PSN: International Finance & Investment (Topic)最新文献

{"title":"Sukuk Securities, Their Definitions, Classification and Pricing Issues","authors":"Mohamed Ariff, M. Safari, S. Mohamad","doi":"10.4337/9780857936219.00011","DOIUrl":"https://doi.org/10.4337/9780857936219.00011","url":null,"abstract":"Islamic securities are specially tailored financial products that conform to a given set of legal-common- law-based (shari’ah) financial transaction principles, which are deemed strictly applied when designing financial contracting terms covering such products. These principles are quite different from those used in the design of conventional securities. The principles guiding the design of these securities evolved over some two and a half centuries without reference to such doctrine-based principles as are applied in designing Islamic financial products in historical times. From the time fractional reserve banking established a strong acceptance by regulators around 1800 ad some four decades after the Papal edict made interest rate-based lending permissible by the Roman Church, the lion’s share of production lending that existed for millennia on profit-sharing slowly gave way to a one-way contract where the profits and risk of a production loan became divorced. The entrepreneurs had to take the full risk of a venture, not the lender. This is not the case for the production of Islamic financial securities. The products thus designed under the Islamic label are found in publicly-traded bills, shares, debt-like sukuk and derivative markets or as privately-traded in financial institutions. Broadly defined, Islamic financial products could be classified into four types: (i) musharaka securities with ownership and control in the entire firm’s assets via share ownership, which makes this class very closely similar to common share securities with claims to profits only if profits are earned after sharing in the risk of the project being funded; (ii) sukuk securities, which are mostly finite-period debt or funding arrangement contracts mostly without managerial control of the project funded but with unique fractional ownership of a set of income-producing assets of a borrower set aside by the borrower as asset-backed or asset-based in a Special Purpose Company (SPC) owned by fund providers, whose pay-off is based on profit sharing from the assets of the SPC; (iii) a takaful contract, which is a risk transfer arrangement, an insurance contract with provisions that such insurance premiums as are collected from the insured party are to be invested only in approved (permissible by shari’ah) securities passing Islamic finance regulations; (iv) Islamic mutual funds, which are investment funds managed by managers on behalf of clients for a fee and recovery of costs incurred in management of portfolios, with provisions for return of profits after management costs. Among these four, takaful is an insurance transaction, but it uses mutual insurance principles, so excess profits are distributed at regular intervals to members based on a pre-agreed profit ratio. This simple four-category division of Islamic financial products may resemble similar respective conventional security classes, namely shares, bonds, insurance and mutual funds. But there are significant dif","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"154 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114611252","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Buying Beauty: On Prices and Returns in the Art Market","authors":"L. Renneboog, C. Spaenjers","doi":"10.2139/ssrn.1352363","DOIUrl":"https://doi.org/10.2139/ssrn.1352363","url":null,"abstract":"This paper investigates the price determinants and investment performance of art. We apply a hedonic regression analysis to a new data set of more than one million auction transactions of paintings and works on paper. Based on the resulting price index, we conclude that art has appreciated in value by a moderate 3.97% per year, in real U.S. dollar terms, between 1957 and 2007. This is a performance similar to that of corporate bonds---at much higher risk. A repeat-sales regression on a subset of the data demonstrates the robustness of our index. Next, quantile regressions document larger average price appreciations and higher volatilities in more expensive price brackets. We also find variation in historical returns across mediums and movements. Finally, we show that measures of high-income consumer confidence and art market sentiment predict art price trends. \u0000 \u0000This paper was accepted by Wei Xiong, finance.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115496007","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Volatility Effect in Emerging Markets","authors":"David Blitz, J. Pang, Pim van Vliet","doi":"10.2139/ssrn.2050863","DOIUrl":"https://doi.org/10.2139/ssrn.2050863","url":null,"abstract":"We examine the empirical relation between risk and return in emerging equity markets and find that this relation is flat, or even negative. This is inconsistent with theoretical models such as the CAPM, which predict a positive relation, but consistent with the results of studies for developed equity markets. The volatility effect appears to be growing stronger over time, which we argue might be related to the increased delegated portfolio management in emerging markets. Finally, we find that the volatility effect in emerging markets is only weakly related to that in developed equity markets, which argues against a common-factor explanation.