scholarly journals Corporate Investments in Asian Emerging Markets: Financial Conditions, Financial Development, and Financial Constraints

2013 ◽  
Author(s):  
Jianxin Wang ◽  
Maria Socorro Gochoco-Bautista ◽  
Noli R. Sotocinal
Keyword(s):  
Emerging Markets ◽  
Financial Development ◽  
Financial Constraints ◽  
Corporate Investments ◽  
Financial Conditions ◽  
Asian Emerging Markets

scholarly journals Inflation Thresholds-Financial Development Nexus in South-Eastern Asian Emerging Markets

2017 ◽  
Vol 9 (4) ◽  
pp. 14
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Emerging Markets ◽  
Financial Development ◽  
Banking Sector ◽  
Negative Impact ◽  
Empirical Literature ◽  
Macroeconomic Policies ◽  
Threshold Levels ◽  
South Eastern ◽  
Definition Of ◽  
Asian Emerging Markets

This paper investigated the maximum inflation threshold levels beyond which financial development declines in the South-Eastern Asian emerging markets using static panel threshold regression framework proposed by Bick (2010) with data ranging from 1994 to 2014. The negative impact of inflation on financial development is a settled matter in both theoretical and empirical literature. However, this study was prompted by recent literature (Boyd et al., 2001; Abbey, 2012; Kim and Lin, 2010) which argued that the relationship between inflation and financial development is not linear and is characterised by inflation thresholds. Moreover, no previous study that the author is aware of used the approach suggested by Bick (2010) to determine inflation threshold levels and financial development. Among previous inflation-finance studies, the current study is the first one according to the author’s best knowledge to use banking sector, stock market and bond sector development variables as previous studies were narrow focused in their definition of financial development. The study observed that lower levels of inflation is good for financial development whilst higher levels of inflation slows down the rate at which banking sector, stock and bond markets develop. These results agree with the theory underpinning inflation-financial development nexus. South-Eastern Asian emerging economies are therefore urged to implement macroeconomic policies that ensure inflation rates are kept at lower levels that do not stifle financial development.

scholarly journals Financial Development, Economic Growth, and Environmental Degradation Nexus in ASIAN Emerging Markets

2020 ◽  
Vol 18 (2) ◽  
pp. 177-189
Author(s):  
Intan Dana Lestari ◽  
Nury Effendi ◽  
Anhar Fauzan Priyono
Keyword(s):  
Economic Growth ◽  
Emerging Markets ◽  
Financial Development ◽  
Environmental Degradation ◽  
Capital Market ◽  
Banking Sector ◽  
Sector Model ◽  
Market Sector ◽  
Asian Emerging Markets

Environmental degradation is one of the major problems in the world recently and one of the United Nations’ (UN) sustainable development goals (SDGs). Emerging markets countries that have become major players in the global economy and the main source of world economic growth have great potential to contribute the environmental degradation due to increased economic activities. This paper investigates the impact of financial development and economic growth on environmental degradation in Asian emerging markets. A panel environmental degradation model using financial development from banking sector and capital market sector, economic growth, Foreign Direct Investment (FDI), and urbanization variables that are major determinants of CO2 emission as a proxy of environmental degradation. The periods considered were 1980 – 2018 for banking model, and 1996 – 2018 for financial sector model (banking sector and capital market sector). A panel data approach applied such as cross-section dependence, panel unit root, panel cointegration, Fully Modified OLS (FMOLS) and Dynamic Ordinary Least Square (DOLS). The empirical finding revealed that in Asian emerging markets there is positively long-term relationship between financial development from banking model with environmental degradation. Nevertheless, we do not find any long-term relationship between financial development from financial sector model with environmental degradation. Moreover, the quadratic negative signed for economic growth showed the existence of Environmental Kuznets Curve (EKC).

scholarly journals Inflation Thresholds-Financial Development Nexus in South-Eastern Asian Emerging Markets

2017 ◽  
Vol 9 (4(J)) ◽  
pp. 14-24
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Emerging Markets ◽  
Financial Development ◽  
Banking Sector ◽  
Negative Impact ◽  
Empirical Literature ◽  
Macroeconomic Policies ◽  
Threshold Levels ◽  
South Eastern ◽  
Definition Of ◽  
Asian Emerging Markets

This paper investigated the maximum inflation threshold levels beyond which financial development declines in the South-Eastern Asian emerging markets using static panel threshold regression framework proposed by Bick (2010) with data ranging from 1994 to 2014. The negative impact of inflation on financial development is a settled matter in both theoretical and empirical literature. However, this study was prompted by recent literature (Boyd et al., 2001; Abbey, 2012; Kim and Lin, 2010) which argued that the relationship between inflation and financial development is not linear and is characterised by inflation thresholds. Moreover, no previous study that the author is aware of used the approach suggested by Bick (2010) to determine inflation threshold levels and financial development. Among previous inflation-finance studies, the current study is the first one according to the author’s best knowledge to use banking sector, stock market and bond sector development variables as previous studies were narrow focused in their definition of financial development. The study observed that lower levels of inflation is good for financial development whilst higher levels of inflation slows down the rate at which banking sector, stock and bond markets develop. These results agree with the theory underpinning inflation-financial development nexus. South-Eastern Asian emerging economies are therefore urged to implement macroeconomic policies that ensure inflation rates are kept at lower levels that do not stifle financial development.

