Dr. Chun-Chien Kuo
Department of International Business, National Taipei University of Business, Taiwan.

ISBN 978-93-91595-07-4 (Print)
ISBN 978-93-91595-06-7 (eBook)
DOI: 10.9734/bpi/mpebm/v5

This book covers key areas of economics, business and management. The contributions by the authors include balanced budget, multiplier, fiscal policy, disposable income, marginal propensity to consume, permanent income hypothesis, steady state consumption, steady state growth rates, stylized facts, corporate governance intelligence, minority shareholders rights, corporate governance, financial and economic security system, corporate strategic intelligence, COP21 process, Implementation theory, management, reneging, de-carbonisation, energy-environment conundrum, international financial standards education, staggered wage model, time-consistent steady inflation, discounting, micro foundation, benchmark model, external debt, critical political risk, financial crisis, capital structure, entrepreneurial perspective, telecommunication base station, health risk, property values, residents’ perceptions, chi-square test, central banking, financial crises, inflation targeting, great recession, online shopping, customer satisfaction, cognitive game theory, recession, economic crisis, consumers’ behaviour, consumers’ spending, governments’ bailout plans, expansionary fiscal policy, government decision making, government policy analysis, public policy analysis, international and Arab organizations, food supply chains, digitalization, organizational leadership, stress coping mechanisms and work life balance, consumer behavior, differentiation strategy, embodied cognition, behavioral experience. This book contains various materials suitable for students, researchers and academicians in the field of economics, business and management.


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Study on the Balanced Budget Multiplier

Samih Antoine Azar

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 1-6

This note has the purpose of deriving the balanced budget multiplier for disposable income. Under plausible conditions, it is demonstrated that this multiplier is equal to zero. This might explain the low level of empirical explanatory power of a balanced budget on aggregate output. The paper argues that a debt-financed government spending can be considered, under Ricardian equivalence, as a balanced budget fiscal policy. This also explains why the government spending  multiplier is empirically found to be significantly less than one, and closer to zero than to one, while expectations are that it ought to be higher than 2. In addition, the note contends that consumption will be unresponsive to a balanced budget fiscal policy, and may actually fall. This should resonate badly in the assessment of the current stimulus packages embarked by Western nation governments to prop up aggregate demand given the fallouts of the pandemic. The risks are high that the stimulus programs may turn out to be less effective than expected by policy makers.

A Study on the Permanent Income Hypothesis: A Case of 12 Stylized Facts

Samih Antoine Azar

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 7-13

This note’s contents depend on three estimates of the Marginal Propensity to Consume (MPC): a high measure, obtained from the long run relation between consumption and income, a low measure, obtained from the intermediate run of the MPC relation, and an actual measure, obtained from current values of consumption and income. The objectives are to find out the actual regularities in the statistical distribution and behavior of steady state consumption, conditional on the way the MPC is estimated. The note computes the implied steady state variables, and from there, high, low, and actual measures of the growth rates of consumption are recovered.  A scrutiny of the results reveals 12 stylized facts that are implied by the basic progress of the steady states. These facts encompass level links of the consumption series, their variances, and their growth rates, in addition to their statistical distributions. Therefore the note describes extensively the stylized facts that any model of the permanent income hypothesis needs to explain and corroborate.  

Corporate Governance Intelligence: Stakeholder-Related Approach (Evidence from Ukraine)

Tetiana Momot, Olena Filonych

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 14-22

The investigation of the corporate governance intelligence system as part of the complex stakeholder-related approach to the corporate strategic intelligence system(CSIS) is the subject of this research . In the corporate governance system, a special focus is placed on minority shareholder activism. Some existing methods of abusing minority shareholders' rights, used by joint-stock company executives, are generalised. There are recommendations for protecting the rights of minority shareholders. The importance of implementing a stakeholders-oriented approach to CSIS creation based on company security principles is demonstrated.

