Template-Type: ReDIF-Article 1.0 Author-Name: Ling T. He Author-X-Name-First: Ling T. Author-X-Name-Last: He Title: Emphasis and effectiveness of monetary policy of the Fed: a historical comparative analysis (1871-2013) Abstract: Results of this paper indicate that the effectiveness of monetary policy may reflect changes in policy emphasis on inflation and output growth. The evolution of the unmanaged to managed short-term interest rate as a monetary policy tool demonstrates a continuing correcting process of a biased sensitivity towards output growth in the gold standard era to a more balanced emphasis on price stability and output growth in the modern-Fed period. Evidence of this study suggests that the monetary policy with a more balanced emphasis on inflation and output can enhance the policy effectiveness measured by a simple assessment ratio which links GDP gap and standard deviation of inflation together so that the ratio can directly quantify the Fed's two top policy goals, promoting sustainable output growth and lowering price volatility. Journal: Int. J. of Monetary Economics and Finance Pages: 47-67 Issue: 1 Volume: 10 Year: 2017 Keywords: monetary policy; assessment ratio; policy limitation; Fed; Federal Reserve; interest rates; price stability; output growth; inflation; price volatility; USA; United States. File-URL: http://www.inderscience.com/link.php?id=81283 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:1:p:47-67 Template-Type: ReDIF-Article 1.0 Author-Name: Imed Medhioub Author-X-Name-First: Imed Author-X-Name-Last: Medhioub Author-Name: Lotfi Ben Jedidia Author-X-Name-First: Lotfi Ben Author-X-Name-Last: Jedidia Title: GCC monetary union and the transmission of business cycles: evidence from temporal correlations Abstract: The aim of this paper is to verify the readiness for monetary union among Gulf Cooperation Council (GCC) countries. To do so, we know that business cycle synchronisation is a good tool to test for the possible success of a monetary union. The empirical results for the GCC countries are close to those for the OECD and European Union countries, especially for the case of Saudi Arabia and the UAE. Thus, the economic and financial indicators are positive, implying that the GCC countries are ready for the creation of a monetary union, but political decisions will be more effective in reducing the barriers to the creation of this union. Journal: Int. J. of Monetary Economics and Finance Pages: 1-23 Issue: 1 Volume: 10 Year: 2017 Keywords: monetary union; Gulf Cooperation Council; GCC countries; trade intensity; financial integration; specialisation; temporal correlation; business cycles. File-URL: http://www.inderscience.com/link.php?id=81284 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 Author-Name: Mohamed Ali Azouzi Author-X-Name-First: Mohamed Ali Author-X-Name-Last: Azouzi Author-Name: Anis Jarboui Author-X-Name-First: Anis Author-X-Name-Last: Jarboui Title: CEO emotional intelligence and firm dividend policy: decision tree analysis Abstract: This paper assumes that managers, investors or both behave irrationally. More specifically, it examines the links between managerial emotional characteristics' and firm dividend policy. This stream of research argues whether to distribute dividends or not depends on CEO emotional intelligence level. We introduce an approach based on decision tree analysis technique with a series of semi-directive interviews. The originality of this research paper is guaranteed since it treats the behavioural corporate policy choice in emergent markets. To the best of our knowledge, this is the first study in the Tunisian context that explores such area of research. Our results show that CEO emotional intelligence level encouraged using this leverage to report the decision performance of the business, the application of a dividend distribution policy. Journal: Int. J. of Monetary Economics and Finance Pages: 24-46 Issue: 1 Volume: 10 Year: 2017 Keywords: emotional intelligence; corporate finance; dividend policy; decision tree; CEOs; emerging markets; Tunisia; dividend distribution. File-URL: http://www.inderscience.com/link.php?id=81285 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:1:p:24-46 Template-Type: ReDIF-Article 1.0 Author-Name: Wei-Bin Zhang Author-X-Name-First: Wei-Bin Author-X-Name-Last: Zhang Title: Spatial agglomeration in a monetary multi-regional growth model with urban residential distribution Abstract: The purpose of this study is to examine