Analysis of the Effect of Covid-19 on Stock Prices in IDX30

The Covid-19 pandemic has hit Indonesia since March 2020 until now. This health disaster has affect Indonesia's macroeconomic conditions and the performance of many companies. The study examined the effect of the Covid-19 pandemic on the stock prices of all companies included in the IDX30 Index. The hypothesis test used is the average difference test. The results of the study found that the Covid-19 pandemic could have a positive, negative, or no effect on the stock prices of companies included in the IDX30 Index.

Corporate bond spreads and understated pension liabilities

PurposeThe question is whether debt market investors see through managers' attempts to hide their pension obligations. The authors establish a robust relation between understated pension liabilities and corporate bond yield spreads after controlling for factors that have been previously identified as having a significant impact on firms' cost of borrowing. The results support the idea that bond market investors are not being misled by the use of high pension liability discount rates by some companies to lower their reported pension obligations. For a small fraction of debt issuers, the reported pension liabilities are larger than the pension liabilities valued at the stipulated interest rate benchmarks. For these issuers with overstated pension liabilities, bond investors adjust their borrowing costs downward.Design/methodology/approachThe authors investigate the relation between corporate bond yield spreads and understated pension liabilities relative to long-term Treasury and high-grade corporate bond yields. They aim to answer two questions. First, what are the sizes of over or understated pension liabilities relative to guideline benchmarks? Second, do debt market investors see through the potential management manipulation of pension discount rates? The authors find that firms with large understated pension liabilities face higher marginal borrowing costs after taking into account issue-specific features, firm characteristics, macroeconomic conditions and other pension information such as funded status and mandatory contributions.FindingsThe average understated projected benefit obligations (PBOs) are understated by $394.3 and $335.6, equivalent to 3.5 and 3.0% of the beginning of the fiscal year market value, respectively. The average understated accumulated benefit obligations (ABOs) are understated by $359.3 and $305.3 million, equivalent to 3.1 and 2.6%, of the beginning of the fiscal year market value, respectively. Relative to AA-grade corporate bond yields, the average difference between firm pension discount rates and benchmark yields becomes much smaller; the percentage of firm pension discount rates higher than benchmark yields is also much smaller. As a result, understated pension liabilities become negligible. The authors establish a robust relation between corporate bond yield spreads and measures of understated pension liabilities after controlling for issue-specific features, firm characteristics, other pension information (funded status and mandatory contributions), macroeconomic conditions, calendar effects and industry effects.Originality/valueS&P Rating Services recognizes the issue that there is considerably more variability in discount rate assumptions among companies than in workforce demographics or the interest rate environment in which firms operate (Standard and Poor's, 2006). S&P also indicates that it would be desirable to normalize different discount rate assumptions but acknowledges that it is difficult to do so. In practice, S&P Rating Services conducts periodic surveys to see whether firms' assumed discount rates conform to the normal standard. The paper makes an initial attempt to quantify the size of understated pension liabilities and their impact on corporate bond yield spreads. This approach can be extended to study firms' costs of equity capital, the pricing of seasoned equity offerings and the pricing of merger and acquisition transaction deals, among other questions.

Program Pengungkapan Sukarela Dalam Rangka Meningkatkan Kepatuhan Pajak Di Masa Pandemi Covid-19

Undang-Undang Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan (UU HPP) merupakan kelanjutan dari Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja (UU Ciptaker) dalam hal pengaturan ketentuan di bidang perpajakan. UU HPP mengatur beberapa perubahan dan pencantuman ketentuan baru termasuk di antaranya Program Pengungkapan Sukarela (PPS). Salah satu tujuan PPS yang utama adalah meningkatkan kepatuhan wajib pajak. PPS dilaksanakan berdasarkan asas kesederhanaan, kepastian hukum dan dan kemanfaatan. Kegiatan pengabdian kepada masyarakat dilakukan melalui web seminar bertujuan untuk memberikan pemahaman kepada masyarakat mengenai PPS dan ruang lingkupnya. Materi yang disajikan dalam webinar ini antara lain kondisi makro ekonomi indonesia, dampak situasi pandemi, dan kaitan PSS dengan kepatuhan pajak. Pelaksanaan webinar terdiri dari tiga tahap. Pertama, penyajian materi dari narasumber 1. Kedua, penyajian materi dari narasumber 2. Ketiga, sesi tanya jawab dengan peserta. Jumlah peserta webinar sekitar 300 yang berasal dari berbagai latar belakang profesi, seperti mahasiswa, akademisi, praktisi, dan para profesional lainnya. Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP) is a continuation of Law Number 11 of 2020 concerning Job Creation (UU Ciptaker) in terms of regulating provisions in the taxation sector. The HPP Law regulates several changes and the inclusion of new provisions including the Voluntary Disclosure Program (PPS). One of the main objectives of PPS is to increase taxpayer compliance. PPS is implemented based on the principles of simplicity, legal certainty and benefit. Community service activities are carried out through web seminars aimed at providing understanding to the public about PPS and its scope. The material presented in this webinar includes Indonesia's macroeconomic conditions, the impact of the pandemic situation, and the relationship between PSS and tax compliance. The webinar consists of three stages. First, presentation of material from resource persons 1. Second, presentation of material from resource persons 2. Third, question and answer session with participants. The number of webinar participants is around 300 who come from various professional backgrounds, such as students, academician, practitioners, and other professionals.

