795 Classification-JEL: G30, G14 Keywords: Stock dividends; Bid-ask effect; Market microstructure Handle: RePEc:sek:iefpro:2203795 Template-Type: ReDIF-Paper 1.0 Author-Name: Bader Alhashel Author-Name-First: Bader Author-Name-Last: Alhashel Author-Email: balhashel@cba.edu.kw Author-Workplace-Name: Kuwait University Title: Rights Offering Announcements and the Efficiency of the Kuwaiti Market Abstract: This study tested the semi-strong form of the Efficient Market Hypothesis in the Kuwait Stock Exchange (KSE). Previous studies examining the KSE have found conflicting evidence on whether it is weakly efficient. This test is conducted by examining the behavior of stock prices around the date of rights offering announcements to determine how long prices take to reflect the new information. Based on a sample of 69 rights offerings over the period 2004-2013 and using event study methodology, we find that prices incorporate new information within an average of 4 days. We take this observation as evidence that the Kuwaiti market is semi-strong efficient. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 4-4 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=004&rid=3849 File-Function: First version, 2015 Number: 2203849 Classification-JEL: G12, G14, G32 Keywords: Efficient Market Hypothesis; Semi-strong; Rights issues; Event study; Emerging market Handle: RePEc:sek:iefpro:2203849 Template-Type: ReDIF-Paper 1.0 Author-Name: Sadaf Anwar Author-Name-First: Sadaf Author-Name-Last: Anwar Author-Email: sadafanwar25@gmail.com Author-Workplace-Name: Indian Institute of Technology, New Delhi, India Author-Name: Shveta Singh Author-Name-First: Shveta Author-Name-Last: Singh Author-Email: shvetasingh@dms.iitd.ac.in Author-Workplace-Name: Indian Institute of Technology, New Delhi, India Author-Name: P K Jain Author-Name-First: P K Author-Name-Last: Jain Author-Email: pkjain@dms.iitd.ac.in Author-Workplace-Name: Indian Institute of Technology, New Delhi, India Title: Cash Dividend Announcements and Stock Return Volatility: Evidence from India Abstract: It is generally accepted that cash dividend announcements are indicative of the future financial performance of the firm. Using ?event study methodology?, the study has examined the effect of cash dividend announcements on stock returns (abnormal returns, if any) volatility that reflect investors? expectations of risk and return. The results have provided strong support for ?Signaling? and ?Risk Information? hypotheses conveying that the volatility of stock returns increased post cash dividend announcement due to decline in firm?s risk; but no significant results were reported for stock returns volatility due to dividend announcements. These findings are consistent with ?Maturity hypothesis? requiring firms to pay more dividends on attaining maturity, as a result entering into slower growth period. An important implication of this study is that, managers may employ dividend policy to influence their stock?s risk and to the investors? affecting their portfolios? risk/return composition. This paper contributes to the deficient literature on cash dividend announcements and stock returns volatility in particular, in emerging economies such as India. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 5-5 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=005&rid=4432 File-Function: First version, 2015 Number: 2204432 Classification-JEL: D81, G11, C58 Keywords: India; Event Study; Signaling Handle: RePEc:sek:iefpro:2204432 Template-Type: ReDIF-Paper 1.0 Author-Name: Resul Aydemir Author-Name-First: Resul Author-Name-Last: Aydemir Author-Email: resul.aydemir@gmail.com Author-Workplace-Name: Istanbul Technical University Author-Name: Bulent Guloglu Author-Name-First: Bulent Author-Name-Last: Guloglu Author-Email: guloglub@itu.edu.tr Author-Workplace-Name: Istanbul Technical University Author-Name: Ercan Saridogan Author-Name-First: Ercan Author-Name-Last: Saridogan Author-Email: ercan.saridogan@istanbul.edu.tr Author-Workplace-Name: Istanbul University Title: VOLATILITY SPILLOVERS AND DYNAMIC CORRELATIONS BETWEEN EMERGING ECONOMIES IN FOREIGN EXCHANGE AND BOND MARKETS Abstract: The global financial crisis reached its peak when Lehman Brothers declared its bankruptcy on 15th of September, 2008. To avoid the risk of a financial collapse, the Fed has taken steps to launch several quantitative easing (QE) programs. The Fed?s first exit signal from these QE programs was given by Chairman Bernanke on the 22nd of May, 2013 during a Congress hearing. Eventually, the Fed announced its tapering decision on 18th of December, 2013. These historical shocks (events and central banks? decisions) are well known to have had a huge impact on the foreign exchange, money and credit markets, especially in such emerging countries as Brazil, India, Indonesia, South Africa and Turkey, recently referred to as the Fragile Five. In this paper, we have four goals. We examine how these three historical shocks mentioned above affect not only the size but also the persistence of the volatilities among 1) exchange rates and 2) ten-year bond rates of the Fragile Five. We also investigate separately the dynamic interactions between 3) exchange rates and 4) ten-year bond rates of the Fragile Five. To that end, we first estimate a multivariate GARCH model (VAR-BEKK model) and derive conditional variances and dynamic (time varying) conditional correlations with covariances. Then, we analyze the effects of these historical shocks on the volatilities of exchange rates and interest rates. We utilize volatility impulse response functions (VIRFs) developed by Hafner and Herwartz (2006) to achieve these objectives.Our results suggest that all three shocks have large and positive impacts on expected conditional variances of the exchange rate and bond rate returns of the Fragile Five. Specifically, Brazil seems to be the most responsive country among the Fragile Five to the shocks under investigation both in exchange rate and bond markets, while India appears to be the least sensitive one. Regarding the dynamic conditional correlations (DCCs) among the exchange rate and ten-year bond markets of the Fragile Five, we find that the DCC series of bond returns exhibit much lower correlations than those associated with exchange rate returns. This result indicates that ten-year bond markets provide a better diversification opportunity than foreign exchange markets in the Fragile Five. However, our results demonstrate that the correlations among the ten-year bond markets exhibit more volatility than the ones among exchange rate markets. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 6-6 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=006&rid=4248 File-Function: First version, 2015 Number: 2204248 Classification-JEL: C58, F37, G15 Keywords: Shocks, Volatility Spillovers, Exchange Rates, Interest Rates, Emerging Markets Handle: RePEc:sek:iefpro:2204248 Template-Type: ReDIF-Paper 1.0 Author-Name: Terezie Bartuskova Author-Name-First: Terezie Author-Name-Last: Bartuskova Author-Email: bar404@vsb.cz Author-Workplace-Name: VSB - TU Ostrava Author-Name: Ales Kresta Author-Name-First: Ales Author-Name-Last: Kresta Author-Email: ales.kresta@vsb.cz Author-Workplace-Name: VSB - TU Ostrava Title: Application of AHP method in external strategic analysis of the selected organization Abstract: Strategic management belongs indisputably to the activities enabling long-term development of the organization. Managers must decide on future actions. The first step of the process is strategic analysis, which helps to identify and to describe organizational internal and external environment. SWOT analysis is the most frequently applied method which enables synthesis of partial results of external and internal analyses. The paper is focused on external part of SWOT analysis. The aim is to propose evaluation of the partial results of external strategic analyses, which are basis for creation of external part of SWOT matrix. Analytic hierarchy process is used for the evaluation and this method is applied on data of the selected organization. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 7-7 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=007&rid=4770 File-Function: First version, 2015 Number: 2204770 Classification-JEL: C51, L10 Keywords: Analytic Hierarchy Process, external environment, strategic analysis, SWOT analysis. Handle: RePEc:sek:iefpro:2204770 Template-Type: ReDIF-Paper 1.0 Author-Name: Esref Savas Basci Author-Name-First: Esref Savas Author-Name-Last: Basci Author-Email: esavasbasci@hitit.edu.tr Author-Workplace-Name: Hitit University, Faculty of Economics and Administrative Sciences Title: Yield Spreads on Government Benchmark Bonds: Cross Country Evidence Abstract: Government Benchmark Bond?s yield differentials between countries may provide evidence movements in changes risk factors and its expectations. In most countries, the risk perception on long term bond?s interest rate has changed in decrease year by year. Comparing specification yield and cointegration of 10-year Government Benchmark Bond between countries makes it possible to understand whether there is any changes perception of risk. The perception of risk may appoint banking and corporate risk premiums in their bond market. Besides, an integrated government bond market has an importance for monetary mechanism to the country. And it is related to financial sector activity like hedging and pricing debt, and it is supports international factors affect spreads because they change the perceived default risk of government bonds in the countries. Because of cointegration between markets is highly important for changing effects of risk expectation which is relatively different from country to country. The aim of this paper is to learn 10-year Government Benchmark Bond?s Behavior and effecting to the other county?s benchmark bond. For this purpose, we examined Abnormal Return and Cumulative Abnormal Return of Australia, Canada, Euro Zone, UK, Japan and US?s 10-year Government Benchmark Bond monthly rate from January 2000 to April 2015 period. It is analyzed 184 nominal repurchase rates in monthly base for each countries benchmark bond as a time series. In calculating Abnormal Return, US?s Government Benchmark Bond?s Rate has determined as a comparison parameter to each countries series. According to cumulative abnormal returns, we have detected which country has dramatically dropped against US?s benchmark bond yield. After this evidence, we have taken into account any cointegrating relationship among the countries? benchmark bonds. We analyzed Johansen (1988) Cointegration Test to determine long term relationship between them. In addition to Johansen Cointegration test, we need to determine short term effect for each series. In this study, we tested Vector Error Correction Model (VECM) to calculate coefficient to hold balance between cointegration. We also tested Granger Causality (2004) to determine which benchmark bond has causality behavior to the other government benchmark bond. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 8-8 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=008&rid=4522 File-Function: First version, 2015 Number: 2204522 Classification-JEL: G12, G15, C58 Keywords: Benchmark Bond, Johansen Cointegration, Granger Causality, Handle: RePEc:sek:iefpro:2204522 Template-Type: ReDIF-Paper 1.0 Author-Name: NAFIU BASHIR ABDUSSALAM Author-Name-First: NAFIU Author-Name-Last: BASHIR ABDUSSALAM Author-Email: nafiu_bashir13@yahoo.co.uk Author-Workplace-Name: BAYERO UNIVERSITY, KANO, NIGERIA Author-Name: SHEHU USMAN ALIYU RANO Author-Name-First: SHEHU Author-Name-Last: USMAN ALIYU RANO Author-Email: susaliyu.iiibfbuk@buk.edu.ng Author-Workplace-Name: BAYERO UNIVERSITY, KANO Author-Name: SANI BAWA Author-Name-First: SANI Author-Name-Last: BAWA Author-Email: sanibawa@gmail.com Author-Workplace-Name: CENTRAL BANK OF NIGERIA Title: Examining The Degree of Exchange Rate Pass-Through in Sub-saharan Oil Exporting Countries: A Panel Data Approach Abstract: The paper sets to explore the debate of whether a shift to a more stabilized low-inflation regime as a result of monetary policy dynamics could lead to a decline in the degree of pass-through of exchange rate movements to consumer prices. The paper deviates from previous empirical work as it subjects the series to multiple structural break tests as proposed by Bai and Perron (2013) which help to identify policies related to stabilizing the environment and also uses panel-data approach. The paper utilizes quarterly data from 1981q1 to 2014q3 and covers oil exporting countries in Sub-Saharan African and lends it support to the Taylor Hypothesis. Specifically, the paper confirms the hypothesis that the degree of exchange rate pass-through to consumer price declines following inflation stabilization policies as witnessed in the selected countries. Guided by the findings of the paper, the policies adopted after 2010s seems to be more credible in stabilizing the environment than the policies implemented in the 1990s.Several explanations have been offered for the relative efficiency of the 2010s policies. