scholarly journals Inflation and inflation-uncertainty in India: the policy implications of the relationship

2014 ◽  
Vol 41 (1) ◽  
pp. 71-86 ◽  
Author(s):  
Abdur Chowdhury
Keyword(s):  
Granger Causality ◽  
Strong Support ◽  
Garch Model ◽  
Policy Implications ◽  
Maximum Likelihood Estimates ◽  
Inflation Uncertainty ◽  
Policy Makers ◽  
Content Type ◽  
Economic Output ◽  
The Relationship

Purpose – Inflation and its related uncertainty can impose costs on real economic output in any economy. This paper aims to analyze the relationship between inflation and inflation uncertainty in India. Design/methodology/approach – The methodology uses a generalized autoregressive conditional heteroscedasticity (GARCH) model and Granger Causality test. Findings – Initial estimates show the inflation rate to be a stationary process. The maximum likelihood estimates from the GARCH model reveal strong support for the presence of a positive relationship between the level of inflation and its uncertainty. The Granger causality results indicate a feedback between inflation and uncertainty. Research limitations/implications – The research results have important implication for policy makers and especially the Reserve Bank of India. Practical implications – It provides strong support to the notion of an opportunistic central bank in India. Originality/value – The results of the paper are of relevance not only to the monetary policy makers but also to academicians in India and other developing countries.

scholarly journals Examining the Relationship between Different Types of Information Disclosure of Foundations and Chinese Donations

2020 ◽  
Vol 11 (3) ◽  
Author(s):  
Zhijun Lin ◽  
Ying Li
Keyword(s):  
Information Disclosure ◽  
Strong Support ◽  
Policy Implications ◽  
Policy Makers ◽  
Different Types ◽  
Chinese Policy ◽  
Types Of Information ◽  
The Relationship ◽  
Information Project ◽  
Unique Dataset

AbstractThe philanthropy industry in China has rapidly advanced in the past few decades and become more prominent in importance. In this study, we examine and compare how the disclosure of different types of information of Chinese foundations is associated with donations by exploiting a unique dataset from the China Foundation Center (CFC). Specifically, we explore a unique index of transparency on information disclosure or the Foundation Transparency Index (FTI) provided by the CFC and investigate how the donations from Chinese donors are associated with the disclosure of foundation’s basic information, its financial information, project information and its governance information. We find that Chinese donations are more sensitive to foundation’s governance information disclosure. These findings have important policy implications for both Chinese policy makers and practitioners in the industry. Specifically, the results lend strong support to advocating for the imposition of more mandatory regulations on the disclosure of foundation information, especially the governance information.

scholarly journals A Bootstrap Method to Test Granger-Causality in the Frequency Domain

2021 ◽  
Author(s):  
Matteo Farnè ◽  
Angela Montanari
Keyword(s):  
Stochastic Process ◽  
Frequency Domain ◽  
Granger Causality ◽  
Bootstrap Method ◽  
Money Stock ◽  
Bootstrap Test ◽  
Low Frequencies ◽  
Economic Output ◽  
Stationary Bootstrap ◽  
The Relationship

AbstractWe propose a bootstrap test for unconditional and conditional Granger-causality spectra in the frequency domain. Our test aims to detect if the causality at a particular frequency is systematically different from zero. In particular, we consider a stochastic process derived applying independently the stationary bootstrap to the original series. At each frequency, we test the sample causality against the distribution of the median causality across frequencies estimated for that process. Via our procedure, we infer about the relationship between money stock and GDP in the Euro Area during the period 1999–2017. We point out that the money stock aggregate M1 had a significant impact on economic output at all frequencies, while the opposite relationship is significant only at low frequencies.

