Modify your search
The Disappearing Calendar Anomalies in the Singapore Stock Market
Wing-Keung Wong, Aman Agarwal and Nee-Tat Wong
Published:July - Dec 2006
This paper investigates the calendar anomalies in the Singapore stock market over the recent period from 1993-2005. Specifically, changes in stock index returns are examined surrounding January (the January effect), on different days of the week (the day-of-the-week effect), around the turn of the month (the turn-of-the-month effect) and before holidays (the pre-holiday effect). The findings reveal that these anomalies have largely disappeared from the Singapore stock market in recent years. The disappearance of these anomalies has important implications for the efficient market hypothesis and the trading behavior of investors.
KEYWORDS:
Calendar anomalies, January effect, day-of-the-week effect, turn- of-the-month effect, pre-holiday effect.
JEL:
C10.
On the Conditioning of the Financial Market’s Reaction to Seasoned Equity Offerings
Onur Arugaslan and Louise Miller
Published:July - Dec 2006
Consistent with asymmetric information arguments, prior research has shown that the financial market typically responds negatively to the announcement of a seasoned equity offering (SEO). Korajczyk and Levy (2003), however, suggest that while some firms time the issuance of their common stock to take advantage of outside investor overvaluations, financially constrained firms do not. We examine whether prior information on how financially constrained a firm is along with its growth prospects influences the financial market’s response to the firm’s announcement to sell common stock. We find evidence that the financial market does condition its response upon such information using a sample of SEOs from the U.S. Our results also have implications for the financial market’s reaction to SEOs/rights offerings in emerging markets.
KEYWORDS:
Financial market, reaction, seasoned equity offering, SEO, common stock.
JEL:
N/A.
Organizational Culture Assessment of Small & MediumSized Enterprises
Arshad Zaheer, Kashif ur Rehman and Abrar Ahmad
Published:July - Dec 2006
This paper is an ethnographic study defining and assessing the organizational culture exhibited by Small and Medium Enterprises (SMEs). It primarily focuses on four cultural categories: clan, adhocracy, hierarchy and market-driven. These conceptual domains have been examined by the Organizational Culture Assessment Instrument. Results from a sample of 162 SMEs in the Rawalpindi/Islamabad area indicate that SME culture lacks creativity, innovation, freedom and risk taking. SMEs are not looking to change in the future, preferring the status quo. The most important finding is that SMEs exhibit a market- oriented culture focusing on results, competition and achievements.
KEYWORDS:
ethnographic study, SMEs, Pakistan, Islamabad, Rawalpindi.
JEL:
N/A.
Note: Understanding on Rules and Procedures Governing theSettlement of Disputes: A Developing Countries Perspective
Somesh K. Mathur
Published:July - Dec 2006
This note discusses the workings of the Dispute Settlement Process (DSP) of the WTO, and the major problems concerning the implementation of decisions in the DSP. It provides some suggestions in order for the DSP to work for the benefit of all. It maintains that the ability to extend dispute settlement across agreements is one of the strengths of the World Trade Organization. The author concludes that substantial reform can be undertaken in the DSP if concerted efforts are made to quantify economic damages for working out the suspension of concessions.
KEYWORDS:
WTO, DSP, Dispute Settlement Process, developing countries.
JEL:
N/A.
Book Reviews: Freakonomics: A Rogue Economist Explores theHidden Side of Everything
Sohaib Shahid
Published:July - Dec 2006
Levitt, Steven D., and Stephen J. Dubner, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, Harper Collins Publishers, New York, NY, 2005, pp 356, Price: Hardback $ 27.95.
Ever wondered why drug dealers still live with their mothers? Why the United States’ crime rate plummeted to new lows in the 90s? Why did the racist hate group the Ku Klux Klan (KKK) falter as an organized unit in America? What do school teachers and sumo wrestlers have in common? “Why” is something Steven D. Levitt does not cease to question. Levitt along with his amanuensis, Stephen Dubner has written a classic titled, Freakonomics.
KEYWORDS:
Book review, freakonomics.
JEL:
N/A.
Published:Sept 2006
The Second Annual Conference on the Management of the Pakistan
Economy opened with the Rector of the Lahore School of Economics, Dr.
