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Abstract - Minimum Wage and Unemployment: An Empirical Study on OECD Countries
Minimum Wage and Unemployment: An Empirical Study on OECD Countries - Pages 1-9Chong-Uk Kim and Gieyoung Lim DOI: https://doi.org/10.6000/1929-7092.2018.07.01 Published: 19 February 2018 |
Abstract: With ongoing increasing minimum wage and political debates underway, minimum wage and its impacts on the labor market are one of the most important items on policymakers’ agendas worldwide. In this paper, we attempt to explain how labor demand and supply respond to minimum wage increases. In our model, firms can hire either skilled or unskilled workers to maximize their profits. With data from 25 OECD countries over 15 years from 2000 to 2014, we find that a higher minimum wage decreases labor demand but does not affect labor supply. Our empirical results also suggest that relatively modest increases in minimum wages have limited impacts on employment. On average, 10 percent increase in the minimum wage decreases employment by 0.7 percent, thereby increasing unemployment rate by 0.64 percent. Keywords: Minimum Wage, Unemployment, Skilled and Unskilled Labor. |
Abstract - The Impact of Falling Crude Oil Price on Financial Markets of Advanced East Asian Countries
The Impact of Falling Crude Oil Price on Financial Markets of Advanced East Asian Countries - Pages 10-20Mirzosaid Sultonov DOI: https://doi.org/10.6000/1929-7092.2018.07.02 Published: 27 February 2018 |
Abstract: We analysed the response of the financial markets of advanced East Asian countries to the significant decline in crude oil price which occurred in 2014. We used daily logarithmic returns of the representative exchange rates of national currencies and stock prices from 1 January, 2013 to 31 December, 2015. The empirical findings showed a significant change in both the dynamic correlation of exchange rates and stock prices and the causality relationship between the commodity, foreign exchange and stock markets during the period of declining crude oil price and instability. This paper highlights the response of the financial markets of advanced East Asian economies to a sharp decline in and instability of crude oil price, thereby contributing to the empirical literature and providing guidance for investment portfolio management. Keywords: Declining oil price, financial markets, East Asia, advanced economies. |
Abstract - Economic Integration and Stock Market Comovement: An Empirical Study Pairing Pakistan’s Stock Exchange with 21 other Markets
Economic Integration and Stock Market Comovement: An Empirical Study Pairing Pakistan’s Stock Exchange with 21 other Markets - Pages 28-36Raheel Gohar, Syed Zulfiqar Ali Shah and Habib Ahmad DOI: https://doi.org/10.6000/1929-7092.2018.07.04 Published: 07 March 2018 |
Abstract: Using daily stock returns from 2004 to 2014 for 21 countries paired with Pakistan, and using the Geweke methodology, the paper investigates the degree to which these stock markets are integrated with the Pakistani stock market. The paper also explores the factors that have an effect on the level of economic integration by applying fixed effect model. The result demonstrates statistically significant and high percentage of contemporaneous association between the 21 economies of the world and Pakistan. Greater comovement was observed between the equity markets during the period when Pakistani capital market and economy experience performance but less comovement was noted when Pakistan Stock Markets were under crises. Keywords: Economic integration, Geweke methodology, Pakistani Stock Exchange, comovement. |
Abstract - The Effect of Tax System on Shareholder Decisions when Choosing a Accounting Principles
The Effect of Tax System on Shareholder Decisions when Choosing a Accounting Principles - Pages 21-27Hisham Noori Hussain AL-Hashimy DOI: https://doi.org/10.6000/1929-7092.2018.07.03 Published: 27 February 2018 |
Abstract: This paper aims to identify the factors that affect the decisions of the tax system to choose the accounting principles in Iraqi companies. The focus is on managing perceptions of the impact of the tax system on cost and the views of stakeholders in accounting principles. In a Real data,wepick Final budgets end of the year data of the 2 most important companies in Iraq, and the statement of their views on the impact of the figures reported by stakeholders in the companies and how to track companies specific targets linked to profit. According to the participants in the real data accounting figures and the impact of corporate perceptions of stakeholders and selection of accounting principles, tracking corporate goals for profit is not consistent with the objective of minimizing the tax system for companies. |
Abstract - Rating: New Approach
Rating: New Approach - Pages 37-62P.N. Brusov, T.V. Filatova, N.P. Orekhova and V.L. Kulik DOI: https://doi.org/10.6000/1929-7092.2018.07.05 Published: 09 March 2018 |
Abstract: The paper suggests a new approach to rating methodology, key factors of which are: 1) The adequate use of discounting of financial flows virtually not used in existing rating methodologies, 2) The incorporation of rating parameters (financial "ratios") into the modern theory of capital structure (Brusov–Filatova–Orekhova (BFO) theory) (Brusov P, Filatova T, Orehova N, Eskindarov M, 2015) (for beginning into its perpetuity limit). This on the one hand allows use the powerful tools of this theory in the rating, and on the other hand it ensures the correct discount rates when discounting of financial flows. We discuss also the interplay between rating ratios and leverage level which can be quite important in rating. All these create a new base for rating methodologies. Keywords: Rating, rating methodology, discounting of financial flows, Brusov–Filatova–Orekhova theory, coverage ratios, leverage ratios. |