Do intraday week effect in currencies hourly trading reflect leverage and asymmetric anomalies? Policy implications for traders

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wajid Shakeel Ahmed ◽  
Muhammad Sohaib ◽  
Jamal Maqsood ◽  
Ateeb Siddiqui
Keyword(s):  
Emerging Economies ◽  
Garch Model ◽  
Study Data ◽  
Policy Implications ◽  
Asymmetric Effect ◽  
Data Set ◽  
Content Type ◽  
Study Results ◽  
Rational Choices ◽  
Trading Pattern

Purpose The purpose of this study is to determine if intraday week (IDW) effect of the currencies reflect leverage and asymmetric impact in currencies market. The study data set comprises of intraday patterns of 15 currencies from developed and emerging economies. Design methodology approach The study applies the exponential generalized autoregressive conditional heteroscedasticity (E-GARCH) model technique to observe the IDW leverage and asymmetric effect after introducing hourly dummies variables, namely, IDWmon, IDWwed, IDWfrid and IDWfrid-mon. Findings The study results favor the propositions and confirm that IDW effect do exist in the international forex markets in relation to hourly trading pattern for respective currencies. Mostly, currencies do depreciate on Monday and Wednesday compared to the rest of the days. However, on the last trading day, i.e. Friday currencies observe an appreciation pattern which is for both economies. The results have an evidence of leverage and asymmetric effect confirmed by the E-GARCH model as a result of press releases and influence by micro-factors in the currency markets. Practical implications The study believes to have theoretical connection related to the better understanding of currencies trend for developed and emerging economies, as the IDW effect exists. Moreover, confirmation of both the leverage and asymmetric effect in observed currencies would be able to assist the investors in making rational choices during the trading hours and would confirm considerable profits through profit incentivized strategies. Originality value The study not only add knowledge to the previous study work in relation to the hourly trading pattern of currencies with reference to the IDW effects but also highlights the leverage and asymmetric effect in currencies that will help in formulating future trading strategies particular to emerging economies.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

scholarly journals Sustainability level, corruption and tax evasion: a cross-country analysis

2016 ◽  
Vol 23 (2) ◽  
pp. 328-348 ◽  
Author(s):  
Hichem Khlif ◽  
Achraf Guidara ◽  
Khaled Hussainey
Keyword(s):  
Tax Evasion ◽  
Design Methodology ◽  
Policy Implications ◽  
Content Type ◽  
Global Competitiveness ◽  
Country Analysis ◽  
Cross Country ◽  
The Relationship ◽  
Global Competitiveness Report

Purpose This paper aims to examine the relationship between the level of sustainability and tax evasion and test whether the level of corruption moderates such a relationship. Design/methodology/approach The sample consists of 65 developed and developing countries. Tax evasion is measured using a macro indirect approach used by Schneider et al. (2010). The sustainability level and corruption variables are collected from The Global Competitiveness Report for 2012-2013. Findings This study finds that the level of tax evasion is negatively associated with the level of sustainability (overall score and social and environmental score) and the quality of infrastructure. When we distinguish between low- and high-corruption countries, we find that this negative association is significant for low-corruption countries and insignificant for high-corruption countries. These results imply that the level of corruption may reduce the tendency of individuals in a given state to accept and trust their government in general and comply with the tax rules in particular. Originality/value Our empirical findings have policy implications for governments with high levels of tax evasion, as they highlight the importance of states’ engagements towards their citizens in reducing tax evasion.

