8-Corporate Governance Practices in Emerging Markets: The Case of GCC Countries

Literature ReviewDifferent CG indices contribute been sustain in the literature, mostly depended on developed countries. But, very small take has been carried knocked out(p) on the developing and developing markets. An attempts is carried out to nominate bop how of the emerging markets of Asia Especially ceremonious in oil based GCC countries.A little Interesting work has been carried out by two maestro bodies Institutional Sh atomic number 18holder Service (ISS) and Investors responsibility Research Center (IRRC). Both, ISS and IRRC generate a large CG database which offers a complex m to analyses the overall tincture of a firms CG. In this ara Important research i has been make by La Porta et al. (1998), Klapper and Love (2002), Gompers Et al. (2003), De Toledo and Pillicer (2006), Brown Caylor (2006), Leal and Carvalhal-da-Silva (2005), Ananchotikul (2007), Garay and Gonzalez (2008), Daines et al., 2010Ibrahimpasic (2012) and Hassan (2012), are among others. A prelim inary work CG was conducted By La Porta et al. (1998) to estimates the limits of that develops an anti-director rights world power to measure the degree of shareholder safety a major means in CG in 49 countries around the world. The index finger is calculated to have a go at it the sum of six dummies that assume the value Of 1 if a granted form of shareholder certificate is present and 0 Otherwise.It is concluded that prevalent law countries have powerful investor safety than civil law countries and that stronger investor protection is related to greater ownership Dispersion. Following the same lines, Klapper and Love (2002) constructed a weighted average CGI for 374 firms in 14 emerging countries on a scale of 0100. They conducted a firm level survey accomplished by Credit Lyonnais Securities Asia (CLSA) that with only six formation Components out of the seven studied by CLSA to build the index.The factors studied are transparency, depictability, independence, solicitud e discipline, fairness and responsibility. The field of battle indicated that countries having poor legal systems, scored higher index in terms of CG and companies intending to expand in the market with the help of external credit rating have more chances of growth.To stick to better governance. Moreover, Klapper and Love that the countries listed in US stock markets shows good Governance. One more renowned and mostly apply CG index the G-Index was established by Gompers et al. (2003) for 1500 large firms betwixt 1990 and 1998. They employ un-weighted index to compute CGI reprocesses IRRC data as an equally weighted sum of 24 Shareholders rights practices across five characteristics delay, safety, voting, state and others.The index assigns a value of 1 for every attribute that refuse shareholder rights and 0 Otherwise. Results shows that good governance has a positive Relationship with stock returns. In the same scenario, De Toledo and Pillicer (2006) established a governance c hart for 97 nonfinancial Public companies in Spain by maintaining a binary Scale. Based on 25 questions and the questionnaire wide-awake By Brown and Caylor (2006)Gompers et al. (2003) and Klapper and Love (2004) are considered to arrive at the CGI and Companies tally 25 are assume to portray high governance Standards. A study by Leal and Carvalhal-da-Silva (2005) on Brazil established other milestone in index preparation related to emerging Countries. They on the watch an un-weighted CGI for 131 firms listed in The Sao Paulo stock trade from 1998 to 2002.Title11-Temporal granger Causality and the dynamics Relationship between legitimate Tourism Receipts, Real Income and Real supervene upon Rates in MalaysiaLiterature ReviewThis study applies the bounds scrutiny Approach, error-correction modeling and pains indite to analyses the dynamic Relationship between literal touristry taskation, Real income and echt substitute rates in Malaysia. The study is covering sample degree 1974 to 2009. Finding of this study disclosed that a long term relationship subsist in between the variables.In short term finding are that no Granger spring between actual income and trustworthy touristry receipts, objet dart multiple spring in the long run. In addition it has been found that unidirectional origin lead from hearty Exchange rates to in truth tourism receipts and Real income in both short- and long-run. The ultimate purpose of this study is to look the temporal Granger spring and dynamic relationship between historical tourism receipts, real Income and real exchange rates in Malaysia for the period of 1974 to 2009.Applied the bound testing approach and Granger causality sample in addition to variance decomposition, Impulse answer function and Persistence profile analyses to achieve the purpose of this study. Major finding are, the bounds testing Approach indicates the existence of a long-run Relationship between real exchange rates, real touri sm receipts and real Income in Malaysia. Second, to provoke the robustness of conclusion, it engages trio long-run estimators, Namely ARDL, DOLS and FMOLS to Estimate the long-run elasticitys.Real income and real exchange rates have a positive and important military issue on real tourism Receipts in Malaysia. Third, the Granger causality Test is used to investigate the direction of Causality between the variables. In the short term, there is unidirectional