Issue #3 (Volume 15 2018)

This paper addresses the question of whether sovereign risk pricing was related to macroeconomic fundamentals, between 2007 and 2015, in a sample of OECD countries. The authors argue that the conflicting evidence in the literature is due to poor methodology options. The researchers innovate by modelling sovereign credit default swaps implied ratings as our sovereign risk proxy, instead of spreads, avoiding common pitfalls. Furthermore, the authors improve the variable selection, model specification and the econometric procedures used. A panel ordered probit model is chosen, assuring robust inference. The authors relax the parallel lines assumption, allowing for rating-varying coefficients of explanatory variables. The result is the first congruent model of sovereign risk during the years of the financial crisis and of the Euro Area crisis. Fiscal space variables, economic activity indicators, variables pertaining to external imbalances, and contagion proxies are relevant, with effects matching theory priors. The scientists clarify conundrums in the previous literature, posed by lack of significance of some macro fundamentals and by puzzling signs of some estimated coefficients. Moreover, this is the first paper to estimate not only the global risk premium, but also the impact of changing risk aversion. The authors find no support for claims of sovereign risk mispricing during the sample period. The results allow relevant policy conclusions, namely concerning the validity of different fiscal consolidation paths in financially distressed countries.

Globally, tourism has been identified as a means of poverty reduction and development, and as a means of encouragement of females, minorities and small businesses to better engage in the mainstream of economic life. This paper examines whether the international and governmental financial support, grated by international financial institutions, is effectively achieving these aims in Latin America and the Caribbean. A series of indices are established in the paper that assess the extent to which such funding includes non-corporate enterprise while also considering the volume and nature of such funding. It is concluded that the goals of inclusiveness are not being met.

Nigerian economy depends on oil as the major source of revenue, failure to diversify the revenue base has raised questions about its sustainability and implication on the economy. This study uses market capitalization, broad money stock, credit to private sector, prime interest rate and deposit liability as proxies for the financial sector, while output in the manufacturing sector and manufacturing employment are used as proxies for manufacturing performance. The study examines the causal effects, shock effect and long-run impact using Granger Non-Causality, Vector Error Correction Model, and Dynamic Ordinary Least Square method, respectively. The results showed unidirectional causality, confirming the hypothesis of the ‘supply-leading view’ and ‘demand-following view’ except for market capitalization and output in the manufacturing sector, where independence was observed. The variance decomposition shows that the forecast error shock of credit to private sector and prime interest rate show more variations in manufacturing sector performance than other financial indicators. The long-run result using output in manufacturing sector as dependent variable shows a positive significant relationship with other financial sector indicators, except for broad money stock and deposit liability. This study recommended credit channel for transmission of monetary policy using interest rate to improve the performance of manufacturing sector, among others.

A model for estimating the likelihood value of residual risk (Y) is introduced. The model consists of three independent variables: the likelihood value of risk before risk treatment (X1), the quality of risk treatment (X2), and the appropriateness of risk treatment (X3). An experimental research design with a multiple linear regression analysis was used in the estimation. All independent variables, the likelihood value of risk before treatment, the quality of risk treatment, and the appropriateness of risk treatment, can be significantly used to estimate the likelihood value of residual risk. Since no model of estimating residual risk of likelihood had been introduced yet, the findings of this study provide significant contribution to firms or organizations that need to assess the likelihood value of residual risks.