Currency risk impact on the financial performance of multilateral banks

2015 ◽  
Vol 13 (1) ◽  
pp. 91-118
Author(s):  
Philip Kamau ◽  
Eno L. Inanga ◽  
Kami Rwegasira
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Regression Coefficient ◽  
Policy Implications ◽  
Stock Exchanges ◽  
Currency Risk ◽  
Content Type ◽  
Regulatory Status ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the impact of currency risks on the financial performance of multilateral banks (MBs). Financial performance is measured here by after-tax accounting profitability or losses. Design/methodology/approach – Quantitative hypothesis regarding the impact of currency risks on the financial performance of MBs was tested by a two-tailed t test for significance of the b regression coefficient. Findings – A regression analysis was done on the total currency risk and financial performance of MBs after taking into account currency risk over eight years. The analysis of variance of the regression of the b coefficient led to non-rejection of the null hypothesis of no association, F(1, 6) = 0.77, p > 0.05. The results of the two-tailed t test on the b regression coefficient suggest that the relationship between currency risk and financial performance is statistically insignificant. Therefore, it was concluded that there is no significant impact of currency risk on the financial performance of MBs. Research limitations/implications – The results of the study can be generalized only for MBs given their peculiar characteristics as wholesale banks, which are owned mainly by governments and are generally not listed on stock exchanges. Originality/value – The study is of value to those interested in the multilateral banking industry. To the authors’ knowledge it is the first study providing empirical evidence on currency risk impact on MBs financial performance. The study finds that the currency risk impact on the financial performance of MBs is insignificant. The results are also useful to managers of MBs in terms of benchmarking their effectiveness in managing currency risk compared to their peers and learn from better performers. It has also policy implications in terms of justifying the current self-regulatory status, shareholder monitoring and governance of MBs as they are not significantly impacted by currency risk as it appears to be effectively managed.

Mindfulness and gender differences in ethical beliefs

2018 ◽  
Vol 14 (2) ◽  
pp. 274-286 ◽  
Author(s):  
Tavleen Kaur Dhandra ◽  
Hyun Jung Park
Keyword(s):  
Gender Differences ◽  
Consumer Ethics ◽  
Policy Makers ◽  
Content Type ◽  
Five Dimensions ◽  
Ethical Beliefs ◽  
Unethical Practices ◽  
And Gender ◽  
Consumer Ethics Scale ◽  
The Relationship

Purpose This paper aims to examine the ethical beliefs of consumers with regards to their levels of mindfulness. Furthermore, it aims to investigate if mindfulness is related to gender differences among respondents in their ethical beliefs about consumer unethical practices. Design/methodology/approach University students in India were surveyed with self-administered questionnaires comprising the consumer ethics scale and mindfulness attention awareness scale. Mediation analysis was conducted to test whether gender differences in ethical judgements are due to the different levels of mindfulness. Findings The results indicate that mindfulness is not only a predictor of ethical beliefs but also a mediator of the relationship between gender and ethical beliefs. Individuals with greater mindfulness reported greater acceptance towards the five dimensions of consumer ethics scale. Indian male participants were found to be more mindful and lenient in ethical judgements than female participants. Originality/value The present work is a novel attempt in examining the effect of mindfulness on the relationship between gender and ethical beliefs of consumers. The results of this study can have positive implications for organizations, managers, public policy makers and consumers.

How does bank liquidity creation affect non-performing loans in the MENA region?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anas Alaoui Mdaghri
Keyword(s):  
Generalized Method Of Moments ◽  
Balance Sheet ◽  
Policy Implications ◽  
Mena Region ◽  
Policy Makers ◽  
Content Type ◽  
Mena Countries ◽  
Negative Effect ◽  
Short And Long Term ◽  
Conventional Banks

PurposeThe study aims to empirically examine the effect of bank liquidity creation on non-performing loans (NPLs) in the Middle East and North Africa (MENA) region.Design/methodology/approachBerger and Bouwman's (2009) three-step methodology was employed to calculate the level of liquidity creation of a selected sample of 111 commercial banks in ten MENA countries from 2010–2017. Next, the two-step system generalized method of moments (GMM) estimator was used to investigate the linkage between bank liquidity creation and NPLs.FindingsThe results demonstrated a significant negative effect of bank liquidity creation on NPLs in the short and long term, implying that liquidity creation through both on- and off-balance sheet activities decreases NPLs. These findings accord with the “economic-enhancing” view. Furthermore, regression analysis investigated whether this relationship remained similar for Islamic and conventional banks. The results showed that liquidity creation diminishes Islamic and conventional bank NPLs.Research limitations/implicationsThe empirical findings raise several significant policy implications. Bank liquidity creation may decrease rather than increase NPLs, although the process of liquidity creation is viewed as risky by rendering banks more illiquid. Therefore, policy-makers should encourage bank liquidity creation to stimulate the economy. In a robust economy, borrowers are more likely to repay their debts, consequently diminishing banks' NPLs.Originality/valueTo the best of the author's knowledge, the current study is the first to provide empirical evidence on the effect of bank liquidity creation on NPLs in MENA countries.