a dynamic interdependence between national and interregional growth, money, monetary policy, residential structures, spatial amenity, price of goods, land rent, housing rent in a comprehensive analytical framework. The economy consists of multiple regions and each region has industrial and housing sectors. The model is a synthesis of the four models in the growth theory, urban economics and monetary economics in a multi-regional context. Industrial production and capital accumulation follow the Solow model. Regional population distributes over the urban area according to the Alonso model and regional housing production follows the Muth model. The microeconomic foundation for determining time distribution, savings, spatial location and consumption follows the approach proposed by Zhang. We simulate the model and examine effects of changes in some parameters. Journal: Int. J. of Monetary Economics and Finance Pages: 68-95 Issue: 1 Volume: 10 Year: 2017 Keywords: monetary policy; regional growth; urban residential structures; cash-in-advance; CIA approach; spatial agglomeration; economic growth; spatial amenities; goods prices; land rents; housing rents; growth theory; urban economics; monetary economics; cities; industrial production; capital accumulation; regional population distribution; regional housing production; microeconomics; time distribution; savings; spatial location; consumption; simulation. File-URL: http://www.inderscience.com/link.php?id=81286 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:1:p:68-95 Template-Type: ReDIF-Article 1.0 Author-Name: Matiur Rahman Author-X-Name-First: Matiur Author-X-Name-Last: Rahman Author-Name: Muhammad Mustafa Author-X-Name-First: Muhammad Author-X-Name-Last: Mustafa Title: Financial deepening and stock market returns: panel data analyses for selected developed and developing economies Abstract: This paper analyses the effects of stock market turnover and liquidity, as measures of financial deepening, on stock market returns in selected 19 developed and 21 developing countries over 1988-2014 by implementing Pedroni's panel cointegration methodology and panel vector error-correction models. Stock market turnover contributes more to stock market returns than stock market liquidity in both selected developed and developing economies. However, the results are much weaker for developing countries than for developed countries. Journal: Int. J. of Monetary Economics and Finance Pages: 96-109 Issue: 1 Volume: 10 Year: 2017 Keywords: financial deepening; stock market returns; stock market turnover; stock market liquidity; panel cointegration; stock markets; developing countries; developed countries. File-URL: http://www.inderscience.com/link.php?id=81287 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:1:p:96-109 Template-Type: ReDIF-Article 1.0 Author-Name: Wiem Ben Jabra Author-X-Name-First: Wiem Ben Author-X-Name-Last: Jabra Author-Name: Zouheir Mighri Author-X-Name-First: Zouheir Author-X-Name-Last: Mighri Author-Name: Faysal Mansouri Author-X-Name-First: Faysal Author-X-Name-Last: Mansouri Title: The determinants of credit and insolvency risk of European commercial banks: a dynamic panel data analysis Abstract: This paper investigates the impact of both bank-specific and macroeconomic determinants on banking risk. A dynamic panel data regression analysis is applied to a large sample of 280 commercial banks operating in the euro area during the period 2003-2013. The main empirical results are as follows: (i) Economic growth, inflation, regulatory quality, insurance coverage and bank size are inversely and significantly related to credit risk, while capitalisation and competition are positively and significantly related to credit risk. (ii) Economic growth, inflation, capitalisation and regulatory quality are positively related to insolvency risk, while bank size, competition and deposit insurance coverage are negatively associated to insolvency risk. Journal: Int. J. of Monetary Economics and Finance Pages: 111-143 Issue: 2 Volume: 10 Year: 2017 Keywords: bank risk; credit risk; insolvency risk; dynamic panel data; bank-specific determinants; macroeconomic determinants. File-URL: http://www.inderscience.com/link.php?id=84208 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:2:p:111-143 Template-Type: ReDIF-Article 1.0 Author-Name: Boniface Pepino Yemba Author-X-Name-First: Boniface Pepino Author-X-Name-Last: Yemba Title: Tax and monetary policy rules in a small open economy with disaggregated