Buffer stock savings by portfolio adjustment: evidence from rural India

The empirical literature on household savings tends to treat savings simply as the residual of income minus consumption. This article takes a unique approach to reconstruct the cash and asset balances using detailed household transaction data on farm households in rural India and generates monthly and seasonal ICRISAT panel data for the period 1976–1983. We have found that households—irrespective of their landholding status—cope with temporary shocks quite well by using crop inventory, currency, and capital assets, rather than livestock, as buffer assets. The importance of portfolio adjustments in smoothing consumption is also confirmed by the use of a system of equations in which both portfolio and production decisions are made endogenous. It is concluded that not only the level but also the diversification of household assets are important for buffering consumption. As an extension, we have explored the monthly ICRISAT panel data for the period 2009–2012 in the same villages and have found a similar pattern in household portfolio responses to income shocks.     

Corporate aggregate disclosure practices in Jordan

This study reports the results of an empirical investigation of the disclosure behavior of listed companies in Jordan after important changes in economic and accounting regulations. It also reports the relationship between aggregate disclosure (both mandatory and voluntary) and a number of company characteristics (financial and non-financial) for Jordanian companies listed in Amman Stock Exchange (ASE). The results of the study revealed that there was a significant increase in the level of aggregate disclosure (its average was 69%) compared to previous studies in Jordan. The extent of mandatory and voluntary disclosures was 83% and 34% respectively. Univariate analysis revealed that firm size, profitability, number of shareholders, listing status, industry type, audit firm size and company age are significant variables in explaining the variation in the level of aggregate disclosure among Jordanian companies. Meanwhile, multivariate analysis showed firm size (sales), profitability (ROE), audit firm size, industry type and listing status, to be significantly associated with the level of aggregate disclosure.     

Board monitoring and capital structure dynamics: evidence from bank-based economies

Review of Quantitative Finance and Accounting - We examine the impact of board characteristics on the speed of adjustment and the capital structure dynamics of firms in bank-based economies. Using...