The findings reported for the companies listed in China with regard to the change in accounting quality with the obligatory enforcement ofIFRS suggest different results. Zhang, Uchida and Bu (2013) carried out a study between the years of 2001 to 2010 using the model by Kothari et al. (2005); these authors indicate a significant increase inthe level of earnings management, while Ho, Liao and Taylor (2015) suggest the opposite, a lower probability inthe use of discretionary accruals (lower level of earnings management) when using the model proposed by Dechow et al. (1995) between the years of 2002 and 2011. Once again, there is evidence ofthe diversity inthe results concerning the enforcement ofIFRS for other oriental economies. For example, for the companies inthe capital markets of India, there is an increase inthe level of earnings management with regard to those companies that did not implemented them during the year 2010 (Rudra and Bhattacharjee, 2012). For their part, Adibah, Wan Ismail, Anuar Kamarudin, Van Zijl and Dunstan (2013) suggest a decrease in said level of manipulation for the companies of Malaysia, comparing 3 years before and 3 years after the implementation of said standards. Finally, Bryce, Ali and Mather (2015) indicate that the implementation oftheIFRS does not have significant effects onthequalityofthe accounting information in Australia, jointly analyzing the years comprised between 2003 and 2008. All of these studies have been executed under the model proposed by Dechow et al. (1995).
en el modelo de Jones modificado con el ratio book to market y el Cash Flow operativo; |DACC it |5= es la magnitud absoluta de los ajustes por devengo discrecionales en el modelo de Jones modificado con el ROA del año corriente para la empresa i en el año t; POST= es un indicador variable, toma valores de 1 en los periodos en los cuales las empresas aplicar IFRS y 0 en otro caso, un coeficiente significativamente negativo en POST, indica que las empresas tienen menor magnitud absoluta de ajustes por devengo discrecionales en el periodo de post- adopción que en el periodo de pre-adopción de las IFRS. SIZE= es el logaritmo natural al final del año del total de activos e indica el tamaño de la compañía; LEV= pasivos totales al final del periodo dividido por el valor en libros del patrimonio al final del periodo. Indica el nivel de endeudamiento; GROWTH= cambio porcentual en las ventas; TURN= ventas dividido por el total de activos al final del año. Indica la rotación o gestión en los activos; CFO= Cash Flow operativo al final del año dividido por el total de activos al final del año; AUD= es una variable dicótoma que toma valor de uno (1) si las empresas son auditadas por alguna de las Big4 (PWC, KPMG, EY o DELOITTE) y cero (0) en otro caso; NUMEX= número de bolsas en las cuales cotiza cada compañía; LOSS= es un indicador variable que toma valor de 1 para las observaciones con utilidad neta menor que cero, y 0 en otro caso; XLIST= variable dicótoma que toma valor de uno (1) si la empresa cotiza en algún mercado accionario de los Estados Unidos, y dicho mercado no es su bolsa principal de cotización; Country= es un indicador variable, siendo Argentina usada como referencia (Benchmark). El total de países en la muestra es 25, para efectos del modelo econométrico se establecen 24 variables, para evitar el problema de la multicolinealidad perfecta, esto aplica para calcular los modelos desde el 1 al 3 y el modelo 5; puesto que para el cálculo del modelo 4 la muestra sólo representa a 18 países, por tanto en el modelo econométrico se incluirán 17 países para evitar problemas de multicolinealidad perfecta. En todas las variables, exceptuando las variables binarias, se controla los efectos de los valores outliers (winsorized) en los percentiles 5 y 95.