government purchases Abstract: This paper aims to evaluate the impact of tax and monetary policy rules with disaggregated government purchases on welfare, real exchange rate and business cycle in a small open economy using a new-Keynesian dynamic stochastic general equilibrium (DSGE) framework. The model generate the government purchases-real exchange rate puzzle. In this sense, an increase in both government consumption and investment depreciates the real exchange rate. Moreover, the decomposed government purchases have positive impact on welfare for any policy rules. There are three mechanisms by which the decomposed government purchases depreciate the exchange rate. Firstly, the public investment improves both the marginal productivity of labour and capital stock, which have a positive impact on labour supply, private capital stock, and output. The second channel is a direct effect of the government consumption on real exchange rate through international risk sharing. The third channel is the complement relationship between private consumption and government consumption. Journal: Int. J. of Monetary Economics and Finance Pages: 144-182 Issue: 2 Volume: 10 Year: 2017 Keywords: open economy; fiscal policy; monetary policy; determination of interest rate rules; business cycles. File-URL: http://www.inderscience.com/link.php?id=84210 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:2:p:144-182 Template-Type: ReDIF-Article 1.0 Author-Name: Stuart J. Fowler Author-X-Name-First: Stuart J. Author-X-Name-Last: Fowler Author-Name: Jennifer J. Fowler Author-X-Name-First: Jennifer J. Author-X-Name-Last: Fowler Title: Does the FED care about income inequality? A quantitative examination Abstract: We model various policy rules in settings that have non-trivial impacts on inequality. The policy rule that best describes the data is one that incorporates the Gini as an important component. In this case, a temporary and unexpected change to a more accommodative policy leads to a temporary improvement in inequality. Additionally, when there is deterioration in inequality, policy becomes more accommodative with a lag. For most calibrations, the reactionary policy rule benefits the workers at the cost of the capitalists; lifetime consumption of the worker is made smoother which increases their elasticity for labour resulting in a destabilised economy that is costly to the capital owners. Journal: Int. J. of Monetary Economics and Finance Pages: 183-205 Issue: 2 Volume: 10 Year: 2017 Keywords: inflation; income distribution; heterogeneous agents; inequality; accommodative monetary policy; VAR; Gini. File-URL: http://www.inderscience.com/link.php?id=84211 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:2:p:183-205 Template-Type: ReDIF-Article 1.0 Author-Name: Chinazaekpere Nwani Author-X-Name-First: Chinazaekpere Author-X-Name-Last: Nwani Author-Name: Chijioke Okogbue Author-X-Name-First: Chijioke Author-X-Name-Last: Okogbue Title: Oil price, macroeconomic environment and stock market performance in an oil-exporting country: evidence from Nigeria Abstract: This study examines the dynamic interaction between indicators of macroeconomic environment, oil price and stock market performance in Nigeria from 1985 to 2014 using the autoregressive distributed lag (ARDL) bounds testing approach to cointegration analysis. The results suggest the existence of a long-run equilibrium relationship between indicators of macroeconomic environment, oil price and stock market performance in Nigeria. Stock market performance is found to be significantly related to movements in oil price in the long-run as well as in the short-run. The long-run influence of oil price on the Nigerian macroeconomic environment is found to be stronger than the short-run effect with all the indicators of the macroeconomic environment (exchange rate, inflation rate and broad money supply) responding significantly to oil price in the long-run. Journal: Int. J. of Monetary Economics and Finance Pages: 206-223 Issue: 2 Volume: 10 Year: 2017 Keywords: oil price; macroeconomic environment; Nigerian stock market; exchange rate; inflation rate; broad money (M2) supply; ARDL-bounds testing approach. File-URL: http://www.inderscience.com/link.php?id=84212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:2:p:206-223 Template-Type: ReDIF-Article 1.0 Author-Name: Veronika Solilová Author-X-Name-First: Veronika Author-X-Name-Last: Solilová Author-Name: Danuše Nerudová Author-X-Name-First: Danuše