Business Commons^™

Globalisation And Government Size In Nigeria: A Revisit Of The Compensation Hypothesis, P. I. Nwosa, T. O. Akinbobola

Economic and Financial Review

The link between globalisation and government expenditure has remained contentious in the literature particularly from a disaggregated perspective. Hence, this study examines the compensation hypothesis by analysing the relationship between globalisation and government size in Nigeria for the period 1981 to 2018. Globalisation is proxied by trade and financial openness while government size is measured by final consumption expenditure by the general government (FCE), share of government expenditure on economic services (ECO), share of government expenditure on social and community services (SCS), and share of government expenditure on transfers (TRF). The study employed the error correction modelling technique and the …

Analysis Of The Impact Of Central Bank Of Nigeria's Agricultural Intervention Funds On The Economy, E. T. Adamgbe, M. C. Belonwu, E. R. Ochu, I. I. Okafor

Economic and Financial Review

This paper set out to investigate the impact of Central Bank of Nigeria's interventions on the agricultural sector within an economy-wide framework of general equilibrium modelling. The paper adopted a dynamic (recursive), two-sector general equilibrium model of the Nigerian economy with some modifications on the standard model developed by the Centre for Econometric and Applied Research (CEAR) and incorporated the contributions of the CBN's agricultural based interventions as increases in the stock of agricultural capital to have a more robust size of interventions into the agricultural sector. The SAM used for the CGE model analysis was derived from the updated …

Investing With Cryptocurrencies: A Liquidity Constrained Investment Approach, Simon Trimborn, Mingyang Li, Wolfgang Karl Hardle

Sim Kee Boon Institute for Financial Economics

Cryptocurrencies have left the dark side of the finance universe and become an object of study for asset and portfolio management. Since they have low liquidity compared to traditional assets, one needs to take into account liquidity issues when adding them to a portfolio. We propose a Liquidity Bounded Risk-return Optimization (LIBRO) approach, which is a combination of risk-return portfolio optimization under liquidity constraints. Cryptocurrencies are included in portfolios formed with stocks of the S&P 100, US Bonds, and commodities. We illustrate the importance of the liquidity constraints in an in-sample and out-of-sample study. LIBRO improves the weight optimization in …

A Behavioral Signaling Explanation For Stock Splits: Evidence From China, Chenyu Cui, Frank Weikai Li, Jiaren Pang, Deren Xie

Research Collection Lee Kong Chian School Of Business

We propose a behavioral signaling explanation for the positive announcement effects of stock splits. There are two key behavioral ingredients in our model. First, (retail) investors have misconceptions about stock splits that make them view stock splits as good news. Second, investors are loss-averse and will be particularly disappointed if a splitting firm’s ex-post performance falls short of expectation. In a separating equilibrium, only managers with favorable private information use stock splits to signal. Using a comprehensive sample of stock splits in China over the period of 1998 to 2017, we find supporting evidence: (1) stock splits elicit positive announcement …

Why Commonality Persists?, Raja Velu, Zhaoque Zhou, Chyng Wen Tee

Research Collection Lee Kong Chian School Of Business

Studies on commonality in returns, order flows and liquidity find that the first principal component is closely aligned with the market factor. With the increasing presence of high-frequency trading, commonality in returns, order flows, and liquidity can potentially arise from the commonality in the interpretation of real-time signals. In this paper, we go beyond the first factor and show that the other dominant principal components consistently reflects investors' herding behavior, demonstrating the multi-dimensional aspect of commonality. Instead of relating the asset returns to order flows, we take both as endogenous, and provide empirical evidence showing that returns commonality is driven …

Commentary: Where Does The Talent Pools Of Smes Come From?, T. Mandy Tham

Research Collection Lee Kong Chian School Of Business

In a commentary, SMU Assistant Professor of Finance Mandy Tham explored how ‘family members’ is defined could affect the size of talent pool for SMEs and family businesses, and suggested some criteria for the selection of family members to be nurtured for the SMEs and family businesses.

