International Research Journal of Finance and Economics
 Issue 175
 September, 2019
Impact of Entrepreneurship Variables on GDP per Capita: Evidence from Thirteen Countries
Mahmoud Mourad and Rafah EL Akoum

This research aims to investigate the impact of entrepreneurship attitude and perceptions (Perceived opportunities, perceived capabilities, fear of failure, entrepreneurship as a desirable career choice, status and respect) on Gross Domestic Product (GDP) per Capita using a panel of 13 countries during the period of years 2001–2017. This study benefits from an interdisciplinary research mixing two approaches "Management" and "Econometrics".< /br> The most convenient model was the "the random effects model" after testing two other models, the pooled regression model and the fixed effects model. < /br> Different impacts were found based on the data approach that we used. Using the primary data, the GDP per capita is influenced positively by "fear of failure", "entrepreneurship intention", "High status to successful entrepreneurs" and "Perceived capabilities". Using the log-transformed data, the GDP per capita is influenced positively by "fear of failure", "perceived opportunities" and negatively by "entrepreneurship as a good career choice". < /br>
Keywords: Entrepreneurship variables, GDP Per Capita, panel data, Random effects model
Governance Characteristics and Corporate Social Responsability Disclosure Policy
Yosr Sbais and Lamia Kalai

This paper aims to determine the CSR disclosure policy based on the composition of the board of directors and the profile of Tunisian business managers. Our study is based on the annual reports of 74 companies listed on the Tunisian Stock Exchange from 2012 to 2016. The estimation of the relationship between CSR disclosure and governance characteristics is established using the squares method OLS on Panel data. The CSR disclosure policy is evaluated in terms of the amount and the quality of information divulged. The results show a positive relationship between CSR disclosure and the proportion of family administrators, independent directors and government administrators who positively impact organizational practices on CSR issues. The duality and the ownership of the manager have negative relations with the CSR disclosure policy and indicate that the problems of agency and conflicts of interest with the minority shareholders negatively influence the CSR policy in terms of quantity and quality.
Keywords: Corporate governance, CSR disclosure, governance characteristics
Comparative Study of Ambiguity Resolution between the Efficiency of Conventional and Islamic Banks in a Stable Financial Context
Achraf Haddad, Anis EL Ammari and Abdelfettah Bouri

Based on the weak results of previous researches on the efficiency’s topic of Islamic and classical banks, we noticed that they were paradoxical results which are sometimes complementary and sometimes contradictory. Several studies have confirmed the effectiveness and resilience of Islamic banks in the face of financial shocks and crises during periods of disruption and financial imbalances, while others have supported the priority of conventional banks. Each stream of research has defended its contextual visions by the necessary specific arguments. But during the economic stable periods the question does not have the answer so far. In this article, two samples were taken from two reference populations of all existing classical and Islamic banks in the selected countries. The choice of banks is limited to countries whose banking systems incorporate both Islamic and conventional banks regardless of the proportion of each system in the country’s banking market. Subsequently, the list for each type of banks was reduced on the basis of qualitative and quantitative filtering criteria, so that each conventional bank in each country has its closest Islamic equivalence in terms of capital and size taken from the same country. Consequently, the sample size was reduced to 63 banks each over the period (2010-2018). The banks selected form the two samples are all large and listed in different stock exchanges around the world. The results of our research showed that theoretically Islamic finance is enjoying a growing reputation, as it is considered potentially an ethical finance. However, empirically, Islamic banks are less efficient than their conventional counterparts during a financial stable period.
Keywords: Conventional banks, Islamic banks, Efficiency, Comparative study, Financial stable period
JEL Classification: F33, G20, G21, G24, G30
Cognitive Modeling for the Intellectual System of Supporting Decision Making on Regulating Reproduction and Accumulation of Financial Capital
Galina Gorelova and Nemer Badwan

