8-Corporate Governance Practices in Emerging Markets: The Case of GCC Countries

Literature ReviewDifferent CG indices stomach been confirmed in the literature, broadly speaking depended on developed countries. But, very small-scale work has been carried out on the developing and developing markets. An attempts is carried out to launch know how of the uphill markets of Asia Especially existingized in oil base GCC countries.A little Interesting work has been carried out by ii professional bodies Institutional Sh atomic number 18holder Service (ISS) and Investors responsibility Research core (IRRC). Both, ISS and IRRC provide a large CG database which offers a complex euphony to analyses the general Quality of a firms CG. In this bea Important research i has been Done by La opening move et al. (1998), Klapper and manage (2002), Gompers Et al. (2003), De Toledo and Pillicer (2006), Brown Caylor (2006), loyal and Carvalhal-da-Silva (2005), Ananchotikul (2007), Garay and Gonzalez (2008), Daines et al., 2010Ibrahimpasic (2012) and Hassan (2012), ar amo ng others. A preliminary work CG was conducted By La Porta et al. (1998) to estimates the limits of that develops an anti-director rights Index to measure the degree of shareholder safety a cogitation Factor in CG in 49 countries around the world. The major power is calculated to know the bone marrow of six dummies that assume the survey Of 1 if a given form of shareholder protection is gratuity and 0 Otherwise.It is conclude that common fair play countries have powerful investor safety than civil law countries and that stronger investor protection is related to greater ownership Dispersion. Following the like lines, Klapper and Love (2002) constructed a weighted average CGI for 374 firms in 14 emerging countries on a scale of 0100. They conducted a firm level succeed completed by Credit Lyonnais Securities Asia (CLSA) but with only six ecesis Components out of the seven studied by CLSA to build the index.The factors studied are transparency, accountability, independence, management discipline, fairness and responsibility. The study indicated that countries having poor legal transcriptions, scored higher index in scathe of CG and companies intending to expand in the market with the help of extraneous credit have more chances of gain.To stick to better giving medication. Moreover, Klapper and Love that the countries listed in US stock markets shows respectable Governance. One more renowned and mostly use CG index the G-Index was established by Gompers et al. (2003) for 1500 large firms amid 1990 and 1998. They apply un-weighted index to compute CGI reprocesses IRRC data as an as weighted sum of 24 Shareholders rights practices across five characteristics delay, safety, voting, state and others.The index assigns a value of 1 for every attribute that refuse shareholder rights and 0 Otherwise. Results shows that good governance has a positivist Relationship with stock returns. In the same scenario, De Toledo and Pillicer (2006) established a go vernance chart for 97 non financial customary companies in Spain by maintaining a binary Scale. Based on 25 questions and the questionnaire prepared By Brown and Caylor (2006)Gompers et al. (2003) and Klapper and Love (2004) are considered to arrive at the CGI and Companies scoring 25 are assume to portray high governance Standards. A study by Leal and Carvalhal-da-Silva (2005) on Brazil established another milestone in index preparation related to emerging Countries. They prepared an un-weighted CGI for 131 firms listed in The Sao Paulo stock exchange from 1998 to 2002.Title11-Temporal farmer source and the Dynamics Relationship in the midst of hearty Tourism receipts, solid Income and Real Exchange Rates in MalaysiaLiterature ReviewThis study applies the limit testing Approach, error-correction modeling and Persistence profile to analyses the dynamic Relationship in the midst of objective touristry receipts, Real income and genuine exchange rates in Malaysia. The study is covering sample period 1974 to 2009. Finding of this study let out that a long term relationship subsist in amidst the variables.In short term finding are that no granger origin between actual income and certain touristry receipts, while doubled originator in the long run. In addition it has been found that unifacial causality running from true Exchange rates to real tourism receipts and Real income in both short- and long. The ultimate purpose of this study is to explore the temporal Granger causality and dynamic relationship between real tourism receipts, real Income and real exchange rates in Malaysia for the period of 1974 to 2009.Applied the bound testing approach and Granger causality Test in addition to variance decomposition, Impulse response procedure and Persistence profile analyses to achieve the purpose of this study. Major finding are, the spring testing Approach indicates the existence of a long-run Relationship between real exchange rates, real touri sm receipts and real Income in Malaysia. Second, to recruit the robustness of conclusion, it engages three long-run estimators, Namely ARDL, DOLS and FMOLS to Estimate the long-run elasticitys.Real income and real exchange rates have a compulsive and significant effect on real tourism receipt in Malaysia. Third, the Granger causality Test is used to investigate the direction of reason between the variables. In the short term, in that location is unidirectional Granger