...the Gap of Per Capita Annual Income between Rural and City Households based on ARMA model Abstract This paper applies ARMA model into the analysis of the gap of per capita annual income between rural and city households from 1978 to 2011. Firstly, it builds up several ARMA models based on 1978-2009 data; and then predicts the income gaps of 2010 and 2011. Compared to the real income gaps of 2010 and 2011, this paper shows that ARMA model works well in this time series prediction. Keyword B-J model, ARMA model, per capita annual income of rural and city households 1 Introduction With the rapid development of the China economy, people’s life levels are rising year after year. However, there’re many social problems in the booming economy, such as the income gap between rural and city households. The increasing gap of per capita annual income between rural and city households has been a heat topic in the society, since it may result in the inequality in the social welfare distributions. Also, it will discourage the rural households’ working efficiency and reduce their happiness. In order to deal with this social problem in a proper way, many researchers have been thinking about it and offering advice to the policy makers. LU (2004) says that the phenomenon of urbanization has an important effect on the income gap between rural and city households [1]. YAO (2005) analyzes the relationship between the unbalanced financial development and the income gap of rural and city households...
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...Air Asia: The World’s Lowest Cost Airline Air Asia is a Malaysia-based low cost airline which builds its business on the LLC model created by Southwest airlines in the U.S. Air Asia’s mission statement is to be the Asia's leading low fare no frills airline and first to introduce "ticketless" traveling. Now Everyone Can Fly clearly describes Air Asia’s value. Cost advantages created by Air Asia through operational effectiveness and efficiency go directly to the customers. The customers now enjoy much more surplus than before as the fare falls dramatically and Air Asia captures some of the ‘dead weight losses’ by capturing segments of customers that previously cannot afford the airlines’ fare. The cost drivers in the industry are scale, technology, product and process design, input costs, and capacity utilization. The nature of the operational structure of low cost carriers provides them with initial cost advantages. This lean cost structure translates itself into high turnaround time, basic amenities, standard operating procedures and a lean distribution system To maintain a low flight fare, Air Asia uses many sources of cost advantages. First one should be economies of scale. In many activities, increases in output do not require proportionate increases in input. This can be applied to the airline industry. Air Asia offers a single class, which allows more seats per plane. As mentioned in the case, the Boeing 737 can be equipped 12 more seats per plane in the single class...
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...Structures Decisions Ma. Cesarlita G. Josol MBA - Acquisitions Strayer University 1 DIVIDENDS, CAPITAL STRUCTURES DECISIONS 2 Use the following information for Questions 1 through 3: Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years and in 2013 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2014 earnings are expected to jump to $12.6 million, and Boehm plans to invest $7.3 million in a plant expansion. This one- time unusual earnings growth won’t be maintained, though, and after 2014 Boehm will return to its previous 8% earnings growth rate. Its target debt ratio is 35%. Calculate Boehm’s total dividends for 2014 under each of the following policies: Growth rate Net Income Dividend Dividend/Net Income Ratio Dividend/Net Income % 8% 2013 $9.8 $2.6 0.265306 26.5306% 2014 $10.584 $2.808 2014 $12.600 $3.34 QUESTION #1: Calculate Boehm’s total dividends for 2014 if its 2014 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Step 1: Find the dividend / net income ratio for 2013 Dividend/ Net Income Ratio = Dividend 2013 / Net Income2013 = $2.6 million / $9.8 million = 0.265306 Dividend/Net Income Ratio = 26.5306 % **The dividend/net income ratio will be used as the rate for the projection of dividends Step 2: Calculate the 2014 projected net income using the long-run growth rate for Boehm, which is at 8%. Net Income Projected 2014...