Under the conditions of the development of market relations, the insurance protection of agricultural producers plays an essential role in the economic stabilization of their development. Insurance can be one of the most effective tools for managing production, market and legal risks, but agricultural insurance is not well developed in the country. The purpose of the article is to study the current state and prospects for further development of the Ukrainian agrarian insurance system, based on developing the strategy of development of the latter with maximum consideration of needs and interests of all its participants.
General scientific methods of scientific knowledge and research of economic phenomena are used for the achievement of the goal set in the article, such as the abstract-logical method, comparison method, monographic method, tabular method, graphical and scientific generalization.
The article investigates features of the present state and general tendencies of functioning of the Ukrainian agrarian insurance system and outlines general features and prospects of further development of the latter, which are based on development of the strategy of system development with maximum consideration of needs and interests of all its participants. A set of principles is defined on which the strategy of development of the Ukrainian agricultural insurance system should be based and their further functioning in the format of the model of private-public partnership is proposed within the framework of the developed strategy. This represents a balance between public-private partnerships. The results of the study can be used for further scientific developments in this direction. The implementation of the measures proposed in the framework of the strategy for the development of the Ukrainian agrarian insurance system through the effective use of state resources and maximum use of the agrarian market and the insurance market should ensure stability of both agricultural production in general and income of the rural population in particular. This is a prerequisite for stable economic growth of the country and an increase in the welfare of its citizens.

The main aim of this paper is to evaluate the impact of demonetization on Indian firm’s quarterly financial performance before and after demonetization period (March-December, 2017), and to find out if companies’ age helps to face financial disruption. Four variables, which are net sales, total income, net profit after tax, and earnings per share, were taken as proxies for analyzing the quarterly financial performance of 2,892 companies listed on Bombay Stock Exchange (BSE), National Stock Exchange (NSE), and Calcutta Stock Exchange (CSE). Nonparametric test, particularly Wilcoxon Matched-Pairs Signed Rank Test and Kruskal-Wallis one-way analysis of variance, were applied in analyzing the data. Results reveal that there is a statistically significant difference between the financial performance before and after demonetization at 5% level of significance. It was also found that the decrease/increase in the financial performance of all the firms was affected by the demonetization process, irrespective of their ages. The findings could be useful for financial managers and financial consultants, as they would be able to focus on the issues that matter most at the time of financial disruption.

The main aim of the given research is to develop an appropriate approach for creation of information FinTech platform with the EU standards compliance mainly for SMEs in order to support innovativeness of SMEs, improve their access to finance and simplify different financial processes. The authors defined the main features of FinTech platforms underlining types of FinTech, its participants and the most influential factors. The main trends of FinTech platforms development in the EU countries, such as the level of investment, impact of EU FinTech platforms on the global scale, features of investments into B2B FinTech, were determined. It was considered that in Ukraine, some positive changes in legislation were adopted, but the challenges like lack of finance, slow adoption of innovations in the financial market, not sufficient clarity of legislation remain among the main constraints for further development of FinTech platforms in Ukraine. The conducted analysis on the level of FinTech types performance by Ukrainian platforms showed only the great share of digital payments and money transfers, while other modern innovative FinTech instruments should not be underestimated for proper FinTech application in Ukraine. For this purpose, the authors have developed the Information Platform on Support for SMEs’ Innovations that consolidates interests of both SMEs and scientists. To determine both the SMEs’ opinion about the necessity of a particular Internet platform for them and the types of services that could be provided by the sme-sci.com platform, the authors conducted a survey in which 374 medium-sized and 380 small businesses took part. The results of the survey that are presented in the article confirm the necessity of the Information Platform on Support for SMEs’ Innovations and demand for it from the SMEs. Finally, the result of the research proves that such a unique informational platform as sme-sci. com that will serve as an interactive field for exchanging ideas and information of both representatives of scientific and business world is of great importance.

The authors adopt an event study method and empirically investigate the performance of a beta momentum strategy (long in past winners of small beta and short in past losers of large beta) after extreme market movements in 20 countries. The researchers find that the beta momentum strategy yields material abnormal returns after controlling for return factors of size (SMB), book-to-market (HML) and momentum (UMD). The results are consistent for both extreme market UP days or DOWN days and regardless of whether the extreme market movements are identified by three percent or two percent cut-off points. In addition, the results based on the beta momentum strategy are more consistent than those of conventional momentum and betting against beta (BAB) strategies over different test windows from (0, +1) days to (0, +90). Finally, the abnormal returns based on momentum, BAB, and our beta momentum strategies are statistically insignificant for the Asian and Australian subsamples, whereas the results are significant for the European and North American samples.