Author-X-Name-Last: Nerudová Title: Safe harbours for intra-group loans in Eurozone: experience from selected countries Abstract: Generally, the application of the arm's length principle is a resource-intensive process, because it may impose a heavy administrative burden on taxpayers and tax administrations. With regard to financing activities, intra-group financing has become a very popular tax planning instrument, which has been subjected to scrutiny by both tax authorities and the Base Erosion and Profit Shifting project. Therefore, when assessing the arm's length interest rate for financing arrangements, it is necessary to analyse the various factors and also to comply with thin capitalisation rules if they are implemented. However, a few countries introduced safe harbours that ensure the elimination of other factors of comparability if an interest rate falls within such set range so that the greater simplicity and the reduction of compliance burden will be received. The proposal of safe harbours for intra-group loans in Eurozone was performed based on the experiences in Switzerland, the USA and Australia. Journal: Int. J. of Monetary Economics and Finance Pages: 341-352 Issue: 3/4 Volume: 10 Year: 2017 Keywords: transfer pricing; safe harbours; arm's length principle; base erosion and profit shifting project; loans; Euribor; Eurozone; Switzerland; USA; Australia. File-URL: http://www.inderscience.com/link.php?id=87472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:341-352 Template-Type: ReDIF-Article 1.0 Author-Name: Gurmeet Singh Author-X-Name-First: Gurmeet Author-X-Name-Last: Singh Title: A study on analysis of the determinants of capital structure with special focus on automobile sector of India Abstract: The choices of capital structure have been the most important choices to be taken by the finance professionals in a corporate sector. Capital structure has fascinated intellectual attention in company finance literature in last few years. However, in the context of financial sector particularly in automobile sector, it has received a petite attention. This study scrutinises the effect of firm level individuality on capital structure of listed automobile companies of India from 2008 to 2014. Ordinary least square regression study indicates that risk, tangibility, size, liquidity and profitability are significant determinants of capital structure of automobile firms of India. In addition, the study also indicates that profitable, more liquid, more tangible and risky automobile firms focus on equity than debt financing or preserved earnings. Thus, the finance executives of automobile companies ought to put emphasis on financing of equity or preserved earnings for the operations of their firms. Journal: Int. J. of Monetary Economics and Finance Pages: 227-234 Issue: 3/4 Volume: 10 Year: 2017 Keywords: capital structure; determinants; automobile companies; India. File-URL: http://www.inderscience.com/link.php?id=87473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:227-234 Template-Type: ReDIF-Article 1.0 Author-Name: Zaidirina Author-X-Name-First: Author-X-Name-Last: Zaidirina Author-Name: Lindrianasari Author-X-Name-First: Author-X-Name-Last: Lindrianasari Author-Name: Satria Bangsawan Author-X-Name-First: Satria Author-X-Name-Last: Bangsawan Title: Implementation of corporate governance and mandatory disclosure in the Indonesian banking sector: good news or bad news Abstract: This research examines whether the implementation of corporate governance and mandatory disclosure in the Indonesian banking sector is good or bad. The findings are expected to have value in decision making for various users and to transform corporate governance from a curative action into a corporate culture/value based on the good corporate governance principle, which runs systematically and requires support from internal and external factors. Secondary data from the global financial crisis (2007-2009) are collected through purposive sampling. Multiple regression analysis is performed to test the hypothesis for effects among managerial ownership, audit committee, independent commissioner, mandatory disclosure, return on equity (ROE), return on assets (ROA), non-performing loans (NPL) and rentability. Mandatory disclosure positively affects ROA, independent commissioners and mandatory disclosure positively affects NPL, and independent commissioner and mandatory disclosure negatively affect rentability. Journal: Int. J. of Monetary Economics and