Parity Theorems Revisited: An Ardl Bound Test With Non-parity Factors

The research question addressed in this paper is, do inflation and interest rate differences across two major economies fully drive the long-run exchange rate changes if controls for non-parity factors are embedded? Exchange rate behaviour research is once again an interesting topic given the availability of powerful econometric approaches to resolve unsolved issues. We re-examine the exchange rate behaviour of the US economy, applying a more appropriate econometric model using 55 years of quarterly data. The model explains 96% of variation in exchange rates, which testifies to the model’s appropriateness. The error correction estimate indicates a time-to-equilibrium of 0.139 per quarter; that is, full adjustment takes seven quarters. Tests indicate evidence of a long-run relationship among the exchange rate, prices, and interest rates. The coefficients on both parity factors (prices and interest rates) are statistically significant with correct theory-suggested signs. These findings constitute strong evidence in support of parity and non-parity theorems while confirming that the US currency behaviour over 1960–2014 is consistent with parity and non-parity theorie

IMF Bank-Restructuring Efficiency Outcomes: Evidence from East Asia

We report new findings on bank efficiency in East Asian countries for the preand post-IMF restructuring periods. We find that bank efficiency has improved, but only to the pre-IMF intervention level, and that restructured banks are not more efficient than their unrestructured counterparts. Different restructuring measures have different effects. Bank closures are economically justified, but mergers show short-term efficiency losses. Recapitalization and reprivatization of badly performing banks lead to efficiency improvement, but also increase government ownership. Ease of entry that has allowed for more foreign bank participation results in slightly improved performance of badly performing banks.

DO ACCOUNTING AND FINANCE TOOLS SERVE GOVERNANCE?

A brief review of recent literature on corporate governance is provided, which is then concluded with a proposed corporate governance framework as a starting point for further development. We propose that it is stakeholder concentration that determines the quality of corporate governance. Next objective of this paper is the more ambitious one of addressing the role of accounting and finance disciplines to serve corporate governance. We test empirically if the use of some accounting and finance tools would have alerted management, auditors and regulators as well as investors to the impending collapse of failed firms ahead of time. If performance deterioration is not verifiable by using such acclaimed tools of these disciplines, then the advocacy of these disciplines is untenable and their contribution is overstated. Careful application of accounting-cum-finance tools, it appears, would have pre-identified the financial weakening of troubled firms, well ahead of time to catastrophic failures.

IMF BANK-RESTRUCTURING EFFICIENCY OUTCOMES:EVIDENCE FROM EAST ASIA

This paper reports new findings for the first time on bank efficiency over the pre- and post-IMF-restructuring periods for East Asia using the DEA and regression models. Bank closures that followed the IMF interventions are economically justified; but mergers and acquisitions experience short-term efficiency losses. Recapitalization and then re-privatization of bad banks have led to efficiency improvements, but still increased government ownership. Ease of entry has resulted in more foreign bank participation with improved performance; further spurts in improvements, however, may take longer time. These findings advocate bank restructuring during the crisis; but well-designed measures are vital to ensure its success. Bank mergers and acquisitions need to be scrutinized. Privatization, particularly with strategic foreign ownership, of domestic banks which should be further encouraged. To reap the potential benefits of such foreign participation, stronger economic reforms of the host countries should be further pursued.

