Template-Type: ReDIF-Article 1.0 Author-Name: Issam Tlemsani Author-X-Name-First: Issam Author-X-Name-Last: Tlemsani Title: Stock returns indicator: case of Tadawul Abstract: The key objective of this research is to identify the most suitable financial variable indicator of future stock returns. Therefore, four financial variables are analysed to determine which variable leads to the highest stock returns; book to market value of equity (BMVE), sales to price (SP), debt equity (DE) and firm size (FS). A sample of 30 listed companies in KSA stock market were randomly selected from five industries. Regression analysis is applied to scrutinise the correlation between stock returns and the selected financial variables. The key finding of this research is that the firm size (size effect) is a useful explanation for stock returns in the KSA stock market. Our conclusion is similar to Garza-Gómez et al.'s (1998) study of Japanese stock market data, Senthilkumar's (2009) study on a selected Indian stock market, Xing Hu et al.'s (2019) investigation of size effect on Chinese stock returns and (Banz, 1981). Journal: Int. J. of Monetary Economics and Finance Pages: 1-15 Issue: 1 Volume: 13 Year: 2020 Keywords: stock returns; firm size; Tadawul; stock returns indicators; values factors; financial variable. File-URL: http://www.inderscience.com/link.php?id=105328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Syukur Author-X-Name-First: Muhammad Author-X-Name-Last: Syukur Author-Name: Dej-anan Bungkilo Author-X-Name-First: Dej-anan Author-X-Name-Last: Bungkilo Title: The aftermaths of acquisition in Indonesia Abstract: Indonesia is entering a new phase of the business competition after the launching of the Government Regulations No. 57 of 2010 about Mergers and Acquisition. A drastic inclination in numbers of acquisition deals indicates that the acquisition is a technique to show power and dignity yet might result in losing focus on improving the operating performance. Therefore, this paper aims to examine the post-acquisition operating performance of acquirer companies. Their financial performances are reflected by financial ratios which are calculated based on the accounting information from the financial statements. Data are gathered from one year to three years prior and following acquisition years and compared the significance using the Wilcoxon signed-rank test. The total population is 322 acquisition transactions. The results show that asset efficiency, the level of debt, and profitability worsen after the acquisition deals, whereas liquidity and stock price are not impacted. Journal: Int. J. of Monetary Economics and Finance Pages: 16-33 Issue: 1 Volume: 13 Year: 2020 Keywords: acquisition; assets efficiency; financial performance; financial ratio analysis; leverage; liquidity; market prospect; merger; profitability; Indonesia. File-URL: http://www.inderscience.com/link.php?id=105331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:1:p:16-33 Template-Type: ReDIF-Article 1.0 Author-Name: Eissa A. Al-Homaidi Author-X-Name-First: Eissa A. Author-X-Name-Last: Al-Homaidi Author-Name: Faozi A. Almaqtari Author-X-Name-First: Faozi A. Author-X-Name-Last: Almaqtari Author-Name: Ali T. Yahya Author-X-Name-First: Ali T. Author-X-Name-Last: Yahya Author-Name: Amgad S.D. Khaled Author-X-Name-First: Amgad S.D. Author-X-Name-Last: Khaled Title: Internal and external determinants of listed commercial banks' profitability in India: dynamic GMM approach Abstract: This study aims to examine the impact of internal and external determinants of 37 commercial banks' profitability listed on Bombay stock exchange (BSE), India for a period from 2008 to 2017. Both static models (pooled, fixed and random effects) and generalised method of moments (GMM) are used. The results show that bank size, assets quality, liquidity, assets management, and net interest margin are important internal determinants which affect ROA. Capital adequacy, deposits, operation efficiency, gross domestic product and inflation rate are found to have a negative significant impact on ROA. Further, the results indicate that capital adequacy, bank size, operation efficiency, gross domestic product and inflation rate have a significant negative influence on ROE. However, assets quality and assets management exhibit a positive effect on ROE but liquidity, deposits, net interest margin, and non-interest income have an insignificant impact on ROE. Journal: Int. J. of Monetary Economics and Finance Pages: 34-67 Issue: 1 Volume: 13 Year: 2020 Keywords: internal determinants; external determinants; banks' profitability; panel data; GMM; India. File-URL: http://www.inderscience.com/link.php?id=105333 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:1:p:34-67 Template-Type: ReDIF-Article 1.0 Author-Name: Max Kwong Author-X-Name-First: Max Author-X-Name-Last: Kwong Author-Name: David Leung Author-X-Name-First: David Author-X-Name-Last: Leung Author-Name: Alfred Wong Author-X-Name-First: Alfred Author-X-Name-Last: Wong Author-Name: Jiayue Zhang Author-X-Name-First: Jiayue Author-X-Name-Last: Zhang Title: Interpreting survey-based federal funds rate forecasts: how accurate are they in reflecting market expectations? Abstract: What the market thinks is most likely to occur is not necessarily what the market expects to occur. This paper explains why most of the surveys of federal funds rate outlook deviate substantially from the true market expectation, especially as the forecast horizon increases. Surveys often ask participants for their forecast of the 'most likely outcome', which differs from the expected outcome. The latter has to take into account not only the most likely outcome but also those less likely to occur, that is, weighing all the possible outcomes by their probabilities. In a tightening (easing) cycle, the most likely outcome tends to be higher (lower) than the expected outcome, leading to a false impression that the fed will tighten (ease) more than what the market expects. It is only when the chances of rate hikes and rate cuts are roughly balanced that surveys reflect the true market expectation. Journal: Int. J. of Monetary Economics and Finance Pages: 68-88 Issue: 1 Volume: 13 Year: 2020 Keywords: federal funds rate; survey-based forecast; market-based forecast; interest rate expectation. File-URL: http://www.inderscience.com/link.php?id=105335 