Template-Type: ReDIF-Article 1.0 Author-Name: Jonna P. Estudillo Author-Email: jonna@grips.ac.jp Author-Workplace-Name: National Graduate Institute for Policy Studies, Minato-ku, Tokyo, Japan Author-Name: Mahabub Hossain Author-Workplace-Name: IRRI Social Sciences Division Title: Land distribution and income inequality in rice-growing villages in the Philippines, 1993, 1997 Abstract: This paper examines the relationship between land distribution and income inequality in three rice-growing villages in the Philippines. One of our findings is that access to land has ceased to be the most important determinant of household income position, as farming and landless households have increasingly derived their incomes from non-farm economic activities. The association between land distribution and income distribution has weakened. Non-farm income has become an equalizing factor, which means that the development of the non-farm sector and the improved access of households to such markets have played a more decisive influence on decreasing income inequality. Classification-JEL: O10, O12, O15, O33 Keywords: Land distribution, income distribution, modern rice technology Journal: Philippine Review of Economics Pages: 1-30 Volume: 40 Issue: 2 Year: 2003 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/19/571 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:2:p:1-30 Template-Type: ReDIF-Article 1.0 Author-Name: Hazel Jean L. Malapit Author-Name: Tina S. Clemente Author-Workplace-Name: University of the Philippines School of Economics Author-Name: Cristina Yunzal Author-Workplace-Name: Baruch College and Graduate Center, City University of New York, USA Title: Does violent conflict make chronic poverty more likely? the Mindanao experience Abstract: This paper investigates whether provinces with violent conflict are more likely to experience higher rates of chronic poverty. Following the findings that education and health outcomes are key determinants of chronic poverty, the Human Development Index (HDI) and the Quality of Life Index (QLI) are used as proxy variables for chronic poverty. T-tests of means for HDI and QLI are performed, comparing provinces with conflict and provinces without conflict. Results show that provinces experiencing conflict have significantly lower HDI outcomes relative to provinces that did not experience conflict. Pooled results for the QLI also show a statistically significant difference between the means of provinces with and without conflict. Classification-JEL: I31, I38 Keywords: Chronic poverty, violent conflict, civil war, Mindanao Journal: Philippine Review of Economics Pages: 31-58 Volume: 40 Issue: 2 Year: 2003 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/20/570 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:2:p:31-58 Template-Type: ReDIF-Article 1.0 Author-Name: Stella Luz A. Quimbo Author-Email: stella_quimbo@yahoo.com Author-Workplace-Name: University of the Philippines School of Economics Title: Explaining math and science achievement of public school children in the Philippines Abstract: This paper presents estimates of an education production function which includes measures of the home learning environment and school inputs recorded at the student level. These are important variables but are often overlooked as a result of data limitations. Results suggest that minimizing teacher absenteeism and effectively providing basic learning materials in schools can improve the math and science achievement of current as well as future generations of students. The home learning environment, including parental education, was found to have a significant effect on student performance. Classification-JEL: I21, I28 Keywords: Education production function, Philippines Journal: Philippine Review of Economics Pages: 59-72 Volume: 40 Issue: 2 Year: 2003 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/21/566 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:2:p:59-72 Template-Type: ReDIF-Article 1.0 Author-Name: Dennis S. Mapa Author-Email: csmapa@upd.edu.ph Author-Workplace-Name: University of the Philippines School of Statistics, University of the Philippines Diliman, Quezon City Title: A range-based GARCH model for forecasting financial volatility Abstract: A new variant of the ARCH class of models for forecasting the conditional variance, to be called the Generalized AutoRegressive Conditional Heteroskedasticity Parkinson Range (GARCH-PARK-R) model, is proposed. The GARCH-PARK-R model, utilizing the extreme values, is a good alternative to the “realized volatility” model which requires a large amount of intra-daily data that remain relatively costly and are not readily available. The estimates of the GARCH-PARK-R model are derived using the Quasi-Maximum Likelihood Estimation (QMLE). The results suggest that the GARCHPARK- R model is a good middle ground between intra-daily models, such as the realized volatility, and