• The Journal of Asian Finance, Economics and Business
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• 제9권5호
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• pp.41-51
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• 2022

The research looks into the impact of stock split announcements on stock prices and market efficiency in the Colombo Stock Exchange (CSE). This research uses a sample of 26 stock split announcements that occurred between 2020 and June 2021. According to the Global Industry Classification Standards, the stock split announcements covered in the study pertain to 26 businesses and 9 industries (GICS). To obtain the results, the usual event research methodology is used. The findings demonstrate significant average abnormal returns of 15.01 percent on the day the stock split news is made public and abnormal returns of 4.11 percent and -4.05 percent one day before and after the stock split announcement date, respectively. The study's findings revealed significant positive abnormal returns one day before the disclosure date, indicating information leakage, and significant negative abnormal returns the next day after the announcement date, indicating CSE informational efficiency. Because stock prices adapt so quickly to public information, these findings support the semi-strong form efficient market hypothesis, which states that investors cannot gain an abnormal return by trading in stocks on the day of the stock split announcement.

• The Journal of Asian Finance, Economics and Business
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• 제9권2호
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• pp.49-59
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• 2022

The relationship between income inequality and capital account openness is empirically investigated in this study, where macroeconomic variables have opposing effects. Panel data used in the study from the KAOPEN Index and World Bank consists of 28 Asian countries and has been examined; it contains annual observations from 1970 to 2018. The data is examined using a random-effect model based on GMM estimates. Income inequality and capital account openness are positively and significantly related, according to our findings. Overall, the findings imply that increasing income gaps reduced capital investment in nations with large discrepancies. The growing economic discrepancy is being caused by the rich's increasing income share at the expense of the poor. In Asia, inward capital account openness exacerbates income inequality, while outward capital account openness exacerbates it. As a result, income inequality slows economic growth, leading to inflation, unemployment, and increased government spending in several Asian countries. Our control factors, GDP, and other secondary school enrolments, all had a statistically significant negative relationship with income inequality. Income disparity has a positive and statistically significant association with government spending, inflation, population, trade openness, and unemployment. Income disparity has a negative association with capital account openness, gross domestic product, and secondary school enrollment.

• The Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.607-617
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• 2020

This study investigates the causal relationship between public and private external debt and economic growth in developing countries. Our model includes 18 selected Asian developing and transition economies from 1995 thru 2019. We employ the dynamic heterogeneous panel data methods, pooled mean group (PMG), robust cross-sectional augmented autoregressive distributed lag (CS-ARDL), and pairwise panel causality test. The results of PMG and CS-ARDL show the existence of causality between external debt and economic growth both in the short-run and long-run. The pairwise Granger causality test found the bidirectional causal relationship runs from total external debt, public external debt, and private external debt to economic growth and economic growth to external debt. The results showed first the existence of causality in the short-run and long-run between external debt and economic growth and the second, bi-directional causality that runs from external debt to economic growth and economic growth to external debt. Both the dynamic models and robust estimator found the same inferences about the impact of main variables on economic growth in Asian developing and transition economies. The findings of this study suggest to assure debt management, investment in productive sectors, increase domestic savings, decrease external dependency, and focus on international trade.

• Journal of Digital Convergence
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• 제8권2호
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• pp.189-202
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• 2010

Although e-Finance has become more and more prevalent in everyday life, with the development of information technology, further development of e-Finance and commercial transactions has been limited. Therefore it is important for financial institutions to be aware of the significance of e-Finance risk and take appropriate actions. And an effective risk management function relies on a well-defined organization structure to eliminate gaps and minimize overlaps in risk management duties, responsibilities, and authorities. It defines and assigns risk management responsibilities, authorities, and accountabilities to appropriate personnel. The adequate organization of the risk management function is very important in the success of risk management.

• Korean Journal of Organic Agriculture
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• 제11권4호
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• pp.39-59
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• 2003

The purpose of this study is to introduce issues on agricultural policy of participatory government and to suggest some implications for national consensus. According to the finance and investment plan, 119 trillion won in total will be invested in the farming industry for improving the welfare system and development of the sector over the next 10 years. It is very important that this plan will make Korean farmers competitive and income per capita increased more and more. By the way, the plan has been argued by farmer’s organization(NGO) and some people of academic circles because there is a fair question as to how effective these investment aids will be. Therefore, the finance and investment plan must be established on the basis of effective execution system as well as additional discussion for national agreement. In addition, the 'Special Plan Committee for agriculture-fishery and farming-fishing communities' will work out an ideal framework for succeeding this plan.

