Monkey Business Practices on The Selling of “Janda Bolong” Plants in Indonesia: A Review of Islamic Economic Philosophy

<p>The sale and purchase of the “Janda Bolong” plant which was busy in the midst of the Covid-19 pandemic at a very fantastic price, which was then suspected to contain monkey business practices. So this study aims to describe a review of the Islamic economic philosophy of monkey business practices in the “Janda Bolong” plants sale and purchase transaction. The research method used is a qualitative research method with the type of library research using a deductive approach. The results of this study indicate that the practice of buying and selling that occurs in the object of the plant “Janda Bolong” is a type of monkey business with objects that are not commonly practiced. The “Janda Bolong” plant sale and purchase transaction contains a <em>fasid</em> (damaged) contract, where the contract is in accordance with the Sharia but in the nature of the contract there is a problem. The price formation process that occurs in it is also unfair, so it is not in accordance with Islamic law. In Islamic economic philosophy, the practice of monkey business in buying and selling the “Janda Bolong” plant is not allowed. Because it denotes the essence of the creation of humans on earth, namely as a caliphate by processing the available resources in order to achieve happiness in this world and the hereafter.</p>

Applying the Input-output Price Model to Identify Inflation Processes

We try to examine the potential of input-output price model to identify mechanisms of price formation and transmission. Contrary to previous research focused on overcoming the specific limitations of the model, we test its overall performance. In the presented study the historical values of the commonly used Consumer Price Index were decomposed according to the classic input-output price model for an open economy. A sequence of ex-post simulations under various assumptions was used to identify the sources of inflation. This study required the use of input – output tables in current and previous year’s prices. The proposed method of decomposition might be a starting point to create a framework for studying different aspects of inflation process.JEL: C67, E31, E37

Decision-making under Market Indeterminacy

The Efficient Markets Hypothesis (EMH) is the focusing topic in the past 50 years of financial market researches. Many empirical studies are then provided that want to test EMH but have no consensus. The perception of EMH determines the attitude and strategy of participants and regulators in financial market. One perception of EMH argues that investors’ behavior of seeking abnormal profits and arbitrage drives prices to their ‘‘correct’’ value. Investigating the “correct” value derives the concept of “market indeterminacy”. It means the inability to determine whether stock prices are efficient or inefficient. Market indeterminacy pervades stock markets because “correct” prices are unknown because of imperfect information and model sensitivity. Market indeterminacy makes arbitrage risky and makes event studies unreliable in some policy and litigation applications. The concept of market efficiency is needed to be re-recognized considering the mechanism of price formation. In order to further research and practice in law and financial market, there needs a view from the “jumping together” of disparate disciplines. Adaptive Markets Hypothesis(AMH) that using the evolutionary principles in financial market is a new viewpoint oncognitive decision and deserves to be paid more attention to.

Rest in Peace Post-Earnings Announcement Drift

This paper revisits price formation following earnings announcements. In modern financial markets, stock prices fully reflect earnings surprises on the announcement date, leading to the disappearance of post-earnings announcement drifts (PEAD). For large stocks, PEAD have been non-existent since 2006 but has only disappeared recently for microcap stocks. PEAD remain a prevalent area of study in finance and accounting despite having largely disappeared. This paper concludes with a set of recommendations for researchers who conduct such studies to better assess the existence of PEAD and suggests future research avenues to examine price formation following earnings news.

The determinants of forest land prices

The authors discuss the peculiarities of price formation for forest land as a renewable plant natural resource. Forest plots are regarded as a forest resource that can be used in two ways: as a natural object and as a source of wood raw materials. The absolute forest rent for forest areas with standing trees, adjusted for economic, environmental, and social factors, serves as the pricing basis. The authors propose creating differentiated regional price lists for forest plots and methodological approaches to pricing forest plots with different types of forest use to substantiate the forest tax and tax base.

Evolution of the IBEX-35 vs other international indices: determinants of market value according to XGBOOST and GLM models

PurposeThe purpose of this paper is to study the influence of different quantitative (traditionally used) and qualitative variables, such as the possible negative effect in determined periods of certain socio-political factors on share price formation.Design/methodology/approachWe first analyse descriptively the evolution of the Ibex-35 in recent years and compare it with other international benchmark indices. Bellow, two techniques have been compared: a classic linear regression statistical model (GLM) and a method based on machine learning techniques called Extreme Gradient Boosting (XGBoost).FindingsXGBoost yields a very accurate market value prediction model that clearly outperforms the other, with a coefficient of determination close to 90%, calculated on validation sets.Practical implicationsAccording to our analysis, individual accounts are equally or more important than consolidated information in predicting the behaviour of share prices. This would justify Spain maintaining the obligation to present individual interim financial statements, which does not happen in other European Union countries because IAS 34 only stipulates consolidated interim financial statements.Social implicationsThe descriptive analysis allows us to see how the Ibex-35 has moved away from international trends, especially in periods in which some relevant socio-political events occurred, such as the independence referendum in Catalonia, the double elections of 2019 or the early handling of the Covid-19 pandemic in 2020.Originality/valueCompared to other variables, the XGBoost model assigns little importance to socio-political factors when it comes to share price formation; however, this model explains 89.33% of its variance.