A magyar állampénzügyi rendszer rezilienciája a COVID–19 járvány kapcsán

Összefoglaló. A COVID–19 járvány a magyar gazdaság teljesítményeit és pénzügyi egyensúlyát is gyengítette, ám a korábbról stabil államháztartási alapok következtében a negatív hatások csak átmenetinek vélelmezhetők. Magyarország 2010–2019 között egy sikeres állampénzügyi reformot hajtott végre, amely jó alapot ad a válság elleni védekezéshez. Ugyanakkor a járványválság még erősebben ráirányítja a figyelmet a magyar nemzetgazdaság versenyképességének erősebb javítására, az infláció fékezésére, a költségvetési egyensúly megfelelő keretek között tartására, és a kis- és középvállalati szektor mérethatékonyságának növelésére. A tanulmány bemutatja a válság alatti fiskális és jegybanki intézkedések vázát, és egyúttal utal a válság utáni időszak kihívásaira, amelyek a nemzetközi térből, s különösen a jegybanki politika megváltozásából fakadnak. Summary. The COVID-19 epidemic hit the position of the otherwise strong Hungarian economy. We could see an economic downturn and financial imbalance developed in the last one and half years. As in the recovery (post-crisis) period of the 2010 decade, the crisis is being addressed with the active involvement of the state and the central bank. However, in the course of managing the crisis, it arises that on the new growth trajectory to be built after the recovery period, the competitiveness aspects, especially in the small and medium-sized enterprise category, which plays a major role in Hungary, should be more efficient than in the previous decade. It is necessary to improve the size efficiency, liquidity and capital efficiency of the SME sector by means of fiscal regulation, and the allocation of state resources should be more strongly linked to the requirements of export capacity and innovative business conduct. The decade after the 2007–2008 crisis – the previous recovery period – was characterized by the weak enforcement of fiscal policies in regulating and improving competitiveness, especially in Hungary, where change is essential. After 2013, Hungarian monetary policy also caught up with the international practice of quantitative easing, achieving significant results in improving both the financial balance and economic growth. However, the previous quantitative easing of the central bank, as well as the increase of budget expenditures on epidemiological expenditures, investments, normative budget annual subsidies from the European Union and subsidies from the European Reconstruction Fund, and even investment loans from our Eastern economic partners, generates an overheated economy, inflationary pressures, and external and balance of payments deficits. Added to this is the wage dynamics of the population, and the permanent and even increasing disbursement of family benefits during the crisis. All in all, in the 2020s we will face a new financial-debt crisis, unemployment and labor shortage problems, the competitiveness problems of the small business sector, culminating in the reorganization of the world economy, new competitiveness aspects, it will be a rather complex task. Thus, the turn of competitiveness that has essentially failed in the context of an abundance of resources and consolidated macroeconomic conditions (2010-2019) must be implemented “uphill”, it is only the time, will and opportunity to take its first steps. But the main lesson of the crises caused by the epidemics (also) is that the remaining economic entities have become stronger. And perhaps there is a chance to avoid falling into the trap of medium development through a new central bank policy that moderates inflation and truly enforces modernization considerations, as well as improving financial positions and improving economic positions (competitiveness).

Are founder-CEOs resilient to crises? The impact of founder-CEO succession on new firm survival

This article explores whether new firms managed by founder-chief executive officers (CEOs) are more likely to survive than those managed by successor-CEOs in times of crisis. Drawing on the concept of ‘resilience’ to adversity, we argue that founder-CEOs increase the likelihood of new firm survival, especially in times of crisis. Using a sample of Japanese firms founded during the 2003–2010 period, we examine the impact of founder-CEO succession on new firm survival. The analysis shows that new firms managed by founder-CEOs are less likely to liquidate than those managed by successor-CEOs, especially during the 2008–2009 financial crisis. This suggests that founder-CEOs are more resilient to crises than successor-CEOs. In contrast, new firms managed by successor-CEOs are more likely to exit via merger than those managed by founder-CEOs, regardless of macroeconomic conditions. These findings are robust after controlling for the endogeneity of CEO succession.