Finance Pages: 281-294 Issue: 3/4 Volume: 10 Year: 2017 Keywords: corporate governance monitoring mechanism; mandatory disclosure; corporate performance; rentability. File-URL: http://www.inderscience.com/link.php?id=87474 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:281-294 Template-Type: ReDIF-Article 1.0 Author-Name: Jaja Suteja Author-X-Name-First: Jaja Author-X-Name-Last: Suteja Author-Name: Ardi Gunardi Author-X-Name-First: Ardi Author-X-Name-Last: Gunardi Author-Name: R. Avianty Octavia Author-X-Name-First: R. Avianty Author-X-Name-Last: Octavia Title: Predicting the financial distress of Indonesian manufacturing companies: an application of the multinomial logit model Abstract: This study aims to provide empirical evidence on the factors influencing a company's financial distress. This study examines the role of financial ratios attained from financial statements in predicting the financial distress of manufacturing companies listed in the Indonesia Stock Exchange from 2009 to 2011. The research sample consists of a group of 100 healthy companies, the group of negative net income companies that experience distress for two consecutive years consists of 14 companies, and the group of negative equity book value that experiences financial distress for two consecutive years consists of five companies. The multinomial logit regression was used to test the hypothesis. Results indicate that financial ratios attained from financial statements, namely, profit margin ratio, profitability, and financial leverage, are significant variables in predicting the financial distress of manufacturing companies listed in the Indonesia stock exchange. Journal: Int. J. of Monetary Economics and Finance Pages: 250-256 Issue: 3/4 Volume: 10 Year: 2017 Keywords: financial distress prediction; financial ratios; financial statements; multinomial logit; Indonesian manufacturing companies. File-URL: http://www.inderscience.com/link.php?id=87475 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:250-256 Template-Type: ReDIF-Article 1.0 Author-Name: Usanee Aimsiranun Author-X-Name-First: Usanee Author-X-Name-Last: Aimsiranun Title: Labour mobility in the European Union: What can ASEAN learn? Abstract: Ensuring free flow of skilled labour among member states is a necessary step in ASEAN's effort to establish the ASEAN economic community (AEC) and to transform the region into a single market and production base. In this regard, the paper explores the European Union (EU) labour mobility regime in order to draw lessons for ASEAN. After examining the EU legal framework as well as its differentiated integration mechanism to accommodate the diversity among member states, the paper proposes some possible enhancements for the ASEAN legal framework to enable effective intra-regional flow of skilled labour in the AEC. Journal: Int. J. of Monetary Economics and Finance Pages: 366-378 Issue: 3/4 Volume: 10 Year: 2017 Keywords: labour mobility; European Union; AEC; ASEAN economic community. File-URL: http://www.inderscience.com/link.php?id=87476 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:366-378 Template-Type: ReDIF-Article 1.0 Author-Name: Irma Author-X-Name-First: Author-X-Name-Last: Irma Author-Name: Olivia Idrus Author-X-Name-First: Olivia Author-X-Name-Last: Idrus Title: The effect of corporate governance's application on banks' performance: empirical study of banks listed on the Indonesian Stock Exchange Abstract: This study aimed to examine the effect of corporate governance indicators, e.g., the board of directors, audit committee, and audit quality on bank's performance. This study used 30 banks listed on the Indonesia Stock Exchange (IDX) in the year of 2009-2010 as samples. The results reveal that the board of directors as one of the corporate governance indicators has a significantly positive correlation to banks' performance. As for the audit committee indicator, the result reveals a positive but insignificant effect on banks' performance. Meanwhile, a corporate governance indicator of audit quality has a significant positive relationship to the performance of the bank. This is consistent with the previous studies. It is concluded that the higher or better functioning the board of directors, audit committee and audit quality in the bank, the better the performance of the bank. Journal: Int. J. of Monetary Economics and Finance Pages: 270-280 Issue: 3/4 Volume: 10 Year: 2017 Keywords: audit committee; audit quality; bank performance; board of