This study investigates the interactions among stock ownership, liquidity and dividends in the UK stock market over the period 2002–2016. Using different liquidity measures, it is shown that stocks with higher levels of free float (institutional ownership) are associated with higher (lower) levels of liquidity. In addition, a positive and significant relation is found between institutional ownership and dividend payout policy, which, as a result, highlights the comparative tax advantages that UK institutions have for dividend income. These relations hold even after controlling for firm-specific characteristics. Finally, a negative relation is found between dividends and liquidity, implying that investors with less (more) liquid stocks are more (less) likely to receive dividend payments.

This research aims to explore new evidence on the nature of the relationship between the effectiveness of audit committee and earnings management in one of the emerging economies, Jordan. In addition, it investigates how external auditor size might moderate this relationship. For this purpose, a panel data consisting of 64 industrial firms listed on Amman Stock Exchange (ASE) is used, covering the period between 2009 and 2014. An index consisting of four characteristics is developed to measure the effectiveness of audit committee, namely audit committee independence, size, meetings and financial expertise. Results show that audit committee effectiveness has a significant and negative impact on earnings management. Moreover, a positive interaction effect of external auditor size and audit committee effectiveness on earnings management is found, which is supportive of the substitute relationship between the external auditor size and effective audit committee in reducing earnings management. Policy makers and professional accounting bodies in Jordan might benefit from these results, as they show that legislative reforms can motivate firms to adopt good governance practices to mitigate earnings management.

Mobile money agents (MMAs) are the pedestal of inclusive finance by bringing financial services closer to unbanked people by offering them capabilities to move from cash to electronic money and vice versa. This function is effective in an environment where hard cash is in uninterrupted circulation. The aim of this paper is to investigate implications of cash liquidity challenges in Zimbabwe to the development of financial inclusion through MMAs in a rural set-up. Phenomenological in-depth interviews were conducted with MMAs. Due to national liquidity challenges, MMAs ceased to receive cash float support, limiting their cash-in and cash-out services. Pure agents were adversely affected, while those who operate retail goods services reported increased goods sales through mobile money point-of-sale payments. Consumers are restricted to deal in electronic funds in the cashless economy making the cash-in and cash-out function of MMAs redundant. MMAs need support to sustain their operations and recoup invested capital in infrastructure. Risk management strategies, including the principal-agent contracts that minimize the exposure of MMAs to disruption of the service are important. MMAs could form an association to lobby financial regulators for support, negotiation with principals, market research, political power and active participation of agents in deepening financial inclusion. Perhaps pure MMAs could improve their economic sustainability by diversifying their businesses.

The article examines the current tendencies of the government indebtedness in the world. It proves the rapid growth of the government debt in the different countries around the world after the 2008–2009 financial crisis and analyzes the reasons for government debt increase in particular countries and its consequences. The study is devoted to the research of the government debt in developed and developing countries. Particular attention is paid to the government debt of Japan, the USA, the European Union countries. In the article, the government debt of Ukraine, its tendencies, and consequences for the economy are analyzed. The state borrowings in Ukraine are often used for financing the servicing and payment of the existing debt. Government debt can be an important investment source and used for the development of the economies. But in the conditions of its rapid and unlimited growth, government indebtedness can be a burden for the economy.

This paper explores the frequency of price overreactions in the Ukrainian stock market by focusing on the PFTS Index over the period 2006–2017 and UX index over the period 2008–2017, as well as some “blue chips” (BAVL, UNAF, MSICH, CEEN) for the period of 2013–2015. Using static approach to detect overreactions, a number of hypotheses are tested: the frequency of price overreactions is informative about crisis events in the economy (H1), can be used for price prediction purposes (H2), and exhibits seasonality (H3). To do this, various statistical tests (both parametric and non-parametric), including correlation analysis, augmented Dickey-Fuller tests (ADF), Granger causality tests, and regression analysis with dummy variables, are carried out. Hypotheses H1 and H2 are confirmed: frequency of price overreactions can be used as a crisis predictor (a sharp increase in the number of overreactions is associated with a crisis period) and could be used to predict stock returns. No seasonality in the overreactions frequency is found. Implications of this research include crisis prediction and stock market prices forecasting and can be used for designing trading strategies.

