155 research outputs found
The Foreign Direct Investments and Economic and Politic Freedoms or Could We Trust the Words of the Local Landlord?
The foreign direct investments are depending not only of economic resources, structures, mechanisms and performances of hosting countries but also on their socio-economic, cultural and political conditions. The objective of this paper is to provide a general framework of the connections between economic and politic freedoms and the foreign investment inflows (FDI). Some empirical supports are obtaining from a sample of developing and emergent countries. The main conclusion is that âeconomic and politic freedoms matters for the evolution of foreign direct investmentsâ.FDI, freedoms, STABILITY, index of economic freedom, Freedom in the World Index.
Testing the Weak-Form Informational Efficiency of United Kingdom, United States of America and Japanâs Capital Markets
This paper examines the weak form of informational efficiency for of three major capital markets, namely United Kingdom, United States of America and Japan. Results are obtained for DJI, FTSE 100 and NIKKEI 225 indexes, over a span time from 1995 to 2010. Our analysis uses the so called Lo-MacKinlay (1988) Variance Ratio Tests and some unit root tests in order to estimate if this indexes evolve as random walk processes. First we have considered that the Hurst exponent series were random walks so that variances were computed for differences of the data, second we assumed that these series follow an exponential random walk so that the innovations are obtained by taking log differences, and third the series contains the random walk innovations themselves. The results suggest that the Hurst exponent for the prices series can not be described as random walk processes. The unit root analysis suggest that overall, the trend stationarity hypothesis can be rejected in the favour of unit root with drift processes. We conclude that the adjustmenst procese son this markets can not be described accordingly to the postulates of weak informationally efficientcy hypothesis.informational efficiency, random-walk, Efficient Market Hypothesis, Adaptive Market Hypothesis
The volatility of the European capital markets during the curent financial crisis:what are saying the empirical evidences?
The uncertainty about the marketâ evolutions are one striking characteristic of the financial crisis. The objective of this paper is to find some evidences for the pre/ crisis periods actual shifting in volatility for some major European markets. The methodology is based on two particular measures of volatility and in structural changes tests. The main output consists in the thesis that âvolatility mattersâ for an extended financial crisis explanation.volatility, financial crisis, Quandt-Andrews test, FTSE 100, DAX, CAC 40
TESTING THE EFFICIENCY MARKET HYPOTHESIS FOR THE ROMANIAN STOCK MARKET
Efficient Market Hypothesis has dominated the field of research on capital markettheory. It states that asset prices are rationally connected to economic realities and alwaysincorporate all the information available to the market. In this way, securities markets are seen asefficient in reflecting information about individual stocks or about the stock market as a whole. Alarge number of theoretical, as well as empirical papers around the world have had as objectivetesting this hypothesis. Beside reviewing the most important part of literature in this respect, thepaper has as aim testing the Efficient Market Hypothesis on Bucharest Stock Exchange. The testedhypothesis is carried on time series of stock index BET (daily observations), for the period 2000-2009. The econometrical results assert that the weak form of the efficiency market hypothesis isaccomplished.efficiency market hypothesis, Romanian stock exchange, BET
Remarks on Romanian Capital Market Volatility in the Framework of an Power ARCH (PARCH) Model
The recent evolution of the Romanian capital market is characterized by an increase in the market volatility as an expression of investorsâ uncertainty about the global financial instability. Thus, the objective of this study is to provide an analytical framework for the analysis of the market volatility and to derive some empirical evidences base on such framework. The main results support the thesis of some recent structural changes in the marketâ volatility pattern which had occurred as a direct effect of the financial and real crisis.capital market, volatility, Power Arch Model, Bucharest Stock Exchange
A web of intercorrelations: culture, financial reporting and social output
