The World Economy at COVID-19 Quarantine: Contemporary Review
Issue:
Volume 8, Issue 2, April 2020
Pages:
63-74
Received:
13 April 2020
Accepted:
30 April 2020
Published:
27 May 2020
Abstract: Like the previous pandemics, Coronavirus (COVID-19) pandemic is first and foremost a public health threat, but it is also, and increasingly, an economic threat. On the other hand, the economic impact of a pandemic may not be long- lasting if the underlying cause is contained quickly. Currently the world is seriously affected by COVID-19 outbreak. Considering the evolving nature of the situation, it is too early to estimate the full impact of COVID-19 on the world economy, but many articles have been published and made available to the public on the actual and potential economic consequences of COVID-19. Most of them consider the partial economic effects of COVID-19 on different economic perspectives. Therefore, the general objective of this contemporary review is to prepare the bases for future solution by collecting and analyzing the results of previous articles and contextualization’s of their needs. The result of the review depicts the significant actual and projected impacts of COVID-19 on major macro-economic variables like: economic growth, unemployment and poverty level. Besides, the review also reflects the sectoral impacts of COVID-19 on manufacturing, service, trade, tourism & aviation and education sectors of the world economy.
Abstract: Like the previous pandemics, Coronavirus (COVID-19) pandemic is first and foremost a public health threat, but it is also, and increasingly, an economic threat. On the other hand, the economic impact of a pandemic may not be long- lasting if the underlying cause is contained quickly. Currently the world is seriously affected by COVID-19 outbreak. C...
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Identifying Effects of Information Asymmetry on Firm Performance
Issue:
Volume 8, Issue 2, April 2020
Pages:
75-83
Received:
12 July 2018
Accepted:
26 September 2018
Published:
28 May 2020
Abstract: There is a lot of information asymmetry in the market today. Sellers in most cases have superior information over buyers and as a result beat market logistics to make as much profits as possible at the expense of buyers. Information asymmetry among market participants translate into high transaction costs and lower liquidity in the markets. Having superior information over other market participants lead to unfair competition in the market, especially in the stock markets due to insider trading. In a firm set up, I. A occurs when a manager in charge of planning and implementation of important decisions for achievement of firm’s objectives has superior information over owners, who are shareholders of the company. Managers are at discretion to make decisions without necessarily involving inputs from shareholders of the firm because they are charged with full responsibility of running affairs of the firm. This paper analyzes and tests effects of information asymmetry on firm performance at a micro-level. We analyse this paper using panel data, precisely financial statements from companies listed on the New York Stock market for a period of ten years. Using the same data we regress the model to estimate the effect level on firm performance. Fixed effects test is estimated and inference is based on significant level or p-value thus likely that less than 0.05 is rejected at a 95% confidence level, less than 0.01 is rejected at 99% confidence level and less than 0.1 is rejected at 90% confidence level. The results however show that information asymmetry is significant at 10% indicating it has effect on firm performance. However on regressing return on assets on other variables, results indicate that information asymmetry is significant at both 5% and 10% significant level.
Abstract: There is a lot of information asymmetry in the market today. Sellers in most cases have superior information over buyers and as a result beat market logistics to make as much profits as possible at the expense of buyers. Information asymmetry among market participants translate into high transaction costs and lower liquidity in the markets. Having ...
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