Shahid Amjad Chaudhry, recalling that the first conference last year had
seen a good gathering of policy makers led by the Governor of the State
Bank Dr. Ishrat Hussain, the private sector comprising bankers and
industrialists, and academia. The dialogue generated on public policy had
been both intense and diverse, ranging across macro, sectoral and
institutional issues, especially edifying for the student body of the School.
Dr. Shahid Amjad discussed how this experience warranted the
institutionalisation of an annual conference, hence this second conference.
The tradition had also been set for the Governor of the State Bank of
Pakistan to deliver the inaugural address at the conference.
KEYWORDS:
Lahore School, Pakistan, second, annual conference, Pakistan economy, management.
JEL:
N/A.
Key Challenges in Economic Management of Pakistan
Taufiq A. Hussain
Published:Sept 2006
This paper points out that GDP growth is fundamentally on track
although a little below the expected 7% target owing to commodity sector
weaknesses. The rising trend in unemployment has been reversed over
2002-04. It is expected that longer trend growth over the decade will be
over 6%. However, there are certain macroeconomic imbalances, the
current account deficit, the widening savings-investment gap and
inflationary pressures, that need to be managed.
Pakistan’s economy continues to remain on a high-growth trajectory
during the current fiscal year, though the real GDP growth rate for the year
seems likely to be lower than the 7 percent target. The expectation of the
slowdown, relative to the FY06 annual target, owes principally to the
(estimated) weakness in the commodity producing sectors of the economy,
the impact of which will be partially offset by an anticipated above-target
performance of the services sector.
KEYWORDS:
Pakistan, economic management.
JEL:
N/A.
Published:Sept 2006
The paper addresses the structural rigidities in the fiscal system.
The fiscal rigidity has resulted in a fiscal overhang over the monetary
policy of the SBP. The author contends that policy should be geared to
reduce the fiscal tax burden on the formal sector and to reduce the fiscal
domination over monetary policy.
KEYWORDS:
Fiscal system, Pakistan, structural rigidities, monetary policy.
JEL:
N/A.
External Account and Foreign Debt Management
Ashfaque H. Khan
Published:Sept 2006
The paper highlights strong gains in the macro area. The author
also shows how total debt as a percentage of GDP has declined from 100%
in 2000 to 61% in 2005. This had resulted from a debt restructuring with
the Paris Club in 2001 and also due to the re-appraisal of GDP, which has
lowered the debt burden as well.
We should first focus on the external account, which is very topical
in both newspapers and TV. The trade deficit has widened significantly. It is
therefore very appropriate to understand what is the external balance.
Should we worry about it widening? Should the country across our border
also worry, because they are also facing a greater deficit?
KEYWORDS:
GDP, Pakistan, foreign debt, debt burden.
JEL:
N/A.
Intergovernmental Resource Transfers: Prospects and Issues
Mohammad Zubair Khan
Published:Sept 2006
The focus of this paper is on inter governmental resource transfers.
The question of these transfers crops up because of an asymmetry between
revenues and expenditures. Since the federal government earns 90% of the
revenues, while the provincial governments spend 25% of the revenues, this
calls for transfers from the federal to the provincial governments under the
aegis of the National Finance Commission. The allocations through the
NFC have increased substantively over time.
Pakistan is a federation of four provinces, unequal in area,
population and levels of economic and social development. The ethnic
distinction of provinces makes horizontal equity in development vital to
political stability and national cohesion. The separation of East Pakistan
from the federation in 1971 was rooted in a perception, right or wrong, of
economic injustice. The adoption of the 1973 Constitution with unanimous1
support of all remaining provinces, by addressing many of the contentious
economic issues, provided the country another opportunity to address
regional economic disparities and to strengthen the federation.
Unfortunately, violations of the Constitutional mandate as well as partisan
interpretation of various Articles of the Constitution over the last 33 years
have aggravated economic disparities between the provinces and rekindled
perceptions of economic injustice among the provinces.
KEYWORDS:
intergovernmental resource transfers, federal government, expenditures, Pakistan.
JEL:
N/A.