We next proceed to test the Greenwood and Jovanovic hypothesis by estimating equation (2). As described above, we created a dummy variable at several discrete intervals ofthe GDP per capita distribution. We run regressions for each potential threshold. We find evidence of a non- linear effect that seems to roughly start when the threshold is placed at the 40th percentile ofthe distribution. For conciseness, we only reportthe results using this 40th percentile threshold; the results for other thresholds are available from the authors. Table 4 describes these results. The regressions are estimated using two controls sets. The “Simple Control Set” includes the lagged level of income (or lagged Gini for the inequality regression), the growth rate of GDP per capita andthe Regulation Change dummy. The “Full Control Set” includes the lagged dependent variable, the growth rate of GDP per capita, schooling attainment, the log of inflation, and trade openness. Consider first the regression for the poorest quintile (Q1). Again there is no evidence of an effect offinancial development onthe income ofthe poor even accounting for a potential non-linear effect. Next consider the regression for the low-middle income quintile (Q2) shown onthe third and fourth columns. Private credit does not have a statistical significant effect when below the threshold. However, once the threshold is passed, the effect is statistically significant and positive. The estimated coefficient reported for PC+(DUM×PC) is basically +
Because in our experiment we consider the bilateral tarif f reduction on agricultural and non-agricultural commodities at dif ferent rates between India and LAC, the impacts are expected to be dif ferent (Table 6). With import tarif f reduction in two phases, we do not find any significant changes inthe output growth ofthe six regions. A marginal increase in growth for India and LAC is observed in 2015 after tarif f reduction compared to BAU. However, in 2020 moderate growth is observed for both economies. Other regions inthe world experience a marginal decline inthe updated 2020 scenario compared to BAU growth, due to the bilateral tarif f reduction between India and LAC. This outcome is generally expected given the trade creation and trade diversion ef fects of trade reforms. The magnitude of impacts onthe various countries and regions dif fers, depending first on their size and comparative advantage (resource endowments) and also on other factors such as demand structure and distribution structure. In a global CGE model it is very dif ficult to predict gains and losses across countries/regions, although the expectation is that tarif f reduction between partner countries normally has a positive impact, while the other countries not involved inthe process will achieve either marginal gains or marginal reductions. Inthe current study (LAC-India, Table 6), we found an output gain for all countries inthe world at 2015, but a loss for all countries except India and LAC at 2020. Part ofthe reason is that LAC and India’s positive output growth is not suf ficient to compensate for negative growth experienced by other countries and this is reflected in total output growth (-0.65%).
ECD programs were found to have positive impacts on a great variety of outcomes, and some of participants are old enough to offer the possibility to estimate long-term impacts, although most of them are conducted inthe United States. Three well known projects that use randomized evaluations are the Perry Preschool Project, Carolina Abecedarian Project andthe Early Training Program. Participation inthe first program mentioned increases the years of schooling: participants have 11.9 years of schooling as opposed to 11 years for the control group, and also increases high-school graduation rates from 45 percent to 66 percent (Schweinhart et al 1993). There is also evidence of better performance on different tests at different ages. As regards to impacts on adult life, at the age of 40 it was found that program participants had median earnings more than one-third higher than non-participants, were more likely to be employed, had better criminal performance (measured by fractions of lifetime arrests and months in prison sentenced) (Scheweinhart 2005). The Abecedarian project had also a positive impacton achievement test scores and reduced the incidence of special education. An evaluation of another program, the Chicago preschool program, shows that the rates of school completion rose from 38.5 to 49.7 percent, dropout rates dropped from 55 to 46.7 percent, grade retention dropped from 32.3 to 21.9 percent andthe need for special education decreased from 20.7 to 13.5 percent (Reynolds et al 2001).
In table 5.5 we show the results of this simple exercise. The evidence supports the conclusions of section 3: pension systems in Argentina, Brazil, Chile and Uruguay have an important role in alleviating old-age poverty (given the assumptions of this exercise). In these four countries, those with overall poverty rates markedly higher than old-age poverty, the existence of pension systems with high coverage helps to eradicate poverty almost completely among the elderly. The strongest impact occurs in Brazil: while only 3.7% of Brazilians older than 60 are poor, 47.9% of them would be poor without pensions (keeping all the rest constant). The situation is very similar in Argentina: while poverty among the elderly is low (4.5%), the situation would be different without social security: old-age poverty would reach a level of 39.5%. In Chile and Uruguay, two countries where poverty among the elderly is very low, pension systems contribute to decrease old-age poverty in almost 20 points. Inthe remaining countries, with the exception of Mexico and Venezuela, theimpactof pension systems on poverty is low. This is an expected result, considering the very low coverage of pension systems in these countries. Tables 5.6 and 5.7 display the results ofthe same exercise for urban and rural areas, separately. The main finding is not surprising: theimpactofthe pension systems on poverty is higher inthe cities than inthe countryside, due to the higher coverage of pension systems in urban areas. The results presented in Tables 5.5 to 5.7 are robust to the definition ofthe elderly.
