Asset Position Research Articles

Heterogeneous beliefs and short selling taxes: A note

Short selling is widespread in financial markets but regulators can ban short positions. The intermediate policy of taxing short sellers has been studied in an asset pricing model with evolutionary competition of two belief types (Anufriev and Tuinstra, 2013). We extend this approach to an arbitrary number of belief types H, giving 3H−2H cases to check each period in the worst-case scenario. We provide analytic expressions for asset prices along with conditions on beliefs (optimism) that determine which types take long, short or zero asset positions at the market-clearing price. We use these results to construct a fast solution algorithm (quadratic in H) which can solve models with hundreds or thousands of types in a matter of seconds. A numerical example with a short-selling tax and many heterogeneous beliefs in evolutionary competition shows that price dynamics can differ substantially relative to the benchmark of few types.

Exploring counter-cyclical monetary policy in a small open economy using the portfolio balance approach

Whether or not the money supply is endogenously determined in response to demand variations has been the subject of recent debates. Regardless of the answer to this question, central banks can and do react to cyclical fluctuations, and their responses, in turn, affect the balance of payments and the foreign asset position. We explore the feasibility of a counter-cyclical monetary policy rule in a small open-economy portfolio balance set-up where assets are imperfect substitutes, capacity utilization endogenously adjusts in a neo-Kaleckian manner to clear the goods market, the exchange rate is flexible, and prices are fixed. This set-up, under some non-restrictive conditions, generates a stable steady-state solution, suggesting that a monetary policy based on a counter-cyclical interest-rate rule is a viable option for macroeconomic stabilization.

Kapabilitas Dinamik Pada Akselerasi Produksi Precast Girder Tipe- U pada Proyek LRT Jabodebek

LRT Jabodebek as the first LRT infrastructure project in Indonesia has provided lessons on the implementation of dynamic capabilities on manufacturing aspects for the construction industry. In order to meet the requirements 2900 units of U-Shape Girder, production under normal conditions is expected to be completed by 2020. The acceleration of completion led to a significant increase in project requirements, accelerated completion of construction led to production shortages. Meeting the need for acceleration requires factories to be able to increase their production capacity by using steam curing methods. This case study uses a qualitative approach and focuses on dynamic capabilities in the production process. As a role model of application of manufacturing dynamic capability, the project has demonstrated the role of technology in increasing productivity. The integration of methods, asset positioning, and management processes are the most dominant productivity factors in accelerating the production of U-Shape precast girder. Optimum production performance can be achieved by integrating factory roles, project sites and management supported by adequate resources and staff experience

The Position of The Underlying Asset System in Musyarakah Mutanaqisah (MMq) Contract in Islamic Banking

This research aims to analyze the substance of related jurisprudence underlying asset in islamic economic law, analyzing the position of the system underlying asset in the financing agreement musharakah mutanaqisah (mmq) in the perspective of islamic economic law, and analyzing the application of the system underlying assets in the agreement musharakah mutanaqisah on sharia banking. This type of research is an empirical research type. Data is qualified as primary data and secondary data. Primary data was obtained through interviews and secondary data was obtained through literature study. The data collected was then processed using a qualitative analysis approach. The research results show that: 1) Underlying Asset position is based on the substance of fiqh as the basis for cooperation in an MMq contract, 2) Position Underlying Asset in the Musyarakah Mutanaqisah Agreement it can be categorized as the basis for cooperation in an MMq contract. In Islamic economic law, regarding the issue of musyarakah objects or MMQ objects being used as collateral, Islam prohibits goods used as transaction objects from becoming collateral/guarantee for the implementation of a mutual agreement, when the rental object has not beentangible when the contract is made, 3) The application of collateral in sharia banking is absolutely unavoidable. Requests for guarantees by banks from recipients of financing facilities are not only intended to ensure the return of the capital borrowed, but to ensure that recipients of financing facilities actually carry out everything that has been agreed upon in the contract, including Underlying Assets as a basis in the issuance of MMq contracts.

