Financial crisis and central bank independence and governance (CBIG)

This study examines the impact of Asian financial crisis on central bank independence and governance in the Asia Pacific. It applies a unique CBIG index-model for 36 countries for the period 1991 to 2005. This paper examines changes in the CBIG in the Asia Pacific before and after the Asian financial crisis in 1997. It applies a panel data pooled regression model and finds that the Asian financial crisis dummy is significantly different in the post-crisis period compared to the pre-crisis period. As a result the improved CBIG in the post-crisis period has contributed to lower the inflation in the entire region.<br /

Central bank independence and governance in the South Asia

This paper constructs the central bank independence and governance (CBIG) index for eight South Asian countries and examines their relationship with inflation. This CBIG index is constructed following the unique model developed by Ahsan, Skully and Wickramanayake (2006). This index consists of total 26 variables; all variables together form the overall index and different sub-sets of these variables construct sub-indices (eg. legal; political; price stability objectives; exchange rate policy; monetary policy and deficit financing; and accountability and transparency).Several countries have improved their CBIG in last fifteen years. The war torn Afghanistan have established a new central bank act in 2003 which has improved the standard of CBIG in the region. In recent time Nepal has made remarkable improvement in its ranking by allowing improved independence to its central bank. Bangladesh has taken lead in term of gradual CBIG improvement in last fifteen years. Sri Lanka, Indian and Pakistan are three countries always maintained a standard level of CBIG. Bhutan and Maldives showed less improvement among the countries. This paper also examines the statistical relationship between CBIG indices and inflation. The results indicate that there is a positive relationship between CBIG and inflation in the region which in contrary to normal expectation that inflation is one of the robust proxy of actual CBIG.<br /

A critical analysis of central bank independence and governance in Australia and Bangladesh

This study examines central bank independence and governance (CBIG) in Bangladesh and Australia. It applies a unique index model of Ahsan, Skully and Wickramanayake (2008) to assess their respective legal, political, price stability objectives, exchange rate policies, monetary policy and deficit financing practices, transparency and accountability positions from 1991 to 2008. While the model shows CBIG is much weaker in Bangladesh than in Australia, the Bangladesh Bank&rsquo;s CBIG shown considerable improvement over the period. These findings suggest that the Government of Bangladesh might learn from Australia&rsquo;s experience with Reserve Bank of Australia and delegate further power and authority to Bangladesh Bank as well as lessen its political interference.<br /

Determinants of Central bank independence and governance : problems and policy implications

Central bank independence and governance (CBIG) is a term subject to conflicting definitions and so its related studies are difficult to compare. This paper therefore focuses on developing of a more useable definition, and an index model identifying the determinants of independence and governance and their possible policy implications. It also examines various independence measurement tools such as ranking and index. The index model resulting centres on key central bank independence and corporate governance issues, such as, legal aspects, political aspects, price stability objective aspects, exchange rate policy aspects, monetary policy and deficit financing aspects and finally, transparency and accountability aspects.<br /

Graphics process unit accelerated lattice Boltzmann simulation of indoor air flow: Effects of sub-grid scale model in large-eddy simulation

In this present study, three-dimensional lattice Boltzmann method is implemented with the popular turbulence modeling method large-eddy simulation incorporating three different non-dynamic sub-grid scale models Smagorinsky, Vreman, and wall-adapting local eddy-viscosity for finding the inhomogeneous turbulent airflow patterns inside a model room with a partition. The large eddy simulation-lattice Boltzmann method code is validated with the experimental results of Posner’s model, where the model room having one partition at the bottom, one inlet, an outlet placed at top wall considered for the comparisons. The lattice Boltzmann method code is also validated without any sub-grid scale model with the results of lid-driven flow in a cubic cavity. The present numerical simulations are performed by the graphics process unit accelerated parallel programs using compute unified device architecture C platform. Double precession capable a Tesla k40 with 2880 compute unified device architecture cores NVIDIA graphics process unit card has been used for these simulations. Graphics processor units have gained popularity in recent years as a propitious platform for numerical simulation of fluid dynamics. In fact, faster computational task performance in graphics process units is one of the key factors for researchers to choose graphics process unit over conventional central processing units for the implementation of data-intensive numerical methods like lattice Boltzmann method. The effects of the sub-grid scale model have been evaluated in terms of the mean velocity profiles, streamlines as well as turbulence characteristics and found that there are significant differences in the results due to the different sub-grid scale models

Security price reaction to dividend announcement: Evidence from Dhaka Stock Exchange Ltd

Appropriate information is always an important device for decision making process, especially in corporate finance. Managers possess inside information about their firms' future prospects. They use various signaling devices to convey these information to public. The investors take into account those information while making their investment decisions. This is the common perception about the management - investor relationship. For the past few decades, there had been many studies and research work about the signaling devices that management uses to convey information to the market. Out of several important issues, dividend got the most attention of researchers. It was under the spotlight from the very beginning, and those studies are both in favour of and against the effectiveness of dividend as a signaling device. In this paper, the effectiveness of dividend as a signaling device which conveys information to the market about the firm is studied. Here, a test is conducted on some selected securities traded in the Dhaka Stock Exchange Ltd. In Bangladesh, there is no recognized research work on the effect of dividend announcement on security prices. From this point of view, it is hoped that the study will explore the avenues for further study and draw attention of security analysis and portfolio investors