GMM Method Research Articles

MOVING OBJECT DETECTION METHOD OF VIDEO SATELLITE BASED ON TRACKING CORRECTION DETECTION

Abstract. It is the focus of current research that how to realize high precision and real-time dynamic monitoring and tracking of moving targets by video satellites because of instantaneous and dynamic continuous observation of targets in a certain area by the video satellites. The existing detection and tracking methods for moving objects have target misdetection and missed detection, which reduces the accuracy of moving object detection. In this paper, a Tracking Correction Detection Correction (TCD) method is proposed to solve these problems. Firstly, the background model is established by using the improved ViBe target detection algorithm, and the moving target mask is obtained by adaptive threshold calculation. By using pyramid structure iterative algorithm, the moving object can be classified as noise or real object according to the set of detection results of different detection windows. The high-order correlation vector tracking method is used to modify the detection result of the moving target acquired in the previous frame, and finally the accurate detection result of the moving target is obtained. The comparison analysis between the frame difference (FD) method, GMM method, ViBe method and TCD method shows that the TCD method has better robustness for noise, light and background dynamic changes, and the test results of TCD method are more complete and the real-time is better. It is proved by this work that the accuracy of the target detection of TCD method has reached 85%, which has a high engineering application value.

Do immigrants’ funds affect the exchange rate?

AbstractUsing annual data over 1966–2014 from the Citizenship and Immigration statistics archives of Canada and constructing a time series for the funds brought into Canada by immigrants, we investigate whether these funds affect the exchange rate of Canada. We employ the ARDL bound testing (Pesaran and Shin, Econometrics and economic theory in the 20th century: The Ragnar Frisch centennial symposium. Cambridge, UK: Cambridge UP, 1999), dynamic OLS (Stock and Watson, Econometrica, 1993, 61, 783) approaches to cointegration. 2SLS and GMM methods are also applied to estimate the portfolio balance models of the exchange rate. Estimated results indicate a long‐run relation between immigrants’ funds and the exchange rate with immigrants' funds leading to a significant appreciation of the exchange rate in Canada. These results are robust to different estimation methods and an alternative proxy measure for the funds brought into Canada by immigrants.

The Impact of Online Media Big Data on Firm Performance: Based on Grey Relation Entropy Method

The study uses the grey relation entropy method to explore the impact of online media big data on firm performance, based on 17 randomly selected Chinese A-share listed companies during the period from 2012 to 2017. It shows that the media big data, especially the negative media coverage, is highly associated with both short-term and long-term firm performance. Then, this study employs the system GMM method to testify how negative media coverage affects firm performance. It indicates that negative media coverage may be a damage crisis for the focal firm in the short term, but a favorable chance for change in the long run. These findings not only enrich the research on the influence of online media big data but also provide some references for enterprise managers.

The affiliations and characteristics of female directors and earnings management: evidence from Turkey

PurposeThis study aims to investigate whether the presence of female directors with specific attributes has an effect on earnings quality in a patriarchal emerging country with a collectivistic culture and a substantial gender equality gap and where the majority of companies are controlled by large business groups.Design/methodology/approachThe current study uses a unique hand-collected data set that covers all non-financial companies listed on the Borsa Istanbul between the years 2009 and 2017, using the GMM method to overcome potential omitted variables and reverse causality problems.FindingsThe current study demonstrates that the presence of female directors on company boards is not associated with earnings management. Similar results are obtained for the percentage of female directors with specific attributes such as busyness, professional expertise and audit committee membership. Surprisingly, the results suggest that there is a negative (positive) relationship between the percentage of female directors that are affiliated (unaffiliated) with controlling business groups and earnings management.Originality/valueThe current study tests the relationship between the presence of female directors and earnings management in a cultural and institutional setting that is substantially different from countries where the majority of previous research on female directors has been conducted. In addition, this study puts a special emphasis on female director affiliation and provides evidence that contradicts the expectation regarding the direction of the relationship between the percentage of affiliated female directors and earnings management.