A theory of net capital flows over the global financial cycle

We develop a theory to account for the relationship between global asset price changes and net capital flows. We show empirically that countries that have a net debt of safe assets experience a rise in net outflows of safe assets (i.e. pay off safe asset debt) when global asset prices fall. This is accomplished through a rise in total net outflows (an increase in net savings) and a drop in net outflows of risky assets (the net sale of foreign risky assets). We develop a multi-country portfolio choice model that can account for these facts. The theory relies on cross-country heterogeneity in the share of an investor’s portfolio invested in risky assets. A global drop in risky asset prices changes relative wealth across countries due to this heterogeneity, which leads to changes in net flows of safe and risky assets. The model is applied to 20 advanced countries and calibrated to reflect observed cross country heterogeneity of net foreign asset positions of safe and risky assets. The implications of the calibrated model for net capital flows are quantitatively consistent with the data.

Transaction-level transparency and portfolio mimicking

This study examines whether an increase in the transparency of investment transactions facilitates portfolio mimicking. While there are reported benefits of transparency in enhancing regulatory monitoring and discipline, an increase in the transparency of investment transactions can also facilitate mimicking of peer firms’ investment strategies. I exploit an exogenous increase in the broad dissemination of transaction-level investment disclosures of U.S.-based insurers and find a significant increase in portfolio similarity at the individual security level. Increases in portfolio similarity are more pronounced in smaller, less sophisticated insurers mimicking their larger, more sophisticated peers. Shared asset positions and common exposures to risk can exacerbate collective risk across firms. Accordingly, I find that the detectable increases in portfolio similarity are positively associated with measures of systemic risk, especially in those smaller insurers mimicking their peers. This study adds to a nascent literature on portfolio mimicking and highlights a potential negative externality of increased transparency.

A Confounding-Domain Randomized Approach for Providing Source Location Privacy Preservation for Wireless Sensor Networks

Wireless sensor networks (WSNs) have advanced technologically, allowing for a wide range of Internet of Things (IoT) applications. The Internet of Things (IoT) provides a platform for connecting items to achieve a specific goal with minimal human intervention. Various practical sectors, such as environmental monitoring and defense, demand IoT support with maximum object connectivity, and low human participation, yet face security concerns from strong unauthorized entities. As location privacy is one of these major vulnerabilities, continual monitoring of contextual information may lead the attacker to the asset's position. The location privacy of the source node that detects and reports the presence of an event is critical. In this study, we provide a source location privacy (SLP) preservation technique based on confounding domain angular routing (SLP-CDAR) that attempts to improve security while increasing network lifespan. To avoid traffic analysis attacks, packets first undergo a random walk, followed by a perplexing time domain routing that creates additional diversionary pathways. The packets are then routed via angle routing, followed by a random path, and finally delivered to the base station using the forward random walk technique. The experimental results prove that the proposed scheme enhances the location privacy strength while providing an improved network lifetime, and a swift increase in the entropy.

A Novel Improved Genetic Algorithm for Multi-Period Fractional Programming Portfolio Optimization Model in Fuzzy Environment

The complexity of historical data in financial markets and the uncertainty of the future, as well as the idea that investors always expect the least risk and the greatest return. This study presents a multi-period fractional portfolio model in a fuzzy environment, taking into account the limitations of asset quantity, asset position, transaction cost, and inter-period investment. This is a mixed integer programming NP-hard problem. To overcome the problem, an improved genetic algorithm (IGA) is presented. The IGA contribution mostly involves the following three points: (i) A cardinal constraint processing approach is presented for the cardinal constraint conditions in the model; (ii) Logistic chaotic mapping was implemented to boost the initial population diversity; (iii) An adaptive golden section variation probability formula is developed to strike the right balance between exploration and development. To test the model’s logic and the performance of the proposed algorithm, this study picks stock data from the Shanghai Stock Exchange 50 for simulated investing and examines portfolio strategies under various limitations. In addition, the numerical results of simulated investment are compared and analyzed, and the results show that the established models are in line with the actual market situation and the designed algorithm is effective, and the probability of obtaining the optimal value is more than 37.5% higher than other optimization algorithms.

Conflict fuels inflation but the tinder lies elsewhere: Eclectic structuralist thoughts in a developing economy context

AbstractDeveloping country inflation is in the headlines again. Mainstream macroeconomics typically ignores the role of conflict while non‐mainstream work tends to ignore macroeconomic constraints. This paper revisits the issue employing a dependent economy framework with eclectic characteristics. Specifically, I explore the mechanisms that propagate both real and monetary sources of inflation in the presence of real wage resistance and distributional conflict. The analysis shows that the inability to pay for subsidies with taxes or bond issuance in a stylized developing economy could create a situation where a relatively small shock leads to sustained and accelerating inflation and a wage‐price spiral, thanks to conflicting claims on income. Subsidies to protect consumers from external price shocks could, similarly, leave a country vulnerable to accelerating wage‐price spirals as the stabilizing relative price effects of a declining foreign asset position are dampened. Distributional conflict thus plays the role of sustainer rather than the primum mobile. Price controls could, in theory, better enable inflation management if these do not result in redistribution toward spenders. Such controls, however, create other trade‐offs for countries facing balance‐of‐payments fragility.

