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1 – 10 of 131I examine patterns of making or deferring strategic repatriations that firms can use to either meet analysts' forecasts or defer to maintain future reported earnings flexibility…
Abstract
I examine patterns of making or deferring strategic repatriations that firms can use to either meet analysts' forecasts or defer to maintain future reported earnings flexibility. First, I examine the extent to which firms repatriate earnings from high foreign tax subsidiaries to decrease US tax expense, resulting in increased net income and lower cash taxes. Using federal tax return information, I find evidence that firms strategically repatriate these earnings to meet or beat current analysts' forecasts. Next, I find evidence that firms that are able to obtain current year tax reductions defer these repatriations in an attempt to build cookie-jar reserves. Lastly, I find that firms do not disclose high foreign tax repatriations (HTRs), even when required by SEC rules. This study contributes to the earnings management, tax avoidance, and disclosure literature by examining a discretionary tax planning strategy.
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Isha Narula, Ankita Dawar and Khushi Sehgal
Introduction: The Stock Exchange is an economic indicator of sustainability in the global market over an extended period. The Indian economy has observed a downfall in foreign…
Abstract
Introduction: The Stock Exchange is an economic indicator of sustainability in the global market over an extended period. The Indian economy has observed a downfall in foreign currency in quarter 2 of 2022, as per the reports of the International Monitory Fund. The central banks of many countries have been facing crises because of a piercing decline in their reserves, which is additionally affecting their sustainable performance. The Indian economy is one of the most potentially sound economies emerging as a global leader, and this study is an attempt to understand the economy’s vulnerability to foreign factors.
Purpose: The research explores the impact of the US Dollar, EURO and Japanese Yen on Bombay Stock Exchange and the National Stock Exchange Index.
Methodology: Four variables have been considered for the conduct of the study: Sensex, Nifty, inflation and foreign exchange. Sensex and Nifty have been taken as dependent variables, while foreign exchange and inflation have been taken as independent variables.
The regression analysis has been performed using Microsoft Excel: The variables used for the study are monthly values from January 2011 to December 2020. The specific period is selected to avoid the impact of COVID-19 on the stock market, avoiding biases in the results.
Findings: All the variables are affecting the performance of each other up to a certain level.
Practical Implication: The research chapter will help the investor understand the relationship between many variables and their impact on the stock market, which will assist them in gaining higher profits.
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Aivars Spilbergs, Diego Norena-Chavez, Eleftherios Thalassinos, Graţiela Georgiana Noja and Mirela Cristea
The COVID-19 pandemic deteriorated the economic situation and raised the issue of the quality of banks’ assets and, in particular, the growth of non-performing loans (NPLs). The…
Abstract
The COVID-19 pandemic deteriorated the economic situation and raised the issue of the quality of banks’ assets and, in particular, the growth of non-performing loans (NPLs). The study approaches a topical subject that is of interest to banks and society at large, as credit availability is likely to be reduced. Over the last 10 years, the Baltic countries’ banking sector has significantly improved its risk management policies and practices, increased capital ratios on its balance sheets, and created risk reserves. The current chapter examines the factors affecting NPLs in the Baltic States based on advanced econometric modelling applied to data extracted from the International Monetary Fund (IMF) and Eurostat. The study results show that credit risk management in the Baltic States has significantly improved compared to the period before the global financial crisis (GFC), the capitalisation of credit institutions is one of the highest in the European Union (EU), and banks are liquid and profitable. Lending recovered from the downturn in the first phase of the pandemic, and credit institutions have taken advantage of the European Central Bank’s (ECB) long-term funding programme ITRMO III to improve the liquidity outlook. Although the credit quality of commercial banks has not deteriorated, as the exposures of credit institutions in the most affected sectors are insignificant and governments have provided fiscal support to businesses and households, some challenges remain. The increase in credit risk is expected due to rising production prices as well as the rebuilding of disrupted supply chains. The findings allow conclusions to be drawn on the necessary actions to mitigate the credit risk of the banking sector.
