Journal of Advances in Economics and Finance

6

Authors: Elham Darbandi, Sayed Saghaian

In a competitive market, a rise in output prices at the wholesale level is expected to be transferred to the consumers via retailers. We have an asymmetric price transmission when an increase in the producer price transfers faster and stronger to the consumers comparing to a reduction in the producer price. The research question here is how product heterogeneity and differentiation can affect the price transmission in the carrots markets. Carrots consumption in the U.S. has been increasing significantly over the past few decades. We investigate the price linkages of carrots at terminal and retail levels for two different qualities of this product, organic and conventional. According to the VECM model results, the speed of price adjustment in the conventional carrot market is 0.354 in absolute value, while for the organic carrot market it is 0.026. This result is an indication of asymmetric price transmission with respect to speed. It shows that the price adjustment in the organic carrot market is relatively slow, pointing to inefficiency in this market. These results have important policy implications, especially in case of price shocks, there could be differential welfare consequences for both consumers and producers.

7

Authors: Li Hui

The global financial crisis and the outbreak of the banking crisis in the Eurozone have had a great impact on the macro economy. The influence of macroeconomic uncertainty on monetary policy has become the focus of scholars' research. Based on data from 2011 to 2016, public information indices and macroeconomic variables were used to construct the SVAR model. The effects of quantitative monetary policy and price monetary policy on the achievement of output targets and price targets under uncertainty conditions are analyzed. The impact of the acquisition of public information on the effectiveness of monetary policy was explored, which indirectly confirmed the effect of uncertainty on policy under the influence of information.

9

Authors: Chuntao Wu, Mai Xianmin, Tingting Yuan, JingTing Yuan

This paper studies the effects of tourism development on innovation and diversification of ethnic handicrafts in a newly development natural disaster tourism site – Beichuan Qiang Tourism Area in Sichuan, China. Beichuan was one of the worst-affected regions during the Great Sichuan Earthquake of May 12, 2008. Fieldworks including site visit, participation and observation, semi-structure interview with the local elites and tourists’ questionnaire survey are methods used by this paper. The results indicate that tourism development has leaded to a diversity of the embroidery handicrafts and is re-shaping the embroidery industries now. It is argued that local Qiang embroidery enterprises should decrease the cost and tailor the products to increase the sales. The higher quality and authenticity of embroiders’ product should be emphasized so that tourists can see the reason for the higher price of the local hand-made products.

8

Authors: Xinyue Yu

In order to improve the competitiveness of China's international trade and alleviate the possible trade war with the United States, related data for 2000-2015 years are collected and collocated from the level of trade product structure of China and the United States. Based on the objective reality, and supported by the relevant theories of international trade, the current situation of trade structure of China and the United States is analyzed and summarized. Through the further accurate classification of trade goods, the changes and trends of three types of trade commodities, such as resource intensive, labor intensive and capital intensive types, are studied from various angles of change range of trade commodity structure, trade union degree, commodity coupling degree, and commodity - market coupling degree. This is not only of practical significance to the future trade relations between China and the United States, but also provides some new thinking for the future study of trade between the two countries.

17

Authors: Thanh Thi Nguyen, Dr. Ngoc Thi Bui

In 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) provided a fairly comprehensive definition of internal control: “Internal control is a process affected by entity’s board of directors, management, and other personnel, it is designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance”. This definition indicates that internal control is indispensable to provide a reasonable guarantee for an organization's ability to achieve its goals and sustainable development. Currently, the internal control system in Vietnamese paper manufacturers has not met essential needs of the society. There are more than 500 paper manufacturing enterprises in the country, in which more than 90% are small enterprises, and in which internal controls are not effectively implemented. This paper examines reality of internal control in paper manufacturing enterprises in Northern Vietnam. Based on that, evaluation and measures are provided in order to improve internal control. Research results showed that there are five factors which directly affect internal control: control environment, risk assessment, control activities, information and communication, monitoring activities.

6

Authors: Xingkai Yu

With refinement of social division of labor, business model undergoes profound changes. Compared with the traditional heavy-asset business model, a new asset-light business model is now being widespread through market and entrepreneurs. To put it simply, asset-light companies always regard knowledge, technology and brand as their core competence, which focus on R&D and marketing these two high value-added sectors. This paper uses the data of listed companies in China during 2001-2016 as the research sample, and empirically examines the relationship between asset- light strategy and companies’ profitability. Empirical results show that asset-light strategy has no significant effect on companies’ profitability. This may be related to Chinese unique economic environment.

6

Authors: Ali Kartal

The purpose of this paper is to show the way of balance scorecard application to develop business failure prediction models. For this reason, first, 43 companies were selected as random sampling among small and medium size carpenters and furniture manufacturer companies in Eskisehir, Turkey. Then collected financial and non-financial data were used in logistic regression that provides us a mathematical equation that has flexibility and easier interpret opportunity.