Real and Monetary Determination of the Egyptian Real Exchange Rate

Abstract: The purpose of this paper is twofold. First, the question of whether the equilibrium condition of Purchasing Power Parity (PPP) holds is investigated using Egyptian data between 1970(1) to 1990(4). Second, the role played by real and monetary variables on the Egyptian real exchange rates appreciation is also analyzed. The results of this paper suggest that PPP does not hold and that monetary expansion, capital controls, the increase in government consumption and terms of trade deterioration played a key role in the growing Egyptian real exchange rate appreciation. Résumé: Cet article comporte deux volets. Il évalue d'abord l'importance dc la condition d'équilibre que constitue la parité du pouvoir d'achat (PPA), en utilisant les données égyptiennes des années 1970 (1) a 1990 (4). Il analyse ensuite l'influence des variables réellcs et monétaires sur l'appréciation des taux de change réels en Egypte. Les conclusions de cette double analyse font croire que la PPA n'est pas un factcur déterminant et que l'expansion monétaire, les mesures de régulation des capitaux, l'accroissement de la consommation publique et la détérioration des termes de l'échange ont joué un rôle clé dans l'appréciation du taux de change réel en Egypte.     

New debt issues and earnings management

We empirically examine the influence and effects of real earnings management (REM) procedures on the debt market by investigating the bond rating and actual market price of a firm's new debt offerings. Extant research provides conflicting representations concerning the effects of REM techniques on equity shareholders and debt market participants. Our results indicate a negative association between all three REM manipulation methods and perceived credit risk resulting in a lower bond rating, and higher market yield of the firm's debt at issuance. Additional analyses exploring the use of REM techniques to achieve analyst's earnings forecasts indicates that this negative effect is particularly significant for firms who only achieve the earnings forecast by utilizing REM methods. Our research adds to the literature by empirically describing the effects of REM techniques on new debt issuances, and contributes to the ongoing debate regarding the efficacy of engaging in real earnings management to achieve known targets.     

Dividends versus Share Repurchases Evidence from Canada: 1985–2003

This paper provides out-of-sample evidence on the payout policy in Canada during the 1985–2003 period. First, we show that the proportion of nonfinancial firms paying dividends has decreased, while the proportion initiating repurchase programs has increased. We also show that Canadian firms paying dividends and repurchasing shares are extremely concentrated. Second, we focus on the factors that could affect the choice between repurchases and dividends. We find that dividends and repurchases are used by different types of firms. While we do not confirm the financial flexibility hypothesis, our results are consistent with the substitution hypothesis after controlling for selection bias and endogeneity.     

Local consumer well-being in a multicultural marketplace: From conflict to engagement

This study offers a nuanced understanding of how local consumers experience, interpret and acculturate to expatriates' practices within a multicultural marketplace. We adopt Demangeot et al. bridge framework and its marketplace domains (security, visibility, opportunity, utility, intercultural competence and cultural navigability) to unpack locals' consumption patterns and experiences that produce multicultural tensions or multicultural engagement that contributes to locals' well-being. Data were collected via 2 focus groups and 20 in-depth interviews with local consumers in Qatar. The findings offer several theoretical and managerial insights that could enrich the scant literature on acculturation of local minorities within multicultural non-homogenous societies and enhance our understanding of how local consumers engage with culturally different experiences.