Oil Revenues and Macroeconomic Instability in Oil-Exporting Countries: A GMM Approach

In most of oil exporting countries, oil revenue is considered as one of the main drivers of the economy. These revenues, as the important source of currency, at least, enables the country import various capital goods, intermediaries and consumables and usually covers part of the government's current and development expenditures. However, oil revenues are volatile and uncertain due to the changing nature of the global oil price. This indicate that a significant part of the economy in these countries is exposed to potential instability which is supposed as an anti-growth factor. The present study seeks to examine the effect of oil revenues on inflation and real exchange rate as dominant proxies of macroeconomic stability along with economic growth in oil exporting countries using the GMM method during the 1980 to 2015 period. The results show that oil revenues have different effects on these indicators in selected countries.

Nonlinear Relationship based on Range Quadratic Loss Function

Abstract This paper uses the interval quadratic preference loss function to establish the threshold model of exchange rate volatility by Taylor series expansion, and GMM method to study the intervention behavior of exchange rate. It found that the central bank has asymmetric intervention preference for exchange rate, discontinuous and nonlinear intervention for exchange rate, and there is an intervention threshold, and the central bank has a certain degree of “fear of appreciation” trend. To some extent, asymmetric interval intervention preference has resulted in the rapid growth of China's foreign exchange reserves.

Factors Affecting Bad Debt in the Vietnam Commercial Banks

The paper examines the factors affecting bad debts of Vietnamese commercial banks in the period of 2012-2018. On the basis of theory and previous empirical studies on the factors affecting NPLs, in combination with the use of GMM method, the author has built a model of eight variables affecting NPLs. However, the research results show that there are five variables affecting bad debt. Statistically significant variables are business performance, bank size, credit growth, gross domestic product growth and inflation rate. The final estimation model is effective because the defects have been tested so there is not any deficiencies in the model. Based on the research results, the author proposes a number of related recommendations to manage and control bad debts and improve business performance of Vietnamese commercial banks.

Quantitative Appraisal Model for Infrastructure Stock Assets of Port City Based on GMM

Han, B. and Yu, J., 2020. Quantitative appraisal model for infrastructure stock assets of port city based on GMM. In: Yang, Y.; Mi, C.; Zhao, L., and Lam, S. (eds.), Global Topics and New Trends in Coastal Research: Port, Coastal and Ocean Engineering. Journal of Coastal Research, Special Issue No. 103, pp. 6–10. Coconut Creek (Florida), ISSN 0749-0208.The traditional quantitative appraisal model for infrastructure stock assets of port city has large appraisal error. To solve this problem, a quantitative appraisal model for infrastructure stock assets of port city based on GMM method is designed. First of all, the paper puts forward the main forms, basic principles, appraisal elements, basic assumptions, appraisal purposes and principles for quantitative appraisal of the infrastructure stock assets of port cities, then determines the spatial relevance of the infrastructure stock, and finally establishes the quantitative appraisal index system for the infrastructure stock assets of port cities, so as to complete the quantitative appraisal of the infrastructure stock assets of port cities based on GMM method. The experimental results show that the quantitative appraisal model based on GMM is less error than that of the traditional model.

Challenges of financial inclusion policies in Peru.

The purpose of the research is to identify the main determinants of financial inclusion in Peru at the department level (without Lima) from 2010 to 2017, aiming to analyze the challenges faced by financial inclusion policies. A two-stage GMM method was used to estimate a panel data model where the endogenous variable is Sarma’s financial inclusion index (2008). The results indicate that bank concentration is the main variable affecting financial inclusion. At the same time, although the effect of technology is positive, it is diminishing over time due to the inefficient deployment of such technology and, in many cases, a lack of knowledge on how to use it, especially in the remote areas of Peru.

Impact of selected determinants on the financial structure of the mining companies in the selected countries

Abstract Investigating the effects on the capital structure has been a widely debated topic for over a century. There are countless studies on this subject today. However, there is still a need to test more samples of companies, as the confirmation or rebuttal of assumptions depends on the industry, country, and size of the selected company. This research deals with the impact of five selected determinants – profitability, asset structure, non-debt tax shield, GDP growth rate, inflation, on the total, long-term and short-term debt of mining companies from eleven selected economies – eight countries from Central and Eastern Europe and three industry leaders from non-European countries. The analysis of data obtained from Orbis and the World Bank database covers the period 2009–2017. Correlation analysis and GMM methods are used to detect the dependencies of variables. Many countries show some links to selected types of debt. Some of these links are in line with the input assumptions, some unfortunately not.

Does Global Economic Integration affect Labour Income Share in India?

