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Purpose The purpose of this paper is to explore the effects of total assets, stock performances, CEOs’ tenures, ages, and board sizes on total CEO compensations of 249 publicly listed US companies over a nine-year period from 2004-2012.Design/methodology/approach Pedroni’s panel cointegration, generalized method of moments, and dynamic ordinary least squares methodologies are applied.Findings All variables are non-stationary in log-levels. The findings show significant positive effects of total assets and stock performances on total CEO compensations. The effects of CEO’s tenure and age as well as board size on total CEO compensation deem negative. However, short-run net interactive feedback effects are generally positive with some exceptions.Research limitations/implications The above variables matter in rewarding the CEOs. They should be carefully weighed in for proper formulation of CEO compensation policy.Originality/value This paper applies relatively new econometric tools for a large panel data set. This work considers some new variables for determining CEO compensation in USA. The findings are relatively new with empirical originality. [ABSTRACT FROM AUTHOR]

This paper studies the effects of the US annual budget deficit as the ratio of annual GDP and the labor productivity-compensation gap on ROE (rate of return on equity). Cointegration methodology is implemented using annual data from 1976 through 2011. The variables in levels are nonstationary depicting I(1) behavior. Both λtrace and λmax tests confirm a cointegrating relationship among variables. The estimates of the Vector Error-Correction Model (VECM) support discernible long-run convergence and causal flows with relatively weak short-run net positive interactive feedback effects. Dynamic OLS (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) estimates also support the above findings. [ABSTRACT FROM AUTHOR]

This paper studies the long-run and short-run dynamics between emigrants' nominal inbound remittances in U.S. dollar term to Mexico and the Peso-Dollar nominal exchange rates. Relatively high frequency monthly data from January 1987 through December 2008 are employed. Given the comparatively short sample period, the monthly data partially compensate for implementation of standard cointegration methodology. Empirically, both variables are found nonstationary in levels with I(1) behavior in terms of DF-GLS, Ng-Perron, and KPSS tests. The changes in exchange rate exert more pronounced influences on the changes of remittances in the long run as compared to the converse. Significant short-run interactive net positive feedback effects between the variables are also evidenced. On a net basis, Mexico should pursue an exchange rate policy that would promote remittance inflows from the USA for potential net economic gains without much apprehension of the so called Dutch Disease. [ABSTRACT FROM AUTHOR]

The primary objective of this study is to investigate the long-run causal effects of changes in US unemployment rate, 30-year fixed mortgage rate and the number of long-term unemployed on changes in US house price index. Unit root tests, Johansen-Juselius co-integration procedure and VECM are implemented using monthly data from January, 1992 through December, 2011. ADF, Ng-Perron and KPSS tests confirm non-stationarity of each tine series variable in level. All non-stationary variables become stationary on first-differencing depicting 1(1) behaviour. Consequently, λmax and λtrace tests are applied following the relationship among the variables. Both tests reveal long-run converging equilibrium relationship by clearly rejecting the null hypothesis of no co-integration. Finally, the vector error-correction model (VECM) is estimated for long-run causal flow to the change in house price index from changes in unemployment rate, 30-year fixed mortgage rate and duration of unemployment. There are evidences of long-run convergence toward equilibrium and unidirectional long-run causal flows to changes in US house pries index from the independent variables with short-run interactive feedback effects. The coefficient of the error-correction term (t-1) has the expected negative sign for convergence in the long run. Despite its statistical significance in terms of the associated t-value, its absolute numerical magnitude at 0.0034 indicates very low speed of adjustment toward the long-run equilibrium. The feedback effects suggest short-run causal reinforcement among the variables through mutual interactions. Both labour and house markets are interdependent. Soft labour market implies weak house market. As both strengthen, the overall economic recovery will accelerate. The U.S. house market is yet to show clear signs of discernible improvement. Until then, the overall economic recovery will remain anemic. [ABSTRACT FROM AUTHOR]

This paper studies the dynamics of the Taka-U.S.Dollar exchange rate for Bangladesh by augmenting the Quantity Theory of Money. The standard cointegration methodology (Engle and Granger, 1987) is employed in addition to the ARDL (Autoregressive Distributed Lag) procedure. The ADF and KPSS tests reveal data nonstationarity, but with different orders of integration. As a result, the ARDL procedure is invoked following (Peseran et al., 2001) to search for cointegrating relationship among the variables. On the evidence of cointegration, the vector error- correction model (VECM) is estimated. The negative sign of the coefficient of the error-correction term and its statistical significance in terms of the associated t -value confirm unidirectional causal flow from broad money supply and real GDP to Taka-U.S.Dollar exchange rate and long-run convergence with short-run interactive feedback effects. Furthermore, impulse response analyses are performed for additional visual insights. [ABSTRACT FROM AUTHOR]

