European Journal of Economics, Finance and Administrative Sciences

Issue 103
February, 2020

Accounting, Finance, Financial Reporting, Management Administration and References
Maria Silvia Avi

The publication system, national and international, of articles always requires that the work be completed by a set references of international authors. This element should be a kind of proof of the scientific of the thought contained in the work. That is not the case. If the author is characterized by a "stratification of knowledge" of almost 40 years, which becomes one with his mind and his being, even an article without references but with the illustration of an original thought can be considered a scientific work. On the contrary, it is possible that the latter is of greater scientific value than an article filled with references to works by other authors. "The proof of the stratification of knowledge" can completely cancel the need to make a reference to another work of any statement contained in the article that you want to publish.

A Stochastic Economic Model Using Modified Nonhomogeneous Poisson Process with a Birth and Death Diffusion Intensity Rate and External Jump Processes
Basel M. Al-Eideh

One of the important functions of the economists is to provide information on the future trend of economic developments, which is important to plan for human activities. Today, economists are interested in describing phenomena in theoretical models involving economic structure by considering the stochastic analogs of classical differences and differential equations. In this paper a description of a stochastic economic model using a modified nonhomogeneous Poisson process is considered. More specifically, the nonhomogeneous Poisson process is derived using an intensity rate follow a birth and death diffusion process with random external jump process. The mean and the variance approximation as well as the predicted and the simulated sample path of such a stochastic economic process are also obtained. Numerical examples for the case of no jumps as well as the case of the occurrence of jump process that follow a uniform and exponential distributions are considered.
Keywords: Stochastic Economic Model, Birth-Death Diffusion Process, External Jump Process, Intensity Rate Process, Nonhomogeneous Poisson Process.

Voluntary Disclosure of Strategy and R&D in Family and Non-Family Firms an Empirical Comparison among Quoted Italian Companies
Francesco Napoli

This paper is aimed at making a contribution to the topic of voluntary disclosure and the different forms of behaviour that family and non-family firms adopt with regard it. Family firms have often been studied from a perspective that emphasises how owner opportunism which might lead to less transparency in information shared with other stakeholders. Notwithstanding this, the empirical studies so far produced have been mixed and conflicting. We intend to fill a gap in these studies as they overlook the contributions of family firm literature, according to which family firms are good stewards of resources. From this different perspective, we note that proprietary costs relating to the revealing of information may weigh against information dissemination to the extent that, in order to avoid competitive disadvantage, owner managers of a family firm might choose not to reveal further information, so better protecting investors than managers of no-family firms do. Rather than refer to firms’ total voluntary disclosure, it is more interesting to look at the differences in behaviour that the two types of firms adopt in relation to the various components of voluntary disclosure. Our paper performs an empirical analysis by using two distinct indicators of voluntary disclosure, one focusing upon R&D and another upon strategy, and, in this way, reveals that when quoted Italian firms (family and non-family) increase the intensity of their R&D; activity, they also increase their voluntary disclosure of information about both R&D; and strategy, but a different attitude towards the two components of voluntary disclosure is exhibited by the behaviour of the two types of firm. In particular, family firms are more inclined to increasing the component of information on strategy and much less that on R&D; Finally, our empirical results support hypotheses in the literature on family firms that suggest that the importance and utility of providing precise information on firm strategies are much greater in family governance than in managerial governance. This is because family frms carry out investments which are difficult for other organisations to understand The difficulty in understanding the strategic significance of family firm owner managers’ strategic decisions lies in the fact that such decisions often refer to policies that help the business survive until the new generation is ready to take over and leave the successors with a healthy enterprise to run.
Keywords: Family firms; voluntary disclosures; R&D; strategy
JEL classification: M140; M490

Debate on Purchasing Power Parity: Comparison of Developed and Developing Countries
Siavash Rashidi-Sabet

This paper provides findings of the research that has tested long-run Purchasing Power Parity (PPP) theory for different countries which are categorized as both developed and developing countries against the US Dollar. Cointegration procedure through Johansen approach is selected to test the PPP theory for various countries to distinguish structural and transitory deviation of exchange rate from PPP. The aim of this paper is to compare the empirical results of PPP theory for the developed and developing countries of Group of Twenty (G-20). The results are opposite to the findings of several well-known studies such as Dornbusch (1982), McNown & Wallace (1989), and Mahdavi and Zhou (1994) as they argue PPP holds true in relation to developing countries than developed countries. The result of this study demonstrates that exchange rate returns towards PPP in developed countries than in developing countries.
Keywords: Purchasing Power Parity; Developed and Developing Countries
JEL classification: F31, F4