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Cultural and Institutional Differences at the National and Regional Levels
Bagrat Yerznkyan,
Lily Gassner
Issue:
Volume 6, Issue 4, August 2018
Pages:
133-138
Received:
10 May 2018
Accepted:
7 June 2018
Published:
29 June 2018
Abstract: Culture and institutions are two related phenomena contributing to economic performance. Culture is transmitted via teaching and imitation, while institutions, especially informal ones, come from socially transformed information and as such they are close to culture. The purpose of this paper is to examine the cultural and institutional issues of economic development with emphasis on their differences which may play a key role in understanding the very nature of socio-economic development. In a paper, the influence of culture and institutions on the socio-economic development in relation to the stationary (developed) economy as well as to the non-stationary (developing, transitional) economy is discussed. In addition, varieties of economic systems are considered. Main conclusions: (1) National specificity is superimposed on genetics: on the whole, Western civilizations with their inherent two-valued logic of thinking and the dominance of open access orders in society are more prone to economic exchanges – transactions, while Eastern civilizations, with their multi-valued logic and limited access orders, on the contrary, are more prone to social exchange processes – interactions. (2) The restructuring of the world in American terms is ontologically meaningless and conceptually erroneous, because of universality of the requirement of an inordinate consideration of national characteristics – taking into account that even in the USA the coexistence of heterogeneous political subcultures is a reality that cannot be ignored. (3) The relevance of culture and institutions are of particular importance in reforming the economy. As shows the Russian reforms, political factors, with uncritical import of formal institutions, rather than economic ones played a significantly greater role in changing its trajectory of development.
Abstract: Culture and institutions are two related phenomena contributing to economic performance. Culture is transmitted via teaching and imitation, while institutions, especially informal ones, come from socially transformed information and as such they are close to culture. The purpose of this paper is to examine the cultural and institutional issues of e...
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Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study
Mohamed Masry,
Ahmed Sakr,
Marwan Amer
Issue:
Volume 6, Issue 4, August 2018
Pages:
139-152
Received:
20 May 2018
Accepted:
19 June 2018
Published:
7 July 2018
Abstract: The dividend decision is taken after careful consideration of a number of factors, such as legal and financial. This is because it is impossible to develop a dividend policy set that applies to all companies. The decision about dividends differs from company to company in the light of company considerations. The dividend is partly dependent on the current earning of the company and partly on the dividend from the previous year. Therefore, the main changes in profit with the existing rate of dividends were the main determinants of corporate dividend policy. The research showed that the profitability aspects and their indicators for each of the return on equity return on asset, and earning per share without dividend yield, have the greatest impact on share price performance, followed by the financial risks aspect of financial leverage without gains variation which comes in the second rank. Then, the factor of size, investment opportunity for each of investment opportunity and net profit standard deviation without assets volume comes in the third place and finally, the liquidity and signals factor represented in the cash ratio without signals index. While the profitability aspects and its indicators for each of the return on equity, return on asset, earning per share without dividend yield are the most effective on pay-out ratio (first rank), followed by financial risks aspect and gains variation coefficient without financial leverage in the second rank, then the liquidity factor of index without the signals in the third place and finally size and investment opportunity factor for each of investment opportunity and assets volume without net profit standard deviation.
Abstract: The dividend decision is taken after careful consideration of a number of factors, such as legal and financial. This is because it is impossible to develop a dividend policy set that applies to all companies. The decision about dividends differs from company to company in the light of company considerations. The dividend is partly dependent on the ...
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Investment Related Risk Management Practice by Islamic Banks in Bangladesh
Mohammad Asif Nawaz,
Umme Farzana
Issue:
Volume 6, Issue 4, August 2018
Pages:
153-164
Received:
29 May 2018
Accepted:
8 June 2018
Published:
10 July 2018
Abstract: Banks are important financial intermediaries for any financial system and the risk management is at the core of banking activities if a bank wants to remain sound and active. Islamic bank is a specialized bank as the nature of operation and the types of risks it face are very different from the interest-based conventional banks and the Islamic banks in Bangladesh are no exception to it. This article attempts to provide information on the various modes of investment followed by the Islamic banks in Bangladesh and current status of the investment related risk management practice. We have tried here to highlight the current growth of Islamic banking in Bangladesh and the most common mechanisms followed by the Islamic banks while investing their funds. The investment here is not the investment in securities but the core banking activity of providing funds to the demander groups. Then we have tried to focus and provide a comprehensive idea and nature of the different types of risks related to the various investment mechanisms after analyzing the features of various investment mechanisms. Afterwards, we have move forward with the discussion and presentation of the core area of this paper, where we have tried to show the common practice of managing investment related risks by the Islamic banks in Bangladesh. Upon analysis our findings reviles that the Islamic banks in Bangladesh currently following the guidelines provided by Bangladesh Bank (central bank of Bangladesh) on risk management which are similar to the practice of interest-based conventional banks. We recommend that depending on the distinct nature of the Islamic Banks, there should be more specific guidelines on risk management solely for these special financial institutions. However, the current practice shows that these banks have already developed their very own guidelines and practice for their betterment and to comply with the Shari’ah rules of doing business.
