Current Issue : January - March Volume : 2018 Issue Number : 1 Articles : 7 Articles
For ages, there has not been a mathematical model that measures agency conflict. While all and sundry agree that there may not exist business activities without the concept of agency, little on development of a standard measure of the same has been achieved. This study attempts to develop a quantitative model for agency conflict measurement by utilizing entropy-q rationality model using data from select credit unions in Kenya. Analysis of 47 members and 14 management staff of Stima credit union, 133 members and 16 management staff of Unitas credit union, and 91 members and 16 management staff of Mwalimu National credit union showed overall existence of agency conflict as indicated by the negative value of the rationality difference. The conflict was more severe in Mwalimu National credit union. However, Stima credit union posted a positive agency conflict of 20.64%; on which basis, the regulator may set an appropriate index for the sector financial performance monitoring....
This paper investigates the issue of co-movement and interaction among the\nmonetary, foreign exchange and stock markets by employing the data from\nChina�s financial markets. Based on the ICA-EGARCH-M model, we explore\nthe volatility spillover effects so as to illustrate the overall co-movements\nacross financial markets. Furthermore, in order to observe the multi-market\ndynamic relationship variation process, we calculate the dynamic correlation\ncoefficients with the AG-DCC-MGARCH model. Our findings provide both\nstatic and dynamic evidence on the co-movement and interaction effects of\nfinancial markets which may lead to the systemic financial risk....
The industrial zones play an important role in the socio-economic development of Thai Nguyen province. The authorities of the province and Industrial zone management are very interested in the evaluation of the investors' satisfaction in the industrial zones because this is an important information channel to help the province improve its investment environment and attract investors. This study analyzed and assessed the status of investment attraction policies and infrastructure characteristics of industrial zones by collecting and analyzing secondary data. In addition, the satisfaction of investors was analyzed and evaluated through data collection methods and data processing using SPSS 20.0 software. The research result shows that investors are basically satisfied with the Industrial Zones of Thai Nguyen province, especially in terms of Reliability, Assurance and Empathy of industrial zones. Some items in the scale Tangibles, Responsiveness have not yet been assessed at the satisfaction level but are Neutral level. Based on the status analysis, the study proposes a number of solutions to improve the investor satisfaction, contributing to the improvement of the provincial investment environment....
Research by cognitive psychologists is challenging the rationality paradigm. It has started to penetrate economic\nmodeling with a vast experimental documentation of cognitive limitations that has been accumulated so far raising the\nquestions: Does behavioral decision models, which capture hope or expectation to risk in experimental settings, can\nhelp us comprehend investor behavior in financial markets.\nWe try to portrait a whole picture on the attention hypothesis we have developed around pricing patterns within\nthe innovative pharmaceuticals sector firms. We try to encompass it from several aspects: first, we lay a general\npsychological framework for Attention theory describing cognitive mechanisms such as the rule of selective attention in\nprocessing information in short-term. Second we explore financial aspects of selective attention, and last we explore real\nlife investors behavior around a major milestone within the drug development process ââ?¬â?? advisory committee milestone.\nOur findings based on 78 events dating for 2002-2014, a puzzling investors behavior. We observe that higher trading is\nheld around regulatory event in what seems like a speculative ââ?¬Å?micro bubblesââ?¬Â. In this paper, we try to portrait a whole\npicture on the attention hypothesis and merge it with these ââ?¬Å?micro bubblesââ?¬Â we assume to be in the drug development\nindustry....
This study examines the impacts of interest rate on private consumption behaviour in Nigeria between the period of 1981 and 2014 using autoregressive distributed lag (ARDL) co integrations framework. The data were sourced from the World Bank development indicators; interest rate was augmented with other macroeconomic variables like per capita income, money supply, and banking sector credit to the private sector as regresses in determining the behaviour of private consumption in Nigeria. The results confirm the existence of relationship between private consumption and its determinants, except real interest rate and the dummy for the impact of interest rate deregulation. The study therefore recommends increase in government capital expenditures that will create an enabling environment for the private sector to thrive so that the welfare of the citizenry could be enhanced...
The main objective of this study is to estimate the determinants of the aggregate import demand function for Sudan during the period 1978 to 2014. The year 1978 was chosen because was the first year of devaluation as recommended by the IMF, and the year 2014 where the data were available. The study tests the stationary of individual series namely, domestic income, relative prices and exchange rate using the widely used the Augmented Dickey-Fuller (ADF) and Phillips-Peron (PP) statistics and Johansen co-integration techniques to estimate import demand function in the longrun. The estimated results indicate that there is long-run co-integration relation among the volume of imports, domestic income, relative prices and exchange rate. The results of this study suggest that GDP has greater effect on the quantity of import than the other determinants (price ratio and exchange rate)....
After introducing the inflation expectation, this paper uses the co-integration\ntest and VAR model to analyze the price fluctuation of agricultural products\nand the paper analyzes the relationship between inflation and inflation expectation.\nThe results show that there is no co-integration relationship between\nagricultural product price fluctuation, inflation expectation and inflation, but\nagricultural product price fluctuation is Granger reason of inflation expectation.\nThere is bi-directional Granger causality between inflation expectation\nand inflation. In the short run, there is volatility between the three in the current\nor lag phase 1 to reach the maximum....
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