The cryptocurrency market has witnessed significant growth in the past few months. The emergence of hundreds of new digital currencies and the huge increase in the prices of their leading representatives have attracted a lot of attention from investors. However, the financial characteristics of the cryptocurrency markets have not been systematically evaluated yet. As a consequence, there is currently no consensus on whether cryptocurrencies constitute an individual asset class or if they share substantial similarities to stocks, bonds, commodities or foreign exchange. Based on Markowitz et al. (2017) this paper aims to fill this lack of research by evaluating the cryptocurrency market based on seven requirements of an individual asset class. The authors find that the cryptocurrency market distinguishes itself remarkably from established asset classes in terms of risk and return. Additionally, the low correlation between the cryptocurrency markets and these established asset classes induces a diversification potential for investors, leading to more favorable risk/return profiles of their portfolios. But also the emergence of investment services and products provided by the financial industry and the increasingly cost-effective access to cryptocurrencies corroborate the conclusion that cryptocurrencies can be seen as an individual asset class.

This paper discusses the political economy of budget deficits among the BRICS nations between 1997 and 2016 using a panel cointegration approach to determine the long-run relationship between economic growth, budget deficits, inflation and gross investment. The results of the study show a long-run equilibrium association among economic growth and the selected variables. Furthermore, there is a positive relationship between budget deficit, inflation, and economic growth, for the period under study for BRICS countries. Lastly, the results support the view that there is bi-directional linkage from budget deficit to economic growth and vice versa.

Financial resources have become one of the funding policies considered by companies. The financial resources can come from internal and external sources. Leverage is used as one of the policies to get external source of funds. By using leverage, companies have additional funds that can be used for their operations and investments. When a company decided to use leverage as a financing policy, it is expected to get enough funds to finance its business. Raising the funds will lead to better company’s financial performance. However, on the other hand, by raising funds, the company also needs to consider the risks. Thus, leverage is related to risk. Then, risk is one of the considerations for investors to think about.
This research aims to examine the effect of risk leverage and hopefully can give illustration for investors in analyzing the risks of investors’ preferences. Besides, other variables used are size and profitability. These two variables are also the ground for considering risks. With pooled data analysis, this research was conducted on manufacturing companies listed on the Indonesia Stock Exchange during the five-year period from 2012 until 2016. The result shows that leverage, profitability and size have significant effects on risk.

Financial support for the agrarian sector is the priority of economic policy in many countries of the world, as it plays a key role in achieving the goals of sustainable development, in particular poverty reduction, food security, environmental improvement, including reducing CO2 emissions, reducing water pollution, etc. In the main, the financial support for the agrarian sector of the various countries is multi-channel and combines budget financing and financial market opportunities. At the same time, for many countries, including Ukraine, the issue of the ratio of these sources of financing and their influence on the development of agricultural production remains unresolved. The analysis of budget financing has shown a lack of stability in the implementation of financial support programs for the agrarian sector of Ukraine, which affects the financial sustainability of enterprises and their ability to attract market financing. In the article, using the structural modeling, the necessary amount of financing for the agrarian sector was determined through budget financing, bank lending and agro-insurance. The results of the calculations showed that the actual size of bank lending to agrarian enterprises is significantly lower than the simulated values. At the same time, budget financing creates conditions for ensuring financial sustainability of agrarian enterprises and encourages them to use bank lending, while increasing budget financing reduces the need for agro-insurance operations, which is a negative consequence of its use.

Investigation of not only the causes and the factors that cause the development of world crises, but also the perspective and actual tools for reducing the impact of their effects, is topical at the present stage. The purpose of this study is to investigate scientific approaches to justifying the investment policy of enterprise modernization as a key condition for overcoming the economic crisis. The object of the study is the investment policy of modernization of enterprises as a key condition for overcoming the economic crisis. The study specifies the essence and economic content of investment and investment policy of the enterprise modernization, identifies main problems of reproduction of the fixed capital at Russian enterprises in modern conditions, systematizes the main approaches to the justification of the investment policy of enterprise modernization, and suggests the use of the investment policy of enterprise modernization as the main condition for the crisis recovery.