Time-Series Momentum: Is It There?, Dashan Huang, Jiangyuan Li, Liyao Wang, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

Time-series momentum (TSM) refers to the predictability of the past 12-month return on the next one-month return, and is the focus of several recent influential studies. This paper shows, however, that asset-by-asset time-series regressions reveal little evidence of TSM, both in- and out-of-sample. While the t-statistic in a pooled regression appears large, it is not statistically reliable as it is less than the critical values of parametric and non-parametric bootstraps. From an investment perspective, the TSM strategy is profitable, but its performance is virtually the same as that of a similar strategy that is based on historical sample mean and …

Nebraska Monthly Economic Indicators: February 26, 2020, Eric Thompson

Leading Economic Indicator Reports

The Leading Economic Indicator – Nebraska (LEI-N) 1 fell by 0.15% during January of 2020. The modest decrease in the LEI-N, which is designed to predict economic activity six months into the future, followed a strong increase in December 2019. Taken together, the two monthly results indicate moderate economic growth in Nebraska through mid-2020. The leading indicator fell due to a drop in airline passenger enplanements and an increase in initial claims for unemployment insurance. However, business expectations remained positive during the month, with respondents to the January Survey of Nebraska Business reporting plans to increase sales and employment at …

The Outdoor Recreation Economy In The Mountain West, Kaylie Pattni, Ember Smith, Caitlin Saladino, William E. Brown

Economic Development & Workforce

This fact sheet provides select data from the State Outdoor Recreation Satellite Account (ORSA) at the Bureau of Economic Analysis (BEA) to highlight the outdoor recreation economy in the Mountain West region, including Nevada, Utah, Arizona, New Mexico, and Colorado.

Blockchain Technology And The Future Of Video Games, Is Presence Still Relevant?, Stef Nicovich, Jessica Scheld

Atlantic Marketing Association Proceedings

No abstract provided.

Service With A Smile: How Organizational Injustice Impacts Emotional Labor, Valeriya Shapoval

Rosen Research Review

In the hospitality industry, where staff are expected to always deliver "service with a smile," organizational injustice can affect staff wellbeing and create emotional dissonance, preventing them from delivering high quality service. Dr. Valeriya Shapoval from Rosen College of Hospitality Management has documented the relationship between organizational injustice and emotional labor. Her work proposes solutions that hotel managers can implement to support their staff in achieving brand success.

Increasing Health Tourism Spending In The United States, Jorge Ridderstaat, Dipendra Singh

Rosen Research Review

An increasing number of people are taking advantage of health tourism to access medical services abroad. For the U.S. to be competitive in the lucrative health tourism environment, it is essential to target the right markets. Until now the information available to do this has been limited. This knowledge gap is being addressed by Dr. Jorge Ridderstaat and Dr. Dipendra Singh from Rosen College of Hospitality Management and colleagues. These researchers have developed a microeconomic elasticity approach that offers an understanding of the effects of individual tourism markets on the total health tourism spending in the U.S.

Consequences Of Kaizen Practices In Msmes In The Philippines: The Case Of The Manufacturing Productivity Extension Program (Mpex), Nestor O. Raneses, Nelson G. Cainghog, Mili-Ann M. Tamayao, Kristine Mae C. Gotera

Goal 8: Decent Work and Economic Growth

The Manufacturing Productivity Extension Program (MPEX) is a fully subsidized public-instigated productivity improvement program directed toward the micro, small, and medium enterprise (MSME) sector. While not advertised and packaged as a Kaizen initiative, it has all the elements of the Kaizen philosophy. Based on survey responses from 64 MPEX beneficiaries and 47 non-MPEX beneficiaries, the study showed that MPEX increased the number of product lines implying that Kaizen practice leads to product innovation among firms. Due to data and confounding issues, significant difference in productivity in terms of number of workers and sales per worker was not established. Firm asset …

Skbi Big 5 Survey 2020 February, Singapore Management University

Sim Kee Boon Institute for Financial Economics

On balance, our overall read of the latest multiyear Big5 survey results implies the following economy-at-risk scale (least to most): India, US, Euro Area, Japan and China (i.e., India’s economy might be least at-risk, while China is deemed to be most at-risk). Broadly, survey participants expect the risk assessment to GDP growth to be skewed to the downside in 2020 followed by a more balanced backdrop in 2021. But participants seem to be more divided, with most responses favoring “downside” or/and “balanced” risks, on the 2022 growth environment. The risks to headline inflation in 2020, however, appear to be more …

Value Added Fed And Feeder Cattle Practices: Are They Paying?, Elliott James Dennis

Extension Farm and Ranch Management News

Summary

Some value added management programs clearly pay more than others and some do not pay at all. However, just like with a breeding or forage management strategy where not every year the cow gets bred back or the grass has sufficient protein, a value added program strategies premiums vary year to year. Switching the way cattle are managed and raised, handled, and fed requires planning and an understanding of labor and management capabilities. Not every cattle producer could or even should switch management practices an animal health protocol – even if premiums do exist. Thus, careful planning and consideration …

How Much Time Do East Texans Spend Commuting? - February 2020, Manuel Reyes-Loya, Marilyn Young, Ayush Kumar

Hibbs Newsletter

In this issue of the Hibbs Newsletter, we discuss key characteristics of the commuting workforce in the U.S. with a focus on East Texas.