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:1:p:68-88 Template-Type: ReDIF-Article 1.0 Author-Name: Kashif Munir Author-X-Name-First: Kashif Author-X-Name-Last: Munir Author-Name: Nimra Riaz Author-X-Name-First: Nimra Author-X-Name-Last: Riaz Title: Dynamics of inflation and inflation uncertainty in Pakistan Abstract: This study analyses the dynamics of inflation and inflation uncertainty in Pakistan, while inflation has been disaggregated into food inflation and non-food inflation from July 1998 to March 2018. The study follows two step procedure, an ARMA-GARCH model is used in the first step with the generated conditional variance used as measure of inflation uncertainty, while Granger causality test is performed in the second step to find the relationship between the variables. Mean equation of inflation, food inflation, and non-food inflation show that past inflation has significant effect on current inflation, while variance equation shows high persistence of inflation. Unidirectional causality exists from inflation to inflation uncertainty as well as from food inflation to food inflation uncertainty and supports the Friedman-Ball hypothesis. Monetary authorities have to adopt price stability as the primary objective, while core inflation has to be taken as a target of monetary policy, instead of headline inflation. Journal: Int. J. of Monetary Economics and Finance Pages: 130-145 Issue: 2 Volume: 13 Year: 2020 Keywords: inflation; inflation uncertainty; ARMA; autoregressive moving average; ARCH; autoregressive conditional heteroscedasticity; GARCH; generalised autoregressive conditional heteroscedasticity; Pakistan. File-URL: http://www.inderscience.com/link.php?id=107679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:2:p:130-145 Template-Type: ReDIF-Article 1.0 Author-Name: Haochen Guo Author-X-Name-First: Haochen Author-X-Name-Last: Guo Title: Analysing the impact of corporate stock buybacks in China and the US equity markets Abstract: This paper contributes to the comparative analysing the impact of corporate stock buybacks in China and the US equity markets. The reason to compare two equity markets with buybacks - in the US equity market, the largest source of the US equity demand has consistently been buybacks. However, in the China equity market, China's A-share market conducted a surging number of buybacks that began in 2018, it believes showed corporations' strong intention of bottom fishing and would support stock value. Based on that, this paper analyses the motivation and status analysis of buybacks in China and the US equity markets. Further, according to the financial assessment of two big corporate buybacks in China and the US equity markets as case studies. Therefore, demand for buybacks in the equity market still large, it suggests confidence in a corporation's performance buybacks is one way for corporations to reward shareholders and rejuvenate bull market. Journal: Int. J. of Monetary Economics and Finance Pages: 89-110 Issue: 2 Volume: 13 Year: 2020 Keywords: buybacks; buyback blackout period; dividend policy; EPS; earning per share; DuPont analysis; equity market. File-URL: http://www.inderscience.com/link.php?id=107687 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:2:p:89-110 Template-Type: ReDIF-Article 1.0 Author-Name: Yomna Abdulla Author-X-Name-First: Yomna Author-X-Name-Last: Abdulla Author-Name: Rabab Ebrahim Author-X-Name-First: Rabab Author-X-Name-Last: Ebrahim Title: Stock liquidity and capital structure: evidence from Saudi listed firms Abstract: In this paper, we investigate the impact of stock liquidity on the capital structure of Saudi non-financial firms during the period 2007-2018. Prior literature indicates that firms with more liquid stocks tend to prefer equity over debt, due to their lower cost of equity. Our findings do not support this argument, as we show that stock liquidity has an insignificant effect on leverage. The results persist after accounting for the possible endogeneity of stock liquidity in the leverage model. We also find an insignificant impact of firm size on the relation between stock liquidity and leverage. Journal: Int. J. of Monetary Economics and Finance Pages: 111-129 Issue: 2 Volume: 13 Year: 2020 Keywords: capital structure; emerging market; leverage; Saudi Arabia; stock liquidity; corporate finance; financial policy; Tadawul; asymmetric information. File-URL: http://www.inderscience.com/link.php?id=107688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:2:p:111-129 Template-Type: ReDIF-Article 1.0 Author-Name: Petra Růčková Author-X-Name-First: Petra Author-X-Name-Last: Růčková Author-Name: Daniel Stavárek Author-X-Name-First: Daniel Author-X-Name-Last: Stavárek Title: Are there differences in the use of debt capital in enterprises of different size? Abstract: The paper deals with the influence of selected determinants on the rate of external financing sources use. The reason for issuing this topic is the fact that the literature declares different opportunities for funds being drawn from the financial market by enterprises of different size. The aim of this paper is, based on the chosen determinants, to assess whether there exist differences in debt capital usage as it comes to chosen enterprises of different size in CEE countries. Emphasis is placed on the differences between medium-sized and large-sized enterprises. The analysis involves an impact of capital price, total rate of return and fixed assets ratio on debt usage expressed by debt/equity ratio. As for methodology, the panel regression by GMM method is used. The results of the analysis show the preference of the pecking order theory for large enterprises. For medium-sized enterprises, the results were not clear. Journal: Int. J. of Monetary Economics and Finance Pages: 163-176 Issue: 2 Volume: 13 Year: 2020 Keywords: financial sources; capital structure; enterprise size; capital price; ROA; return on assets; fixed assets; GMM method. File-URL: http://www.inderscience.com/link.php?id=107698 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:2:p:163-176 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Tahir Author-X-Name-First: Muhammad Author-X-Name-Last: Tahir Author-Name: Haslindar Ibrahim Author-X-Name-First: Haslindar Author-X-Name-Last: Ibrahim Author-Name: Abdul Hadi Zulkafli Author-X-Name-First: Abdul Hadi Author-X-Name-Last: Zulkafli