Socially optimal search intensity in over-the-counter markets

This paper investigates the endogenous search intensity of traders in the OTC market, examining both competitive equilibrium and socially optimal scenario. Our study introduces a random search-and-matching model, where traders have the flexibility to ex post choose and adjust their search intensities based on two trader-level states: asset position and preference type. Our findings uncover the following key insights: (1) Changes in the level of search friction and/or the frequency of shocks on traders' preference type may lead to traders switching between high and low search intensities, shifting between the core and periphery of the trading network; and (2) Social optimality is achieved in the absence of intermediation, where no trader simultaneously invests in positive buying intensity and positive selling intensity. In contrast, competitive equilibrium reveals that some traders tend to over-search while others under-search, compared to the socially optimal outcome.

A Study Seeking Historical Evidence for Bases of Classified Balance Sheets

This paper explores the historical evolution of balance sheet layout and the reasons behind the positioning of assets on the left or right side. It delves into two main questions: why the discrepancy in asset placement on balance sheets across countries, and why the shift from right to left in the UK during the 19th century. Using historical evidence spanning from the 15th century to the mid-20th century, the study investigates the development and changes in listing assets, liabilities, and stockholders' equity. It aims to uncover the factors influencing the classification and presentation of items on balance sheets, driven by the needs of information users over time. By examining secondary sources in English literature, the paper provides insights into the evolution of balance sheet layouts globally. Researchers may find this exploration of historical balance sheet variations intriguing, shedding light on how layout decisions have been shaped by user needs and expectations.

A Portfolio Approach to Global Imbalances

ABSTRACTWe use a portfolio‐based framework to understand what drives the decline of the U.S. net foreign asset (NFA) position and the reversal in returns earned on the U.S. NFA (exorbitant privilege). We show that global savings gluts and monetary policies widened the U.S. NFA position, while investor demand shifts partially offset this widening. Moreover, U.S. privilege declined after 2010, in line with increasing foreign demand for U.S. equity. We also highlight a quantity dimension of the U.S. privilege: The U.S. can issue substantially more debt than other countries for a given yield increase.

Statistical omissions as the stabilizing factor of net foreign assets in EU countries

In this paper, we investigate the effect of balance of payments statistical leakages (Net errors and omissions) on the external solvency of net foreign asset positions in the EU28 sample over the period 1995–2019. The Bohn (2007) error-correction reaction function approach adapted to a dynamic panel framework (pooled mean group estimator) yields evidence of a substantial improvement in the sustainability of external positions in one out of four analyzed countries (compared to only one to three countries reporting deterioration), once the extent of hypothesized trade and non-interest income misreporting is accounted for. These findings may reflect the presence of a possible association between statistical omissions and current account transactions linked to remittances flows or tax optimization behavior, as the statistical leakages are sensitive to changes in corporate tax rates and international migrant stock.

Analisis Literatur terkait dengan Model Pemimpin dan Kepemimpinan dalam Islam (Kasus Penggabungan Tiga Bank Syariah Besar Menjadi BSI)

This article is about a literature review regarding good leadership models in Islam as seen from the experience of the merger of 3 (three) Sharia Banks in Indonesia to become Bank Syariah Indonesia (BSI), which is currently approximately three years old and the Indonesian Sharia banking market until compete and occupy the position as a sharia bank with the most significant asset position compared to 6 (six) other conventional banks which have dominated the Indonesian market for decades. The type of data used in this research is qualitative data, with the data source coming from secondary sources and the data collection technique used being a documentation technique through literature review using the Systematic Literature Review (SLR) data analysis technique by utilizing the Published or Perish (POP) metadata tool and VOS Viewer. The research method used is a qualitative method, with research results showing that the leadership model of Bank Syariah Indonesia has accommodated the best leadership criteria in Islam, which can be adaptive, fast response, and solutions while still implementing the traits and characteristics of leaders who are sincere, trustworthy, Katonah, and tabligh. This leadership character was demonstrated by leading the previous three large banks into one with one vision, mission, and work culture, as well as the synergy of all human resources that supported joint achievements to success in the three years of its existence.