This paper examines the impact of economic integration on labour income share both at the aggregate as well as at the disaggregate industry levels of Indian economy. The paper uses the ARDL approach for the aggregate level analysis and the panel GMM method for the disaggregate level analysis. The results from both the analysis confirm that global economic integration and technological progress affect the labour income share in India. It also brings out the evidence that a stronger degree of economic integration is associated with the declining labour income share which is accompanied by rising labour productivity, employment, wage rates, and capital income. That means there is a positive correlation of economic integration with the wage rate, employment, capital earnings and labour productivity. However, it also makes an important observation that the labour share is adversely affected, as the wage rate growth lags the labour productivity growth and the compositional shift takes place due to the rising capital income. The increases in employment and wage rate are not enough to offset the adverse effects on the labour share in India.

Energy, Economic Growth, and Financial Development in ASEAN+3

This research aimed to determine the effects of financial development on the consumption of energy through the economic growth channels in ASEAN+3 in 1990 – 2013. Whether or not the financial development affected the energy consumption directly is still unclear, depending on how the efficiency of economic development takes place. The present research tried to complete the slit by evaluating the indirect effects of financial development through economic growth. The GMM method was applied to solve the endogenic problem of the simultaneous equation, resulting in an unbiased and consistent estimator. There was significant positive leverage of both the economic development and urbanization on the utilization of energy, while the cost of energy adversely affected its utilization. Also, there was a significant positive effect of financial growth in banking and share market on the utilization of energy, where the effect of the banking sector was stronger than that of the share market.JEL Classification: O13, O57, Q43How to Cite:Pramahesti, K., & Hartono, D. (2020). Energy, Economic Growth, and Financial Development in ASEAN+3. Signifikan: Jurnal Ilmu Ekonomi, Vol. 9(1), 137-152. doi: http://dx.doi.org/10.15408/sjie.v9i1.13536

CORPORATE SOCIAL RESPONSIBILITY PRACTICES AND ECONOMIC PERFORMANCE IN COLOMBIA: THE MODERATING EFFECT OF FAMILY CONTROL

The purpose of this descriptive-quantitative study was twofold. On the one hand, it seeks to determine the relationship between the implementation of CSR practices and economic performance. On the other, it seeks to identify the effect of family control on the CSR-Performance relationship. For this, we studied a sample of 55 companies listed on the stock exchange of Colombia during the period 2010-2017. The analysis was performed with multiple regression models estimated from the GMM method. Three findings are highlighted: (a) No evidence was found about a relationship between the family character and the adoption of CSR practices; (b) Evidence was found on a direct relationship between the adoption of CSR practices and economic performance; and (c) the family character does not influence the CSR-Performance relationship.

Credit Risk and Bank Stability of Vietnam Commercial Bank: A BK Approach

Through the secondary data collected from 2005 to 2019, we used the BK approach in which, Pooled OLS, FEM, REM, and GMM methods and Sobel's test are used to check the relationship between bank credit risk and bank stability of Vietnam commercial bank system. The results show that bank credit risk, profitability, and bank stability have a direct relationship and have a partial indirect relationship. The size and profitability of the previous period have a positively correlated with bank profitability, nonperforming loan, loan loss provision, non-interest income, efficiency, and bank credit growth have a negative impact on bank profitability, bank profitability has no impact on bank credit risk. Profitability and bank stability of the previous period have an impact on current bank stability. Nonperforming loans, non-interest income hurt bank stability, loan loss provision and bank stability of the previous period have a positively correlated with current bank stability.

Are there differences in the use of debt capital in enterprises of different size

The paper deals with the influence of selected determinants on the rate of external financing sources use. The reason for issuing this topic is the fact that the literature declares different opportunities for funds being drawn from the financial market by enterprises of different size. The aim of this paper is, based on the chosen determinants, to assess whether there exist differences in debt capital usage as it comes to chosen enterprises of different size in CEE countries. Emphasis is placed on the differences between medium-sized and large-sized enterprises. The analysis involves an impact of capital price, total rate of return and fixed assets ratio on debt usage expressed by debt/equity ratio. As for methodology, the panel regression by GMM method is used. The results of the analysis show the preference of the pecking order theory for large enterprises. For medium-sized enterprises, the results were not clear.