Author-Name: Muhammad Mushtaq Author-X-Name-First: Muhammad Author-X-Name-Last: Mushtaq Title: Impact of repatriation taxes and earned/contributed capital mix on dividend repatriation policy: the moderating role of firm financial maturity Abstract: This study aims to examine the effect of repatriation taxes and earned/contributed capital mix on the dividend repatriation policy of the foreign subsidiaries of US multinational corporations (MNCs) worldwide. In addition, it investigates the moderating effect of firm financial maturity on the relationship between repatriation taxes and dividend repatriation policy. The present study uses secondary data to evaluate the impact of various explanatory variables on dividend repatriation policy over 2006-2016. The difference generalised method of moments (GMM) estimator is applied to estimate the dynamic dividend repatriation models. The results suggest a significant inverse relationship between repatriation taxes and dividend repatriation policy. Further, a significant positive effect of the earned/contributed capital mix on the dividend repatriation policy is identified. Moreover, results indicate that firm financial maturity does not play a statistically significant role in minimising the negative effect of the repatriation tax rate on dividend repatriation policy. Journal: Int. J. of Monetary Economics and Finance Pages: 146-162 Issue: 2 Volume: 13 Year: 2020 Keywords: repatriation taxes; earned/contributed capital mix; dividend repatriation policy; firm financial maturity; multinational corporations; foreign subsidiaries; parent company; moderating effect; generalised method of moments; USA. File-URL: http://www.inderscience.com/link.php?id=107699 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:2:p:146-162 Template-Type: ReDIF-Article 1.0 Author-Name: Sylviana Maya Damayanti Author-X-Name-First: Sylviana Maya Author-X-Name-Last: Damayanti Author-Name: Ditasa Madira Author-X-Name-First: Ditasa Author-X-Name-Last: Madira Author-Name: Raden Aswin Rahadi Author-X-Name-First: Raden Aswin Author-X-Name-Last: Rahadi Author-Name: Arinda Mentari Putri Author-X-Name-First: Arinda Mentari Author-X-Name-Last: Putri Title: Socio-economic, information and communication technology, and banking performance for financial inclusion index in Indonesia Abstract: The government created a national financial inclusion strategy to improve the Financial Inclusion Index in Indonesia. Financial Inclusion Index of Indonesia in 2013 is 59.74%, 67.8% in 2016 and 69% in 2017. However, the target of the Indonesian President is 75% in 2019. In this study, the author analyses the factors that affect the Financial Inclusion Index. The variables used in this study include socio-economic conditions, information and communication technology (ICT), and banking performance. The method used was descriptive and verification analysis by panel regression analysis. The results have shown that the influencing variables are unemployment rate, internet, and non-performing loans variables. Journal: Int. J. of Monetary Economics and Finance Pages: 287-295 Issue: 3 Volume: 13 Year: 2020 Keywords: socio-economic; ICT; information and communication technology; banking performance; financial inclusion index; Indonesia. File-URL: http://www.inderscience.com/link.php?id=108819 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:287-295 Template-Type: ReDIF-Article 1.0 Author-Name: Piyaphan Changwatchai Author-X-Name-First: Piyaphan Author-X-Name-Last: Changwatchai Author-Name: Siwapong Dheera-aumpon Author-X-Name-First: Siwapong Author-X-Name-Last: Dheera-aumpon Title: Cultural distance and Thailand's foreign direct investment attractiveness Abstract: Thailand tries to attract more foreign direct investment (FDI) because it is an important driver of economic growth. From previous studies, the effect of cultural distance on FDI attractiveness is ambiguous. This study constructs Thailand's FDI attractiveness index and analyse the effect of cultural distance on Thailand's FDI attractiveness. The results show that cultural distance between Thailand and its source country increases the FDI attractiveness of Thailand. This means that culture differences do not impede the FDI attractiveness of Thailand. To promote new inward FDI in Thailand, the government may educate potential investors about culture in Thailand. Journal: Int. J. of Monetary Economics and Finance Pages: 198-205 Issue: 3 Volume: 13 Year: 2020 Keywords: attractiveness; culture; cultural distance; FDI; foreign direct investment; Thailand; investment; inward FDI; host country. File-URL: http://www.inderscience.com/link.php?id=108820 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:198-205 Template-Type: ReDIF-Article 1.0 Author-Name: Karoon Suksonghong Author-X-Name-First: Karoon Author-X-Name-Last: Suksonghong Author-Name: Azlan Amran Author-X-Name-First: Azlan Author-X-Name-Last: Amran Title: Achieving earnings target through real activities manipulation: lesson from stock exchange of Thailand Abstract: This paper aims to investigate managers' intention to manage firms' earnings through operational activities intervention. The real activities manipulation through discretionary expenses, sales manipulation, and production manipulation was inspected using the sample of the Stock Exchange of Thailand listed companies. In this study, we identified firms reporting small earnings or small growth in earnings as the suspect firms. Our results revealed that the executives of the suspect firms engage in real activities manipulation to either avoid loss or to smooth firm's earnings. Given the fact that the operational activities intervention is hard to detect, the market regulators of the emerging countries need to monitor such practise as well as introduce legislation relevant to this form of corporate fraud. Journal: Int. J. of Monetary Economics and Finance Pages: 260-268 Issue: 3 Volume: 13 Year: 2020 Keywords: corporate finance; earning management; financial report; real activity manipulation; securities analysis; stock exchange of Thailand. File-URL: http://www.inderscience.com/link.php?id=108821 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:260-268 Template-Type: ReDIF-Article 1.0 Author-Name: Patrik Svoboda Author-X-Name-First: Patrik Author-X-Name-Last: Svoboda Author-Name: Barbora Poskočilová Author-X-Name-First: Barbora Author-X-Name-Last: Poskočilová Author-Name: Hana Bohušová Author-X-Name-First: Hana Author-X-Name-Last: Bohušová Title: Financial reporting quality: the case of Czech and German listed companies Abstract: The study examines Czech and German listed companies' compliance with selected international financial reporting standards (IFRS) mandatory disclosure requirements. The aim of this paper is to analyse and compare the level of annual report disclosure quality for companies in the Czech Republic and Germany. The proxies for measuring compliance with IFRS mandatory disclosure requirements quantify the range of disclosure of information in the financial statements using the disclosure index. It was proved that the disclosure index of the Czech companies is lower than the German ones. Findings could be useful to potential investors, management and other users of corporate disclosures. Journal: Int. J. of Monetary Economics and Finance Pages: 235-243 Issue: 3 Volume: 13 Year: 2020 Keywords: IFRS; international financial reporting standards; listed companies; disclosure index; dichotomous method; financial statements; financial reporting quality; compliance with IFRS. File-URL: http://www.inderscience.com/link.php?id=108822 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:235-243 Template-Type: ReDIF-Article 1.0 Author-Name: Ratna Meisa Dai Author-X-Name-First: Ratna Meisa Author-X-Name-Last: Dai Author-Name: Sam'un Jaja Raharja Author-X-Name-First: Sam'un Jaja Author-X-Name-Last: Raharja Title: Effects of innovation factors on SME performance: study on SMEs in food and beverages centers in Cimahi, Indonesia Abstract: This study aims to determine factors that affect the business performance of small and medium enterprises in food and beverage centres. The factors are related to innovation strategy, formal structure, customer relations with suppliers, innovation culture and technological capabilities. Overall performance is reflected in financial performance. Performance is an important foundation for the sustainability of business, either in domestic or international. Study uses a descriptive survey and quantitative analysis under the multiple linear regression technique. Results show that innovation culture has the most significant influence on performance compared to innovation strategy, formal structure, customer relations with suppliers and technological capabilities. Journal: Int. J. of Monetary Economics and Finance Pages: 306-316 Issue: 3 Volume: 13 Year: 2020 Keywords: factor of innovation; business performance; financial performance; profitability; food and beverages; Cimahi. File-URL: http://www.inderscience.com/link.php?id=108823 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:306-316 Template-Type: ReDIF-Article 1.0 Author-Name: Ni Luh Gde Lydia Kusumadewi Author-X-Name-First: Ni Luh Gde Lydia Author-X-Name-Last: Kusumadewi Author-Name: Ratna Wardhani Author-X-Name-First: Ratna Author-X-Name-Last: Wardhani Title: The effect of three types of agency problems on the firm performance: evidence from Indonesia Abstract: This research examines the impact of three types of agency problems (agency problem Type I, II and III) on corporate performance. This study uses 1.760 observations of nonfinancial companies from Indonesia during 2013-2017. The results show that agency problems Type I (manager vs. shareholder) and Type II (majority vs. minority shareholder) in general positively affect performance, whereas agency problems Type III (shareholder vs. creditor) negatively affect performance. This study contributes to agency theory literature and to local and international investors that invest in the Indonesian capital market by showing that not all types of agency problems negatively affect performance. Journal: Int. J. of Monetary Economics and Finance Pages: 279-286 Issue: 3 Volume: 13 Year: 2020 Keywords: agency problem; firm performance; market-based performance; accounting-based performance; ROA; return on assets; Tobin's Q; Indonesia. File-URL: http://www.inderscience.com/link.php?id=108824 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:279-286 Template-Type: ReDIF-Article 1.0 Author-Name: Vika A. Qurrata Author-X-Name-First: Vika A. Author-X-Name-Last: Qurrata Author-Name: Linda Seprillina Author-X-Name-First: Linda Author-X-Name-Last: Seprillina Author-Name: Bagus S. Narmaditya Author-X-Name-First: Bagus S. Author-X-Name-Last: Narmaditya Author-Name: Nor Ermawati Hussain Author-X-Name-First: Nor Ermawati Author-X-Name-Last: Hussain Title: Media promotion, Islamic religiosity and Muslim community perception towards charitable giving of cash waqf Abstract: In Islamic countries, the waqf fund is important and serves as a relief provided to facing poverty issues. However, in Indonesia, the concept and Muslim perception of cash waqf is relatively new as compared to the two traditional practices. Thus, this study intends to develop a conceptual model elucidating the Malang Muslim community's willingness towards charitable giving of cash waqf. Using structural equation modelling (SEM), these findings indicate that there is a significant relationship between media, Islamic religiosity, and perception of cash waqf contribution. The result strongly urges that the waqf institutions using media more to increase the awareness of the Muslim community in order to enhance involvement in waqf. Journal: Int. J. of Monetary Economics and Finance Pages: 296-305 Issue: 3 Volume: 13 Year: 2020 Keywords: cash waqf; SEM; structural equation model; economics; media promotion; Islamic religiosity; perception. File-URL: http://www.inderscience.com/link.php?id=108825 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:296-305 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 Author-Name: Marek Litzman Author-X-Name-First: Marek Author-X-Name-Last: Litzman Author-Name: Marian Dobranschi Author-X-Name-First: Marian Author-X-Name-Last: Dobranschi Title: Profit-shifting through Panama Papers destinations: a case study for the Czech Republic Abstract: This paper exploits firm-level data from the ORBIS database to identify international tax planning by the Czech multinational enterprises (MNEs) through Panama Papers destinations. Profit shifting is measured by comparing a tax payable per unit of profits of the Czech MNEs having links to the Panama Papers destinations with the results of the same indicator of the Czech