Current Issue : July - September Volume : 2020 Issue Number : 3 Articles : 5 Articles
With the continuous development of economic globalization and the liberalization\nof Chinaâ??s capital account, and the scale and frequency of international\ncapital flow are constantly increasing. These cross-border capital flows\nnot only promote the domestic economic development, but also bring many\npotential risks to the domestic economic and financial system. Many international\norganizationsâ?? and countriesâ?? views on the capital control also changed,\nand put forwarded the policy framework of capital flow management, including\nmacro prudence and capital flow management. Furthermore, the capital control\npolicy itself and its effect also become the focus of governments and the\nacademia. Based on the establishment of monthly and quarterly capital control\nindicators in 1995-2018, this paper analyzed the characteristics and trends\nof Chinaâ??s capital control policy. The results show that: the intensity of Chinaâ??s\ncapital control policy is fluctuating and decreasing, and the restrictions are\ngradually relaxed, and the development of economic globalization is obviously\naffected by domestic economic environment and international factors....
To compare and analyze the difference between the United States and Chinese\nstock market, the relative variance, correlation, beta, and volatility of different\nstock markets are required. These parameters could help people to make better\ndecisions and risk predictions while investing in China or the United\nStates. The analysis also shows cases and the unique characteristics of both\nthe Chinese and United States stock market, leading to the conclusion that\nthe United States stock market is more mature and stable than the Chinese\nstock market. Through the comparison between the two stock markets, the\nChinese and American economies could be better understood....
The motivation for this study emanates from the perception that the production\nof a quality audit report fosters confidence in financial reports by the issuers\nof those reports. The paper examines specifically the role of corporate\ngovernance in determining the audit quality of firms. The study utilised 71\nnon-financial firms for the periods 2008 to 2015. Audit quality was measured\nusing a dummy variable of â??1â? and â??0â?, with 1 representing the use of a big\nfour auditor by the firm and 0 otherwise. Corporate governance was proxy\nwith board independence measured using the ratio of non-executive directors\nto total directors. The data collected was analysed using the binary regression\nanalysis. The findings reveal that board independence is negatively related to\naudit quality. The study highlights the importance of having proper mix of\ncompetences on the board. The study recommends that the composition of\nnon-executive directors as members of the board should be sustained and\nimproved upon....
The CAPM model was built by William Sharpe in the 1960s and published in 1970 in the book\nPortfolio Theory and Capital Markets. In recognition of his work, he was awarded the 1990\nNobel Prize in Economics. The Capital Asset Pricing Model (CAPM) is an important analytical\ntool in determining the expected return of a potential investor from investing in an entity's\nstock that directly seeks to strike a balance between the return on a particular asset and its\nassociated risk. This fact has contributed to this model being at the heart of corporate finance\nand investment analysis. The model is based on the view that all stock investments are\ninherently risky investments, and in the standard CAPM equation, a distinction is made\nbetween two types of common stock investment risk, non-systemic and systemic risk. The\naim of the research is to indicate that when making foreign investors' decisions about\ninvesting in SEE countries, the standard equation of the CAPM model is not sufficient, as these\ncountries are exposed to numerous risk factors. Therefore, in the continuation of the work,\nthe authors will present, on a practical example of these countries, its modification for the\ncountry risk premium, which will enable foreign investors to understand the risk complex\nand specificity of investing in the shares of SEE issuers. Investors also expect higher returns\non securities, as a compensation for the risks of investing in these countries, which also causes\nthe cost of capital costs to rise in growing markets. The difference in yield that reflects a\ncountry's risk is called the country's risk premium, which will be detailed in the paper....
The effectiveness of the functioning of the transport system is one of the most important factors in the growth of the economies of countries which is manifested in the intensity of the development of economic relations, the transport hubs, the mobility of the population and goods. The transport system creates the conditions for the growth of labor productivity, development and production efficiency, and distribution and consumption forming a highly competitive state economy. The aim of the work is presenting a comprehensive study of the development indicators of the countriesâ?? automobile transport system. The study is based on the structural and dynamic analysis, the use of the Logistics Performance Index (LPI), the analysis of transport safety, and the length of roads and passenger traffics which reflect on the level of automobile infrastructure development. The scientific novelty of the work lies in the substantiation of theoretical guidelines for the transport system study of the various countries using special methods. The proof of scientific novelty is the applicability of research methods to the domestic and foreign economies specifying comparability of indicators in cross-country comparison. The level of length, density and structure of roads, as well as transport costs in various countries of the total GDP are estimated using a number of indicators which reflect the position of the country's transport system and the effectiveness of its functionality. The study has a multidimensional nature including an analysis of Russian and foreign experiences in the development of the transport system, as well as cross-country comparisons between several special indicators....
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