The Cost of Financing to the Firm in Foreign Exchange: Some Empirical Results and Implications

1981 ◽  
pp. 204-226
Author(s):  
Harald Burmeister
Keyword(s):  
Foreign Exchange ◽  
Empirical Results ◽  
The Cost

scholarly journals KEUNGGULAN KOMPARATIF USAHATANI PADI PADA BERBAGAI POLA AGROEKOSISTEM DI KABUPATEN MEMPAWAH

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Adi Suyatno, Masyhuri, Jangkung Handoyo Mulyo, Irham
Keyword(s):  
International Trade ◽  
Foreign Exchange ◽  
Comparative Advantage ◽  
Survey Method ◽  
Dry Land ◽  
West Kalimantan ◽  
Average Value ◽  
Resource Cost ◽  
The Cost ◽  
Domestic Resource

This research was conducted in the District of Mempawah, which is in the region of West Kalimantan and borders with neighboring countries (Malaysia), which of course has special characteristics, especially from the aspect of international trade, so that the comparative advantage of paddy associated with aspects of international trade, need to be examined. This study used a survey method, with 183 sample, where the number of samples of each pattern of agro-ecosystem isirrigation pattern has 55 samples, tidal patterns has 42 samples, rainfedpatterns has46samples and dry land patterns has 40 samples. The method of analysis in this study used the concept of DRC (Domestic Resource Cost). The results showed comparative advantage as indicated by the average value of the DRC is Rp 2,429, - This value indicates that the cost of domestic resources for the value to produce rice, can save foreign exchange worth US $ 1. DRCR average of 0, 24 which means rice farming has a comparative advantage (<1). Irrigation schemes have the highest levels of comparative advantage and the dry land pattern has the lowest level of comparative advantage. DRCR shows that rice is still cheaper economically to be produced in the country compared with imports from other countries. The implications of this conclusion is that the spur policy (increase) in rice production in the District of Mempawah still favorable compared to the expense of foreign exchange to import the commodity from other countries. Keywords: comparative advantage, Pattern Agroecosystems, Domestic Resource Cost

scholarly journals An Analysis Of The Impact Of The Fall In The Foreign Exchange Value Of The U.S. Dollar From The Mid-1980s To The Mid-1990s On The Output Levels Of The 20 2-Digit SIC U.S. Industries

2011 ◽  
Vol 16 (2) ◽  
Author(s):  
Edward T. Gullason
Keyword(s):  
Foreign Exchange ◽  
International Competitiveness ◽  
Downward Trend ◽  
Font Size ◽  
Empirical Results ◽  
Exchange Value ◽  
The Impact ◽  
The U.S

<p class="MsoBlockText" style="margin: 0in 0.4in 0pt 0.5in; mso-pagination: none;"><span style="font-style: normal;"><span style="font-size: x-small;"><span style="font-family: Batang;">This study empirically examines the effects of the downward trend in the foreign exchange value of the U.S. dollar from the mid-1980s to the mid-1990s on the output levels of the 20 individual 2-digit SIC U.S. industries.<span style="mso-spacerun: yes;">&nbsp; </span>Despite the fact that theory would predict increases in the output levels of these industries due to their improved international competitiveness, the empirical results show that this is not the case.</span></span></span></p>

scholarly journals Do banks use derivatives to off set economic consequences of wrong strategies: Externally growth through acquisitions too much expensive (hostile takeovers)?

2015 ◽  
Vol 12 (4) ◽  
pp. 857-866
Author(s):  
Loredana Ferri Di Fabrizio
Keyword(s):  
Agency Problem ◽  
Economic Consequences ◽  
The Other ◽  
Ongoing Debate ◽  
Hostile Takeovers ◽  
Empirical Results ◽  
Corporate Strategies ◽  
Financial Decision ◽  
The Cost

One of the unresolved questions in the matter of financial decision is why firms hedge with derivatives. Prior researches hypotize different reasons for derivatives use and empirical results are contradictory. When Managers and Owners are different an agency problem could arise in the hedging decisions. For instance, the Managers may hedge in a manner that does not maxime the value of the firm. On one side derivatives allow shifting and hedging risks but on the other side reduce the cost of enganging in speculative transactions. The paper is motivated mainly by the ongoing debate on derivatives use and seeks at answer following questions : how do corporate strategies use derivatives? What is the really goal of using derivatives: hedging or taking risks? How CEOs use derivatives to hide or delay losses or their imbalanced corporate strategies (e.g. hostile takeovers)?.

Do Firms Do What They Say? The Effect of the American Jobs Creation Act of 2004 on R&D Spending

2017 ◽  
Vol 40 (1) ◽  
pp. 87-107 ◽  
Author(s):  
Qi (Flora) Dong ◽  
Xin Zhao
Keyword(s):  
Research And Development ◽  
Funding Source ◽  
Tax Rates ◽  
Domestic Investment ◽  
Average Effect ◽  
Empirical Results ◽  
Survey Results ◽  
The Cost ◽  
Jel Classifications ◽  
Tax Holiday

ABSTRACT Prior studies debate whether the temporary tax holiday provided by the American Jobs Creation Act of 2004 (AJCA) increased firm spending on domestic investment. Since internal equity is an important funding source for research and development (R&D), and the AJCA lowered the cost of accessing internal equity through reduced repatriation tax rates, we hypothesize and find that on average, the AJCA led to increased firm spending on R&D. Our results bridge the gap between prior empirical results that do not show an average effect of increased domestic investment under the AJCA and survey results that report increased domestic investment as a common use of funds repatriated under the AJCA. JEL Classifications: G15; G38.