non-multinational entities i.e., without any cross-border links and thus without any profit shifting opportunities. Results are based on the sample of 116,312 entities and provide evidence about the importance of the Panama Papers destinations in profit-shifting from the Czech Republic. Overall, the estimated base erosion ranges from EUR 159 up to EUR 2.92 mil., which corresponds up to approximately CZK 14 mil. of corporate tax revenues losses. Results also show that anonymous ownership and financial secrecy play an important role in the world economy and contribute to the tax planning and profit shifting. Journal: Int. J. of Monetary Economics and Finance Pages: 179-188 Issue: 3 Volume: 13 Year: 2020 Keywords: Panama Papers; profit shifting; Czech Republic; ORBIS; individuals; MNEs; multinational enterprises; base erosion; tax havens; tax revenues losses; service-oriented industries. File-URL: http://www.inderscience.com/link.php?id=108826 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:179-188 Template-Type: ReDIF-Article 1.0 Author-Name: Neungruthai Petcharat Author-X-Name-First: Neungruthai Author-X-Name-Last: Petcharat Title: Can an integrated reporting system in Thai context create sustainable value to users? Abstract: This study examines an integrated reporting system of Thai-listed companies for incorporating business information in annual reports to create sustainable value. A set of questionnaires is employed to conduct the integrated information in the annual reports of the sample companies. A multiple regression analysis is utilised to test the hypotheses. Results reveal that the integrated reporting of the sample companies enables them to satisfy the information needs of the stakeholders. Business information in relation to the environmental and social performance, effective investment decision and sustainability targets in the annual reports of the sample companies create sustainable value from the perspective of stakeholders. Journal: Int. J. of Monetary Economics and Finance Pages: 253-259 Issue: 3 Volume: 13 Year: 2020 Keywords: integrated information; integrated reporting system; sustainable targets; sustainable value; effective investment decision; stakeholders' satisfaction; stakeholders' perspectives; environmental performance; social performance; non-financial information. File-URL: http://www.inderscience.com/link.php?id=108827 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:253-259 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Mohsin Hakeem Author-X-Name-First: Muhammad Mohsin Author-X-Name-Last: Hakeem Title: Equity markets and investment patterns: the network perspective Abstract: The close-knit networks such as the European Union (EU) influence the internal investment flows. The study explores the connectivity patterns, closeness, and clustering in the neighbourhood. All these characteristics can influence the foreign portfolio investment flows for any country. Analysis of network connectivity and possible correlations patterns with major economic indicators of any member country can explain the patterns of investment decisions. The findings strengthen the belief about strong connectivity between economic stability or deterioration with better or weak connectivity patterns in the investment network as a result of changes in the economic state of affairs, even in strongly knit clusters. Journal: Int. J. of Monetary Economics and Finance Pages: 189-197 Issue: 3 Volume: 13 Year: 2020 Keywords: investment networks; economic indicators; European Union; portfolio investment; network analysis; equity markets; liquidity; network centralities. File-URL: http://www.inderscience.com/link.php?id=108828 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:189-197 Template-Type: ReDIF-Article 1.0 Author-Name: Alena Fedorova Author-X-Name-First: Alena Author-X-Name-Last: Fedorova Author-Name: Zuzana Dvorakova Author-X-Name-First: Zuzana Author-X-Name-Last: Dvorakova Author-Name: Olga Koropets Author-X-Name-First: Olga Author-X-Name-Last: Koropets Title: Transformation of labour relations in the context of global economic and social risks Abstract: The theoretical and empirical study of the impact of global economic and social risks on the transformation of labour relations will allow us to identify factors that determine changes in the labour sphere. New trends emerge in the global labour market, leading to the degradation of labour relations, a decrease in the level of employee welfare and wellbeing. The long-term monitoring study of changes in labour relations is implemented in countries with different economic models through a sociological survey of employees. The study represents an initial research step and outlines promising directions for the development of a new labour economy. Journal: Int. J. of Monetary Economics and Finance Pages: 206-214 Issue: 3 Volume: 13 Year: 2020 Keywords: global economic and social risks; labour relations; employees' wellbeing; monitoring study; comparative analysis; new labour economy. File-URL: http://www.inderscience.com/link.php?id=108829 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:206-214 Template-Type: ReDIF-Article 1.0 Author-Name: Fitra Roman Cahaya Author-X-Name-First: Fitra Roman Author-X-Name-Last: Cahaya Author-Name: Gunadi Yoga Author-X-Name-First: Gunadi Author-X-Name-Last: Yoga Title: Corporate governance and voluntary disclosures: a story about corporate transparency from Indonesia Abstract: This study examines the impacts of corporate governance attributes on Indonesia Stock Exchange (IDX) listed companies' voluntary disclosures. Year-ending 2012 annual report disclosures of 100 IDX listed companies are analysed using a disclosure index. The results show a low level of voluntary disclosures (25.97%). The regression analysis shows that board size is a positive and significant predictor of voluntary disclosure practices. Agency theory thus partially explains the variability of these disclosure practices. Older companies also provide more disclosures. It is implied that the number of commissioners determines the strength of the board of commissioners in pushing the board of directors to be more transparent. Thus, to be more informed, international investors should invest their money in older companies having a greater number of commissioners. Journal: Int. J. of Monetary Economics and Finance Pages: 269-278 Issue: 3 