Policy Implementation and Management of COP21 Goals

Jan-Erik Lane

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 23-50

Policy implementation is often difficult to achieve, especially in a heavily decentralised structure, policy analysts like Wildavsky & Sabatier suggested. Now, the international community is going to guide a large number of governments or states towards the accomplishment of the COP21 objectives, although no governance mechanisms have yet been set up or identified. The implementation process for the COP21 Agreement must now start in order to have any chance of succeeding with its main objective of a 40% reduction in CO2 emissions until 2030. Actually, this process of implementation is expected to go on for the entire century, as COP21 promises a carbon free economy sometime after 2050. I argue that it is likely that many governments will only deliver small changes in emission decreases, but keep enough fossil fuel energy sources in order to maintain some positive rate of economic growth. Complete decarbonisation of entire societies is a figment of Sachs’ imagination concerning “sustainable development”. Thee management tasks in relation to the fulfilment of the COP21 goals are mindboggling.

The study looked at international financial standards education in Nigerian colleges of education in the southeast. The study was directed by three research questions and three null hypotheses assessed at the 0.05 level of significance. A four-point structured questionnaire with a reliability co-efficient of 0.79 was administered to sixty-two (62) accounting education lecturers in the area's colleges of education.The study questions were answered using the mean, and the hypotheses were tested using the z-test at a significance level of 0.05. It was discovered that accounting education lecturers are not all that IFRS aware, and that effective IFRS education could be achieved, among other things, by including IFRS in the curriculum, adequate funding, and amending relevant laws.It was suggested that NCCE incorporate IFRS into the accounting curriculum, that TetFund intervene in IFRS education, and that relevant laws be amended to accommodate IFRS.

Determination of Revisiting Staggered Wages to Consider Discounting

Patricia Bonini, Sergio Da Silva

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 58-63

The discount factor in the workers' loss function is ignored in the literature on staggered wages. Discounting, on the other hand, should be regarded as an additional microfoundation with implications for discretionary monetary policy. This study highlights that discounting in the model of staggered wages actually lowers the time-consistent steady inflation. We reexamine the topic and show that under the scenario of staggered wages, discounting reduces time-consistent steady inflation.

Analysing the New Manifestations of External Debt in Developing Countries from 2000 to 2019

Vu Thi Kim Hanh

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 64-76

The debt rescheduling cases have significantly increased in recent years as well. The author employs an analytical qualitative and quantitative method to examine the new forms of external debt in developing nations from 2000 to 2019, and the findings are as follows: (1) Trends in external debt by country group, (2) External debt stocks of PPG long term debt, PNG long term debt increased between 2000 and 2019. (3) Between 2000 and 2019, the external debt stock as a percentage of GDP dropped, while PNG long and short term debt rose somewhat.  ((4) In both 2018 and 2000, East and South-East Asia and Oceania and Latin America and the Caribbean exchanged first and second place in terms of largest amount, (5) Between 2000 and 2019, the highest amount of debt carried by SIDS was debt servicing on long-term external PPG. (6) In 2000 and 2021, the redemption schedules of both high-income and low- and middle-income countries increased the amount of redemption from around 2 to 2.32 trillion USD and 0.67 to 1.07 trillion USD, respectively. This demonstrates that they at least have a plan in place to resolve their external debt.

Impact of International Rating Agencies in Iberian Private Companies

Vasco Soares, Sónia Carvalho, Mafalda Mendes-Ribeiro

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 77-84

The impact of international rating agencies addressing political risk in Iberian private companies is a factor of the outmost importance for corporate decisions concerning capital structure and leverage, although not yet properly addressed in recent research. The financial crisis in the new millennium together with the notation of Portugal by international rating agencies raised issues about political risk impact in the financing of companies and how changes in political risk could affect the perception of the of managers about the capital structure of the companies. The time frame has been selected for incorporating recent and large financial crisis with an impact on the country’s political risk change, from 2003 to 2015. Starting with correlations between Leverage and variables Return on Assets, Return on Equity, Dimension, Tangibility, Sales Variation, Political Risk, and Critical Political Risk, the results were determined through an empirical investigation with a new econometric model. On the Credit Rating Agencies' notations, Critical Political Risk is a dummy variable. We analyse the problem of how this notation affects domestic Political Risk and affects enterprises' capital structure, taking into account the influence of this international notation. Our premise was supported by evidence: when political risk rises, leverage began to decrease. Further study interests include determining how CPR affects each firm, calculating risk per company, and analysing the impact of Rating Notation on financing decisions in private companies from the Iberian Market.

