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Abstract - Investigation of Household Debt through Multilevel Multivariate Analysis: Case of a Developing Country
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Abstract: This study focuses on investigating the relationships between different socioeconomic and demographic characteristics and households’ debt decision and demand. We used six survey rounds of data from Pakistan household integrated expenditure survey (HIES) 2001 to 2014. HIES is a nationally representative data collected by Pakistan Bureau of Statistics. Multilevel models were used to investigate the relationship in which the data on households was nested in primary sampling units (PSUs) and PSUs were nested in provinces. The decision of taking household debt varies 22% at PSU level and 18% at provincial level due to unobserved variables. We found that households having higher financial assets, higher income and larger household sizes tend to have a higher percentage of debt. The amount of debt also increases with education and age. In the case of demand for debt, the variation is 12% at the provincial level. Literature studying household debt decision in Pakistan often ignore the geographical differences (region/province specific studies). Considering socioeconomic characteristics habituating the usage of credit is of countless importance in guiding policy design and interventions that aim to improve financial inclusion. Keywords: Debt decision, multilevel model, households, Pakistan. |
Abstract - Factors Influencing the Intentions of Non-Muslims in India to Accept Islamic Finance as an Alternative Financial System
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Abstract: This study aims to investigate the impact of attitude & behaviour, subjective norms and religiosity on intention to accept Islamic finance as an alternative financial system in India. An adopted questionnaire with 20 items was used to gather data from 932 respondents. The sample was taken from north India and three religions: Hindu, Christianity and Sikhism acted as strata for this study. The data was tested for association between three variables on intention to accept Islamic finance. Statistical tools like reliability analysis, independent variable correlation, sample adequacy and regression analysis were used. The findings of this study suggest that subjective norms and religiosity is the influencer in accepting Islamic finance as an alternative. Attitude & behaviour has no relevance in developing intentions about accepting Islamic Finance. The research is original and its implications will be helpful for targeting non-Muslim customers with customized products and create awareness among people that Islamic finance is not only for Muslims. Keywords: Islamic Finance, intentions, attitude, behaviour. |
Abstract - The Effect of Transparency Policies on Shadow Economy: Measurement and Evidence from Korea
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Abstract: This paper provides a new and simple methodology to examine the relative size of the shadow economy to the official one using the quantity theory of money identity. We measure the shadow economy size in Korea annually. The Korean government has implemented various transparency policy measures to identify the tax source in commercial transactions. We find significant evidence that credit card encouragement and the cash payment receipt system have a negative effect on the shadow economy size. Keywords: Shadow economy, transparency policy, credit card, cash payment receipt, quantity theory of money identity. |
Abstract - Call Timing of Callable Non-Convertible Bonds: A Survival Analysis
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Abstract: We empirically analyze the factors affecting corporate decisions to call non-convertible bonds using survival analysis. The results show that firms tend to defer calling non-convertible bonds in order to mitigate agency costs of debt (including under-investment and risk-shift); that calling is significantly more intense if positive information is revealed; that non-refundability clauses are binding on call decisions; that firms are more likely to redeem bonds to refund if market interest rates fall dramatically; and that this interest effect is stronger as the transaction costs of refunding decrease. Also, this paper shows that call intensity monotonically decreases after call protection periods expire. Keywords: Call hazard rate, callable non-convertible bond, embedded call option, percentage life, duration. |
Abstract - Brics’ Foreign Debt Burden and its Impact on Core Institutional Basis
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Abstract: Creation of a multipolar international economy and economic relations is accompanied by shifting gravity centers of international finances, redistribution of positions on the global market for financial services in favor of large emerging countries and countries with transitional economies. This post crisis period triggered serious problems related to international capital inflows and outflows at the BRICS states. This is all due to a slow recovery of developed countries; a high probability of a full-scale debt crisis in some E.U. states; mounting uncertainties following financial reforms in some states, etc. But raising debt as an important way to finance speedy economic growth and import of technologies to the BRICS countries make their financial systems more vulnerable to exogenous stresses and shocks, which result in an unreasonable firming of national currencies. In our research, we have identified the risks and misbalances of global development, which affect BRICS, evaluated the influence of foreign debt and singled out the key growth trends. We have revealed the importance of the New Development Bank development, which will help solve urgent problems of its participants connected with their growing role in international economic relations: the creation of a regional financing mechanism as well as a core institutional basis to represent BRICS’ interests in the global financial structure and to become the missing link in interaction with global financial institutions. Keywords: Budget policy, state debt, tax burden on the economy, financial system of the state, macroeconomics, BRICS members. |