Abstract: This paper explores the relationship between the constitutional entrenchment of central bank independence and inflation performance. Empirical studies for developing countries have not found a relationship between central bank independence, proxied by the de jure independence established in the central bank law, and inflation. We argue that the Constitution is likely to be better enfo...

A multi–agent, moral–hazard model is used to analyze how to regulate compensation of bank employees below a CEO in order to limit bank risk. Unlike in the single–agent model, pay for performance does not necessarily create risk. If employee returns are uncorrelated, pay is irrelevant for risk. If returns are correlated, a low wage can indicate risk. If correlation is endogenous, relative–perfor...

We examine the roles of idiosyncratic and systemic funding liquidity risks in bank failures. We estimate a discrete-time hazard model of bank failure using data of U.S. commercial banks between 1985 and 2004, and examine its out-of-sample forecasting performance between 2005 and 2011. The out-of-sample performance comparison shows this model outperforms typical bank failure prediction models. W...

The paper analyzes how bank characteristics and the overall financial environment affect the performance of Islamic banks. Utilizing bank level data, the study examines the performance indicators of Islamic banks’ worldwide during 1994-2001. A variety of internal and external banking characteristics were used to predict profitability and efficiency. In general, our analysis of determinants of I...

Microfinance has entered the phase of rapid development and it has become one of the most important businesses in commercial banks. This study set up an evaluation system based on the balanced scorecard and used the fuzzy-rough set approach to evaluate the microfinance performance. Firstly, this study designed the performance evaluation system from five dimensions according to the principals of...

Both speech and music can be organized as hierarchical, nested groupings of units. In speech, for instance, phonemes can group to form syllables, which group to form words, which group to form sentences, and so on. In music, notes can group to form phrases, which group to form chord progressions, which group to form verses, and so on. We present a new method for extracting events (amplitude pea...

For pension schemes, mutual funds, banks and other financial intermediaries, large portfolio decisions are increasingly delegated to fund managers. Recently, there has been growing concern that these managers seem to adopt extremely similar investment strategies. One possible explanation for this phenomenon may be found in reward schemes based on relative performance. We show how relative perfo...