directors; corporate governance. File-URL: http://www.inderscience.com/link.php?id=87477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:270-280 Template-Type: ReDIF-Article 1.0 Author-Name: Mautia Kusuma Wardani Author-X-Name-First: Mautia Kusuma Author-X-Name-Last: Wardani Author-Name: Sylviana Maya Damayanti Author-X-Name-First: Sylviana Maya Author-X-Name-Last: Damayanti Title: Debt or equity? Optimal capital structure in Indonesia's construction sector companies listed in Indonesia stock exchange (IDX) Abstract: Government's plan of more focus on infrastructure is an opportunity for construction sector. With the increase of opportunities in the construction sector, companies in the construction sector will attempt to achieve an optimal capital structure in order to continue the company's operations and to develop their business. Optimal capital structure can be used to find out composition of debt and equity in order to maximise firm value. To see the composition of optimal debt, the simulation is done by using 0 until 90% debt composition. Earnings before interest and tax (EBIT) as simulation calculations basic obtained from each company's 2014 Annual Report. Optimal debt composition resulted from simulation are Acset 30%, Adhi 20%, Nusa 20%, Pembangunan 30%, Surya 50%, Total 30%, Waskita 20% and Wijaya 50%. On average, construction sector companies should have 30% composition of debt, but it depends on EBIT, interest coverage ratio and cost of debt. Journal: Int. J. of Monetary Economics and Finance Pages: 235-249 Issue: 3/4 Volume: 10 Year: 2017 Keywords: optimal capital structure; WACC; weighted average cost of capital; cost of debt; cost of equity; maximising firm value. File-URL: http://www.inderscience.com/link.php?id=87478 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:235-249 Template-Type: ReDIF-Article 1.0 Author-Name: Hasan Mukhibad Author-X-Name-First: Hasan Author-X-Name-Last: Mukhibad Author-Name: Kiswanto Author-X-Name-First: Author-X-Name-Last: Kiswanto Author-Name: Prabowo Yudho Jayanto Author-X-Name-First: Prabowo Yudho Author-X-Name-Last: Jayanto Title: An analysis on financial and social performance of Islamic banks in Indonesia Abstract: This study is conducted to analyse the implementation of good corporate governance (GCG), company size (Size), and financial deposit ratio (FDR) upon bank's financial and social performance. The social performance is measured using Zakah Performance (ZP) and Qardul hasan Performance (QP) variables. The financial performance is measured using return on assets (ROA) and return on equity (ROE) variable. Samples are Islamic banks in Indonesia determined based on a purposive sampling method. Data are analysed using multiple regression and classical assumption which include multicollinearity test. Results of the study show that the variables of Islamic Corporate Index (IDGI), Size, and FDR have significant impacts on ROA, ZP, and QP. Partially, by 10% significance level, size variable has a significant influence on ROA and ZP while IDGI variable has a significant influence on ZP and QP variable. This research suggests that Islamic banks should improve the implementation of GCG to increase bank social performance. Journal: Int. J. of Monetary Economics and Finance Pages: 295-308 Issue: 3/4 Volume: 10 Year: 2017 Keywords: IDGI; Islamic Corporate Index; Zakah performance; Qardul hasan performance. File-URL: http://www.inderscience.com/link.php?id=87479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:295-308 Template-Type: ReDIF-Article 1.0 Author-Name: Magdeline M. Maepa Author-X-Name-First: Magdeline M. Author-X-Name-Last: Maepa Author-Name: Paul-Francois Muzindutsi Author-X-Name-First: Paul-Francois Author-X-Name-Last: Muzindutsi Title: Analysis of short- and long-run interactions between real exchange rate and private domestic investment in South Africa Abstract: This study analysed the short- and long-run interactions between the real exchange rate and private domestic investment in South Africa, during the period of a free-floating exchange rate system. Vector autoregressive (VAR) model, a multivariate Johansen co-integration approach and Granger causality test were used to analyse quarterly observations from 1994 to 2014. Co-integration analysis found no evidence supporting the long-run relationship between real exchange rate and private domestic investment in South Africa. However, short-run analysis showed that both variables are mostly driven by their own innovation with