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November 2, 2010

The Relationship between Inflation and Real Exchange Rate: Comparative Study between ASEAN+3, the EU and North America

Filed under: Karya ilmiah — Tags: , , — achsani @ 6:53 am

Noer Azam Achsani
Department of Economics and International Centre for Applied Finance and Economics,  Bogor Agricultural University, Indonesia
E-mail: achsani@yahoo.com (preferred) or achsani@mb.ipb.ac.id
Tel. +62-251-8377662; Fax. +62-251-8377896

Arie Jayanthy F A Fauzi
Graduate School of Management and Business, Bogor Agricultural University, Indonesia
E-mail: ariesangputriraja@yahoo.com
Tel: +62-251-8313813; Fax: +62-251-8318515

Piter Abdullah
Center for Central Banking Research, Bank Indonesia
E-mail: piter@bi.go.id

Abstract

Inflation has always been one of the most important macroeconomic issues. Due to this importance, a study concerning the factors associated with the behavior of inflation needs to be done. This paper will be devoted to analyze the relevance of inflation with the exchange rates. The research will try to compare the response or sensitivity of inflation to the changes in real exchange rates in Asia (ASEAN +3) and compare the result with those
of the EU and North America.

Using explorative statistical analysis and Granger-causality test, we found that there is a strong correlation between the movements of inflation with real exchange rate in most countries to be analyzed. For Asia, there is a significant one-way causal relationship, where the nominal and real exchange rates have a significant impact on the rate of inflation. On the other hand, in the Non-Asian regions, the causal relationship seems to be in the opposite direction. Furthermore, using panel data model with fixed effects, we found that the response or sensitivity of inflation to the changes in exchange rates in Asia is higher in compare to those in the EU and North America.

Keywords: Inflation, exchange rates, panel data

Artikel Selangkapnya dalam PDF File  Klik disini

Sumber : http://www.eurojournals.com/ejefas_18_06.pdf

Determinant of Corporate Financial Distress in an Emerging Market Economy: Empirical Evidence from the Indonesian Stock Exchange 2004-2008

Koes Pranowo
Graduate School of Management and Business Bogor Agricultural University, Indonesia
Graduate Program of Management ABFI Institute of Perbanas Jakarta, Indonesia
E-mail: kpranowo@gmail.com (preferred) or koes@sism.co.id

Noer Azam Achsani
Department of Economics and Graduate School of Management and Business
Bogor Agricultural University, Indonesia
E-mail: achsani@yahoo.com (preferred) or achsani@mb.ipb.ac.id

Adler H.Manurung
Graduate School of Management and Business Bogor Agricultural University, Indonesia
Graduate Program of Management ABFI Institute of Perbanas Jakarta, Indonesia
E-mail: manurung_adler@yahoo.com

Nunung Nuryartono
Department of Economics and Graduate School of Management and Business
Bogor Agricultural University, Indonesia
E-mail: nuryartono@yahoo.com

Abstract
This study empirically examines the dynamics of corporate financial distress of public companies (non financial companies) in Indonesian (IDX) for the period of 2004- 2008. Using panel data regression, we analyze internal and external factors affecting corporate financial distress. To distinguish the status of financial condition, the process of integral corporate financial distress is classified into four steps: good, early impairment,deterioration and cash flow problem companies.

The results show that current ratio (CR), efficiency (Eff), equity (EQ) and dummy variable of the status good financial condition (D3) have positive and significant influences to Debt Service Coverage (DSC) as a proxy of financial distress. On the other hand, leverage (Lev) has a negative and significant relation with DSC. Other variables such as profit, retain earning (RE), good corporate governance (GCG) and macroeconomic factor have no significant impact on the status of corporate financial distress. Furthermore, the analysis indicated that profitable companies should not be a guarantee that the companies can survive to fulfill its liabilities. Liquidity of companies which can be a prominent point can be recognized by evaluating cash flow performance.

Keywords: Debt Service Coverage (DSC), Panel Data, Corporate Financial Distress,Indonesia Stock Exchange (IDX).

Artikel selengkapnya dalam PDF File Klik Disini

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