: (The Role of Foreign Currency Deposits, and the Impacts of External Shocks on CDS Spreads for EMEs)

2014 ◽  
Author(s):  
Hosung Jung ◽  
Joon Myung Woo
Keyword(s):  
Foreign Currency ◽  
External Shocks

scholarly journals Is Inflation Default? The Role of Information in Debt Crises

2019 ◽  
Vol 109 (10) ◽  
pp. 3556-3584
Author(s):  
Marco Bassetto ◽  
Carlo Galli
Keyword(s):  
Foreign Currency ◽  
Secondary Market ◽  
Bad News ◽  
Differential Information ◽  
Inflation Risk ◽  
Information Sensitivity ◽  
The 2008 Financial Crisis ◽  
Informed Group ◽  
Role Of Information

We study the information sensitivity of government debt denominated in domestic versus foreign currency: the former is subject to inflation risk and the latter to default. Default only affects sophisticated bond traders, whereas inflation concerns a larger and less informed group. Within a two-period Bayesian trading game, differential information manifests itself in the secondary market, and we display conditions under which debt prices are more resilient to bad news even in the primary market, where only sophisticated players operate. Our results can explain debt prices across countries following the 2008 financial crisis, and also provide a theory of “original sin.” (JEL D84, F34, H63)

Dual foreign currency markets and the role of expectations: Evidence from the Pacific Basin countries

2007 ◽  
Vol 21 (2) ◽  
pp. 238-259 ◽  
Author(s):  
Panayiotis F. Diamandis ◽  
Georgios P. Kouretas ◽  
Leonidas Zarangas
Keyword(s):  
Foreign Currency ◽  
Pacific Basin ◽  
Currency Markets ◽  
The Pacific

Investor perceptions of the benefits of political connections

2014 ◽  
Vol 10 (3) ◽  
pp. 312-331 ◽  
Author(s):  
Fan Yang ◽  
Craig Wilson ◽  
Zhenyu Wu
Keyword(s):  
Foreign Currency ◽  
State Ownership ◽  
Policy Implications ◽  
Political Connections ◽  
Short Sales ◽  
Government Ownership ◽  
Chinese Firms ◽  
Content Type ◽  
A Share

Purpose – The purpose of this paper is to investigate how foreign and domestic investors differ in their beliefs about the relative merits of a firm's political connections. Design/methodology/approach – These differences are employed to explain cross-sectional variation in the previously documented premium in A-share prices relative to otherwise equivalent foreign currency denominated B-shares for Chinese firms. Findings – Chinese domestic individual investors were excluded from owning B-shares of Chinese firms prior to February 20, 2001. The authors find that firms with more political connections have higher premiums and a smaller reduction in premiums associated with this event. Research limitations/implications – This is consistent with domestic block holders deriving additional benefits from politically connected firms. Practical implications – The findings also have important policy implications by showing that government can have a strong effect on the economy even without applying macro-policy tools. Social implications – Government ownership in listed companies can result in discrepancies among classes of investors with respect to their valuations. Furthermore, the prohibition of short sales prevents arbitrage from correcting this bias, and eventually the role of the market in allocating resources efficiently is undermined. Originality/value – The authors investigate the role of political connections as implied by the proportion of state ownership in explaining the A-share premium. Unlike previous studies that associate state ownership with political risk, the paper relates state ownership to political connections that are particularly beneficial to domestic large block shareholders. This interpretation is consistent with the findings and with previous literature on state ownership and political connections of Chinese firms.

scholarly journals PENGEMBANGAN SISTEM INFORMASI JASA PENUKARAN VALAS

2020 ◽  
Vol 5 (1) ◽  
pp. 7-12
Author(s):  
Anzaludin Samsinga Perbangsa ◽  
Aloysius Reyner ◽  
Joshua Christian Nugroho ◽  
Junne J
Keyword(s):  
Exchange Rates ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Foreign Exchange Rates ◽  
Literature Study ◽  
Web Based ◽  
Analysis And Design ◽  
Biometric Security ◽  
To Come

