Search results for: money market instruments

Authors: Uyi Kizito Ehigiamusoe

Abstract:

The paper examines the impact of money market on economic growth in Nigeria using data for the period 1980-2012. Econometrics techniques such as Ordinary Least Squares Method, Johanson’s Co-integration Test and Vector Error Correction Model were used to examine both the long-run and short-run relationship. Evidence from the study suggest that though a long-run relationship exists between money market and economic growth, but the present state of the Nigerian money market is significantly and negatively related to economic growth. The link between the money market and the real sector of the economy remains very weak. This implies that the market is not yet developed enough to produce the needed growth that will propel the Nigerian economy because of several challenges. It was therefore recommended that government should create the appropriate macroeconomic policies, legal framework and sustain the present reforms with a view to developing the market so as to promote productive activities, investments, and ultimately economic growth.

Keywords: economic growth, investments, money market, money market challenges, money market instruments

Procedia PDF Downloads 319

Authors: Piotr Prewysz-Kwinto

Abstract:

A dynamic development of financial market is accompanied by the emergence of new products on stock exchanges which give absolutely new possibilities of investing money. Currently, the most innovative financial instruments offered to investors are exchange traded products (ETP). They can be defined as financial instruments whose price depends on the value of the underlying instrument. Thus, they offer investors a possibility of making a profit that results from the change in value of the underlying instrument without having to buy it. Currently, the Warsaw Stock Exchange offers many types of ETPs. They are investment products with full or partial capital protection, products without capital protection as well as leverage products, issued on such underlying instruments as indices, sector indices, commodity indices, prices of energy commodities, precious metals, agricultural produce or prices of shares of domestic and foreign companies. This paper presents the mechanism of functioning of ETP available on the Warsaw Stock Exchange and the results of the analysis of statistical data on these financial instruments.

Keywords: exchange traded products, financial market, investment, stock exchange

Procedia PDF Downloads 307

Authors: Piotr Prewysz-Kwinto

Abstract:

The market of financial instruments with high risk is developing very dynamically in recent years and attracts more and more interest of investors. It consists essentially of two groups of instruments, i.e. derivatives and exchange traded product (ETP), and each year new types are introduced and offered to investors. The aim of this paper is to present the principles concerning financial instruments with high investment risk available on the Warsaw Stock Exchange (WSE), because they have quite complex constructions, and to evaluate the development of this market. In order to achieve this aim, statistical data from 2014-2016 was analyzed. The results confirm that the financial instruments with high investment risk available on the WSE constitute a diversified and the most numerous group of financial instruments and attract the most interest of investors. Responsible investing requires, however, a good knowledge of how they work and how they can generate profit to not expose oneself to unexpected losses.

Keywords: derivatives, exchange traded products (ETP), financial instruments, financial market, risk, stock exchange

Procedia PDF Downloads 343

Authors: Mahmoud Hassan

Abstract:

Understanding the impact of market- and non-market-based environmental policy instruments on renewable energy consumption (REC) is crucial for the design and choice of policy packages. This study aims to empirically investigate the effect of environmental policy stringency index (EPS) and its components on REC in 27 OECD countries over the period from 1990 to 2015, and then use the results to identify what the appropriate environmental policy mix should look like. By relying on the two-step system GMM estimator, we provide evidence that increasing environmental policy stringency as a whole promotes renewable energy consumption in these 27 developed economies. Moreover, policymakers are able, through the market- and non-market-based environmental policy instruments, to increase the use of renewable energy. However, not all of these instruments are effective for achieving this goal. The results indicate that R&D subsidies and trading schemes have a positive and significant impact on REC, while taxes, feed-in tariff and emission standards have not a significant effect. Furthermore, R&D subsidies are more effective than trading schemes for stimulating the use of clean energy. These findings proved to be robust across the three alternative panel techniques used.

