Search

This study answers the call of understanding trade credit determinants and consequences in different cultures and economic setups in order to be able to devise policies. Trade credit is affected by two types of factors including firm specific characteristics and macroeconomic conditions. This study tries to investigate the following firm specific variables such as firm size, liquidity, product quality, price discrimination, inventory and sales growth and found them significantly related to trade credit. Gross Domestic Product (GDP) is the variable which is used as macroeconomic variable and found positively related to trade credit. After collecting seven years data from 2005 to 2011 from non-financial firms of Pakistan, we have applied three models named, pooled ordinary least square method, fixed effects m ethod and random effects method for estimation to reach at the conclusion that which model is more appropriate for this study based on panel data. F-test and Hausman test are used to compare the estimated models and they give their justification in favor of fixed effects model.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jpolmod.2006.12.003 Byline: Yajie Wang (a), Xiaofeng Hui (a), Abdol S. Soofi (b) Keywords: Renminbi equilibrium exchange rate; Real effective exchange rate; Exchange rate policy; U.S.-China trade Abstract: It is claimed that China's currency market interventions have caused massive trade imbalances in favor of China. Without an accurate estimate of RMB's long-run equilibrium value, however, the validity of this claim can't be ascertained. This paper aims to place the debate about the degree of RMB's misalignment in a tractable framework by estimating the long run equilibrium real effective exchange rate of the currency. Based on estimation of the behavioral equilibrium exchange rate (BEER) and using Johansen co-integration technique, we conclude that RMB fluctuates around its long-run equilibrium rate within a narrow band. This implies that the currency has not been consistently undervalued. We identify the money supply, the foreign reserve holdings of China's central bank, and a measure of China's productivity as important explanatory variables of renminbi long-run equilibrium value. A discussion of the implications of the empirical findings of this study indicates that China's exchange rate policy may have played an insignificant role in its trade surpluses. Author Affiliation: (a) School of Management, Harbin Institute of Technology, Harbin 150001, PR China (b) Department of Economics, University of Wisconsin, Platteville, USA Article History: Received 1 March 2006; Revised 21 August 2006; Accepted 1 December 2006

After the catastrophic outcome of the 2008 financial crisis Basel III intrudes new instruments to increase the banks sector stability. Banking sectors depend on a sophisticated ensemble of information systems for bank risk management. Therefore, this study investigates the impact of bank capital, information systems, charter value, control systems and market discipline regarding bank risk. The presented focus is on understanding to what extent do information systems increase the stability of banking sectors by using panel data from Palestine over the period from 1996-2014. In addition, Partial Least Square (PLS) is used to analysis the sample which includes 244 questionnaires from listed banks. The findings show that information systems are the most important predictor of bank risk, which is partly supported by Basel III. Therefore, this study is important not just for Palestine but also to those that have concern of bank risk trying to find a solution to future bank default. [ABSTRACT FROM AUTHOR]

This study answers the call of understanding trade credit determinants and consequences in different cultures and economic setups in order to be able to devise policies. Trade credit is the separation between the delivery of goods and their payments. It is affected by two types of factors including firm specific characteristics and macroeconomic conditions. This study investigates the following firm specific variables such as firm size, liquidity, product quality, price discrimination and macroeconomic conditions viz GDP. Data have been collected for trade credit supply determinants of non-financial firms listed in Karachi Stock Exchange, Pakistan. The number counts for 156 firms in 13 sectors with 11years data from 2001-2011. The results show that all the variables are significantly related to trade credit supply as hypothesized. [ABSTRACT FROM AUTHOR]