scholarly journals Liquidity Synchronization, Its Determinants and Outcomes under Economic Growth Volatility: Evidence from Emerging Asian Economies

Risks ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 43
Author(s):  
Syeda Hina Zaidi ◽  
Ramona Rupeika-Apoga
Keyword(s):  
Economic Growth ◽  
Emerging Markets ◽  
Interest Rates ◽  
Emerging Market ◽  
The Philippines ◽  
Country Level ◽  
Market Index ◽  
High Inflation ◽  
Asian Emerging Markets ◽  
Growth Volatility

This study investigates the country-level determinants of liquidity synchronization and degrees of liquidity synchronization during economic growth volatility. As a non-diversifiable risk factor, liquidity co-movement shock spreads market-wide and thus disrupts the overall functioning of the financial market. Firms in Asian markets operate in legal and regulatory environments distinct from those of firms analyzed in the previous literature. Comprehensive analyses of liquidity synchronicity in emerging markets are limited. A major knowledge gap pertaining to Asian emerging markets serves as the primary motivation for this study. Seven Asian emerging economies are selected from the MSCI emerging market index: Bangladesh, China, India, Indonesia, Malaysia, Pakistan and the Philippines for analysis from 2010 to 2019. The empirical findings show high levels of liquidity synchronicity in weaker economic and financial environments with low GDP growth, high inflation and interest rates and underdeveloped financial systems taking the form of low levels of private credit. Liquidity synchronicity is also affected by poor investor protection, political instability, weak rule of law and government ineffectiveness. Moreover, levels of liquidity synchronicity are higher in a period of economic growth volatility.

Conditional beta: Evidence from Asian emerging markets

2011 ◽  
Vol 22 (2) ◽  
pp. 130-153 ◽  
Author(s):  
Robert B. Durand ◽  
Yihui Lan ◽  
Andrew Ng
Keyword(s):  
Emerging Markets ◽  
Conditional Beta ◽  
Asian Emerging Markets

scholarly journals An Ex-Post Investigation Of Interest Rate Parity In Asian Emerging Markets

2011 ◽  
Vol 6 (2) ◽  
Author(s):  
Bahram Adrangi ◽  
Kambiz Raffiee ◽  
Todd M. Shank
Keyword(s):  
Interest Rate ◽  
Emerging Markets ◽  
Statistical Tests ◽  
Supply And Demand ◽  
The Philippines ◽  
Uncovered Interest Parity ◽  
Interest Rate Parity ◽  
Ex Post ◽  
Interest Parity ◽  
Asian Emerging Markets

This paper investigates the uncovered interest parity theory for the three emerging markets of Korea, the Philippines, and Thailand. The study provides evidence on the efficiency of the currency markets of these economies. In this paper we test for the uncovered interest parity because futures markets for currencies of most emerging markets are not well developed. Furthermore, short- term exchange rate supply and demand are often dominated by the uncovered international investments. Several statistical tests are applied in an attempt to detect evidence of uncovered interest parity. We find there is evidence that the currencies of higher interest rate emerging economies tend to depreciate in the future spot market. However, our test results indicate that this relationship does not support the uncovered interest parity strictly. Arbitrage opportunities remain for a longer periods than predicted by the uncovered interest parity. Furthermore, these abnormal gains are not random and could be predicted by a well designed econometric model. These findings are consistent with empirical findings surrounding uncovered interest parity for mature markets of the world.

scholarly journals Access to Finance, Financial Development and Firm Performance – Evidence from Pakistan

2020 ◽  
pp. 49-68
Author(s):  
Waqas Ahmad ◽  
Zaheer Abbas ◽  
Zulfiqar Ali Shah
Keyword(s):  
Firm Performance ◽  
Financial Development ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Labour Productivity ◽  
Fixed Effect Model ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact

Purpose- The aim of the study is to investigate the impact of financial constraints on firm performance. The role of financial development in reducing financial constraints is also investigated. Design/methodology/approach- Data from two waves of World Bank Enterprise Surveys from 2007 to 2013 was used to construct the required variables. A balanced sample of 427 firms was selected and a fixed-effect model was used for empirical estimations. Findings- The findings indicate the significance of access to finance in terms of explaining firm performance. Improvement in access to finance led to subsequent improvement in firm performance as measured by labour productivity. The role of financial development in reducing credit constraints is not as expected. The concentration of lending to the private sector in the hands of large corporations at the expense of small and medium enterprises could be the reason for such a result. Originality/value – Most of the work in this area is focused on large listed firms. The present study focused primarily on small and medium-sized enterprises in Pakistan. Multiple measures of financial constraints and firm performance were used for robustness. The investigation also covers the role of financial development and its microeconomic implications at the level of an enterprise.

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