Search results for "Equity"
showing 10 items of 399 documents
Subsidization of higher education versus expansion of primary enrollments : what can a shift of resources achieve in Sub-Saharan Africa ?
1985
International audience; In many LDCs today, the distribution of public resources for education tends to be inefficient and inequitable in that subsidization often increases rather than decreases with the level of education. To improve efficiency and equity, a shift of resources from higher to primary education should therefore be considered. Such a shift would obviously imply an increase in the private cost of higher education, but its effect could be mitigated through a loan scheme. In this paper, our main purpose is to show what a cut in subsidies to higher education can achieve in terms of expanding primary enrollments. The results show that although the outcome differs from country to c…
How do educational reforms change the share of students in special education? Trends in special education in Finland
2019
Recent European and global trends in education have been to promote inclusive education and expand education, resulting in the increased provision of special education. In promoting inclusive education, recent special education reforms have also aimed to curtail the rise in identification rates for students in special education, for example, by focusing more on early support and discontinuing fiscal incentives to identify students with special educational needs. Using official special education statistics, we studied how Finland’s special education system reforms changed the share of students in special education. In addition, we examined variations in special education provisions among mu…
The determinants of increasing equity market comovement: economic or financial integration?
2010
This paper investigates to what extent the substantial increase in exposures of local European equity market returns to global shocks is mainly due to a convergence in cash flows (“economic integration”), to a convergence in discount rates (“financial integration”), or to both. We find that this increased exposure is nearly entirely due to increasing discount-rate betas. This finding is robust to alternative ways of calculating discount-rate and cash-flow shocks.
Is Momentum in Currency Markets Driven by Global Economic Risk?
2015
This article investigates the potential link between momentum in currency returns and global economic risk as measured by currency return dispersion (RD). We find that the spread on zero-cost currency momentum strategies is larger and highly significant in high RD states compared to low RD states. Also, the relation between these momentum payoffs and global economic risk appears to increase linearly in risk. Further tests indicate that the same macroeconomic risk component in currency markets is present in global equity markets. Based on this evidence, we conclude that global economic risk as proxied by RD helps to explain currency momentum profits.
Commodity market based hedging against stock market risk in times of financial crisis: The case of crude oil and gold
2018
Based on daily data from 1989-2016 we find that the correlations between some relevant commodity market futures and equity returns in the aggregate U.S. market, and specifically in the energy sector stocks have changed strongly during the stock market crisis periods. The correlation between crude oil futures and aggregate U.S. equities increases in crisis periods, whereas in case of gold futures the correlation becomes negative, which supports the safe haven hypothesis of gold. For energy sector equities, the dynamics of hedge ratios does not support using either crude oil or gold futures for cross-hedging during stock market crises.
Financial Sector Reform After the Subprime Crisis: Has Anything Happened?
2015
We analyze the reactions of stock returns and the spreads of credit default swaps (CDS) of banks from Europe and the USA to four major regulatory reforms in the aftermath of the subprime crisis, employing an event study analysis. Contrary to public perception, we find that financial markets indeed reacted to the structural reforms enacted at the national level. The reforms succeeded in reducing bail-out expectations relative to the post-bail-out period, especially for systemic banks. The strongest effects were found for the Dodd–Frank Act and in particular for the Volcker rule. Bank profitability was affected in all countries, showing up in lower equity returns.
Interest Rate Sensitivity of Spanish Industries: A Quantile Regression Approach
2015
This paper examines the degree of interest rate exposure of Spanish industries for the period 1993–2012 using the quantile regression methodology. The empirical results show that the Spanish stock market exhibits a significant level of interest rate sensitivity, although there are notable differences across industries and over time. In addition, the impact of changes in interest rates on industry equity returns tends to be more pronounced in extreme market conditions, i.e. during crises or bubbles in stock markets, than in normal periods. This finding may be related to herding behavior of stock investors during periods of market stress.
Interest rate changes and stock returns: A European multi-country study with wavelets
2016
Abstract This paper investigates the linkage between changes in 10-year government bond yields and stock returns for the major European countries in the time-frequency domain by using a number of cross-wavelet tools in the framework of the continuous wavelet transform, mainly the wavelet coherence and phase-difference. The results reveal that the degree of connection between 10-year bond rate movements and stock returns differs considerably among countries and also varies over time and depending on the time horizon considered. In particular, the UK shows the greatest interdependence between long-term interest rates and equity returns across time and frequencies, while the relationship is mu…
Predicting failure in the U.S. banking sector: An extreme gradient boosting approach
2019
Abstract Banks play a central role in developed economies. Consequently, systemic banking crises destabilize financial markets and hamper global economic growth. In this study, extreme gradient boosting was used to predict bank failure in the U.S. banking sector. Key variables were identified to anticipate and prevent bank defaults. The data, which spanned the period 2001 to 2015, consisted of annual series of 30 financial ratios for 156 U.S. national commercial banks. Identifying leading indicators of bank failure is vital to help regulators and bank managers act swiftly before distressed financial institutions reach the point of no return. The findings indicate that lower values for retai…
Does Shariah compliance make interest rate sensitivity of Islamic equities lower? An industry level analysis under different market states
2018
This paper examines the sensitivity of the Dow Jones Islamic market index and its corresponding industry equity indices to changes in the level, slope and curvature of the U.S. term structure of in...