Vol 5, No 1 (2022)

Table of Contents

Open Access
Original Research Article
Article ID: 803
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by Azaher Molla, Chunhuei Chi
Financ. Stat. J. 2022 , 5(1);    1775 Views
Abstract Essential healthcare is a civil right. Payments toward healthcare is a moral compulsion, and no less strong than legal compulsion like income tax. Healthcare payments can redistribute disposable income. Redistribution may be vertical (from rich to poor or opposite) and horizontal (from men to women or from households without children to households with children). Health planners are interested in degrees to which redistribution occurs. In this paper, we aim to analyze how well different forms of healthcare payments in Bangladesh redistribute disposable income. Our data comes from Bangladesh Household Income and Expenditure Survey, 2010. Using the methods developed by Aronson et al. (1994), we assessed average rate effect, progressivity, horizontal equity and re-ranking. The results suggest that Bangladesh health systems finance has a pro-rich redistribution of disposable income. Post-payment disposable income decreases for the poor and increases for the rich. As a result, the poor are in a shortfall in disposable income, which ultimately get them to impoverishment, and or push them to deeper poverty. On the contrary, the rich become richer due to increase in post-payment disposable income. This leads to an increase in inequality.
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Open Access
Original Research Article
Article ID: 829
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by Manuel Meireles
Financ. Stat. J. 2022 , 5(1);    1793 Views
Abstract In the fields of Management and Economics, there are many studies that have made use of the degree of concentration of a market or industry, especially when dealing with subjects such as industrial concentration. However, these indexes do not adequately present the level of significance. This problem is overcome by the proposed KSG indicator based on the Kolmogorov-Smirnov test and whose interpretation of significance is given by Goodman. Hence the name: KSG. The proposed model uses non-parametric techniques to establish the dimension of concentration and defines the level of significance of the value found. This is a quantitative study using parametric statistics (polynomial regression) on data generated through simulation. In each data simulation, for the given value of n companies, the share of Company 1 is made to vary, with the other shares being maintained unchanged. For each simulation, data related to values of "Share of Company 1" were extracted and corresponding indexes: KSG, CR4, CR8 and HHI. The results show that the indicator proposed in this study is fully justified.
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Open Access
Original Research Article
Article ID: 942
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by M.V. Shivaani
Financ. Stat. J. 2022 , 5(1);    1698 Views
Abstract The study attempts to explore the relationship between riskgovernance structure and firm performance. In perhaps the first of its kind attempt, a normative framework for risk governance structures is being put forward. Based on the framework, an index indicating strength/quality of risk governance structures is proposed. Then, the impact of risk governance structure on firm performance is gauged. To this end, the study makes use of constituents of S&P CNX500 index and covers a ten year period from April 1, 2005 to March 31, 2015.To control for potential endogeneity among variables of interest, the study makes use of a robust and reliable methodology,‘ difference-GMM’ . In addition, to ensure completeness of results, the study employs control variables such as recession dummy, firm’s age, size, and growth rate and leverage ratio. The results suggest that robust risk governance structures do not necessarily lead to better firm performance. In fact, risk governance index is negatively related to both ROA and ROE. The relationship is not statistically significant but has wide economic implications. A prominent implication being, mere constitution of risk management committee and appointment of CRO will not improve firm performance; regulators and companies need to ensure that governance structures are not too rigid, excessively risk averse and ineffective and inefficient in decision making. Given the simplicity and reliability of the proposed risk governance index, and the recommendations put forth in the paper, the study is expected to be of immense utility in an important yet neglected area of risk governance.
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Open Access
Original Research Article
Article ID: 1057
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by Huishan Lee, Zhen-Jiang YONG, Qiao-Ming LIM
Financ. Stat. J. 2022 , 5(1);    4711 Views
Abstract This study aims to investigate the effect of continent and initial GDP per capita level of a country on the relationship between insurance activities and economic growth. This study considers panel data consists of 123 countries from 1967 to 2014. Both static panel model and dynamic panel model are used to evaluate the effect of both continent and initial GDP per capita level of a country to the economic growth. The findings show significant causal relationship between insurance development and economic growth. However, the relationship is varied in different countries due to different initial income levels and locations. The effect of insurance development on economic growth of a country is indirect because it depends on the performance of the investment of insurers. Therefore, policymakers should consider their own country’s special characteristics when formulating a policy. Policymakers should clearly understand the nature of their insurance sector such as interconnectedness between financial sector and insurance sector, whether to promote insurance sector to grow their economy. By understanding the effect of continent and the initial GDP per capita level, policymakers could formulate and implement more effective policies on their country’s insurance sector to ensure the prosperity of the country’s economic growth.
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Open Access
Original Research Article
Article ID: 1074
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by Xu Jie
Financ. Stat. J. 2022 , 5(1);    1132 Views
Abstract In the process of economic development, influenced by many factors, this paper establishes a regression model between capital stock and financial development under the influence of endogenous growth theory to analyze the change of capital stock in the process of economic growth. It is found that financial development plays a greater role in the capital stock, and the role played by financial markets is weaker than that of financial intermediaries
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