The Influence of The Value of Oil and Gas Exports and Imports on The Country's Foreign Exchange from 2010-2017

International trade requires a very important source of financing, namely foreign exchange reserves. Foreign exchange reserves are the net position of foreign assets of the government and foreign exchange banks, which must be maintained for international transaction purposes. This research aims to determine the effect of oil and gas exports, namely crude oil, oil and gas products on foreign exchange reserves in Indonesia. The type of data used in this research is secondary data obtained from the Central Statistics Agency website, data taken from BPS is the value of oil and gas exports and imports for 1996-2017 and the position of foreign exchange reserves for 2005-2018. The method used in this research is the Simple Linear Regression Method which is used to see the form of relationship between variables through an equation. From the research results above, it can be concluded that oil and gas exports and imports in 2010-2017 did not have a significant effect on the country's foreign exchange reserves. This shows the lack of contribution of exports and imports of crude oil, oil and gas products in influencing the country's foreign exchange reserves.

Liquidity risk and market value of insurance companies in Nigeria

The study examines the market value effect of liquidity risk of insurance companies in Nigeria. Liquidity risk has caused market value related problems and even insolvencies in the Nigeria insurance industry in the past and it remains a key risk for insurance companies to manage it now and in the future. Twenty seven (27) quoted insurance companies were used in the study. Ex-post facto research design method was also employed while the panel data were sourced from the Securities and Exchange Commission (SEC) Statistical Bulletin, Nigerian Stock Exchange (NSE) and Audited Annual Financial Reports of the studied companies from 2004 to 2023. This research adopts stationarity test, cointegration test, and pooled least squares regression test methods. The finding shows that there are significant influences of liquidity ratio, leverage ratio and firm size on market value of insurance companies in Nigeria (p = 0.0000, 0.0019 & 0.0000 < 0.05). This study concludes that there is a significant market value effect of liquidity risk of insurance companies in Nigeria. Insurance companies should have enough cash to meet their obligations both in short run and long run. There is need for regular cash flow modeling, which can project potential liquidity needs from the liability side of the balance sheet. Also, a liquidity-adjusted assets analysis can be applied to asset positions to estimate the cost of supplying liquidity from the asset side of the balance sheet to match those liability cash flow needs.

The Management of Land Assets in Dharmasraya Regency Based on WebGIS

Land asset management is crucial in governance because government assets encompass properties and resources managed by government entities to generate economic value in the future. Dharmasraya Regency, located in West Sumatra Province, possesses a variety of government assets, including land and buildings. Despite its significant potential, the management of these assets has not been optimal. This research proposes a solution in the form of Geographic Information System (GIS)-based asset management, with a focus on land asset data collection. GIS enables in-depth spatial analysis of land assets and the entire region, facilitating efficient decision-making in asset management and development. The objective of this research is to map the position and distribution of government land assets in Dharmasraya Regency and provide visualization of web-based land asset management through WebGIS. The results of this research reveal that government land assets are spread across 11 districts, with the highest number of assets in the Sitiung District and the lowest in the Asam Jujuhan District. This research also produced a WebGIS application integrated into the Dharmasraya Regency Government website. This application allows easy and fast access to information about government-owned land assets, with features such as search, distance measurement, and various base map options. Thus, this research contributes to improving the management of land assets of Dharmasraya Regency Government through a modern approach based on information technology and geospatial technology.

Oil price effects on optimal extraction–exploration and offshore entities: An applied-theoretical and empirical investigation in oil-rich economies

We present a novel open-economy endogenous growth framework that integrates an optimal extraction-to-exploration (“extraction rate”) problem and a principal–agent style offshore investment and appropriation choice problem. Using a combination of applied-theoretical simulation and econometric analyses, we investigate the nexus between oil price and the extraction rate, as well as the relationship between extraction rate and offshore appropriation, focusing on offshore entities in tax havens associated with 31 oil-rich economies from 1979 to 2020. Consistent with recent literature and aggregate evidence, our benchmark simulation results find the first nexus to be negative, but positive if we impose a decreasing return to exploration specification. Regarding the second nexus, except for economies with large initial net foreign asset (NFA) positions, we find a positive association between offshore inactivation and the extraction rate. We also present empirical evidence to corroborate the benchmark results (with constant returns to exploration): a negative association between oil prices and extraction rates, which is further associated with a lower number of offshore entities.

