scholarly journals DO PRICES CONVERGE AMONG INDONESIAN CITIES? AN EMPIRICAL ANALYSIS

2019 ◽  
Vol 22 (3) ◽  
pp. 239-262 ◽  
Author(s):  
Bhushan Praveen Jangam ◽  
Vaseem Akram
Keyword(s):  
Empirical Analysis ◽  
Price Convergence ◽  
Club Convergence ◽  
Monthly Data ◽  
Weak Evidence ◽  
Price Rigidities ◽  
Sigma Convergence ◽  
Transition Paths ◽  
Price Divergence ◽  
Do So

We investigate consumer price convergence for 82 Indonesian cities using monthly data from 2014 to 2019. To do so, we employ recent techniques of club convergence and weak sigma convergence. The results reveal, first, consumer price divergence, implying price rigidities across the cities. Second, we find four clubs, suggesting that Indonesian cities converge along four unique transition paths. Third, we find weak evidence of consumer price convergence, suggesting that prices among Indonesian cities adjust, but not freely. Policy should therefore consider unique convergence paths for each club to promote stronger consumer price convergence.

scholarly journals Price adjustments on the Johannesburg Stock Exchange for unexpected and dramatic news events: An empirical analysis

1989 ◽  
Vol 20 (3) ◽  
pp. 119-128 ◽  
Author(s):  
N. Bhana
Keyword(s):  
Empirical Analysis ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Short Term ◽  
Johannesburg Stock Exchange ◽  
Price Adjustments ◽  
Weak Evidence ◽  
News Events ◽  
One Year

The objective of this study is to determine whether companies listed on the Johannesburg Stock Exchange overreacted to unexpected favourable and unfavourable company-specific news events during the period 1970 - 1984. The JSE appears to be inefficient in reacting to the announcement of unfavourable news; economically significant abnormal returns up to one year following the event are observed. The JSE does not appear to overreact to news of a favourable nature, there is only weak evidence of short-term overreaction. The selling pressure caused by panic selling could depress prices well below levels justified by the unfavourable news. The magnitude of the overreaction to unfavourable news is sufficient to enable astute investors to outperform the market by taking positions in these securities. Knowledge of the pattern of market overreaction can also be of value to investors for transactions that are to take place anyway.

Executive Bonus Contract Characteristics and Share Repurchases

2017 ◽  
Vol 93 (1) ◽  
pp. 289-316 ◽  
Author(s):  
Sunyoung Kim ◽  
Jeff Ng
Keyword(s):  
Share Repurchases ◽  
Weak Evidence ◽  
Compensation Design ◽  
Jel Classifications ◽  
Do So ◽  
As If

ABSTRACT We examine the importance of bonus contract characteristics, specifically, with respect to the relation between EPS-based bonuses and share repurchases. We find that managers are more (less) likely to repurchase shares and spend more (less) on repurchases when as-if EPS just misses (exceeds) the bonus threshold (maximum) EPS level. We find no such relation when as-if EPS is further below the threshold. We find weak evidence that managers of firms with as-if EPS just below the EPS target are more likely to repurchase shares and spend more on repurchases relative to firms with as-if EPS just above the EPS target. We further find that the incentive-zone slopes specified in the bonus contracts are positively associated with share repurchases. Managers making bonus-motivated repurchases do so at a higher cost. Together, our results highlight the importance of compensation design in motivating managers' behavior and aligning managers' incentives with shareholders. JEL Classifications: M41; M52.

War Making and the Building of State Capacity: Expanding the Bivariate Relationship

2017 ◽  
Author(s):  
Karen A. Rasler ◽  
William R. Thompson
Keyword(s):  
Gross Domestic Product ◽  
Empirical Analysis ◽  
State Capacity ◽  
Point Of View ◽  
Regime Type ◽  
Domestic Product ◽  
Data Set ◽  
Representative Data ◽  
The Relationship ◽  
Do So

A central cleavage in the war making-state making literature is between advocates of the notion that warfare has been the principal path to developing stronger states and critics who argue that the relationship no longer holds, especially in non-European contexts. It is suggested that the problem is simply one of theoretical specification. Increasingly intensive warfare, as manifested in European combat, made states stronger. Less intensive warfare, particularly common after 1945, is less likely to do so. Empirical analysis of a more representative data set on state capacity (revenues as a proportion of gross domestic product [GDP]), focusing on cases since 1870, strongly supports this point of view. The intensiveness of war is not the only factor at work—regime type and win/loss outcomes matter as well—but the relationship does not appear to be constrained by the level of development.