CFD Modeling of Droplet Spreading Behavior on Tablet Edge Using Fluent 14.0

In this paper, a numerical model was developed for direct simulation of droplet spreading behavior on the tablet edge since the coating unifonnity become the most critical problem nowadays in pharmaceutical industry. Owing to that problem, a simulation of droplet spreading behavior on the tablet edge has been developed to study the effect of tablet surface to the droplet spreading behavior. This modeling will be conducted by using integrated software, Computational Fluid Dynamics which is Fluent 14.0. Only water will be used in this modeling over to the different velocity of droplet. As addition, the surface roughness and contact angle also will be varying due to study the behavior of the spreading in certain condition. This project actually is the continuality of the previous laboratory experiment which is the study of the droplet impact behavior on the edge of a tablet to predict the coating variation, conducted by Ku Zilati Ku Shaari and Richard Turton from Department of Chemical Engineering, West Virginia University, Morgantown. The result of the simulation will be compared to this experiment result in order to have the clear understanding of spreading behavior on the tablet edge. As the result, there is not much different of the droplet spreading behavior between geometry I, geometry 2 and geometry 3 due to the very small change in the surface roughness applied to the wall. Theoretically, the smoothest surface will give the largest spreading factor, D;/ Do. Thus, further development and study on the model will be taken for the future work

A model driven approach to analysis and synthesis of sequence diagrams

Software design is a vital phase in a software development life cycle as it creates a blueprint for the implementation of the software. It is crucial that software designs are error-free since any unresolved design-errors could lead to costly implementation errors. To minimize these errors, the software community adopted the concept of modelling from various other engineering disciplines. Modelling provides a platform to create and share abstract or conceptual representations of the software system – leading to various modelling languages, among them Unified Modelling Language (UML) and Petri Nets. While Petri Nets strong mathematical capability allows various formal analyses to be performed on the models, UMLs user-friendly nature presented a more appealing platform for system designers. Using Multi Paradigm Modelling, this thesis presents an approach where system designers may have the best of both worlds; SD2PN, a model transformation that maps UML Sequence Diagrams into Petri Nets allows system designers to perform modelling in UML while still using Petri Nets to perform the analysis. Multi Paradigm Modelling also provided a platform for a well-established theory in Petri Nets – synthesis to be adopted into Sequence Diagram as a method of putting-together different Sequence Diagrams based on a set of techniques and algorithms

The US exchange rate behavior: an advanced test on price parity theorem

We researched a significant topic on exchange rate behavior by restating the test procedures in a novel manner and applying an appropriate econometric methodology to re-examine exchange rate behavior of the US economy. The central research question is: Do inflation differences across two economies fully account for exchange rate changes, if controls for non-parity factors are embedded while controlling for interest rate differences? The results affirm, for the first time, that price parity factor holds well while other factors - interest rates and non-parity factors - also affect exchange rates significantly. Our tests also identifies the time to equilibrium to be 0.139 (13.9%) per quarter to adjust to equilibrium value. In our view, these findings extend our knowledge of how the US dollar behavior is consistent with parity and non-parity theorems. Prior tests have been inconclusive on parity factors. The Malaysian Ringgit is heavily dependent on the US dollar exchange rate, and our findings thus have monetary policy implications for the Malaysia's regulators

Do accounting and finance tools serve governance?

A brief review of recent literature on corporate governance is provided, which is then concluded with a proposed corporate governance framework as a starting point for further development. We propose that it is stakeholder concentration that determines the quality of corporate governance. Next objective of this paper is the more ambitious one of addressing the role of accounting and finance disciplines to serve corporate governance. We test empirically if the use of some accounting and finance tools would have alerted management, auditors and regulators as well as investors to the impending collapse of failed firms ahead of time. If performance deterioration is not verifiable by using such acclaimed tools of these disciplines, then the advocacy of these disciplines is untenable and their contribution is overstated. Careful application of accounting-cum-finance tools, it appears, would have pre-identified the financial weakening of troubled firms, well ahead of time to catastrophic failures

Re-examination of price level differentials using economic freedom index

Findings reported in this paper provide improved explanation as to what factors are correlated with price levels across a large sample of 152 countries. The results are obtained from using a new set of variables called economic freedom indices, covering 19 years. Prior studies used income, trade openness, and productivity, which led to results with much less explanatory power compared to findings reported in this paper. We apply advanced panel data econometrics to obtain robust estimates of parameters, which, in our view, led to results with substantially high coefficient of variations close to 90%. The findings show that all the nine dimensions of economic freedom used in this study significantly account for the variations in national price levels