causality running from real exchange rates to real tourism Receipts and real income, but no Granger Causality between real tourism receipts and real Income.Therefore, in the long-run, we find bidirectional Granger causality verification in between real income and Real tourism receipts, but a Unidirectional Granger causality running from Real exchange rates to real tourism receipts and real income. Fourth, by from using the Granger causality test, we consider variance Decomposition and desire response function to find out the reaction of each variable either it is attributed to its own shock and to the shocks in other variables in the system.It is in like manner called as the variable specific Shock. In describing shocks to real tourism Receipts in Malaysia, real income is more important than real exchange rates. Meantime, real exchange rates and Real tourism receipts are equally necessary in describing shocks to Real income. The urge reply of function discontinue that shocks to real income and real exchange Rates have significant positive impacts on real tourism Receipts in the short- and long-term.Further, shock to real tourism receipts has a Positive effect on real income, while shock to real exchange rates has a contradict effect on Real income in Malaysia. It is concluded that, persistence compose showed that the real tourism receipts System is stable and valid as the profile Declines sharply towards the equilibrium within a period almost three years after a system-wise shock. Thi s affirms that the Trivariate co integrating system used in this Study is logical.For policy-making, we could mention at least dickens significant policy indications from the findings of this study. First, tourism is the long-term source for economic growth in Malaysia as the Granger Causality results propose that real income and real tourism receipts have bidirectional causality.Title12-Corporate ownership, governance and revenue avoidanceAn interactive effectsLiterature ReviewThe fact is that evaluate incomees deductions from the interchange flows available to a firm, and in that locationfore the dividends distributable to the shareholders, propose that firm owners would attempt to accession their wealth through various taxes to keep away from these Practices. Such types of advantages of deepen cash flows from tax avoidance practices are ingenious with certain Non-tax costs. This unavoidable the costs/benefits considering of such type of practices and the choice of tax avo idance if the pertain outweigh the linked costs.Therefore, the benefits and the associated costs with unified tax avoidance are discussed here. Prior to explanation, little awareness are provided on the meaning and measures of corporeal Tax avoidance to give proper ground for the discussion in detail. The embodied tax avoidance lacks universal definition as it strength connote different thing to different People (Hanlon Heitzman, 2010137).The reality is that there is significant tax impacts on all settlement of a Company, meant to enhance its profit, could account for such shortness of universal definition. , they have different definitions of corporate tax avoidance put up by researchers in present times (for a review of these definitions see Salihu, Sheikh Obid Annuar, 2013 Salihu 2014). Here, explain corporate tax avoidance as a decrease the clear excommunication corporate tax liabilities.This definition is in line with Hanlon and Heitzman (2010) It explains tax avoidance as a continuum of tax arrangements policies where something like municipal bond Investments are at one side (lower explicit tax, perfectly legal), Therefore , the terms Such as tax management tax planning tax sheltering and tax aggressiveness are exchangeable used with tax scheme in the literature (see for instance Chen et al. 2010 Lanis and Richardson, 2011 2012 Minnick Noga, 2010 Tang Firth, 2011).Similar to its definition, there have been many ways of corporate tax avoidance used in the prior Literature. These ways are mainly depended on the estimates from the financial statements and could be categorized into three classes/groups. The first group adds those measures that examine the tidy sum of the gap between book and Taxable income. All these consist of check book-tax gap residual book-tax gap and tax-effect book-tax gap.The Second group has to take up with those establish the evaluate the proportional amount of taxes to business income. All these having hard-hitting tax rates (this comes in several variants like accounting ETR veritable ETR cash ETR Long-run cash ETR ETR differential ratio of income tax expenditure to run cash flow ratio of cash taxes Paid to operating cash flow).The third group comprises other measures such as ex gratia permanent difference of opinions (PERMIDIFF)/DTAX unrecognized tax benefits (UTB) and tax shelter estimates. Other than this overplus of measures of corporate tax avoidance used in the tax literature, its conformist aspect remains un-captured as most of the measures are computed based on items that are affected by accrual accounting Procedures.To this part, Hanlon and Heitzman (2010) proposed a measure for conforming tax avoidance as the Proportion of cash tax paid to operating cash flow. Salihu, Sheikh Obid and Annuar (2013) documented the significant difference of this measure from other similar measures. This study suggested the use this measure for the empirical investigation given the context of the stu dy.