Volume: 13 Year: 2020 Keywords: corporate governance; voluntary disclosures; Indonesia; agency theory; transparency; board size; age of business. File-URL: http://www.inderscience.com/link.php?id=108830 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:269-278 Template-Type: ReDIF-Article 1.0 Author-Name: Siriyos Chuthanondha Author-X-Name-First: Siriyos Author-X-Name-Last: Chuthanondha Title: Do managements tell us the whole truth and nothing but the truth? Impact of textual sentiment in financial disclosure to future firm performance and market response in Thailand Abstract: This paper empirically explores causal relation between financial news and stock price performance by applying textual analysis to listed firms' financial disclosure in Thailand. Managers generally use language in management discussion and analysis (MD%A) report to communicate value-relevant information to investors and other stakeholders. I applied a dictionary-based approach to extract textual sentiment. It is found that higher values of net textual sentiment predict higher future performance. Particularly, this study revealed that investors reacted to this kind of information asymmetrically. The effect of the unfavourable tone of financial disclosures on stock market price was more pronounced and had more predictive power than the favourable tone. Furthermore, I find that constructing portfolios that long top quintile and short bottom quintile of stock ranked by changes in tone could gain abnormal returns. Overall, this paper highlights the important role of non-financial statement disclosure in affecting future company performance and could be applied to other international stock markets. Journal: Int. J. of Monetary Economics and Finance Pages: 244-252 Issue: 3 Volume: 13 Year: 2020 Keywords: textual sentiment analysis; dictionary base approach; financial disclosure documents; future firm performance; stock market returns; Stock Exchange of Thailand. File-URL: http://www.inderscience.com/link.php?id=108831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:244-252 Template-Type: ReDIF-Article 1.0 Author-Name: Adefemi A. Obalade Author-X-Name-First: Adefemi A. Author-X-Name-Last: Obalade Author-Name: Paul-Francois Muzindutsi Author-X-Name-First: Paul-Francois Author-X-Name-Last: Muzindutsi Title: Static or adaptive? the month-of-the-year and intra-month effects in African stock markets Abstract: We investigated adaptive month-of-the-year (MOY) and intramonth/half-of-the-month (HOM) effects in African stock markets (ASMs) using the daily returns of All Share Indexes in Nigerian stock exchange, Johannesburg Stock Exchange, stock exchange of Mauritius, Casablancan stock exchange and Tunisian stock exchange from 1998:1 to 2018:2. This study employed rolling GARCH models for the purpose of estimations. Our results reveal that the behaviour of MOY and HOM effects are cyclical rather than being persistent. Hence, we proved that the behaviour of MOY and HOM calendar anomalies in ASMs is adaptive as opposed to being static, which is consistent with the adaptive market hypothesis (AMH) as opposed to efficient market hypothesis. Thus, local and international investors should not view ASMs as anomalous in absolute form. Journal: Int. J. of Monetary Economics and Finance Pages: 215-234 Issue: 3 Volume: 13 Year: 2020 Keywords: calendar effect; MOY; month-of-the-year; intra-month; AMH; adaptive market hypothesis; rolling GARCH. File-URL: http://www.inderscience.com/link.php?id=108832 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:3:p:215-234 Template-Type: ReDIF-Article 1.0 Author-Name: Adamu Yahaya Author-X-Name-First: Adamu Author-X-Name-Last: Yahaya Author-Name: Fauziah Mahat Author-X-Name-First: Fauziah Author-X-Name-Last: Mahat Author-Name: B.T. Matemilola Author-X-Name-First: B.T. Author-X-Name-Last: Matemilola Title: Risk governance and bank performance in Sub Saharan Africa: dynamic panel evidence Abstract: Risk governance practice is gaining prominence as a result of its active role in addressing risk related issues within the banking sector. The study investigates the effect of risk governance on the performance of listed commercial banks in Sub Saharan African region. A sample of 50 banks from six (6) SSA countries were drawn between the periods of 2010-2018. Data were collected from the annual report of the banks while World Bank database supplements the data for the macroeconomic variables. The two-step system GMM technique was used to analyse the data collected and findings from the study revealed that, risk experience members have strong positive effect on the performance of banks. The study recommends among others to ensure adequate risk experience members in the risk committee of the banks. Moreover, recognizing the office of chief risk officer within the banking corporate governance contribute towards better banking performance. Journal: Int. J. of Monetary Economics and Finance Pages: 317-340 Issue: 4 Volume: 13 Year: 2020 Keywords: risk experience members; risk committee; SSA; Sub Saharan Africa; system generalised method of moment; ROA; return on asset. File-URL: http://www.inderscience.com/link.php?id=109990 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:4:p:317-340 Template-Type: ReDIF-Article 1.0 Author-Name: Agnieszka Przybylska-Mazur Author-X-Name-First: Agnieszka Author-X-Name-Last: Przybylska-Mazur Title: Flexible and standard fiscal rules in context of stability of public finances Abstract: The main objectives of fiscal policy are to achieve balanced budget over the business cycle and to achieve the stability of public finances: general government debt and general government deficit. One way of fiscal decision making is decision based on the numerical rule. The basis of the analysis is debt brake rule - an example of the fiscal rule applied for the first time in Switzerland. Thus, the objective of this paper is to present of the modification of expenditure rule that is the core of debt brake rule and to take into account an exceptional circumstance in it. Making empirical analysis we compare the maximum expenditure levels calculated on the basis of a flexible and standard fiscal rules, general government deficit and debt. We present the results for one of the countries of the European Union - for Poland. Journal: Int. J. of Monetary Economics and Finance Pages: 417-427 Issue: 4 Volume: 13 Year: 