Keywords: environmental policy stringency, renewable energy consumption, two-step system-GMM estimation, linear dynamic panel data model

Procedia PDF Downloads 151

Authors: Keith Dominic T. Li

Abstract:

The soaring prices of residential properties in Hong Kong has become a social problem that even the middle class is having dif?iculties in purchasing homes. In making policies to curb the prices, it is important to determine the factors that contribute to the property in?lation. Many researches attribute this in?lation to macroeconomic factors especially the interest rate. However, it is important to remember that Hong Kong is under a Currency Board system which makes its interest rate exogenously determined. This research aims to show the signi?icance of the money supply on Hong Kong residential property prices in post-1997 Asian Financial Crisis period. Using money supply data, macroeconomic fundamentals, and demographic variables from 2000Q1 to 2013Q2, the factors contributed to residential property price in?lation are estimated to calculate the share of each explanatory variable in disparity. It is found that the Hong Kong property market is mainly driven by investment and that the in?lation on Hong Kong residential property prices can explained by the increase in the Hang Seng Index and in the money supply M2.

Keywords: real estate, Hong Kong, property market, monetary economics, monetary policy

Procedia PDF Downloads 505

Authors: Shamil Mardi Al Islam, Zaima Ahmed

Abstract:

The aim of this article is to explore whether certain macroeconomic variables such as industrial index, inflation, broad money, exchange rate and deposit rate as a proxy for interest rate are interlinked with Dhaka stock price index (DSEX index) precisely after the introduction of new index by Dhaka Stock Exchange (DSE) since January 2013. Bangladesh stock market has experienced rapid growth since its inception. It might not be a very well-developed capital market as compared to its neighboring counterparts but has been a strong avenue for investment and resource mobilization. The data set considered consists of monthly observations, for a period of four years from January 2013 to June 2018. Findings from cointegration analysis suggest that DSEX and macroeconomic variables have a significant long-run relationship. VAR decomposition based on VAR estimated indicates that money supply explains a significant portion of variation of stock index whereas, inflation is found to have the least impact. Impact of industrial index is found to have a low impact compared to the exchange rate and deposit rate. Policies should there aim to increase industrial production in order to enhance stock market performance. Further reasonable money supply should be ensured by authorities to stimulate stock market performance.

Keywords: deposit rate, DSEX, industrial index, VAR

Procedia PDF Downloads 118

Authors: A. Bolaji Adesoye, Alimi Olorunfemi

Abstract:

This paper examines the impact of small and medium-scale enterprises (SMEs) credit financing and financial market development and their shocks on the output growth of Nigeria. The study estimated a VAR model for Nigeria using 1970-2013 annual data series. Unit root tests and cointegration are carried out. The study also explores IRFs and FEVDs in a system that includes output, commercial bank loan to SMEs, domestic credit to private sector by banks, money supply, lending rate and investment. Findings suggest that shocks in commercial bank credit to SMEs has a major impact on the output changes of Nigeria. Money supply shocks also have a sizeable impact on output growth variations amidst other financial instruments. Lastly, neutrality of investment does not hold in Nigeria as it also has impact on output fluctuations.

Keywords: SMEs financing, financial development, investment, output, Nigeria

Procedia PDF Downloads 376

Authors: Siphat Lim

Abstract:

The result of the study revealed that the interaction between money, exchange rate, and price level was mainly derived from the policy-induced by the central bank. Furthermore, the variation of inflation was explained weakly by exchange rate and money supply. In the period of twelfth-month, the variation of inflation which caused by exchange rate and money supply were not more than 1.78 percent and 9.77 percent, respectively.

Keywords: money supply, exchange rate, price level, VAR model

Procedia PDF Downloads 242

Authors: Dinesh Sivaguru, Kamal Thilakasiri

Abstract:

Preventing money laundering and terrorist financing is a major national and international problem today. Several attempts have been made to prevent money laundering by national and international dimension. These are often counteracted by the multi dynamic nature of the crimes. However, launders are often to use remittance systems to clean their ill-gotten money. This study presents the role of domestic financial institutions and the effective practices and actions should implement within domestic financial institutions to control and prevent financial crimes. This thesis highlights the progress that is required to prevent money laundering and terrorist financing, further it is an original contribution to the knowledge in an under researched field in Sri Lanka.