In the context of a growing literature on the connection between cultural variables and accounting regulations, the general objective of the paper is to provide a theoretical framework and empirical evidence on the recent trends in financial reporting and on their impact on the dynamics of the social output. Thus, the specific objectives are: 1) to provide an operational definition of culture; 2) to advance a model of the interactions between culture, design of accounting regulations and the economic growth; 3) to test some of these interactions at the European based on an empirical pool data model. The dependent variable are: a dummy aiming to capture the specificity of the IFRSs endorsement in EU; the average real GDP rates of growth; and the explanatory variables which are represented by the cultural descriptors derived from World Values Survey questions. The main results of the paper consist in the following theses: the culture is relevant for the national characteristics of IFRSs implementation in European Union; and the accounting framework matters for the outcomes of social decisions.Accounting harmonization, culture, financial reporting, social output, world values survey, IFRSs
POLITICS AND INTERJURISDICTIONAL TRANSFERS: THE ROMANIAN CASE
this paper represents a continuation of a previous paper where we demonstrated the âabnormalâ behavior that local authority from Romania is manifesting regarding the subventions received from the central budget. In accord with public choice theory, exist an âaffinityâ of a social group - local communities in this case - for a certain political party or political coalition, in which case can expect that the distribution of public funds, having the nature of transfers given by the central budget to local budgets, to be impregnated with a considerable âpolitical colorâ. This paper is trying to establish, in Romania, quantitative and qualitative, the modality of distributing the central public funds to local authorities under the political impact.politics, regional communities, interjurisdictional transfers
Effects of financial and non-financial information disclosure on pricesâ mechanisms for emergent markets: The case of Romanian Bucharest Stock Exchange
The issuance of the European Union Regulation (EC) 1606/2002 and the 2007 adoption of the Markets and Financial Instruments Directive in Romania determined us to sett the goal of the present study at investigating the impact of public information disclosure on market values in the case of the Romanian companies listed on Bucharest Stock Exchange. Our focus is mainly on comparing the value relevance of Internet disclosed information provided by annual and interim financial reports and other non-financial news in the decision making process of investors. Consistent with the literature, we anticipate a positive and significant incremental relevance of such information items, even if an important non-uniformity of pricesâ adjustments can be expected. In order to have a benchmark for our results, we compare these with the ones specific to a more developed market, the Madrid Stock Exchange. Empirical tests support our research hypothesis according to which there will be a relative incremental value of a higher volume and a better quality of information, reflecting pricesâ overreactions even in the case of a market with imperfect trading mechanisms.KEY WORDS Disclosure, Valuation, Bucharest Stock Exchange, Madrid Stock Exchange
The pattern of Euronext volatility in the crisis period: an intrinsic volatility analysis
The pathology of the financial instability is inter alia characterized by structural changes in the market pricesâ volatility. Such changes are the expression of investorâs uncertainty in regard to the marketâs dynamics and lead to systematic anticipation errors. The objective of this paper is to study the modifications in the most significant European index -EURONEXT, in the aftermath of financial crisis. The methodology consists in the estimation of the so called intrinsic volatility in index daily data, during pre and current crisis period. Also, it is a study on the structural changes in this volatility based on Quandt-Andrews Break point test. The main output consists in the thesis that for the financial crisisâ period there are specific rapid adjustments in short run anticipations and the appearance of global picks in market dynamicscrisis volatility prices structural changes
THE FISCAL POLICY AND THE STABILITY OF THE NOMINAL SECTOR: THE ROMANIAN CASE
The fiscal policies in the contemporaneous economic systems heavy influence both the real and nominal sectors. These effects could be located at the primary distribution of the social resources as will as at level their redistribution one. The aims of this paper are: (1) to review the literature of the main conceptual frameworks which link the fiscal policy and the dynamic of real sector, especially on the inflation side (2) to advance an empirical analyze of these link for the Romanian case and (3) to draw some conclusion about desirable framework of the fiscal policy for the current period in the perspective of Romanian access to European Union.Impact, inflation, fiscal policy, econometric analyze, fiscal deficit, budgetary sold
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