• KDI Journal of Economic Policy
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• 제40권3호
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• pp.91-115
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• 2018

This paper aims to identify the most effective mode of development finance flows for the economic growth of middle-income developing and least developed countries, separately. It also attempts to confirm whether governance has any significant role in the causal relationship between development finance flows and economic growth. Policymakers in each developing country should select the most effective modality of development finance inflows among the different modalities (such as Official Development Assistance (ODA) grants, Official Development Assistance (ODA) loans, FDI, and international personal remittances) and expand it for their economic growth. Dynamic panel regression models were used on 48 least developed countries and 89 middle-income developing countries, respectively, during the Millennium Development Era: 2000-2015. The empirical analysis results show that ODA grants and remittances were most effective in promoting economic growth for least developed countries, while FDI was most effective for middle-income developing countries. These findings were not affected by the status of governance of the individual country.

• The Journal of Asian Finance, Economics and Business
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• 제7권10호
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• pp.1071-1080
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• 2020

This study aims to explore the critical success factors of the Water Public-Private Partnership (PPP) Projects in developing country with evidence from Indonesia. We all know that water is a basic need and therefore it becomes very important for the governments especially in the developing countries to develop and formulate a comprehensive water policy to deliver and manage the water services in the most appropriate manner as well tackle several challenges such as budget and project efficiency. In this context, PPP is a promising scheme to address the water problems, hence it becomes important to reveal the success factors of water PPP projects. An Analytic Hierarchy Process (AHP) questionnaire built from delphi methods is used to capture the perception of the relevant stakeholders in relation to the success factors. The results of this study show the most critical success factors in PPP water projects is the support and acceptance of the stakeholders from the community, whereas the private and public entities are the the second and third important factors. These findings contribute to the success of the PPP stakeholders by enhancing the policy-making decision process and by executing the water policies to support the development of PPP in the Water Sector.

• The Journal of Asian Finance, Economics and Business
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• 제10권1호
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• pp.133-143
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• 2023

The detrimental impacts of financial instability on the world economy during the financial crisis highlighted the requirement to understand the existing financial circumstances. Stability and developments in financial conditions are important for economic prosperity. This study analyses the impact of geopolitical risk on the economic conditions of some specific emerging economies using monthly data from January 1999 to September 2016 by applying a fixed-effects panel data model. The estimation results demonstrated that geopolitical risk has a significant, negative impact on financial conditions. It shows geopolitical risk could be seen as a key factor that contributes towards financial conditions. Further, it implies that negative shocks of high geopolitical risk experienced by emerging economies are one of the primary reasons for the financial conditions' deterioration. The findings provide important insights for governments, policymakers, and investors. For instance, governments and politicians should refrain from expressing or producing tension, economic discomfort, or news that is likely to increase a high geopolitical risk. Maintaining a close eye on geopolitical risk and its sources may also help to stabilize financial conditions and develop a well-functioning financial system. As a result, investors would be better informed about an economy's economic and financial conditions, allowing them to diversify their international portfolios and devise investing strategies during uncertain economic times.

• Journal of Navigation and Port Research
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• 제46권5호
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• pp.427-434
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• 2022

The purpose of this study was to analyze whether the disposition effect, a behavioral finance theory, exists in decision-making for ship investment. A case study was adopted as the research methodology, and data obtained through narrative and questionnaire responses on decision-making for ship sales were analyzed from a behavioral finance perspective. The analysis found that the disposition effect had an impact on the decision to sell a vessel. The narrative responses revealed that some shipping companies tended to miss the opportunity to maximize ship sale profit because they sold their vessels readily and quickly before the price of the vessels had risen sufficiently. The questionnaire survey results indicated that the majority of the survey respondents chose to sell a ship whose price had risen slightly from the initial purchase price. Managers in charge of ship investment should examine whether the disposition effect exists in their decision-making when selling a ship.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.591-599
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• 2021

The increased risk in financial firms, due to Global Financial Crises and high international trade activities, has encouraged banks to use derivatives for both managing their financial risk and earning non-operating income simultaneously. The present study brings new evidence in the existing literature by determining the drivers behind financial derivative usage in Pakistani banks for 2011 till 2016. Moreover, the paper examines how risk plays a moderating role in determining the relationship between derivative usage and bank value. While assessing the determinants, a two-stage test has conducted, first, the logit regression was used to test the drivers behind the derivative usage in banks. Second, Tobit regression was run to analyze the factors leading to determine the extent of derivative usage. The findings demonstrate that Pakistani banks are using derivatives for both risk management and speculative motive as they are customers and users of derivatives at the same time. Empirical results, regarding moderating role of risk on the value implications of derivative usage, provide mixed findings as derivative usage gives value premium in case of non-systematic risk and foreign exchange risk. Whereas value discounts have been observed for cases where systematic risk is high and managers try to earn non-operating income from speculative activities.