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127073450","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Foreign Direct Investment: An Overview","authors":"K. Dhar","doi":"10.2139/SSRN.1999795","DOIUrl":"https://doi.org/10.2139/SSRN.1999795","url":null,"abstract":"India made significant development to achieve economic growth in the last decade. Another thing which requires to be appreciated is the fact that there has been a reduction in poverty. In this era of globalisation India also has come forward and has opened the doors for foreign investors. In the year 1991 the Government of India has started welcoming foreign investment. The foreign direct investment has been tremendous help to the India’s economic development as well as creating employment opportunities.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"74 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126282587","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Political Relations and Chinese Outbound Direct Investment: Evidence from Firm- and Dyadic-Level Tests","authors":"Quan Li, G. Liang","doi":"10.2139/ssrn.2169805","DOIUrl":"https://doi.org/10.2139/ssrn.2169805","url":null,"abstract":"Chinese outbound direct investment (ODI) has been a controversial phenomenon and an increasingly important research topic. We argue that ignoring the role of international relations in Chinese outbound investment is an important oversight in the literature on the determinants of Chinese ODI. Building on the literature on international politics and FDI in general, we identify the mechanisms and reasons for why China's political relations with potential hosts significantly influence firm investment decisions and ODI flow patterns. A novel empirical contribution of the paper is to test the effects of interstate political relations on Chinese ODI using two interrelated and complementary empirical tests: one at the firm level based on survey responses of 346 Chinese investors and the other at the dyadic level based on Chinese ODI flows to some 95 countries from 2003 to 2005. We find that the more importance a Chinese firm attributes to interstate relations, the more likely its investment decisions will be affected and that Chinese ODI is more likely to flow to countries with which the Chinese government has better political relations. Our analysis also addresses the puzzle of why Chinese ODI tends to go to countries of high political risks. Chinese investors go to those environments, not because of their risk acceptant preferences, but rather because of the risk-reduction effect of good political relations. Scholars of Chinese ODI as well as FDI in general should note that international politics does matter to the distribution of international production capital.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"230 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131421200","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Investor State Arbitration or Local Courts: Will Australia Set a New Trend?","authors":"L. Trakman","doi":"10.54648/trad2012004","DOIUrl":"https://doi.org/10.54648/trad2012004","url":null,"abstract":"The Australian Government announced in April 2011 that it will no longer include arbitration clauses in its investment treaties but will provide that investment disputes between foreign investors and host states be heard by the domestic courts of those host states instead. This statement reflects doubts by a developed state about the efficiency of bilateral investment treaties (BITs) in general and investment arbitration in particular. It also raises the question whether other countries will follow particular strategies to suit their discrete needs. One ramification is that resource wealthy states will make tactical decisions, such as entering into BITs only with capital exporting countries, as South Africa has declared. Another is whether developed states will avoid concluding BITs with developing countries whose domestic court systems are unknown or mistrusted. Yet another issue is how a policy statement, such as enunciated by Australia, will impact on its ability to attract foreign investment while protecting its national interests and also its investors abroad. This article deals with these issues, highlighting the significance of competing dispute resolution options in addressing the issues.