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...http://www.eco.uc3m.es/~jgonzalo/teaching/EconometriaII/cointegration.htm Cointegration and Error Correction Definition: If there exists a stationary linear combination of nonstationary random variables, the variables combined are said to be cointegrated. | | The old woman and the boy are unrelated to one another, except that they are both on a random walk in the park. Information about the boy's location tells us nothing about the old woman's location. | | The old man and the dog are joined by one of those leashes that has the cord rolled up inside the handle on a spring. Individually, the dog and the man are each on a random walk. They cannot wander too far from one another because of the leash. We say that the random processes describing their paths are cointegrated. | The notion of cointegration arose out of the concern about spurious or nonsense regressions in time series. Specifying a relation in terms of levels of the economic variables, say , often produces empirical results in which the R2 is quite high, but the Durbin-Watson statistic is quite low. This happens because economic time series are dominated by smooth, long term trends. That is, the variables behave individually as nonstationary random walks. In a model which includes two such variables it is possible to choose coefficients which makeappear to be stationary. But such an empirical result tells us little of the short run relationship between yt and xt. In fact, if the two series are...
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...Accounting for Leases Rae Girl ACC306 Intermediate Accounting II Professor Bill Wax August 21, 2015 Accounting for Leases Leasing is a commonly used financing vehicle in both personal and business arenas because the lease allows the parties to accomplish a sales-type transaction that benefits each without the commitment of an outright purchase on the part of the lessee. While the basic concept of a lease is simple, there are many complexities in theory and practice that have given rise to much discussion in the accounting profession. Still, leasing is a popular instrument and accountants must fully understand the methodology of decision-making and accounting for leases in order to properly reflect these transactions in a company’s financial statements. Simply defined, a lease is a contract between a lessor, the owner of an asset, and a lessee, the user of the asset. In other words, the lessor gives legal rights over the asset for a specified period of time to the lessee through a contractual agreement called a lease. The lessor retains legal ownership of the asset while the lessee has the right utilize the asset in business operations without having to purchase the asset outright. For this reason, in many instances, leases can be considered a financing vehicle. There are two basic lease classifications. The operating lease is a simple lease to account for because it is considered to be of the nature of a rental agreement. “The fundamental rights and responsibilities...
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...THE ACCOUNTING REVIEW Vol. 88, No. 2 2013 pp. 463–498 American Accounting Association DOI: 10.2308/accr-50318 Managerial Ability and Earnings Quality Peter R. Demerjian Emory University Baruch Lev New York University Melissa F. Lewis University of Utah Sarah E. McVay University of Washington ABSTRACT: We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations. The results are consistent with the premise that managers can and do impact the quality of the judgments and estimates used to form earnings. Keywords: managerial ability; managerial efficiency; earnings quality; accruals quality. Data Availability: Data are publicly available from the sources identified in the text. I. INTRODUCTION W e examine the relation between managerial ability and earnings quality. We anticipate that superior managers are more knowledgeable of their business, leading to better judgments and estimates and, thus, higher quality earnings.1 Alternatively, the benefit We thank two anonymous reviewers, Asher Curtis, Patty Dechow, Ilia Dichev, Weili Ge, Marlene Plumlee, Phil Shane, Terry Shevlin, Wayne Thomas (editor), Ben Whipple, and workshop participants at the 2010 Kapnick Accounting Conference...
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...affected the wages of male and female workers differently. Neoclassical theory implies that costly discrimination against female workers should diminish over time with increased competition (Becker 1971). We incorporate this idea into a theoretical model of competition and industry concentration in which the net impact of international trade on the gender wage gap could be positive or negative depending on the initial size of Becker’s discrimination coefficient. Our study tests the theoretical model using repeated cross sections of India’s NSSO household survey data merged with trade and production data from 1983 to 2004. We employ OLS and Fixed Effects techniques at the industry level to estimate the relationship between the male-female residual wage gap and measures of domestic concentration and international trade competition. Results indicate that increasing openness to trade is associated with a widening in the wage gap in India’s concentrated manufacturing industries. This result is consistent with female workers in India having weak bargaining power and a lower workplace status. They are thus less able to negotiate for favorable working conditions and higher pay, a situation that places them in a vulnerable position as firms compete in the global market place. Keywords: Trade liberalization, Gender wage differentials, India JEL Codes:...