Reinsurance Demand and Liquidity Creation: A Search for Bi-Causality

We analyze the relationship between insurers’ liquidity creation and reinsurance demand. Early theoretical contributions on liquidity creation propose that financial institutions enhance economic growth by creating liquidity in the economy. Liquidity creation means financing relatively illiquid assets with relatively liquid liabilities. However, liquidity creation exposes insurers to financial risks. There is a trade-off between getting higher returns on risky investments and being able to compensate clients at a low cost when unexpected claims happen. Unexpected claims can be protected by reinsurance, which introduces a second trade-off between reinsurance demand and liquidity creation. This trade-off can be more important for insurers that have fewer diversification opportunities. Our main empirical results, from regularized GMM and ML-SME methods of estimation, show similar positive bi-causal effects between liquidity creation and reinsurance demand for small insurers (22% of insurance activity). The link between the two activities is not significant for large insurers (60% of insurance activity). We obtain mixed results for medium insurers. In all estimations, the standard GMM model is rejected.

The Impact of OFDI on the Technical Complexity of High-tech Industry Export in Home Country

This paper calculates the technical complexity of high-tech industry export in 38 countries from 1997 to 2017, discusses the mechanism of OFDI on the technical complexity of high-tech industry export in the home country, and empirically tests the impact of OFDI on the technical complexity of high-tech industry export in the home country by using the System GMM method of dynamic panel data model. The results show that OFDI can improve the technical complexity of high-tech industry export in the home country. After further analysis, it is found that OFDI can only significantly improve the technical complexity of high-tech industry exports from developing countries, but to a certain extent inhibit the developed countries. In addition, FDI, R & D investment, human capital, openness to the outside world and self owned technology can promote the export technology complexity of a country’s high-tech industry, while the impact of capital endowment on the export technology complexity of developed and developing countries’ high-tech industry is different.

The Relationship Between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control

This study investigates the effects of public debt and budget deficits on the sustainable economic development of developing countries, taking into account the role of control of corruption. The two-step GMM method was applied for unbalanced panel data of 59 developing countries from 2004 to 2015. The study found that public debt and the budget deficit had negative effects on sustainable development, while the effect of control of corruption was positive. Moreover, using interaction terms between control of corruption and public debt and budget deficit, respectively, empirical results showed that controlling corruption limited these adverse effects. Thus, if the objective is to achieve sustainable economic development, developing countries should not see raising public debt or maintaining budget deficits as a strategy for economic development. The study contributes empirical evidence to the theory of debt overhang, crowded effects, and institutional theory in the context of developing countries. The implications are also discussed in this paper.

Dynamics of bank capital ratios and risk-taking: Evidence from US commercial banks

This study aims to explore how different capital ratios influence the risk-taking of large commercial banks of the USA. The study collects the data from FDIC for commercial banks from 2003 to 2019. We use a two-step GMM method to manage the endogeneity, simultaneity, heteroscedasticity, and auto-correlations issue. The findings conclude that an increase in the risk-based capital ratios decreases the banks’ risks. Empirical findings demonstrated a significant and positive association between non-risk-based capital ratios and bank risk-taking. The findings also demonstrate that an increase in capital buffer ratios decreases the banks’ risks. The impact of capital ratios on risk-taking is heterogeneous for well and under-capitalized banks. The findings suggest that State-chartered member and non-member banks are inclined to take a higher risk than nationally chartered banks. The findings have implications for regulators to consider the State-chartered member, non-member, and nationally chartered banks while formulating the new guidelines for required capital ratios.

Islamic Finance and Economic Growth

Due to the inherent instability of the conventional financial system, the demand for Islamic finance has increased. Islamic finance is more stable because it does not rely on debt-based financing. Currently, Islamic finance is one of the fastest growing sectors of economy in the Muslim world in general and in Pakistan in particular and it plays a vital role in the real sector development. This paper investigated the impact of Islamic viz a viz conventional finance on economic growth of Pakistan. For empirical analysis, quarterly data for the period 2006Q3–2017Q4 was utilized. For Islamic finance, the study used total financing (finance plus investment) by Islamic banks, whereas credit given to the private sector by conventional banks was used as the measure of conventional finance. Using GMM method of estimation, our findings revealed that Islamic finance enhances economic growth and also fulfills some specific needs of economic agents which otherwise would have remained unfulfilled by conventional finance. Further, the study also used government spending, investment, trade openness and inflation as control variables.