The 1993 World Development Report was dedicated to health. A team of experts was specifically designated to draft it, as is the norm for such reports, different from the previous document that was an initiative by specific technicians. In this document the World Bank adopted a pragmatic approach explicitly directed to prescribing health sector reform. It was the result of dense negotiations involving technicians from the drafting team, their superiors, other World Bank technicians, and donor agency managers, as well as other institutions ofthe international community (Mattos, 2000:228). The World Development Report: Investing in Health (World Bank, 1993) analyses the health indicators available inthe various countries, which were evaluated according to strictly economic parameters. It sets the scene for health policy reform, defining priorities onthe principles of cost-effectiveness and focalisation onthe poor. It introduced new concepts and indicators into health sector planning, such as basic medical care service packages, the Global Burden of Disease, andthe DALY (Disability Adjusted Life Years), as more effective measures for priority-setting and defining intervention packages. The Bank then introduced an important shift in its social (including health) policy logic, making it explicit that the principle of equity was to be subordinated to cost-effectiveness, reduced public spending and services privatisation. It established that social policies should cease to be universal and play a merely compensatory role, that is, be directed only toward the poorest groups/sectors ofthe population. This gave rise to the formulation of selective and focalisation policies.
Interestingly, the trade balances after and during disinflations are not statistically diﬀerent. This result implies that the current account does not recuperate rapidly, i.e., monetary shocks seem to have long-lasting eﬀects onthe trade balance. For the 90s, that result is even more emphatic: during that decade, the trade balance before the disinflation is larger than after and that diﬀerence is significant, though only at the 10% level. In other words, the deterioration ofthe trade balance did not stop with the end of disinflations. Robustness: The last four columns of Tables 2 and 3 perform some robustness tests. Column (1) controls for exogenous shocks that might aﬀect the regional trade balance (for instance, the debt crisis ofthe early 80s) and are independent ofthe disinflationary shocks. To control for these exogenous shocks, we obtain for each country and year inthe sample the deviations of trade balance from the LAC annual median and repeat the tests ofthe baseline case using the transformed data. Column (2) verifies theimpactof excluding observations (inthe after and before groups) when the economies hit inflation crisis levels (40%), or when they coincide with the during part of an adjacent disinflation. Column (3) controls for the episode’s length —i.e. it only includes observations inthe during group up to year 3, and drops those between 4 and T. The strategy adopted up to this point was to include inthe during group any observation between 1 and T but this biases the sample against short episodes. Finally, (4) considers all the robustness controls — i.e., (1) through (3)— simultaneously.
Citizens´ demands for actions, programs and public policies are usually fluid, punctual and fragmented. Digi‐ tal environments make them easily accessible and available. The democratic qualityof their results or prod‐ ucts can be evaluated in terms of their extension and content. In other words, their qualityand legitimacy can be verifiable through indicators of their reach – meaning mostly the number of citizens, institutions and re‐ gions affected – and their penetration in formal political processes. Thus, citizens´ demands will have demo‐ cratic legitimacy if they produce identifiable outputs and outcomes. The concepts of output and outcome do not refer only to effects on public policies but include also various government actions – local or not –, institu‐ tional processes, laws and mechanisms related to the formulation of policies and projects in a broader sense. According to this conception, democratic legitimacy is stablished when a political system not only stimulates citizens´ inputs but also includes them inthe elaboration of laws, public policies and other government ac‐ tions. If that doesn´t happen, there is an absence of democratic legitimacy (Coleman, 2017).
Real exchange rate: Fischer (1988) shows that a real exchange rate appreciation typically reduces the SR through the favorable eﬀect of cheaper imports on consumer prices. Note that this eﬀect could be particularly important as far as explaining the results for the 90s, as the huge wave of capital inflows to the LAC countries during the first part of that decade appreciated many currencies inthe region (Calvo et al, 1993). Onthe other hand, it could also be the case that the real exchange rate aﬀects the behavior of output. The empirical evidence for the LAC countries concerning the eﬀects ofthe RER on economic activity is mixed. Some authors (e.g., Rogers and Kamin, 1997) claim that real devaluations have led to economic contractions, while others find that it has had a positive impacton economic activity (e.g., Galindo et al, 2005). Nevertheless, notwithstanding the direction in which the real exchange rate aﬀects economic activity, this channel should not impactthe true SR— i.e., it should not aﬀect the gap between trend and actual output caused by the disinflation.