Keywords: money laundering, terrorists financing, financial institutions, regulatory bodies

Procedia PDF Downloads 178

Authors: Haytham Yassine

Abstract:

This article mainly aims to detect and understand how money laundering activities are executed by transport of cash, identifying the underlying factors and separating legitimate from illegitimate usage of cash and how it is being used. This research provides academics with additional literature and provides bank supervisors and practitioners with a better understanding of sources and uses of cash in criminal activities and how cash is used in the laundering mechanism. Data are gathered through survey in the Middle East and North Africa region and review of the available research. The results of the analysis will help distinguish the factors affecting preference for cash rather other payment instruments in the region, identify what causes the tendency to launder illegal proceeds through cash transportation and how illegal cash is being laundered and moved. On the other hand, this paper sheds the light on major cash generating criminal activities, its sources and main destinations.

Keywords: illegitimate activities, cash, money laundering, terrorism financing

Procedia PDF Downloads 111

Authors: Rakiya Abba

Abstract:

This paper investigates the effect of the money supply, exchange and interest rate on economic growth in Nigeria through the application of Augmented Dickey-Fuller technique in testing the unit root property of the series and Granger causality test of causation between GDP, money supply, the exchange, and interest rate. The results of unit root suggest that all the variables in the model are stationary at 1, 5 and 10 percent level of significance, and the results of Causality suggest that money supply and exchange granger cause IR, the result further reveals two – way causation existed between M2 and EXR while IR granger cause GDP the null hypothesis is rejected and GDP does not granger cause IR as indicated by their probability values of 0.4805 and confirmed by F-statistics values of 0.75483. The results revealed that M2 and EXR do not granger causes GDP, the null hypothesis is accepted at 75percent 18percent respectively as indicated by their probability values of 0.7472 and 0.1830 respectively; also, GDP does not granger cause M2 and EXR. The Johansen cointegration result indicates that despite GDP does not granger cause M2, IR, and EXR, but there existed 1 cointegrating equation, implying the existence of long-run relationship between GDP, M2 IR, and EXR. A major policy implication of this result is that economic growth is function of and money supply and exchange rate, effective monetary policies should direct on manipulating instruments and importance should be placed on justification for adopting a particular policy be rationalized in order to increase growth in economy

Keywords: economic growth, money supply, interest rate, exchange rate, causality

Procedia PDF Downloads 237

Authors: Mohamed Saad, Huda Ismail

Abstract:

The purpose of this research is to examine the impact of cryptocurrency classification on money laundering crimes and to analyze how the preferences of criminals differ according to the type of digital currency used. Specifically, we aim to explore the roles of stablecoins, utility coins, and privacy tokens in facilitating or hindering money laundering activities and to identify the key factors that influence the choices of criminals in using these cryptocurrencies. To achieve our research objectives, we used a dataset for the most highly traded cryptocurrencies (32 currencies) that were published on the coin market cap for 2022. In addition to conducting a comprehensive review of the existing literature on cryptocurrency and money laundering, with a focus on stablecoins, utility coins, and privacy tokens, Furthermore, we conducted several Multivariate analyses. Our study reveals that the classification of cryptocurrency plays a significant role in money laundering activities, as criminals tend to prefer certain types of digital currencies over others, depending on their specific needs and goals. Specifically, we found that stablecoins are more commonly used in money laundering due to their relatively stable value and low volatility, which makes them less risky to hold and transfer. Utility coins, on the other hand, are less frequently used in money laundering due to their lack of anonymity and limited liquidity. Finally, privacy tokens, such as Monero and Zcash, are increasingly becoming a preferred choice among criminals due to their high degree of privacy and untraceability. In summary, our study highlights the importance of understanding the nuances of cryptocurrency classification in the context of money laundering and provides insights into the preferences of criminals in using digital currencies for illegal activities. Based on our findings, our recommendation to the policymakers is to address the potential misuse of cryptocurrencies for money laundering. By implementing measures to regulate stable coins, strengthening cross-border cooperation, fostering public-private partnerships, and increasing cooperation, policymakers can help prevent and detect money laundering activities involving digital currencies.

Keywords: crime, cryptocurrency, money laundering, tokens.