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Riyanka Bag and Ramesh Chandra Das
It has been already established that the countries that have opened their economies in advance have reaped more benefits compared to those who have done it late. For example, the…
Abstract
It has been already established that the countries that have opened their economies in advance have reaped more benefits compared to those who have done it late. For example, the countries of the West are far away from the countries of the East in terms of the per capita incomes as because, besides others, the magnitudes of trade openness of the former are higher compared to that of the latter. Besides countries, there are some economic groups such as European Union, Organization of Economic Cooperation and Development (OECD), etc. who have proved the similar growth impacts of trade. There is another group of highly developing economies, with the acronym of BRICS (Brazil, Russia, India, China and South Africa), which has proved as being highly beneficiaries of the trade liberalisation. But the magnitudes of trade openness and their impacts in these countries are subject to further explorations using modern data. The present chapter aims to compute trade openness using two different methods for the BRICS countries and make association of it with growth and foreign currency reserves (FCRs) for the period 1991–2019. In addition, the study examines whether the FCR is sustainable. It observes positive and negative correlations between economic openness and gross domestic product (GDP) growth and FCR in the member nations leading to mean that trade openness has definitely contributed to the growth as well as accumulation of FCRs. But, the trends in the FCRs are unsustainable in the BRICS nations.
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Urban scholars employ numerous sources to study early cities, including primary sources such as historical maps, literary accounts, tax records, and the like to help visualize…
Abstract
Urban scholars employ numerous sources to study early cities, including primary sources such as historical maps, literary accounts, tax records, and the like to help visualize cities in various periods. In recent years, a variety of artificial intelligence programs have been employed to not only create visual images of earlier cities, but also to allow audiences to negotiate city streets and enter buildings within the city. The Assassin's Creed series of video games created by Ubisoft place the game player in historical settings where the assassin (representing peace and free will) will battle against groups of foes (representing order and control). Assassin's Creed II is set in Florence at the end of the fifteenth century and has been praised for the visual reconstruction of the city. But how well can a computer game represent the Early Renaissance City?
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Parminder Varma, Shivinder Nijjer, Kiran Sood and Simon Grima
Banks play a vital role in the economy. Investigating their competitive environment is crucial to ensuring economic stability and development. The FinTech disruption has risks and…
Abstract
Purpose
Banks play a vital role in the economy. Investigating their competitive environment is crucial to ensuring economic stability and development. The FinTech disruption has risks and opportunities for incumbent banks, and it can be valuable to investigate its effects on banking performance. Therefore, the aim of this study is to assess whether investment in FinTech is associated with better performance of Indian banks during 2012–2018.
Methodology
To do this, a sample of Indian banks was investigated between 2012 and 2018 using k-means and hierarchical cluster analysis, ANOVA, and pairwise comparison tests.
Findings
Results of the analysis strongly suggest that investment in FinTech is associated with better banking performance. Higher FinTech investments, represented by mobile transaction volume, are associated with higher efficiency scores and accounting-based performance. In particular, banks that invest in FinTech and have relatively low non-performing loans have a 7.7% higher Return on Employment (ROE) than banks with exceptionally low FinTech use and no significant investment in smart branches.
Practical Implications
Therefore, it can be recommended that Indian banks adopt a forward-looking strategic approach when making investment decisions regarding new technologies. Failing to adapt to the FinTech disruption may result in poor value creation prospects in the long run.
Originality
To the best of the authors' knowledge, this is the first study that analyses. We are not aware of any similar study on whether investment in FinTech is associated with better performance of the Indian banks during 2012–2018.
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Introduction: India has the 15th-largest domestic natural gas consumption (NGC), critical to sustainable economic growth. Promoting natural gas will have a crucial impact on…
Abstract
Introduction: India has the 15th-largest domestic natural gas consumption (NGC), critical to sustainable economic growth. Promoting natural gas will have a crucial impact on production in all industries.
Purpose: This research gives an overview of NGC and gross domestic product (GDP) in India from 1990 to 2021 and investigates the association and nature of causality between NGC and GDP in India.
Methodology: For the years 1990 through 2021, we used annual statistics from the NGC and the GDP of India. Both research variables data have been taken from the World Bank Indicator.
Findings: There is no causality and correlation between natural gas and GDP in India.
Practical Implications: Based on the research, the Government of India can create different policies for substituting natural gas for other energy sources to have a healthier impact on a sustainable environment in the short and long term. In the future, researchers can work on environmental degradation and GDP.
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