Latinos In The Labor Force, Phillip Granberry

Gastón Institute Publications

In 2018 a financial news and commentary website, 24/7 Wall St., ranked Massachusetts as the state with the largest economic and social disparities between Latinos and non-Latino whites. For example, median household income was shown to be slightly above $80,000 for whites and just under $40,000 for Latinos. Even more starkly, the rates of homeownership were shown as 69.3% and 26.0%, respectively.

The present report offers an in-depth look at one aspect of the disparity, namely, the difference between the median wage income of Latinos and non-Latinos (a great majority of whom in Massachusetts are non-Latino white). In 2017 …

Credibility Of Crime Allegations, Frances Xu Lee, Wing Suen

School of Business: Faculty Publications and Other Works

The lack of hard evidence in allegations about sexual misconduct makes it difficult to separate true allegations from false ones. We provide a model in which victims and potential libelers face the same costs and benefits from making an allegation, but the tendency for perpetrators of sexual misconduct to engage in repeat offenses allows semiseparation to occur, which lends credibility to such allegations. Our model also explains why reports about sexual misconduct are often delayed, and why the public rationally assigns less credibility to these delayed reports.

Factors Supporting Turkey’S Policy To Purchase Russian S-400 Anti-Air Strike Defense Units, Chendika Yonanda, Maryam Jamila, Zulkifli Harza, Ilman Syarif Masri

Journal of Strategic and Global Studies

Turkey is a member of the NATO military alliance since 1952, as a member of NATO, cooperation between Turkey and Russia invites counterparts from other NATO alliance countries. But even with criticism, Turkey continues purchasing S-400 from Russia . Therefore, this study aims to analyze the factors that support Turkey's policy on purchasing S-400.This research is a descriptive research through internet-based literature.Turkey's policy in purchasing S-400 analyzed using the concepts of Arms, Alliances and Security Tradeoffs proposed by James D. Morrow. James stated that there are three factors that influence the state to conduct arming; economic & military technological factors, …

How Technology-Based Start-Ups Support U.S. Economic Growth, Mary Blankenship, Caitlin Saladino, William E. Brown

Economic Development & Workforce

This Fact Sheet examines the trends of technology-based start-ups within the United States and specific states in the Mountain West (Arizona, Colorado, Nevada, Utah, and New Mexico) across the top 10 technology industries in 2016, using data provided by a report from the Information Technology and Innovation Foundation.

Pearls, People, And Power : Pearling And Indian Ocean Worlds, Pedro Machado, Steve Mullins, Joseph Christensen

Ohio University Press Open Access Books

Pearls, People, and Power is the first book to examine the trade, distribution, production, and consumption of pearls and mother-of-pearl in the global Indian Ocean over more than five centuries. While scholars have long recognized the importance of pearling to the social, cultural, and economic practices of both coastal and inland areas, the overwhelming majority have confined themselves to highly localized or at best regional studies of the pearl trade. By contrast, this book stresses how pearling and the exchange in pearl shell were interconnected processes that brought the ports, islands, and coasts into close relation with one another, creating …

The Quonset Economic Impact, Edinaldo Tebaldi

Economics Faculty Journal Articles

This report provides a data-driven and comprehensive assessment of the economic impact and tax incidence implications of economic activities at the Quonset Business Park.

Lessons Learned: Ray Dalio, Andrew Metrick, Rosalind Z. Wiggins, Kaleb B. Nygaard

Journal of Financial Crises

Insights from a discussion with Ray Dalio, Founder, Chairman, and Co-Chief Investment Officer of Bridgewater Associates, one of the largest hedge funds in the world. Topics range from monetary policy to communications strategy when responding to a financial crisis.