Procedia PDF Downloads 56

Authors: Mario Zgela

Abstract:

Application of Benford’s Law is very rarely covered in the field of stock market analysis, especially in percentage change of stock market indices. Deutscher Aktien IndeX (DAX) is very important stock market index of Frankfurt Deutsche Börse which serves as underlying basis for large number of financial instruments. It is calculated for selected 30 German blue chips stocks. In this paper, Benford's Law first digit test is applied on 10 year DAX daily percentage changes in order to check compliance. Deviations of 10 year DAX percentage changes set as well as distortions of certain subsets from Benford's Law distribution are detected. It is possible that deviations are the outcome of speculations; and psychological influence should not be eliminated.

Keywords: Benford's Law, DAX, index percentage changes, stock market

Procedia PDF Downloads 263

Authors: Flavio Gazzani

Abstract:

Nitrogen is an important agricultural input that is critical for the production. However, the introduction of large amounts of nitrogen into the environment has a number of undesirable impacts such as: the loss of biodiversity, eutrophication of waters and soils, drinking water pollution, acidification, greenhouse gas emissions, human health risks. It is a challenge to sustain or increase food production and at the same time reduce losses of reactive nitrogen to the environment, but there are many potential benefits associated with improving nitrogen use efficiency. Reducing nutrient losses from agriculture is crucial to the successful implementation of agricultural policy. Traditional regulatory instruments applied to implement environmental policies to reduce environmental impacts from nitrogen fertilizers, despite some successes, failed to address many environmental challenges and imposed high costs on the society to achieve environmental quality objectives. As a result, economic instruments started to be recognized for their flexibility and cost-effectiveness. The objective of the research project is to analyze the potential for increased use of market-based instruments in nitrogen control policy. The report reviews existing knowledge, bringing different studies together to assess the global nitrogen situation and the most relevant environmental management policy that aims to reduce pollution in a sustainable way without affect negatively agriculture production and food price. This analysis provides some guidance on how different market based instruments might be orchestrated in an overall policy framework to the development and assessment of sustainable nitrogen management from the economics, environmental and food security point of view.

Keywords: nitrogen emissions, chemical fertilizers, eutrophication, non-point of source pollution, dairy farm

Procedia PDF Downloads 303

Authors: Graham Brooks, Belaisha Bin Belaisha, Hakkyong Kim

Abstract:

The problem of preventing and/or reducing corruption is a major international problem. This paper, however, specifically focuses on how organisations in Dubai are tackling the problem of money laundering. This research establishes that Dubai has a clear international anti-money laundering framework but suffers from some national weaknesses such as diverse anti-money laundering working practice, lack of communication, sharing information and disparate organisational vested self-interest.

Keywords: corruption, governance, money laundering, prevention, strategies

Procedia PDF Downloads 245

Authors: Mahfoud Djebbar

Abstract:

The past two decades or so have witnessed phenomenal growth of the Islamic financial services industry. The whole industry has been thriving at about 15 percent per annum. This development entails the Islamic financial engineering, IFE, to some kind of crossroads, lagging behind its conventional counterpart. Therefore, IFE, and particularly traded products development, and in order to achieve its goals, two approaches are available, i.e., replicating engineering and innovative engineering. We also try to emphasis the innovative strategy since it guards the Islamic identity of different financial products and processes, and thereby, improves the creativity in the Islamic financial industry. The attempt also centers on sukukization (Islamic securitization), innovation, liquidity management, and risk management and hedging in the Islamic financial system. Finally, the challenges facing IFE are also addressed.

Keywords: islamic financial engineering, hedging and risk management, innovation, securitization, money market instruments, islamic capital markets

Procedia PDF Downloads 523

Authors: Musa Mayanja Lwanga, Annet Adong

Abstract:

This study provides a micro perspective on the impact of mobile money services on individual’s saving behavior using the 2013 Uganda FinScope data. Results show that although saving through the mobile phone is not a common practice in Uganda, being a registered mobile money user increases the likelihood to save with mobile money. Saving using mobile is more prevalent in urban areas and in Kampala and Central region compared to other regions. This can be explained by: first, rural dwellers tend on average to have lower incomes and thus have lower to saving compared to the urban counterpart. Similarly, residents of Kampala tend to have higher incomes and thus high savings compared to residents of other regions. Secondly, poor infrastructure in rural areas in terms of lack of electricity and poor telecommunication network coverage may limit the use of mobile phones and consequently the use of mobile money as a saving mechanism. Overall, the use of mobile money as a saving mechanism is still very low and this could be partly explained by limitations in the legislation that does not incorporate mobile finance services into mobile money. The absence of interest payments on mobile money savings may act as a disincentive to save through this mechanism. Given the emerging mobile banking services, there is a need to create more awareness and the need for enhanced synergies between telecom companies and commercial banks.

Keywords: financial inclusion, mobile money, savings, Uganda

Procedia PDF Downloads 259

Authors: Covadonga Mallada Fernández

Abstract:

Economic development and globalization of international markets have created a favourable atmosphere for the emergence of new forms of crime such as money laundering or financing of terrorism, which may contribute to destabilized and damage economic systems. In particular, money laundering have acquired great importance since the 11S attacks, what has caused on the one hand, the establishment and development of preventive measures and, on the other hand, a progressive hardening of penal measures. Since then, the regulations imposed to fight against money laundering have been viewed as key components also in the fight against terrorist financing. Terrorism, at the beginning, was a “national” crime connected with internal problems of the State (for instance the RAF in Germany or ETA in Spain) but in the last 20 years has started to be an international problem that is connected with the defence and security of the States. Therefore, the new strategic concept for the defense and security of NATO has a comprehensive list of security threats to the Alliance, such as terrorism, international instability, money laundering or attacks on cyberspace, among others. With this new concept, money laundering and terrorism has become a priority in the national defense. In this work we will analyze the methods to combat these new threats to the national security. We will study the preventive legislations to combat money laundering and financing of terrorism, the UIF that exchange information between States, and the hawala-Banking.

Keywords: control of financial flows, money laundering, terrorism, financing of terrorism

Procedia PDF Downloads 411

Authors: Khan Sarfaraz, Mohammad Ali Mia

Abstract:

Money laundering and other financial crime have become a global threat in recent years, impacting both developed and poor countries. In developing countries like Bangladesh, it is more difficult to combat financial crime than in developing countries because of the inadequate regulatory environment and vulnerable financial system. Bangladesh's central bank issues guidelines to facilitate the implementation of the prevention of the money laundering act. According to the guideline of Bangladesh Bank, all financial institution has to develop anti-money laundering policy to ensure the safety and soundness of their institutions. The paper aims to focus on the role of authorized agencies in combating financial crime. In this paper, the latest trends in financial crimes have been discussed from global and Asian perspectives. The preventive measures for money laundering and other financial crimes have been discussed elaborately. So far, financial crime is a sophisticated and dynamic crime, and criminals continuously took innovative processes to use the financial system to launder money. The study will take a step in pointing out new techniques, effects and challenges of financial crime in Bangladesh.

Keywords: financial crime, illegal money transfer, online gambling, money laundering, authorized agencies

Procedia PDF Downloads 50

Authors: Yi-Hsien Wang, Fu-Ju Yang, Hwa-Rong Shen, Rui-Lin Tseng

Abstract:

The business is notably related to the market risk according to the increase of liberalization of financial markets. Hence, the company usually utilized high financial leverage of derivatives to hedge the risk. When the company choose different hedging instruments to face a variety of exchange rate risk, we employ the Multinomial Logistic-AHP to analyze the impact of various derivatives. Hence, the research summarized the literature on relevant factors affecting managers selected exchange rate hedging instruments, using Multinomial Logistic Model and and further integrate AHP. Using Experts’ Questionnaires can test multi-level selection and hedging effect of different hedging instruments in order to calculate the hedging instruments and the multi-level factors of weights to understand the gap between the empirical results and practical operation. Finally, the Multinomial Logistic-AHP Model will sort the weights to analyze. The research findings can be a basis reference for investors in decision-making.