2020 Keywords: fiscal rule; flexible fiscal rule; standard fiscal rule; exceptional circumstances; debt brake rule; general government deficit; general government debt; stability of public finances; Poland; maximum level of total expenditures; Maastricht criteria. File-URL: http://www.inderscience.com/link.php?id=109991 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:4:p:417-427 Template-Type: ReDIF-Article 1.0 Author-Name: Boris Fisera Author-X-Name-First: Boris Author-X-Name-Last: Fisera Author-Name: Jana Kotlebova Author-X-Name-First: Jana Author-X-Name-Last: Kotlebova Title: Expansionary monetary policy and bank lending: the case of new Euro Area member states Abstract: We study the effectiveness of the bank lending channel in the transmission of the unconventional monetary policies of the European Central Bank (ECB). We use the bias-corrected LSDV estimator to study the effect of ECB's unconventional policies on bank lending to private sector on a sample of 54 banks from the 5 new Euro Area (EA) member states over the years 2008-2018. We distinguish two groups of unconventional monetary policies - the Quantitative Easing (QE) and central bank lending to commercial banks. We find that the two groups of unconventional policies did not have a statistically significant effect on bank lending in all the sampled countries. However, for Slovakia, with its comparatively healthy banking system, we find evidence that the QE did boost credit provision to private sector. Indeed, we find that both the ECB's lending to commercial banks and the QE had stronger effect on healthier banks in Slovakia. Journal: Int. J. of Monetary Economics and Finance Pages: 383-416 Issue: 4 Volume: 13 Year: 2020 Keywords: unconventional monetary policies; ECB; European Central Bank; QE; quantitative easing; bank lending channel; LSDVC estimator; new EA member states; monetary policy transmission. File-URL: http://www.inderscience.com/link.php?id=109993 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:4:p:383-416 Template-Type: ReDIF-Article 1.0 Author-Name: Mumtahina Islam Author-X-Name-First: Mumtahina Author-X-Name-Last: Islam Author-Name: G.M. Wali Ullah Author-X-Name-First: G.M. Wali Author-X-Name-Last: Ullah Title: Debt and profitability: evidence from Bangladesh Abstract: This study investigates the relationship of different capital structure determinants with the profitability of multinational companies (MNC) in order to determine the optimal choice of the capital structure. We have used the financial statements of 10 MNC listed in the Dhaka Stock Exchange (DSE) in Bangladesh in the year 2006-2017. The profitability is measured using the return on assets (ROA) and the return on equity (ROE). Data are analysed using multiple panel regression which reveals that the financial ratios, namely, the long term debt (LTD) and debt to equity (DE) are the significant variables in predicting the optimal capital structure of those MNC. The research findings imply that MNC financial managers should avoid long-term debt financing and therefore rely more on short-term financing options from the perspective of the capital market in Bangladesh. Journal: Int. J. of Monetary Economics and Finance Pages: 362-382 Issue: 4 Volume: 13 Year: 2020 Keywords: optimising capital structure; MNC; multinational companies; Bangladesh; Dhaka Stock Exchange. File-URL: http://www.inderscience.com/link.php?id=109995 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:4:p:362-382 Template-Type: ReDIF-Article 1.0 Author-Name: Yaman Erzurumlu Author-X-Name-First: Yaman Author-X-Name-Last: Erzurumlu Author-Name: Gurcan Avci Author-X-Name-First: Gurcan Author-X-Name-Last: Avci Title: Audit committee member characteristics and committee effectiveness: evidence from Turkish banking sector Abstract: Lack of corporate governance was addressed as one of the reasons for financial scandals and crises experienced during the 2000s. Financial crises were followed by audit committee mechanism revision, and focus shifted onto how audit committees' governance quality could be improved. Using a unique data set, this study investigates the impact of audit committee membership characteristics on the governing quality of the audit committee measured by operational loss in the Turkish banking sector. Results imply that gender diversification and multiple directorships of the members improve the governance effectiveness while auditing background alone does not make significant improvement after controlling for industry experience. Differences in cultural background and insufficient funding of the committee could be detrimental to the effectiveness of banks' audit committees at mitigating operational risk. Trends of the member characteristics for 2006-2012 suggest that the 2008 turbulence has mainly had a disciplinary effect on effective audit committees. Journal: Int. J. of Monetary Economics and Finance Pages: 341-361 Issue: 4 Volume: 13 Year: 2020 Keywords: audit committee; audit committee membership; operational risk; operational loss; corporate governance; banks; Turkey; LSDVC. File-URL: http://www.inderscience.com/link.php?id=109996 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:4:p:341-361 Template-Type: ReDIF-Article 1.0 Author-Name: David G. McMillan Author-X-Name-First: David G. Author-X-Name-Last: McMillan Title: Explaining the stock-stock, bond-bond and stock-bond correlation across countries Abstract: This paper examines the behaviour of the same asset-cross country and cross-asset same country correlations for stocks and bond for four (Germany, Japan, UK, USA) major economies. Using the realised volatility methodology to construct time-varying correlations, the results reveal that rising same asset correlations occur when cross-asset correlations fall. While there is evidence of segmentation of Japanese assets within international markets. We seek to explain the movement in correlations and note that the variables that exhibit a positive predictive relation for the stock-bond correlation, exhibit a negative predictive relation for the stock-stock and bond-bond correlations and that this is linked to economic conditions. Within this, four variables (inflation, stock returns, consumer sentiment and purchasing managers index) exhibit consistent significance across the regressions. Using these variables, we construct a correlation indicator variable that is