Despite positive transformations in higher education in Ukraine since 2014 when a new Law was introduced, the system of public funding still remains a highly centralized and strongly budgetary dependent based on the state planning methods, which in the situation of lack of resources becomes more imbalanced and inefficient.
The current system of allocation of the “state order for training the specialists with higher education” does not ensure an equal and fair competition among top 10 universities and the rest, especially regional, and the system cannot guarantee state-funded places to all applicants with high results of the External Independent Testing exams. At the same time, only a small share of graduates work on the specialty they acquired. The situation on the labor market does not encourage graduates to be employed in public institutions, which is harmful for the public sector of economy, especially in the regions. It proves that the system of distribution and allocation of government funding between higher education institutions in Ukraine needs urgent reforming.
The objective is to analyze the current system of higher education funding in Ukraine in its national dimension and local perspective, and to develop proposals for its improvement, considering the selected good practices and using the following methods: literature analysis, method of retrospective analysis to research budgetary expenditures, determining the Net Present Value for calculating the government cost. Finally, a feasible proposal to reform the mechanism of public higher education funding was developed.

The article analyzes some indicators of Ukraine’s financial security in the context of transnationalization and national interests. On the basis of the obtained results, the role of financial security in the context of transnationalization and national interests has been determined, directions for strengthening the financial security of the country have been proposed.
The main objective of the study is to determine the role of Ukraine’s financial security in the context of transnationalization and national interests, based on the study and evaluation of some financial security indicators. The methodology of the research is based on the early prevention of threats to financial security of Ukraine in the context of transnationalization and national interests, based on both macroeconomic and financial data from the entire financial system. The regression models were used, because they work dynamically and change as information changes. Diagrams can be used by financial analysts to understand the investment attractiveness of the country at the current time with the current level of financial security. Standard models are designed to predict the financial stress and threats to financial security. Financial security models must be built with the support of macroeconomic knowledge, assessment of other risks and expert interpretations, used to get the highest value in the research.
The procedure of simulation of financial security indicators of the country has been given. The use of correlation and regression analysis for forecasting the financial security indicators in Ukraine has been substantiated. The links between the indicator variables have been analyzed. The general view of model relations between financial security indicators in Ukraine has been determined, their statistical analysis has been carried out and the necessity of forecasting the financial security indicators of Ukraine has been substantiated.

This paper reassesses the relationship between working capital management (WCM) and firm performance in the Nigerian context. The study is motivated by the limited insights available on the impacts of WCM on firm performance in the country. To date, most studies from Nigeria have been largely descriptive and focused on a small sample size that is non-representative of the population. In addition, there are limited rigorous statistical analyses involved in such studies. This paper addresses the methodological limitations apparent in prior literature and provides a better understanding of the relationship between WCM and firm performance, revealing how firms can manage their operations more profitably. The paper adopts a panel data regression analysis on a sample of 75 non-financial firms listed on the Nigerian Stock Exchange from 2007 to 2015. The results of the analyses showed that WCM variables have an inconsistent relationship with the measures of performance adopted, which were return on assets and Tobin’s Q. Specifically, accounts receivable management and inventory management were negatively associated with the return on assets, while accounts payable management, cash conversion cycle and cash conversion efficiency were positively associated with return on assets. Additionally, accounts receivable management and inventory management were positively associated with Tobin’s Q, whereas accounts payable management, cash conversion cycle and cash conversion efficiency were negatively associated with Tobin’s Q. These results were found to be robust using quantile regression. The results of the quantile regression showed inconsistency across the various quantiles used (0.10, 0.25, 0.50 and 0.75). These findings have two important implications. The first is that WCM variables influence the performance of firms. The second is that the mixed findings partly indicate that firms and managers must understand and formulate WCM policies that reflect their peculiar conditions.

