Research
The CAPM, Determinants of Portfolio Flows to Emerging Markets Economics: The Case of Jordanian Financial Crisis
- Abstract The main aims of this study to investigate the impact of the determinant of portfolio return performance during and post finical market crisis based on the most active firms listed on Amman Stock Exchange (ASE) for the period from 2008 to 2012 has been studied. In this study, using the framework of the Capital Assets Pricing Model (CAPM) as considered to be a centrepiece in optimal portfolio determinants. An important contribution of this framework is that it allows to derive optimal portfolio implications for economies in which the degree of correlation across different finical sectors. The test data set is the monthly prices based on 59 samples of the most active companies. This empirical study proposed that this is not a normal cyclical crisis of capitalism but a global crisis, which requires a change in the management policy to be tackled with new regulatory frameworks for financial institutions in order to stimulate economic activities. The results show that there is a difference finding during these two periods where risk is negative and significant during finical market crisis period (2008- 2009) but positive and significant after the finical market crisis period (2010-2012). Further results show that when the return on the other factors is inserted in the model, this relation remains significant during and post finical market crisis for asset correlation and investment risk. Furthermore, paper of the proposed model in other emerging countries could be performed in order to raise further explanation of the model and to reveal more generalised findings.
Accounting, FRQ, Emerging Countries Transition: How can a Country Implement an IFRS Standard Change Successfully?
This study examines the variables affecting the decision to adopt IFRS standard by seventy-eight emerging market economy (43 adopting IFRS and 35 non-adopting) over the period 2006-2014. The results of the study are primarily an exploratory process framework for the implementation of IFRS standard changes and secondarily a set of variables seen as affecting the IFRS standard change implementation process in emerging countries. Key variables include the following twelve variables:culture (Anglo-Saxon), political system, educational system, legal environment, economic growth,privatisation, foreign direct investment, firm size, liquidity, and cost of equity capital, audit quality (Big 4) and transparency. Finally the main limitations of this study are outlined and opportunities for future research are discussed, particularly in relation to this study’s findings about the requirement to reconsider the usefulness of the relationship between accounting practices and framework adoption of IFRS by emerging countries.