Abstract: Banks are important financial intermediaries for any financial system and the risk management is at the core of banking activities if a bank wants to remain sound and active. Islamic bank is a specialized bank as the nature of operation and the types of risks it face are very different from the interest-based conventional banks and the Islamic bank...
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Deposit Performance Analysis: A Comparison of Conventional and Islamic Banks in Bangladesh
Issue:
Volume 6, Issue 4, August 2018
Pages:
165-173
Received:
9 June 2018
Accepted:
26 June 2018
Published:
23 July 2018
Abstract: Deposit is considered to be the most important source of a banks’ fund, which plays a significant role in running a banking industry. Existence and expansion of banks are mainly influenced by their ability to attract deposits from different segments of the society. Although every bank expects that flow of deposits will be sufficient and smooth, changes in economic and commercial activities make deposit management more challenging to the bank managers. As deposit is considered the life-blood of a bank, analyzing the deposit performance has become a key factor to evaluate a banks overall performance [10]. In banking industry of Bangladesh, Islamic banks are operating successfully besides other conventional banks. Although they are few in number in the industry, Islamic banks are performing well ahead in comparison with conventional banks in some respect [13]. Therefore, to evaluate the performance of both types of banking system, deposit performance has been taken as the basis of comparison. Though the deposit schemes of both types of banks are almost similar there are differences in techniques applied in the process of deposit mobilization by these two banking systems [1]. Therefore this study aims at measuring deposit performance of both types of banks in Bangladesh, comparing their position and identifying in which aspect Islamic banks are ahead of conventional banks and in which area conventional banks are performing better. For this purpose, all the Private Commercial Conventional Banks (PCCBs) and Islamic Banks (IBs) of Bangladesh have been studied for last 10 consecutive years ranging from 2007 to 2016. Using some variables like total deposit, segment wise deposit, categories of deposit, growth rates and productivity aspect, this study shows that PCCBs are ahead if total amount is measured but in terms of growth and productivity IBs show better performance. This can be considered as a very time proven and rational study since no other study concerned on such issue earlier in Bangladesh. These results would help both types of banks know their position in terms of deposit performance and thus also reflect the performance of banking sector as a whole since these two types of bank together constitute almost seventy percent of banking industry in Bangladesh.
Abstract: Deposit is considered to be the most important source of a banks’ fund, which plays a significant role in running a banking industry. Existence and expansion of banks are mainly influenced by their ability to attract deposits from different segments of the society. Although every bank expects that flow of deposits will be sufficient and smooth, cha...
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Analysis of the Relationship Between Private Investment and Public Investment in Mexico
Ana Laura Bojorquez Carrillo,
Victor Manuel Villasuso Pino,
Lilia Carolina Aviles Heredia
Issue:
Volume 6, Issue 4, August 2018
Pages:
174-184
Received:
16 July 2018
Accepted:
8 August 2018
Published:
15 September 2018
Abstract: The aim of this study is to identify the relationships between domestic private investment and domestic public investment in Mexico. The hypotheses are as follows: H1 – Domestic public investment generates domestic private investment (period between 1993 and 2017); H2 – Domestic public investment generates domestic private investment (period between 1993 and 2008); H3 – Domestic public investment generates domestic private investment (period between 2009 and 2017). In order to analyze the relationship between the variables in this study we used the quarterly data series on public gross fixed capital formation (public GFCF) and private gross fixed capital formation (private GFCF) provided by the Mexican System of National Accounts, corresponding to the period between the first quarter of 1993 and the second quarter of 2017. In order to fulfill the aims of this study, the following stages were performed: identification of the time series models, using the methodology consisting of autoregressive integrated moving average models or ARIMA models; validation of the models identified; determination of the cross correlation function; and regression analysis of the transformed series. The main results of the study for the series from 1993 to 2017 show a statistically significant direct relationship between private investment and public investment. This confirms hypothesis 1: Domestic public investment generates domestic private investment (period between 1993 and 2017). The value of the Durbin-Watson statistic for this model is 2.103, meaning that the residuals are independent. The value of the constant in the model is not statistically significant. For the series from 1993 to 2008 there is a statistically significant direct relationship between private investment and public investment. This confirms hypothesis 2: Domestic public investment generates domestic private investment, and the residuals are independent. With regard to the results for the series from 2009 to 2017, there is a statistically significant direct relationship between private investment and public investment. This confirms hypothesis 3: Domestic public investment generates domestic private investment (period between 2009 and 2017). The value of the Durbin-Watson statistic for this model is 1.74, meaning that the residuals are independent. The value of the constant in the model is statistically significant.