inter-daily models, such as the ARCH class. The forecasting performance of the models is evaluated using the daily Philippine Peso-U.S. Dollar exchange rate from January 1997 to December 2003. Classification-JEL: C53 Keywords: Volatility, GARCH-PARK-R, QMLE Journal: Philippine Review of Economics Pages: 73-90 Volume: 40 Issue: 2 Year: 2003 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/22/567 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:2:p:73-90 Template-Type: ReDIF-Article 1.0 Author-Name: Mohd Zaini Abd Karim Author-Email: zaini500@uum.edu.my Author-Workplace-Name: Universiti Utara Malaysia Title: Ownership and efficiency in Malaysian banking Abstract: Changes in the ownership structure have been an important feature of the evolution of the Malaysian banking sector. In 1986, the Banking Act of 1973 was amended to limit equity ownership by individual companies in a bank to 20 percent, and by a family-owned company or an individual person to 10 percent. This paper analyzes whether ownership structure has any effect on bank efficiency in Malaysia. Cost efficiency is estimated using the Stochastic cost frontier approach. Tobit regression analysis is then employed to determine the effect of ownership variables on bank efficiency. The results indicate that first, state-owned banks and local banks are less efficient than privately owned banks and foreign banks, respectively. Second, we find a positive correlation between ownership concentration and firm’s performance suggesting that large investors, to some extent, have the incentive as well as the power to monitor and control the behavior of management, and thus assume a significant role in corporate governance. Classification-JEL: G21 Keywords: Bank efficiency, stochastic cost frontier, Tobit regression Journal: Philippine Review of Economics Pages: 91-101 Volume: 40 Issue: 2 Year: 2003 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/23/568 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:2:p:91-101 Template-Type: ReDIF-Article 1.0 Author-Name: Rodolfo Q. Aquino Author-Workplace-Name: College of Business Administration, University of the Philippines Diliman, Quezon City Title: Does corporate diversification create value? Abstract: This study addresses the issue of whether the form of corporate diversification practiced in the Philippines, particularly that based on diversified family-based conglomerates and business groups, can create or destroy value. The study produces somewhat mixed results. Corporate diversification through the holding company route, per se, does not raise or reduce firm value as perceived by market investors. However, diversification into two unrelated businesses either via subsidiaries or internal divisions appears to add to firm value but any further diversification only subtracts value. Diversification through the route of interrelated business groups also appears to decrease value perceptions. These findings are robust with respect to the addition of variables found to have explanatory power on firm value such as consistency in dividend payout, asset growth, and industry grouping. In addition, value appears to be independent of capital structure and firm size. Classification-JEL: G34, G31 Keywords: Corporate diversification; Tobin’s q Journal: Philippine Review of Economics Pages: 103-115 Volume: 40 Issue: 2 Year: 2003 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/24/569 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:2:p:103-115 Template-Type: ReDIF-Article 1.0 Author-Name: Clifford S. Ang Author-Email: cliffang@alum.wustl.edu Author-Workplace-Name: Olin School of Business, Washington University in St. Louis, USA Author-Name: Daniel Vincent H. Borja Author-Email: daniel_vincent.borja@upd.edu.ph Author-Workplace-Name: College of Business Administration, University of the Philippines Diliman, Quezon City Title: Executive stock options, stock price volatility, and agency costs in the Philippine setting Abstract: Firms compensate management with executive stock option plans to mitigate the agency problem arising from conflicts of interest between shareholders and managers. However, due to the nature of stock options, the value to the option holder increases when the volatility of the underlying stock rises. Unfortunately, the decisions that affect the expected future cash flows of the firm still remain under the control of executives. Using a pooled least squares regression on a sample of 30 PHISIX firms from the period 1998 to 2001, we find that the presence of executive stock option plans significantly affects the volatility of the firm’s stock return. Classification-JEL: M52 Keywords: Executive stock options; managerial compensation Journal: Philippine Review of Economics Pages: 117-124 Volume: 40 Issue: 2 Year: 2003 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/25/572 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:40:y:2003:i:2:p:117-124