Efficiency in Cooperative Banks and Savings Banks

2019 ◽  
pp. 49-69
Keyword(s):  
Gross Domestic Product ◽  
Empirical Evidence ◽  
Cost Efficiency ◽  
Stochastic Frontier ◽  
Gdp Growth ◽  
Stochastic Frontier Model ◽  
Empirical Results ◽  
Savings Banks ◽  
Cooperative Banks ◽  
The Cost

This chapter provides additional empirical evidence on the efficiency in cooperative banks and savings banks by applying a stochastic frontier model to estimate the cost efficiency from nine countries over the period 2005 to 2011. The empirical results suggested that a higher rate of the gross domestic product (GDP) growth implies an increase in the inefficiency level, while smaller cooperative and savings banks are more efficient in managing costs compared to larger banks.

How the Federal Reserve's Central Bank Swap Lines Have Supported U.S. Corporate Borrowers in the Leveraged Loan Market

FEDS Notes ◽  
2020 ◽  
Vol 2020 (2802) ◽  
Author(s):  
Annie McCrone ◽  
◽  
Ralf Meisenzahl ◽  
Friederike Niepmann ◽  
Tim Schmidt-Eisenlohr ◽  
...  
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Foreign Exchange ◽  
Federal Reserve ◽  
Central Banks ◽  
Interest Rate Parity ◽  
Monetary Authorities ◽  
Rate Parity ◽  
In The Beginning ◽  
The Cost

The cost of borrowing U.S. dollars through foreign exchange (FX) swap markets increased significantly in the beginning of the Covid-19 pandemic in February 2020, indicated by larger deviations from Covered Interest Rate Parity (CIP). CIP deviations narrowed again when the Federal Reserve expanded its swap lines to support U.S. dollar liquidity globally—by enhancing and extending its swap facility with foreign central banks and introducing the new temporary Foreign and International Monetary Authorities (FIMA) repurchase agreement facility.

Export Promotional System in India

1989 ◽  
Vol 24 (1) ◽  
pp. 37-49
Author(s):  
R.K. Pandey
Keyword(s):  
Foreign Exchange ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Export Promotion ◽  
Benefit Analysis ◽  
Foreign Exchange Earning ◽  
Marketing Environment ◽  
Promotion System ◽  
The Cost ◽  
Domestic Resource

This Paper puts in propor perspoctivo tho role, which export promotion measures/system should play to ensure continuing �expansion and diversification of India's exports in the context of the highly competitivo, complex and fast changing international marketing environment. The entire export promotion system in India, according to the author, has to be overhauled and scientifically orientod to the oxport marketing promotion/development needs rather than just catering to the cost reduction/profitability enhancement objectives, which indeed have some, but very limited, contribution to tho export expansion and diversification efforts of the country. A popular method of appraising benefits from export promotion measures in India has been to compare the net foreign exchange realization from exports with the total cost of administering export promotion measures to national exchequer-a fiscalist approach. The benefit analysis of export promotion system in any country should, however, necessarily bo based on a comparison between Domestic Resource Cost of export promotion measures/system and the Domestic Resource Gain as well as Net Foreign Exchange Earning. The cost-benefit analysis in terms of cost of export promotion system and measures as compared with net foreign exchange earning resulting therefrom can, therefore, be treated only as a partial approach.

scholarly journals The Cost of Foreign Exchange Intervention: Concepts and Measurement

2016 ◽  
Vol 16 (89) ◽  
pp. 1 ◽  
Author(s):  
Gustavo Adler ◽  
Rui Mano ◽  
◽  
Keyword(s):  
Foreign Exchange ◽  
Foreign Exchange Intervention ◽  
The Cost

scholarly journals The Demand for International Reserves: A Case Study of Pakistan

2005 ◽  
Vol 44 (4II) ◽  
pp. 939-957 ◽  
Author(s):  
Karim Khan ◽  
Eatzaz Ahmed
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Economic Consequences ◽  
Inflation Expectations ◽  
Foreign Exchange Reserves ◽  
Rate System ◽  
High Inflation ◽  
Exchange Rate System ◽  
The Cost

Foreign exchange reserves have clear implications for exchange rate stability, financial markets, and hence, for overall economic activity. Stakeholders have different views about reserves holding. Some economists believe that foreign exchange reserves are useless and unutilised as Friedman (1953) criticised the fixed exchange rate system with the argument that it contains unutilised foreign exchange reserves. On the other hand, some economists argue that foreign exchange reserves should be there to smooth out the imbalances in balance of payments [see Kemal (2002)]. There is continuous debate about the need to hold reserves.1 The critics are worried about the cost of holding reserves. The cost of holding reserves is the investment that nations must forego in order to accumulate reserves. In contrast, the supporters of reserves holding argue that the cost of reserves holding is small compared to the economic consequences of exchange rate variations. For instance, a depreciation in the value of the currency, caused by either financial crises or others internal or external shocks, may raise a country’s costs of paying back debt denominated in foreign currency as well as its costs of imported items. Besides, it also creates high inflation expectations.

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