Search results

The paper aims to revisit the topic of relative performance evaluation (RPE) of top management using a large panel of community banks.

The empirical tests for RPE utilized a two‐stage approach in a unique dataset of community banks executive turnover over a ten‐year period. This allowed the authors to better estimate the benchmark performance relative to which bank executives should be evaluated under RPE. Moreover, bank regulatory evaluations allowed the authors to control for the impact of poor governance.

The paper shows that penalizing executives for poor performance arising from economic downturns is not necessarily inconsistent with the theory. The empirical results indicate that weak downturn‐linked performance is strongly related to increased executive turnover. Furthermore, this relationship is more pronounced in better‐governed banks, which are more likely to engage in value‐enhancing disciplinary actions.

The analysis suggests that executive dismissals during adverse economic conditions are not necessarily a result of bad luck; rather, the analysis implies that bad times are informative about management quality.

The main practical implication is that both relative and absolute performance should be incorporated in the incentive structure of bank executives.

The paper shows that the assumptions used in prior RPE studies may not be applicable to top executives which could explain the inconsistency between the theory and the empirical evidence. Further, the finding that better governed firms are more likely to penalize management for bad exogenously driven performance is unique and strengthens the case that disciplinary actions amid adverse economic times may not be due to bad luck.

The purpose of this paper is to provide an overview of the major provisions of the Dodd‐Frank Wall Street Reform and Consumer Protection Act passed by the US Congress and signed into law by President Obama on July 21, 2010.

This does not offer any empirical analysis of the new law given that it has just been adopted. The paper does provide discussion of the major provisions with some commentary on the arguments for an against each provision.

The new law represents the most sweeping changes in financial regulation and supervision in the USA since the Great Depression. The role of the Federal Government is greatly expanded in almost all aspects of the financial sector of the economy and will affect consumers, investors, and managers of financial service firms. Many feel that the effect of the law will be to adversely affect the competitive environment while others feel the additional regulation is necessary to prevent another financial crisis.

As the provisions of this law become more clear, much research will be needed to assess the true economic impact of the law and whether it is indeed providing the additional safeguards against a financial crisis.

This review of the new law offers a concise discussion of the major provisions of the recently passed law. This review is of value to those seeking an introduction to the law and its provisions and implications.

The purpose of this study is designed to achieve the learning process in producing studies involving economic issues and scenarios in business management in Malaysia. In addition, this study will provide exposure to the integration of managerial skills by using both microeconomics and macroeconomics concepts and theories to aid decision-making in a business environment.

The research method comprised qualitative methodology of literature review, case study and quantitative methodology of multiple linear regression (MLR). In this case, seven microeconomics and macroeconomics factors which are believed to significantly affect house price index (HPI) are taken into consideration which includes gross domestic product, consumer price index (CPI), government tax and subsidy on housing, overnight policy rate, unemployment rate (UNEMP), the median income (INC) and cost of production index.

This research has resulted in three significant factors affecting HPI from MLR, which include CPI, UNEMP and INC where the increase of these factors will cause a high increment of HPI. The other four factors are not significant.

Malaysia has been facing the stagnancy in house market these recent years due to issues such as massive oversupply, impacting Malaysia’s economy specifically focusing on domestic direct investment. To avoid oversupply issues, the vitality of future house demand and pricing forecast should be comprehended by involved bodies for more effective planning for the house development industry. To make a better and bigger impact, this research is intended to analyse the microeconomic and macroeconomic factors affecting the HPI to better understand the significance of each of these factors to the changes of HPI to resolve these economic issues.

The purpose of this chapter is to develop practical recommendations for monitoring and controlling the implementation of the optimization model of digital economy in modern Russia.

The authors use the methods of induction, deduction, synthesis, systemic and problem analysis, and formalization.

The authors develop and present recommendations for the establishment of planned values of the indicators that characterize digital economy in Russia until 2025, according to the treatment of factual values of these indicators, and for the correction of measures for regulating the process of digital economy’s formation depending on the values of these indicators. The practical recommendations offered for monitoring and controlling the implementation of the optimization model of digital economy allow creating a comprehensive and detailed national strategy and implementing it in the economic practice of modern Russia. The algorithm presented for this monitoring reflects a general logic involved in this process and opens possibilities for the manifestation of its flexibility and adaptation to each specific situation.

The developed algorithm of monitoring and control regarding the implementation of the optimization model of digital economy in modern Russia and the offered planned values of the indicators that characterize digital economy in Russia until 2025 are recommended for usage during development and implementation of the national strategy for digital economy’s formation in the Russian economic system.