short-run changes in real exchange rate being affected by changes in private domestic investment. Granger causality test found a one-way causal relationship from private domestic investment to real exchange rate; implying that previous changes in private domestic investment lead to changes in current real exchange rate. This study concluded that growth in South African private domestic investments is linked with the depreciation of the domestic currency. Journal: Int. J. of Monetary Economics and Finance Pages: 353-365 Issue: 3/4 Volume: 10 Year: 2017 Keywords: exchange rate; co-integration; domestic investment; South Africa; VAR model. File-URL: http://www.inderscience.com/link.php?id=87480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:353-365 Template-Type: ReDIF-Article 1.0 Author-Name: Citra Sukmadilaga Author-X-Name-First: Citra Author-X-Name-Last: Sukmadilaga Author-Name: M. Shamsher Author-X-Name-First: M. Author-X-Name-Last: Shamsher Author-Name: Taufiq Hassan Author-X-Name-First: Taufiq Author-X-Name-Last: Hassan Title: Ownership structures and productivity in Indonesia and Malaysia Abstract: The relationship between ownership structures and company performance has been issue of interest among academics, investors and policy-makers. So far, there are still inconclusive findings that family and state ownership giving positive or negative impact on firm performance. This study employed technical efficiency and Malmquist productivity index to measure firm performance. Period of this study will be conduct from 1992 to 2007. Result of this study revealed that Technical efficiency study in Indonesia showed that state owned enterprises (SOEs) had better performance than family owned enterprises (FOEs) since SOEs' performance increased more stably during research period. Meanwhile Malaysia-based technical efficiency study demonstrated that FOEs samples had lower efficiency level than SOEs, which performed a little enhancement. In term of productivity, Indonesian FOEs had become more productive compare with SOEs during three sub-periods. On the other hand, Malaysian FOEs and SOEs had improved from time to time within the three sub-periods. Journal: Int. J. of Monetary Economics and Finance Pages: 322-340 Issue: 3/4 Volume: 10 Year: 2017 Keywords: ownership structures; technical efficiency and Malmquist productivity index; FOEs; family owned enterprises; SOEs; state owned enterprises. File-URL: http://www.inderscience.com/link.php?id=87481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:322-340 Template-Type: ReDIF-Article 1.0 Author-Name: Khomsiyah Author-X-Name-First: Author-X-Name-Last: Khomsiyah Author-Name: Lindrianasari Author-X-Name-First: Author-X-Name-Last: Lindrianasari Title: The influence of accounting education on the prospects of becoming a member of the chartered accountant profession: opportunities, challenges and expectations of Indonesia towards the ASEAN economic community Abstract: The objective of this study is to examine the correlation between one's education and the likelihood of becoming a chartered accountant in Indonesia. This study also identifies the opportunities, challenges and expectations being faced by accountants in Indonesia in the context of the implementation of ASEAN Economic Community (AEC). The respondents are drawn from accounting community members dispersed across Indonesia. Mixed methods are applied to draw inferences from the research data collected. The variables analysed include the education process (university where S1 was completed, time since graduation, employment and occupation) and CA membership. These are assessed through the Spearman's rho correlation analysis. The results show that the length of time since graduation, type of employment and occupation are correlated with CA membership, whereas the university where the respondents had completed S1 is not. The challenges being faced by the profession and the expectations of members of the accounting profession are also described. Journal: Int. J. of Monetary Economics and Finance Pages: 257-269 Issue: 3/4 Volume: 10 Year: 2017 Keywords: accounting education; opportunities; challenges; expectation; AEC; ASEAN Economic Community; chartered accountant. File-URL: http://www.inderscience.com/link.php?id=87482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:257-269 Template-Type: ReDIF-Article 1.0 Author-Name: V. Santi Paramita Author-X-Name-First: V. Santi Author-X-Name-Last: Paramita Author-Name: Bahri Jafar Author-X-Name-First: Bahri Author-X-Name-Last: Jafar Author-Name: Ifan Wicaksana Siregar Author-X-Name-First: Ifan Wicaksana Author-X-Name-Last: Siregar Title: Market timing and stock selection performance of mutual fund in bull and bear market condition Abstract: This study aims to measure the performance of stock mutual fund in Indonesia by using a Paramita model. This study used a sample of 30 stock mutual funds, which were actively traded in the period 2008-2012. The study period was divided into two periods: economic crisis and after economic crisis. The results showed that on the crisis period, during the bull market, the majority of stock mutual funds in Indonesia have the best performance of market timing and stock selection. While in the bear market, several mutual fund only have the best performance of market timing, but bad performance of stock selections. But on after crisis period, most of the mutual funds indicate bad performance of market timing in bull and bear market conditions. But in the bull market conditions, most of the mutual funds were showed a good performance of stock selections. Journal: Int. J. of Monetary Economics and Finance Pages: 309-321 Issue: 3/4 Volume: 10 Year: 2017 Keywords: mutual fund performance; bull and bear market; market timing; stock selection. File-URL: http://www.inderscience.com/link.php?id=87483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:309-321 Template-Type: ReDIF-Article 1.0 Author-Name: Amr Sadek Hosny Author-X-Name-First: Amr Sadek Author-X-Name-Last: Hosny Title: Does inflation targeting lower inflation? If yes, then when? Abstract: Using a dataset of 170 developing and developed countries over the 1990-2011 period, this paper attempts an answer to the following two questions: (1) Does inflation targeting (IT) work? And (2) When does inflation targeting work? Using various propensity score matching (PSM) techniques, it is shown that IT does have a causal effect on inflation, thus improving on existing literature which mainly used OLS and/or panel methodologies. The more important contribution, however, is that we study the effect of the initial inflation rate on effectiveness of IT. Existing literature has loosely argued that IT would only be effective if initial inflation is low, while country experience suggests that IT is only adopted when initial inflation is high. Using quantile treatment effects, it is shown that IT is more effective in lowering inflation rates when initial inflation is high to begin with. Journal: Int. J. of Monetary Economics and Finance Pages: 379-403 Issue: 3/4 Volume: 10 Year: 2017 Keywords: inflation targeting; propensity score matching; PSM; quantile treatment effects. File-URL: http://www.inderscience.com/link.php?id=87484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:379-403 Template-Type: ReDIF-Article 1.0 Author-Name: Seo-Hyeong Lee Author-X-Name-First: Seo-Hyeong Author-X-Name-Last: Lee Author-Name: Ki-Dong Lee Author-X-Name-First: Ki-Dong Author-X-Name-Last: Lee Author-Name: Yoon Chul Kim Author-X-Name-First: Yoon Chul Author-X-Name-Last: Kim Title: The effects of interest rates, stock prices and trading day to the duration of daily exchange rate pattern: using survival analysis Abstract: This paper examined the predictability of daily exchange rates by identifying the factors that affected the duration of pattern, as well as estimating the probability of escape from the current variation pattern of exchange rates. Survival analysis technique was applied to 12 major daily currency/dollar exchange rates for the period from January 1999 to September 2012. The results show that the US dollar exchange rate is stable against major currencies and has a cyclical pattern, with both the appreciation and depreciation phases containing almost the same number of events. The cumulative probability for the persistence of an exchange rate cycle for five days decreased sharply to 5%. Interestingly, the study confirmed that the duration of declining interest rates, the duration of declining stock prices, and whether the first day of the present cycle follows a non-business day have major statistically significant effects on the duration of an exchange rate pattern. Journal: Int. J. of Monetary Economics and Finance Pages: 404-425 Issue: 3/4 Volume: 10 Year: 2017 Keywords: exchange rate; survival analysis; hazard rate; duration; cumulative probability. File-URL: http://www.inderscience.com/link.php?id=87485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:404-425