Abstract: The aim of this study is to identify the relationships between domestic private investment and domestic public investment in Mexico. The hypotheses are as follows: H1 – Domestic public investment generates domestic private investment (period between 1993 and 2017); H2 – Domestic public investment generates domestic private investment (period betwee...
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Empirical Analysis of Resident Income and Economic Growth in Guangxi, China
Issue:
Volume 6, Issue 4, August 2018
Pages:
185-191
Received:
16 September 2018
Published:
18 September 2018
Abstract: This paper explores the current situation and causes of rapid economic growth but slow growth of residents' income since the reform and opening up in Guangxi China, and clarifies the relationship between income distribution and economic growth. According to the basic principles of economics, through the establishment of economic models, this paper makes an empirical analysis for the interrelated relationship between economic growth, income distribution of residents, fiscal revenue and economic structure. In this paper, Johansen cointegration test is used to test the cointegration relationship between these variables, and the results reflect the cointegration relationship between variables, which shows that the original regression is not a spurious regression. It also shows that although the series of variables are non-stationary, there is a long-term stable equilibrium relationship between GDP and variables. Then the paper leads to the following conclusions and suggestions: Residents' income plays an important role in economic growth, and income distribution should be appropriately inclined to residents. We must make full use of the means of fiscal regulation of income distribution. It is necessary to increase wage income, property income, and operating income of urban and rural residents. It is necessary to promote the optimization and adjustment of the economic structure. In the end, "both the country and the people are rich" will be realized.
Abstract: This paper explores the current situation and causes of rapid economic growth but slow growth of residents' income since the reform and opening up in Guangxi China, and clarifies the relationship between income distribution and economic growth. According to the basic principles of economics, through the establishment of economic models, this paper ...
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Extreme Risk Analysis of Personal Insurance Claim Based on Block Maxima Method
Issue:
Volume 6, Issue 4, August 2018
Pages:
192-199
Received:
31 July 2018
Accepted:
22 August 2018
Published:
21 September 2018
Abstract: Recent years, the portion of personal insurance, including life insurance, health insurance and accident insurance, were getting larger and larger as the development of insurance market. Besides, the extreme risk of claims always exists in personal insurance. The domestic and foreign personal insurance practices have confirmed that mastery the extreme risk of claims can help insurance company pricing insurance products accurately. Therefore, the paper focused on quantifying the extreme risk of claims in personal insurance. Firstly, the principles of VaR (Value at Risk), extreme value theory, and Block Maxima Method (BM model) were sorted out, and then calculated VaR by theoretically derived. Furthermore, claim amounts of personal insurance in Beijing, Shanghai, Shaanxi Province, Henan Province, Inner Mongolia and Hainan province of China during 2005-2014 were chosen as samples. According to statistical analysis, the claim amounts datum with a same character of sharp peak and fat tail were filtered out, which contained accident insurance in Beijing, Shaanxi Province, Henan Province, Inner Mongolia, and Hainan Province as well as health insurance in Shanghai and Inner Mongolia. Lastly, the different time series of claims data were modeled by GEV distribution respectively, obtained the shape parameter, the position parameter, and the scale parameter, and then measured the extreme risk of each claims data based on BM model to get VaR of corresponding claims. The results show that the extreme risk of claims is more likely to arise in personal accident injury insurance, which exist in most regions. Since the occurrence of accident insurance does not conform to law of large numbers, its risk of claims is difficult to control. However, the extreme claim risk in health insurance has a relatively lower probability, whereas its claim VaR tends to be higher than that of personal accident injury insurance in extreme cases. Therefore, health insurance should be the focus of risk management in insurance company.
Abstract: Recent years, the portion of personal insurance, including life insurance, health insurance and accident insurance, were getting larger and larger as the development of insurance market. Besides, the extreme risk of claims always exists in personal insurance. The domestic and foreign personal insurance practices have confirmed that mastery the extr...
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