International Research Journal of Finance and Economics
 Issue 177
 January, 2020
 
The Strengthening of Industrial Competitiveness through Industrial Fundamental Factors and Information Technology
8-21
Sumarsih, Djabir Hamzah, Haris Maupa and Rahman Kadir

Abstract:
This research is descriptive and quantitative that aims to determine the effect of the direct relationship of antecedent variables to the consequence variable and this study tests the hypothesis and provides an objective explanation, justification, and evaluation of a fact or event that is happening and examines the relationship between different variables to seek influence and explain causality relationships between factor condition variables, industrial value chains, firm strategy, structure, and rivalry, business opportunities, demand conditions, and information technology affect industry competitiveness. By using Path Analysis, where Ghozali and Fuad (2005) recommend the estimation of the model equation through the Maximum Likelihood method to be effective, the number of samples will be 200. The results of the study show that almost all latent variables such as factor conditions, industrial value chains, firm strategies, structures, and rivalry, business opportunities, and information technology affect industry competitiveness, except demand conditions.< /br>
Keywords: Factor Condition, Industrial Value Chain, Firm Strategy, Structure, and Rivalry, Business Opportunities, Demand Conditions, Teknologi Informasi, Daya Saing
 
 
Determinants of Chief Executive Officer Stock Options Compensation
22-38
Hwei Cheng Wang, CPA, Yung-I Lou, CPA, Nicole A. Buzzetto-Hollywood and Ladda Vatjanasaregagul

Abstract:
This study examines the determinants of CEO Stock Options compensation. Stock options are defined as the aggregate value of all options granted to the executive during the year as valued by the company. The sample was carried out on 2,448 CEOís from 1,622 firms spanning a range from 1997-2002. The determinants of CEO Stock Options compensation are international diversification, industry diversification, firm performance, investment opportunities, firm size, and stock ownership.
This study employs the concept of corporate diversification as identified by Duru and Reeb (2002) and Kim, et al. (2001) that divides corporate diversification into international diversification and industrial diversification.
This study is the first study to examine whether industrial diversification is negatively associated with stock options compensation. Our findings show that there is a negative significant relationship between industrial diversification and stock options compensation.
The results also show that the higher the degree of international diversification, investment opportunities, and firm size, the more CEOs receive in stock options. In contrast, the higher the degree of industrial diversification, the lesser CEOs receive in stock options. CEOs that have greater outstanding stock ownership make less use of CEOs stock options.
Keywords: CEO Compensation; Corporate Diversification; International Diversification; Industrial Diversification; Firm Performance; Investment Opportunity; Stock Ownership
 
 
Impact of Cash Liquidity on Profitability of Middle East Investment Bank and Commercial Bank of Iraq (2003-2017)
39-60
Abbas Khudair Al-Janabi and Nadia Ahmed Al - Sheikhly (MA)

 
 
Transaction Information Transparency and Market Quality: The Effect of Pre-market Information Disclosure
61-72
Po-Ching Chou, Tzu-Pu Chang and You-Lin Cyue

Abstract:
In order to improve pre-market information disclosure transparency, Taiwan Futures Exchange and Taiwan Stock Exchange have implemented ďinformation disclosure prior to openingĒ policies that disclose simulated transaction price, trading volume, five best bid/ask prices, and bid/ask volumes in 2014 and 2015, respectively. This paper aims to examine whether the improvement of pre-market information disclosure transparency can enhance market quality measures, such as trading volume, liquidity and volatility. We collect intraday data within the opening five minutes or one minute by November 2013 to December 2014 and December 2014 to December 2015. The empirical results show that three market quality measures are significantly impacted after the improvement of pre-market information disclosure transparency.
Keywords: Futures Markets, Market Transparency, Pre-market Transparency, Volume, Liquidity, Volatility
 
 
Competition and Performance in the Tunisian Banking System as Part of the Foreign Bank Entry Process
73-84
Naziha Kasraoui

Abstract:
This paper gives main theories related to competition and performance and highlights the mechanism of entry of foreign banks and their ways of rooting. Two basic theories are presented: competition-efficiency and competition-inefficiency accompanied by underlying theories showing the entry processes of foreign banks and their ability to realize performance. Empirically, we used a sample of Tunisian banks comprising 11 banks during the period from 2004 to 2014. The econometric results show that thereís an important impact of the presence of foreign banks on the performance of banks in particular on competition through concentration. Namely, foreign banks can concentrate by specialization, diversification, in the banking market, in parallel with domestic banks. In addition, the entry of foreign banks and their capacities foster competition to increase banking performance. Keywords: Conventional banks, Islamic banks, Solvency, Comparative study, Financial stable period, Heterogeneous contexts
Keywords: Foreign bank, domestic bank, performance, efficiency, concentration, Tunisia
 
 
A Study on the Bursting of the Stock Market Bubble and the Mean Reversion: Evidence from the Southeast Asia
85-96
Chung-Hsiang Tung and Szu-Lang Liao

Abstract:
This paper uses technical indicators to capture the stock market bubbles in seven regions of Southeast Asia, and observes the time required for the bursting of the captured bubble and the mean reversion after the bubble burst. It can be seen from the empirical results that the bubbles captured by the technical indicators will generally rupture within 10 weeks, and will return to the 13-week moving average after the bursting. Hong Kong, South Korea, Japan and Singapore have a shorter time to return to the 13-week moving average, while the times of the mean reversion in Malaysia, Thailand and China are longer and different. Therefore, the phenomenon of the mean reversion in the mature markets are more obvious, and the emerging stock markets are unstable, so the mean reversion time is difficult to determine.
Keywords: Technical Indicators; the Mean Reversion; Stock Market Bubbles
JEL Classification: G15
 
 
IS-LM-BP Model for Lebanon: A Simple Empirical Analysis
97-110
Samih Antoine Azar, Ali Bolbol and Alexandre Mouradian

Abstract:
The paper develops a Mundell-Fleming IS-LM-BP model that is specific for the Lebanese economy. It is the first short-run macro model in the post-civil-war period that we know of that is run on a monthly basis, over the period from 2008 to 2018. The model is estimated using the Robust Least Squares methodology, and arrives at fairly interesting conclusions. On the fiscal side, government spending and taxation yield positive output results and are aligned with the model. So are changes in the pegged exchange rate that contribute positively to output but marginally to the balance of payments. On the other hand, monetary policy has interesting implications as far as its compressed effects on output and the balance of payments whereas remittances seem to have hardly any impact on the same. Also crucial are governance and structural reforms that are important in them selves and in making macro policies more effective.
JEL Classifications:C3; F10; O53