Granger causality running from real exchange rates to real tourism Receipts and real income, but no Granger Causality between real tourism receipts and real Income.Therefore, in the long-run, we find bidirectional Granger causality verification in between real income and Real tourism receipts, but a Unidirectional Granger causality running from Real exchange rates to real tourism receipts and real income. Fourth, apart from exploitation the Granger causality test, we consider variance Decomposition and impulse response functi on to find out the reaction of each variable all it is attributed to its own shock and to the shocks in other variables in the system.It is also called as the variable specific Shock. In describing shocks to real tourism Receipts in Malaysia, real income is more important than real exchange rates. Meantime, real exchange rates and Real tourism receipts are equally prerequisite in describing shocks to Real income. The urge reply of function disclose that shocks to real income and real exchange Rates have substantial positive impacts on real tourism Receipts in the short- and long-term.Further, shock to real tourism receipts has a Positive effect on real income, while shock to real exchange rates has a negative effect on Real income in Malaysia. It is concluded that, persistence Profile showed that the real tourism receipts System is stable and valid as the profile Declines sharply towards the equilibrium within a period about three years after a system-wise shock. This affirms that the Trivariate co integrating system used in this Study is logical.For policy-making, we could mention at least two significant policy indications from the findings of this study. First, tourism is the long-term source for economic growth in Malaysia as the Granger Causality results propose that real income and real tourism receipts have bidirectional causality.Title12-Corporate ownership, governance and assess evasionAn interactive effectsLiterature ReviewThe fact is that valuatees deductions from the bullion flows acquirable to a firm, and therefore the dividends distributable to the shareholders, propose that firm owners would attempt to increase their riches through various taxes to keep away from these Practices. such(prenominal) types of advantages of enhanced hard capital flows from tax avoidance practices are ingenious with certain Non-tax be. This required the costs/benefits considering of such type of practices and the choice of tax avoidance if the interest ou tbalance the linked costs.Therefore, the benefits and the associated costs with corporeal tax avoidance are discussed here. earlier to explanation, little awareness are provided on the meaning and measures of corporal task avoidance to give proper ground for the discussion in detail. The corporeal tax avoidance lacks universal definition as it might predicate different thing to different People (Hanlon Heitzman, 2010137).The reality is that there is significant tax impacts on all settlement of a Company, meant to enhance its profit, could account for such shortness of universal definition. , they have different definitions of corporate tax avoidance put up by researchers in present quantify (for a review of these definitions see Salihu, Sheikh Obid Annuar, 2013 Salihu 2014). Here, explain corporate tax avoidance as a decrease the clear cut corporate tax liabilities.This definition is in line with Hanlon and Heitzman (2010) It explains tax avoidance as a continuum of tax arra ngements policies where something like municipal bond Investments are at one side (lower explicit tax, perfectly legal), Therefore , the terms Such as tax management tax planning tax sheltering and tax aggressiveness are exchangeable used with tax Avoidance in the literature (see for instance Chen et al. 2010 Lanis and Richardson, 2011 2012 Minnick Noga, 2010 Tang Firth, 2011).Similar to its definition, there have been many ways of corporate tax avoidance used in the prior Literature. These ways are mainly depended on the estimates from the financial statements and could be categorized into three classes/groups. The first group adds those measures that examine the multitude of the opening move between book and Taxable income. All these consist of total book-tax pass residual book-tax gap and tax-effect book-tax gap.The Second group has to take up with those establish the evaluate the proportional amount of taxes to business income. All these having effective tax rates (this come s in several variants like accounting ETR current ETR cash ETR Long-run cash ETR ETR differential ratio of income tax expense to operate cash flow ratio of cash taxes Paid to operating cash flow).The third group comprises other measures such as optional eonian differences (PERMIDIFF)/DTAX unrecognized tax benefits (UTB) and tax shelter estimates. Other than this plethora of measures of corporate tax avoidance used in the tax literature, its conforming scene remains un-captured as most of the measures are computed based on items that are affected by accrual accounting Procedures.To this part, Hanlon and Heitzman (2010) proposed a measure for conforming tax avoidance as the Proportion of cash tax nonrecreational to operating cash flow. Salihu, Sheikh Obid and Annuar (2013) documented the significant difference of this measure from other similar measures. This study suggested the use this measure for the Empirical investigation given the context of the study.