Quantifying Latin American firms'exposure to external factors

This is the last of a series of three working papers analyzing the basic characteristics of the economic environment in which Latin American firms operate and the optimal design of incentive programs compatible with such environment. Executive pay-for-performance compensation schemes are usually based on stock returns. However, stock returns change in response to forces beyond management control (e.g., market crushes). The economic environment in which Latin American firms operate is highly unstable, which means that this is a very important limitation for Latin American firms. In the present paper, we present a procedure to decompose variability in stock returns in order to identify and measure components that respond to external factors beyond management control. For this, we have created indices that capture statistically the external influences that affect stock returns. We show how such indices can be used to construct a risk profile that allows management to know to what extent observed outcomes depend on external factors, versus their own actions. In addition, these indices can be used as a basis to develop "indexed options": financial instruments designed to factor out the effects of external risks, making it possible for executives to be evaluated only on the basis of the value they generate. We show that these indices can be developed out of purely local information, but that the solutions tend to be moderately unstable, which implies that compensation instruments developed with this methodology should be of relatively short maturity.

Booms and Busts in Latin America: The Role of External Factors

This paper analyzes the relevance of external factors in average quarterly GDP growth for 1990-2006 in the seven largest Latin American countries (LAC7). Modeling the relationship between LAC7 GDP and several external factors, it is found that those factors account for a significant share of variance in LAC7 GDP growth, and that external shocks produce significant responses. Likewise, a significant share of recent LAC7 growth performance can be explained by an external factor “tailwind. ” Also evaluated is the impact of deterioration in external financial conditions. Finally, the relevance of these findings for policy evaluation is emphasized. Growth performance, the strength or weakness of macroeconomic fundamentals and the impact of domestic macro and micro policies on growth can only be properly appraised by first filtering out the effects of external factors.

EXTERNAL FACTORS INFLUENCE ON INFLATION: THE CASE OF ROMANIA

In this paper we try to assess the main external determinants of inflation dynamics in Romania. The literature in the field of measuring inflation dynamics is wealthy and various. There are many developing country - level studies that examine inflation dynamics: Blavy (2004) - Guinea, Duma (2008) - Sri Lanka, Gottschalk et al (2008) - Sierra Leone, Moriyama (2008) - Sudan, Mwase (2006) - Tanzania, Williams and Adedeji (2004) - Dominican Republic, Hossain (2005) - Indonesia, Almounsor (2010) - Yemen. The issue of Romanian inflation dynamics is present in many and various studies, like Hammermann (2007), Pelinescu and Dospinescu (2006), Budina et al (2006) etc. There are no other recent studies that analyze the external determinants on Romanian inflation dynamics. In our paper we estimate an OLS single equation model, using a methodology derived from Almounsor (2010). The empirical analysis uses monthly data from August 2005 to January 2011. The start point of the data series is the moment of a major change in the National Bank of Romania (NBR) monetary policy: adoption of the inflation targeting regime. The independent variables used in our research are: harmonized consumer price index of EU-25 countries, EUR/RON exchange rate, crude oil price index (for analyzing the external shocks effect) and M2 monetary aggregate (intermediate money supply) as a control variable. The outcomes suggest that inflation in Romania is driven mainly by international price shocks - harmonized consumer price index of EU-25 countries. The EUR/RON exchange rate depreciation has a small influence on domestic inflation. In the short run, the effect of the international oil price is insignificant. Money supply, used here as a control variable, is shown to have a very small effect on inflation in Romania when using OLS regressions. The results show that 66% of the domestic inflation variance is explained by the independent variables in our model.inflation dynamics, external shock, international prices, exchange rate, Romania

Competition in Industries Recently Deregulated in Japan

Deregulation in Japan has been caused by both external and internal factors. External factors include requests by the United States and the European Community, where deregulation measures were extensively implemented in order to facilitate these countries\u27 enterprises access into Japan\u27s market. Internal factors include the necessity for the privatization of state or public corporations in order to utilize private initiative to its fullest extent and for the reduction of differences between domestic and international prices

External Factors in Emerging Market Recoveries: An Empirical Investigation

We estimate conditional duration models to analyse recovery processes in emerging market economies. Our reduced form specification is parsimonious, as we focus on the effect of growth in the US, EU, and Japan on the prospects for economic recovery in emerging markets experiencing recessions. In order to assess the robustness and forecasting capability of our results, we performed out-of-sample predictions using recently available data pertaining to the economies hit by the Asian crisis. The results of this exercise show that external factors beyond the control of the authorities can sucessfully explain the bouncing back of most emerging markets economies hit by the Asian crisis.

Internal and External Factors of Motivation of Health Cadres in Implementing Alert Village in District of Ogan Ilir in 2011

Background : Role of a health cadre is very important in supporting alert village program . The task of a health cadre is very complex and diverse in developing alert village. Therefore a health cadre is expected to have high motivation in performing everyday tasks. Method : This research is a descriptive qualitative approach. The number of samples in this study as many as 6 people informants include 2 key informants and 4 informants comparison. The instruments used are the guidelines for indepth interviews, observation sheets and conducted document review. Result : The internal factors that influence the work motivation of cadres were education and training for self-development, the recognition of local government and the award given by the health department to the cadre if the achievements in carrying out their duties and responsibilities. In addition, in performing their duties, relations with superiors or with coworkers are good and coupled with the lack of concern from the health department through supervision activities. Conclusion : Most of the village health volunteers standby has responsibility plays an important role in the management of idle rural programs, help develop and manage UKBM, as well as helping to identify and report on events in the community that may have an impact on society

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI LOYALITAS PELANGGAN (Study Kasus Pada Pelanggan Guest House Griya Putri Utari di Malang)

The purpose of this study is to understand what factors are considered for customers when choosing to stay at Guest House Griya Putri Utari Malang compared to other guest houses in Malang. The information used for this study was obtained directly from respondents who are customers of Griya Putri Utari through filling out a questionnaire. The number of respondents used in this sample was 150 people. In this study, we use the factor analysis method as a tool to analyze the data. This study revealed that customer loyalty at Guest House Griya Putri Utari Malang is influenced by 7 factors. The first factor is External Facilities. (2) Factors Affecting Location. (3) One of the factors that affects customer satisfaction is quality (4) Factors related to the company's internal facilities (5) One of the factors that affect purchasing decisions is price. (6) One of the influencing factors is external facilities. '(7) Factors Affecting Customer Satisfactio

Containing Muslim extremism and radicalism

This article argues that wars, atrocities, radicalism and extremism have been caused by many interrelated external socio-economic, political and ethnic factors, even though religious communities are involved. However, internal factors such as the role of religious education, are instrumental in understanding religious radicalism and extremism, including among some Muslims. This article also elucidates the dual nature of Islamic religiosity in Asia i.e. its manifested diversity and underlying unity, traces Muslim historical treatment of religious extremism, and suggests that certain methodological and doctrinal aspects of contemporary Islamic education may have contributed to an extremist outlook and behavior. It offers a few specific and practical recommendations involving the external and internal factors to significantly reduce the phenomena of extremism among Muslims, especially in Asi