The empirical evidence in the developed equity markets such as the United States, the United Kingdom, Germany, Japan and emerging markets had pronounced that there are institutional and individual investors’ cognitive psychology and mental biases in favor of the Growth Stocks, that is, the Growth Stocks are always preferred to the Value Stocks by the investors. The investors most times prefer the Growth Stocks to the Value Stocks irrespective of the stock fundamentals behavior in the equity market. The paper investigated whether Cognitive Psychology and Mental biases affect Portfolio Selection strategies using the Growth or the Value Stocks investment styles in the Nigerian Stock Market. In the study, the summary of the primary data was described and Multinomial Logistic Regression (MLR) models were adopted to make inferential decisions. The paper collected primary data through questionnaire administered to individual and institutional investors on the floor of Nigeria Stock Exchange (NSE). The findings from the analyses conducted confirmed a strong existence of Cognitive Psychology and mental biases in favor of the Growth Stocks in the Nigerian Equity Market. Investors had more belief in Growth Stocks than the Value Stocks notwithstanding the behavior of the market fundamentals. The study recommended that investors should seriously consider occurrences and performance fundamentals in Portfolio Selection in the Nigerian Equity Market.

The tax administration effectiveness depends on the level of tax revenues and economic system functioning and the stable economic development of any government. The article considers institutional aspects of tax administration. The purpose of this study is to describe, evaluate and search for the development prospects of the organizational model of tax administration. The authors describe the contemporary condition of the Republic of Kazakhstan tax authorities’ organizational structure. Moreover, the international practices of the tax administration’s organizational system in modern realities is overviewed. The tax administration effectiveness is evaluated by the correlation-regression analysis of the tax authorities’ activity indicators. As a result, the relationship between the degree of effectiveness of tax administration and key performance indicators of tax authorities were identified and evaluated. Based on the conducted theoretical research, this paper reviewed tax administration’s partner system within the perspective innovative development framework. The research results are of interest to economists and public officials in the tax audit field.

The main purpose of this paper is to evaluate the impact of the news on the housing price volatility in Iran. To do so, symmetric and asymmetric models such as GARCH, T-ARCH, EGARCH and APGARCH are applied by using annual data for the period 1971–2013. The empirical results confirm the asymmetric and leverage effects of news in Iran housing market. Also the impact of shocks indicates that negative news affect the housing price fluctuations further more than positive news with the same size.

In the conditions of functioning of economic relations, which arise between subjects of the financial system of Ukraine, the question of creating safe conditions for their activity is increasingly being raised. Attention is paid to the investigation of the state of financial security of the country as a component of economic security, in terms of its key elements, which allows attention to the most important indicators and to develop measures to prevent existing threats.
The purpose of the paper is to forecast the level of financial security of the country based on regression analysis of impacts factors. The object of the study is the financial system as a mechanism, which is aimed at the activities of financial security subjects of the country to ensure its proper level. As a result of the regression analysis, it was found that changing in the country’s banking security by 1% will decrease the overall financial security index by 0.04 points, while the non-banking market will grow by 0.07 and the monetary component will decrease by 0.51.
Based on the calculation of the arithmetic mean of absolute deviations of independent variables, the estimated value of Ukraine’s financial security level is calculated, which is 40.09% in 2018.
Proposals for improving the “Methodological Recommendations for Calculating the Level of Economic Security of Ukraine” will help to solve the problem of mathematical substantiation of the choice of indicators for assessing financial security, minimize risks, eliminate subjectivity and improve the efficiency and the quality of the country’s financial security assessment methodology.
The article deals with the issues of the financial component of economic security as the main element of ensuring sustainable financial development of the country.