Corporate leverage and monetary policy transmission mechanism in India: A dynamic approach.

The macroeconomic policies of a nation have a major bearing on the financial performance of the companies and their potential sustainability and growth. This study investigates the impact of monetary policy on the corporate leverage adjustment through microscopic monetary policy transmission channels, mainly the interest rate and credit channels, using a sample of 422 manufacturing firms in India from 2011 to 2017 by employing partial adjustment model. The findings suggest that contractionary monetary policy cuts down overall corporate debt. The study further asserts that corporate debt in Indian firms demonstrates target behaviour and the speed at which firms adjust their actual debt ratios towards target debt ratios is a function of not only firm-specific characteristics but also macroeconomic conditions prevailing in the country, proxied by monetary policy indicators in our study. The study has critical policy implications as the balance sheet situation of corporates is a crucial factor in the financial stability of the economy.

The Suburbanisation of the Poor? Investigating the distribution and concentration of deprivation in Auckland and Wellington, New Zealand 1991-2013

<p>Inequality has emerged as a key issue in contemporary global urban debates. Many developed cities across the world are characterised by growing social–spatial inequalities, housing liberalisation, and gentrification, which limit the housing options of poor households. When the poor have limited housing options, they must deploy coping mechanisms. There is recent international literature on the suburbanisation of poverty predominantly in European and American cities. The aim of my research is to identify whether – given rising house prices – there has been a shift of the urban poor away from the central cities in New Zealand, towards the middle suburbs and peripheries. Furthermore, my research seeks to observe whether poor populations are becoming more concentrated. Using the New Zealand deprivation score, I analyse the trend towards a marked suburbanisation of deprivation in the two biggest cities in New Zealand, Auckland and Wellington. I find a shift of deprivation away from the city centre and towards the middle and outer suburbs in both cities. I find that the spatial distribution of deprivation changes with the macroeconomic conditions of the time. I also find in cases of no ‘suburbanisation of the poor’ that instead the poor are crowding and consuming less housing. These findings can inform future urban development practices.</p>

Macroeconomic conditions are only an illusion, not the solution, to firm sustainability: unveiling the new dimension of stakeholder well-being

Purpose The purpose of the study is to explore the misconception that in developed countries, macroeconomic performance lead to sustainable firms or improves stakeholder well-being. The results may be the opposite or even worse. Design/methodology/approach This study examined this misconception using balanced panel data from 1,122 firms from different sectors of the US economy and data on macroeconomic performance from the World Bank. Findings The results of the one-step generalised method of moments indicate that most macroeconomic performance indicators had significant and negative impacts on firm sustainability and stakeholder well-being. Practical implications From a societal perspective, the results illustrate that the fruits of macroeconomic performance of the US economy do not reach stakeholders through firms’ sustainability. Thus, linking the economy’s macroeconomic performance with firm sustainability is vital for sustainably uplifting society and for stakeholder well-being. Originality/value From a policy perspective, this study reveals that the greater focus on macroeconomic performance in the USA over the past decades has resulted in lower firm sustainability because of the malfunctioning of social, economic, environmental and governance factors. This has negatively influenced stakeholder well-being in the country.

The Efficiency Analysis of Large Banks Using the Bootstrap and Fuzzy DEA: A Case of an Emerging Market

In this study, banks’ business performance efficiency was analysed using data envelopment analysis (DEA), with expense categories as inputs and income categories as outputs. By incorporating a bootstrap method and a fuzzy data approach into a DEA model, additional insights and sensitivity analysis of the results were obtained. This study shows how fuzzy and bootstrap DEA can be used for investigating real market problems with uncertain data in an uncertain sample. The empirical analysis was based on the period of 2009–2018 for a sample of seven of Croatia’s largest private banks. The aim of the study was also to interpret the DEA results with regards to the specific market, legal, and macroeconomic conditions, caused by the changes introduced in the last decade. The results, and the changes in the inputs and outputs over time, revealed that the market processes occurring in the observed period had a significant impact on banks’ business performance, but led to a more efficient banking system. Two banks were found to be dominant over the others regardless of the changes in the sample and data fuzziness. DEA results were additionally compared to the most important financial indicators and accounting ratios, as an alternative or additional measure of banks’ efficiency and profitability.