Evaluating the exchange rate and commodity price nexus in Malaysia: evidence from the threshold cointegration approach

This paper examines the long- and short-run dynamics of asymmetric adjustment between the nominal exchange rate and commodity prices, namely oil, palm oil, rubber, and natural gas prices, in Malaysia using monthly data from January 1994 to December 2017. The relationship between exchange rate and each commodity price is examined in terms of Engle-Granger and threshold cointegrations. The estimated results provide evidence of long-run threshold cointegration and show that the adjustments towards the long-run equilibrium position are asymmetric in the short run. Furthermore, this study finds evidence of a unidirectional causal relationship running from the nominal exchange rate to oil price in the long and short run using a spectral frequency domain causality application. There is also empirical evidence of bidirectional causality between the nominal exchange rate and palm oil price, rubber price, and natural gas price in the long and short run. Overall, the findings have significant implications for the current debate on the future of primary commodities in Malaysia

The impact of macroeconomic, oil prices and socio-economic factors on exchange rate in Pakistan: an auto regressive distributed lag approach

The study examines the linkages among the nominal exchange rate, oil prices, terrorism and three selected macroeconomic variables: Real growth rate, inflation rate and interest rate. The paper employed auto regressive distributed lag to test the long run and short run dynamics over the period 1980-2015 in the context of Pakistan. A novel technique to this research is that we demarcate the relationship among macroeconomic variables, financial variable and socio-economic variable. The findings of the research depict a robust long run relationship among variables. Furthermore, the results showed that the adjustment process is slow and short run adjustment indicating that the discrepancies adjust completely in the same period. Hence, the efficient monetary and fiscal policy should keep into consideration before devising policies that have a greater influence on the variability of exchange rate

The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach

The study examines the linkages among the nominal exchange rate, oil prices, terrorism and three selected macroeconomic variables: real growth rate, inflation rate and interest rate. The paper employed Auto Regressive Distributed Lag to test the long run and short run dynamics over the period 1980 to 2015 in the context of Pakistan. A novel technique to this research is that we demarcate the relationship among macroeconomic variables, financial variable and socio-economic variable. The findings of the research depict a robust long run relationship among variables. Furthermore, the results showed that the adjustment process is slow and short run adjustment indicating that the discrepancies adjust completely in the same period. Hence, the efficient monetary and fiscal policy should keep into consideration before devising policies that have a greater influence on the variability of exchange rate. Keywords: Nominal Exchange Rate, Macroeconomic Variables, Terrorism, Auto Regressive Distributed Lag JEL Classifications: F02, F31, F4

Hybrid model of exchange rate determinants in Malaysia

The nominal exchange rate determination has been one of the most challenging tasks in international finance. Macroeconomic fundamental analysis has dominated the studies of exchange rate movements over the long-run horizon. However, it is a consensus that macroeconomic fundamentals do not perform well in explaining the dynamics of exchange rate over short-run horizon. On the other hand, the microstructure approach and oil price obtained supportive evidence to explain the dynamics of exchange rate at short-run horizon. Thus, the aim of this study is to analyse the nominal exchange rate determination with a multidimensional view, such as macroeconomic fundamentals, oil price, and microstructure approach over long-run and short-run horizons in the context of Malaysia. To achieve this goal, two datasets are used in this study. Firstly, the study examines the impact of macroeconomic fundamentals and oil price on the nominal exchange rate using monthly data for the period of January 1994 to December 2017. The relationship among the determinants is examined in terms of combined cointegration, Dynamic OLS, and threshold cointegration. The results show that a significant long-run relationship exists among nominal exchange rate, macroeconomic fundamentals, and oil price using combined cointegration and Dynamic OLS. The empirical findings also highlight the existence of a significant threshold relationship between the nominal exchange rate and its determinants by Threshold Autoregressive and Momentum Threshold Autoregressive. In addition, the short-run adjustment of the exchange rate deviation from their longrun equilibrium values is determined by Momentum Vector Error Correction Model. The findings show that the short-run dynamics of the exchange rate in the long-run equilibrium path is being corrected through money supply, interest rate, and oil price in Malaysia. Secondly, this study analysed another dataset of high-frequency daily data from 2010 to 2017 using a nonlinear ARDL approach. The results show the nonlinear relationship between the nominal exchange rate and hybrid approach. The empirical findings indicate that instead of the order flow, the bid-ask spread has some informational content to explain the exchange rate movement. The association between the exchange rate and the bid-ask spread supports the view that liquidity effects play an important role in determining the exchange rate. Additionally, the negative changes in the oil price potentially act as the macroeconomic news announcement which plays a significant role in the determination of the Malaysian exchange rate. The empirical results allow for long-run and short-run asymmetric pricing impacts of a hybrid approach on the nominal exchange rate in Malaysia. The results of this study are useful in providing policy direction and practical implications for the monetary authorities and market dealers to employ interest rate for the adjustment of the exchange rate in the long-run and short-run horizons. In addition, the bid-ask spread and oil price should be considered as an influential exchange rate determinants in short-run in Malaysia. Future research potentially sheds light on the asymmetric oil price impact on the Malaysian exchange rate during the outbreak of Covid-19

Exploring the Role of Organizational Justice as an Antecedent of Psychological Ownership

Many organizations around the globe are facing a number of threats in terms of intense competition and hence employees’ intentions to switch the organizations. The current study is carried out to explore an emerging area of psychological ownership in relation to organizational Justice. The feelings of psychological ownership may provide the organizations a sustainable competitive advantage by enhancing the retention rate of valuable employees and making them to go for an extra mile for their organization. In this study we will be exploring the role of organizational justice as an antecedent of psychological ownership. The results of the study reveals that among the three dimensions of organizational justice (Distributive, Procedural & Interactional), procedural justice is found to be a strong predictor of psychological ownership. To prove the hypothesis of the study convenience sampling technique is used for data collection and about 37 useable responses from employees are considered for data analysis. Implications of these results as well as avenues for future research are also discussed

Das Recht auf berufliche Bildung in der Arbeitsfoerderung: d. Spannungsverhaeltnis zwischen Rechtsanspruechen d. Einzelnen u. staatl. Gewaehrung von Rechtspositionen

SIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel A 162274 / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman

CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY: A STUDY ON TELECOMMUNICATION SECTOR OF PAKISTAN: Shamaila Gull, Khurram Shabih Zaidi, Ibtisam Butt

The corporate governance mechanisms in Pakistan are not given much importance to enhance the corporate social responsibility activities in business organizations. Organizations are expanding their boundaries and adopting new and innovative ways to show that they care for humanity. This article studies the influence of corporate governance on different corporate social responsibilities activities in Pakistani organizations. Five-point likert scale questionnaire was used to measure the impact of corporate governance on corporate social responsibility activities in the telecommunication sector of Pakistan. Regression analysis was done to test the relationship between corporate governance and corporate social responsibility, along with other correlational and descriptive statistical analysis. The results suggest that the corporate governance dimensions of discipline, social awareness, transparency, fairness and responsibility have a significant effect on corporate social responsibility