used to construct a switching portfolio. This constructed portfolio constructed outperforms buy-and-hold alternatives. Journal: Int. J. of Monetary Economics and Finance Pages: 429-445 Issue: 5 Volume: 13 Year: 2020 Keywords: stocks; bonds; correlation; predictability; realised volatility; portfolio allocation. File-URL: http://www.inderscience.com/link.php?id=110553 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:5:p:429-445 Template-Type: ReDIF-Article 1.0 Author-Name: Bożena Frączek Author-X-Name-First: Bożena Author-X-Name-Last: Frączek Title: Abuses based on the deficit of information in financial markets: the case of presenting the interest rate in basic financial offers Abstract: The paper touches the problem of abuse in financial market in form of lack of transparency of information regarding financial terms of basic financial offers: deposits and credits. The research confirmed the discrepancy between the important role of the interest rate determining the financial behaviours and a lack of understanding of its essence. Case studies and analysis confirm that this may result in providing the incomplete or inaccurate information regarding interest rates influencing financial decision making. Journal: Int. J. of Monetary Economics and Finance Pages: 502-512 Issue: 5 Volume: 13 Year: 2020 Keywords: abuse in financial markets; deficit of information; financial inclusion; interest rates; APR; annual percentage rate; financial education; consumer protection; personal finance management. File-URL: http://www.inderscience.com/link.php?id=110554 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:5:p:502-512 Template-Type: ReDIF-Article 1.0 Author-Name: Fazelina Sahul Hamid Author-X-Name-First: Fazelina Sahul Author-X-Name-Last: Hamid Title: The effect of diversification on bank performance in dual banking system Abstract: This study analyses the impact of banks' diversification strategies on their risk-adjusted performance using the sample of commercial banks in 22 Muslim countries with dual banking system during 2000-2016. Islamic banks' performance is more strongly affected by diversification strategies. Revenue, non-interest income and asset diversification dampen the risk adjusted returns of Islamic banks but enhance their stability. Higher dependence on non-interest income lowers conventional banks risk adjusted returns, while higher dependence on non-loan assets raises it. Before crisis, non-interest income diversification raises the risk adjusted returns of Islamic and conventional banks. Revenue and non-interest income diversification have positive impact on Islamic banks' stability after crisis. Size influences the impact of diversification on bank performance. Journal: Int. J. of Monetary Economics and Finance Pages: 446-470 Issue: 5 Volume: 13 Year: 2020 Keywords: diversification; bank performance; stability; profitability; dual banking; dynamic panel data analysis. File-URL: http://www.inderscience.com/link.php?id=110555 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:5:p:446-470 Template-Type: ReDIF-Article 1.0 Author-Name: Khaoula Aliani Author-X-Name-First: Khaoula Author-X-Name-Last: Aliani Author-Name: Lama Al-Kayed Author-X-Name-First: Lama Author-X-Name-Last: Al-Kayed Author-Name: Marwa Gouasmia Author-X-Name-First: Marwa Author-X-Name-Last: Gouasmia Title: Dividend policy and the bank-firm relationship: evidence from Tunisian context Abstract: The Tunisian economy has undergone several changes since independence, such as liberalisation and the opening of the external market. Since then, the financial market has developed gradually. These changes have positively affected banking services and the reforms of the International Monetary Fund (1986-1997) have significantly improved the Tunisian banking sector. This paper aims to study the dividend policy of Tunisian firms, focusing on the relationship between banks and firms, and its impact on the dividend policy (DP) of non-financial firms. Two econometric models have been used to explore the role of banks in Tunisian firms: partial adjustment model (PAM) and fully adjustment model (FAM). The results of both models suggest that the creditor bank positively affects the DP of non-financial firms in Tunisia. Only the results of PAM model have shown that banks play a dual role in nonfinancial Tunisian firms and negatively affect the payment of dividends. Journal: Int. J. of Monetary Economics and Finance Pages: 485-501 Issue: 5 Volume: 13 Year: 2020 Keywords: dividend policy; banks; PAM model; FAM model; Tunisian firms; BFR; bank-firm relationship; GMM; generalised method of moments. File-URL: http://www.inderscience.com/link.php?id=110557 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:5:p:485-501 Template-Type: ReDIF-Article 1.0 Author-Name: Guenichi Hassen Author-X-Name-First: Guenichi Author-X-Name-Last: Hassen Author-Name: Khalfaoui Hamdi Author-X-Name-First: Khalfaoui Author-X-Name-Last: Hamdi Title: The impact of monetary policy on overall and sectoral economic growth: evidence from Tunisian central bank in crisis periods Abstract: The paper aims to investigate the impact of monetary policy conduct of Tunisian central bank on overall and sectoral economic growth, particularly over crisis periods. Empirically, we have applied a Vector Error Correction Model analysis using quarterly data over the period 2000-2018. It is observed that in the long-term, overall and sector economic growth are positively correlated with key interest rate and negatively with inflation. Looking at the separate impact on the activity sector, we find that the manufacturing and services sectors are the most influenced by a change in key interest rate. While, the agricultural sector is the most negatively influenced by inflation. However, the economic crises and the approved credits respectively, influence negatively and positively the relationship between monetary policy and economic growth. The impact of changes in key interest rate remains weaker in a crisis period and improved by increased credits. Journal: Int. J. of Monetary Economics and Finance Pages: 471-484 Issue: 5 Volume: 13 Year: 2020 Keywords: Tunisia monetary policy; key interest rate; inflation; overall and sectoral economic growth; VECM analysis. File-URL: http://www.inderscience.com/link.php?id=110558 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:13:y:2020:i:5:p:471-484