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130295176","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"From Frontier to Emerging: Does Market Reclassification Matter?","authors":"Nasser H. Saidi, Aathira Prasad, V. Naik","doi":"10.2139/ssrn.1994623","DOIUrl":"https://doi.org/10.2139/ssrn.1994623","url":null,"abstract":"This paper discusses and compares the market classification criteria and methodology used by the various index providers, including MSCI, noting the similarities and differences. MSCI have indicated that the UAE and Qatar are being considered for re-classification from Frontier to Emerging market status, subject to a number of reforms. Evidence on the effects of reclassifications in both developed and developing economies is studied in this paper and we find that while MSCI have undertaken some 14 reclassifications over the years, six of them have been downgrades while there have been no reclassification from Frontier to Emerging, yet. Using past examples of classification changes, this paper examines the short- and long-term impacts of the reclassification - including an empirical analysis of the effects on markets returns of the classification of Egypt and Morocco as emerging markets. Our results indicate that the initial announcement of a potential reclassification leads to an “overshooting” with investors speculatively bidding up securities prices and returns prior to the actual reclassification event, leading to almost no impact post-reclassification. Additionally, too much emphasis is placed on a potential market reclassification, with many forgetting that reclassifications are best viewed as signaling a confirmation of policy reforms and changes in market conditions, which trigger the reclassification. Thus, there is an identification effect whereby improved market conditions, which are a result of policy actions and reforms (leading to a reclassification), could empirically be attributable to the reclassification itself.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131468480","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Law and Foreign Direct Investment","authors":"Selen Sarisoy Guerin","doi":"10.2139/ssrn.1975748","DOIUrl":"https://doi.org/10.2139/ssrn.1975748","url":null,"abstract":"In this paper we examine the effect of law on foreign direct investment outflows with a specific interest in the relationship between international investment law and domestic private property laws. Our results indicate that FDI investor is indifferent to host country property rights, hence shareholder protection by law is not a significant determinant of FDI outflows. We argue that FDI, in contrast with other types of capital flows, can effectively mitigate the agency problem through majority ownership and control, hence reduce exposure to ex-post expropriation by the affiliate. On the other hand, FDI investor remains exposed to risk of expropriation by the host government and is strongly sensitive to the enforcement of law in the host country. In contrast with recent literature we conclude that there are no causal relationship between bilateral investment treaties and FDI.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115482910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Robust FDI Determinants: Bayesian Model Averaging in the Presence of Selection Bias","authors":"T. Eicher, L. Helfman, Alex Lenkoski","doi":"10.2139/ssrn.2054934","DOIUrl":"https://doi.org/10.2139/ssrn.2054934","url":null,"abstract":"The literature on Foreign Direct Investment (FDI) determinants is remarkably diverse in terms of competing theories and empirical results. We utilize Bayesian Model Averaging (BMA) to resolve the model uncertainty that surrounds the validity of the competing FDI theories. Since the structure of existing FDI data is well known to induce selection bias, we extend BMA theory to HeckitBMA in order to address model uncertainty in the presence of selection bias. We show that more than half of the previously suggested FDI determinants are not robust and highlight theories that do receive robust support from the data. Our selection approach allows us to identify the determinants of the margins of FDI (intensive and extensive), which are shown to differ profoundly. Our results suggest a new emphasis in FDI theories that explicitly identify the dynamics of the intensive and extensive FDI margins.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128321849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Impact of Financial Crises on the Finance-Growth Relationship: A European Perspective","authors":"B. Mahlberg, P. Haiss, Hannes Juvan","doi":"10.2139/ssrn.1505968","DOIUrl":"https://doi.org/10.2139/ssrn.1505968","url":null,"abstract":"Rousseau and Wachtel (2011) [Rousseau, P., Wachtel, P., 2011. What is happening to the impact of financial deepening on economic growth? Economic Inquiry 49, 276-288] find a weakening effect of bank finance on growth for more recent periods in replicating King and Levine (1993) [King, R. G., Levine, R., 1993. Finance and Growth: Schumpeter Might Be Right. The Quarterly Journal of Economics 108, 717-737] in a heterogeneous sample up to 2004. We contribute by merging the financialization/crisis literature with the finance-growth literature and by re-examining this finding for a focused set of 30 European countries up to 2009. In a second step, we introduce an aggregated finance variable into the model which accounts for aggregate credit, bond and stock markets. We reconfirm a weakening effect of finance on growth, which is persistent even when dummy variables are added to control for financial crises. The development of European financial markets seems to have not only decoupled from the real sector but also to exert an inverted impact on growth. We attribute our finding to structural change and the procyclical nature of financial markets.","PeriodicalId":170864,"journal":{"name":"PSN: International Finance & Investment (Topic)","volume":"61 6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124323496","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}