The Department of Finance said the BOC was able to meet its target to collect P5.9 billion in tariffs from rice shipments in the first four months since the passage of the rice tariffication law, running counter to assertions from the Federation of Free Farmers that the government might have lost billions in forgone revenues due to undervaluations.
If undervaluation is proven, Maronilla said the traders would incur a minimum penalty of 125 percent to a maximum of 600 percent of the amount they failed to pay for the rice shipments.
''Several neighboring Asian countries of considerable economic significance -- Hong Kong, Malaysia, Singapore and Taiwan -- maintain currency undervaluations
of roughly the same magnitude in order to avoid losing competitive position to China.
The final column restricts the range to undervaluations or overvaluations that are smaller than 50 percent.
The coefficients on the exchange rate regime dummies are also quite interesting The central finding here is that regimes in which the exchange rate is actively managed--crawling pegs or managed floats--produce larger undervaluations than do fixed-rate regimes, with a difference of around 7 percent.
Gluzmann, Levy-Yeyati, and Sturzenegger (2007), by contrast, find little role for the tradables channel and argue that real undervaluations promote growth through redistributions of income that raise domestic saving (and ultimately investment).
ABSTRACT I show that undervaluation of the currency (a high real exchange rate) stimulates economic growth.
The acquired newsletter, taglined "the newsletter for undiscovered stocks," is published monthly and focuses on identifying special situations, including corporate undervaluations
, takeover candidates and companies with low P/E ratios.
This adjustment gives more weight and accounts for large undervaluations of old inventory (first term) and smaller weight to recent increments (second term).
In this tradition, Harris and Ravenscraft's (1991) linkage of the undervaluation, management inefficiency, and market imperfections hypotheses provides the theoretical foundation for our empirical testing.
Thus, in order to minimize the acquisition costs, foreign firms should follow the same pattern of analysis as their domestic counterparts and search for undervalued and/or mismanaged companies as targets for their acquisitions.(1) The results of our undervaluation hypotheses testing, within the Tobin's q framework utilized by Servaes (1991) for the study of domestic mergers, support this viewpoint.(2) To our knowledge, there are no other studies on cross-border merger and acquisitions that validate the theoretical undervaluation hypothesis within an international setting.
6662 also includes penalties on valuation misstatements, pension liability overstatements, and gift or estate tax undervaluations
. However, these provisions are beyond the scope of this article.