Navigating Through the Spatial and Institutional Contradictions of Public Audit Oversight

Abstract

This study revisits the actions of the French audit regulator (H3C) and the French profession over the 2003–2013 period in response to the regulatory transformations that occurred both in the national and transnational space. Our analysis highlights how these actors have navigated through the spatial and institutional contradictions that characterize public audit oversight in order to manage variable and opposing interests from one space to another. In particular, we show how conflicting national and transnational conceptions of professionalism and commercialism have developed to support different regulatory agendas. Our analysis of the spatial dynamics of public audit oversight allows us to propose a much less confrontational representation of the relationships between public audit regulators and the audit profession. We maintain that more attention should be paid to the spatial variants of commercialism and professionalism to better understand the development of audit regulation.     

Googling Investor’s Sentiment: Powerful Measure in Conventional and Islamic MENA Financial Markets

ABSTRACT

The objective of this paper is to investigate whether investors' sentiment measured by the Internet search behavior constitutes a valid measure of investor’s sentiment on Islamic and conventional indexes of emerging and frontier financial markets in MENA countries. In fact, we examine the relation between googling investor’s sentiment and monthly Islamic and conventional index returns during the period 2004–2016. Using the Dynamic Conditional Correlation, the BEKK-GARCH and the wavelet coherence models, we confirm that googling investor’s sentiment is a perfect indicator of investor’s sentiment measure. Indeed, we find that this measure has the ability to reflect major events such as subprime financial crisis, oil crisis and Arab spring revolution affecting MENA Islamic and conventional index markets. Our finding indicates that investors can use googling investor’s sentiment as an indicator to predict returns and volatility of emerging and frontier markets since it reflects the behavior and emotions of investors in MENA financial markets.     

Threshold Effects in the Capital Account Liberalization and Foreign Direct Investment Relationship

This paper examines how capital account liberalization （CAL） affects foreign direct investment （FDI） inflows. Authors use a dynamic panel model encompassing 14 Middle East countries over the period from 1985 to 2009. The findings suggest that countries that are able to reap the benefits of the capital openness policy satisfy certain threshold conditions regarding the level of financial development and institutional quality. Thus to promote FDI, governments in this region should develop a set of policies that not only focus on financial openness, but also on the improvement of the financial system and legal institutions.     

Assessing the Impact of Crude Oil Price and Investor Sentiment on Islamic Indices: Subprime Crisis

This article attempts to shed light on the impact of oil prices, investor sentiment, and conventional index on 11 Islamic indices, particularly during the subprime financial crisis and the oil crisis. Empirical evidence suggests that the Malaysian and Indonesian Islamic indices are very much affected by the oil volatility. Estimation results of the BEKK-GARCH model reveal that the pessimistic sentiment during the subprime crisis is transmitted to Islamic indices, suggesting the herding contagion. The authors' finding indicates that investors can use VIX investor sentiment as an indicator to predict Islamic returns volatility. In addition, the authors find that the oil shock has spilled into Islamic indices. The time-varying correlation indicates strong evidence of the contagion effect of crude oil and investor sentiment measure to Islamic indices during the oil shock and U.S. financial crisis period of 2008–2009.     

The political economy of growth in Morocco

This paper is an attempt to explain the relatively low performance of the Moroccan economy during the last four decades using a political economy approach. In that period, the Moroccan society benefited from sophisticated institutions that facilitated policy coordination and commitment. But, the existing institutions hampered the participation of large segments of the population and political parties representing them in the policymaking process. Also, the centralization of administration hindered local initiatives. However, numerous and significant structural reforms have been undertaken in the 1980s and 1990s and in recent years a strategy has been adopted that combines continued economic liberalization, increased democratization, and efforts to reduce poverty and promote human development. These changes have started to bear fruit in the past few years.     

The evolution of the Swedish market model

Sweden historically pioneered many aspects of a modern market economy, hosting the first known share company, the first European credit notes, and the first central bank. Anders Chydenius's booklet Den nationella vinsten (The National Gain) was printed in 1765, 11 years before Adam Smith's The Wealth of Nations. Sweden was early in extending to women the rights to pursue professions and own businesses. Today, Sweden and its Nordic neighbours evince an unusual combination of high taxes and some of the freest economies in the world. Another characteristic feature is long-standing trust, which facilitates investment and cooperation. It also allows for decentralised decision-making, a characteristic feature of Nordic business management. Sweden's unusual high-trust culture significantly affects economic activity.