The European Sovereign Debt Crisis (ESDC) spanning from 2010 to 2012 results in the biggest recession since the Global financial crisis. European countries faced high government debt, rapidly rising yield spreads in government bond, and then the collapse of several European banks. The peripheral countries, Portugal, Ireland, Italy, Greece, and Spain are arguably the most unstable hosting a vast majority of financially troubled borrowers. This paper studies the implications of spillovers from affected local banking systems to other countries which have operations in these troubled economies. Using a comprehensive interbank and international syndicated loan data sample, we find evidence on [...]

This study investigates the presence of return and volatility spillover across EAGLEs stock markets, namely China, India, Indonesia, Russia, Brazil, Turkey and Mexico. A multivariate GARCH DCC and BEKK frameworks are employed by classifying the total sample (i.e. from January 2002 to February 2017) into three sub-periods according to the 2008 Global financial crisis. The result shows a significant and positive spillover effect among stock markets in the pre-crisis and post-crisis periods. The transmission of spillover from external markets intensely influenced by US stock market. Furthermore, strong inter-connection and channel of spread observed among EAGLEs stock market during the [...]

The derivatives market having a significant number of investors trading in futures contracts, is vulnerable to manipulation by some perpetrators. Protecting market participants from a prevalent manipulation called circular trading and providing a fair market has always been a challenging task for regulators. This kind of malpractice is represented by the trading behaviors of a group of investors who trade among themselves frequently to increase the price of the commodity and consequently make forged prosperity. This paper presents a network-based approach for detecting investors involved in circular trading in the futures market. This is done initially by constructing the daily [...]

Conditional conservatism is strict verification of losses than gains and in timely recognition of earnings by reflecting bad news more quickly than good news. This study inspects the relation of conditional conservatism and the cost of capital. This paper examines whether timely loss recognition in financial reporting lowers the cost of capital in China A-Share listed enterprises registered in Shenzhen and Shanghai stock exchanges. This research analyse the penal data over the period 2002 to 2013. We find that conservatism reduces the cost of capital by decreasing dividend payoff, and conservatism reduces the agency conflict by reducing dividend payoff. Paper [...]

This paper investigates the relationship among openness, government size and economic growth in Nigeria. The study employed the autoregressive distributed lag (ARDL) approach to cointegration to investigate the relationship among the variables. Empirical estimates revealed that in the long run, financial openness and trade openness had an insignificant negative effect on economic growth while physical capital and government size had significant positive and negative effect on economic growth, respectively. In the short run, financial openness, physical capital and government size had significant negative effects on economic growth while trade openness had significant positive effect on economic growth. The study concluded [...]

The purpose of this study is to investigate the impact of fiscal and monetary policies on stock market performance along with the identification of moderating role of political stability in Pakistan. Data of Pakistani stock exchange for last 35 years (1981 to 2016) has been analyzed by applying multiple analytical methods. Stationary analysis has been performed through Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) unit root tests. Confirmation of long run relationship has been done through Johansen co-integration analysis. The study has employed ordinary least square method (OLS) of Hierarchical regression analysis to analyze the nature of relationship. Error correction [...]

This research aims to study the effects of geopolitical shocks on the equity market returns of BRIC economies. We used quantile on quantile regression (QQR) a non-parametric technique to capture the relationship between the said variables. The results confirmed a heterogeneous response of BRIC equity returns to their own country geopolitical risk. Brazilian and Russian funds were found to be more responsive to the geopolitical shocks, whereas, Indian and Chinese funds have shown resilience to the geopolitical uncertainties. The policy recommendations based on the findings are also discussed in the study. [...]

The present paper attempts to investigate the impact of some selected macroeconomic factors on the growth of Islamic Banking. An Islamic banking is one of the most rapidly growing segment of the economy nowadays particularly in Pakistan and other Islamic countries around the world. Therefore, the aim of our current study is to investigate whether macroeconomic variables influence the growth of Islamic banking in Pakistan or not. For that purpose, we used seven macroeconomic factors such as, gross domestic product, Muslim population, inflation rate, money supply, total savings, interest rates, and remittances. These variables are used because they directly or [...]

This study seeks to probe into the relationship between Corporate Governance (CG) and Earnings Management (EM). To fulfill the objective of the study, a panel data approach by considering the data of seventy four (74) non-financial firms listed at Karachi Stock Exchange (KSE) for the time period of nine years from 2005 to 2013 have been taken. Earnings management is calculated through discretionary accruals as a proxy by using Modified Jones Model. Panel data is analyzed for correlation analysis, assumptions of regression and Random-effects GLS regression by using STATA 13. In general results are in favor of the propositions that [...]

Currency devaluation plays an important role in reshaping trade balance. Counties like China and Malaysia have experienced export-led growth based on maintenance of their devalued currencies. This study provides the effect of recent currency devaluation of Pakistan on its trade with neighboring countries namely China, India, and Iran. The countries are of remarkable importance because the trade climate of the region is in transition in the essence of China-Pakistan Economic Corridor (CPEC). The paper adopts the elasticity approach to test the effect of devaluation by examining Marshall-Lerner condition. The study uses Panel data estimation models to determine import and export [...]