Asian Economic and Financial Review

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Online ISSN: 2222-6737
Print ISSN: 2305-2147
Total Citation: 1219

No.5

Synchronization of Economic Systems with Fractional Order Dynamics Using Active Sliding Mode Control


Pages: 692-704
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Synchronization of Economic Systems with Fractional Order Dynamics Using Active Sliding Mode Control

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Atefeh Marvi Moghadam --- Saeed Balochian
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Atefeh Marvi Moghadam --- Saeed Balochian (2014). Synchronization of Economic Systems with Fractional Order Dynamics Using Active Sliding Mode Control. Asian Economic and Financial Review, 4(5): 692-704. DOI:
Synchronization of chaos has widely spread as an important issue in nonlinear systems and is one of the most important branches on the problem of controlling of chaos. In this paper, among different chaotic systems the economy chaotic system has been selected. The main aim of this paper is the designing based on the active sliding mode control for the synchronization of fractional-order chaotic systems. The chaos in the economic series could have serious and very different consequences in common macro-economy models. In this paper, this article expressed the various positions of synchronization in economic system that include of changes in the coefficients of the system ,changes in the initial conditions of the system and different fractional-order synchronization on the economic system. . in which Synchronization is shown in some examples.
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The Effects of Firm Specific Factors and Macroeconomics on Profitability of Property-Liability Insurance Industry in Taiwan


Pages: 681-691
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The Effects of Firm Specific Factors and Macroeconomics on Profitability of Property-Liability Insurance Industry in Taiwan

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Chen-Ying Lee
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Chen-Ying Lee (2014). The Effects of Firm Specific Factors and Macroeconomics on Profitability of Property-Liability Insurance Industry in Taiwan. Asian Economic and Financial Review, 4(5): 681-691. DOI:
This article investigates the relationship between firm specific factors and macroeconomics on profitability in Taiwanese property-liability insurance industry using the panel data over the1999 through 2009 time period. Using operating ratio and return on assets (ROA) for the two kinds of profitability indicators to measure insurers’ profitability. The results show that underwriting risk, reinsurance usage, input cost, return on investment (ROI) and financial holding group have significant influence on profitability in both operating ratio and ROA models. The insurance subsidiaries of financial holding group compared with other insurance companies, showing lower profitability. In addition, economic growth rate has significant influence on profitability in operating ratio model but insignificant influence on profitability in ROA model. The findings contribute to insurance operation in the property-liability insurance industry and should be of interest to regulators, investors and policyholders.
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  4. Chen, J.S., M.C. Chen, W.J. Liao and T.H. Chen, 2009. Influence of capital structure and operational risk on profitability of life insurance industry in Taiwan. Journal of Modeling in Management, 4(1): 7-18.
  5. Chen, T.J. and M.H. Huang, 2001. An emprical analysis of determinants of cash holdings by insurance companies in Taiwan. Insurance Monograph, 66: 1-26.
  6. Choi, B.P., 2010. The U.S. property and liability insurance industry: Firm growth, size, and age. Risk Management and Insurance Review, 13(2): 207-224.
  7. Choi, B.P. and M.A. Weiss, 2005. An empirical investigation of market structure, efficiency, and performance in property-liability insurance. Journal of Risk and Insurance, 72(4): 635-673.
  8. Colquitt, L.L. and D.W. Sommer, 2003. An exploratory analysis of insurance insurer groups. Risk Management and Insurance Review, 6(2): 83-96.
  9. Cummins, J.D. and G.P. Nini, 2002. Optimal capital utilization by financial firms: Evidence from the property-liability insurance industry. Journal of Financial Services Research, 21(1/2): 15-53.
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  11. Elango, B., Y. Ma and N. Pope, 2008. An investigation into the diversification-performance relationship in the U.S. property-liability insurance industry. Journal of Risk and Insurance, 75(3): 567-591.
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  27. Vejzagic, M. and H. Zarafat, 2014. An analysis of macroeconomic determinants of commercial banks profitability in Malaysla for period 1995-2011. Asian Economic and Financial Review, 4(1): 41-57.
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The Relationship between Block Holders and Firm Dividend Policy


Pages: 671-680
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The Relationship between Block Holders and Firm Dividend Policy

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Gholamreza Zandi --- Alireza Shahabi
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Gholamreza Zandi --- Alireza Shahabi (2014). The Relationship between Block Holders and Firm Dividend Policy. Asian Economic and Financial Review, 4(5): 671-680. DOI:
Block holders have significant impacts on the firm’s policies, especially strategies regarding the payout policy. The purpose of this study is to investigate the relationship between ownership structure and firm dividend policy considering the role of block investors in the companies listed on the Tehran Stock Exchange (TSE). We selected 37 public listed companies with state block holders and match them with almost similar companies with non-state block holders in 2012. Running a multiple regression, we found that there is a positive relationship between both types of block holders and firm’s dividend policy. These results support the tax-based hypothesis.
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Information Technology and Accounting Information System in the Nigerian Banking Industry