Determining the Importance of SOP in a Family Business from the Entrepreneurial Perspective

Charly Hongdiyanto, Wendra Hartono, Gracia Ongkowijoyo

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 85-93

Plastic industry is a growing sector, therefore UD X which engage in this business has a great potential to grow as well. The problem faced by this family business company is that no standard operating procedure is used and it lead to problem in the quality and quantity produced, which from an entrepreneurial point of view, this is very important. This research is aim to create a production standard operating procedure for UD X, thus, this family business can carry out company activities properly. Semi-structure interview is used to gather information from respondent to help writer create the SOP. There are four SOP’s created, namely: classifying SOP, sorting SOP, milling SOP and packing SOP.

Determination of Residents’ Perception on Health and Residential Value from Telecommunication Tower

Norazmawati Md. Sani, Ahmad Fahmi Lim Bin Abdullah, Kai Xin Tay

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 94-102

In last decades, due to the cellular phone systems and the rapid increase in the number of users of cellular phones, a growing concern about the possible health hazards has increased among public and scientists, particularly exposure to Electromagnetic Field (EMFs). The objectives of this research are to determine the residents’ perceptions on the health impacts of telecommunication base stations in Malaysia and to examine its impacts on property value. Data from a face-to-face survey conducted in all states of Malaysia (N=509). The respondents were required to complete a standardized questionnaire that focused on the relevant psychological and psychobiological reactions measurement. Stata Software was used for statistical analysis using the Chi-square test with Fisher’s exact and binomial logistic regression. The result shows that only one health symptom headache was statistically significant for both residents who live near to base station (<300m) and those living far from base station (>300m). The findings reveal that appearance of telecommunication tower is not influence the property price except one health symptom fatigue. The recommendations are also outlined in this paper.

Central Bank Independence and Inflation Control: Alternative Monetary Strategies

Mehdi Monadjemi, Kyung H. Yoon, John Lodewijks

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 103-110

Before the Global Financial Crisis (GFC) central bank independence was a popular topic among those who favoured price stability.  A conservative central banker, without being influenced by the economic policies of the government, can maintain price stability.  The response of central bankers to the GFC seems to indicate different approach to monetary policy strategy. The empirical results using the Engel Granger cointegration technique for five countries show that persistent cointegration of series from 2000 until 2006-2007 did not continue in the latter part of the sample period. The purpose of this chapter is to examine the significance of changes in central banks’ monetary policy strategy.

Riding the Waves of Latent Herding Online Shopping Behaviour

Noor Azuan bt Hashim

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 111-122

The Internet has grown tremendously in the recent and many of its applications have been used by people all over the world. Online shopping which is a recent phenomenon in the field of electronic commerce (e-commerce) is definitely going to be the future of shopping in the world, particularly during and after the coronavirus disease 2019 (COVID-19) outbreak. It seems that online shopping has been one of the ways that customers shop nowadays especially to the younger generations and working people. Most of the young working people have accessed to the internet due to its ubiquitous and many have started to sell and buy online. Though online shopping is quite common now, its growth in Malaysian market is still not in line with the global market. The potential growth of online shopping has triggered the idea of conducting an exploratory study on online shopping in Malaysia. A survey was carried-out with 168 part-time students who work in Klang Valley area and also currently study in Universiti Kebangsaan Malaysia (UKM). The purpose of this study is to find out how well they understand about online shopping and what factors contribute to their online shopping behaviors. The results of study reveal that customer satisfaction, motivation and influence from other buyers are among the critical factors for customers to shop online. Respondents since to mimic other customers in buying online. The results of the study could be further used by the researchers and practitioners for conducting future studies in the similar area.

Consumers’ Behaviour toward Government Policy Decisions a Cognitive Game Approach – Theoretical Analysis

Ghada Gomaa A. Mohamed

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 123-128

This manuscript presents a theoretical cognitive game approach to analyze the potential behaviour of consumers as a reaction to a government bailout plan at times of big recessions.