Exploring the tourism markets’ convergence hypothesis in Italy

2020 ◽  
pp. 135481662094043
Author(s):  
Pietro Pizzuto ◽  
Caterina Sciortino
Keyword(s):  
Absolute Convergence ◽  
Factor Model ◽  
Time Varying ◽  
Asian Countries ◽  
Club Convergence ◽  
Convergence Hypothesis ◽  
Monthly Data ◽  
Inbound Tourism ◽  
Relative Decline ◽  
Promotional Strategies

This article aims at investigating the tourism markets’ convergence hypothesis across Italy’s 20 major source markets. To reach our goal, we use monthly data of tourist arrivals and overnights over the period 2008–2018 and the time-varying factor model developed by Phillips and Sul (2007, 2009). Our findings suggest the absence of full (absolute) convergence, leading us to accept the hypothesis of club convergence. We show that the traditionally more important source markets have a tendency to persist, while Asian countries show heterogeneous behaviour. Furthermore, the relative decline in the contribution to total arrivals and overnights of several international source markets calls for a reconsideration of the promotional strategies to stimulate inbound tourism from these countries.

Patterns in the evolution of nares size and secondary palate length in anomodont therapsids (Synapsida): implications for hypoxia as a cause of end-Permian tetrapod extinctions

2008 ◽  
Vol 82 (3) ◽  
pp. 528-542 ◽  
Author(s):  
Kenneth D. Angielczyk ◽  
Melony L. Walsh
Keyword(s):  
Atmospheric Oxygen ◽  
Term Trend ◽  
Weak Evidence ◽  
Secondary Palate ◽  
Respiratory Efficiency ◽  
Rigorous Study ◽  
Selection For ◽  
Long Term Trend ◽  
Do So

Seemingly consistent proportional differences in several palatal structures have been noted between Permian and Triassic anomodont therapsids for nearly a century. These patterns have been cited as evidence in support of a decline in atmospheric oxygen concentrations that may have contributed to end-Permian terrestrial extinctions. However, it is not known whether the observed differences are significant, or whether they stem from continued directional selection. If they are not significant, or if their timing does not match that proposed for the oxygen decline, support for the hypoxia-based extinction scenario would be weakened. We tested whether the internal nares and bony secondary palate, two palatal features proposed to be related to respiratory efficiency, are significantly larger in Triassic anomodonts, and whether the variation can be attributed to a long-term tendency for increase. Results based on raw data indicate that Triassic anomodonts have significantly larger secondary palates than Permian anomodonts. They also have significantly larger internal nares, but only when primitive, morphologically-divergent specimens are not considered. Although nares and palate size are correlated with stratigraphic occurrence, available data reject the hypothesis that the observed differences were the result of a long-term trend. Most of these findings are consistent with the predictions of the hypoxia scenario. However, removing the effects of body size and phylogeny causes some of the differences to break down, indicating that if selection for increased respiratory efficiency affected these characters, it was most likely not the only factor to do so. Therefore, the characters provide only weak evidence in support of the hypoxia scenario, and we recommend against their use for this purpose. Our results emphasize the need for caution when invoking presumed differences between Permian and Triassic vertebrates as support for hypoxia, or other extinction scenarios, without a rigorous study of the character(s) in question.

Discretion in the accounting for defined benefit obligations – an empirical analysis of German IFRS statements

2014 ◽  
Vol 14 (3) ◽  
pp. 266-292 ◽  
Author(s):  
MARCUS SALEWSKI ◽  
HENNING ZÜLCH
Keyword(s):  
Growth Rate ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Pension Plans ◽  
Research Approach ◽  
Defined Benefit ◽  
Weak Evidence ◽  
Country Specific

AbstractFollowing the research approach of Hann et al. (2007), this study investigates how discretion in the determination of the defined benefit obligation (DBO) is perceived by investors using a sample of listed German companies in the period of 2005–2011. For this, actuarial assumptions – discount interest rates, compensation growth rate and projected future pension increases – are replaced by their respective industry medians to obtain that component of the DBO, which can be attributed to discretion. We find that the discretionary component is not value relevant in overall terms, which is in contrast to prior research. We provide an explanation in the country-specific characteristics of Germany. Furthermore, we find weak evidence that the discretionary component is incorporated in investor's equity valuations when pension plans are distinctly underfunded.

scholarly journals An Empirical Analysis of Fujian Pork Prices under African Swine Fever Based on ARIMA Model

2021 ◽  
Vol 2 (1) ◽  
pp. 30-36
Author(s):  
Qian-Qian Song ◽  
Jun-Xiong You ◽  
Meng Chen
Keyword(s):  
Empirical Analysis ◽  
Arima Model ◽  
African Swine Fever ◽  
Model Construction ◽  
Policy Recommendations ◽  
Fujian Province ◽  
Monthly Data ◽  
High Level

This article takes the monthly data of the average pork price in Fujian Province from January 2018 to December 2019 as the research object, conducts the ARIMA model construction and analysis, and predicts the pork price in Fujian Province from January to June 2020. Results show that the pork price will have dropped slightly than before, but it is still at a relatively high level. Corresponding policy recommendations are made based on the results of the study.