Keywords: exchange rate risk, derivatives, hedge, multinomial logistic-AHP

Procedia PDF Downloads 408

Authors: Husnil Khatimah, Fairol Halim

Abstract:

This research examines the moderating impact of security on intention to use e-money that adapted from some variables of the TAM (Technology Acceptance Model) and TPB (Theory of Planned Behavior). This study will use security as moderating variable and finds these relationship depends on customer intention to use e-money as payment tools. The conceptual framework of e-money transactions was reviewed to understand behavioral intention of consumers from perceived usefulness, perceived ease of use, perceived behavioral control and security. Quantitative method will be utilized as sources of data collection. A total of one thousand respondents will be selected using quota sampling method in Medan, Indonesia. Descriptive analysis and Multiple Regression analysis will be conducted to analyze the data. The article ended with suggestion for future studies.

Keywords: e-money transaction, TAM & TPB, moderating variable, behavioral intention, conceptual paper

Procedia PDF Downloads 422

Authors: Steven R. Lawyer, Tereza Prihodova, Katerina Prihodova

Abstract:

Delay discounting (DD) is one of the most frequently used behavioral-economic measures of impulsive choice, but there are few cross-cultural comparisons of discounting, and to the best of our knowledge, none compare patterns of DD across different commodities or compare real and hypothetical rewards across cultures. The purpose of this study was to compare patterns of DD for both real and hypothetical money and cigarettes among participants in the USA and the Czech Republic. Adult smokers from the United States and the Czech Republic completed standard measures of DD for hypothetical and real money (~$10USD) and cigarettes (1 pack, or 20 cigarettes). Contrary to data from the USA sample, Czech Republic participants discounted the value of real money steeper than hypothetical money, though this could be related to the relatively poor fit of the hyperbolic decay function to DD for hypothetical money in the Czech sample. These findings suggest that there might be cultural differences in delay discounting that warrant further attention.

Keywords: delay discounting, temporal discounting, cigarette smoking, real rewards, hypothetical rewards

Procedia PDF Downloads 153

Authors: M. Sai Veerendra

Abstract:

Today, money laundering (ML) poses a serious threat not only to financial institutions but also to the nation. This criminal activity is becoming more and more sophisticated and seems to have moved from the cliché of drug trafficking to financing terrorism and surely not forgetting personal gain. Most of the financial institutions internationally have been implementing anti-money laundering solutions (AML) to fight investment fraud activities. However, traditional investigative techniques consume numerous man-hours. Recently, data mining approaches have been developed and are considered as well-suited techniques for detecting ML activities. Within the scope of a collaboration project on developing a new data mining solution for AML Units in an international investment bank in Ireland, we survey recent data mining approaches for AML. In this paper, we present not only these approaches but also give an overview on the important factors in building data mining solutions for AML activities.

Keywords: data mining, clustering, money laundering, anti-money laundering solutions

Procedia PDF Downloads 509

Authors: Björn de Kruijf, Arjen Edzes, Sietske Waslander

Abstract:

In an ever-quickly changing society, lifelong development is seen as a solution to labor market problems by politicians and policymakers. In this paper, we investigate how policy instruments are used to increase participation in lifelong development and on which behavioral principles policy is based. Digitization, automation, and an aging population change society and the labor market accordingly. Skills that were once most sought after in the workforce can become abundantly present. For people to remain relevant in the working population, they need to continue adapting new skills useful in the current labor market. Many reports have been written that focus on the role of lifelong development in this changing society and how lifelong development can help keep people adapt and stay relevant. Inspired by these reports, governments have implemented a broad range of policies to support participation in lifelong development. The question we ask ourselves is how government policies promote participation in lifelong development. This stems from a complex interplay of policy instruments and learning. Regulation, economic and soft instruments can be combined to promote lifelong development, and different types of education further complex policies on lifelong development. Literature suggests that different stages in people’s lives might warrant different methods of learning. Governments could anticipate this in their policies. In order to influence people’s behavior, the government can tap into a broad range of sociological, psychological, and (behavioral) economic principles. The traditional economic assumption that behavior is rational is known to be only partially true, and the government can use many biases in human behavior to stimulate participation in lifelong development. In this paper, we also try to find which biases the government taps into to promote participation if they tap into any of these biases. The goal of this paper is to analyze government policies intended to promote participation in lifelong development. To do this, we develop a framework to analyze the policies on lifelong development. We specifically incorporate the role of learning and the behavioral principles underlying policy instruments in the framework. We apply this framework to the case of the Netherlands, where we examine a set of policy documents. We single out the policies the government has put in place and how they are vertically and horizontally related. Afterward, we apply the framework and classify the individual policies by policy instrument and by type of learning. We find that the Dutch government focuses on formal and non-formal learning in their policy instruments. However, the literature suggests that learning at a later age is mainly done in an informal manner through experiences.