The research found that the win-win situation only achieved when consumers trust the government policy to expand the economy.

Study on the Economy and Food Security in the Arab World in the Midst of the Corona Crisis

Alexe Eva, Plesoiu Marius Daniel

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 129-138

The Corona pandemic as bad as it seen can opens an opportunity for the revival of local agriculture and fill a large part of food shortages in which demography along with other factors plays a major role key by saving the informal Employment on the black market that surround major cities in the Arab World inhabited by tens of millions who went from their countryside to big cities in search for a better life. This in itself constitutes a rare opportunity for all governments in the Arab World helping to stabilize the rural population by making them a source in providing food security, not to add that this would reduce congestion and pollution and considering  that the Arab states are, by virtue of their geographical location, among the dry areas with fragile ecosystems we can think of: investing in modern technologies, following the recommendations made by the experts, using rainfall skyscrapers, converting buildings into power generators, applying vertical farming, innovation for afforestation of deserts, taking into account the local experiences, and using biodiversity by cultivating many new plants proven their feasibility without ignoring the food chains supply, the geopolitical importance and digitalization as a new approach in the public-private partnership.

Cultural Effects on Leadership: A Study of Dispositional Resilience in Societies

Shawn G. Sejera

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 139-151

An study of dispositional resilience in cultures and its relationship to leader effectiveness is provided, beginning with an introduction to the study's research problem, research question, dispositional resilience theory, different dimensions of culture and society, theoretical foundations of the variables through a definition of terms, literature review, a discussion of research methods and instrumentation, future analysis implications, and a conclusion. The objective of this study intended to refine and further the understanding of dispositional resilience as it relates to leadership in different and disparate cultures. Specifically, this study sought to empirically measure the levels and determine the relationship of dispositional resilience in Latin American, Latin European, and Confucian country clusters. The study looked at the degrees of dispositional resilience traits in different cultures and how those traits affect leader performance. The data was analysed after a review of four studies, three of which looked into the impact of dispositional resilience on practitioner performance and stress levels. The Dispositional Resilience Scale (DRS) was found to be a valid and reliable instrument for measuring individual dispositional resilience (hardiness and resilience), and the GLOBE Study was found to be a viable and reliable framework for examining different cultures. The study found a statistically significant difference between Confucian country cluster students and Latin American and Latin European country cluster students using the One-Way ANOVA technique. Future research implications are highlighted.

Stress is a physical, mental, and emotional reaction that occurs as a result of an individual's reaction to environmental pressure. The stress coping mechanisms of employees in the Information Technology sector are investigated in this paper. This study addresses the numerous elements that create stress among IT sector employees, as well as the various coping mechanisms used by IT sector employees to manage stress and preserve work-life balance during their employment. For this study, a descriptive research design was used, and both primary and secondary data were used to derive results. The sample size for this study was set at 120 people, with respondents chosen from four different IT organizations in the Hyderabad area. The data was gathered using a structured questionnaire, and statistical analysis was carried out using the Chi-square test and ANOVA. The result revealed that there is a significant mean difference between the respondents' age factor and the stress coping strategies they use to balance their work life.

Study on Experience Differentiation Strategy (2): Focus on Embodied Cognition and ACT Module

Shin’ya Nagasawa

Modern Perspectives in Economics, Business and Management Vol. 5, 20 August 2021, Page 158-164

In a mature market like the Japanese economy, “experiential marketing” has received attention as a “differentiation strategy.” In this study, we focus on behavior experiences (ACT Module of SEMs) in terms of “embodied cognition.” Behavior experiences (ACT Module) are consumers’ behaviors and the physiological/psychological effects of such behaviors. The results show that two factors lead to behavior experiences (ACT Module): 1) design products that comprise elements that lead to consumer behaviors, and 2) design situations that involve factors that lead to consumer behaviors. We also show that special behavior experiences can be evoked by creating illogical or unusual situations. These ways of thinking will help marketers understand consumers’ behavioral experiences and use ACT for marketing from the perspective of customer experience.