Empirical analysis of dynamic spillovers between exchange rate return, return volatility and investor sentiment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tihana Škrinjarić ◽  
Zrinka Lovretin Golubić ◽  
Zrinka Orlović
Keyword(s):  
Exchange Rates ◽  
Dynamic Analysis ◽  
Empirical Analysis ◽  
Portfolio Management ◽  
Investor Sentiment ◽  
Daily Basis ◽  
Investment Strategies ◽  
Monthly Data ◽  
Content Type ◽  
Over Time

Purpose This paper aims to analyze the effects of investors’ sentiment, return and risk series on one to another of selected exchange rates. The empirical analysis consists of a time-varying inter-dependence between the observed variables, with the focus on spillovers between the variables. Design/methodology/approach Monthly data on the index Sentix, exchange rates EUR–USD, EUR–CHF and EUR–JPY are analyzed from February 2003 to December 2019. The applied methodology consists of vector autoregression models (VAR) with Diebold and Yilmaz (2009, 2011) spillover indices. Findings The results of the empirical research indicate that using static analysis could result in misleading conclusions, with dynamic analysis indicating that the financial of 2007-2008 and specific negative events increase the spillovers of shock between the observed variables for all three exchange rates. The sources of shocks in the model change over time because of variables changing their positions being net emitters and net receivers of shocks. Research limitations/implications The shortfalls of this study include using the monthly data frequency, as this was available for the authors, namely, investors are interested to obtain new information on a weekly and daily basis, not only monthly. However, at the time of writing this research, we could obtain only monthly data. Practical implications As the obtained results are in line with previous literature and were found to be robust, there exists the potential to use such analysis in the future when forecasting risk and return series for portfolio management purposes. Thus, a basic comparison was made regarding the investment strategies, which were based on the results from the estimation. It was shown that using information about shock spillovers could result in strategies that can obtain better portfolio value over time compared to basic benchmark strategies. Originality/value First, this paper allows for the spillovers of shocks in variables within the VAR models in all directions. Second, a dynamic analysis is included in the study. Third, the mentioned spillover indices are included in the study as well.

scholarly journals RENTAL PRICE CONVERGENCE IN A DEVELOPING ECONOMY: NEW EVIDENCE FROM NONLINEAR PANEL UNIT ROOT TEST

2010 ◽  
Vol 14 (3) ◽  
pp. 245-257 ◽  
Author(s):  
Mehmet Huseyin Bilgin ◽  
Chi Keung Marco Lau ◽  
Ender Demir ◽  
Nijolė Astrauskienė
Keyword(s):  
Unit Root ◽  
Price Index ◽  
Unit Root Test ◽  
Price Convergence ◽  
Developing Economy ◽  
Property Market ◽  
Panel Unit Root ◽  
Show Evidence ◽  
Price Divergence ◽  
New Evidence

We examine the hypothesis of nonlinear rental price convergence using relative rental price index of three major cities of Turkey namely, Istanbul, Izmir, and Ankara span from the period from January 1994 to February 2010. Our results indicate that all cities exhibit rental price convergence towards its national mean level for the period of January 1994 to December 2004. In contrast, none of the cities show evidence of convergence from January 2005 to February 2010. The evidence clearly shows rental price divergence in Turkish property market. Santruka Darbe tikrinama triju pagrindiniu Turkijos miestu — Stambulo, Izmiro ir Ankaros — netiesines rentos kainu konvergencijos hipoteze nuo 1994 m. sausio men. iki 2010 m. vasario men., taikant santykini rentos kainu indeksa. Tyrimu rezultatai rodo, kad nuo 1994 m. sausio men. iki 2004 m. gruodžio men. visuose miestuose rentos kainos artejo prie vidutinio nacionalinio lygio. Priešingai, tokios konvergencijos irodymu negauta ne vieno miesto atžvilgiu nuo 2005 m. sausio men. iki 2010 m. vasario men. Faktai aiškiai rodo Turkijos nekilnojamojo turto rinkos rentos kainu divergencija.

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