Keywords: learning, lifelong development, policy analysis, policy instruments

Procedia PDF Downloads 50

Authors: Chinelle van der Westhuizen

Abstract:

The introduction of cryptocurrencies as an alternative payment system have placed governments in a challenging position in relation to the regulatory status of cryptocurrencies and the money laundering activities associated with it. In April 2018, the Australian government amended its Anti-Money Laundering laws to regulate digital currency exchanges in an attempt to regulate money laundering activities and the introduction of ‘know-your-customer’ policies within the digital currency sector. Part one of this paper explores the use of cryptocurrencies for money laundering purposes and its significance to money launderers. Part two studies the efficacy of the current Australian Anti-Money Laundering laws and whether more can be done on a regulatory level. This paper will, therefore, highlight recent court decisions and legislation in terms of money laundering activities within these alternative payment systems in Australia and the United Kingdom. Part three of the paper will further analyze recent case studies by the Australian Transaction Reports and Analysis Centre and the Office for Professional Body Anti-Money Laundering Supervision in the United Kingdom as the regulatory bodies for money laundering activities. The case studies and research will explore the legal disputes and future regulation concerning the use of cryptocurrencies and money laundering on a national as well as international level. This paper intends to highlight that although cryptocurrency is viewed as an innovative global phenomenon and an alternative method of payment, there are a number of legal issues associated with its use that indicate the need for regulatory reform. It is recommended in this paper that the Financial Action Task Force, International Monetary Fund as well as concerned governments have ongoing discussions on these regulatory issues and how to address it appropriately, whether through legislation or universal guidelines. Therefore, the conclusion of this paper will emphasize the benefits of a regulatory regime for money laundering activities within the cryptocurrency space and that the lack of such a regime may be detrimental to countries.

Keywords: cryptocurrency, know-your-customer policy, money laundering, regulation

Procedia PDF Downloads 123

Authors: Byomakesh Debata, Jitendra Mahakud

Abstract:

The recent financial crisis has been characterized by massive monetary policy interventions by the Central bank, and it has amplified the importance of liquidity for the stability of the stock market. This paper empirically elucidates the actual impact of monetary policy interventions on stock market liquidity covering all National Stock Exchange (NSE) Stocks, which have been traded continuously from 2002 to 2015. The present study employs a multivariate VAR model along with VAR-granger causality test, impulse response functions, block exogeneity test, and variance decomposition to analyze the direction as well as the magnitude of the relationship between monetary policy and market liquidity. Our analysis posits a unidirectional relationship between monetary policy (call money rate, base money growth rate) and aggregate market liquidity (traded value, turnover ratio, Amihud illiquidity ratio, turnover price impact, high-low spread). The impulse response function analysis clearly depicts the influence of monetary policy on stock liquidity for every unit innovation in monetary policy variables. Our results suggest that an expansionary monetary policy increases aggregate stock market liquidity and the reverse is documented during the tightening of monetary policy. To ascertain whether our findings are consistent across all periods, we divided the period of study as pre-crisis (2002 to 2007) and post-crisis period (2007-2015) and ran the same set of models. Interestingly, all liquidity variables are highly significant in the post-crisis period. However, the pre-crisis period has witnessed a moderate predictability of monetary policy. To check the robustness of our results we ran the same set of VAR models with different monetary policy variables and found the similar results. Unlike previous studies, we found most of the liquidity variables are significant throughout the sample period. This reveals the predictability of monetary policy on aggregate market liquidity. This study contributes to the existing body of literature by documenting a strong predictability of monetary policy on stock liquidity in an emerging economy with an order driven market making system like India. Most of the previous studies have been carried out in developing economies with quote driven or hybrid market making system and their results are ambiguous across different periods. From an eclectic sense, this study may be considered as a baseline study to further find out the macroeconomic determinants of liquidity of stocks at individual as well as aggregate level.

