Showing papers in "International Review of Economics & Finance in 2015"

TL;DR: In this paper, the effect of financial development and income on energy consumption was investigated in 53 countries for the period 1999-2008, using a panel threshold regression approach to re-examine the effect.

TL;DR: The authors showed that the effect of financial development on economic growth depends on the growth of private credit relative to the real output growth, and that financial development becomes negative if there is rapid growth in private credit not accompanied by growth in real output.

TL;DR: In this article, the authors investigated the relationship between board gender diversity and firm financial performance in the context of a transitional economy characterised by an underdeveloped corporate governance system and found that board diversity appears to have an effect on firm performance.

TL;DR: In this article, the authors examined the relationship between family firms and earnings management by considering the influence of board independence and found that family firms are positively related to earnings management, and that board independence is important for an emerging market to mitigate the earnings management behavior carried out by family firms.

TL;DR: Wang et al. as discussed by the authors investigated the relationship between board size and risk-taking in Chinese firms, and found that firms with smaller boards experience larger variability in future firm performance.

TL;DR: This article examined spillover effects of the recent U.S. financial crisis on five emerging Asian countries by estimating conditional correlations of financial asset returns across countries using multivariate GARCH models.

TL;DR: In this paper, the authors created new text-based indicators of both general economic and policy specific uncertainty from New York Times and used them first, to chart changes in the level of uncertainty in the US for the period 1985-2007, second, to determine the role of policy in these swings, and, third, to assess their impact on the economy, equity markets, and business cycles.

TL;DR: In this article, the effects of foreign direct investment inflows and environmental aid disbursements on environmental degradation using panel data for some selected developing countries were examined using a fixed effects model, and the existence of an environmental Kuznets curve for carbon dioxide as well as total green house gas emissions from the energy and industrial sectors was found.

TL;DR: In this paper, the authors explore the determinants of investor decision-making in international stock markets and find that investors' behavioral pitfalls dominate their herding tendency, as shown in cross-sectional absolute deviations of returns.

TL;DR: Wang et al. as discussed by the authors examined the relationship between trade credit and bank credit and investigated how the relation is affected during the 2008-2009 global financial crisis, finding that there is a significantly positive relationship between the supply of trade credit (i.e., accounts receivable) and bank loans.

TL;DR: In this article, the authors apply wavelet analysis to examine the relationship between the U.S. housing and stock markets over the period 1890-2012, and find that the causal effects between the markets in the frequency domain occur generally at low frequencies (longer term).

TL;DR: Wang et al. as discussed by the authors discuss various issues involved in Chinese shadow banking, including the type, size, risk, and reasons behind the growth of this market, and suggest that policymakers have to implement financial reforms to incorporate this informal market into the formal one so as to exercise better control and monitoring.

TL;DR: In this article, the authors analyzed the possible presence of Granger causality between debt and growth in 16 OECD countries from 1980 to 2009, considering not only government debt but also non-financial corporate and household debt.

TL;DR: The authors examined the asymptotic dependence between the Chinese stock market and the world crude oil market based on the Extreme Value Theory (EVT) and found a positive extremal dependence.

TL;DR: In this paper, the authors use the Bayesian Markov-switching vector error correction (MS-VEC) model and the regime-dependent impulse response functions (RDIRFs) to examine the transmission dynamics between oil spot prices, precious metals (gold, silver, platinum, and palladium) spot prices and the US dollar/euro exchange rate.

TL;DR: In this article, the authors investigated the return spillovers and volatility spillovers from developed markets into the financial markets of selected emerging countries in Asia and the Middle East and North Africa (MENA) region.

TL;DR: Li et al. as mentioned in this paper used hand-collected data on the personal characteristics of supervisory board members to study the relation between these characteristics and the accounting information quality of firms in China.

TL;DR: In this paper, the authors investigated whether the increased presence of foreign banks which are listed on a national stock market has contributed to the increase in the systemic risk, in particular after the financial crisis of 2007-2009.

TL;DR: The authors describes the primary uses of the VIX index in the financial literature, offering for the first time a joint view of its successes and failures in key financial areas, and offers an entre for researchers who consider VIX as a proxy for volatility and/or risk.

TL;DR: In this paper, the authors investigated whether a firm with strong corporate governance (CG) requires political connections (PCs), that is, whether CG and PC substitute for or complement each other.

TL;DR: In this article, the authors derived time-varying exchange rate pass-through (ERPT) degree and investigated the macroeconomic determinants of the degree of ERPT by combining dynamic conditional correlation-generalized autoregressive conditional heteroskedasticity (DCC-GARCH) and panel threshold regression analyses.

TL;DR: In this article, a new insight into the dynamic relationship between money growth and inflation in China by applying a novel wavelet analysis was provided. But, the analysis is limited to time-domain and frequency-domain views.

TL;DR: The authors used a nonparametric panel data model to estimate the financial system-economic growth relationship and found that as long as a country's domestic credit and private credit are above their cross-sectional mean, they have a positive effect on GDP growth.

TL;DR: In this article, the unconditional patterns of volatility spillovers in EMU sovereign bond markets were examined using a measure recently proposed by Diebold and Yilmaz (2012), and a dynamic analysis was used to evaluate net directional volatility spillover for each of the eleven countries under study, and to determine whether core and peripheral markets present differences.

TL;DR: This paper found that product market competition increases the incentives for firms with weak governance structures to maximize the wealth of shareholders, thereby increasing the adjustment speed toward target leverage, and that the difference in such adjustment speed between firms with strong and weak corporate governance structures is smaller among firms operating in the highly competitive industries.

TL;DR: In this paper, market efficiency and trading rule profitability of the Ugandan foreign exchange market for the period January 1994 to June 2012 were investigated using a battery of variance ratio tests with superior size and power properties.

TL;DR: This paper reviewed the literature on investor reaction and sentiment with respect to public information arrival in emerging markets and discussed the implications of the findings for the validity of theoretical models emphasizing public information arrivals as the main mover of asset prices.

TL;DR: In this article, the authors examined the cointegration property of exchange rates and prices using techniques that have received limited attention in several studies on the validity of the Purchasing Power Parity (PPP) hypothesis.

TL;DR: In this paper, the authors examined whether the intertemporal risk-return relationship in the U.S. stock market varies with bull and bear markets, based on the non-parametric Bry-Boschan approach and the nonparametric Bartlett kernel based realized variance as a proxy for the conditional variance.

TL;DR: In this article, the authors highlight some areas of research in which novel econometric, financial econometrics and empirical finance methods have contributed significantly to the analysis of financial risk management when there is economic uncertainty, especially the power of print.