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 9-9 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=009&rid=4832 File-Function: First version, 2015 Number: 2204832 Classification-JEL: E31, D42, F31 Keywords: Exchange rate pass-through, Taylor Hypothesis, Linear Dynamic Panel Models, Multiple Structural Break Test Handle: RePEc:sek:iefpro:2204832 Template-Type: ReDIF-Paper 1.0 Author-Name: Vandana Bhama Author-Name-First: Vandana Author-Name-Last: Bhama Author-Email: vandana.bhama@gmail.com Author-Workplace-Name: Indian Institute of Technology Author-Name: Pramod Kumar Jain Author-Name-First: Pramod Kumar Author-Name-Last: Jain Author-Email: pkjain@dms.iitd.ac.in Author-Workplace-Name: Indian Institute of Technology Author-Name: Surendra Singh Yadav Author-Name-First: Surendra Singh Author-Name-Last: Yadav Author-Email: ssyadav@dms.iitd.ac.in Author-Workplace-Name: Indian Institute of Technology Title: Does firms? pecking order vary during large deficits and surpluses? An empirical study on emerging economies Abstract: The present study examines firms (of India and China) with normal as well as large deficits and surpluses. Using an extended model of pecking order theory, the study indicates that Indian and Chinese firms frequently issue debt when have normal deficits. Surprisingly during normal deficiencies, Chinese firms retire debt more frequently vis-a-vis Indian firms due to more reliance on short-term debt. The pecking order results are less supportive for Indian firms with large deficits due to high debt ratios that constrainfirms not to issue more debt. In marked contrast, the results are robust for Chinese firms. Firms continue to raise substantial debt even in the situation of high debt ratios. In a surplus situation (withnormal surpluses), Indian firms utilise surpluses as well as new debt proceeds to a partial extent to payback existing debt obligations to reduce their debt levels. In contrast, the results are excellent in favour of Chinese firms.During large surplus conditions, the results are extremely poor for Indian firms but weak for Chinese firms. Indian firms retain surpluses and new debt issuesfor future investment needs. In marked contrast, Chinese firms retain up to 40 per cent of their funds. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 10-10 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=010&rid=4560 File-Function: First version, 2015 Number: 2204560 Classification-JEL: G32 Keywords: Pecking Order Theory; Financing; Deficit; Surplus; Debt; Equity Handle: RePEc:sek:iefpro:2204560 Template-Type: ReDIF-Paper 1.0 Author-Name: Joanna Bialynicka-Birula Author-Name-First: Joanna Author-Name-Last: Bialynicka-Birula Author-Email: bialynij@uek.krakow.pl Author-Workplace-Name: Cracow University of Economics Title: MODELLING INTERNATIONAL TRADE IN ART - MODIFIED GRAVITY APPROACH Abstract: The issue of modelling international trade in works of art has been taken up in the paper. It presents the gravity approach to the international trade in art in European Community countries. The analysis is based on Eurostat international trade data (Harmonised System for export and import chapter 97 ? works of art, collectors? pieces and antiques, including respective kinds of works of art: paintings, drawings and pastels; collages, graphic arts, sculptures and antiques). The gravity model is based on nonlinear (power function) regression made in Statistica 9.0 software. It should be underlined that instead of GDP, traditionally used in gravity models of international trade, author proposes to use art markets? turnovers on internal markets as independent variables. Using the mentioned model the author explains the influence of art markets of considered countries and distances between them on total export and import of work of art. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 11-11 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=011&rid=4856 File-Function: First version, 2015 Number: 2204856 Classification-JEL: F14, Z11, F49 Keywords: international trade, art, gravity model, art trade, international art trade, trade model, European Union Handle: RePEc:sek:iefpro:2204856 Template-Type: ReDIF-Paper 1.0 Author-Name: Martin Bo?a Author-Name-First: Martin Author-Name-Last: Bo?a Author-Email: martin.boda@umb.sk Author-Workplace-Name: Matej Bel University in Banská Bystrica, Faculty of Economics Author-Name: Mariana Pova?anová Author-Name-First: Mariana Author-Name-Last: Pova?anová Author-Email: mariana.povazanova@umb.sk Author-Workplace-Name: Matej Bel University in Banská Bystrica, Faculty of Economics Title: Gender asymmetry in Okun?s law in the four PIGS countries Abstract: Centred on the four PIGS countries (Portugal, Italy, Greece and Spain) and using the quarterly data from Q2/1998 until Q4/2014, the paper investigates whether there exists gender asymmetries in Okun's law and whether male unemployment reacts identically to economic fluctuations as female unemployment does. Whilst the trend components of output, male and female unemployment are estimated with the aid of the HP filter, Okun's relationships are modelled in the SVAR framework assuming that cyclical fluctuations of the economy and the labour market with both male and female labour force are endogenous. It is established that gender is indeed a factor that makes the respective segments of the labour market respond slightly differently to changes in real output. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 12-12 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=012&rid=4909 File-Function: First version, 2015 Number: 2204909 Classification-JEL: J64, E32 Keywords: Okun's law; gender, male unemployment; female unemployment, SVAR model. Handle: RePEc:sek:iefpro:2204909 Template-Type: ReDIF-Paper 1.0 Author-Name: Martin Bo?a Author-Name-First: Martin Author-Name-Last: Bo?a Author-Email: martin.boda@umb.sk Author-Workplace-Name: Matej Bel University in Banská Bystrica, Faculty of Economics Author-Name: Emília Zimková Author-Name-First: Emília Author-Name-Last: Zimková Author-Email: emilia.zimkova@umb.sk Author-Workplace-Name: Matej Bel University in Banská Bystrica, Faculty of Economics Title: How non-radiality matters ? Pareto-Koopmans technical efficiency in production of branches of a Slovak commercial bank Abstract: The purpose of the paper is to point to usability of data envelopment analysis (DEA) for technical efficiency assessment of bank branches. The paper addresses the issue of choosing a technical efficiency measure most comprehensive and informative and makes a comparison between the Pareto-Koopmans measure and the hyperbolic Debreu-Farrell measure. By way of both theoretical argumentation and empirical demonstration, the paper shows that technical efficiency measurement in DEA should be based on non-radial measures rather than radial measures that are conventionally used in DEA applications. In addition, the paper justifies the choice of a specific DEA model suitable for technical efficiency measurement of bank branches. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 13-13 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=013&rid=4941 File-Function: First version, 2015 Number: 2204941 Classification-JEL: C44, G21 Keywords: data envelopment analysis; technical efficiency; the Pareto-Koopmans measure; the hyperbolic Debreu-Farrell measure; bank branches. Handle: RePEc:sek:iefpro:2204941 Template-Type: ReDIF-Paper 1.0 Author-Name: Luis Castro Author-Name-First: Luis Author-Name-Last: Castro Author-Email: luiscastro@lp.upb.edu Author-Workplace-Name: Universidad Privada Boliviana Title: Does Licensing induce Spillover effects? Abstract: Productivity differences can explain differences in economic growth across countries. It has been demonstrated that the presence of a foreign-owned multinational enterprise (MNE) in a developing country is one of the most important methods through which technology transfer occurs. This presence could be in the form of foreign direct investment (FDI), licensing, or imports from the developing country. However, it is still unclear by what means and how effectively each type of foreign presence affects domestic productivity.In this paper, I study licensing as one of the channels through which foreign technology is transferred to domestic plants. This technology transfer can occur in one industry and also in related industries, which results in technology spillovers that can affect both intra- and inter-industry productivity. Moreover, the institutional framework of the country can affect the type of foreign presence adopted by MNEs in the host country. Therefore, it is important to analyze the effect of a change in the institutional framework on technol- ogy spillovers. This can be achieved by analyzing a set of new and stronger intellectual property rights (IPR).Using Chilean firm level data for the 2001?2007 period I find that there are positive inter-industry spillover effects when licensing occurs in downstream sectors which result in higher productivity for domestic plants in upstream sectors (backward spillovers).When evaluating the effect of the IPR measure, I find that stronger IPR measures decrease the backward spillover effect. I also find that the change in policy has a stronger effect on firms that are, on average, smaller and have low productivity. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 14-14 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=014&rid=4581 File-Function: First version, 2015 Number: 2204581 Classification-JEL: F14, F10, O30 Keywords: Spillover effects, Intellectual Property Rights, Chile Handle: RePEc:sek:iefpro:2204581 Template-Type: ReDIF-Paper 1.0 Author-Name: Liqun Du Author-Name-First: Liqun Author-Name-Last: Du Author-Email: duliqun@pku.edu.cn Author-Workplace-Name: Peking University Title: Positive correlation between government expenditure and real interest rate: Testing Ramsey Model based on American and Chinese data Abstract: In the classical Ramsey Model, temporary increase of government expenditure will raise real interest rate. By using the data of American expenditure on national defense and the interest rate of 10-year constant maturities from 1959 to 2002, the paper points to the conclusion from the empirical analysis of positive correlation between government expenditure and real interest rate that temporary increase of government expenditure will surely lead to a rise in real interest rate. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 15-15 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=015&rid=4985 File-Function: First version, 2015 Number: 2204985 Classification-JEL: B22, E27, H50 Keywords: Ramsey Model; Government Expenditure; Real Interest Rate Handle: RePEc:sek:iefpro:2204985 Template-Type: ReDIF-Paper 1.0 Author-Name: Mária ?uri?ová Author-Name-First: Mária Author-Name-Last: ?uri?ová Author-Email: maria.durisova@fri.uniza.sk Author-Workplace-Name: University of ?ilina Author-Name: Emese Tokar?íková Author-Name-First: Emese Author-Name-Last: Tokar?íková Author-Email: emese.tokarcikova@gmail.com Author-Workplace-Name: University of ?ilina Author-Name: Al?beta Kuchar?íková Author-Name-First: Al?beta Author-Name-Last: Kuchar?íková Author-Email: alzbeta.kucharcikova@fri.uniza.sk Author-Workplace-Name: University of ?ilina Title: The Decomposition of the Result of the Business Transformation Process in the Value Terms Abstract: The economic result is primary and main financial source for the further development of the enterprise. It is an expression of value of business transformation process. It represents the criterion for deciding on the volume of production, new products, investments, etc. In the interests of stability and the further development of each enterprise we need to pay attention to it not only in terms of level, but also the factors that affect it. On the basis of the above, there was created a process model of decomposition of the economic result. It consists of the knowledge and the analysis of its reference point, defining target value, making variations in order to achieve the target value, the determination of the means to achieve it, establishing the criteria for the selection of variant, selection of the most appropriate variant, implementation of concrete measures, finding the actual condition of the creation of economic result, findings and analyses of the deviations, adoption of measures. The aim of the paper is the generalisation of the results arising from the creation and application of process model of economic result decomposition and drawing conclusions and recommendations. The result is the acquisition of new knowledge making up the essence of the observed value expression of the business transformation process. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 16-16 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=016&rid=4460 File-Function: First version, 2015 Number: 2204460 Classification-JEL: D00, M20, M21 Keywords: decomposition, business transformation process, economic result Handle: RePEc:sek:iefpro:2204460 Template-Type: ReDIF-Paper 1.0 Author-Name: Victoria Garkusha Author-Name-First: Victoria Author-Name-Last: Garkusha Author-Email: vgarkusha@deloitte.co.uk Author-Workplace-Name: Deloitte LLP Title: Corporate Tax Rate and Recent Inbound and Outbound Mergers and Acquisitions Activity in the United Kingdom Abstract: In the light of the substantial changes to the corporation tax policy implemented gradually by the United Kingdom government over the course of past 6-7 years this paper looks to consider the impact this change had on the mergers and acquisitions activity of foreign companies in the United Kingdom and vice versa . The tax rate has changes from 28% in 2009 to 21% in 2014 and further, having been flat 30% for a decade prior to that.We investigate possible statistical relations between this trend and activity from both host and home countries in mergers and acquisitions deals in the context of the financial crises and subsequent recovery. We also try to exploit few other key features from the hypothesis of tax competition such as: productivity cutoff, as well as the so-called proximity-concentration theory to test the influence of the tax rate changes in home and host countries on deals volumes and values. Scope of testing included mergers and acquisitions transactions where UK business involved with countries of one of three clusters: native English speaking (such as the United States, Australia, Ireland); developed European (e.g. Germany, Sweden, Netherlands), and conditional South (China, India, Turkey, etc).Using different sources, United Nations Conference on Trade and Development, World Economic Forum Reports, and World Bank data to gather information on corporate taxes, Gross Domestic Product (GDP), GDP per capita, trade openness, and business sophistication, we also employed countries? proximity factor to estimate the impact of the corporate tax. The results did not confirm anticipated influence on the mergers and acquisitions activity ? based on empirical evidence it appears that lowering the UK tax rate effect demonstrates either opposite sign to what could be expected, or is redundant and not significant at conventional level of probability. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 17-17 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=017&rid=4966 File-Function: First version, 2015 Number: 2204966 Classification-JEL: G34, H25, C50 Keywords: Mergers and acquisitions; Corporate tax rate; Statistical significance Handle: RePEc:sek:iefpro:2204966 Template-Type: ReDIF-Paper 1.0 Author-Name: Ishita Ghoshal Author-Name-First: Ishita Author-Name-Last: Ghoshal Author-Email: ishita.ghoshal@sse.ac.in Author-Workplace-Name: Symbiosis School of Economics, Symbiosis International University Title: Trade-Growth Relationship in India in the Pre and Post Trade Agreements Regime Abstract: The paper tries to delve into the causal relationship between trade and growth in India, with particular emphasis on the effect of introduction of various trade agreements on this relationship. A lot has been discussed about the impact (good or bad) of RTAs, PTAs and FTAs on an economy. The author has tried to check whether there has been any causal relationship between trade and growth in India in general and whether any change (positive or negative) was brought about by the implementation of the agreements. It is found here that, before India became a part of the trade agreements, exports led to growth but growth didn?t lead to export formation. However, with the advent of the trade agreements, the relationship was seen to be swapped, the causation running in the opposite direction and the relation seemed to be strengthened. Also, it is seen that in the pre trade agreements regime, though exports caused growth, the effect on growth was insignificant; whereas in the post agreements regime GDP caused exports and the relationship is statistically significant and negative (rise in GDP led to fall in exports). Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 18-18 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=018&rid=4958 File-Function: First version, 2015 Number: 2204958 Classification-JEL: F10, F14, F13 Keywords: Trade-growth, Causality, Regional Trade Agreements Handle: RePEc:sek:iefpro:2204958 Template-Type: ReDIF-Paper 1.0 Author-Name: Mehdi Hamidi Sahneh Author-Name-First: Mehdi Author-Name-Last: Hamidi Sahneh Author-Email: mehdi.sahneh@gmail.com Author-Workplace-Name: UC3M Title: Testing for Noncausal Vector Autoregressive Representation Abstract: We propose a test for non-causal vector autoregressive representation generated by non-Gaussian shocks. We prove that in these models the Wold innovations are martingale difference if and only if the model is correctly specified. We propose a test based on a generalized spectral density to check for martingale difference property of the Wold innovations. Our approach does not require to identify and estimate the non-causal models. No specific estimation method is required, and the test has the appealing nuisance parameter free property. The test statistic uses all lags in the sample andit has a convenient asymptotic standard normal distribution under the null hypothesis. A Monte Carlo study is conducted to examine the finite-sample performance of our test. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 19-19 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=019&rid=4921 File-Function: First version, 2015 Number: 2204921 Classification-JEL: C32, C50 Keywords: Explosive Bubble; Identification; Non-causal Process; Vector Autoregressive. Handle: RePEc:sek:iefpro:2204921 Template-Type: ReDIF-Paper 1.0 Author-Name: . Harshita Author-Name-First: . Author-Name-Last: Harshita Author-Email: harshita@dmsiitd.org Author-Workplace-Name: Indian Institute of Technology Delhi Author-Name: Shveta Singh Author-Name-First: Shveta Author-Name-Last: Singh Author-Email: shvetasingh@dms.iitd.ac.in Author-Workplace-Name: Indian Institute of Technology Delhi Author-Name: Surendra S. Yadav Author-Name-First: Surendra S. Author-Name-Last: Yadav Author-Email: ssyadav@dms.iitd.ac.in Author-Workplace-Name: Indian Institute of Technology Delhi Title: Indian stock market and the asset pricing models Abstract: Asset pricing models are attempts to define the relationship between returns and risks. In this study, we test and compare the performance of three asset pricing models ? the Capital Asset Pricing Model, the three factor model of Fama and French (1993), and the five factor model of Fama and French (2015) ? on Indian stock market (an emerging economy). The study is based on the constituent companies of CNX 500, and covers a period of fifteen years ? from October 1999 to September 2014. The models are tested on portfolios formed on four firm characteristics ? market capitalization, ratio of book-to-market equity, profitability, and investment. We find that the three factor model performs better than the Capital Asset Pricing Model in all the cases. For portfolios formed on investment, the five factor model performs better than the other models. However, except for cases in which portfolios are formed on investment, the four factor model (without an investment factor) is a more parsimonious model. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 20-20 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=020&rid=4802 File-Function: First version, 2015 Number: 2204802 Classification-JEL: G12, C52 Keywords: Asset pricing model; market capitalization; book-to-market equity; profitability; investment; India Handle: RePEc:sek:iefpro:2204802 Template-Type: ReDIF-Paper 1.0 Author-Name: Jyh-Dean Hwang Author-Name-First: Jyh-Dean Author-Name-Last: Hwang Author-Email: jdhwang@ntu.edu.tw Author-Workplace-Name: National Taiwan University Title: On the renminbi dominance in East Asia Abstract: This paper investigates the role of the renminbi in East Asia. We find novel results that the renminbi dominance reported in recent studies stands only when daily data are used and the multicollinearity problem is uncorrected. Once the multicollinearity problem is corrected, the US dollar remains the dominant currency regardless of data frequency used. As the regression model, the periodization of data, and the sample currencies used in this study are the same as or similar to those used in the literature, our results are comparable to those reported in the literature. Our findings suggest that the renminbi dominance and the rise of a tri-polar global currency system advocated in the literature are flimsy, and one should be mindful of data frequency used when investigating this issue. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 21-21 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=021&rid=4544 File-Function: First version, 2015 Number: 2204544 Classification-JEL: F31, F36 Keywords: renminbi dominance; renminbi bloc; East Asian currencies; international monetary system Handle: RePEc:sek:iefpro:2204544 Template-Type: ReDIF-Paper 1.0 Author-Name: Razi Iqbal Author-Name-First: Razi Author-Name-Last: Iqbal Author-Email: raziiqbal20@gmail.com Author-Workplace-Name: Shri Ram College of Commerce, Delhi University Author-Name: Padma Todi Author-Name-First: Padma Author-Name-Last: Todi Author-Email: padma.todi@gmail.com Author-Workplace-Name: Shri Ram College of Commerce, Delhi University Title: The Nordic Model: Existence, Emergence and Sustainability Abstract: In a world where inequality is on the rise alongside an increase in income, it becomes of paramount interest for anyone to find a nation or a group of nations which manage to have well-performing economic and social indicators. This curiosity about finding a ?third? model led us to the Nordic Model.Our qualitative paper titled ?Establishing the existence of Nordic model and its sustainability? is aimed at documenting the present condition of the Model in the five countries that come under the purview of the Model: Denmark, Finland, Iceland, Norway and Sweden. We begin with establishing the existence of the Model using certain social and economic indicators. We look at the various reasons, both historical and those unique to these countries, behind the emergence and success of the model. We discuss the major problems that these countries as a whole are facing with regard to continuing the existing system or improving it. We look at possible ways in which the countries could sustain the model. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 22-22 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=022&rid=4946 File-Function: First version, 2015 Number: 2204946 Classification-JEL: P51, P48, P50 Keywords: Nordic model, Welfare, population, inequality, free market, Handle: RePEc:sek:iefpro:2204946 Template-Type: ReDIF-Paper 1.0 Author-Name: Bo?ena Kade?ábková Author-Name-First: Bo?ena Author-Name-Last: Kade?ábková Author-Email: b.kaderabkova@centrum.cz Author-Workplace-Name: Czech Technical University in Prague, Faculty of Civil Engineering Author-Name: Petr Male?ek Author-Name-First: Petr Author-Name-Last: Male?ek Author-Email: Petr.Malecek@mfcr.cz Author-Workplace-Name: University of Economics, Prague, Faculty of Economics Title: Churning and Labour Market Flows in the New EU Member States Abstract: Labour market flows has been a thoroughly researched topic in modern macroeconomic theory. Over time, several related concepts have been invented, which refer to similar phenomena but which need to be interpreted somewhat differently. This article seeks to clarify these measures and to point out common elements and important differences. After the initial theoretical introduction, an empirical analysis of labour market flows is conducted; the reference group for quantifications being the new EU member states. This paper presents both the course of labour market flows over time and the results of a panel regression with the aim to find out which macroeconomic variables have an impact on labour market flows in these countries. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 23-23 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=023&rid=5009 File-Function: First version, 2015 Number: 2205009 Classification-JEL: J63, C23 Keywords: labour market flows, churning, panel regression Handle: RePEc:sek:iefpro:2205009 Template-Type: ReDIF-Paper 1.0 Author-Name: Jasur Karshibaev Author-Name-First: Jasur Author-Name-Last: Karshibaev Author-Email: karshibaev@gmail.com Author-Workplace-Name: Kyushu University Title: Monetary Cooperation Perspective in Central Asian Countries Abstract: The paper explores monetary cooperation perspectives in Central Asian countries in view of recent developments in two largest regional economies (Kazakhstan and Uzbekistan) and EU experience. Recent global economic and financial crisis resulted in changes in exchange arrangements and monetary policy frameworks as well as in development strategies in Central Asian countries and brought to the prioritization of the pegged exchange arrangements with the view to ensuring external economic competitiveness and economic diversification based on industrialization. However, exchange rates in these economies are primarily pegged against US Dollar while other exchange rates against other countries are determined based on cross-rates. Furthermore, US Dollar dominates in Central Asian countries as a key currency of foreign trade at the time when main trade partners include Russia, China and other neighboring countries. Consequently, latest severe exchange rate volatility of Russian Ruble had a negative impact on Central Asian countries in form of foreign trade terms deterioration and subsequent drops in exports to Russia and abrupt devaluation of exchange rates.In view of recent developments, there is a strong need for regional monetary cooperation aimed at enhancing mutual trade and minimizing exchange rate volatilities. EU countries? experience in 1960s-1970s can serve as ground framework for the monetary cooperation in Central Asian countries, particularly, in part of introduction of exchange rate mechanism and European currency unit. In consideration of that, the paper discusses monetary cooperation perspectives in Central Asian countries in view of economic expediency of the introduction of regional monetary system (Central Asian Monetary System) with corresponding exchange rate mechanism and regional currency unit (Central Asian Currency Unit). Particularly, the paper presents an estimation of Central Asian Currency Unit based on ECU calculation methodology. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 24-24 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=024&rid=4862 File-Function: First version, 2015 Number: 2204862 Classification-JEL: E00, E42, F15 Keywords: Exchange arrangements, monetary policy frameworks, monetary cooperation, Central Asia, international trade Handle: RePEc:sek:iefpro:2204862 Template-Type: ReDIF-Paper 1.0 Author-Name: Prabhjot Kaur Author-Name-First: Prabhjot Author-Name-Last: Kaur Author-Email: k.jot05@gmail.com Author-Workplace-Name: Indian Institute of Technology, Kanpur Author-Name: Prof. Praveen Kulshreshtha Author-Name-First: Prof. Praveen Author-Name-Last: Kulshreshtha Author-Email: pravk@iitk.ac.in Author-Workplace-Name: Indian Institute of Technology, Kanpur Author-Name: Prof. Sukhpal Singh Author-Name-First: Prof. Sukhpal Author-Name-Last: Singh Author-Email: sukhpal@iimahd.ernet.in Author-Workplace-Name: Indian Institute Of management, Ahmedabad Title: Agrarian Distress and Socio-Economic Characteristics of Suicide Victims in India : A Case of Punjab Abstract: Over the past two decades, declining agricultural growth and rising cultivation costs have diminished farmers? incomes across India. Moreover, large scale adoption of commercial farming has amplified farmers? credit needs, leading to widespread credit defaults. Consequently, small and marginal Indian farmers have been compelled to borrow largely from informal sources at exorbitant interest rates, thus plunging themselves into a relentless debt trap. The acute agrarian distress due to indebtedness and other socio-economic factors has led to an alarming spate of farmers? suicides in several states (Maharashtra, Andhra Pradesh, Kerala, and Karnataka) since the mid-1990s, including the prosperous state of Punjab (a disturbing phenomenon for agriculturally developed and role model state). The present empirical study was conducted in the highly distressed districts namely Sangrur and Mansa, which come under Malwa Zone of Punjab. Primary data were obtained from families in these suicide prone districts through personal interviews with the help of a well-structured questionnaire for the year June 2013-May 2014. The present study focuses on identifying the reasons of farmers? suicides. This will be studied by documenting the socio-economic profile of farmers; studying the extent of indebtedness; and it will explore whether suicide was caused by forces of economic distress alone or were due to the interplay of the forces of economic distress and social factors. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 25-25 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=025&rid=5018 File-Function: First version, 2015 Number: 2205018 Classification-JEL: Keywords: Agrarian distress, Indebtedness, Farmers' Suicide Handle: RePEc:sek:iefpro:2205018 Template-Type: ReDIF-Paper 1.0 Author-Name: osman kilic Author-Name-First: osman Author-Name-Last: kilic Author-Email: osman.kilic@quinnipiac.edu Author-Workplace-Name: quinnipiac university Title: Hedge Funds and Market Timing: Evidence from Commodity Markets Abstract: As an alternative investment vehicle that employ dynamic trading strategies hedge funds has been growing explosively both in terms of the number of hedge funds and the value of assets under management (AUM). This paper focuses on the ability of hedge fund managers to time commodity markets. We used both pooled and calendar single and multiple timing index models to measure if hedge funds can time the market. There is mixed evidence of market timing ability of hedge funds. The results over the entire sample period of 1996-2000 show that when we use DJUBS index for market timing ability of hedge funds in a pooled time models there is an evidence. But, in single index model of calendar time there is none. Even my GS index model shows that there is negative alpha at 5% significant level. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 26-26 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=026&rid=4604 File-Function: First version, 2015 Number: 2204604 Classification-JEL: G01, G11 Keywords: Financial crises, hedge funds, market timing Handle: RePEc:sek:iefpro:2204604 Template-Type: ReDIF-Paper 1.0 Author-Name: Hyunseok Kim Author-Name-First: Hyunseok Author-Name-Last: Kim Author-Email: khs8319@naver.com Author-Workplace-Name: SKKU Business School, Sungkyunkwan University Author-Name: Kyeong-Seop Choi Author-Name-First: Kyeong-Seop Author-Name-Last: Choi Author-Email: kyeongchoi78@hanmail.net Author-Workplace-Name: SKKU Business School, Sungkyunkwan University Title: Voluntarily lower-dividend paying firms: Determinants and consequences Abstract: This paper investigates the firm characteristics and consequences of ?voluntarily lower or zero dividend paying? phenomenon. ?Voluntarily lower dividend paying? firms are defined as the ones whose incomes are above the median and yet whose dividend payouts are below the median in a given industry and a given year (or, HILND: High Income Low or No Dividend) (Ko and Park, 2014). Signaling theory, agency theory, residual dividend theory, life cycle theory explain the relations between firm characteristics and dividend payouts. This paper builds upon these theories and, controlling for all the variables so far known, additionally examines CEO overconfidence and market competition. We discover that CEO overconfidence, as well as its interaction with CEO ownership, affects HILND positively. Young, small firms with more growth opportunities are more likely to perform HILND. Moreover, HILND policy relates positively to capital expenditures on fixed assets, but negatively to capital expenditures on R&D which is intangible and risky. Firm risk has nothing to do with HILND. Higher market competition leads to more HILND decisions, which supports the substitution model rather than the outcome model of market competition and dividend. Finally, HILND firms have better market and operating performance. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 27-27 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=027&rid=5030 File-Function: First version, 2015 Number: 2205030 Classification-JEL: G02, G32, G35 Keywords: Dividend, Payout policy, ?Voluntary lower dividend paying?, CEO overconfidence, Market competition Handle: RePEc:sek:iefpro:2205030 Template-Type: ReDIF-Paper 1.0 Author-Name: Takeshi Kobayashi Author-Name-First: Takeshi Author-Name-Last: Kobayashi Author-Email: kobayashi@nucba.ac.jp Author-Workplace-Name: Nagoya University of Commerce and Business Title: Term Structure of Credit Spreads and the Macroeconomy in Japan : A Global Factor Approach Abstract: The purpose of this study is to extract the common factor from individual credit spreads of major Japanese corporate bonds using state-space modeling and examine the predictive contest of the credit spread for the real economy.?Exploring the relationship between credit spreads and future real activity can be motivated by?the "financial accelerator" theory. A key concept in this framework is the external finance premium," the difference between the cost of external funds and the opportunity cost of internal funds due to financial market frictions. A rise in this premium makes outside borrowing more costly, reduces the borrower's spending and production, and consequently hampers aggregate activity.Empirical evidence on the performance of credit spreads as predictors of GDP on the other hand is very scarce. Existing studies use the aggregate credit spread by rating categories in US corporate bond market. However it is difficult to analyze the corporate bond spread by using the aggregated credit spread in Japan the problems lie in the fact that the size of Japanese corporate bond market is so small that the average value of the yield depends mainly on the issuers with the large amount of the issuers such as electric power. To overcome the difficulty I apply Diebold, Li and Yue (2008) method and extract the common factors in the term structure of credit spreads in the Japanese corporate bond yield spreads. The results indicate estimated common factors are important drivers of individual credit spreads. My results also show that credit spreads common factors have a substantial predictive power for future Japanese economic activity. This study makes a contribution to forecasting the future macro variables. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 28-28 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=028&rid=4987 File-Function: First version, 2015 Number: 2204987 Classification-JEL: C58, E47, F47 Keywords: Term Structure Model; Credit Spreads; Global Factor; State-Space Model; Forecasting Macroeconomic Variables Handle: RePEc:sek:iefpro:2204987 Template-Type: ReDIF-Paper 1.0 Author-Name: Kegomoditswe Koitsiwe Author-Name-First: Kegomoditswe Author-Name-Last: Koitsiwe Author-Email: kegomoditswek@yahoo.com Author-Workplace-Name: Akita University Title: Australia Mining Boom and Dutch Disease: Analysis Using VAR Method Abstract: Australia has experienced several episodes of mining boom in its economy. Studies on the impact of mining booms on the economic growth and development indicates that, mining boom either through rise in commodity prices or mining investment tend to result in appreciation of currency thus harming the manufacturing and other sectors in the economy, while the overall gross domestic product increases and this is termed-Dutch Disease. The aim of this work is to investigate the dynamic relationship between mining GDP, manufacturing GDP, service GDP and exchange-rate using vector autoregressive (VAR) approach consisting of Impulse Response Functions (IRFs) and Variance Decomposition (VDCs). Using annual data for the sample period 1975-2013 sourced from Australian Bureau of Statistics, we find mixed evidence presented by the IRFs, while the VDCs reveal that mining sector have impact on the exchange rate hence manufacturing sector. Additionally mining GDP contribute to the variation in the service sector. The study concludes by suggesting promotion of international competitiveness in other sectors such as manufacturing and tourism, to also promote innovation and technical know-how to help combat Dutch Disease effects that can turn mining boom into a resource curse. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 29-29 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=029&rid=4027 File-Function: First version, 2015 Number: 2204027 Classification-JEL: Keywords: Mining boom, Australia, Dutch Disease, VAR analysis Handle: RePEc:sek:iefpro:2204027 Template-Type: ReDIF-Paper 1.0 Author-Name: Ale? Kresta Author-Name-First: Ale? Author-Name-Last: Kresta Author-Email: ales.kresta@vsb.cz Author-Workplace-Name: V?B-TU Ostrava Author-Name: Ji?í Franek Author-Name-First: Ji?í Author-Name-Last: Franek Author-Email: jiri.franek@vsb.cz Author-Workplace-Name: V?B-TU Ostrava Title: Analysis of moving average rules applicability in Czech stock market Abstract: Contemporary state of the art of financial time series modelling is connected to the Efficient Market Hypothesis according to which ?prices fully reflect all available information? and hence future evolutions are unforecastable. In simple terms, EMH states that by predicting the future development we are not able to achieve the profits superior to the profits of the market index when these are adjusted for the risk and transactions costs are deducted. On the other hand, there exist works providing evidences that markets are not efficient. In these works, however, the strategies (or technical trading rules) are demonstrated to provide the extra performance in short term only and then the extra performance vanishes. In the paper we apply moving averages in order to define automated trading system and then analyze its profitability in Czech stock market. The results are statistically tested and statistical inference about the applicability of such an automated trading system in Czech stock market is made. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 30-30 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=030&rid=4900 File-Function: First version, 2015 Number: 2204900 Classification-JEL: G14 Keywords: automated trading system; efficient markets, moving averages; data snooping bias Handle: RePEc:sek:iefpro:2204900 Template-Type: ReDIF-Paper 1.0 Author-Name: ?aneta Lacová Author-Name-First: ?aneta Author-Name-Last: Lacová Author-Email: zaneta.lacova@umb.sk Author-Workplace-Name: Faculty of Economics, Matej Bel University Author-Name: Pavol Krá? Author-Name-First: Pavol Author-Name-Last: Krá? Author-Email: pavol.kral@umb.sk Author-Workplace-Name: Faculty of Economics, Matej Bel University Title: Measurement and characteristics of enterprise inflation expectations in Slovakia Abstract: This article focuses on enterprise inflation expectations in Slovakia. Firstly, we propose a quantitative measure for enterprise inflation expectations based on results derived from the business tendency survey. The probability method (Carlson and Parkin method) is used for this purpose. Secondly, we proceed to test two specific models of enterprise inflation expectations formation in Slovakia ? the rationality assumption model and the hybrid model assuming that inflation expectations can be partially forward-looking and partially backward-looking. Finally, we assess if the transmission of inflation expectations from one sector to another one can exist. Our analysis is conducted for companies operating in industry, construction, retail trade and services. Seasonally adjusted data from January 2002 (beginning of the business tendency surveys in Slovakia) to May 2015 are used, although some tests are done specifically for the post-euro introduction period (from January 2009). Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 31-31 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=031&rid=5102 File-Function: First version, 2015 Number: 2205102 Classification-JEL: C32, E31, E37 Keywords: inflation expectations, business tendency survey, probability method, rationality tests, inflation expectations transmission Handle: RePEc:sek:iefpro:2205102 Template-Type: ReDIF-Paper 1.0 Author-Name: Qiong Li Author-Name-First: Qiong Author-Name-Last: Li Author-Email: liqiong_scu@163.com Author-Workplace-Name: Military Economy Academy Author-Name: Junhua Hu Author-Name-First: Junhua Author-Name-Last: Hu Author-Email: hjh711228@sina.com Author-Workplace-Name: Military Economy Academy Title: Military expenditure and unemployment in China Abstract: The sequential increase in China?s military expenditure has caused a worldwide debate. Aiming at one jurisdiction that the increase in military expenditure helps to stabilize the rising unemployment rate, and knowing the defense-unemployment nexus is barely researched in the context of China, this study manage to verify the validity of this jurisdiction and to plug the vacancy in China with empirical approaches using data from 1991 to 2013. After testing the time-series properties of the four variables (unemployment rate, military expenditure, non- military expenditure and GDP), the ARDL model is applied as the basis to our estimation. To our surprise, the military expenditure pushes up the unemployment rate, whereas the increase in its non-military counterpart presses down the rate. The results manifest that the jurisdiction is devoid of grounds, and, more notably, that the two parts of the China?s government spending boast opposite economic impact. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 32-32 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=032&rid=4413 File-Function: First version, 2015 Number: 2204413 Classification-JEL: Keywords: Military expenditure, Unemployment, ARDL model Handle: RePEc:sek:iefpro:2204413 Template-Type: ReDIF-Paper 1.0 Author-Name: Ömer Limanl? Author-Name-First: Ömer Author-Name-Last: Limanl? Author-Email: omerlimanli@artvin.edu.tr Author-Workplace-Name: Artvin Çoruh Üniversitesi Title: Intertemporal Poverty in Turkey Abstract: Poverty is generally considered as a static fact. Economics literature caters us several poverty indexes that measure aggregate poverty from cross-sectional data sets. These cross-sectional data sets and poverty indexes would not provide any information about the dynamic side of poverty. Some households/people might stay poor longer than others, some households/people might move to certain poverty line from the bottom part of income distribution while the others might stay at the bottom part of income distribution forever. Early poverty indexes are insensitive to these aspects of poverty. Taking into account these all, in this study, we have investigated about the intertemporal poverty in Turkey. We have used newly developed intertemporal poverty indexes and estimated the determinants of staying poor in Turkey by using panel data set Income and Living Conditions Survey for 2006-2009. In accordance with the final results, some economic policy recommendations are given to solve the poverty issue in Turkey. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 33-33 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=033&rid=4834 File-Function: First version, 2015 Number: 2204834 Classification-JEL: Keywords: Turkey, Poverty, Income Distribution Handle: RePEc:sek:iefpro:2204834 Template-Type: ReDIF-Paper 1.0 Author-Name: Dalia M. Ibrahiem Author-Name-First: Dalia Author-Name-Last: M. Ibrahiem Author-Email: daliaharby@feps.edu.eg Author-Workplace-Name: Faculty of Economics and Political Science, Cairo University, Egypt. Title: Renewable electricity consumption , Foreign direct investment and Economic growth in Egypt: An ARDL approach Abstract: This study examines the relationship between renewable electricity consumption, foreign direct investment and economic growth in Egypt. In this regard the study used Auto Regressive Distributed Lag (ARDL) bound testing approach over time series data from the period 1980 to 2011. The empirical findings show that the variables in the study are cointegrated which reveals the long-run relationship between them. Furthermore, renewable electricity consumption and foreign direct investment have a long-run positive effect on economic growth. Granger causality test shows that there exists unidirectional causality running from foreign direct investment to economic growth, in addition there is bidirectional causality between economic growth and renewable electricity consumption. This result supports feedback hypothesis. The stability of model was also checked at the end. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 34-34 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=034&rid=4592 File-Function: First version, 2015 Number: 2204592 Classification-JEL: O10, Q20, F21 Keywords: Economic growth, Renewable electricity consumption, foreign direct investment, Granger causality Handle: RePEc:sek:iefpro:2204592 Template-Type: ReDIF-Paper 1.0 Author-Name: Petr Male?ek Author-Name-First: Petr Author-Name-Last: Male?ek Author-Email: Petr.Malecek@mfcr.cz Author-Workplace-Name: University of Economics, Prague, Faculty of Economics Author-Name: Klára ?ermáková Author-Name-First: Klára Author-Name-Last: ?ermáková Author-Email: klara.cermakova@vse.cz Author-Workplace-Name: University of Economics, Prague, Faculty of Economics Title: In-work poverty in the Czech Republic: identification of the most vulnerable groups Abstract: The Czech Republic has had one of the lowest monetary poverty rates out of the EU countries, which is also a result of a low prevalence of in-work poverty. Despite these rather benign aggregate figures, working poor still represent a significant proportion of persons living in monetary poverty in the Czech Republic. The purpose of this study is then to identify population groups that experience the highest rates of in-work poverty, according to multiple criteria such as age, gender, household type, number and age of children, level of education and the most frequent activity of other members of a household. These calculations were undertaken using EU-SILC microdata. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 35-35 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=035&rid=5008 File-Function: First version, 2015 Number: 2205008 Classification-JEL: I32, D63 Keywords: in-work poverty, household income, EU-SILC Handle: RePEc:sek:iefpro:2205008 Template-Type: ReDIF-Paper 1.0 Author-Name: Andrew Maredza Author-Name-First: Andrew Author-Name-Last: Maredza Author-Email: Andrew.Maredza@nwu.ac.za Author-Workplace-Name: North West University Title: Do Capital Requirements Affect Cost of Intermediation? Evidence from a Panel of South African Banks Abstract: Since the 2007 sub-prime financial crisis, world bank capital ratios have increased. Depending on systemic risk and bank`s idiosyncratic risk assessments, banks in South Africa may be required to maintain capital adequacy ratios above stipulated international minimum levels. In this paper, we investigate the impact of increased bank capital requirements introduced under the Basel Accord framework on the costs of intermediation. We attempt to answer this central question by running panel regressions using 2001 ? 2012 annual bank-level data for ten banks constituting inter alia the four largest South African banks. We conclude that high capital requirements are associated with increased costs of intermediation. Our fixed effects estimations show that a one percent increase in capital requirements lead on average to a range of 12 ? 14 basis points increase in the cost of intermediation during our period of analysis. We also find evidence that the Basel II capital requirements effected from 1 January 2008 contributed to increased cost of intermediation by an average 7 basis points for the period 2008 ? 2012. We therefore caution that while maintaining adequate capital levels is crucial for obvious reasons, there is need for supervisory authorities to ensure that such regulation is effective and well-balanced to guarantee safety and stability of the sector without endangering the ability of the banks to service the economy. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 36-36 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=036&rid=4150 File-Function: First version, 2015 Number: 2204150 Classification-JEL: C33, G21, G28 Keywords: Bank performance, Bank capital, Basel accord, Capital adequacy ratio, Financial regulation, Intermediation costs. Handle: RePEc:sek:iefpro:2204150 Template-Type: ReDIF-Paper 1.0 Author-Name: Chantal Marx Author-Name-First: Chantal Author-Name-Last: Marx Author-Email: jstruweg@uj.ac.za Author-Workplace-Name: FirstRand Bank Author-Name: Jean Struweg Author-Name-First: Jean Author-Name-Last: Struweg Author-Email: jstruweg@uj.ac.za Author-Workplace-Name: University of Johannesburg Title: Stagflation and the South African equity market Abstract: By empirically examining South African equity prices between 1969 and 2013, this study attempts to determine whether or not stagflationary conditions warrant a change in perspective by South African investors. This study considers whether macro conditions really are compromised and explores whether the behaviour of market returns and equity valuations change during periods of stagflation. It is found that the relationship between economic growth and inflation changes during periods of stagflation and that earnings yield models and equity returns models exhibit different behaviour between periods of stagflation and no-stagflation. This study therefore confirms that the South African stock market needs to be approached differently during periods of stagflation. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 37-37 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=037&rid=4597 File-Function: First version, 2015 Number: 2204597 Classification-JEL: E31 Keywords: Stagflation, Equity Markets, South Africa, Valuation, Growth, Inflation Handle: RePEc:sek:iefpro:2204597 Template-Type: ReDIF-Paper 1.0 Author-Name: Jean-Claude Maswana Author-Name-First: Jean-Claude Author-Name-Last: Maswana Author-Email: maswana@mbaib.gsbs.tsukuba.ac.jp Author-Workplace-Name: University of Tsukuba (Graduate School of Business Sciences) Title: Assessing the effects of trade-induced imitation on economic growth in Africa Abstract: Despite the central role imitation has played in development and technology catching-up, it has received only modest attention in explanations of economic growth (Niosi, 2012). Even more worrisome, little empirical research exists on the extent to which such imitation has occurred via trade and how this affects economic growth (Datta and Mohtadi, 2005). The lack of empirical research on this critical issue stems from data constraints associated with the concept and practice of imitation. The study aims at quantifying the effects of trade-induced technology imitation (proxied by the share of imports in the ?easy imitation? SITC category) on economic growth in Africa, using a production function approach in a panel system-GMM estimator. Indicators of trade-induced technology imitation have been built on the Standard International Trade Classification (SITC) using raw data from the United Nations? COMTRADE Statistics. Findings suggest that economic growth tends to be greater in countries with higher ratios of technology imitation, since technology imitation requires creative effort on the part of a firm?s employees and will consequently develop capabilities such as skills and efficiency. Another finding is that the lower the level of GDP per capita, the higher the growth effects of technology imitation relative to other forms of technology progress. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 38-38 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=038&rid=4973 File-Function: First version, 2015 Number: 2204973 Classification-JEL: F14, O40, O11 Keywords: International trade, technology progress, African economic growth Handle: RePEc:sek:iefpro:2204973 Template-Type: ReDIF-Paper 1.0 Author-Name: Simona Mihai Yiannaki Author-Name-First: Simona Author-Name-Last: Mihai Yiannaki Author-Email: S.Mihai@euc.ac.cy Author-Workplace-Name: European University Cyprus Title: ETFs performance Europe- a good start or not? Abstract: Under the premises that the U.S. Exchange Traded Funds (ETFs) hold over 70% of the ETFs? World market, it seems that the European ones have been either under-researched or less demanded. This study provides some insights into the performance of two ETFs hubs, holding over 80% of the European ETFs activity, namely those operating in Luxembourg and Ireland, due also to their tax similarities. Following an updated literature review on the topic, the paper compares these two ETFs hubs by using secondary data publicly available, interpreted under a framework of previously identified performance methods: Tracking Error, Jensen?s alpha and Modigliani- M2 measure of performance. This methodology completes the descriptive statistics analysis, while aiming at answering two hypotheses. The first hypothesis states that the Tracking Error of ETFs compared to their benchmark or market indexes equals zero, which is confirmed by the study. The second hypothesis suggests that these particular ETFs do not present significant alphas, which is partially confirmed. Moreover, the second hypothesis is tested not only against various features of these funds ?benchmarks, but also from risk measurement perspectives, while employing correlation significance between the two countries ETFs. Overall, it appears that from the risk adjusted performance perspective, the ETFs domiciled in Luxembourg outperform the Irish ones, leading also to potential M&As in this industry. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 39-39 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=039&rid=5020 File-Function: First version, 2015 Number: 2205020 Classification-JEL: F37, E44, F00 Keywords: ETFs, Jensen?s alpha, Modigliani measure M2, performance, risk adjusted performance, Tracking Error Handle: RePEc:sek:iefpro:2205020 Template-Type: ReDIF-Paper 1.0 Author-Name: Andrej Miklosik Author-Name-First: Andrej Author-Name-Last: Miklosik Author-Email: miklosik@euba.sk Author-Workplace-Name: University of Economics in Bratislava Title: Improving project management performance through capability maturity measurement Abstract: Nowadays, more and more organisations change their organisational culture towards project orientation. There is a big challenge for each organisation to continually improve its project management processes to increase quality of outputs and satisfaction of customers. Measuring project management implementation maturity can assist in this effort by providing a valuable framework for performance improvement. In this article, we aim to provide results of the research performed in the ICT sector in Slovakia using a standardised methodology. Results of the research show that typically, ICT companies in Slovakia have a standardised project management methodology in place and try to improve their project management processes. However, there is quite a big space for improving their attitude towards continual improvement. In the article, factors of insufficient performance in several areas are being analysed and solutions are being proposed to minimise their impact on project and company outputs. Finally, a framework enabling continual improvement of project management performance through capability maturity measurement is introduced. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 40-40 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=040&rid=4288 File-Function: First version, 2015 Number: 2204288 Classification-JEL: J24, M12, O31 Keywords: Capability maturity, ICT sector, Project, Project management, Project management methodologies Handle: RePEc:sek:iefpro:2204288 Template-Type: ReDIF-Paper 1.0 Author-Name: Andrej Miklosik Author-Name-First: Andrej Author-Name-Last: Miklosik Author-Email: miklosik@euba.sk Author-Workplace-Name: University of Economics in Bratislava Author-Name: Stefan Zak Author-Name-First: Stefan Author-Name-Last: Zak Author-Email: stefan.zak@euba.sk Author-Workplace-Name: University of Economics in Bratislava Title: Framework for effective removal of knowledge management implementation barriers Abstract: This article deals with issues of systemic implementation of knowledge management processes. As the authors prove, this approach enables companies generate a sustainable competitive advantage. Thanks to this, they should strive for increasing the efficiency of knowledge management. When applying these processes, many kinds of barriers tend to arise that prevent effective generation and spread of knowledge. In our research, we have deeply analysed roots of negative occurrences and introduced a framework for removing these obstacles. This framework represents a cyclical process, which consists of five groups of activities. By adopting this framework and a set of typical countermeasures, which have been identified with the use of case studies, the company shall be able to continually improve knowledge management processes and increase their maturity to achieve its objectives. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 41-41 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=041&rid=4290 File-Function: First version, 2015 Number: 2204290 Classification-JEL: O34, O31, M14 Keywords: Competitive advantage, Continual improvement, Implementation barriers, Knowledge, Knowledge management, Knowledge management maturity Handle: RePEc:sek:iefpro:2204290 Template-Type: ReDIF-Paper 1.0 Author-Name: Danijela Milos Sprcic Author-Name-First: Danijela Author-Name-Last: Milos Sprcic Author-Email: dmilos@efzg.hr Author-Workplace-Name: University of Zagreb, Faculty of Economics and Business Author-Name: Antonija Ko?ul Author-Name-First: Antonija Author-Name-Last: Ko?ul Author-Email: dmilos1@efzg.hr Author-Workplace-Name: Faculty of Economics and Business, University of Zagreb Author-Name: Ena Pecina Author-Name-First: Ena Author-Name-Last: Pecina Author-Email: dmilos2@efzg.hr Author-Workplace-Name: Faculty of Economics and Business, University of Zagreb Title: STATE AND PERSPECTIVES OF ENTERPRISE RISK MANAGEMENT SYSTEM DEVELOPMENT- THE CASE OF CROATIAN COMPANIES Abstract: Enterprise Risk Management (ERM) encompasses activities and strategies which enable the company to identify, measure, reduce, or exploit, as well as to control and monitor the exposure to various types of corporate risks ? strategic, financial, operational, and reporting, as well as compliance risks for the purpose of increasing the organization?s short and long-term value to its stakeholders. The primary goal of ERM is to increase the likelihood that an organization will achieve its objectives, meaning that ERM should be created and implemented with the aim to protect and create shareholder value. For ERM to bring benefits, as it is well-explained in the existing ERM literature (e.g. see Beasley et al., 2005; Cumming and Hirtle, 2001; Lam, 2001, 2003; Liebenberg et and Hoyt, 2003; Meulbroek, 2002; Nocco and Stulz 2006), it should be integrated in the most important business processes, such as strategic management, strategic planning, as well as in the finance and investment decisions in order to ensure the consistent evaluation and management of risks that arise from business initiatives and plans. This paper is both conceptual and empirical. It is aiming to (1) develop ERM Index that measures quality of ERM process within the company, (2) to explore level of ERM development in listed Croatian companies by employing ERM Index (3) to explore determinants of risk management system development in listed Croatian companies (4) to explore whether risk management decisions have different rationales in Croatian companies than among their western counterparts. Different theories of risk management derived from capital market imperfections are used to argue for the relevance of corporate risk management function. Empirical research was conducted on the listed Croatian non-financial companies. Data were collected from two sources; annual reports and notes to the financial statements and survey. Research results have revealed low levels of ERM development in listed Croatian companies. Managers are focused on financial and operative risk management, while strategic and other risks have been neglected. Regression analysis has indicated somewhat unexpected but important conclusion - the explored risk management rationales have weak predictive power in explaining corporate risk management decisions in Croatian companies. The level or risk management system development is dependent only on the size of the company and value of the growth options. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 42-42 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=042&rid=5039 File-Function: First version, 2015 Number: 2205039 Classification-JEL: G30, G39 Keywords: Enterprise Risk Management, ERM index, Determinants of ERM, Croatian companies Handle: RePEc:sek:iefpro:2205039 Template-Type: ReDIF-Paper 1.0 Author-Name: Franti?ek Ochrana Author-Name-First: Franti?ek Author-Name-Last: Ochrana Author-Email: frantisek.ochrana@fsv.cuni.cz Author-Workplace-Name: Center for Social and Economic Strategies, Faculty of Social Sciences, Charles University Author-Name: Michal Pla?ek Author-Name-First: Michal Author-Name-Last: Pla?ek Author-Email: placek@svse.cz Author-Workplace-Name: Private College of Economic Studies Znojmo Author-Name: Milan P??ek Author-Name-First: Milan Author-Name-Last: P??ek Author-Email: milan.pucek@seznam.cz Author-Workplace-Name: The College of Regional Development Title: Reasons for the Infectiveness of the Czech State Bureaucracy: Myths and Reality Abstract: When evaluating the level of bureaucracy and efficiency of the government of the Czech Republic, both are seen to lag behind more developed Western countries. Causes of this condition are seen by many as being the advanced age of officials, their lack of education and the profound influence of politicians on the performance of the bureaucracy. The analysis is based on our own research of the ministerial staff as conducted in 2013 (N = 1,351). All 14 ministries of the Czech Republic were invited to participate. No similar empirical analysis of the Czech Republic?s ministerial staff had yet been undertaken. This is also one of the epistemological reasons why myths prevail among the general public about staff of ministries. The analysis shows that ministerial officials are, in fact, a predominately university-educated, and the vast majority of them are not under political pressure. The overall median age of employees in all ministries is 42 years old. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 43-43 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=043&rid=4886 File-Function: First version, 2015 Number: 2204886 Classification-JEL: D73, D78, D00 Keywords: Czech state bureaucracy; infectiveness; age structure; education level; political interest Handle: RePEc:sek:iefpro:2204886 Template-Type: ReDIF-Paper 1.0 Author-Name: Franti?ek Ochrana Author-Name-First: Franti?ek Author-Name-Last: Ochrana Author-Email: frantisek.ochrana@fsv.cuni.cz Author-Workplace-Name: Center for Social and EconomicStrategies, Faculty of Social Sciences, Charles University Author-Name: Milan P??ek Author-Name-First: Milan Author-Name-Last: P??ek Author-Email: milan.pucek@seznam.cz Author-Workplace-Name: The College of Regional Development Author-Name: Michal Pla?ek Author-Name-First: Michal Author-Name-Last: Pla?ek Author-Email: placek@svse.cz Author-Workplace-Name: Private College of Economic Studies Znojmo Title: The Use of FMEA for the analysis of corruption: A Case Study from Bulgaria Abstract: The article is based on the analysis of the microeconomic foundations of corruption (especially principal ?agent theory) and is dedicated to the use of FMEA for the risk analysis of corruption in public administration with a focus on cities. The study proposes how to evaluate corruption risks based on modifications to the standard methods of FMEA. The proposed procedure is verified on the case of a municipal procurement in Bulgaria. Unlike previous researches dedicated to this topic, which were focused more on descriptive and qualitative evaluation of corruption, we show that it is possible to quantify the risk of corruption in the public sector. But we still have to take into account the limitations of this methods. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 44-44 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=044&rid=4911 File-Function: First version, 2015 Number: 2204911 Classification-JEL: D73, D78, D00 Keywords: Corruption, Bulgaria, Risk of Corruption, Method of FMEA Handle: RePEc:sek:iefpro:2204911 Template-Type: ReDIF-Paper 1.0 Author-Name: Eli?ka Orlická Author-Name-First: Eli?ka Author-Name-Last: Orlická Author-Email: erlee162@seznam.cz Author-Workplace-Name: University of Economics, Prague Title: Impact of population ageing and elderly poverty on macroeconomic aggregates Abstract: The paper examines the impact of population ageing on the most important macroeconomic aggregates and internal economic growth. I study elderly poverty aspect connected with demographic changes and its possible influence on saving rate, government expenditures and other variables. The main target is to examine the impact of population growth rate and elderly poverty rate changes on these variables with respect to the population ageing. I suppose, as well as Robert Sollow did, that population growth should lead to the increase in the available labour forces and successively to the growth of capital, consumption and GDP. Earlier research has demonstrated that demographic changes do influence the economy. Therefore, I suspect increasing elderly population and its socio-economic situation could in the future markedly influence economical development of ageing countries. I will use basic assumptions of Life cycle model of overlapping generation to examine above-mentioned influences of ageing and poverty. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 45-45 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=045&rid=5240 File-Function: First version, 2015 Number: 2205240 Classification-JEL: J11 Keywords: population ageing, elderly poverty, economic growth, saving rate, consumption, labour force, government expenditures Handle: RePEc:sek:iefpro:2205240 Template-Type: ReDIF-Paper 1.0 Author-Name: Hilal Hümeyra Özsu Author-Name-First: Hilal Hümeyra Author-Name-Last: Özsu Author-Email: 35.hilal@gmail.com Author-Workplace-Name: Gediz University Title: Empirical Analysis of Herd Behavior in Borsa Istanbul Abstract: Behavioral finance is a field that has grown toward the end of 20th century as a reaction to the efficient market hypothesis. This new field studies the effect of investor psychology on financial decisions and explains stock market anomalies in financial markets. Herding is such an anomaly that is defined as mimicking others? decisions or market trend.The aim of the study is to detect whether there is herding or not in Borsa Istanbul. To test the existence of herding, stock returns traded on Borsa Istanbul and BIST 100 Index as market indicator are used. Data covers daily returns from 1988 to 2014 and intraday returns from 1995 to 2014. Herd behavior is analyzed based on the methodology of cross-sectional dispersion of the stocks developed by Christie and Huang (1995) and Chang, Cheng and Khorana (2000). The results indicate that there is no herding for both up and down markets for daily and intraday intervals in Borsa Istanbul. However, tendency of herding is higher in up markets. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 46-46 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=046&rid=5023 File-Function: First version, 2015 Number: 2205023 Classification-JEL: G02, G14 Keywords: Behavioral Finance, Herd Behavior, Borsa Istanbul, Cross-Sectional Dispersion. Handle: RePEc:sek:iefpro:2205023 Template-Type: ReDIF-Paper 1.0 Author-Name: Ahmet Perilioglu Author-Name-First: Ahmet Author-Name-Last: Perilioglu Author-Email: ahmetperilioglu@gmail.com Author-Workplace-Name: Ahmet Perilioglu Title: Conditional Sovereign Transition Probability Matrices Abstract: Increase of credit derivative transaction volumes and credit related exposures in trading books, contingent effect of the recent financial crisis along with insufficient measure of so called Value At Risk calculations raised new methodologies for credit risk models as well as input parameters such as transition probability matrices. Conditional transition probability matrices are one of the main input of the credit risk models and it is required to estimate for short liquidity horizons. This study presents conditional transition probability matrices for sovereigns using factor modelling approaches under various symmetric and asymmetric distribution assumptions. Asymmetric models are found to provide superior results over the symmetric models for both in sample and out of sample results. Furthermore, the proposed methodology is applicable for quarterly sovereign transitions where rating movements are not observed frequently. Finally the model incorporates the dependence of the business cycles to the estimated credit cycle indices using main macroeconomic factors. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 47-47 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=047&rid=4981 File-Function: First version, 2015 Number: 2204981 Classification-JEL: G10, G15, G20 Keywords: Transition probability; Credit rating; Credit risk; Sovereign debts;Business Cycles Handle: RePEc:sek:iefpro:2204981 Template-Type: ReDIF-Paper 1.0 Author-Name: Mariana Pova?anová Author-Name-First: Mariana Author-Name-Last: Pova?anová Author-Email: mariana.povazanova@umb.sk Author-Workplace-Name: Ekonomická fakulta UMB Author-Name: Anna Vallu?ová Author-Name-First: Anna Author-Name-Last: Vallu?ová Author-Email: anna.vallusova@umb.sk Author-Workplace-Name: Ekonomická fakulta UMB Author-Name: Mária Uramová Author-Name-First: Mária Author-Name-Last: Uramová Author-Email: maria.uramova@umb.sk Author-Workplace-Name: Ekonomická fakulta UMB Author-Name: Alena Ka??áková Author-Name-First: Alena Author-Name-Last: Ka??áková Author-Email: alena.kascakova@umb.sk Author-Workplace-Name: Ekonomická fakulta UMB Title: Assigning Monetary Values to Unpaid Work in Slovakia Abstract: The article deals with unpaid work in Slovakia. Input-based approaches are used to assign a monetary value to unpaid work activities in Slovakia using the data from 2012 nation ? wide survey conducted by the Faculty of Economics, Matej Bel University, Slovakia. This nation-wide survey contains representative data about 13 individual unpaid work activities based on Eurostat methodology. In this paper after taking into account the specific conditions of Slovakia, two input-based market replacement cost approaches, namely generalist and specialist are applied to calculate the monetary value of unpaid work. The results show that, depending on the chosen wage concept and activities, the monetary value of unpaid work ranges from approximately 18 % to 25 % of GDP in Slovakia. The paper concludes that in comparison with the other traditionally market economies the value is lower due to lower level of wages of corresponding market substitutes. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 48-48 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=048&rid=5077 File-Function: First version, 2015 Number: 2205077 Classification-JEL: D13, E26 Keywords: unpaid work; monetary value of unpaid work; input-based methods Handle: RePEc:sek:iefpro:2205077 Template-Type: ReDIF-Paper 1.0 Author-Name: Bijen Ramdas Author-Name-First: Bijen Author-Name-Last: Ramdas Author-Email: bramdas@gmail.com Author-Workplace-Name: University of Joannesburg Author-Name: Reinette van Gaalen Author-Name-First: Reinette Author-Name-Last: van Gaalen Author-Email: rvangaalen@uj.ac.za Author-Workplace-Name: University of Johannesburg Author-Name: Jordy Bolton Author-Name-First: Jordy Author-Name-Last: Bolton Author-Email: jbolton@uj.ac.za Author-Workplace-Name: University of Joannesburg Title: The announcement impact of hosting the FIFA World Cup on host country stock markets Abstract: This study is an investigation of the impact of hosting the FIFA World Cup soccer tournament on the stock market of the host country when the tournament is announced. The sample under examination for this study consists of the 5 FIFA World Cups, between the period 1994 and 2010. Additional factors to be assessed include investigating whether stock markets react efficiently or show a positive reaction to hosting the FIFA World Cup. An event study research methodology is used to investigate the impact of hosting the FIFA World Cup on the stock exchange of the host country, by examining the movement of stock market returns across various event windows during the announcement and tournament starting date stages. It is found that country stock markets react differently to the announcement of the tournament. For instance South Africa appears to show a positive trend in stock returns at the tournament announcement date, while Japan shows a decline in daily stock returns a day after the announcement of the tournament. It is found that for the tournament announcement, most countries show insignificant negative cumulative abnormal stock returns for different event windows. There are however few instances where country stock markets do show positive cumulative abnormal stock returns, with statistical significant results. The implication of this study is that FIFA World Cups have varied impacts on host country stock markets. This study contributes to the understanding of the impacts of mega sporting events on host country stock markets, with specific reference to the FIFA World Cup. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 49-49 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=049&rid=4970 File-Function: First version, 2015 Number: 2204970 Classification-JEL: G00 Keywords: FIFA World Cup;announcement;mega sporting events, stock market reations Handle: RePEc:sek:iefpro:2204970 Template-Type: ReDIF-Paper 1.0 Author-Name: Tuncay SERDARO?LU Author-Name-First: Tuncay Author-Name-Last: SERDARO?LU Author-Email: tserdaroglu@dpt.gov.tr Author-Workplace-Name: T.R. Ministry of Development Title: Financial openness and Total Factor Productivity in Turkey Abstract: Financial openness, which can be defined as integration into international financial markets, can cause significant changes in countries? production structures and in the methods of doing business through the quantity and quality of international capital flows. The aim of this study is to analyze the effects of financial openness on total factor productivity as a long-term structural indicator in Turkey. Empirical results reveal that the effect of financial openness on total factor productivity is significant and positive together with the other determinants of total factor productivity specified as human capital, innovation, foreign direct investment, financial development, macroeconomic stability and governance indicators in our sample period. However, the relationship between financial openness and total factor productivity presents different pictures when sub periods are taken into consideration. The results of the analysis point out that structural policies addressing to total factor productivity determinants are likely to increase the long term potential growth rate, the development level and the welfare of Turkey. Therefore, efforts should be made to enhance the capability and extent of exploiting the advantages of financial openness by means of comprehensive and complementary policies at macro level. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 50-50 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=050&rid=4964 File-Function: First version, 2015 Number: 2204964 Classification-JEL: F62, O40, O11 Keywords: Financial Openness; Total Factor Productivity; International Capital Flows; Turkish Economy. Handle: RePEc:sek:iefpro:2204964 Template-Type: ReDIF-Paper 1.0 Author-Name: Munacinga Simatele Author-Name-First: Munacinga Author-Name-Last: Simatele Author-Email: msimatele@ufh.ac.za Author-Workplace-Name: University of Fort Hare, Nedbank Chair, Economics department Title: Market Structure and competition in the South African banking sector Abstract: This paper examines the relationship between bank structure, performance and competition in the South African banking industry. South Africa has a very concentrated banking industry with a C4 concentration ratio of over 80%. The structure conduct performance hypothesis would suggest that competition in the sector would therefore be very low. We apply the Panzar-Rosse approach to bank level data for the period 1997 to 2014 to assess the competitive environment in the South African banking industry. We estimate a revenue equation to obtain the H statistic. Changes in competition over the sample period are explored by estimating a time varying Panzar-Rosse H statistic. This also allows us to assume a gradual change in bank competition rather than a static equilibrium. We find that competition has increased over time. This result is consistent no matter how the time variable enters the revenue equation. The estimated H statistic suggests that banks operate in a monopolistically competitive market structure. Bank specific factors are generally consistent across alternative measures and in line with expectations. We also find that the increased concentration arising from the currency crisis in 2001/02 does not reduce the level of competition. This result is somewhat puzzling because the industry exhibits relatively high transactions fees in the larger banks. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 51-51 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=051&rid=4816 File-Function: First version, 2015 Number: 2204816 Classification-JEL: G21, L10 Keywords: bank performance, competition, Panzar-Rosse, South Africa Handle: RePEc:sek:iefpro:2204816 Template-Type: ReDIF-Paper 1.0 Author-Name: Viktorija ?ipilova Author-Name-First: Viktorija Author-Name-Last: ?ipilova Author-Email: sipilova.viktorija@inbox.lv Author-Workplace-Name: The Institute of Humanities and Social Sciences, Daugavpils University Title: When regional growth does not benefit from high-tech specialization? Explaining the experience of Latvian regions Abstract: Changes in technological structure of manufacturing towards high-tech sectors do not automatically lead to improvements in labour productivity. This can be as a trap for economically less developed regions, which tend to increase a presence of high-tech sectors in manufacturing structure, but as a result are not able to reach desirable improvements in economic growth. Using structural change and specialization indices and shift-share analysis technique, this paper analyses effect of structural changes in manufacturing sector on economic growth in Latvian regions. Empirical research findings highlight that those Latvian regions, which make a choice to have a technologically more developed manufacturing structure and pay less attention to the improvements of labour productivity turn out to be in the situation, when strengthening of specialization in high-tech sectors does not reflect in regional economic growth performance improvements. This, for example, is the case of the Latvian region with the lowest GDP per capita. The author finds out that changes of technological structure of manufacturing in favour to high-tech sectors without accompany of labour productivity growth do not provide desirable contribution in the improvements of economic growth performance and technologically less intensive sectors with higher labour productivity can contribute to the economic growth in bigger extent at this stage. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 52-52 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=052&rid=4706 File-Function: First version, 2015 Number: 2204706 Classification-JEL: O11, R11, R58 Keywords: technological structure of manufacturing, labour productivity, structural changes, specialization, regional economic growth, Latvia Handle: RePEc:sek:iefpro:2204706 Template-Type: ReDIF-Paper 1.0 Author-Name: ?udomír ?lahor Author-Name-First: ?udomír Author-Name-Last: ?lahor Author-Email: Ludomir.Slahor@fm.uniba.sk Author-Workplace-Name: Faculty of management, Comenius University Author-Name: ?tefan Rychtárik Author-Name-First: ?tefan Author-Name-Last: Rychtárik Author-Email: stevo.rychtarik@gmail.com Author-Workplace-Name: National Bank of Slovakia Author-Name: Matú? Bandúr Author-Name-First: Matú? Author-Name-Last: Bandúr Author-Email: matus.bandur@gmail.com Author-Workplace-Name: Faculty of management, Comenius University Title: Financial stability considerations for Slovakia in the context of ECB monetary stance Abstract: The Euro Area monetary policy has been recently facing many challenges. To meet its objectives related to the price stability, the ECB has been conducting an accommodative policy including several extraordinary measures. Apart from improvements in inflationary expectations, these moves, however, also lead to very low interest rates and flattening of the yield curve. In our work, we examine potential negative impacts of this environment on European banks with particular focus on the Slovak banking sector via narrowing of interest margins and growing indebtedness of households. We show this impact to be asymmetrical within the Euro Area mostly due to divergence of banks? business models. These results are consequently interpreted in the context of banks?s lending policies and capital buffers. Results of our work underline the importance of active macro-prudential policy conducted at national level aimed at offsetting unintended side effects of current monetary policy in the Euro Area. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 53-53 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=053&rid=4962 File-Function: First version, 2015 Number: 2204962 Classification-JEL: G21 Keywords: Monetary operations; Financial stability; Banking sector Handle: RePEc:sek:iefpro:2204962 Template-Type: ReDIF-Paper 1.0 Author-Name: Petr ?pecián Author-Name-First: Petr Author-Name-Last: ?pecián Author-Email: specian.p@gmail.com Author-Workplace-Name: University of Economics, Prague Author-Name: Jitka Melzochová Author-Name-First: Jitka Author-Name-Last: Melzochová Author-Email: melzochova@gmail.com Author-Workplace-Name: University of Economics, Prague Title: An Estimate of the Basic Income Costs: Case of the Czech Republic Abstract: The paper examines existing basic income proposals and estimates the costs of their implementation within the Czech Republic. The specific virtues and vices of a basic income guarantee compared to existing social security systems are discussed and the specific context of the Czech Republic considered. The paper provides elementary cost estimates of application of basic income schemes that were proposed originally for other European countries, Spain and Ireland. The cost of the present social security system as well as an extreme ?libertarian? basic income scheme provide benchmarks for the preliminary evaluation of the financial feasibility of basic income for the Czech Republic. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 54-54 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=054&rid=4982 File-Function: First version, 2015 Number: 2204982 Classification-JEL: D30, H50 Keywords: Basic income, the Czech Republic, social security, cost-benefit analysis Handle: RePEc:sek:iefpro:2204982 Template-Type: ReDIF-Paper 1.0 Author-Name: Luqman Adedamola Sulaiman Author-Name-First: Luqman Adedamola Author-Name-Last: Sulaiman Author-Email: sulaimanla@ukzn.ac.za Author-Workplace-Name: Universty of KwaZulu-Natal Title: Estimating the Critical Bands for Nigeria?s Crude Oil Price and Production: Evidence from GARCH Models and Interval Adjustments Abstract: Answers to the price and production range and minimum benchmark required for Nigeria?s 2015 budget, considering the short, medium and long-term breaks that could emanate from the recent conundrums, are provided. Following trend analyses, a pattern recognition procedure when series are known, GARCH modeling, and the confidence interval approach, it was found that the crude oil price benchmark for the country can be revised downward and the production benchmark can be revised upward to reduce the effect of geopolitics and upside risks amidst the prevailing challenges in the international market. The minimum benchmark varies according to the periods. Longer term necessitates rising oil production, which suggests that a longer duration of oil price falls, lowers uncertainty surrounding it - as the expectation of rebound will set in, coupled with behavioral adjustments. The crude oil price (Brent) will be near US$40 per barrel for the next 90 days. It is concluded that Nigeria should not be concerned about revising the benchmark of oil production volume downward and should also bear in mind that the crude oil price will stabilize for a longer period - i.e. three months at around US$40-$67 per barrel. This, however, accommodates raising volatility and an international supply glut. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 55-55 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=055&rid=4867 File-Function: First version, 2015 Number: 2204867 Classification-JEL: Q43, Q47, Q41 Keywords: Crude Oil Price and Production, Pattern Recognition, GARCH model, MTEF/FSP Report, Nigeria Handle: RePEc:sek:iefpro:2204867 Template-Type: ReDIF-Paper 1.0 Author-Name: Dr. Ramna Thakur Author-Name-First: Dr. Ramna Author-Name-Last: Thakur Author-Email: ramna@iitmandi.ac.in Author-Workplace-Name: Indian Institute of Technology Mandi Author-Name: Shivendra Sangar Author-Name-First: Shivendra Author-Name-Last: Sangar Author-Email: shivendra_sangar@students.iitmandi.ac.in Author-Workplace-Name: Indian Instituteof Technology Mandi Title: Economic Growth and Inequality in the Western Indian Himalayan Region Abstract: In this study an attempt is made to support the fact that focus on numerical growth is not sufficient unless it is joined with the equality in the quality of human life. This study has been conducted in the Indian Himalayan region. Himalayan region is a hilly and mountainous region. This region is generally considered underdeveloped in the country though rich in life giving resources because of different agro-climatic condition and diverse ecosystems. Due to geographical barriers, remoteness and sparse population, this area reduces its political influence and remains always away from the eyes of policy makers. The technologies that serve other parts of the country become unviable in this region due to its terrain and remoteness. This study is based on firsthand information. Inequality in the consumption expenditure of food, non-food and income has been calculated to provide the factual position of the problem. A sample of 549 households of different categories viz; general category, scheduled caste, scheduled tribe & other backward classes consisting 2,655 persons has been selected by taking into consideration the different social stratification. This study shows that, though, the Himalayan region is developing at a slow pace but inequality is increasing at a higher rate. Results of this study also support the fact that both percentage of poor and incidence of inequality is higher in this region as compared to the national average. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 56-56 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=056&rid=5003 File-Function: First version, 2015 Number: 2205003 Classification-JEL: D63, D63, D63 Keywords: Coefficient; Expenditure; Food; Income, Inequality; Non-Food; Poverty.Abbreviations: CV-Coefficient of Variance, GC-General Category, IHR-Indian Himalayan Region, MMRP-Modified Mixed Reference Period, NSSO-National Survey Organization, OBCs-Other Backward Classes, RMD-Relative Mean Deviation, SCs-Scheduled Castes, SDL-Standard Deviation of Logarithm, STs-Scheduled Tribes. Handle: RePEc:sek:iefpro:2205003 Template-Type: ReDIF-Paper 1.0 Author-Name: Marina Tkalec Author-Name-First: Marina Author-Name-Last: Tkalec Author-Email: mtkalec@eizg.hr Author-Workplace-Name: Institute of Economics, Zagreb Title: TIME-VARYING INTEGRATION IN EUROPEAN POST-TRANSITION SOVEREIGN BOND MARKETS Abstract: The aim of this paper is to study time-varying integration between European post-transition government bond markets and eurozone bond market. We follow the empirical approach defined in Bekaert and Harvey (1995) seminal paper, which enables direct estimation of the time-varying degree of financial markets integration. We thus investigate bond markets of eight new member states of EU and one non-EU member (Ukraine). The result of our empirical examination is a time-varying parameter of integration that is driven by a set of macroeconomic instruments defined in order to represent the intensity of real economic integration of analysed countries into the eurozone, and their fiscal stances. Our results suggest integration varies with respect to economic development, as economically more advanced countries demonstrate a higher level of integration in the observed period. Moreover, we observe that integration decreased with the financial crisis, but it levelled off relatively swiftly afterwards. Depending on a country, EU joining either exerted positive boost on sovereign bond integration, or was neutral with regards to integration. We also show that macroeconomic performance relative to the eurozone benchmark and fiscal stance matter greatly for bond market integration in all countries under examination. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 57-57 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=057&rid=4231 File-Function: First version, 2015 Number: 2204231 Classification-JEL: F36, G15, E44 Keywords: European post-transition countries, sovereign securities markets, bond market integration Handle: RePEc:sek:iefpro:2204231 Template-Type: ReDIF-Paper 1.0 Author-Name: József Varga Author-Name-First: József Author-Name-Last: Varga Author-Email: varga.jozsef@ke.hu Author-Workplace-Name: Kaposvár University Author-Name: Zoltán Sipiczki Author-Name-First: Zoltán Author-Name-Last: Sipiczki Author-Email: sipiczki.zoltan@ke.hu Author-Workplace-Name: Kaposvár University Title: The financing of the agricultural enterprises in Hungary between 2008 and 2011 Abstract: Mainly due to the cyclicality in the agriculture and in farming the financing of the business means a remarkable challenge in this sector. Our goal is to be able to take stock the agricultural producers? foreign liabilities besides their own capital appropriate the balance sheets, to analyse the technological and business conceptions connecting to a variety of financing products in the agricultural financing and to develop effective models.We can calculate on liabilities of 900-1000 billion HUF in the agriculture in 2011. The most important item is the direct bank loan (short and long term). The second largest item is the accounts payable. Another large items are the other short term liabilities and the integrator loan which is estimated at 100-150 billion HUF.It depends on the market position of the company's in which measure it can use the opportunity of the accounts payable. If the firm is able to encash its customers? liabilities effectively and with a short deadline, while it is able to negotiate a longer payment term from its suppliers, it can significantly reduce or even eliminate the need for additional funding. However, if through its weak market position it?s facing with tight deadlines, it is no matter, how disciplined it is and how good course of business it has: additional funding will be necessary for it. In addition funding with accounts payable is to be said as the cheapest solution, so the weak market position also means more expensive financing.In the Hungarian agricultural sector it is typical mainly for medium-sized and large companies that they are able to dictate the terms of payment, while the micro and small enterprises the accounts payable as a financing alternative is less dominant. Therefore, our objective was to develop an agricultural structural subdivision and an effective financing model for each sector. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 58-58 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=058&rid=4355 File-Function: First version, 2015 Number: 2204355 Classification-JEL: G20 Keywords: Banking, agricultural finance Handle: RePEc:sek:iefpro:2204355 Template-Type: ReDIF-Paper 1.0 Author-Name: Miron Vasile Cristian Ioachim Author-Name-First: Miron Author-Name-Last: Vasile Cristian Ioachim Author-Email: cristi_mir89@yahoo.com Author-Workplace-Name: ?1 Decembrie 1918? University of Alba Iulia Title: Financial Balance ? An Important Objective for the Stakeholders in Romanian?s Energy Sector Abstract: The annual financial statements represent the main point of view through which the stakeholders assess an entity?s financial position. An important aspect followed by the stakeholders is the existence of a solid financial position, which is manifested through a financial balance. The present study seeks to analyze the financial position of the Romanian entities that are representative to the energy sector, based on specific indicators of appreciating the financial balance. Within the analysis, indicators such as net situation, working capital, the need of working capital, net treasury and many others were taken into account.Also, within the study we tried to highlight the main differences between the analysis of the financial balance based on the regular balance sheet and its analysis based on the financial balance sheet. Thereby, one of the main objectives of this study is to present the main advantages that the financial balance sheet brings to the analysis of the financial balance and raising the awareness of the stakeholders towards this approach.The results of the study have shown significant differences between the analyzes made on different types of balance sheets. These results could open new research directions, such as more detailed analyzes based on the financial balance sheet, but could also raise the awareness of the stakeholders (except the governments) about the fact that the balance sheet, in its present form (form which is imposed by the law), has some boundaries, and for a meaningful analysis of the financial position (financial balance) it is often necessary to resort to derivative forms of the balance sheet. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 59-59 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=059&rid=5013 File-Function: First version, 2015 Number: 2205013 Classification-JEL: M41, M49, M20 Keywords: Financial Balance Sheet, Financial balance, Net situation, Working capital, The need of working capital, Net treasury. Handle: RePEc:sek:iefpro:2205013 Template-Type: ReDIF-Paper 1.0 Author-Name: Ognjen Vukovic Author-Name-First: Ognjen Author-Name-Last: Vukovic Author-Email: ognjen.vukovic@uni.li Author-Workplace-Name: University of Liechtenstein Title: Analysing bank real estate portfolio management by using impulse response function, Mahalanobis distance and financial turbulence Abstract: During the financial crisis that had its peak a few years ago, one of the interesting questions was raised. Does there exist a possibility that the aforementioned crisis will repeat. As real estate management took one of the key roles in the post-crisis period, it was expected that the lessons that crisis brought with itself, were learnt. Despite lagging effect that the aforementioned turbulence had on Western Europe, real estate prices kept raising and exhibited accelerating growth. This paper will try to address the aforementioned problem by analysing real estate portfolio management by using impulse response function. In order to analyse banking portfolio management, it was assumed that state of the art methods are used. Portfolio management is modelled by using Mahalanobis distance and financial turbulence index was analysed. As financial turbulence index was calculated for the total real estate share prices by taking the data from St. Louis FED database, interesting results were obtained. It was proved that real estate prices kept rising in Germany, Austria and Switzerland despite the warning foreshadowed by the financial crisis. Financial turbulence analysis pointed out that the volatility of real estate prices in the aforementioned countries was highest in the mid-2011 and it still has a high value. This indicates that real estate price bubble is a real threat to the whole financial system of Western Europe. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 60-60 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=060&rid=4034 File-Function: First version, 2015 Number: 2204034 Classification-JEL: G00, G01, F00 Keywords: Mahalanobis distance, real estate, portfolio management, financial turbulence, impulse response function, Germany, Switzerland, Austria Handle: RePEc:sek:iefpro:2204034 Template-Type: ReDIF-Paper 1.0 Author-Name: Ahmed Soliman Wafi Author-Name-First: Ahmed Soliman Author-Name-Last: Wafi Author-Email: as.wafi@foc.cu.edu.eg Author-Workplace-Name: Faculty of Commerce - Cairo University Author-Name: Hassan Hassan Author-Name-First: Hassan Author-Name-Last: Hassan Author-Email: h.i.hassan@foc.cu.edu.eg Author-Workplace-Name: Faculty of Commerce - Cairo University Author-Name: Adel Mabrouk Author-Name-First: Adel Author-Name-Last: Mabrouk Author-Email: prof.adelmabrouk@gmail.com Author-Workplace-Name: Faculty of Commerce - Cairo University Title: Fundamental Analysis Models in Financial Markets ? Review Study Abstract: The purpose of this paper is an attempt to reach a better stock valuation model of the Fundamental Analysis Approach, by reviewing the theoretical foundations and literature reviews.By reviewing the theoretical foundations for each model of the fundamental analysis models, and sequentially beginning of the Discounted Dividend Model (DDM), through a Multiplier Models, and finally the Discounted Cash Flow Model (DCFM), we find that all these models have strengths, despite the lack of accuracy, because it is required financial efficiency market. Recently Ohlson (1995) stated the simulated benefit in the formulation of the Residual Income Model (RIM). The Ohlson Model identifies the relationship between stock values and accounting variables.By reviewing the literature reviews, in financial markets, we conclude that the best model that can be relied upon to predict stock value, that proved credibility in both emerging and developed markets, is Residual Income Model (RIM), which doesn't require financial efficiency for its application. Length: 1 page Creation-Date: 2015-09 Publication-Status: Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 61-61 File-URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=061&rid=3827 File-Function: First version, 2015 Number: 2203827 Classification-JEL: G10, G19 Keywords: Fundamental Analysis, Discounted Dividend Models, Multipliers Models, Discounted Cash Flow Model, Residual Income Model. Handle: RePEc:sek:iefpro:2203827