Keywords: market liquidity, monetary policy, order driven market, VAR, vector autoregressive model

Procedia PDF Downloads 344

Authors: Ahmad Hashim, Zarizi Ab Rahman

Abstract:

Measurement of body composition via a field method has the most popular instruments which are used to estimate the percentage of body fat. Among the instruments used are the Body Mass Index, Bio Impedance Analysis and Skinfold Test. All three of these instruments do not involve high costs, do not require high technical skills, are mobile, save time, and are suitable for use in large populations. Because all three instruments can estimate the percentage of body fat, but it is important to identify the most appropriate instruments and have high reliability. Hence, this study was conducted to determine the reliability and convergent validity of the instruments. A total of 40 students, males and females aged between 13 and 14 years participated in this study. The study found that the test retest and Pearson correlation coefficient of reliability for the three instruments is very high, r = .99. While the inter class reliability also are at high level with r = .99 for Body Mass Index and Bio Impedance Analysis, r = .96 for Skin fold test. Intra class reliability coefficient for these three instruments is too high for Body Mass Index r = .99, Bio Impedance Analysis r = .97, and Skin fold Test r = .90. However, Standard Error of Measurement value for all three instruments indicates the Body Mass Index is the most appropriate instrument with a mean value of .000672 compared with other instruments. The findings show that the Body Mass Index is an instrument which is the most accurate and reliable in estimating body fat percentage for the population studied.

Keywords: reliability, validity, body mass index, bio impedance analysis and skinfold test

Procedia PDF Downloads 303

Authors: Sonal Purohit, Animesh Dubey

Abstract:

Corporate governance deals with the entire network of formal and informal relationship with the management of the company and company’s stakeholders including employees, customers, creditors, local communities, and society in general. The recent financial crisis was truly a global crisis in its nature and effects. The Indian financial markets were not immune to this global financial crisis. It is believed that corporate governance also had a major role to play in staggering the effect of this crisis. The objective of this paper is to examine the failure of prevailing corporate governance practice in India during financial crisis. Lack of appropriate implementation of the corporate government norms was a reason behind the phenomenon of money being pulled-out by FIIs, which constitute major investors and influencers of the Indian financial market.

Keywords: corporate governance, FII, financial market, financial crisis

Procedia PDF Downloads 446

Authors: B. Kishore Kumar, Rakesh Pogula, T. Kishore Kumar

Abstract:

The steepness of an audio signal which is produced by the musical instruments, specifically percussive instruments is the perception of how high tone or low tone which can be considered as a frequency closely related to the fundamental frequency. This paper presents a novel method for silence removal and segmentation of music signals produced by the percussive instruments and the performance of proposed method is studied with the help of MATLAB simulations. This method is based on two simple features, namely the signal energy and the spectral centroid. As long as the feature sequences are extracted, a simple thresholding criterion is applied in order to remove the silence areas in the sound signal. The simulations were carried on various instruments like drum, flute and guitar and results of the proposed method were analyzed.

Keywords: percussive instruments, spectral energy, spectral centroid, silence removal

Procedia PDF Downloads 370

Authors: Mahmoud Rufai Mahmoud

Abstract:

A look at existing literature on sales force motivation reveals lack of consensus on the role monetary rewards play in motivating salespeople. In view of the apparent contradiction inherent in the literature, it follows perhaps, chat sales managers are faced with the dilemma of what role to assign to monetary incentives in the scheme of motivating salespeople. This study investigated the perception of industrial salespeople on the role of money as a motivator. The result shows that salespeople believe that money is an important motivator whose power of motivation is influenced by a complex function of economic, social and psychological variables. Based on the findings, if is recommended that managers need different types of rewards to achieve a given level of motivation.  

Keywords: motivation, salespeople, money, Nigeria

Procedia PDF Downloads 307