The complex relationship between inflation and equity returns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinan Liu ◽  
Apostolos Serletis
Keyword(s):  
Central Bank ◽  
Stock Returns ◽  
Empirical Studies ◽  
Equity Returns ◽  
Empirical Literature ◽  
Complex Relationship ◽  
Inflation Uncertainty ◽  
Stock Market Returns ◽  
Content Type ◽  
The Relationship

PurposeTo investigate the complex relationship between inflation, inflation uncertainty and equity returns.Design/methodology/approachThis paper uses a bivariate VARMA, GARCH-in-mean, asymmetric BEKK model to investigate the relationship between inflation, inflation uncertainty and equity returns.FindingsUsing monthly inflation and equity returns data for the G7 and EM7 economies, we find that the effects of inflation and inflation uncertainty on equity returns vary across countries.Research limitations/implicationsThe mixed evidence we find potentially reflects the changing dynamics, policy regimes, economic shocks and country-specific factors (such as differences in the financing patterns of enterprises and the legal and financial environments) across the G7 and EM7 countries.Practical implicationsWe contribute to the empirical literature in the following ways. First, we rely on a wide sample of countries, including both developed and emerging economies. Second, we extend previous research by estimating a GARCH-in-mean model of monthly equity returns in which both realized returns and their conditional volatility are allowed to vary with inflation. Previous articles that studied the relationship between inflation and stock market returns generally sought time-invariant effects of inflation on stock returns.Social implicationsThe paper helps to reconcile the divergent results of previous empirical studies and distinguish between alternative explanations of the relationship between inflation and equity returns.Originality/valueOur study provides an improved comprehension of the ambiguous relationship between inflation, inflation uncertainty and equity returns under various central bank mandates and different levels of central bank independence. The mixed empirical evidence across countries we present provides insights for the macroeconomic models that consider the relationship between uncertainty and macroeconomic performance as a fundamental building block. Therefore, our empirical study calls for further work on the relationship between inflation, inflation uncertainty and equity returns.

A structural relationship model of gender-role orientation and entrepreneurial intention: examining the mediating effect of motivational antecedents in Northeast India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kiefe Heibormi Passah ◽  
Nagari Mohan Panda
Keyword(s):  
Gender Role ◽  
Entrepreneurial Intention ◽  
Northeast India ◽  
Structural Relationship ◽  
Mediating Effect ◽  
Policy Implications ◽  
Content Type ◽  
Developing Region ◽  
The Relationship

PurposeThe paper presents a structural model to explain the relationship between various gender-role orientations (GROs) and motivational antecedents leading to entrepreneurial intention (EI). It examines the influence of GRO in the formation of EI among educated youths of Northeast India.Design/methodology/approachUsing a structural equation modelling approach, the hypothesized model is tested on a sample of 642 post-graduate students from four different universities in Northeast India, a developing region with unique socio-cultural diversity. The mediating role of EI antecedents on the relationship between GRO and EI was examined after establishing the reliability and validity of the measurement model.FindingsResults from the analysis support the hypothesized structural relationship confirming the influence of GRO on EI. The study also finds that androgynous individuals have a higher EI than their masculine or feminine counterparts.Research limitations/implicationsThe study contributes to the understanding of EI determinants from a GRO perspective, especially in the industrially backward region of an emerging economy. It adds to the existing literature by empirically proving the role of gender orientation. The results have several policy implications for educational institutions and policymakers in emerging economies.Originality/valueThe paper re-examines the predictive value of the theory of planned behaviour (TPB) model from a GRO perspective and compares indirect effects of gender identity through motivational antecedents on EI. Whilst TPB predicted EI in Western and developed countries, using a more diverse sample provides strong empirical evidence in the context of a developing region.

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