Basel Iii G: Shadow Banking And Project Finance, Christian M. Mcnamara, Andrew Metrick

Journal of Financial Crises

The Net Stable Funding Ratio (NSFR), a liquidity standard introduced by Basel III, seeks to promote a better match between the liquidity of a bank’s assets and the manner in which the bank funds those assets. The NSFR requires banks to maintain a minimum amount of funding deemed “stable” by the Basel framework based on the liquidity of the banks’ assets and activities over a one-year timeframe. One of the areas seen as most affected by this development may be bank participation in project finance for infrastructure development. Since the global demand for infrastructure development remains robust, the shadow banking …

Basel Iii F: Callable Commercial Paper, Christian M. Mcnamara, Rosalind Bennett, Andrew Metrick

Journal of Financial Crises

One of the Basel Committee on Banking Supervision’s responses to the global financial crisis of 2007-09 was to introduce the Liquidity Coverage Ratio (LCR), a short-term measure that evaluates whether a bank has enough liquidity to meet expected cash outflows during a 30-day stress scenario. One area in which this incentive has already resulted in changed practices is in the market for commercial paper. Banks often provide backup liquidity facilities to the issuers of commercial paper that the issuers can draw upon to repay a maturing issue of commercial paper if they are unable to sell a new issue to …

Basel Iii D: Swiss Finish To Basel Iii, Christian M. Mcnamara, Natalia Tente, Andrew Metrick

Journal of Financial Crises

After the Basel Committee on Banking Supervision (BCBS) introduced the Basel III framework in 2010, individual countries confronted the question of how best to implement the framework given their unique circumstances. Switzerland, with a banking industry that is both heavily concentrated and very large relative to the size of its overall economy, faced a special challenge. It ultimately adopted what is sometimes referred to as the “Swiss Finish” to Basel III—enhanced requirements applicable to Switzerland’s “too-big-to-fail” banks Credit Suisse and UBS that go beyond the base requirements established by the BCBS. Yet the prominent role played by relatively new contingent …

Basel Iii B: Basel Iii Overview, Christian M. Mcnamara, Michael Wedow, Andrew Metrick

Journal of Financial Crises

In the wake of the financial crisis of 2007-09, the Basel Committee on Banking Supervision (BCBS) faced the critical task of diagnosing what went wrong and then updating regulatory standards aimed at preventing it from occurring again. In seeking to strengthen the microprudential regulation associated with the earlier Basel Accords while also adding a macroprudential overlay, Basel III consists of proposals in three main areas intended to address 1) capital reform, 2) liquidity standards, and 3) systemic risk and interconnectedness. This case considers the causes of the 2007-09 financial crisis and what they suggest about weaknesses in the Basel regime …

Jpmorgan Chase London Whale Z: Background & Overview, Arwin G. Zeissler, Rosalind Bennett, Andrew Metrick

Journal of Financial Crises

In December 2011, the Chief Executive Officer and Chief Financial Officer of JPMorgan Chase (JPM) instructed the bank’s Chief Investment Office to reduce the size of its Synthetic Credit Portfolio (SCP) during 2012, so that JPM could decrease its Risk-Weighted Assets as the bank prepared to adopt the impending Basel III bank capital regulations. However, the SCP traders were also told to minimize the trading costs incurred to reduce Risk-Weighted Assets, while still maintaining the opportunity to profit from unexpected corporate bankruptcies. In an attempt to balance these competing objectives, head SCP derivatives trader Bruno Iksil suggested in January 2012 …

Nebraska Monthly Economic Indicators: January 22, 2020, Eric Thompson

Leading Economic Indicator Reports

The Leading Economic Indicator – Nebraska (LEI-N) 1 rose by 1.10% during December of 2019. The increase in the LEI-N, which is designed to predict economic activity six months into the future, confirms expectations for moderate economic growth in Nebraska through mid-2020. The leading indicator primarily rose due to strong business expectations. Respondents to the December Survey of Nebraska Business reported plans to increase sales and employment at their businesses over the next six months. There also was a rebound in building permits for single-family homes during the month, suggesting an increase in construction activity mid-year.

Shift-Share Analysis, Appalachian Counties, Randall Jackson, Péter Járosi

Shift Share Analyses

In County-level CIE Supply Chain Analysis, the second of five p a rts o f A n E c onomic A n alysis of the Appalachian Coal Industry Ecosystem posted to the Commission’s website in January of 2018, we developed a set of metrics that were used to provide insights on the past and future supply chain implications of long-term coal industry decline in Appalachia. These metrics were used to identify counties that have been heavily impacted by the decline of the coal industry, those that remain dependent on the coal industry ecosystem (CIE), and among the dependent counties, those …