Dampak Hukum Dari Akibat Putusnya Perkawinan Pasangan Berbeda Agama Terhadap Harta Bersama Dan Hak Asuh Anak

Indonesia is known for its diverse cultures and customs that have been ingrained from their ancestors. Where different religions and beliefs have different rules regarding marriage. This social interaction can give rise to a relationship that can continue into marriage. Marriage is a religious thing where a relationship between two human beings, namely a man and a woman who have grown up, have the desire to unite and promise in a sacred bond as husband and wife to form a happy, harmonious family and multiply offspring. The aim of this research is to determine the legality of marriage between couples of different religions according to Islamic law and the Marriage Law (in Decision Number 8/Pdt.G/2022/PN Tjk) as well as the position of joint assets after the dissolution of marriage for couples of different religions after the marriage was decided according to law. Islam and according to the Marriage Law (In Decision Number 8/Pdt.G/2022/PN Tjk). The results of this research indicate that the validity of interfaith marriages based on Decision Number 8/Pdt.G/2022/PN Tjk is clearly prohibited from a positive legal perspective in Indonesia, both in the Compilation of Islamic Law (KHI) and Law Number 1 of 1974 concerning Marriage. . Furthermore, in connection with this decision, the Panel of Judges gave sanctions to the Plaintiff to pay court costs in the amount of Rp. 845,000.00 (eight hundred and forty five thousand rupiah) and stated that the Plaintiff was on the losing side. The position of joint property after the dissolution of an interfaith marriage when viewed from the perspective of the Compilation of Islamic Law in accordance with Article 97 is that the division of joint property in the event of a divorced husband and wife prioritizes the method of peace (deliberation). Then in Law no. 1 of 1974 and the Civil Code Law in article 37 of Law no. 1 of 1974 and articles 128-129 of the Civil Code that if the marriage bond between husband and wife is broken, then the joint assets are divided between the husband and wife. However, in law, rules are used as long as the parties do not determine otherwise or the rules are regulated according to their respective laws. In connection with the study of decision Number 8/Pdt.G/2022/PN.Tjk, because in the facts of the trial in this case the Defendant had been baptized, the division of assets was based on Law No. 1 of 1974 and the Civil Code, and because both parties do not have joint assets but have a debt which was incurred by the defendant by falsifying their identity due to pressure due to the plaintiff's actions which did not provide maintenance, the judge's decision was to settle the debt after the divorce in a joint manner. Jointly is the right decision.

The influence of the spillover between futures and spot markets on hedging policy: evidence from Chinese stock markets

This paper examines the impact of risk spillovers between Chinese stock and futures markets on stock hedging policies. This paper calculates the correlation between the overall risk spillover and the hedging ratio, effectiveness, and hedging cost based on the hedging portfolio of stock futures of the CSI 300 index, the SSE 50 index, and the CSI 500 index. The results show that, on the one hand, the CSI 300 and CSI 500 futures markets are the propagators of risk spillovers, which shows that the price fluctuations of these two types of futures markets have a stronger impact on the stock spot price. The CSI 50 Futures market is the recipient of risk, and the CSI 50 Futures price is more vulnerable to the impact of the stock market. The results of the three types of samples show that when the stock market experiences extreme decline, the Risk Spillover Effect in the futures and spot markets will be significantly reduced, which indicates that the price of stocks and their derivatives is more deviated from the equilibrium relationship of pricing, and at this time, the function of derivatives in risk control is unreliable. On the other hand, the total spillover index of stock futures and spot markets has a positive correlation with hedging rate, hedging effectiveness and hedging cost. When the total spillover real number increases, it will get a more effective hedging effect. In addition, the hedging index is more sensitive to the overall spillover of high asset liquidity hedging portfolios. These conclusions provide a basis for adjusting asset positions according to the changes of Risk Spillover between the futures market and the spot market to obtain higher hedging effectiveness. The contribution of this paper is to reveal the possibility of finding the risk factors of hedging from the perspective of Risk Spillover in a very simple way, so it has reliable practicability in practice.