The role of money changers is very important in meeting the needs of foreign exchange for the community. This role can also be fulfilled by banks and other financial institutions. People who want to order foreign currencies at this time still have to go through traditional procedures, where the buyer is required to come directly to the place of foreign exchange. This study intends to build a system design that can make currency orders and provide information on foreign exchange rates contained in each money changer through a web-based application. This research uses the Object Oriented Analysis and Design (OOAD) method, literature study, and data collection methods using a questionnaire. Based on the problems outlined and the results of the study, this system can be a source of information on foreign exchange rates and also an alternative order for foreign exchange. Foreign exchange orders can be made online through this information system. This system will continue to be developed with various features such as payment methods using biometric security methods with the support of Artificial Intelligence (AI) technology. So users can search for foreign currency values and order them easily through online media.

scholarly journals THE ROLE OF CURRENCY HEDGING ON FIRM PERFORMANCE: A PANEL DATA EVIDENCE IN INDONESIA

2015 ◽  
Vol 17 (3) ◽  
pp. 279-298
Author(s):  
Fiskara Indawan ◽  
Sri Fitriani ◽  
Indriani Karlina ◽  
Melva Viva Grace
Keyword(s):  
Foreign Currency ◽  
Foreign Debt ◽  
Currency Hedging ◽  
Financial Firms ◽  
Currency Market ◽  
Increase Risk ◽  
Currency Mismatch ◽  
And Performance ◽  
Derivative Market

This paper analyzes the role of currency hedging on non-financial firm’s performance. Most firms on the sample have anticipated the currency mismatch risk by balancing the ratio of foreign debt to their asset  fenominated in foreign currency. Using panel estimation, we find that there is no evidence of currency hedging activities to affect capital and performance of firms. The result underlines the low intensity of currency hedging activities due to lack of incentives, which is inline with the low derivative transaction within the underdeveloped foreign currency market. This finding may raise a concern since currently the development of foreign liabilities for non-financial firmsin Indonesia is increasing in significant level, as well as the increase risk of domestic currency depreciation. For these reasons, Bank Indonesia should take proactive policies to deepen foreign currency market as well as derivative market by providing a more comprehensive and market friendly hedging instruments to banks and non-financial firms, while keep promoting the benefit of currency hedging.Keywords: Hedging, derivative market, foreign liability.JEL Classification: F31, G31

scholarly journals THE ROLE OF FINANCIAL CONTROLLING IN THE MANAGEMENT SYSTEM OF TOURISM AND RECREATIONAL COMPANY

2017 ◽  
Vol 1 (9) ◽  
pp. 1-8
Author(s):  
Maia Seliverstova
Keyword(s):  
Financial Stability ◽  
Foreign Currency ◽  
The United States ◽  
Financial Economic ◽  
Modern World ◽  
Main Task ◽  
15Th Century ◽  
Destabilizing Factors ◽  
High Level

In the modern world tourism and recreation are highly profitable activities, which also have asignificantimpact on the economy of the country, contributing to the inflow of foreign currency, creating newjobs, improving infrastructure and so on. In the conditions of economic instability and high level of marketcompetition, success of financial-economic activity of tourist enterprises is determined by the efficiency ofdecision-making that directly depends on the total access to information about the financial state and existingrisks.The aim of the researchwas to identify the role of financial controllingin the management systemof tourist-and-recreational company.Research methodsused for this research paper were analysis, synthesis, comparison, classificationand grouping of functions and objectives oftheobjectbeing studied.The objectwas the role of financial controlling in the management system.It is believed that controlling as economic term was discovered in Europe in the 15th century, afterthat it gained a wide development in the United States. In Russia, the concept of controlling became popularin the 1990s.Conclusions:1. The main task of financial controlling is to maintain profitability and ensure liquidity,i.e. the ability of the enterprise to fulfil its payment obligations at any time that is most relevant for the tourismindustry. Among the key challenges faced by resort companies, it is important to headline the seasonality ofdemand, which largely affects the using of their material resources. The duration of the active period can varyfrom 90 to 180 days; it often depends on climateand a number of other factors (Zlenko, 2015). In order tostabilize the work during the off-season, maintain financial stability and solvency in recent years many tourismand recreational enterprises began to strive for the introduction of modern management systems. 2. Aneffective system of financial controlling at a tourist and recreational enterprise allows fully assessing thecurrent position of the company, making forecasts and successfully resisting external destabilizing factors.

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