Diego I. Rodríguez, G. Anríquez, and J.L. Riveros. 2016. Food security and livestock: The case ofLatinAmericaandtheCaribbean. Cien. Inv. Agr. 43(1):5-15. The main hurdle to achieving food security inLatinAmericaandtheCaribbean is the inability of many poor families to access the foods necessary for a healthy diet, in a context in which food prices and family incomes are fundamental determinants. Animal husbandry plays a key role inthe food security ofthe region, providing products rich in high-quality proteins and micronutrients and is vital for millions of households that depend on livestock for their livelihoods to generate income and have access to basic services. Furthermore, the production and trade of livestock products contributes to the stabilization ofthe food supply, acting as a buffer during economic crises and disasters both at the individual and community levels. Small farm agriculture is especially important in this scenario, given that most ofthe production of foods of animal origin depends on this sector and that the majority ofthe 47 million people who suffer from hunger in our continent live in rural areas. In this complex scenario, a good understanding ofthe interrelations between food security andthe livestock sector, both at the national and household level, is fundamental for the design and implementation of policies that strengthen family livestock production as an essential pillar in regional food security.
In a nutshell, this non-parametric technique searches for firms with similar features in crucial observable aspects (in our case, we restrict this set to size, tangibility, market-to-book, and return on assets inthe pre-crisis 2003-2007 period). Then, we take the long- to short-term debt in 2007.4 (before the full-blown crisis was in motion), and form two groups of firms: High (inthe upper 30% of all firms) and Low (below the upper 30%). Results are reported in Table 11, where we also replicated the analysis for the interest rate paid for by these corporate borrowers (the hypothesis is that the larger the ratio of long-term debt, the less sensitive the average interest rate should have been to the crisis, all else equal). The table indisputably reveals no significant difference inthe growth rate of real fixed assets (and neither inthe interest rate) between these two groups inthe aftermath ofthe crisis. This conclusion is robust to changes inthe matching method, the cut-off ratio (other than 30%, we tried with 20%, 40% and 50%), the set of observable variables, andthe crisis time window. This provides additional evidence on a soft impactofthe crisis onLatinAmerica.
About this process, Brüggemann et al. (2013) indicate that research onthe potential impactofthe adoption oftheIFRSinthe EU is still in its early stages and requires closer scrutiny in order to assess its costs and benefits. Likewise, these authors stress that there are two types of consequences for the EU economy derived from this regulation: the expected and unexpected effects. With reference to the expected effects, other studies have focused ontheimpact that theIFRS have had (not only in Europe, but also in other parts ofthe world) onthequalityoffinancial information, using “earnings management” (EM) as a proxy in this regard (Barth, Landsman & Lang, 2008; Callao & Jarne, 2010; Cang, Chu & Lin, 2014; Doukakis, 2014; Jeanjean & Stolowy, 2008; Pelucio-Grecco, Geron, Grecco & Lima, 2014; Soderstrom & Sun, 2007; Van Tendeloo & Vanstraelen, 2005; Zéghal, Chtourou & Sellami, 2011). The concept of EM, or earnings management, assumes that there is a certain amount of discretion onthe part of management when it comes to preparing financial information, which enables them to alter the perception that external users ofthefinancial reports, investors or creditors, have about a company’s results (Healy & Wahlen, 1999). A priori, for this research it is not clear whether theIFRS can boost or hamper EM, given that the effects generated against earnings management by high- qualityfinancial reporting standards, such as theIFRS, can be undermined by the use of fair value and greater flexibility that are permitted by these standards (based on principles) (Aisbitt, 2006; Callao & Jarne, 2010; Cang et al., 2014; Doukakis, 2014; Soderstrom & Sun, 2007). In this regard, different empirical studies onthe topic offer different conclusions, and therefore there is no unanimity as to whether theIFRS have a positive or negative impacton EM, and consequently onthequalityand transparency offinancial information. In this regard, as Brüggemann et al. (2013) explain, the contradictory results in this literature can be conditioned by factors that emanate from the research methodology design.