The study investigated Corporate Social Environmental Reporting and its association with stock prices (using market price per share as at the financial year end) among listed firms in Nigeria. The study used a cross-sectional research design comprising 50 publicly listed companies across various sectors for the period of five years (2011–2015). For the selected firms, the annual report was used to collect the data. This research utilizes the panel data regression in analyzing the influence of the independent variable (measured by corporate social and environmental expenditure) on the dependent variable measured using the market price per share) for the respective years. Also, in an attempt to examine the relatively market price per share across the sampled industries, the study made use of the one-way analysis of variance; while the Granger causality test was also conducted to ascertain whether bi-directional relationships exist between explanatory variable and the dependent variable (i.e. corporate social and environmental expenditure and market price per share). Findings from the study revealed that the association between corporate social and environmental expenditure and the market price of the firm (when considered in aggregate) is not significant. The result from the Analysis of Variance (ANOVA) showed that the market price per share is significantly different across the industries.

The paper conducts a short-run analysis of the implications of oil price movements and exchange rate relationship for the Nigerian manufacturing sector growth between January 2008 and September 2017. Monthly data are extracted on variables such as oil price, exchange rate, inflation rate, interest (lending) rate, money supply and the manufacturing sector growth rate. Oil price movements are viewed in terms of both volatility and change. While EGARCH is used to estimate oil price volatility, oil price change is measured using Hamilton index for both oil price sharp drop and jump. The SVAR results indicate that exchange rate and inflation rate are more responsive to sharp drop in oil price. The two variables also have the highest impact on the manufacturing sector growth. Findings further indicate that Nigerian manufacturing sector is more affected at the cost side than the output side. This underscores the importance of tackling the inflation pressure in Nigeria from the structural perspective as against the monetary perspective.

The objective of this study is to give an empirical evidence of relationship between features of ownership structures and dividend disbursement in context of bird in the hand and catering theories. The study uses 241 listed firms as the sample, which were drawn from Indonesia Stock Exchange during the period from 2010 to 2015. Under condition that dividend policy is not moderated by ownership features, dividend policy for firms with multi-institutional, single institutional, and state are fit in context of bird in the hand theory and catering theory. Under condition that dividend policy is moderated by ownership features, this study finds that dividend policy for firms with state ownership is not fit both in context of bird in the hand theory and catering theory. Specifically, the study finds that firms with features of: (1) multi-institutional, single individual, and public; (2) multi-institutional, multi-individual, and public; and (3) single institutional, and public are fit with bird in the hand theory. Furthermore, this study finds that catering theory is not fit for firms with basic features of multi-institutional and state ownership, but it is fit for firms with features of single institutional, single individual, and public ownership.

Modern trading systems are mechanic, run automatically on computers inside trading platforms and decide their position against the market through optimized parameters and algorithmic strategies. These systems now, in most cases, comprise high frequency traders, especially in the Forex market.
In this research, a piece of software of an automatic high frequency trading system was developed, based on the technical indicator PIVOT (price level breakthrough). The system made transactions on hourly closing prices with weekly parameters optimization period, using the d-Backtest PS method.
Through the search and checking of the results, two findings for optimization of trading strategy were found. These findings with the order they were examined and are presented in this paper are as follows: (1) the simultaneous use of “long and short” positions, with different parameters in a hedging account, acts as a hedging strategy, minimizing losses, in relation to a “long or short” in a non-hedging account for the same time period and (2) there is weak correlation of past backtesting periods between the same systems, if they are configured for “long and short” trades, or for just “long” or for just “short”.

This article is concerned with the debate around the economic knowledge evolution and the role of ethics in economy. It reports on the 2008 crisis, the research literature reveals two main problems: the efficiency of the economic modeling and the failure of the ethical system.
The authors explore the use of the new Dynamic Stochastic General Equilibrium “DSGE” model in the case of Islamic economy, it can enable to develop a new approach, taking into account the criticism of the models used before the crisis, and giving more importance to the ethical principles.
The question is to know if the principles of Islamic economy feed into a sustainable economic system.
The characteristic of this model lies in the consideration of Islamic principles, namely the abolition of interest rates and their replacement by the rate of return of the capital. In this perspective, it is supposed that the intervention of the monetary authorities is done by an unconventional approach. The model also distinguishes itself by the integration of Zakat. The model is applied in the case of Morocco.
The results of simulations show that the introduction of these Islamic principles has no negative effects on the macroeconomic and financial conditions of Morocco and that the stability of the economic system is maintained.