The article discusses the prospects of using cognitive modeling of complex systems in order to form the knowledge base of the intelligent decision support system to regulate the reproduction of the accumulation of financial capital. The study of the problems of capital movement, cross-sectoral processes of financial capital overflow is a serious and urgent task. A brief description of models, methods, software for cognitive modeling, which can be considered as elements of the artificial intelligence system, is given. Cognitive modeling involves the development of a cognitive model and the analysis of its various properties, including stability, complexity, connectivity, direct and feedback cycles. The possibilities of using the developed cognitive tools are illustrated by the example of the study of regulation and reproduction of financial capital in the country. A cognitive map (sign-oriented graph) is developed, which displays the causal chains of relations between the basic concepts of a complex system of reproduction and accumulation of capital. The analysis of the structural properties of the cognitive map and the properties of its stability. Scenario modeling of the situation development in the system is carried out, which allows foreseeing the possible future of the system. The scheme of subsystems of the intellectual system taking into account cognitive modeling is offered.
Keywords: Reproduction and accumulation of financial capital, cognitive modeling, intelligent systems, supporting decision
JEL Classification: E44, F21, G14, G17
Restructuring, and Rescheduling of the Debt: A Semantic Confusion
Samih Antoine Azar

The paper starts by dissipating a semantic confusion about rescheduling and restructuring of a public debt. These have nothing to do with default. We define rescheduling as a swap of debt towards long term, and restructuring as a change in the denomination of the debt. Once this is elucidated the paper conducts an econometric exercise to obtain empirical evidence for the swaps involved. The paper finds that that a swap of short term debt for long term debt, or rescheduling, was continuously implemented by the central bank of Lebanon. Lengthening the maturity of the debt seems to be a covert policy of debt management. The paper finds also evidence that a swap of local debt for Euro debt, or changing the currency of issuance, or restructuring, seems to be an additional covert policy of the central bank, and was effectuated continuously from the early 1990s and on. Despite these covert policies, the central bank regularly published statistical data on monetary conditions, and made no effort to hide the information from outsiders. It is therefore assumed that the rating agencies, sophisticated as they are, were aware about these debt transactions, especially since these transactions were carried out at market prices, with no intention of imposing them to bondholders. These covert policies are sound, and should be regarded as such, without regard to their interest cost.
Keywords: Public debt management, Rescheduling and restructuring, Econometric evidence, Covert policies, Short to long, Lebanese pounds to dollars, Lebanon
Second-Hand Clothing in the Developing World: A Saving Grace or Lasting Burden?
Carroll H. Griffin

With the continued evolution of the textile and garment industry over the 20th and 21st centuries, along with consistently decreasing prices, more developed country consumers than ever before purchase clothing on a consistent basis, many of whom spend a significant portion of their monthly disposable income on such items as sweaters, dresses, shirts, tennis shoes, etc. These items are cheaper than ever before and have become part of everyday life in the 21st century in developed Western countries. However, this glut of garments in the average consumer’s daily life presents acute challenges for how to dispose of these items when not wanted any longer. This paper attempts to describe some of the advantages and disadvantages of prodigious amounts of Second-Hand Clothing (SHC) being exported to the developing world on a consistent basis. Statistical analysis is offered to determine the impact of SHC. A Stakeholder Model is also put forth as well as practical policy recommendations.
Keywords: Environmental economics; economic impacts of globalization; welfare, well-being, and poverty; developing country; economic development
JEL Classification: F01; F02; F18
Bubble Prediction and Comparative Analysis of Emerging and Mature Markets
Chung-Hsiang Tung and Szu-Lang Liao

Looking back at the history of financial bubbles, every time the bubble burst has caused financial turmoil and severe economic recession. This paper attempts to use the indicators of the technical analysis as the warning condition to predict stock market bubbles. It is expected to find early in the financial bubble burst and reduce the awful impact of the financial storm. The early warning mechanism of technical indicators are applied to the stock market data(1995-2018) of the United States, Japan, Germany, China, Brazil and South Korea to predict the bubble, and then comparing the bubble warning conditions of emerging markets and mature markets. The standard bubble warning conditions are as follows: K value 90, RSI value 90, and Bias 10%. From the empirical results, it is found that the mature market has less volatility, and lowering the warning baseline can improve the accuracy of bubble prediction, and correspondingly, improve the emerging Market warning benchmarks can increase the accuracy of their bubble predictions. In addition, the bubble points captured by the warning conditions of technical indicators, the mature markets generally takes about 6 months to burst, and the emerging markets will only burst within 3 months, showing that the mature market has strong anti-risk ability.
Keywords: Stock Market Bubbles; Technical Indicators; Bias
JEL Classification: G15