Over and above the theoretical arguments for and against microfinance, much ofthe buzz about the industry is rooted in successful case studies. Although such small samples suffer from evident selection bias, it is nonetheless a useful starting point to identify some of their crucial singularities and draw lessons for the future. Ten case studies inthe field from different countries in LAC are examined: BancoEstado y Bandesarrollo (Chile), Compartamos (Mexico), BancoSol, Banco Los Andes y FIE (Bolivia), Crediamigo (Brazil), Banco Caja Social (Colombia), Credife (Ecuador) y Mibanco (Peru). The choice was not guided by any particular criterion except for the fact that they are all matured projects and list among the 100 largest MFIs inthe region –with a share of 26% of total clients and 34% of portfolio within this group as of 2006-, making them highly representative examples. Their very success has attracted the attention of a number of scholars –the list of studies the following analysis is based on is at the bottom of Table 15, where some major characteristics of each program are summarized.
The aim of this paper is to present an historical compendium of ISTEC’s activities inthe region, highlighting its core ideas and principles, and how these have been successfully applied for the benefit of many higher education institutions. These aim at dynamically improving thequalityof quant coveraand access to of education inLatinAmerica. They reflect ISTEC’s multidisciplinary approach, based on entrepreneurial activities, not only to educate engineers but to produce the next generation of leaders the region needs. LatinAmerica must be placed inthe world map of education, innovation, generation of wealth and intellectual property with a strong sense of social responsibility. Due to the nature of ISTEC’s members and strategic partners, the consortium can leverage and balance the influence of academia, industrial partners and government bodies to make the “Triple Helix” work for the benefit of our peoples in general, across geographical, cultural and social borders.
Although the urgency ofthe early eighties removed financial liberalization from the immediate policy debate, it reappeared onthe agenda of conditionality that accompanied the external debt negotiations. This link became clear inthe mid- eighties with the appearance ofthe adjustment-cum-growth Baker Plan. Since then, coordination between the IMF, the World Bank, and other agencies has increased andthe Washington Consensus has become more clearly defined. Even so, capital market liberalization was of secondary relevance inthe eighties. The history ofthe economic performance during that period - especially in Argentina, Brazil, and Mexio, the largest economies inthe region - is basically about a sequence of attempts and failures of comprehensive macroeconomic stabilization programs. Inflation andthe balance of payments were stabilized for some time before new destabilizing trends required further adjustments and stabilization measures. There were huge real fluctuations around a stagnant trend. Variations inthe institutional framework ofthefinancial sector were of secondary importance compared to these cycles.
Table 6.9 illustrates the high correlations between institutions and conflict inthe LAC context. Countries which succeed in developing an environment in which fair and predictable rules form the basis for economic and social interactions are those with less conflict and corruption. One interesting finding is that the variable that measures the degree of institutionalized democracy is not significantly correlated with the control of corruption. This could be due to the fact that institutionalized democracy is related to some institutional process, like for example voting, but it does not take into account the informal constrains that shape the way democracy actually works. Democracy in LAC is today much more common than what it used to be, and without any doubt this was an enormous step forward for the region. But having to vote every now and then, having a constitution that protect freedom and private property, and having a constitutional separation of powers does not mean that democracy is working as it should.
Telemedicine or “remote-presence healthcare” has excited some clinicians for more than a decade. With telemedicine technology, it is possible in principle for a patient inthe provinces to be “treated” by a physician inthe city – at least in principle. But the question whether optimism about such technology is well placed inLatinAmericaandtheCaribbean is difficult to answer. Dr. Sergio Litewka, an Argentine surgeon, addresses these and other issues in “Telemedicina: Un Desafío para América Latina”. He is less than sanguine about the prospects, suggesting, ultimately, that, “Que la telemedicina sea un hecho positivo o un experimento lamentable en América Latina depende, en mucho, de los juicios y los valores que prevalezcan en las discusiones de cada sociedad y del modelo de
The second article “Approach Based on Real Evidence on Crime and Urban Design, or How Do We Get Vitality and Environment Sustainability and Security at the Same Time? By Bill Hillier y Ozlem Sahbaz. It questions the deeply rooted beliefs on spatial design and security. Maybe, the most relevant argument developed inthe article is related to ‘security in numbers concept’ that confronts the design for small groups’ belief in low risk communities. The evidence shown inthe research, using Hillier’s Space Syntax methodology argues that the benefi ts of a residential culture are more evident in big groups than small ones.