Pages: 655-670
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Information Technology and Accounting Information System in the Nigerian Banking Industry

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Kabiru I. Dandago --- Abdullahi Sani Rufai
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Kabiru I. Dandago --- Abdullahi Sani Rufai (2014). Information Technology and Accounting Information System in the Nigerian Banking Industry. Asian Economic and Financial Review, 4(5): 655-670. DOI:
Information technology has tremendously stimulated expansion of the banking networks and range of the offered services during recent years. The information technology has become a critical business resource because its absence could result in poor decisions and ultimately business failure. This study intends to find out the information technology influence on accounting information production in the Nigerian banking industry. Both primary and secondary data were used and Analysis of Variance (ANOVA) was used to test the hypothesis. Judgmental sampling method was used to obtain a representative sample of the population. Although for all Nigerian banks the efficiency has increased, the improvement of cost of efficiency is relatively much smaller than in the case of profit efficiency. It is also observed that accounting information technology can improve banks performance by reducing operational cost and by facilitating transactions among customers within the same or different network.  It is, therefore, concludedthat accounting information technology is relevant in simplifying issues and in the provision of quality information in the Nigerian banking industry. That explains why the banks spend a greater part of their resources on information technology and consider its application as a comparative edge in the competitive banking industry. This paper recommends that the impact of the progress in accounting information technology on banking service should not lead to a very strong increase of cost of their processing, which put in question possibility to achieve economy of scale by Nigerian banks. Also all Nigerian banks should continue to utilize and upgrade their information technology for efficient service delivery and profitability.
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The Financial Performance of Cloud Computing


Pages: 651-654
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The Financial Performance of Cloud Computing

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I-Cheng Chang --- Chuang-Chun Liu --- Bao-Ru Guo
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I-Cheng Chang --- Chuang-Chun Liu --- Bao-Ru Guo (2014). The Financial Performance of Cloud Computing. Asian Economic and Financial Review, 4(5): 651-654. DOI:
With advanced information technology, compare to the past operation, the significant difference is the companies no longer need to set up their own costly the large server, instead an external professional supplier "cloud computing" technology would be increasingly adopted nowadays. The main purpose of this study is to examine the financial performance whether would be improved after enterprises implemented cloud computing technology. According to the analysis results, we found that the cost structure and Return of Sales (ROS) of enterprises adopted cloud computing are significant improved.

  1. DeFelice, A., 2010. Cloud computing: What accountants need to know. Journal of Accountancy, 201(4): 50-54.
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The Impacts of Inflation Dynamics and Global Financial Crises on Stock Market Returns and Volatility: Evidence from Nigeria


Pages: 641-650
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The Impacts of Inflation Dynamics and Global Financial Crises on Stock Market Returns and Volatility: Evidence from Nigeria

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C.G Amaefula --- B.K Asare
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C.G Amaefula --- B.K Asare (2014). The Impacts of Inflation Dynamics and Global Financial Crises on Stock Market Returns and Volatility: Evidence from Nigeria. Asian Economic and Financial Review, 4(5): 641-650. DOI:
The paper investigates the impacts of inflation dynamics and global financial crises on Stock market returns and volatility in Nigeria.  The data sets on monthly All Shares Index Prices of NSE, and consumers’ price index (CPI) cover the period of January, 1985 to December, 2010. The GARCH (1, 1) model with multivariate regressors were adopted and the result shows that in the conditional mean equation; inflation exerts insignificant positive impact on stock market returns, inflation volatility exerts significant positive impact on stock market returns and during the global financial crises, inflation exerts significant negative effect on stock market returns. In the conditional variance equation, both inflation and its volatility have negative effects on the volatility of stock market returns, though significant for inflation and insignificant for inflation volatility. And during the global financial crises, inflation has significant positive impact on the conditional variance of stock market returns. The result implies that stock market returns can serve as a good hedge against volatile inflation, but this hedging propensity tends to be illusive if external shocks like the global financial crises affect the stock market condition negatively. However, it becomes imperative for investors to pay attention to variation of inflationary changes when predicting stock market returns and its vulnerability.

  1. Adam, A.M. and G. Tweneboah, 2008. Macroeconomic factors and stock market movement: Evidence from Ghana. MPRA Paper No. 11256 (2008), (2008), posted 17. March 2012 / 08:34. Available from http://mpra.ub.uni-muenchen.de/11256/.
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  6. Douglason, G.O., 2012. Relationship between inflation and stock market returns: Evidence from Nigeria. Journal of Applied Statistics, 1(1): 1-15.
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  8. Engle, R.F., 2004. Risk and volatility: Econometric models and financial practice. American Economic Review, 94(3): 405-420.
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Mechanisms of the Influence of Human Capital on Economic Growth: A Panel Data Analysis of the Cemac Region


Pages: 625-640
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Mechanisms of the Influence of Human Capital on Economic Growth: A Panel Data Analysis of the Cemac Region

