Financial integration and currency risk premium in CEECs: Evidence from the ICAPM

This paper aims to study the Central and Eastern European Countries' (CEECs) dynamics of financial integration in the euro area with the prospect of their integration into the European Monetary Union. Our empirical analysis is based, successively, on a MGARCH model with time-varying correlations, a state-space model and a Markov-switching model. The results show that financial integration (i) is not perfect but is increasing and (ii) is linked to currency stability. The growing financial integration in 2007–2009 seems to be rather the result of the shock propagated by the global crisis.     

Financial integration in East Asia: Evidence from panel unit root and panel cointegration tests

The aim of this paper is to investigate the degree of financial integration for selected East Asian countries from 1988 to 2006 using the recently developed panel unit root and panel cointegration techniques. Investment and savings rates are found to be nonstationary and not to be cointegrated in panels. We estimate modified Feldstein–Horioka equations and our results reveal a high degree of financial integration. When we homogenize our data, results show that high-income countries have stronger financial integration than middle-income countries. Finally, we proceed to stability tests in order to test if there is a crisis effect and we find that financial integration is stronger in the post-crisis period.     

Machiavellianism in Indian management

Machiavellianism has tremendous influence on modern business communities, especially in the U.S.A. and European countries. Businessmen today, it is said, prefer to follow the directions of pragmatism and expediency rather than the dictates of individual conscience.In principles and practices, Indian management by and large follows the Western line. Therefore, the question arises whether Machiavellian influences are perceptibly high on Indian managers. This question is more relevant in the light of a few surveys conducted on the ethical attitudes of Indian managers. These identified a clear contrast between their expressed behaviour and wanted attitudes. The present study on the attitudes of managers from the major cities of India concludes that Niccolo Machiavelli inspires and influences Indian managers, but has not become the final determinant in their decision-making.Fr. K. Cyriac is Associate Professor at XLRI Jamshedpur, India, teaching Business Ethics since 1983; has published several articles on related topics in local journals; is a fully trained psychoanalyst, and is a member of the IPA. Currently he is involved in a research on corruption in India and its consequences to business and public life.Mr. Raj Dharmaraj is Assistant Manager, Blowplast, Bombay. He holds a degree in Economics and MBA from XLRI. Business Ethics is a major area of interest in his research and practice.