This paper analyses the impact of bank-specific characteristics on the loan portfolio returns of government-owned banks (GBs) in Indonesia. The data covers the pre and post GFC periods from 2003-2011 of 30 GBs (270 bank year observations). Using fixed-effect panel data regression, the results show that size, equity and liquidity affect the loan portfolio returns of GBs in Indonesia. This suggests that the lending policies and loan pricing of GBs in Indonesia may differ based on their specific characteristics....

The paper explores the reputational damages suffered by major and minor rating agencies as a consequence of the subprime crisis. The analysis is carried out through a standard event standard methodology on a sample of 1821 rating actions during the period November 2003 – November 2013. The evidence shows a lower market reaction to rating actions, especially when the evaluation is far away from the threshold between investment and speculative grade. JEL Codes: G12, G14, G24 ...

This study examines the effectiveness of modular uses of financial data in determining common stock value by testing publicly available EPS, P/E, P/NAV etc. from December 2009 to January 2014. It found the models failed to predict stock price suitably. An unusual difference was found lying between intrinsic value, determined by multiples models, and actual price. Pragmatically, analysts have little scope to verify publicly available information, which believably improvised and serves common investors...

This paper examines the relationship between stock prices and exchange rates. Both the long-run and the short-run association between these variables are explored. The study uses monthly data on four South Asian countries Pakistan, India, Bangladesh and Sri- Lanka, for the period January 2008 to December 2012. The paper applied Co-integration, Vector Error Correction Modelling Technique and Standard Granger Causality tests to examine the association between stock prices and exchange rates. No long-run...

At the time of the subprime crisis, investors strongly blamed credit rating agencies (CRAs). Six years later, we want to verify if CRAs are still suffering a reputational damage by measuring stock prices reactions to rating announcements. To test our hypothesis we conduct an event analysis on the American, EU area and Asian/Pacific stock markets over a ten-year period from November 2003 to November 2013. We find that the postcrisis abnormal returns are in general lower if compared with the pre-crisis...

Voter participation is crucial for any democracy. Without effective participation, elections are not representative of public opinion and thus positive outcomes of democracy are hard to expect. Not surprisingly economists and researchers of other interested disciplines try to find the set of variables that explain voter participation. They used wide varieties of methodologies starting from rational voting models to game theoretic approaches. However studies are mostly focused on developed economies...

The first objective of this study is to analyse the elasticity of labour-output and labour-wage for professional and technical labours. The second objective is to project the requirements of these two occupational categories for year 2015 and 2020. The analysis is based on data of four selected services subsectors, namely, professional business, education, health and information and communication technology for the period 2000- 2010. Data are obtained from the Service Industry Survey collected by...

We report the specific feature of the block trading in the Chinese stock market. There are discounts in the block trading contrast to the block trading premium in the United States, Japan and the majority stock markets in the world. We show that the discount is rational because the stock’s performance after the block trading is negative. Profit taking actions and private information are possible explanations for the discount. The segmentation between regular stock market and block trading market...

This paper investigates the relationship between bank profitability and macroeconomic conditions. Such indicators as Return on Asset (ROA) and Return on Equity (ROE) are analyzed with such macroeconomic indicators as Gross Domestic Product (GDP), Customer Price Index (CPI), and IPI (Industrial Production Index). As the economy goes into a downturn, businesses and consumers default on loans, thus causing bank profits to decline. Alternatively, during economic expansions, lenders tend to take increasingly...

This study examines the influence of environmental factors in a shopping mall on consumer behaviour especially during holiday season. Within a shopping mall there needs to be a balance of external environment elements that serves to elicit human stimuli to help induce different sensations and psychological effects on a person, ultimately leading to positive consumer behaviours and increased purchase intentions. However the wrong balance of these elements can hinder the positive reactions of consumers...