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Ongo Nkoa B. Emmanuel --- Vukenkeng Andrew Wujung --- Seppo Martin P. Emmanuel
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Ongo Nkoa B. Emmanuel --- Vukenkeng Andrew Wujung --- Seppo Martin P. Emmanuel(2014). Mechanisms of the Influence of Human Capital on Economic Growth: A Panel Data Analysis of the Cemac Region. Asian Economic and Financial Review, 4(5): 625-640. DOI:
This paper examines the mechanisms through which human capital influences economic growth in the CEMAC region. The effect of human capital on economic growth was estimated using Two Stage Least Square (2SLS) multiple regression model for the individual countries and the method of Generalized Least Square for the whole sub region. The results show that secondary education improves human capital development. A good health system strengthens/increases the quality of capital. Knowledge acquired on the job increases the productivity of the workers and the accumulated human capital significantly impacts positively on the economic growth of the CEMAC region.

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The Effect of Corruption on Firm Growth: Evidence from Firms in Turkey


Pages: 607-624
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Hasan Ayaydın --- Pınar Hayaloglu
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Hasan Ayaydın --- Pınar Hayaloglu (2014). The Effect of Corruption on Firm Growth: Evidence from Firms in Turkey. Asian Economic and Financial Review, 4(5): 607-624. DOI:
To our knowledge, there is no micro-level study paying attention to the influence of corruption on firm growth. We aim to fill this gap in the literature. This paper therefore contributes to the limited literature on the link between corruption and firm growth in a single country, Turkey. To estimate the relationship between firm growth and corruption, we analyze a sample of 41 firms from manufacturing firms in Turkey, covering the period from 2008 to 2011 by using static panel techniques. The study find evidence that the effect of corruption level, profitability and financial leverage on the growth of the firms is significantly positive in all case, but financial risk rating is negative. We find specifically a significantly positive relation between the growth of private firms and corruption level. This leads that corruption could increase economic development, mainly because illegal practices and payments as ‘speed money’ could surpass bureaucratic delays; the acceptance of bribes in government employees could work as an incentive and increase their efficiency and because corruption is possibly the price people are forced to pay as a result of market failures. The results of this study provide managerial implications for industrial companies from Turkey: Company managers should increase profitability, should reach economies of scale, an optimal capital structure level and reach the optimal level of working capital level due to profitable firms grow faster than other companies. We also suggest that policy-makers improve in public governance quality and the leveling of the playing field for firms in all business sectors to reduce corruption level because firms tend to pay bribes and the time that is wasted on bureaucratic procedures and engage in corrupt practices in an attempt to promote their short-term growth by facilitating transactions in the bureaucratic process.

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The Impacts of the Quality of the Environment and Neighbourhood Affluence on Housing Prices: A Three-Level Hierarchical Linear Model Approach


Pages: 588-606
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Chun-Chang Lee --- Hui-Yu Lin
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Chun-Chang Lee --- Hui-Yu Lin (2014). The Impacts of the Quality of the Environment and Neighbourhood Affluence on Housing Prices: A Three-Level Hierarchical Linear Model Approach. Asian Economic and Financial Review, 4(5): 588-606. DOI:
This paper employs a three-level hierarchical linear model (HLM) to examine the impacts that the quality of the environment and neighbourhood affluence have on housing prices. The empirical results suggest that there are significant variations in the average housing price for different neighbourhoods and administrative districts. The impact of building characteristics on housing prices is subject to the moderating effects of the characteristic variables of different levels. The quality of the environment mitigates the impact of age on the decline of housing prices, and neighbourhood affluence has a positive influence with regard to the impact of age on housing prices across different levels.

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Stock Market Integration in West African Monetary Zone: A Linear and Nonlinear Cointegration Approach


Pages: 563-587
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Stock Market Integration in West African Monetary Zone: A Linear and Nonlinear Cointegration Approach

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Daniel Agyapong 
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Daniel Agyapong  (2014). Stock Market Integration in West African Monetary Zone: A Linear and Nonlinear Cointegration Approach. Asian Economic and Financial Review, 4(5): 563-587. DOI:
The capital market plays a significant role in the development of an economy and hence an important determinant of regionalisation and single currency area formation. Stock and other capital markets have been found to predict and promote economic activities. The equity markets have been found to predict recession. As the Anglophone countries in West Africa prepare to introduce a second common currency in the region, it is imperative to assess their readiness by analysing the nature of their capital markets. The paper investigated if stock markets in the zone are integrated, since it is being suggested as the basis for common currency.  Both linear and nonlinear cointegration methods were employed. The results from the linear cointegration indicated that the only active stock markets (Ghana Stock Exchange and Nigeria Stock Exchange) in the region are not integrated. However, the linear method showed a bleak sign of integration. A fractional integration method showed that whereas the Ghana Stock Exchange has infinite shock duration, the Nigeria Stock Exchange is long-lived.  In effect, the markets are more of segmented than integrated, and hence appropriate for risk diversification. It is suggested that the countries work towards harmonising the capital markets through cross listing and adopting common capital market policies.

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