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...solution SOLUTIONS TO EXERCISES AND CASES For FINANCIAL STATEMENT ANALYSIS AND SECURITY VALUATION Stephen H. Penman Fifth Edition CHAPTER ONE Introduction to Investing and Valuation Concept Questions C1.1. Fundamental risk arises from the inherent risk in the business – from sales revenue falling or expenses rising unexpectedly, for example. Price risk is the risk of prices deviating from fundamental value. Prices are subject to fundamental risk, but can move away from fundamental value, irrespective of outcomes in the fundamentals. When an investor buys a stock, she takes on fundamental risk – the stock price could drop because the firm’s operations don’t meet expectations – but she also runs the (price) risk of buying a stock that is overpriced or selling a stock that is underpriced. Chapter 19 elaborates and Figure 19.5 (in Chapter 19) gives a display. C1.2. A beta technology measures the risk of an investment and the required return that the risk requires. The capital asset pricing model (CAPM) is a beta technology; is measures risk (beta) and the required return for the beta. An alpha technology involves techniques that identify mispriced stocks than can earn a return in excess of the required return (an alpha return). See Box 1.1. The appendix to Chapter 3 elaborates on beta technologies. C1.3. This statement is based on a statistical average from the historical data: The return on stocks...
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...AVB 10-K 12/31/2013 Section 1: 10-K (10-K) Use these links to rapidly review the document TABLE OF CONTENTS PART III UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2013 Commission file number 1-12672 AVALONBAY COMMUNITIES, INC. (Exact name of registrant as specified in its charter) Maryland (State or other jurisdiction of incorporation or organization) 77-0404318 (I.R.S. Employer Identification No.) Ballston Tower 671 N. Glebe Rd, Suite 800 Arlington, Virginia 22203 (Address of principal executive office) (703) 329-6300 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: (Title of each class) (Name of each exchange on which registered) Common Stock, par value $.01 per share New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ý No o Yes o No ý Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve (12) months (or for such...
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...edition. Info What to expect from this course: An introduction to the discipline to prepare you for the proceedings of your Master To learn the “language” of the Business An overview of the topics in FA, MA and FSA “Course Limitations” Key questions What is the role of accounting? Accounting provides information. It measures business transactions and operations, “translating” them into numbers, in order to provide information. Why do we need to study accounting? Who are the user of this information? Why do we study accounting? To understand the world of business (and its language) To make better investment choices (resource allocation) To become advanced users To become advanced preparers … The “users” of accounting information Primarily “external” oriented Financial Accounting Managerial Accounting Primarily “internal” oriented Tax Accounting Primarily “external” oriented Financial Accounting and Reporting Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) Financial Statement / Annual Report Balance Sheet / Statement of Financial Position Income Statement / Statement of Comprehensive Income Statement of Cash Flows Statement of Changes in Equity Notes Statement of financial position: contents and structure STATEMENT OF FINANCIAL POSITION (current/non current criteria) Non-current assets Property...
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...Non-linear Effects of Fiscal Deficits on Growth in Developing Countries Christopher S. Adam and David L. Bevan(*) Department of Economics, University of Oxford August 2001 Revised December 2001 Abstract This paper examines the relation between fiscal deficits and growth for a panel of 45 developing countries. It finds evidence of a threshold effect at a level of the deficit around 1.5% of GDP. While there appears to be a growth payoff to reducing deficits to this level, this effect disappears or reverses itself for further fiscal contraction. There is also evidence of interaction effects between deficits and debt stocks, with high debt stocks exacerbating the adverse consequences of high deficits. Keywords: Fiscal deficits, growth, threshold effects, developing countries. JEL Codes: H3 , H6 , O4 The original version of this paper was prepared for the Cornell/ISPE Conference Public Finance and Development held at Cornell University, September 7-9, 2001. We thank our discussant, Mick Keen, conference participants, and also Jon Temple for helpful comments on the paper. Corresponding author: David Bevan (david.bevan@economics.ox.ac.uk) Department of Economics, Manor Road, Oxford OX1 3UL Tel: +44 (0) 1865 271075 Non-linear Effects of Fiscal Deficits on Growth in Developing Countries 1. Introduction A great deal of attention has been devoted in both theoretical and empirical literatures to the possible impact of various fiscal magnitudes on growth. In general, the theoretical...