This paper seeks to explore the possible long-run causal connection between the excess US bank reserves and the short-term interest rate differentials (differences between the federal funds rates and discount rates) within the well-known bivariate cointegration framework. It uses monthly data from February 1984 through March 1992. Each time series is nonstationary and reveals I (1) behaviour. There is evidence of a long-run equilibrium relation between the two variables. The estimates of the error-correction models reveal a unidirectional long-run causality flowing from the short-term interest rate differentials to the excess US bank reserves. [ABSTRACT FROM AUTHOR]

In this paper the authors employ the cointegration approach to explore empirically the existence of a possible long-run equilibrium relationship between the U.S. budget deficits and the current account deficits. This study uses annual nominal data in levels for the postwar period 1946-1988. Both the DW and the ADF tests confirm that the two deficits are not co integrated. It implies that the two deficits have no possibility of reverting to a long-run equilibrium relation. Introduction The relationship between U.S. budget deficit and current account deficit[1] is intricate and intriguing because of the involvement of a host of domestic and international macroeconomic variables in the complex transmission processes. Controversies surrounding the existence of the so-called twin relationship between these two deficits are abundant. Large government budget deficit affect the current account deficit in a number of ways through interest rate and exchange rate movements. However, the effects on the current account are conditional upon how the budget deficit is actually financed. Financing of the deficit by the government through borrowing from the financial markets is expected to exert an upward pressure on interest rates under the assumption of perfect capital mobility. This, in turn, will attract foreign capital. [ABSTRACT FROM AUTHOR]

Investigates the long-run and short-run dynamics between inflation and industrial capacity utilization in the United States. Use of cointegration and error-correction models; Analysis of monthly data between January 1984 to December 1994; Shortage of cointegration; Identification of Granger causalities.

This paper seeks to investigate US net potential benefits of merchandise imports from Mexico under tariff reductions. It applies a partial equilibrium framework which is static and highly aggregative in nature. The results suggest that the magnitudes of US net potential benefits of tariff cuts on merchandise imports from Mexico are conditional upon periods of duration of unemployment, discount rates, price elasticities of supply and demand, and existing tariff situations (high or low). Hence, the findings of the paper suggest that the US potential benefits and costs of merchandise imports from Mexico under tariff cuts should be weighed quite carefully. [ABSTRACT FROM AUTHOR]

This paper employs cointegration and error correction models to examine the dynamics of the yen-dollar real exchange rate and the US-Japan real trade balance. It uses quarterly data from 1973.I-1993.IV. The unit root tests reveal non-stationarity in both the variables. The ADF test fails to affirm any long-run association between the yen-dollar real exchange rate and the US-Japan real trade balance. Also, there is evidence of bidirectional short-run Granger causality between these two variables with mutual feedbacks. [ABSTRACT FROM AUTHOR]

The paper explores a possible long-run relationship between short-term and long-term interest rates (both nominal and real) within the standard and relatively new cointegration framework. It employs quarterly data from 1953 to 1992. The empirical results, in general, weigh heavily in support of the market segmentation hypothesis by rejecting the market expectations hypothesis of nominal and real interest rate term structures from a long-run perspective. However, the findings do not preclude the possibility of short-run dynamics between the short-term and long-term interest rates both in nominal and real terms. [ABSTRACT FROM AUTHOR]

Explores the long-run association among growths in United States housing starts, real consumer debt, real GDP and the long-term real interest rate. Application of Johansen nd Juselius (1990) vector cointegration procedure; Suggestions from the empirical results of the study.

Examines the issues of integration and causality in United States mortgage and T-bond markets, as it relates to economics. Methodology used in the examination; Results from the examination; Factors which attributed to the integration of financial markets; Provision of statistical information.

Investigates the association and Granger causality between short-term corporate bonds and stock markets in the United States. Application of cointegration and error-correction methodology; Reversible feedback between the two markets; Results of the unit root test concerning the rates of returns.

Examines a possible long-run dynamic relationship between the trade-weighted real exchange rate of the United States dollar and US real balance of trade by using the cointegration methodology. Sample period covers second quarter of 1973 to second quarter of 1992; Results of unit root test; Lack of systematic long-run association between two variables.