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...industrial companies. In the 1990s, the old managerial and industrial economy was replaced by the knowledge and entrepreneurial economy. The rise of companies such as apple, Microsoft and Google exemplified entrepreneurial creation of wealth at the end of twentieth century(Phillips, 2011).The second decade of twenty first century begins virtually with all countries in the world implementing actively the promotion of economic development at state region, regional and national level. What made economic development to be on the focus in the past two decades of twenty first century is globalization and the rise of economic knowledge (Phillips, 2011). Economic development involves the improvement in quantitative economic measures such as employment, income, and...
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...Running Head: Omega Health Foundation Financial Evaluation Omega Health Foundation Financial Evaluation Financial Position of Omega Health Foundation (OHF) The principles of finance and OHF’s financial position are very important to any leader of the organization and not just the financial officer or director. This evaluation of OHF finances will explain the financial position of OHF and offer recommendations to strengthen OHF’s financial position. Included in the evaluation will be an explanation of the principles of finance and how they relate to OHF, a comparison of net incomes and cash flows, a comparison of the market value of an asset and the book value, the addressing of OHF’s strengths and weaknesses and recommendations to further strengthen OHF. Principles of Finance and how They Relate to OHF The principles of finance are an important aspect of OHF. Leaders of every department and not just the financial officer and director should be aware of these principles. These principles include financial viability, accounting entity, money measurement, duality, cost valuation, accrual accounting, and stable monetary unit. To be familiar with the four major types of statements these accounting principles should be understood. The phrase “generally accepted accounting principles” is usually used to refer to the rules and requirements that form the preparation of the four financial statements. These financial statements are used...
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...Accounting Principles Relating to Healthcare Christine Watts HCS/571 May 26, 2014 David Catoe Accounting Principles Accounting is a numbers related profession. Staying solvent financially are what business leaders and owners strive for to stay competitive and to keep their doors open. Healthcare institutions are in the business to care for people, but at the same time they must make money in order to achieve this goal. Whether they are for profit or not for profit, accountants and financial managers make decisions every day to keep budgets in line, keep people working, and patients happy. No matter what position one holds in a company, it is important to have a basic understanding of general accounting principles and how they apply to healthcare. The first principle is the accounting entity. The entity is an organization in which the financial information is recorded and reported (Cleverly, Song, & Cleverly, 2011). This must be clearly defined so that the financial reports give a clear picture of the finances for that specific organization. The accounting entity is different from the legal entity so if the organization is a subsidiary or a sole proprietorship, the financial picture must be for the defined organization so that the information is useful and not misleading. Health care organizations that have ownership of many different entities, must keep them separate so that each organization has a clear defined picture of its own financial information...
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...Tool 3. Demand Analysis Economic Analysis of Tobacco Demand Nick Wilkins, Ayda Yurekli, and Teh-wei Hu DRAFT USERS : PLEASE PROVIDE FEEDBACK AND COMMENTS TO Joy de Beyer ( jdebeyer@worldbank.org) and Ayda Yurekli (ayurekli@worldbank.org) World Bank, MSN G7-702 1818 H Street NW Washington DC, 20433 USA Fax : (202) 522-3234 Contents I. Introduction 1 Purpose of this Tool 1 Who Should Use this Tool 2 How to Use this Tool 2 II. Define the Objectives of the Analysis 4 The Reason for Analysis of Demand 4 The Economic Case for Demand Intervention 4 Analysis of Demand for the Policy Maker 5 Design an Analysis of Demand Study 6 Components of a Study 6 The Nature of Econometric Analysis 7 Resources Required 7 Summary 8 References and Additional Information 8 III. Conduct Background Research 9 IV. Build the Data Set 11 Choose the Variables 11 Data Availability 11 Data Types 12 Prepare the Data 13 Data Cleaning and Preliminary Examination 14 Preparing the Data Variables 14 References and Additional...
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